Table of Contents Hide
- #1. Research.
- #2. Identify your Competitors.
- #3. Estimate your Target Market.
- #4. Evaluate your Risk Analysis.
- #5. Evaluate the Financial Input.
- #6. Calculate the Profitability of the Business.
- Starting a Business FAQ’s
- What is the easiest business to start with no money?
- Is it hard to be a business owner?
- Is owning a small business worth it?
- What do business owners do all day?
For the purpose of this article, I shall guide you on what you need to do before opening that shop or investing so much time and money in that business.
Every single business from my definition is a local business. It is a business that hopes to bring solution or service to a community, state or nation.
You must survey the environment, identify what is scarce, what is lacking, what people needs more, and what many people will identify with and patronize over a considerable period of time.
You don’t just wake up and start a business just because Mr A is doing it or because you heard on radio or television or on the internet that the business is good.
Proper research will open your eyes to see beyond your ambition and connect with the need of the people around the location you hope to establish your business.
#2. Identify your Competitors.
#3. Estimate your Target Market.
#4. Evaluate your Risk Analysis.
This is what differentiates smart business owners from other business owners.
We have a low risk businesses, high risk businesses, and super high risk businesses (my choice of category). Being able to categorize the risk level will definitely guide you in planning your business.
#5. Evaluate the Financial Input.
Business doesn’t run on water but on money. This is why you need to calculate the man-hour, and every single financial involvement the business will need to be profitable. In evaluating the financial input, you need to consider how long it may take you to recover your capital, the percentage increase in your anticipated profit, and the effect of inflation on your earning and how that affects your business.
Because money has a time value, you must consider the time value of money at every phase of your business.
#6. Calculate the Profitability of the Business.
Every business is good, but not every business is profitable. Painfully, many entrepreneurs venture into business without calculating the profitability of the business.
How long will it take for you to recover your capital and then make profit? At what rate will you make money from the business on a daily, weekly, monthly, quarterly and yearly basis? What is the percentage profit with respect to the time, manpower requirement, and overall cost of establishing such a business?
You may call this the most important aspect in any business planning, because no matter how exciting a business might appear, if it is not profitable, then it is a waste of resources.
Starting a Business FAQ’s
What is the easiest business to start with no money?
Home Based Business Ideas You Can Start With No Money
- Freelance Writer.
- Ebook Author.
- Affiliate Marketer.
- Social Media Influencer.
- Social Media Manager.
- YouTube Personality.
Is it hard to be a business owner?
Most small business owners work harder than they did when they worked in a corporate setting. People believe that owning a small business is glamorous because you get to make big decisions, make great money, and live a carefree life.
Is owning a small business worth it?
Starting your own business has various financial advantages over working for someone else. First, you’re establishing a business with the possibility for expansion – and your pocketbook expands in tandem with your business. Second, your company is a great asset in and of itself. Your company’s value rises as it expands.
What do business owners do all day?
Small business owners are in charge of sales revenue as well as sales marketing. Many owners, especially in the early years, go on sales calls and assist in the closing of deals. Owners may participate in marketing activities such as creating campaigns, placing advertisements, email marketing, and social media marketing.
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