So, you decided to start your own business. In our time, a woman who has her own business is already common. And yet, where to start, so that the matter, as they say, "went"? What kind of field to choose, how to recruit the right people, and maybe even do everything yourself? .. How to decide on what to start with in business and will be discussed below.
To successfully start any business it is necessary to follow the rule of the "big five". These are the five points that must necessarily be present in your business: the importance for the client, a clear organization, competitive advantage, financial control, making a profit. This "formula for success" has long been withdrawn by American entrepreneurs, and there it has been used for many decades. In fact, nothing particularly complicated in this. The main thing is to decide and have enough internal forces and ambitions to continue and develop your business. And now about each of the points in detail.
Relevance for the client
Business exists to create values of various kinds. He uses raw materials and labor resources and increases their cost in any direction, turning them into products or services that are subsequently transferred to the client's property. Simply put, a business must offer something for which people are willing to pay.
For example, the most successful business was recognized by McDonald's. Why? He was the first in the world to create places where you could eat cheaper and faster, while away from home. The company built restaurants throughout America, not sparing money for advertising. Chefs recruited people to serve visitors according to strict rules: attractive appearance, ability to get along with the client, endurance. Customers rated this kind of service because they did not have to go home for lunch, which saved time. In addition, the service in restaurants McDonald's has always been at its best: there have never been rude to customers, were friendly even to the most demanding customers, and also especially able to please children. This was the policy of the leadership of McDonald's, which led to world renown and success of the case.
Any business and those who manage it, should create values for the buyer. In order to do this, there are almost innumerable ways, because the desires of people do not have limits. Business, however, is not able to serve all desires without exception (at least legally). Study the services and products presented in your city. What is missing and what is provided in abundance. Remember that the provision of services is always more profitable and cheap, but this requires certain skills, the selection of specialized personnel and equipment. If you have such a skill (for example, you are a good lawyer) - you can provide services of this kind. If you have the appropriate education, then there will be no problems with obtaining a license. So, the definition of the scope of its activities is the first thing to start with in business. Determined? We move on.
Clear Organization
In every case there must be a good organization! It must have goals and resources (personnel, material and financial values) to achieve its goals. Organize your future activities, according to a plan drawn up in advance. Drawing up a business plan is extremely important. Sometimes during its preparation and compilation, the businessman decides to change the scope of activities, since the plan shows the "survivability" of a particular business. If you can not draw up such a plan yourself - contact the professionals. At least, you will know in advance what to expect from your business and how to build further work.
You must monitor the implementation of all projects and their results. Each department must perform its functions accordingly. Before starting work, any employee should be aware of the tasks that serve the purposes of the organization . Management is responsible for the organization of the company. First of all, this requires the performance of work by other people - employees. Resources such as sales equipment, floor space and cash, however, also require an organizational approach.
An organization can be created through a structure . The general outline of the structure can be reflected in the company's Charter. There are, however, other structures to create an organization. For example, by using the financial structure through which the company organizes its cash flows. Sales managers can be grouped into teams by product type or by both factors simultaneously.
The success of a firm can be achieved through various means. Some prefer solid structures, an almost military approach with a strict hierarchy, clearly defined duties and official documents. Others use a more informal approach, giving people greater freedom of action and creating a less structured environment.
The very nature of business can determine how a rigid structure is necessary for a company. For example, small firms (with less than 50 employees) are often less structured than large firms. Industrial manufacturing companies, as a rule, have a more rigorous structure than those whose work is creative - in the field of advertising and entertainment.
Regardless of the degree of severity, the structure of the company is responsible for a good organization. Even many well-structured companies fall apart if management is unable to perform their tasks as needed. And even companies with a very "loose" structure will make a good profit if its management does its job properly.
The competitive advantage is the crown of the winner
To be successful in its niche market, the company must do something better than other market players. This in the future also provides the best competitive advantages. They can have only one aspect of a product or service, but buyers should appreciate it highly. For example, a company can achieve a competitive advantage by offering a wide range of products. Or low, compared to the rest, prices, or better quality, or excellent service. All this can not happen suddenly, but you need to strive for this, otherwise the business will wait for failure.
The manager makes a decision based on the fact that the company will experience competition in the market - this is inevitable. And you need to clearly imagine, determine the advantages of your company in front of the others. For example, despite advertising, no company can provide in practice the best quality and lowest prices at the same time - at least for a long period. You can offer the best in a certain price category, which by no means is the lowest in the market.
That management should decide whether the company will compete with others for price or quality. Then the company should be managed in such a way as to be competitive on the basis of certain factors that represent the competitive advantages of customers.
This implies that the company must provide visible benefits to its customers. Those who can afford to buy better quality products will buy them from you and at higher prices, and those who need a lower price are unlikely to aim at high quality goods. Buyers always take into account such factors, managers, unfortunately, not always.
Financial control
After you decide what your company will create values for the buyer, after organizing your business and strengthening your competitive advantages, you must take control of the financial side of your business. Under the latter is understood that finances should be managed by a firm hand and it is desirable that it is the hand of the head. Rather, it means that every leader should know the company's goals and set tasks that will move the company forward. You, of course, can hire an experienced financier, but be prepared for the fact that bypassing you will be conducted "shadow" accounting. Even if this does not happen, it will still not be easy for you to manage the business without having a complete idea of its place in the market.
Monitoring ensures good business manageability at any time, management is basically based on information. For example, each company needs financial control. Each firm has its own budget, so you can control the expenditure of your business. You should regularly receive information about how the funds are spent by different departments, how they turn around and multiply. Financial control is necessary to make sure that the company spends as much money as it really needs - no more, no less - for business development purposes.
Business consists of many processes, so you may have already heard about the control process. In this case, it is aimed at maintaining the quality of products, working to accept the necessary people and purchasing the necessary materials at a reasonable price. Control and related information gives the manager the opportunity to manage the company.
Receiving a profit
Business exists to "make money". Money earned in business can be calculated in several ways. Regardless of how they are calculated, enterprises should profit from their activities. If, for a certain period of time, the business gets more money from its activities than consumes it to realize it - it was a profitable period. If on the contrary - it's losses in business. You can not tolerate losses for a long time, because then you will be bankrupt.
The main purpose of the management is to get money from the company's activities. Regardless of how well you are able to do business, you should not allow excess of embezzlement over real profits. Regardless of what area you have to deal with in business, the main goal is profit.
Remember these five basic points before deciding where to start a business. Imagine this "big five" visually, because it underlies everything that the leader does. All areas of activity are united by a common goal - to translate these ideas into reality for the company and its customers.