Tips for taking part in business

Kristofer Hivju
Tips for taking part in business

Putting the first steps in a stand-alone business, you need to become familiar with all present on market opportunities. Professional approach and reliable preparation, certainly easier path to success. It is also to find out what problems are most likely to entrepreneurs. For this purpose, you can use the knowledge and expert guidance.

Well thought out and carefully planned business has a much greater chance of success than spontaneously formed company. To start their own business need to be prepared.

A good idea is half the battle

Prior to founding the company, it is worth considering what really can be, consumers need in everyday life and without which it would be difficult to do without them. They may be goods or services that are very eager to take advantage. Innovative solutions have the potential and provide much greater opportunity for development than the old, repeatedly reproduced business ideas. One example of this can be "Mlekomat", a device that recently appeared on the Polish market. With this, simple in the operation of the machine, farm significantly increased sales of its milk. The idea was simple give fresh milk city residents. How? Putting the machine in the center of the agglomeration, where everyone can pour himself a fresh milk straight from the cow. Of course, for a fee.

Duplicating already existing on the market business idea, you have to reckon with the strong competition. Breaking out from the hundreds of similar companies is extremely difficult and time-consuming. Increases also costs considerably in the initial period of operation of the company. It is, therefore, before starting his own business carefully analyze the market and find the niche that can be exploited.

Business plan

The first and fundamental thing, if you want to run a business, is to prepare a business plan. This is nothing like a written clarification of the expectations of future entrepreneurs, business plan step by step. This project is also an essential requirement in institutions where you can get funding the municipal office, labor office, bank. Do not treat it as a purely formal requirement. No action plan is a simple way to entrepreneurial failure.

A good business plan should contain the necessary information, such as:

  • how will prosper company (eg. Internet sales, distribution)
  • at what the market will work analysis of the industry and competition,
  • how many will be employees
  • how will you acquire new contractors,
  • which group of consumers, buyers will have an opportunity,
  • as will be conducted to promote the company,
  • what position the market has to take the company in the first year, second, third, and another,
  • what will be the sources of financing of the company (eg. savings, loans, credits, grants)
  • what will be the company to make money and how much,
  • after which time the company starts making a profit,
  • on what basis it will be conducted accounting.

When preparing a business plan, do not forget about the way the sale of goods or services and the pricing policy of the company. Specified action plan greatly facilitates the efficient management of the company.

Target group

The entrepreneur should know your future customers. He must also know what are their needs and financial capabilities. As a result, its products or services will be much more competitive.

  • Example: clothing store for young people
  • Target group: girls and boys between the ages of 13 to 19-tu-tu years,
  • Needs: fashionable appearance, well-known brands, the latest collections of Youth, unique clothing, the desire to stand out from the crowd
  • Financial capacity: no personal income or limited funds established by parents amounts of money, the average financial capacity.
  • It should also be noted that depending on the age of customers, differentiate their needs. 60-year-old woman, do not necessarily want to dress in tight shorts and high heels. Therefore, it is important to determine the specific additional criteria for identifying eg. Customer preferences.

    Supervise expenditures and preferred embodiments

    The biggest problem when it comes to setting up a business seem to be money. Starting a business is precisely the moment in which the trader is looking for capital. If you can not find it in the bank (no credit capacity), uses its own funds or borrow the family. The last way to raise money is most beneficial for the aspiring entrepreneur. You do not need to pay off, sometimes horrendous interest and fear of losing their property.

    Starting a business should go to the employment office. There are many forms of support of small business. From one-time benefit for the purchase of equipment for the company, through the financing to create new jobs, and economic consulting in the ending. You can also take advantage of EU subsidies supporting Polish entrepreneurship or simply go to specialized companies, professionally engaged in business consulting. There you can get all the information extremely helpful in making the first steps in business. According to research CSO in the first year of doing business down about 60 percent. companies. Another 40 per cent. over the next two years. This is proof that the start-up capital and the company's operations in the first years of its existence, it is extremely important and requires meticulous consideration.

    Money for the purchase of goods is not everything. For beginners businessmen will face many risks associated with the loss of liquidity. These include the so-called. "Curse of the unpaid invoices." It involves unpaid by the contractor invoice for the service or the sale of goods, and of which the drain VAT. In this way the loss is double. Not only that dishonest recipient is in arrears with payments, it still need to make the transaction, paying due skarbówce fee. For this eventuality, you have to just protect yourself financially. Good to have specially set aside money to not have to take out further loans. You can also use the services of factoring companies, specializing in the collection and payment of debts owed invoice.

    Another issue is minimizing the costs associated with the operation of the company. Feel free to use cheaper, alternative ways of efficient management. Especially, that the current market offers businesses a wide range of convenient solutions. They include the payment of accounting website, specialized computer programs tailored to the individual needs of the client or web financial analysis of the company. The latter service is extremely useful for people just taking their first steps in business as their ability to analyze and use financial data is not yet as developed. Seeking money for the start-up company is definitely worth it to use the grant. Both the EU institutions and municipal offices, municipal offices and work have the opportunity to support young entrepreneurs. The money from these institutions are considerable, because they amount to even 50 thousand. zł. To get them, you need to convince officials to his idea. This is where the business plan. The better written, the greater the chances of grants.

    Taxes and accounting

    Opening the business, select the organizational and legal form. Since it will depend on the tax treatment and the nature of its accounting. Individuals engaged in business activities, they can choose the best for each other form of taxation a flat-rate income tax, linear 19% income tax or income tax on general terms of scale.

    Another issue is the method of accounting. On the Polish market there are a good number of accounting offices. Their work is always connected with additional costs for the company. The obligation to keep and retain records in accordance with corporate law forcing companies to use their services. This does not mean, however, that the accounts must be conducted in a specialized accounting office. Anyone can conduct its documentation, are used for the various types of computer programs and websites.

    Business contacts

    One of the key elements of business are business contacts. Without them it is difficult to achieve anything. An entrepreneur who is just entering the market, usually non-existent or is small. It is worth spending some time to expand the network of business relations. Such knowledge can be profitable in the future. The simplest and most proven way to find future business partners is the Internet and professional press. At the present time, many established companies that specialize in gathering data about entrepreneurs. You can get them from the current telephone leads to people in the industry, as well as consult on the businessman. Knowing all the specifications of its future business and having a concrete plan of action, you can begin to realize his idea.

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