Carry out an equally thorough assessment of your business idea. Write everything down, even if at this stage it’s just notes. The written word is easier to work with than thoughts, however clear and well ordered they may seem.
Here are the most important topics to consider: What are the skills of the proprietor(s)? What exactly is your product or service? What is your target market and what do they want? What do you offer that others do not? How are you going to tell your market what you offer? Who are your competitors? What are your plans for the next 3 to 5 years? How much money do you need to start and run your business? Draw up a Business Plan It is worth working hard on this even if you are going down the independent consultant route. Time spent now will stand you in good stead for the future. Think of your plan as a business CV writer. It’s not for the Bank (although they will certainly want to see something if you want to borrow money from them) it’s for you. Prepare a realistic cash flow projection Then one for a worst case scenario and one for a best. It is difficult to anticipate sales and income before you start but try. Then carefully record actual figures when they occur to help planning the next year. Tip - Take a weekend off once a year - find some peace and quiet, and carry out a thorough assessment of what you have achieved over the past year, what went right; what could have gone better; and then plan what you are going to do over the coming year. Research and preparation Talk to lots of people who are in self-employment (not necessarily in your field). Talk to banks, accountants, business advisors. Don’t be too proud to talk to people who’ve done it before. Read lots of books on business and self-employment. Research your target market and product/service area. Acquire the skills you may need. Tip It’s not usually a good idea to undercut your competitors prices. Customers will think you’re cheap and offer a poorer service. Price yourself realistically but towards the top end of the market. Support services Just about the biggest difference between working for a company and working for yourself (apart from who gets the money) is that when you’re on your own there is no-one to do all the nitty-gritty things no-one thinks about until they have to do them for themselves. Your PC breaks down, you’ve got to get yourself a screwdriver and anorak and fix it yourself, or pay someone else to do it for you. So, get your support team together: Bank manager. - Often surprisingly helpful and they’re all competing to get your business. Accountant. - find one that deals with your type and size of business. Get them to help you set up your books and finances then you can do much of the work yourself. If you turn up at the accountants once a year with a carrier bag full of receipts, crumpled invoices and a bag of mixed change, your accountant is likely to charge you a small fortune to sift through it all. Secretarial services. - If you cannot type or use a PC or are very busy/lazy. A business buddy. - It gets lonely on your own, so find someone else in business (preferably not yours) with whom you can exchange ideas, moans and celebrations.
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AuthorBen Wilson is author of Edu Blog, where primarily we will discuss famous books and their authors. Ben studied at Stanford University. He is a teacher of History in High School. Ben also writes book review for ThePaperGuide Platform. ArchivesCategories |