First steps in business - practical tips

Service Business

When taking the first steps in business, you need to learn about all the opportunities available on the market. Professional approach and reliable preparation will certainly facilitate the path to success. It is also worth finding out what problems entrepreneurs most often encounter. For this purpose, you can use the knowledge and guidance of experts.

A well-thought-out and meticulously planned business has a much greater chance of success than a spontaneously established company. You need to be prepared to start your own business.

A good idea is half the battle

The first steps in business are, above all, a good idea. Before starting a business, it is worth considering what consumers may really need in their everyday life and what it will be difficult for them to live without. These can be goods or services that they will be very happy to use. Innovative solutions have the potential and provide a much greater opportunity for development than the old, repeatedly duplicated business ideas. An example of this can be the "Mlekomat", a device that has recently appeared on the Polish market. Thanks to this simple-to-operate machine, the farm significantly increased the sale of its milk. The idea was simple - to give fresh milk to the inhabitants of the big city. As? By placing a vending machine in the center of the agglomeration, from which everyone can pour themselves fresh milk straight from the cow. Of course, for a fee.

By duplicating a business idea already existing on the market, the first steps in business will be easier, but you have to reckon with a lot of competition. Getting out of hundreds of similar companies is extremely difficult and time-consuming. It also significantly increases the costs in the initial period of the company's operation. Therefore, before starting your own business, it is worth thoroughly analyzing the market and finding a niche that can be managed.

First steps in business - creating a business plan

The first and most important thing to do if you want to run a business is to make a business plan. It is nothing more than a written specification of the expectations of a future entrepreneur, step-by-step planning of the company. Such a project is also a necessary requirement in institutions where funding can be obtained - commune office, labor office, bank. It should not be regarded as a purely formal requirement. The lack of an action plan is a simple path to entrepreneurial failure.

A good business plan should contain the necessary information, such as:

  • how the company will prosper (e.g. online sales, distribution),
  • on which market it will operate - industry and competition analysis,
  • how many employees will it have,
  • how new contractors will be acquired,
  • to which group of consumers and recipients the offer will be addressed,
  • how will the promotion of the company be carried out,
  • what market position is to be taken by the company in the first, second, third and subsequent years,
  • what will be the sources of financing the company (e.g. savings, loans, credits, subsidies)
  • what will the company earn and how much,
  • after what time the company will start to bring profits,
  • on what terms will the accounting be kept.

When drawing up a business plan, do not forget about how to sell goods or services and about the company's pricing policy. A specified action plan greatly facilitates the efficient management of the company.

target group

The first steps in business are good recognition of your future recipients. He must also know what their needs and financial possibilities are. Thanks to this, its products or services will be much more competitive.

Example: a clothing store for teenagers

  • target audience: girls and boys aged 13 to 19,
  • needs: fashionable look, famous brands, the latest youth collections, unique clothes, the desire to stand out from the crowd,
  • financial possibilities: lack of own income or limited resources, amounts of money determined by parents, average financial possibilities.

It is also worth remembering that depending on the age of recipients, their needs differ. A 60-year-old woman does not necessarily want to wear tight shorts and high heels. Therefore, it is important to establish in detail additional criteria for, for example, customer preferences.

Supervising expenses and beneficial solutions are the first steps in business

The biggest problem when it comes to starting a business seems to be money. Starting a business is the very moment when an entrepreneur is looking for capital. If he cannot find it at the bank (no creditworthiness), he uses his own funds or borrows from his family. The last way to raise money is the most beneficial for the novice entrepreneur. You don't have to pay off, sometimes horrendous interest and be afraid of losing your property.

When starting a business, it is worth going to the employment office. There are many forms of support for small business. From one-time allowances for the purchase of equipment for a company, through subsidies to the creation of new jobs, and ending with economic consulting. You can also use EU subsidies to support Polish entrepreneurship or simply go to specialized companies professionally dealing with business consulting. There you can get all the information that is extremely helpful in taking the first steps in entrepreneurship. According to a survey by the Central Statistical Office of Poland, about 60 percent of the business falls in the first year of running a business. companies. Another 40 percent. over the next two years. This proves that the capital for the start-up and operation of the company, in the first years of its existence, is extremely important and requires careful consideration.

However, money to buy goods is not everything. Beginning businessmen are faced with many risks related to the loss of financial liquidity. They include the so-called "The curse of the unpaid invoice." It is related to an invoice unpaid by the contractor for the service or sale of goods, and on which VAT should be paid. Thus the loss is double. Not only that the dishonest recipient is in arrears with payments, but you also have to add to this transaction by paying the due fee to the treasury. It is precisely for such an eventuality that you need to be financially secure. It's good to have specially set aside money so that you don't have to take out more loans. You can also use the services of factoring companies that specialize in collecting and paying invoice receivables.

The first steps in business are associated with considerable expenses. So, another issue is to minimize the costs associated with the functioning of the company. It is worth using cheaper, alternative methods of efficient management. Especially that the current market offers entrepreneurs a whole range of convenient solutions. They include online accounting, specialized computer programs tailored to the individual needs of the client, or the online financial analysis of the company. The latter service is extremely useful for people who are just taking their first steps in business, when their ability to analyze and use financial data is not yet so developed. When looking for money to start a company, it is definitely worth taking advantage of the funding. Both EU institutions as well as commune and city offices as well as labor offices have the opportunity to support young entrepreneurs. The money from these institutions is considerable, reaching the amount of up to PLN 50,000. zloty. To get them, you have to convince officials of your idea. This is what a business plan is for. The better it is written, the better the chances of getting a grant.

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Taxes and accounting - the first steps in business

When opening a business, you should choose the organizational and legal form. The method of taxation and the type of accounting will depend on it. Natural persons running a business can choose the most favorable form of taxation - flat-rate income tax, flat 19% income tax or income tax on general principles according to the scale.

Another issue is the way of keeping the accounts. There is a large number of accounting offices on the Polish market. Their work is always associated with additional costs for the company. The obligation to keep and store company documentation in accordance with the law forces entrepreneurs to use their services. This does not mean, however, that accounting must be kept in a specialized accounting office. Everyone can keep their own documentation, various types of computer programs and websites are used for this.

Business contacts

One of the key elements in business activity are business contacts. Without them, it is difficult to achieve anything. An entrepreneur who is just entering the market usually has no or little of them. It is worth spending some time on expanding your network of business relationships. Such contacts may be profitable in the future. The easiest and most proven way to find future business partners is the Internet and professional press. At present, many companies specializing in collecting data about entrepreneurs have also been established. You can get up-to-date telephone contact details from them to people from the industry, as well as ask for opinions about a given businessman.

Knowing the full specification of your future business and having a specific action plan, you can proceed to the implementation of your idea.