subject: Some pointers if you need to set up your own company or business [print this page] For students this perhaps sounds especially familiar, more if you are one who has just ended their studies and is now thinking about starting a new business. You may have all the theory from the books but you don't have the experience necessary to navigate the world of work.
So if you are a recent graduate then here is a little advice to help you with your first steps in a new position and even to assess whether your idea for a business is in fact worth spending time and money on. This is obviously something you should definitely know before you start trading.
Firstly, take a little advice from someone who is independent and impartial. Just because you want to invest in the business doesn't make the business a good investment. Don't rely on friends or parents; instead ask a business advisor, someone with experience in the field. These are the type of people to talk to and listen to as they can look at your business proposal and tell you whether you should move forward with it. Another option is trying to get a business loan from your bank manager, if they approve the loan then you will immediately know that an independent party likes your business and thinks it has potential.
Then you should think about how many customers there are out there or how many products, etc, you are likely to sell. You should have an accurate idea of how much of an income your company is likely to have and even how in demand you or your staff will be. This will let you...
...calculate exactly how much profit your business idea is likely to generate. Can you make $60,000 per annum or just $15,000? Or if you're in the UK, 9,622. From this figure you will then be able to work out at what point you will break even, recover your investment and even how long until you make a profit. You can't afford to spend your business income before it has developed but instead you need to have a clear idea of when to spend money and when it will benefit the company.
Next, what about your company overheads? If you will be taking Singapore office space then how much is the lease? And how much square footage is needed? As well, think about how many employees you will need in order for your business to function properly and exactly how much their wages will be for the year. It is also a good idea to determine whether your business will need employees on reception and cleaning staff. All of these types of costs soon mount up.
Once you have considered this think about over outgoings, such as energy bills, building insurance, the maintenance, repair and updating IT equipment. And you also need to know that when you are creating a business projection you should over-estimate outgoings and under-estimate any income, by doing this you will have a picture of how well your company is likely to succeed within its first year. If you make forecasts in this way you can make sure that any profits you expect to make have not been created because you have been too vague with your forecasts.
Before spending a penny you should follow the above advice only then should you get started with your new firm and take a tour of potential offices.
Some pointers if you need to set up your own company or business
