Many of us might be doing a job and would have got fed-up and wanted to start new business. Some of you would have already started business, but was not successful and finally would have closed it and lost money. This happens mainly by choosing a business that is not suitable for you. I would be sharing you 5 simple steps on how to choose the business suitable for you.
Is planning necessary for business?
Many individuals would have started the business in hurry and would have lost money. Some would continue to incur loss over a period of time hoping that it would turn to positive at later point of time. Hence planning is necessary before you choose a best business suitable for you.
5 Simple steps to choose the business suitable for you
1) What are your goals and what you want achieve?
You should know what your goals are and what you want to achieve by doing a business. The reason could be earning money, providing employment opportunities or gaining a brand image. Your goal would provide direction to your path. If your goal is to provide employment opportunities, you should choose less expensive products or services so that you can employ more people. If your goal is to gain brand image, you need to put lot of effort and money to gain the image in your location or country. I personally wanted to make money and decided it as my first goal and creating brand as second goal.
2) Choose your area of interest: Entrepreneurs fails because they might be doing something which they are not interested. They would have just thought of earning money and would have chosen the area. In the process, though they may make money in initial stages of business, however it would not last for long time. Pick-up a business in the area you are interested. A writer, who has written a murder story for a novel, has not really killed someone to write the book. You should be having interest in the particular you are choosing and need not have experience.
When I wanted to do small business, I picked-up a piece of paper and started writing my area of interests. I can’t believe that I could list down more than 40 ideas. It includes making money online Mza Business Directory, Business Seminars/ workshop where I use power of direct marketing, Enterprise Development Selling my services through social networking sites like Facebook etc.
3) Do research on your products or services which you want to offer
The list prepared by you about your area of interests could be big. However you need to pick-up each item and start re-searching about the business idea. You can do Google search on such business ideas. What is your product’s demand in market, who is your supplier, what is the level of competition, how profitable your business etc.
When I started searching, I felt there is heavy competition in majority of areas where I have interest. When I read reviews about the business ideas I want to do, it required full time attention. However my aim was to do part-time and spend few hours in a day and make more money. Hard work pays I really enjoy helping you with your business Idea.
4) Short list your interests by eliminating a few of them
Short list your listed items by eliminating unnecessary or less interest items. Make fewer options to choose. It can be based on feasibility of business or competition or the investment involved etc. Means now you are able to pick-up few business ideas which suits your interest and where it is feasible and where you can afford to invest in such business.
Failed to choose, start again
If you have failed to choose from the shortlisted business ideas, start the process all over again. Throw all your ideas in dust bin and restart your thinking process.
5) Finally choose a business ideas that suits you
Finally, among the 3 to 5 business ideas you have short listed, pick-up one which you finally wanted to do.
From the 5 ideas, I have picked-up Business advisor and making money through blog to start with. As a Business advisor and creator of a business blog, I am able to full-fill my dream of making money online by working few hours in a day. The success has not come in few months. I worked for almost 1 year with a detailed plan and spent sleepless nights and I am able to enjoy the fruits now. Someone asks me to present about my business or how I achieved my success in this, I can talk or write non-stop for next 5 hours Lillian M and Associates Biz Chat.
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I have seen it defined as consistently achieving your pre-determined goals. Others have said it’s your level of “grit” or ability to fail consistently without losing your motivation or giving up from self-doubt. Your business goals and dreams are unique to you. While the object of success is different for every person, we have been able to determine the characteristics that are shared by those who have found success and fulfillment, as they define it.
The industries and pursuits of successful people are very diverse, so mimicking their actual day-to-day behavior is not always a true model of how to get what you want (unless you’re trying to succeed at the same thing they are).
Watching the actions of successful business people reveals their mindset that motivates them and, more importantly, gives them the perseverance and consistency to take the actions needed every day to achieve what they dream. This is a humbling reminder that growing your business is more than just knowing what to do, or finding out the secret technique or method that will make you more money.
While that helps in choosing your strategy and making the execution easier, the reality is that anyone with a strong enough success mindset will have the attributes needed to find out what to do, commit to it, and then get to work through thick and thin, changing their course as needed until they’ve realize their goal.
Confidence in your dream and your abilities
How strongly do you believe in your company’s potential? How strongly do you believe that you have the knowledge and skills necessary to pull it off? This is self-confidence. Entrepreneurs who don’t fully believe in themselves are more likely to quit, or make excuses that keep them from trying in the first place.
Part of confidence comes from experience. After all, if you’ve made money in business in the past, it’s not too hard to see yourself doing it again, or more of it. When you see your hunches pay off, you’ll learn to trust your gut even more.
Part of confidence is knowing that you are probably going to run into challenges and fail at a few things along the way. It means you can handle setbacks without questioning your own ability. There will always, I repeat, always be setbacks. The difference is that a confident entrepreneur knows he can figure out what to do when the time comes and overcome them. My point here is that when things don’t work out the way you planned, it does not mean that you are personally lacking in some way. The point is to achieve your goal, not to have a flawless plan.
The sharpest entrepreneurs are continually learning from whatever source presents itself. This means getting expert knowledge in their field and learning how to run a business in general. But it also means listening along the way for ideas that you can implement directly in new or current projects.
It doesn’t matter who the ideas come from. Constantly look outside yourself for new ideas and be flexible. After all, there is no one right way to run your business, and copying your competitors exactly is more of an exercise in flattery than a strategy for success.
Your results are also a source of learning if you’ll listen to them. This applies to both successes and failures. If you succeed at something, it’s not because you’re invincible-it’s because you took certain actions that produced a certain result. Same goes for failures.
Focus more on actions and results and what they can teach you through trial and error, rather than making things personal.
The most persistent entrepreneur will usually win. There are plenty of talented, highly-intelligent, and educated people out there. Why aren’t they all successful?
My guess would be their mindset. Perhaps they don’t believe they can achieve what they want, or set their sights low to avoid the risk of failure and pain. We can learn a lot from entrepreneurs like Henry Ford-a man of average intelligence who surrounded himself with the very best people. His job was to consider their input and make decisions accordingly. People look to the leader to press forward-that’s you!
So even if you don’t currently have the know-how or the funds (or whatever you think is holding you back) to achieve your dream right now, know that you will eventually if you continue to make proactive efforts towards your goal. It’s just a matter of time!
Ask any fighter and he’ll tell you that focus and concentration are crucial. Would you want to get distracted by shiny objects in the crowd if you were in the middle of a heavyweight battle? You’d probably get your clock cleaned, or at least fail to be effective at attacking.
Why would your business be any less important? Every day, you will have a ton of information, thoughts, and cries for your attention coming at you. The average person comes in contact with as many as 2,000 advertising messages per day, for example.
How well do you focus on your goals? Do you review them often? Do you make plans for their achievement, and revise them when they don’t work as well as you thought?
At any given hour of your workday, ask yourself, “What am I doing right now, and is it helping me achieve my goal or is it busy work, a distraction, or something I could delegate?”
The topics of confidence and self-esteem as well as mindfulness and concentration are not only fascinating studies in self-knowledge. They can help you make money. They can help you grow your business, and find success.
To apply this, take a look at your own mindset lately. Has it been conducive to success, or do you find yourself getting in your own way? The process of developing the right mindset is not as simple as a one-time task list. It’s based on setting the habit of consistently paying attention to your thoughts and feelings, which reveal your higher thought patterns and beliefs.
Your feedback helps.
I hope you enjoy it! In today’s main essay I write about two questions that the vast majority of entrepreneurs fail to ask themselves. I want to make sure you DO ask these questions, and do so often.
“If you would not be forgotten as soon as you are dead, either write something worth reading or do things worth writing” ~ Benjamin Franklin
The Two Questions Most Entrepreneurs Forget to Ask
Once they launch their companies, most entrepreneurs fall into a very dangerous trap. What happens is that they get very myopic; they get so close to their businesses that they fail to see the bigger picture. So, they run their businesses on a day-to-day basis, constantly fighting fires and striving to squeak out a little more profit each year than they did the year before.
Conversely, the most successful entrepreneurs ask two key questions that others don’t. The first question they ask is “What is the end game?” Then they ask sub-questions such as: Is my goal to run this company until I die? Do I want to eventually sell my company? Or do I want pass it down to family members?
It turns out that the most successful entrepreneurs are the ones who build their companies with the eventual goal of selling them. Why? Because this is where the big bucks are. In fact, research shows that 80% of pentamillionaires (those with a net worth of R5 million or more) are entrepreneurs who started and sold their companies.
Think about it this way: the work required to start and grow a company from $0 to perhaps R10 million is MUCH more valuable than the work required to grow a company from R10 million to R100 million.
With regards to the latter, there’s no shortage of corporate executives who have the skill sets to grow existing brands and companies. But there are few people out there (the ultra successful entrepreneurs) who have the ability to build a company from scratch to the point that a larger corporation wants to buy it.
The second key question that the most successful entrepreneurs ask is “How do I build VALUE that multiple acquirers would want?”
Building value is different than simply running a business. When you simply run a business, typically your goals are to keep the lights on and earn a profit. When seeking to build value, you set different goals.
For example, Themba recently announced that it was acquiring Tiny Prints for R333 MILLION. In making this acquisition, what did Themba value? Well, it valued Tiny Prints’ revenues, customer base, marketing skills, intellectual property and operational processes among other things.
Importantly, Themba did NOT value Tiny Prints’ profitability. In fact, Tiny Prints’ EBITDA (earnings before interest, taxes, depreciation and amortization) was a miniscule 2-3% of its revenues.
So, in addition to thinking about your end game, create a list of the factors that multiple potential acquirers would want to see in your company. Maybe it’s significant revenues. Maybe it’s a high profit margin. Maybe it’s unique products or intellectual property. Etc.
And importantly, once you have this list, make sure you integrate it into your daily, weekly, monthly, quarterly and annual action plans. And rather than looking back each quarter and simply thinking about how much revenues and/or profits you generated, consider how much VALUE you built and how much you progressed toward reaching your end goal
The general Codes of Good Practice published under the Broad-Based Black Economic Empowerment Act, 2003 was gazetted by Government on 11 October 2013 effective from 11 October 2014.
The general Codes set out the details as to how businesses and other organisations operating in South Africa must measure their levels of broad-based black economic empowerment (BBBEE). Draft revised Codes were published for comment in October 2012. The Department of Trade & Industry (DTI) has now finalised the revised Codes which will be published in the Government Gazette on 11 October 2013.
At the BBBEE Summit held this past week by the DTI, the key principles of the revised Codes were discussed.
The revised Codes will provide for a transitional period of 12 months.
The number of elements on which companies will be scored has been reduced to five from seven. These are: ownership, management control, skills development, enterprise and supplier development and socio-economic development
Increased focus will be placed on skills development and enterprise and supplier development.
Sub-minimum targets have been set for parts of the ownership, skills development and enterprise and supplier development scorecards. These elements of BBBEE are considered to be priority elements. In this regard –
Businesses will have to score 40% of the targets set for net value, which is one of the indicators on the ownership scorecard. Net value is the extent to which acquisition debt is reduced over time, so that black shareholders’ ownership interests are not subject to debt.
40% of the skills development expenditure targets must be met.
On the enterprise and supplier development scorecard, 40% of the preferential procurement and 40% of the enterprise and supplier development targets must be met.
The consequence of not complying with the sub-minimum requirements is that the measured enterprise will drop one BBBEE level (as opposed to two as was proposed in the draft revised Codes).
Ownership will now count for 25 points on the scorecard. It presently counts for 20 points with the possibility of 3 bonus points.
People who will now qualify as “new entrants” will be people who hold total equity interests of less than R50 million (previously R20 million). Participation by new entrants is now an indicator that forms part of the principal ownership scorecard. Previously it was something for which only bonus points could be scored.
Businesses and other organisations which are measured in terms of sector-specific Codes (which apply in each of the property, tourism, chartered accountancy, construction, agricultural, transport, forestry, ICT, and financial sectors) will continue to be measured in terms of those sector-specific Codes. The sector Codes will be aligned with the new revised Codes soon.
The threshold for exempted micro-enterprises which are deemed to be Level 4 contributors to BBBEE will increase to R10 million from R5million. The threshold for Qualifying Small Enterprises will increase to R50 million from R35 million.
All companies except EME’s will be measured on all five elements.
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