How To Start A New Business Five Major Hints

How To Start A New Business Five Major Hints



1-What is​ the​ main mistake committed by many entrepreneurs when starting a​ new business?
Every new entrepreneur dream of​ launching a​ new product that is​ a​ total novelty,​ a​ boldness of​ thought and a​ fruit of​ his intelligence and creativity. He knows many stories of​ entrepreneurs who got rich with a​ new good idea. However,​ they forget that most of​ new companies die in​ their first year of​ life and the​ number of​ failures is​ much higher than the​ number of​ success. Do not start a​ new company to​ show your creativity. Save your money and avoid frustration.

2-How to​ choose the​ right type of​ business?

Recommendation # 1

Copy what other successful companies are doing until you know the​ market quite well. Summary:

-Do not innovate at​ the​ very beginning of​ the​ company.

-Never offer new products at​ the​ start.

-Advertise the​ same way your most successful competition.

-Sell successful products or​ start business similar to​ already successful business.

-Use the​ same advertising media as​ the​ most successful companies are using.

-If you try to​ sell a​ product that few companies are selling,​ your chances of​ success are very few.

-There are many successful stories of​ products that were real novelties but for every case of​ success,​ there are hundreds of​ failures. However,​ large corporations achieved most of​ those successful products after a​ long series of​ failures.

Why the​ above recommendation is​ correct?

1- Because brilliant ideas generally do not work in​ most business areas. Psychologists say that the​ best business administrators do not have creative minds nor generate brand new ideas. They choose among ideas suggested by others.

2- Only large corporations have the​ money and time resources to​ invest and test new products or​ companies and wait until a​ great many tries bring in​ the​ expected profit. Generally,​ those tests are performed by professionals with large experience and highly qualified and it​ is​ very unlikely that someone without experience in​ that market can find out an​ excellent product or​ a​ new market.

3- the​ newcomer does not have enough information on​ products that have already been launched tried and failed. And also on​ companies that have been started and shut their doors etc. They also do not know the​ market.

4- the​ pioneer has the​ cost of​ the​ test i.e. a​ series of​ failures up to​ the​ point to​ find out a​ product or​ a​ company. the​ followers do not have those costs.

Hint:

When copying a​ company be very careful to​ gather all important facts.

3-How to​ start a​ business if​ I have very small financial resources to​ invest?

-Start part-time and keep your current job so that your livelihood and that of​ your family does not depend on​ immediat success. Your current job will provide financial support during the​ rough and tough initial time so that you can evaluate your new business. Business world is​ a​ tough world and is​ difficult to​ learn it​ overnight.

-Work in​ your own house

-Remember that most of​ your investment will be your time and your ideas to​ start small and gradually learn and fix the​ mistakes you are going to​ commit.

4- Which advice would you provide a​ friend that wants to​ start a​ retail shop?

Assume that one friend of​ yours wants to​ start a​ business (a retail shop) and asked for your advice I think that your suggestion would be: look around your or​ other cities to​ see shops that seem to​ be successful business and that also seem to​ be growing fast. the​ main rationale is​ that if​ a​ shop is​ successful for someone most likely will also be good for your friend. Instead,​ if​ your friend wants to​ start an​ odd business I think you would advise him that his chances are very small.

5- How to​ find the​ right product?

Follow your hobbies to​ start your business. Use your knowledge or​ your personal interest to​ make money. Many entrepreneurs started their companies manufacturing or​ selling products that were their end of​ week hobbies like photography equipments,​ fishing tackle,​ diving equipment,​ cars,​ paintings,​ plants etc.




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