Posts Tagged ‘business idea’
I was having this conversation with a business coach colleague yesterday. She deals with a lot of business owners, especially those starting out and those experiencing rapid growth. She’d been doing some research and one article she read suggested that a major reason that businesses fail is because of a lack of capital. This got me thinking about how people fund their ventures and whether they need a lot of capital to start their own business.
To be honest this really depends. If you are a product based business obviously you will need capital to invest in product but, if you were to start a service based business, you can often times get your business started with little or no investment plus time. You will need some capital though and there are some options available to you:
Friends and Family- Many people look to family and friends to fund their business ventures, especially if the funding required is small. Family and friends will generally offer you generous repayment terms on your business loan but make sure everything is done professionally. You don’t want to ruin relationships with friends and family for the sake of a few dollars. Also, if you get money from family and friends, make sure you allow them to share in your business successes.
Business Credit Cards- Business credit cards are another popular option that people look at when they aim to grow their business. Business credit cards can help with cash flow and, if you pick the right card, you can sign up to a rewards program and get points that can be redeemed for flights, accommodation or a variety of other rewards that may be useful to you. These rewards can be a pleasant little bonus for all of your hard work.
Investors- If your business idea is groundbreaking, or if your business plan is solid, you may be able to pitch to investors and get some investment in your company. If you expect rapid growth or you have a ground breaking product, then this may be the option for you. The problem with investors is that you may lose some of your decision making power as you give away part of your business to an investor.
At the end of the day, the most important factors for business success are clearly defined goals, the dedication to achieve them and then a marketing plan that will get your business in front of people. If you do need business finance there are options available to you. I have outlined three of these above.
Once we found our business idea is, once you know which company will be created, and we already have enough resources to do this, it is time to implement our idea.
But before installing and implementing our business, we should take our time, and take into account the following tips:
Clearly define the target market
An important requirement before starting a business, is to identify clearly what the market or target audience which will target our products or services.
Clearly define our target market will enable us to know well the needs, tastes, preferences, habits, customs and consumer behavior that constitutes, we will focus only on him, specialized in design products that meet their needs, tastes and preferences, and strategies that capitalize on their habits, customs and behaviors, thus achieving greater efficiency.
When starting our company, it is advisable to target a single type of market, i.e., focus and specialize in one type of consumer, and then as we get older, just starting to turn to other markets.
Market research
Sewn for market research to gather and analyze information about consumers who make up our target market.
Which means getting to know and analyze well your needs, tastes, preferences, habits, customs, behaviors, and other characteristics?
Good research will allow us to design the product that best suits their needs, identifying the most appropriate price for them, establish sales channels more accessible to it, design the advertising message may have their greatest impact, etc.
Test the product or service
Before investing time and money in building our company, we recommend pilot testing to help us evaluate whether the product or service that we offer have a good acceptance.
To do this, we can invite some people to try or taste our product, we can put a small stand of gestation, we can install a small stall, and we can let our products on commission in another business.
The test our product or service before its launch, we will know if they really have a good host will tell us that we are making mistakes, we will take corrective action.
Analyze competition
Before starting a business, we collect and analyze information about our future competitors.
We collect information about how many, where they are located, what are the leaders, what their markets, what are their products, what prices, what are their strategies, what is your experience, what are its advantages, what are its disadvantages , etc.
To do this, you can visit their premises, purchase products, testing services, interview people who work or have worked with them, to interview some of its customers, etc.
Make a good competitive analysis will allow us to make better decisions and design strategies that allow us to exploit their weaknesses and to address their strengths.
Make a business plan
Another important tip to consider before starting a business is to develop a good business plan.
In a business plan will establish our objectives, means and strategies that will enable us to achieve these objectives, the resources they need, the processes we use, our projections of expenses, etc.
All of which will establish the feasibility of our project, the investment required, the potential profitability of the company, will guide us to build and manage our business, we will minimize the risk, and allow us to make better decisions and be more efficient.
Spare no expense
By creating our company, we must ensure that investment is the smallest possible, looking for lower costs or expenses, for example, to take our time to choose the supplies or equipment of the company, or who will choose the right suppliers.
However, low rates of investment should not mean neglecting the quality of inputs or products to buy, not to the point of projecting the image of austere company, for example, widely used to buy equipment, or having poor decoration.
Whenever we start a new company must give the image of a thriving company with a good future, we must consider what it calls poor, and that consumers will not buy from companies like austere.
Avoid debt
By creating a company, it is advisable that the total investment, or at least most of it, is made up of equity.
It is advisable to take debt as quickly, but to start with equity, then, as the business grows begin acquiring new debt that will allow us to grow it further.
If you do not have enough money to invest, an alternative is to borrow from family or friends, but always making sure the loan amount is not excessive and that, after obtaining the money, we are not going to feel so depressed at having to return on a deadline.
Have an emergency budget
When starting a business, it is common that expenditure always end up being higher than budgeted, i.e., in the end the investment required, because some costs or hidden fees or contingent, always end up being higher than originally estimated.
As a council before starting a business, is that when preparing our budgets, always reserve a small emergency capital, which can be used for any eventuality, unexpected or inconvenient.
Beware of companies
If we consider having a partner to build our business, we must try to find partners that are complementary to us, who have skills or to provide something we do not have, for example, financial resources, market knowledge, business contacts, experience or knowledge a particular item of business, etc.
We also seek partners that have the same aspirations for growth that we who are as motivated as us to create and bring up the company.
On the other hand, we also have to be careful in society, we must make clear, preferably in writing, all agreements and measures to be taken for any eventuality, for example, will split the profits, which will be functions each, what measures were taken in the event that one partner decides to withdraw, etc.
Patience
The last advice to consider before starting a business, is patience.
Patience means being able to create a business is not easy, but rather a complex, full of obstacles, uncertainties and drawbacks.
Patience also means knowing that success does not come at any moment, but something that takes time to achieve, and requires hard work, effort and dedication.
Patience also means going slowly, slowly, starting small, but projected on grade, started selling a few types of products, comprising a few types of markets, and then little by little they grow up.
If you’re in the situation of wanting to start your own business, but do not know yet what business to you here are some guidelines or tips to help you find the right business:
That which you are passionate about
Think about what you’re passionate about, something you like very much to do, something you would do if you had all the money in the world or no one would even pay you for it, and then think in a business where you do exactly what you love , or related to it.
For example, if you love pets, your business idea could be a pet daycare, a pet spa, a pet accessories shop, etc. Or, for example, if you love cars, your business idea could be a mechanical workshop, an auto parts store, a business dedicated to buying and selling cars, etc…
You know what to do or know very well
Think you know what to do or know very well that that over which you have much experience, that you have mastered, and then think about a business where you can take that skill or knowledge you possess.
For example, if you have worked for years in the sales of a company, your business idea could be a school of sales, providing sales training, provide advice on sales, write and sell books or manuals on sales, etc…
Something where your competitive advantage take advantage
Think about what your competitive advantage, i.e. what aspects where excel or stand out to others, and then think about a business where you can take advantage of those benefits.
For example, if one of your advantages is good taste for fashion, you could take that advantage and start a fashion shop. If one of your benefits is to prepare burgers, you could take that advantage and start selling. If one of your advantages is the knowledge that few possess on the production of certain product, you could take that advantage and start a business dedicated to it.
Something not offered by others and may have welcomed
Think of something you do not provide or others, and could be well received by consumers, something that is unique, novel, and innovative; you can differentiate and distinguish from others.
Not necessarily have to be a totally new product or service, but could be a product or service that already exists, but with new features, benefits or attributes. For example, there may be several restaurants in your area, but something different and novel may be one that has recreational games for children, or one that offers live shows or shows.
Something people would like to have
Think of something that people would like to have, but that does not exist, at least locally, something I always hear that people seek but never find, something you always hear that people would like them to exist.
Research the market and conduct surveys among family, friends, acquaintances or any other person, and ask what business, product or service they would like to, and even yourself the question yourself, what product you would like there, but that nobody thought it could create or sell.
Something with high demand, but for the market which still exists
Ask what products or services most demanded by today’s consumers, but for which there is still the market, i.e., for which demand is still not being met.
Research the market, look what products or services most requested by consumers, analyzes statistics, identify needs, tastes and preferences, check with family, friends or acquaintances, etc.
Something with high demand in the future
Ask yourself what are the products or services that may have a high future demand by consumers.
Research the market, project in the future, analyze trends, expected changes ahead, trying to decipher what might be the needs, tastes and preferences in the future, special attention to adolescents and looks to the future through their eyes.
Something to offer others, but you could do better
Think of products or services offered by others, but you could do better, especially products that meet people’s basic needs.
For example, it could be a product that makes the competition, but you’re sure you could produce a higher quality. Or, for example, a service offered by the competition, but you’re sure you could provide it more efficiently and at a lower price up.
Make brainstorming and surveys
It brings together a group of people and has a rain-way, i.e. you go offering each business ideas you can think of at the moment. But conducts surveys to family, friends, acquaintances or anyone in the street.
In your surveys asked what they consider profitable business today, why would that business, what businesses they would like to, what business they think they could succeed today, what business they think they could succeed in the near future, and so on.
Looking for ideas that others have had
Finally, to find business ideas, find good ideas that others have developed, and then take them as reference or inspiration to develop your own ideas. Or, if possible, join with the people own the ideas.
Look for these good ideas on the Internet, portals, websites and blogs dedicated to entrepreneurs, in magazines or journals in business, business incubators, assists and join associations, communities or entrepreneurs or business clubs, etc.
Jeans are a garment for mass use and high turnover, especially women, who before moving on to take the jeans brand when buying a normally fixed in the quality of the material, in the model , and how well you can get it.
As a profitable business idea is to package and sell the jeans for women, in this article see a summary on how to implement this idea of business, without having its own garage or a shop of their own.
First you must determine the brand that will have your jeans, which should be formed by an attractive name, and be consistent with the style of jeans; an alternative is to put a name as a trademark unusual woman.
Once you have determined your brand jean, you determine the style and design they have, for which there is no need to hire the services of a designer, but it is a task that you yourself can do.
This requires you to make a small market survey, go to the mall, and investigate and analyze the different brands available on the market, paying special attention to brands.
Once you’ve made your little research, you should buy some jeans that you can serve as reference for the design of your brand.
The next step is to hire a model that you design the pattern of the jeans, which will serve to cut the fabric.
This model must take the jeans you bought, and say what you want to change or add as to what the design is concerned.
Once you have the molds of your jeans, you must purchase the inputs needed to design your samples, approximately 6 samples with different models could be enough to start.
Some of the inputs they need for the design of the samples Denim fabric, buttons, rivets, zippers, and internal and external tags.
The amount of material and supplies to design your signs, and even places where you can buy is information that you can provide the modeler.
As mentioned earlier, to implement this business need not have its own workshop, but you can send the jeans to make external shop dressmaking.
Once you’ve chosen a good workshop, you will need to come to it with the forms you have designed the models and the inputs needed to prepare the samples.
Then you must provide workshop makers specifications necessary for you. To design the jeans as you want them, for which you may need to also hand these jeans that you bought and said that they want to change or add.
As mentioned, this business does not need to have a shop to sell your own jeans, but you can work with business brokers, or businesses such as shops, bazaars, galleries, etc. To whom he sells the products to wholesale, and then have them sell them to the public.
As the next step, once you count on your samples is to find these businesses intermediaries, which should arrive with your samples and offer to sell jeans, and get you to place orders.
For this task you can hire one or more vendors that already have experience in this business model, or already have a customer base, although it is a task that at first you can make yourself.
Place a new brand in the market can be a difficult task, so you could start offering to sell your products on consignment, and then start selling the credit and cash, if your jeans are of good quality, you should not have problems taking orders.
Once you have enough orders, you must purchase the necessary inputs for the production of jeans, and then send them to make the external workshop dressmaking, as you did with the samples.
As for marketing, an effective alternative and low cost is to promote your products via the Internet, for example, creating a website where you can showcase your brand, and then promote your brand through online ads.
But the best way to promote a brand is through word of mouth, for which, simply create a good quality product, which involves designing a garment that has inputs first, and have models that are attractive and to fashion.
If your jeans are of good quality, little by little you will receive more orders, while you go looking for new markets and launching new models.