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What is important to know before starting your business from scratch in 2020

Before you start your business, you need to be mentally prepared. After all, the success of an entrepreneur depends not so much on the ideas chosen, but on the ability to overcome emerging difficulties. And they will definitely be there. If you are going to open your own business from scratch, try to honestly answer yourself 5 questions.

❶. “Do I have strong nerves?”

In hired work, problems are solved by the manager. You can get tips and support from experienced colleagues. An entrepreneur needs to overcome obstacles on his own: resolve conflicts with clients (employees, suppliers), look for additional sources of financing, prove his case to the tax office and other government agencies.

IMPORTANT. Stress resistance is a mandatory quality for starting your own business from scratch.

❷. “Why do I want to open my own business?”

Some motives help an entrepreneur develop, while others inevitably lead to failure. You cannot make a decision on emotions and in a hurry. The table below will help you determine when you should really open your business.

Table 1 “The right start of a business - when you can and where to start”

❸. “Can I offer a better solution than what is on the market?”

Before starting your business, analyze the offers of potential competitors. You have to give the market something more. For example, provide services at a more professional level, sell goods cheaper, or offer convenient delivery conditions. Otherwise, you will go broke within the first year after opening.

❹. “What’s a bad case scenario?”

Even before starting your own business, take off your rose-colored glasses and calculate the risks. Here are examples of potential problems that arise for those who decide to open a business:

• the state will increase taxes or introduce a new bureaucratic procedure (licensing, certification, control);
• wholesale suppliers will raise prices for products or raw materials, the landlord will increase the payment for the premises;
• the product will not be in demand on the market;
• a strong and experienced competitor will appear in the region;
• the exchange rate of the national currency will fall sharply.

In fact, there are much more real risks. Therefore, it is important for a novice entrepreneur to prepare psychologically and set aside some money for a “rainy day.”

❺. “What am I really good at?”

It is better to create a business in an area that is familiar to you. That is, “to be in the know.” Then you can easily calculate risks, immediately notice and correct mistakes, and quickly make useful contacts.

Advice. Financial literature will help beginners prepare psychologically for starting their own business. In particular, the following books: Robert Kiyosaki “Before You Start Your Business”, Cal Newport “Stop Dreaming, Get Started!”, Napoleon Hill “Think and Grow Rich!”.

Small Business Financing

Creating a small business from scratch involves many steps: registration with the tax police, preparation of all kinds of legal documents, and the like. A lot of organizational work awaits you. But the most important issue was and remains the issue of financing small businesses.

Money is needed to bring the business plan to life and for its subsequent promotion. At first, all the money you earn will go towards the further development of your business, so don’t expect to be reimbursed for your initial financial costs.

Many beginning businessmen lose their business due to lack of finance; to prevent this from happening, it is better to immediately apply to the bank for a loan for small business development . But do not forget that a loan is not a gift from a kind investor, and it will have to be repaid, plus interest will be added to the loan amount.

In addition to a bank loan, there is another way to get money to start a small business. Contact investors. But in this case, you will not be a full-fledged and sole owner of the business. You will regularly have to pay dividends to investors, and for this you need your business to prosper and not be unprofitable, which will not be easy to achieve at first.

How to start your own business - practical step-by-step instructions for a novice businessman

In this section of the article you will find detailed recommendations on how to open your business from scratch. If you take each step responsibly, you can avoid many mistakes. Unfortunately, beginners often ignore the listed points, so they go broke already at the initial stage.

Step 1. Choosing a specific niche

Routine duties in hired work can be performed while in a state of deep despondency and apathy. When starting your own business, this approach does not work. Ideally, you should be “on fire” at the mere thought of developing the project. Only then will you not give up in difficult moments.

There is already an article on the blog about what business to start. When choosing an idea for starting a business, consider not only your personal interests, but also your current knowledge, skills, and professional experience. Let's say you know how to write correctly, search for information on the Internet, and explain complex things in simple words. Then you better open a business providing copywriting services.

Or, for example, you often buy goods on Chinese online sites, you know where to get quality items at low prices, and you constantly order something for friends and acquaintances. Then try opening your own online trading business.

You will find ideas on how to make money for girls and women in