Content

• Steps
• Advice
• Warning

Most business owners reveal that one of the toughest and most rewarding ways to make money is to start a business. To be a successful business owner, you need a lot of effort and dedication, and it also depends on personal qualities and business operations, which are common traits of successful business owners. These characteristics lie in the founding principles of the business in day-to-day operations as well as in decision-making. By following these instructions, you have the potential to successfully start a business or get your business back on track.

Steps

Part 1 of 3: Finding the right point of view

1. 

   Do what you know well. You should start your business in an area where you have experience. Experience can be either from a past job or a personal interest enough to develop into a career. Even if the business idea can theoretically be highly profitable, you shouldn't start a business without being dedicated to it. Profits are important, but they won't be enough to motivate you to arrive early every day and be motivated to grow.
   • For example, imagine that you have experience making coffee as a bartender or waiter and want to turn your passion for coffee into a small business. You understand this industry trait and are ready to apply your knowledge and emotions in your work.

2. 

   
   
   Start with a clear goal. Although business goals are often focused on money, most successful business owners don't start with the goal of making money. To build a business, you need to have a clear purpose in mind from the start. This purpose can be more intangible than money, such as giving back to society by creating jobs, solving problems you see every day, or pursuing a passion. This doesn't mean you shouldn't focus on profits, but just define your main goal to achieve your bigger goal.
   • For example, when you want to open a coffee shop, your goal is to serve each cup of quality coffee to your customers. In addition, the coffee shop is also a place for people to meet and spend time with friends.

3. 

   
   
   Understand your customers. Before you get started, take the time to research the market and get to know your customers and industry. The US Small Business Council provides a wealth of information about services and products that are in great demand. You should also think about who is going to buy your product or service, and figure out how best to attract this audience.
   • To a coffee shop, ask yourself: am I attracting "coffee connoisseurs", but who are not afraid to wait five minutes to enjoy it? Or do I focus on people who are on their way to work and want to quickly have coffee to take away? Or both? Understanding your prospects will help you to serve them "better".

4. 

   
   
   Determine the first step instead of the destination. You should adopt a business model that can operate quickly with low capital. Too many small businesses start with goals that require capital and large investors. However, a successful business is a business model that can be applied to businesses of all sizes. This proves to the potential investor that your idea is a useful go-to, and enhances investment adoption (if that's what you're looking for).
   • For example, you might want to start a large business that supplies, imports, processes, and packages coffee beans to market or serve to customers at a coffee shop. Instead of looking for a large investment to buy entire equipment, you should start with a small coffee shop, then supply and import coffee, and then move on to build your own brand.

5. 

   Form a support network. One of the key factors that contribute to a successful business is overcoming the ego and seeking help. You need advice from a group of business associates or other professionals who share your goals. Communicate with people who are knowledgeable and successful, and embrace their ideas and enthusiasm.
   • Alternatively, you can also search for small business ideas online; The internet is full of information and you should only access it from reputable sources.

6. 

   Find a mentor. This is someone who has been or is successfully running his own business. For example, you might find family members or friends who are successful in business. This mentor will help you from learning how to manage your employees to properly pay taxes. Their experience comes from reality, so they are more likely to help you out than anyone else.
   • Mentors may not run the same business as you, but they can still be of great help. In the case of opening a coffee shop, for example, another cafe owner can provide useful information, but the shop owner can still be able to assist you effectively.
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Part 2 of 3: Run your business efficiently

1. 

   Initially focus on main activity only. Avoid taking advantage of another business opportunity that appears before your eyes. A profession for nine is more than nine. This proverb applies a lot in making decisions to diversify your business as well as deciding to implement projects other than your main business model. Focusing on only one area helps you utilize all the resources and be highly effective in this area.
   • Continuing with the example above, imagine that you witness other cafes making money selling jewelry and coffee, and you are tempted to follow suit.Unfortunately, this makes you forget about your main goal of serving coffee, leading to high risks, and distracting you from the quality of the coffee.

2. 

   Focus on cash flow rather than profit. While profit is of course one of the goals, it shouldn't be the focus when it comes to starting a business. Cash flow is much more important - many small businesses run out of money before they can stay in the market long enough to make a profit, and have to close. Pay attention to operating expenses and sales for the first year, and profit after.

3. 

   Record detailed records. For a successful business, you should record costs and revenue per transaction, even the smallest amounts. Once you know how money flows, you can find financial difficulties before they arise. In addition, this way also helps you find ways to cut costs or increase sales.
   • For example, above, you need to include the number of coffee purchased and sold for the current month and the cost paid. This helps you to realize that the price of coffee beans is slowly increasing and to make a decision about whether to increase the price or change suppliers.

4. 

   Maximum cost cutting. This is obvious, but you should consider a few areas that can have the same effect but with less money. Consider buying used equipment, finding low-cost advertising (for example using flyers instead of newspaper ads), or negotiating more favorable payment terms with suppliers or guests. goods to save as much as possible. Try to maintain low spending habits and use money only for required jobs.
   • In this example, you should use a used coffee grinder (as long as the appliance is working properly) and purchase up to the same supplier's supplies (cups, lids, straws, etc.).

5. 

   Consider supply chain efficiency. Costs and profits depend on the method of successful supply chain organization. By developing good supplier relationships, organizing deliveries, and delivering on-time service to customers, you are strengthening your profitability and reputation. Successful supply chain management eliminates sources of waste, such as raw materials or labor.
   • For example, your coffee shop needs to negotiate well with your coffee bean supplier and establish an organized supply chain structure for a variety of reasons. This is especially important in ensuring there are no coffee shortages, it also means that you can maintain a constant supply of coffee, try new coffee beans, or negotiate lower prices.

6. 

   
   
   Find a strategic partner. Like a helpful adviser, a strategic partner can motivate you to grow your business. Form a strategic partnership by approaching a business that benefits you, such as a vendor, technology supplier, or complementary enterprise. A good relationship with another company can give you free advertising, lower your business costs, or allow you to expand your market, depending on which partner you choose.
   • For example, your coffee shop can benefit from a strategic relationship with suppliers offering fake discounts or new products. In addition, a strategic complementary business partner, such as a bakery, can help both sides find new customers and increase sales. You can do this by introducing each business or by including your product in the other party's business model and vice versa.

7. 

   
   
   Guarantee to pay off debt. You need to physically evaluate your ability to repay. Starting a business and running a business is always risky, but you should minimize your debts through spending when absolutely necessary. When debt arises, you should structure your cash flow so you can pay off debt as quickly as possible. Prioritize repayment before doing anything else.
   • For example, if you spend VND 100 million to open a coffee shop, you should pay off your debt in full before thinking of expanding product offerings or upgrading coffee grinders.
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Part 3 of 3: Business Development

1. 

   
   
   Complete business speech. Prepare a 30-second speech that introduces your business as concisely as possible, including information about your purpose, service / product, and business goal. Practicing coherent speaking with your audience helps you in doing business with customers as well as attracting investment. If you can't launch your business model in a short time, you need to improve your business.
   • As for the coffee shop, you should explain your activity (sell coffee), service (drink to customers), special features (can be rare or roasted coffee directly. Next), your next plan (expanding other branches, new products, etc.).

2. 

   Build a reputation through good service. Establishing a good reputation is a free advertising option; customers will spread word of mouth about your property to friends and come back often. See each transaction as the success or failure of the business depending on it. This also means that you should be consistent with each business activity and customer interaction.
   • With a coffee shop business, this could mean you are always serving new coffee so your customers get really good products.

3. 

   
   
   Keep track of competitors. You should learn from your competitors' ideas, especially when starting a business. Maybe their idea is quite effective. If you find that out, you can apply it to your business model and avoid the failed trials they have gone through.
   • One of the best ways to do this when starting a business is to research your competitors' pricing strategies. In the example of a coffee shop, you could set a similar price with your competitor instead of experimenting with different prices.

4. 

   
   
   Seeking opportunities for continued growth. After starting your business, you should aim to expand your business. This means moving to a larger location, expanding your production space, or opening a new branch depending on your business type and your goals. Successful business owners often find that one of the main factors that hinder long-term growth is maintaining stagnation. This means you should try expanding instead of staying still.
   • When trading coffee, for example, you may find that there are few cafes nearby in the area. After the main site is completed and running smoothly, you should research to open a new restaurant in that area. This also means upgrading from a small cafe to a full-fledged coffee shop, depending on your circumstances.

5. 

   
   
   Add a source of income. Another way to increase business value is to look at other areas of income. After setting up your main property, you can search around and review where new services or products are offered. Maybe customers often come to your store to buy an item and go elsewhere to buy another product. You should find out what it is and source it.
   • Some of the items that you can add to a cafe are cakes, sandwiches, or books.
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Advice

• Pay all insurance for the year (eg debts, etc.) as soon as possible.
• Prepare money to spend on business for 6 months.
• This article has main content to guide business owners to maximize their property. For detailed instructions on starting a business, see how to start a small business and how to run a small business.

Warning

• Your private investment may be lost due to business losses.