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 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