Most of the people want to have their own business, but it may be some of them know well how to get it started while the others do not know. They will imagine that it is very hard for them to do. Actually, there are a huge of things we have to concern about with starting planning our business. With this article, I would like to share some concepts regarding start planning your business primarily. Though there are so many things that can make you doubt about in doing your plan to start a business, it is just a bit thing you have to know about and keep in your mind for first planning your business. Thus, starting a business is true for three reasons, profits potential, market viability, and financing.
“Learn to pay if you want to earn, no any paid without earning,” I think. That is it, the profits from the business. The first thing we should keep in mind and clear about the profits potential in business we get started. Basically, there are three things to remember. First, we may know about that, a profit equation and it is simply as the revenues minus expenses then will be equal to profit or loss. It lets us know how much we can earn and we paid from running the business. Second, it may be a bit more complicated for a freshman in such as a kind of this field, which regards to risk award tradeoff or ratio. It results in a percentage. By review with the percentage, we can learn much more about how to grow our business at the time. Then it is to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. Finally, it would be the result we earn from the business that the highest risk the highest the profits potential.
The Market Viability is a way of business survival in the market, which related to setting the right targeted segment of the market. The market segment is important for a business to target customers. When we enter the right targeted market, our business opportunity is growing and market viability is alive too. For market viability, starting up a business has to do many things with this to make market research, marketing segmentation, competitors analyze, trial testing of product/services, etc. In addition, it allows us more criteria to analyze and set up our marketing plan and strategy for the business. Because there are more things to discuss this mater, so let us talk again in another article I will write and share soon in more detail about Market Viability.
Last but not less, in order to get started in doing business, the last thing we have to know is financing. Getting Financing is important to understand its role in the business and the business planning plays when looking at how to finance the venture. It is a bit higher level with financial knowledge. Simply we just have to know that getting financing is be able to analyze and decide if the particular venture within the investment parameters. When finance mater is in the control well then we can easily manage our business for growth.
In this article, it is just a brief description of my understanding of a kind of business planning. It is not yet a detail explanation or to do. I hope that it is short and simple for reading and get to the points easily. Before starting a business so that the business plan is very important for every people, and doing the business plan we have to consider primarily on those reasons for starting up the business. They are included, the profits potential, market viability, and getting financing. Then we should remember that the business plan is as much about learning what we should not to do as about learning what we should do.