If you are dreaming of becoming next Bill Gates or Mark Zuckerberg, sorry, you may leave this page now. If you are dreaming of having small fortunes and having quality life, OK, please stay on
Below are the 10 rules/tips for starting a SMALL business:
1. Drafting your business model realistically
When drafting a business model, please look around and find successful examples of that business model to study. There are two reasons if you can’t find any, you are either a super genius (in which no such business had been developed) or the business model can’t work in the real world. Choose whichever is more likely and be wise.
2. Don't use your own money for this business
In other words, use the concept of OPM (other people's money). You may loan from bank for starting a business with condition that you are 1000% sure that this business will success. Or since business is a very risky ventures, you may find investors to pump in the fund needed. Some of my friends using this way, finding investor for their photo studio business. Well, of course you need to discuss the profit sharing deal with the investor as well. The main advantage of this model is you don't risk any cents if thing doesn't turn out well.
3. You are the worker of this business
Hiring is expensive, you may consider to work for this business at least in the beginning stage. Once getting bigger or stable, you may consider to start hiring. Again, some people may hire consultant to build products or business, well, it doesn't always work. Consultant may turn out become CON-sultant or doesn't deliver the expected result.
4. Don't do something low value, please value your time
6. Sell not using just low price strategy, but focus on features as well
If you are selling by competing purely on low price, you will be soon selling at cost or below cost. Do you think you can compete with other giants purely on low price? No! So how? Please think of add extra value or features on your product, also at the same time convincingly explain to your clients why your high product/service price actually deliver a better value to them.
7. Know everything about $$
You must know how much total CAPEX and OPEX of running the business, including tax as well. Divide them into a total business days of your business, OK, that's the minimum profit you must make in a day, make a good record on it though. Rethink if it doesn't goes well.
8. Use new technologies in your business
Make a good use of technologies. Set-up website for your potential business for greater reach. If you are in ebook business, find affiliates to help you selling by giving them commission. Use cloud computing and mass data storage as well to lower the cost of entry for small business. etc. etc..
9. Treat your vendors/suppliers well
Good relationship may bring you benefit on better pricing or payment term from vendors/suppliers. You need these right? So treat your vendors as if they are your best customers.
10.Provide the best for your clients
Remember how mouth-to-mouth advertisement will bring good prospect to your business. All you got to do is providing good satisfaction of service/product that you sell to customer. Make sure it is the best from you. After that, clients will do the marketing for you. It doesn't cost you much to serve them right?
Just a guidance for you for having a small business and for your future good life prospect. Please share to your beloved family and friends. And also kindly please share any tips by adding comments.