We often hear about people being swindled of their supposedly investments and those who simply fail in the business venture they have entered into. So that you can be successful in any business endeavour especially if you are new to business itself or to a specific industry, you should know a few important things before making the first actual step of starting or entering a business.
Who to Trust
Being warned about scammers is a given. But we should be extra careful because even those people we already know can betray us because of the circumstances they are in. We should also be careful of people who are very skillful in manipulating others by talking their way towards embezzling other people. There are even those who know how to hypnotise the person they are talking to.
How the Trade Goes
Working with people you trust and can actually trust to help you set up a business or enter into an industry to invest is not enough to avoid failure. You yourself should have sufficient knowledge of how things go in the specific field you want to enter or where you want to set up your own business or with others. Many newbies in the industry in which they have ventured into for the first time fail because of their lack of knowledge of how business is done in the industry.
How Business is Done
Aside from knowing how things are done in a specific industry, you should know how business is done overall. This means that you need to know the government and industry requirements for doing business. You also need to have enough knowledge and skills for business. Having entrepreneurial attitude and abilities is a requirement. Being an excellent time manager, multi-tasker, leader, worker, negotiator and being shrewd is necessary in doing business. You should have enough amount of these qualities before starting in business. You can develop them by working with other who have started ahead of you before putting up your own. If you are already confident of the volume of these traits you can start your own enterprise and still continue to increase the level of these entrepreneurial characteristics.
Dealing with Different People
As a businessman, you will need to deal with many people. You should know how to communicate and interact with people of different stature and from different sectors. There is a big difference on how you talk with high ranking officials in companies where you get raw materials and supplies from or those from where you sell your products or services to.
Period of Return of Investment
Before starting a business or entering the business sector, you should know that there is a period of return of investment. You cannot expect to have a net gain immediately on the first month of operations. There are fixed assets and overhead costs which you need to include in your income statement. They are figures which actually account as true expenses necessary in doing business and producing your products or providing services. As a business man, you are an investor and this means that you should know that you need to wait and know how to do so.
Also, before your you start earning some returns from the capital you have invested or, in short, net profit, you may need to pour in some additional funding. Along the way during the period from the time you started the business to the first month you expect net income to be earned, you may also need to add more financing or funds. Doing so will keep the operations going and sustain the business’ ability to create income and eventually net profit. Being in business, you must know how to take care of its operations and this may mean you must put in some more money, time, effort and thought.
Business is about taking risks. Before plunging or leaping, you should check whether you have enough knowledge, skills and attitude to play and survive in the business arena. Remember that you want to enter it because of the profits you want to earn. If you are not prepared with the right amount of these requirements, you will fail. See to it that you arm yourself with these ammunitions so that you will be victorious in conquering the business world.
From my childhood to my adolescence, I was not very gutsy at taking risks. Right now, aside from having my own humble business portfolio, I also help students do some gutsy moves in the personal statement UCAS requires from them.