Do you really want your business?
It's an interesting question to ask.
But, we should ask it early on. Sometimes after having a great idea and doing some research we just plough into it without a second thought. We should stop and do the numbers to see if the effort is truly worth it and if the new venture is what we really want.
Some of the numbers we need to crunch are:
- Variable costs - these vary based on how much we produce or how active the business is. Examples are material and labor.
- Fixed costs - these remain steady regardless. examples are rent, salaries, utilities, insurance etc.
- Don't forget tax and other regulatory obligations.
- Calculate your gross profit and net profit margins.
- Gross profit margins should be 50% or higher and net profit 10% or greater
- Don't forget to account for your time - you are the businesses most valuable asset and should be remunerated accordingly.
- Pricing must cover all costs and and the desired profits.
Now after crunching these numbers you can figure out if you have a profitable business that is worth your time.
If the numbers don't work out or the profits are to small then its back to the drawing board or time to abandon the idea in its current form.
A clear guide to start up a new business! Some people really not good in managing their business and end up waste a lot of money , time and energy for running a failed business
strategic planning :)
Having your own business assumes that you are busy 24x7x365 at least for first years! You should care about everything:
You should plan and execute in the best possible shape, otherwise you will be swallowed by thousands of competitors! All this assumes a lot of stress!
90% of business do not reach a mark of 5 years age!
But anyway, it is still the best option for a young and dynamic person! Think about the business and do it! I bet that at least your 10th project will be successful ;-)
you have to get your numbers right, to get profit out of your business, crunch them, plan well and then work hard and the numbers will add up
Its a good post. Good information about business basic rules. As you mentioned the value of time has great importance in the business.. Its great voidable information about business for the steemians. Thanks for sharing the post.
very nice.......business plan......carry on....👌✌✌👌✌✌✌✌boss
Hello @sme
Thanks for your post.
I want to tell you I have a business of organic products and you have put me to thinking with what you have written.
I am Argentine I try to write to you and I do it with a translator, know how to apologize.
Regards!!
Its a decent post. Great data about business fundamental principles. As you specified the estimation of time has extraordinary significance in the business.. Its extraordinary voidable data about business for the steemians. A debt of gratitude is in order for sharing the post..
About your title, I am not really want to my business but doing work. Because, we have a proverb that is "we are not living pleasure place but living suitable place". That's absolutely right.
The things I like best about my current and recent jobs, as a senior software engineer and software architect:
I get to work on software which will affect millions of people, in one way or another. I really like the idea of being useful.
The job requires constant learning. There's always something new to do, and new techniques to apply to solve problems better. Invent, invent, invent!
Programming and problem solving are incredibly fun to me, it provides excellent entertainment.
I get to work with a lot of very interesting, very smart people, and get to talk to them and hang out with them, and get paid for it.
Free candy and free pop. Bad for me, sure, but ever so yummy!
Software engineering: if you like it, I don't think there's a better job in the world!