Starting a New Business

Starting and managing new business is a challenging task. It needs a lot of self motivation, encouragement, desire, self confidence and patience at the initial stage. An entrepreneur needs to conduct research and prepare a concrete plan for his business, topics to be considered including:


Executive summary

  1. Outline your overall business plan and highlight the important points.

Introduction of the company

  1. Provide a detailed description of the business nature and business goals.
  2. Give the details about the ownership of the business and its legal structure.
  3. Develop the vision statement and mission statement.

Product or service

  1. Detailed description of the products or services that you are offering.
  2. Describe the benefits of the products or services to the customers.

Market analysis

  1. Identify the target market, market size and location.
  2. Identify the customer needs.
  3. Identify the market trend, market preferences and market share.

Strategy and implementation

  1. Explain your marketing strategy and pricing strategy.
  2. List down the marketing tools that used to advertise your products or services.
  3. Indicate the strengths and advantages that you have over your competitors.
  4. List out the experiences, skills and knowledge that you can contribute to the business.

Web plan summary

  1. Identify the development cost of the website.
  2. Identify the contents of the website.
  3. List out the marketing strategies of the portal.
  4. Identify the benefits and usefulness of the portal to its customers.

Management team

  1. List out the management team members and their responsibilities.
  2. Describe the organization structure.
  3. Explain how the business will be managed on a daily basis.
  4. Discuss the hiring procedures.

Financial Analysis

  1. Identify the source and amount of initial equity.
  2. Develop an operating budget for the first three years.
  3. Develop the projected financial statements such as cash flows, income statement and balance sheet for first three years.
  4. Calculate the breakeven point for the business

Conclusion

  1. Summarize the overall business goals, objectives and strategies.
  2. Emphasize your commitment to succeed the business.

Quick checklist for a new businessman before starting a new business:

Background work

  1. Identify the business that you are interested
  2. Assess your strengths and weaknesses
  3. Identify business and personal goals
  4. Identify the available financial resources
  5. Identify the start-up cost
  6. Identify the business location
  7. Conduct market research
  8. Know your customers
  9. Know your competitors
  10. Identify the possible business risk
  11. Develop a comprehensive business plan

Necessary preparation for new business

  1. Register a business name
  2. Apply for business license
  3. Renovation for the business location
  4. Purchase of furniture and equipment
  5. Select a banker and accounting firm
  6. Apply for credit facility
  7. Print business cards
  8. Ensure all the legal rules and regulations are followed
  9. Set a business opening date

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