This content is for people with little management knowledge, but who want to open their business.

At the end of this content you will have a well-defined view of the main reasons why people take risks in the business world and the main factors that lead to failure and success.

Let's contextualize the reality of many entrepreneurs:

1st
. - How is born out your the desire to open your own business?

Dissatisfaction, this is the main reason why people become owners of their own businesses. The list is extensive and therefore it would not be possible to list everyone, but see if one of your reasons are on follow list:

  • Your job is very stressful;
    • He sees no prospect of professional growth;
    • He does not earn enough for the work he does;
    • You need to make more money as soon as possible;
    • He doesn't like taking orders from his boss and / or superiors;
    • You have a talent that can bring you more income than your current job;

    There are dozens of reasons, and you know yours.

    2nd. - What are the most common mistakes made by beginners?

    Believing that the biggest success factor of your business is related to having the best product or service on the market. Whenever you think about your business, the products and services that will be offered to the market immediately come to mind. Of course, it is very important and fundamental to have good products and services to compete and win customers, the problem is when the search for the perfect product and service is above making a profit, except in cases where the main objective is not profit.

    Which business do you think would be most successful?

    • Business 1: It has the best products and services and, consequently, low return margins.
    • Business 2: It has a product similar to business 1, although slightly lower but with better profit margins.

    Taking into account that the main objective of most businesses is to generate profit, which business would be the best choice?

    That to be successful it is enough to know the industry well, to know how to produce the product and perform the services. Yes, it is clear that being good at these requirements is fundamental, but what nobody tells you is that in addition to that, you will need other fundamental knowledge and skills that are mainly linked to business management.

    3rd. - What basic knowledge is needed for success?

    • Financial math;
    • Interest Calculation
    • Percentage Calculation (Percentage)
    • Present Value x Future Value

    4th. - When is the right time to kick-start?

    It is clear that there are several factors to consider, but perhaps the worst scenario will be when you have to choose between staying or leaving a job that already has some comfort. It is always recommended to have a good business implementation strategy and to follow some steps

    4.1 Business Plan, the preparation and especially qualified analysis of this document is essential, even to be able to give up on a bad business that at first sight seemed good.

    4.2 Market analysis, knowing the market and other competitors is very important. ("If you know the enemy and you know yourself, you need not fear the outcome of a hundred battles." Sun Tzu).

    4.3 Financial and intellectual capital, apparently every business requires investment of financial capital, which will bear the initial costs until billing begins and thus the entry of revenues. However, even with the left over of financial capital, a business can go bad, if the manager does not have enough knowledge to make the best decisions.

    • Cost Calculation;
    • Financial projection;
    • Box control/Cash Control;
    • Control of Accounts Payable and Receivable
    • Interpretation of performance indicators
    • Marketing
    • Business strategies
    • Negotiation