People understand that their own business can give much more money and freedom than hired work. But entrepreneurship has a flip side: according to statistics, most new businesses burn out in the first 1-5 years.
The success of a future business depends not only on personal qualities and capital, but also on other factors: seasonality, demand, etc. So which business is better for a newcomer to open? We will talk about which business is most in demand in 2020, and what is needed in order to start a business.
7 main rules to start your business from scratch
If not all, then very many can become successful businessmen. Here are the main rules for a first startup.
Start with any business
If you do not have experience in doing business – there is not much difference which one to open. The most important thing now is not to make a successful company with millions of sales, but just to try yourself. Understand how much you are interested, how much it turns out to sell, to draw the first conclusions. Therefore, it is not so important how much money you earn in your first business, and how long the business will be afloat. At the very beginning, the main thing is to start. For example, you can start making money at bankruptcy auctions without even leaving your home!
Choose a growing niche
When choosing a niche, many make the same mistake: they choose the one that is currently heard, the most popular. But in such a niche there are always many competitors who have more resources and experience. It’s difficult to win, they have to cut prices in order to attract at least some customers. As a result, the business is unprofitable and dies.
Way out: find a niche that has a chance over time to become very popular. In other words, look for a growing market. In this case, your chances increase significantly.
We recommend reading it: What are vending and vending machines? How to make money on them?
Find a competitive advantage
Before starting a business, evaluate your competencies. If you do not know anything about the restaurant business, but decided to start it, it will be difficult for you. And you will quickly lose to a person who understands how this sphere works. Therefore, it is better to start with something with which you are at least a little familiar. For example, you have experience in this field, or at least a great interest in it.
Test your niche
You can write a business plan for 2 months, pay rent, launch an advertisement, and finally find out that nobody is interested in your offer. Before starting a business, the main task is to test the chosen niche and quickly get the first money.
To do this, it is better to choose areas where the execution of the order is not delayed for several months in order to immediately assess whether it makes sense to continue to work in this direction.
Learn to count income and expenses
From the very beginning, you must understand how much money a business brings you. And also compare these indicators for the year. For example, if the business is seasonal, you can make good money for several months. But in terms of annual income, this amount will not be higher than the usual salary. Your goal is to open a highly profitable business. Or at least a project that has prospects of generating high income.
Ideally, your business should be directly connected to the Internet. At the moment, Internet business requires a minimum of financial costs and brings good profits. But even if you decide to open a classic business, make sure that it has a representative office on the Internet.
The site, groups on social networks and other resources significantly expand the reach of the target audience. Take care of the delivery of your goods to other cities to expand the circle of customers.
If your initial capital is minimal, or you don’t want to invest at all, sell the services. Unlike goods, they do not need to be purchased. You can sell both your own and others’ services.
We hope these tips will help you make the right choice and choose a promising niche for your business.
10 tips for a budding entrepreneur
Non-entrepreneurial people often have inadequate ideas about their first business. Some people think that they will immediately reach high speeds, while others overestimate the audience’s interest in their product. Still others invest a lot of money and burn out. How to start a business from scratch, to be among the first?
In order not to be disappointed and not to abandon a new project ahead of time, remember these tips:
- Do not take business loans . At the very beginning, it may seem that the business will bring instant and large profits, but in practice this almost never happens.
- Consider possible losses . Remember that many businesses burn out in the first few years of existence.
- Have a prepared plan for positive and negative developments.
- Do not invest in business large amounts deferred for the education of children, payments on loans or mortgages. Remember that they may not return.
- Explore the market before entering it.
- Start with projects that require minimal investment .
- Adopt other people’s experience – learn from existing entrepreneurs.
- Work in a niche you know . Ideally, do what you like.
- Define a goal and make a clear plan to achieve it.
- Be prepared for difficulties and failures . Do not give up!
Entrepreneurship is the balance between caution, rational calculation and risk. But you can only find your own balance in practice. Therefore, if you decide to open your own business, do not delay planning too much.
We recommend reading it: 25 Business Ideas for Animal Lovers
How to start a business from scratch: everyone should know this
Some people, including sociologists, believe that entrepreneurs have a special “commercial vein” that helps them launch and run successful, profitable projects. Is it really?
If you look at someone else’s experience of entrepreneurship, we can conclude that some people are more successful in business than others, but this is not the only factor. Many businessmen burned out, and more than once, some completely went bankrupt, but some of them got on their feet and still launched a successful project.
The most important thing that helps people to successfully conduct their business is a series of specific skills. Having mastered them, almost anyone can become an entrepreneur.
Control of motivation and psychological attitude
If you are used to despairing a little, giving up at the first difficulties and working only in the mood – you are unlikely to succeed in developing a successful business. Real entrepreneurs are prepared for difficulties and failures and perceive them philosophically, exclusively as useful experience.
This is the ability to navigate the market, quickly respond to changing situations. Everything is even more important than the correct assessment of a niche or an impressive starting capital. The good news is that business thinking can be developed if you set yourself such a task.
The ability to learn fast
Whatever niche you choose, it will certainly change. There will be new trends, new requests from customers. If you can’t quickly learn and keep up to date, you will quickly remain out of work.
You will have to learn how to draw up both long-term and short-term plans, change and supplement them on the go, measure results. Without this, you cannot understand not only where you are going, but even how much you earn.
Thirst for self-development
You will have to constantly look for options to improve your offer, product or service. If you stay in place for a long time, competitors will quickly overtake you. Without the desire to make a better product than the rest, there is nothing to do in any market.
Soberly evaluate whether you are ready to spend your time and energy, develop the necessary skills in yourself? Moreover, no one guarantees the success of the business. Entrepreneurship is always a risk, do not forget about it.
If the difficulties do not scare you, we’ll talk about what exactly needs to be done to start your own business.
We recommend reading it: Business of the future. Top Business Ideas for 2020
Business from scratch: 7 steps of a start-up startup
The process of starting a business from scratch in any niche will be similar. Here are 7 steps you have to go through:
Identify your strengths and key skills
Before embarking on a business, understand what you are doing well and what’s not good, what’s interesting to you and what’s not. Any skills will do: repair electrical appliances, quickly count, drive a car. Perhaps, having structured the entire list, you will understand that you would like to associate your business with a specific occupation, for example, your own hobby. But be prepared for the fact that you have to constantly develop in your chosen business.
Explore the market and competitors
You need to study carefully, not just looking at the sites of companies. It is best to go to the most powerful market players. Take a live look at their products, understand how they communicate with customers.
If you are doing an online business, you can also chat with competitors under the guise of a customer, or even buy some inexpensive product from them. So you will see how the customer service, support service and other important business systems work.
If you offer exactly the same as competitors, your business will fail. You need a unique selling proposition (USP). It is especially necessary if your product or service is exactly the same as that of other market players. Then you need to think about what special you offer the client: faster delivery, discount, special service.
From the very beginning, try to bet on uniqueness, otherwise the target audience will simply not notice you.
Make a business plan
A business plan should take into account the resources that you have (money, premises, personnel, etc.) and market features (competitors, target audience). Having clearly structured these points, you will be able to think over how best to deliver goods, how and where to advertise, how much to spend on it. Without a business plan, your movement will be chaotic and most likely doomed to failure.
Find first customers
The first customers are needed not only for profit, but also for once again evaluating and checking demand. For starters, it is best to use word of mouth: to offer your product or service to friends.
From other budgetary ways to express yourself: ads on free boards, in thematic groups, targeted or contextual advertising. Consider your proposal in advance so that it not only reflects the benefits, but also inspires confidence.
If you want to linger in the market, you need to create your own loyal audience. From this point of view, the first customers are very important: they will not only leave you positive feedback, but can also tell friends and acquaintances about you. And this is the first step to recognition and recognition in the market.
We recommend reading it: Business idea – luminous flowers
Analysis of results and scaling
If you received the first reviews, first money and new customers, do not rush to celebrate. Now you need to think about how to attract even more people, simplify routine processes and to whom to delegate them. If the result turned out to be worse than you expected – analyze the errors and try a new offer, or another market.
Although new items may appear in different niches, these 7 steps are basic to starting any business .
Do not take entrepreneurship as hard labor and routine. Most likely, at first your business will take up a lot of your time, but soon it will pay off. And not only money, but also the pleasure of work.
Which business is better to open: 3 best ideas for beginners
There are many interesting niches and ideas for making money, but most start-up entrepreneurs have a rather limited budget, and some do not. But this does not matter — even seasoned entrepreneurs are advised to start with a minimum of investment, and not to invest all their savings in the business. So which business is better to open? Below you will find the 3 most profitable business options that you can run with a minimum of funds.
Business with China
Chinese goods are very cheap, which allows for resale increase the price of them by 100-300% or more. The most important thing is to check whether the selected product will be in demand. This can be done using free bulletin boards and groups on social networks. If the ad has a response – you can safely order the goods.
Detailed business startup scheme:
- test the demand for several products, choose the best;
- order goods in bulk;
- set up online advertising or place free ads;
- send orders by courier or through a transport company;
- invest part of the revenue in advertising to receive more orders.
The biggest risk here is to buy goods with low demand. But this can be avoided by checking it in advance.
If you are well versed in a topic, you can teach others about it. Infobusiness differs from classical tutoring in that you record a training program once and upload it to the Internet. Thanks to advertising, interested people will find and buy the course. This is almost passive income – just investing a little in advertising.
The infobusiness can also be scaled: conduct online training, give advice, etc.