Business Sphere

Business Advice, Entrepreneurship, Consulting, Real Estate

Do You Have What It Takes To Start Your Own Business?

I always received e-mails from readers, asking for my advice and tips on how to start a business.

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image from www.findyouraccountant.co.uk/.../Default.aspx

Having your own business is fun and challenging and, if it is profitable, can make you financially independent. It can make you your own boss, you become the employer instead of an employee and to some people, enable them to realize their dreams of having a lot of money and travel around the world.

Yesterday I received an e-mail from Jamilah, who introduced herself as a work-at-home mom from Kuala Lumpur, Malaysia, asking: “How would I know if I have what it takes to start my own business?”

The question seems simple enough but many would-be entrepreneurs are looking for answers.

So, to start your business, what resources and steps do you need to take? Here’s the basic requirements:

1. Business Plan. Before starting your business, you must have a guidepost, a blueprint for success. This is the business plan. It must be a clearly laid out plan touching in all facets of your business to provide you with the direction and guide for implementation.

Without a business plan, then you can’t get anywhere. A business plan will map out what you need to succeed and how you will achieve your goals and objectives, including your profit objective.

2. Market Niche. A good business plan must include a market study, but a market niche is important, the reason why I’m emphasizing this. Your business must have a specific target customers, with their own needs, wants, tastes and preferences.

You must know what your customers need, so that the products and services that you will offer must answer their needs. It is only when you provide customer satisfaction can your business grow and succeed.

3. Capital. How much capital do you need?  You must have money to cover capital outlay and revolving or operating funds for your day-to-day operations.

Any business requires some form of investment, and you will need to know how much you have and need, to sustain your operations before it can generate income and profit.

Some entrepreneurs believe that it would be good to start your business while you are still employed, so that you have a “fall back” position, e.g. some income to live on while you are still building your business, or a job in case your venture end in failure.

4. Customer Relations. As mentioned earlier, providing customer satisfaction is a basic requirement, without which your business will not prosper.

The way you run your business and relate to your customers will spell the difference between success and failure. Be prepared to “go the extra mile” with your customers. Care about them and provide them with quality products and services that they need.

5. Skills, Experience, Attitudes. You must treat your business as a full time job and manage it professionally.

Having the five basic requirements as discussed above will help make your business grow. Starting a business is easy, it’s how to make it grow and profitable that is hard.

But starting your business right will enable it to grow and become profitable. The rest is up to you—if you have what it takes.


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7 Comments

  1. Hi Eli,

    Essentially, one will get out of their business only that which they are willing to put in.

    Great post.

    I hope this finds you well.

    Sincerely,

    Mike

  2. Starting a business requires a lot. The list of requirements you stated above may seem easy to understand but really hard to do. Anyway, thanks for sharing.

  3. Hi Eli,

    I’m glad to be back on my blog hopping and you are among the first I visited. As usual, you have very informative article here for those who want to start going into business. How I wish my target audience, the Internet cafe owners in the Philippines, could read your blog. As it is, attrition rate in the i-cafe business is very high because they fail to consider the factors you discussed here.

    EdZee

  4. I think the most easy way to know if we have enough for starting business is by trying it. It’s just as simple, start doing it with our own resources, and make some conclusion and feedback by try and error after doing it for some while. Believe it or not, my parents started their own business after retirement by doing this process, and make it through for four years now, and their business is still growing.

  5. having this five strategy is good enough to build a business. but we just have to take a risk be’coz we don’t know exactly what happen…after …….

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