A
great business mind is most often considered the best asset of a successful
entrepreneur.
Being
a business owner is always one of the seemingly more exciting ways to make a
living. Considering the many opportunities in the market and the rise of
consumer spending in the country, there is no surprise to why a handful of
graduates choose to be young business owners.
Starting
young in the world of business is always a good thing, but it can also be too
risky especially if it’s a start-up and you’re doing everything by yourself.
The primary concern when starting a business frequently revolves around
finances. Do you have the money to start a business? Do you have all the
requirements to apply for a business loan? These are the right questions to ask
yourself, but remember that it’s not always about the money.
No
matter how bright your ideas are, you won’t get anywhere if you don’t plan and
execute a strategic approach toward entrepreneurship. Before you begin your
venture, here are some ideas on how you can go about your business planning:
1. Outline your
business goals. When setting your business goals, don’t focus on just
making money. Not only does it sound greedy, it also does not give you the
right kind of mindset as a business owner. Set goals for yourself and for your
business so you can always be on target. Do you want to expand your business a
few years from now, if it becomes successful? Do you want to get investors or
franchisees?
2. Boost your
knowledge on financial management. One of the downfalls of most
businesses is the lack of knowledge about handling money. There are a lot of
books on business and financial management that you can get from a bookstore.
Otherwise, you can simply Google what you need to know. You can even find a lot
of online videos and even business courses, free of charge.
3. Create a budget. If you
are funding your own venture, you may have very limited resources. If not, it’s
likely you don’t have enough cash flow. While it can be quite challenging,
having a conservative stance towards spending will allow you to stretch your
budget.
4. Prepare
for a business credit card application. Even if you already
have a credit card, never use your personal card for your business. Having a small business
credit card to be used exclusively for business purposes is a much
better idea. It will allow you to monitor and evaluate your business expenses.
It will also give you enough financial flexibility in times of need.
5. Join business
symposiums or conferences. Learn from the most reputable business
speakers. It’s highly logical to learn about the experiences and hear words of
wisdom from business professionals. You also need to consider these events as
an opportunity to grow your network.
6. Be an expert in
people-to-people and business-to-business relations. Don’t
attempt to pull dirty tactics for your own gain. From clients and suppliers to
business partners and competitors, never strain your relations with anyone.
Being unethical will only backfire and hurt your business and your personal
life in the long run.
7. Monitor your run
rate.
Every business owner knows the importance of monitoring how the business is
actually doing. How is the ROI (return on investment)? Will you be able to
continue with expansion or do you need to consider an abridgment? This allows
you to identify the SWOTs (strengths, weaknesses, opportunities, and threats)
of your business and to evaluate if the business is truly profitable.
As
a young entrepreneur, you must not fear the many facets of business planning
and execution that you will need to go through. Most of the time, people who
take the biggest risks are the ones who get to enjoy a booming success.
This
article is exclusively written for PinoyCareerCenter.Blogspot.com by MoneyMax
Philippines, the country's leading financial comparison portal which helps
Filipino consumers make the right financial decisions as they settle on the
best credit card, home loan, broadband plan, and more—fast, comprehensive, and
free. Visit MoneyMax Blog for more
financial tips and advice.
