what to do if you want to start your own business

Introduction

My report is about your own business. It called “what to do if you want to start a business?”. I will talk about setting up your own business, how to do it, what you need to think about if you want a productively business and other very important things. It is very risky to start your own business especially if you do not have enough information. There are the main steps which you need to consider.

First step – business plan

It iis not easy to start your own business. You need to do and think about a lot of things. First of all you should think about your product, what it looks like. Consider your idea at least two times and think about every version before you finally make the decision. Firstly, make sure this business makes economic sense. Secondly, think if your product will come onto the market and if the costumers really need it. Next step is the main –– business plan creation. Now it is easier to write it as you have a clear picture of what the finished product should look like. Talking about your business plan, first you have to think about your business plan format, wwhat your vision statement would be, about business description, the people who will use your product, you need to make market strategies, what your business profile looks and finally think about economic assessment.

Also, if you want to create a good business plan and start your owned business is necessary to understand the marketing. Furthermore, it is normal to hire some people to help you. For example, you can hire a consultant of your prospective business range, that he/she will say your business advantages or disadvantages, make rival firms analysis; organizer – to organize your opening day; designer – to design your product appearance or your work place interior, also, do not forget to order internet web site; manager – tto make contracts with commerce department or with shops where your product will be in market, also to get sponsorship. Of course, you can consult with financial service.

To sum up there are three primary parts of a business plan:

1. The business concept, where you talk about the industry, your business structure, your particular product or service, and how you plan to make your business a success. 2. The marketplace section, where you describe and analyze potential customers: who and wwhere they are, what makes them buy and so on. You should also describe the competition and how you will position yourself to beat it.

3. The financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analyses. This part may require help from your accountant and a good spreadsheet software program. It is a good idea to buy business plan software to help you prepare your plan. The software will prompt you, making it easy to „fill in the blanks.“

Next step – financing

Talking about financing, it is difficult to get money for a business, specially, if you need a lot of money. If you have your own things, you can mortgage them. Jewelry, pool tables, boats, second properties – the list goes on. Largest assets are houses and cars. Immovable properties are mortgaged the most frequently. You can do the same with cars. Your friends or family is the other way to get financing. Identify those people who know your character, abilities and trust that your deeds will match your words. Family and friends with whom you have good relationship, and people, with whom you have worked, especially your supervisors or eemployers, may help you with getting money. Of course, your friends and family do not lend a lot of money, probably it will be a niggardly sum. However, investments together with friends and family can turn out bad when things do not go as planned. The situation can become even worse with professional investors because friends and family react to bad news as much with emotion as with logic. It is needed to get an agreement in writing in order to protect every partner’s rights. This will eliminate all conversations that start with „You never said that..“ Emphasize debt (loans) rather than equity (ownership). And it is better to pay debts quarterly rather than monthly. In this way, when things are teetering, your lender would not immediately know it.

Other way to get money is to borrow from a bank. You can take a credit, but a bank gives it with some conditions. First of all it is very important what kind of sum you want to take as a credit. If the sums of money are huge, then you have to mortgage something what is valuable such as your house, country – house and so on. Also, it is bbetter if someone to stand bond from you. Another condition is the percent. You have to pay back with percent. If you take credit for a longest time, the percent will be also bigger, but your monthly deposit will be smaller. So consider all advantages and disadvantages you will experience depending on what sum of money you take and how long it will take to repay the credit. However, it is better to take it for a shorter term. In this way you would quicker repay the credit and the sum of percent would not be so big.

Summary

If you want to start your own business, it is needed to do two steps: to create a business plan and get financing. At first sight it seems to be very simply, but it is contrariwise. The hardest thing is to creative a good business plan. It includes your business product, your work place, market strategies, how many people will work for you, what kind of people will be your customers, analyze other similar firms and make sure that your product will be making profit. Other step is to get financing. It is also difficult to do, because a huge sum of money

is needed to start your own business and probably the best way to get it is to take a credit from a bank.

Literature

http://www.entrepreneur.com/businessplan/index.html

http://www.entrepreneur.com/startingabusiness/gettingfinancing/index115674.html

http://www.entrepreneur.com/money/moneymanagement/managingcashflow/article79908.html

http://www.startups.co.uk/