How to open a business – complete instructions
Every aspiring entrepreneur is eager to create a business from scratch. But how to open a business with a small financial investment and a good return?
Before proceeding to active actions, it is necessary to delve into the theory. Because it is preparation that creates most of the success. You need to study the nuances of the market, your own capabilities and work out a strategy. We will answer the question of how to open your own business for a beginner.
What to look for before starting a business?
Coaches, business coaches, and success mentors paint the image of the self-employed entrepreneur as something of a superhero. He is always active, thinks clearly, knows how to communicate with other people, almost never sleeps.
But even if you do not have the skills of a super-human, you certainly have character traits that will help in starting your own business.
Psychological features of starting a business
Any undertaking implies a great effort. This includes time costs, nerves, sacrifices of self-interest and a lot of work. Before asking the question “how to open a business", think about whether you are ready to sacrifice your already established life? Time spent with family or loved one? Available stability? Fun with friends?
Don’t forget about stress too. He will accompany you at the initial stages all the time: during the search for premises for rent, when recruiting staff, establishing supplies, signing contracts, setting up your own production, and so on.
Resilience to stress will allow you to pass all the tests with dignity.
Choosing a business idea
Despite your plans and ambitions, you need to think clearly. Conduct an analysis of the location where you will start your business. It can be a district of the city, a locality, or it can be a specific building. Find out which direction is in demand, but not developed enough. Analyze competitiveness.
Think about whether you are ready to do the work that will be in demand. Is it interesting to you?
Important! Some entrepreneurs see a free niche and strive to fill it. However, they burn out very soon, lose their business and invested funds. This is because the interest is gradually fading away, since initially it was not a favorite business that was chosen. Management will quickly fall into mediocrity, and your customers will be poached by more enthusiastic competitors.
Many entrepreneurs start from scratch. It is very difficult, time-consuming and resource-intensive. You are lucky if you have some money to start your own business. But be guided by the principle that you need to start small. Do not get into debt, take loans at high interest rates with a guarantee of an urgent return.
A small business may not live up to your expectations and there will simply be nothing to pay the bills.
If the need for a loan still arises, look for the most advantageous offers from the bank with minimal interest.
Important! You should not put into circulation money that was set aside for health, education of children or other important needs. You run the risk of not returning the invested funds, leaving loved ones without a livelihood.
Investors can also be attracted to receive start-up funds. To do this, it is enough to draw up a competent business plan, prepare a presentation with a detailed breakdown of the project implementation and the profit received as a result.
Do not forget to focus on the profitability of your business, because this is what will ultimately be of interest to your investors.
Another profitable way to raise funds is to participate in various government programs. They operate both at the regional and federal levels to support small businesses. Depending on the region, programs can be aimed at supporting small businesses in the field of agriculture, animal husbandry, in order to create jobs, and so on.
We set goals
Clearly decide what result you want to achieve in the initial stages.
Someone wants to get rich. Others dream of becoming good managers. Still others want to achieve success and recognition.
Fourth just dream of doing what they love.
Always remember that a business consists of a set of ongoing activities. And all of them involve a daily, every minute investment of their own strength, time in development. Therefore, if you pursue the goal of enrichment, then most likely you will not succeed. You need to “burn” with your work and give yourself completely to it.
Success is achieved by those entrepreneurs who provide not only inexpensive, but also high-quality goods and services. Despite the fact that sometimes it is financially and time-consuming, it is a guarantee that after a while you will not have to deal with complaints, customer complaints or their dissatisfaction.
Remember that even despite the cost, the buyer will always choose exactly the product or service that was provided to him in the best possible way. Do not forget about word of mouth, as well as the work of sales channels. Gradually, your positive reputation will be developed and the time and money spent will be justified.
You have decided on the scope of your activity, the location of the business and other nuances.
Even if you do not have initial start-up capital, it does not matter. You can start your own business by betting on strengths.
- You can earn extra money by providing services based on your skills and knowledge. For example, you are good at massages, haircuts, baking, makeup, or getting along with children. Even if this activity does not become the basis for the development of your future business, it will help you earn money and save it.
- Provide mediation services. This field of activity is suitable for people who have sales skills. The ability to negotiate low prices for products with suppliers and sell them at a higher price will be an excellent basis for doing business.
- Perhaps you have some information and will be able to sell it well. For example, write term papers, prepare children for an exam, conduct extra classes, or organize your own training. In any case, competent presentation of unique information is always in demand.
- Partnership relationships. Perhaps your skills will be useful to other businesses. You can also make good money on this. For example, you see in advance a situation that threatens an entrepreneur, anticipate it in time and help avoid problems. For this skill, you get a good reward, and then you can start doing business on a partnership basis.
How to open your own business in 6 steps?
First step. Deciding on an idea
- First you need to choose the right direction of activity. And it’s important that you like it.
- You also need to analyze what you can offer your consumer, in what way your offer will be of better quality and unique than others.
- It will not be superfluous to study your competitors. Find out if their services are in demand.
- Find out how freely you can enter the market with your offer.
Step two. Business plan
At the initial stages of the formation of a business, you can draw up a plan yourself.
The basis of any plan is the calculation of income and expenses. Based on the amounts received, you will receive an approximate coefficient of efficiency of your business, as well as its profitability.
“You want to open a photography studio.
If you do not take into account the expenses that will appear in the first month (opening an IP and further registration), then the estimate of income and expenses is as follows:
- monthly rent of the premises will be 50,000🪙;
- the cost of electricity, water, internet and other utilities 10,000🪙;
- the salary of a studio worker is 15,000🪙 per month;
- you will spend about 30,000 🪙 per month on promotion and advertising of your studio;
- every month you need to set aside money for the purchase of decor when changing the interior of the location about 20,000🪙
Thus, the monthly cost of maintaining the studio is 105,000🪙
- The photo studio is open from 9 am to 8 pm. On weekdays, the cost of renting a hall is 1500🪙 On weekends, the cost of renting a hall is 2300🪙
- But on weekdays, the average studio is busy twice a day.
- Weekends are busy on average 5 hours.
- On average, the monthly income from renting a studio is 150,000🪙
- This means that the business remains in the black by 45,000🪙”
It follows from the example that when calculating the effectiveness of a business, it is necessary to take into account equipment, its maintenance, furniture, consumables, employee salaries, utilities, and so on.
But the entrepreneur must be familiar with the concept of "break-even point". This is the volume of production or sales at which costs are offset by income, and ultimately equal to zero.
Knowing this indicator, you can determine the payback time for your business, as well as make a preliminary analysis of the cost of rent, delivery, labor, and so on.
Step three. Starting a business
At this stage, you need to agree on the lease of premises, purchase equipment, raw materials, products, consumables, and also fully prepare the place for carrying out your activities.
Step four. Employees
If your business involves the presence of additional employees, the next step is to select a professional. Make high demands on your future employees. After all, your income will also directly depend on them.
Disinterested people are worse than inexperienced employees. Because if a person does not have any knowledge, he can always be taught, directed. But if there is no motivation to earn, most likely, such an employee will become a burden for you.
Step five. Beginning of work
You form the first sales, launch advertising. But be sure to analyze all the shortcomings, adjust them on the go, innovate.
Step six. Receiving a profit
Closely control financial flows. Don’t spend all your earnings rewarding yourself for a successful launch. But save money in order to further expand your own business, take it to a new level.
Opening an IP as a mandatory step when starting a business
If an individual entrepreneur does not want to have tax problems in the future, he needs to officially register.
There are several ways to carry out registration.
- Personal submission of documents to a tax authority or to a multifunctional center.
- Drawing up a notarized power of attorney and transfer of documents through third parties.
- Sending documents by insured letter.
- Online registration on the website of the Federal Tax Service or through the portal of public services.
- Registration in electronic form through a notary.
- information from the passport;
- data for communication with the applicant in the form of e-mail and telephone.
- The single agricultural tax is a regime for people who work in the sectors of agriculture, animal husbandry and crop production. A single tax is paid twice a year. But VAT is also charged. The declaration is submitted every 12 months.
- A single tax on modified income is a payment not from real available income, but from imputed income. It is determined depending on the scope of work of an individual entrepreneur. But the declaration is submitted every three months.
Properly assembled package of documents helps to significantly save time and avoid unpleasant moments. Because you don’t have to deal with problems as they come. They simply won’t.
But for registration of IP it is required:
- entrepreneur’s passport;
What business is relevant?
After quarantine, when people were forced to be locked in their apartments, many seriously thought about buying a private house. But this is a good opportunity for you. Because it is highly likely that construction companies will receive orders for the individual construction of private houses, townhouses, cottages and summer cottages.
This business is very profitable and you can start it with a small investment. Because an entrepreneur can purchase building materials at wholesale prices, experiment with construction teams in search of permanent cooperation.
Wealthy people need security. This is necessary in order to protect yourself from various encroachments. But given that many people are moving to the private sector, it is important for them to protect their property. Including your life and health. And it is useful for those who want to start a business in this area. Because the implementation of security systems is in incredible demand.
Online clothing and footwear store.
How to open a successful small business for girls and women? Do what is characteristic of the fair sex! Because that’s how you’ll feel most comfortable doing business.
It is important for people to look fashionable and keep up with the times. But at the same time, it is advisable not to spend a lot of time shopping. Therefore, a well-organized online store with delivery and fitting at home is an ideal way to make money. Sending can be carried out to other cities and even countries. Because then the reach of potential customers will be much higher.
But you can open a successful store almost from scratch. In order not to burn out, first use the dropshipping system. At least until you find a good supplier.
A great opportunity to earn without leaving home. Because on the Internet, businessmen constantly organize marathons. Or carry out transactions with cryptocurrency. To be on the wave of progress.
This is a great opportunity to realize yourself without big investments. All you need to open a business on the Internet is a computer, desire and knowledge.
agency of children’s animators
It is no secret that many parents dream of giving their children a memorable and bright childhood. But children’s holidays have long ceased to be ordinary gatherings with a cake at the table. Because that’s not the way it is now.
Now every birthday is an extravaganza of emotions and entertainment. A children’s animator is the highlight of any holiday. Because it is he who holds games, entertains guests, according to the age of the audience. But a good children’s animation studio offers a wide range of costumes, artistic specialists, and even an area for celebrations.
You can start your own business almost from scratch. But it is important to acquire only a few popular costumes. Do not forget to actively maintain social networks and upload as many photos and videos as possible. To attract potential customers, of course. But give preference to professional photography.
Every girl and woman carefully monitors her appearance. Therefore, beauty services are more relevant and popular than ever. But you can work in any field – manicure, pedicure, eyelash extensions, hair care, cosmetology.
Specialists with a medical background can practice injection procedures. But you can get popularity and an endless stream of customers through social networks. Including Instagram.
Women’s business in the field of beauty is not only a profitable business, but also a real hobby that allows you to create beauty with your own hands, look for new friends and constantly develop. If you choose such an area, be sure that work will become your favorite thing.
But starting your own business is always exciting and exciting. With the right approach, it can bring not only good earnings, but also pleasure from work.
However, success comes only to those who truly strive to achieve the goal. Give yourself the chance to become a sole trader. But carefully analyze your capabilities and go ahead with your dream, not postponing for tomorrow. Because you can become successful today.