Business Mentor, Consultant And Trainer
Senior Services Manager
It appears that you have not prepared proper business plan. Mere having technical know-how is not sufficient. Have you made your business plan? I am asking about the business plan from the business standpoint and not the one that we submit to the bank manager to get some loan. Secondly, have you identified the various costs of your business? Roughly, your success in business will depend on managing following costs:
a) Inventory Carrying Cost of Raw Materials
b) Work in Progress (WIP) Inventory Costs
c) Inventory Carrying Cost of Finished Goods
d) Capital costs to run the operations
e) Capacity costs
f) Maintenance costs
g) Quality costs
h) Marketing costs
i) Other Admin costs
Occasionally I have given replies to similar queries. Click the following links to read my replies of past posts:
Strategic Marketing Plan
<link no longer exists - removed>
The above posts may or may not be related directly to your business. However, essence of the post is very much applicable to you.
All the best!
29th July 2015 From India, Bangalore
29th July 2015 From India, Chennai
I will repost what I have said to prospective business owners in previous postings.
Take a step back, and do some research on this FIRST.
Start first with a thorough SWOT analysis of both yourself and the business idea. After that put together a very detailed and comprehensive Business Plan that sets out exactly how the business is going to be set up, what funding you have, how you will operate, how you will market, and where the clients will come from.
What is going to be different about you and your business?
How are you going to find clients, when all the other similar businesses around you are seeking the same clients?
How are you going to support yourself (and your family if applicable) while you try to establish the business and make it profitable to pay you a salary?
What capital and ongoing finance do you have to start this business, hire and pay staff, rent office accommodation, pay for marketing and advertising etc etc??
How many other similar businesses are there right now in your area that you will be competing with?
As a general rule of thumb, you need to work out what your total living expenses are for a year, and put that money to one side. That relieves the pressure to some extent while you try to establish the business. At least you can then maintain a roof over your head, continue to eat, and pay for all your living expenses, though of course, you may need to live more frugally.
Secondly you will need to work out what it is going to cost to set up the business from scratch, then how much money you will need to run the business for at least a year. Very very few businesses ever make any money in the first 12 months, so if you are counting on this generating income as soon as you open the doors, then I seriously advise you to rethink this idea NOW.
We have so many postings here on CiteHR of people who have started their own businesses, and are now desperately seeking clients etc, because the business is failing. I'll guarantee that none of these people did any research first, or made sure they had funds in place to live on.
FAILURE TO PLAN IS PLANNING TO FAIL.
I have just saved you a lot of money from making a wrong decision.
30th July 2015 From Australia, Melbourne