subject: How to start a business [print this page] How to start a business How to start a business
Owning a business is a goal for a lot of us. Doing business of some kind is way of life for a greater number of people of our planet. The alluring aspect of a business is that there is no limit to what you can earn from a business. Working for someone else usually caps your wage at a fixed amount. You can only earn some more after increments over a period of time. Your income is not directly depended on the company's profits although it plays an important role in determining your income. However, when you own your corporation, you keep all the profits of the company. This is a two edged sword though. On one end, you can keep all the profits that your business makes which can make your income significantly higher. On the other hand, you will also have to bear the burden of any losses that may come. It is especially difficult for a new enterprise to succeed as most companies do not make profits initially and need to fine tune their business to extract profits from the business.
What you should do before forming a company
A professional working person should always look to work smart and not hard. He needs to have good experience in the specific business as well as business management and some marketing knowledge. A professional working person should first proceed to have experience in the specific business field. Often, people just start off a business without understanding the nuances of the business. It is highly desirable that you spend a few months time atleast involved in a similar business of a different company which will help you understand the tricks of the trade.
Once you are working another similar business company, keenly study their business model. Find out where the raw materials are coming from, how much costs the company is incurring for the construction of final goods, how much is the staff paid, what expertise are the people that are involved with the company, how successful is the business and how much profits it is making. Based on this business model, construct your own business model. Take the appropriate points from their business model. Change the drawbacks of their business model with some innovative thinking on your part. Try not to replicate the rival company but improve on their business mode.
Now, start with the setting up of your company. Choose a brandable name. Select a good location as this can play an important role in the success of your business. Minimize the production costs as much as possible while still keeping the quality of your products standard.
After you have set up your business, getting consumers is the tricky bit. A new business often finds it difficult to attract customers. A new corporation can become immediately successful if it is providing a service or selling goods which no one else is and there exists a great demand for it. However, most of the companies do not fall in this category and most businesses fail to attract customers initially.
This is where marketing steps in. If you have a marketing credentials, it can be immensely helpful else make sure you hire a marketing manager for your business. Word-of-mouth is the most powerful marketing tool. Hence, make sure you provide a good service or sell quality products which will make your customers vouch for you.
