basic business plan part II

PERSONAL RESOURCES & FINANCES
Before seriously getting on with the idea of starting your own business you must consider your MOTIVES for starting of your own business.
You also need to consider whether you possess the PERSONAL(knowledge) , financial , professional skills qualifying you for a business start-up (e.g; there is an eligiblity criteria for everything that you want to do in life)
this is to make your future SURE & CERTAIN (world is thriving on uncertainity thats my view it differs from visual to visual)

WHY DO YOU WANT TO START-UP YOUR OWN BUSINESS
1.The inner urge to pit oneself against one's own abilities as an entrepreneur
2.To wish to make a lot of money to a between - jobs- situation with no prospect of decent employment
3. Family can be supportive or against... but the punch line is you should always do what you are interested in...

FAMILY NETWORK
The closest one to assist one in starting a business is the family

Hopefully they share the same dream of you managing a business as you do.

now coming back to FAMILY :
unfortunately , same family members can be liability or can be against your new business because of their ignorance or limited knowledge and exposure...
If they feel they have the (business right) to make business decisions for you, your (business life) could then get difficult.
may be you have to move...

BUSINESS DECISIONS
If made in a family context seldom go together with business decision...[what holds good for X will not necessarily hold good for Y]...


FAMILY DECISIONS are often based on feelings and irrational..

EVALUATION:
Where your business is at this time
what can you decide
what will the family decide

EXPERIENCE
It almost goes without saying that you should not start business within a trade or area of experience that you are unfamiliar with[business qualities are rarely inborn in fact never...a mother gives birth to a child not to a business man or an entrepreneur ]
and EXPERIENCE is the only word you get after you start..
If you have to start gaining basic knowledge about your service or product along with getting the grip of running the business it will soon be an impossible task [ it is advisable to gain the basic knowledge first]

Some line of trade are fairly easy to learn
starting a cleaning company or selling pizzas,kababs, etc can be done with little knowledge about the trade.

VERY IMPORTANT
What do you know and what are you best at?
does that fit with your new business?
This is the whole idea of a start up and you are almost through if you have answers to the above 2 questions.

KNOWLEDGE- DATABASE


EDUCATION
It is a gr88 advantage ..
If u can add SEVERAL YEARS OF PRACTICAL EXPERIENCE within the field it will take the competence to an even higher level...
LIFE EXPERIENCE and SPARE TIME ACTIVITIES are also very important parameters to review when starting business...

ECONOMY
How many of us those who want to start a new business have a lot of money to invest in the company?
very few
but then again: VERY FEW COMPANIES REQUIRE SUBSTANCIAL FINANCIAL RESOURCE TO GET STARTED.......
Usually a consultancy , software company , service industry , does not require a huge capital besides its knowledge – pool ( collective) . such companies usually need only a phone , a computer , an internet connection and means of transport ..[now what and how you want to start depends on you].

It is opposite for retailers ( especially in huge malls) and for development intensive companies such as biotech , computer game development and manufacturing companies…

If you are to start a small retail showroom in a centrally located place the capital investment is 100 times more than the above mentioned proposals.


HOW MUCH MONEY YOU ARE ABLE TO RAISE?

INTERNAL TRADE NETWORK: Most important aspects

Family: their contacts: and the list goes on
Friends: their friends and relatives : in turn their friends and relatives
Associates:…same as above for them
Contacts: same as above for them
Relatives: same as above for them
{ never ending process}

Our product or service gets almost half global by this format [free advertizing or introduction of a referral system will be a bonus ]

EXPERIENCE shows : that many customer relations have been established because a friend of a businessman has told another friend about the business…

Some places especially b and c cities and towns don’t have appetite and budget for publicity . this is the most important tool if used properly it can cut down your costs by millions of dollars in a long run…
Now just evaluate the concept of MLM and networking companies…
If you go through the recent start-ups all started with word of mouth publicity..
Having right connection with the trade is of great importance
Networks are always important within other aspects of business operation…
[ helps in diversifying and adding on services & products to your company]

.

PRODUCT / SERVICE KNOWLEDGE:
IT is important to posses a profound knowledge of the service or product you want to market.
Uncomplicated business such as selling fast food or cleaning etc can be handled on the basis of general skills and knowledge,,,
Starting a translation agency without a linguistic knowledge would be unwise…if no practical knowledge is gained…
Starting an advertizing is same..
More specialized the service , more important to possess gr88 knowledge of the topic..
Do you know enough about your product/ service?
WORK TASKS:
Owner must handle numerous work tasks..if there is only one person in the company he/ she must be Managing director/ Sales/ financial/ Marketing manager/ Office clerk and bell boy..

However , often there will be key areas which the owner is practically keen on
When starting a new business you might not be able to work with what you like the best.
Other task might be more needed . but you can set goals in the future bring you to work with your desired work task..
In which areas are you particularly keen working on?
Can they be fulfilled in your new business ?
WEAK SIDES:
You probably have a lot of strong sides that will benefit the business.
But one person seldom has all the skills and personality that make the perfect business.
You may have strong skills in selling and developing your product .
But may be not in working the paper work & administration function.
It is important to acknowledge that you might not be the best in all fields of work. if you know your weak sides .you are able to cover these by hiring staff
Or get help from the network or purchase the missing skills from a consultant .
Do you have any weak sides?
And how will you cover them?