Friday, July 25, 2014

Thinking of starting a small business

Many of us who retire, think that we might set up and run a small business to help fill our time and to make extra cash but don’t know how to go about it. It’s quite obvious that you will be jittery but one of the main qualities you require to succeed as an entrepreneur is being comfortable when it comes to taking risks. I just opened two online stores  "Magical ideas from Gifts that Work" and Hummingbirds and Butterflies Gifts that specialize in personalized gifts.

Whether you are at the senior level in a company, the mid-management level or just a fresher, It's important to 'have a dream' and “be sure of yourself ” before you take the decision.

Once you are sure of yourself, start building your team by finding a good co-founder and others who are passionate about the area you are aiming to work in. Your team members should be a mix of people with different skills. Another key thing is to dream big but start small. Don’t invest too much in one go. Money to start is a problem so one of the first places to consider is family and friends and try to do bootstrapping. Debt funding is cheaper than equity funding.

While it may be tough to find a niche for yourself when it comes to choosing an idea for your start-up since most sectors have multiple established players, it is essential to have a clear-cut strategy about what you want to do. 

Having an idea book can help. Keep your eyes and ears open, note down ideas that come to your mind and indulge in questioning things.

Understanding the basics of finance and having a team that has multiple skill sets is essential. If you have just started out, make sure you have a buffer of savings to be able to sustain yourself and your venture.

Being certain about your cash flows, including salaries, rentals and other expenditures, and doing financial modelling are also important. 

“It’s great to have expertise in that field and to do that, you must have complete knowledge of it through multiple resources, including market research, government reports, business models, and networking with people who are already in that space. 

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