Many people agree that there is a great disparity between what is taught in school about starting a business and what it actually takes to start a business in real life. The principle learned in business classes can only work out in a perfect market where there are not government and competitor.
Immediately after school, graduates rush out there to start a business. Over 80% of this business collapses after a short period. For those who don’t despair the first and the second business can be hard to pursue. But from the third business, many count big profits from them. This is after one has learned and understood how to start a business. This is How to set up a successful business for the first time.
How to set up a successful business
Study a business gap and maximize it
Business is all about satisfying people’s needs. After people are satisfied, they give you a reward called profit. The first step towards setting up a successive business is to study and research a business gap. A business gap is a business opportunity that has not been exploited yet.
The best way to go about this is to ask yourself the question of if I were a consumer what that thing is am lacking and willing to pay everything to get it. You will land on the best ideas after reasoning like a consumer. Don’t go for a business that is known to return many profits go for a business that is certain shortly.
Save and built an excellent lending portfolio
In any business capital is the backbone of the success. The more capital pumped into a business, the more the business gains competitive advantages capabilities. How to get the capital is the big question. There are various ways to get money to start a business. The surest and certain way is to save your personal income.
Savings should be done in a reputable bank that is known to give loans at very competitive cost. Create your credit by saving more and more. When you are sure, you want to start a business, withdraw the saving and invest if they are not enough to borrow money from your bank. If you have willing friends, you can also take money from them.
Benchmark with similar business
You will not get a taste of what the business you want start looks like from the outside. Be sure to bench make from a person who has a similar business. The best way to do this is to volunteer in the business. Be keen to learn and very ambiguous. Take note of how records are maintained in the business. Look into to see if the business is seasonal or unseasonal.
Check whether there are some months that the business proceeds are higher than other. Research on the amount of capital invested in the business verse the returns the business gets. This will help you predict them the amount of money you are likely to invest in your business. Don’t open to them the intention of starting a business. they may see you a major threat