7 Golden Rules of Starting a New Business

What are the golden rules of starting a new business? Or rather, the golden rules of succeeding with a new business?

Anyone who is planning to start a new business – be it startups or business owners who are planning to exit a business and start a new one, go through the same dilemma. What business to venture into? How to choose the right investment? What are the chances of success…?

There is no hard and fast rulebook for starting and succeeding in a new business or everyone who started a new business would have succeeded in it. Every business has its own strengths, weaknesses, opportunities and threats. But there are some fundamental principles that help you lay a strong foundation for a new business and help it grow into a flourishing venture.

Do what suits you best

If you are a start up, choose a business venture that excites you; something which you love doing. Never choose a venture only by its financial possibilities. There is no fun in building up something which you don’t enjoy. If you don’t like what you are doing and do it only because you think it offers better possibilities of growth, then success, even if it comes your way, will be temporary or unfulfilled.

If you are a business owner and you are looking to diversify, choose a venture that synergies with your current one. This will not only help you be in a stronger position with better business knowledge of your industry, you will also enjoy your new venture as a fresh area of growth. For instance, if your business deals with supplying food materials, you can explore areas in processed foods or food products.

Fulfill a need

Fulfilling an existing demand is always safer than creating a new demand. It is one golden rule that always works for new businesses that do not have the financial muscle to start a farm fresh new concept and convince prospects that they do need what you want to sell to them. It is safer to venture into a business which produces products and services that fulfills a need which customers know they have.

But remember to identify the USP (Unique Selling Proposition) of your product/service to make it stand out from the crowd of competitors. Once you yourself are convinced about your product/service, you will be able to convince your customers to buy from as opposed to your competitors.

Are the margins healthy?

The growth possibilities are always better in businesses where you can have a healthy gross profit margin. If the difference between your cost price and selling price is narrow, you will not have much left to plan expansion, hire more people, promote your business or save for reserves. Therefore, choose a business that offers a better possibility of profits.

Give the right picture

One golden rule that many start ups and new businesses give short consideration to is promising more than what they can deliver. Don’t oversell your products or services by promising to your customers something you can’t deliver. It is always better to beat expectations by providing a better-than-expected product than handling disappointed customers who expected more than what they received. Be truthful about your products and true to your buyers.

Business plan is a must

Before jumping into a business, create a well-detailed business plan which will include profit/loss forecast, cash flow analysis and break-even analysis. Creating a business plan will help you analyze how much your start-up costs will be, what your cash flow requirements are and what your marketing strategy will be. Once you have a well-laid out business plan, it will be convenient for you to work your way up, set your targets and plan your growth.

Keep all agreements in hard copy writing for your records

Keep all your contracts and agreements in hard copy. These include contracts detailing the sale of goods, rental agreements, paperwork regarding purchase orders, and storage agreements. Don’t rely on verbal agreements. Business is business, and you will regret it if you do not document everything.

Remember to keep a backup of all your records, because if you store everything in on one computer hard drive without regular off-site backups, you are creating a recipe for failure. One hard disk crash can be disastrous. Don’t take shortcuts when it comes to keeping records and agreements in safe and secure hard copy and backups.

Seek professional help from CEO clubs

It is a good idea to seek professional help from experienced people who have rich experiences in starting and succeeding in new businesses. Join a CEO club where other CEOs from non-competing industries can properly guide you on how to go about starting your new business and at the same time handling the current business successfully. A CEO association can also help you create an effective business plan and offer you practical suggestions.

Starting a New Business – Tips For All New Entrepreneurs

You have decided on starting a new business to fulfill a long cherished dream.

You wish to be Your own Boss and make your own decisions and earn more money. By starting a new business you hope to get a sense of accomplishment and pride which would not be possible when you work for a Boss. This is great but to fulfill your dream there are certain very essential steps you should take and if done systematically, you will certainly reap the rewards for your efforts.

Self Confidence:

The main foundation for success is self-confidence. People with self confidence achieve success much faster than others. They also inspire confidence in their colleagues, subordinates and their customers. Self confident entrepreneurs are willing to take risks and go the extra mile to break new ground or achieve success. You must be confident that you will succeed and that failure is not an option. Build your self-confidence.

Choosing the Right Business:

What is the nature of the business you propose to start? You have to identify the products for which there is a need and which you will be happy with. It does not matter even if there is a similar business in town but what you have to find out before starting a new business is whether there is space for additional business. A market survey will help you make the correct decision.

Location:

Location is another important factor you must consider when starting a new business. Even with the right products a new business cannot survive unless it is located in the right place with easy access and parking facilities. A new business has to survive, beat the competition and succeed in a competitive environment.

Goals:

Once you have decided to start a business your first step is to set your goals on running a successful business. The nature of the business you wish to do. The amount of money you can invest and the returns you hope to get. Will your spouse be participating in the business or working in regular employment. Set you goal so that they are attainable.

Business Plan:

Prepare a Plan as to what strategies you propose to adopt to achieve your goals. If you are not capable of preparing a plan, obtain the services of a consultant or a friend who is running a successful business. This should include cash flow and break even analysis. Unless you have a proper plan before starting you are bound to loose your way somewhere down the line and adopt survival strategies such as obtaining loans on higher interests or mortgaging your business.

Knowledge and Skills:

When starting a new business it is certainly advantageous to possess some knowledge about your new business or some working experience in a similar business. If you do not possess sufficient knowledge and skills, you can always employ someone who has these skills but this should not deter you from starting your business. With determination and effort you can always learn as you go along.

Promote Your Business:

Many new entrepreneurs spend substantial amounts of money to start a business but hesitate to spend money in advertising and promoting their business. People should be made aware that a new business has opened in town. Advertisements in the local newspapers and the distribution of flyers and brochures will create awareness and bring in customers. A website that is constantly updated will certainly be very helpful.

Conclusion:

Once you have achieved your immediate goal of starting a new business, you have to get a steady stream of customers and ensure that they have a great experience in doing business with you. As Jeff Bezos the founder of Amazon.com says “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”

How to Start a New Business – What You Really Need to Know

I’m confused by the question. Are you hoping to find a mentor that will come beside you and show you exactly what to do to start a new business? Maybe you’re looking for a business opportunity that comes with some clear instructions and/or a mentor to guide you along?

I have started a number of new businesses through the years, so perhaps I can share with you some insight as to how you can also start a new business yourself. Some businesses you can spend very little to get started, while others will cost tens of thousands.

How much money are you willing to invest? This is a fair question. If you are hoping to find a business that makes you a living, chances are you will need to invest some money. You may not want to hear that, but you know it’s the truth. Lets come back to this later and see if there are new business opportunities that require less up front investment.
A new business requires your time. Sure you are going to find a number of opportunities that will promise a few hours a week of your time, but if you really want to start a new business that will grow, and grow strong, you will need to invest your time to build a strong foundation. Try to get around this and your business will fail.
Who are your customers? Do you want to start a new business that you love, of course! But if there is a limited client base, I don’t recommend it? Or, do you want a new business that has millions of client potential? Simply asked, do you want a business that makes a little money or a lot of money?

You can tell I am guiding you down a specific road can’t you? Let me ask you this question… Do you think that every sales person selling products and services, love and believe in their product or service? They should.

Years ago I worked at a tool and die plant. I walked into the office one day and heard a hardy laugh to my left. Ben was just off the phone and couldn’t contain himself. He said, “I just got off the phone with a guy who was telling me that I really need his product. I asked him what company he worked for and he couldn’t remember.” Everyone needs to start somewhere, you can bet the fellow found the company name before his next call.

When starting a new business, you better believe in your company, and proud to put your name on it. Let that sink in. There is a lot of junk, and it doesn’t take much to spot them. Cash images in the page header, fast and beautiful cars… These businesses are working on your emotions and greed. I’m certainly not against the finer things in life, but if that is the foundation of your business, it is going to fail.

If flashy websites are what it takes to get you to sign up, then flashy websites will be what you have to use to sell to the next person. Be careful.

If you really want to know how to start a new business, you first need to have a business to start. So lets look at that.

I grew up in the construction industry. My father and brothers were all into home building, and on the side before I went full time, I designed house plans. I later also went into home building and built a number of million dollar homes on the Lake Michigan shoreline.

Along with these businesses came employees, liability insurance and huge overhead costs. There is always that occasional unhappy customer that doesn’t pay, and quit frankly, the thing you were passionate about, is now your worst nightmare. But you know what? That is part of business.

Or is it? Is there another way to start a new business without all these added expenses? Yes!

Your question was, how to start a new business. So that is what I am answering. Do you really want to sell health products or cell phone gadgets? People selling health products do not really care or care as much about or want to sell health products. Not really. They want to sell the system, that is where they make their money… The system.

The rich are not interested in buying and selling health products or cell phones. They are interested in Real Estate, stocks, bonds and other money leveraging commodities. Systems.

Internet marketing is where new business owners should begin their search. These systems typically offer residual income and other profit making avenues, and without all the overhead.

With CarbonCopyPRO you will have a mentor come along side you and help you every step of the way, and to your success. Click here: [http://besthomebusinessopportunity.us] to learn more.

Steve Nyhof has been a world traveler, entrepreneur and an active business owner for many years. With an architectural back-ground, Steve has designed thousands of house plans and built million dollar homes. Steve is currently enjoying the opportunities and rewards of Internet marketing and copy-writing.