For a real businessman, the goal is not money or other material benefits - but creating and selling a product, scaling his business, increasing capital, returning investments, modernizing production.
Business articles based on personal experience.
Money and people
As an affirmation of the idea of human independence, as an encouragement of the desire to achieve everything by one's own efforts, I will voice the words of Woland from Bulgakov's novel "The Master and Margarita": "...Never ask for anything! Never and nothing, and especially from those who are stronger than you. They will offer, and they will give you everything".
Don't take someone else's. No belongings, no ideas, no lifestyle. Those who dream of success will only have to go their own way. Such is life that all ugly borrowed sooner or later will have to return, and all copied completely will not bring success. And God forbid to steal someone's ideas: they can not go far on them anyway, since only the author can further develop them anyway, and in the case of detection of fraud with a career can be generally goodbye.
Money, money, money. People forget that money is just a means to an end. What about the product? Yeah, you don't really need it. The most important thing for an entrepreneur is to make money. I don't agree with your statement. It is a road to a dead end. A society built only on material goods will soon degrade and collapse. So I am not surprised that there are so many people in the United States who dream of social justice and are increasingly influenced by socialist ideas.
Everything that is going on in the world right now, including the United States, just confirms my statement. A society built on lies, hypocrisy, deceit, and money is degrading. People are trying, not without the help of the corrupt media, to shift responsibility onto other people's shoulders for their inability to be reasonable people. They try to solve problems by blaming everyone around them, not realizing that they are to blame themselves and not anyone else. People don't want to change themselves, so they self destruction. The self destruction of people in any country leads to the self-destruction of the state. Soon we may see many nations simply disappear from planet Earth, as if they never existed. And in the remaining territory, embittered people run around, losing their human form, killing their own kind to get a bowl of food.
Difficult times await us. But only the strong of spirit and will, can survive this cataclysm and go further on the path of self-improvement...
Before deciding to start a business, you should think carefully, weigh the pros and cons. Realize the importance of your decision and take responsibility for further steps.
The article consists of questions and answers.
What is a business?
Business is a drive, adrenaline, risk, responsibility for your actions and the actions of your employees, hassle, sleepless nights, failures and victories, disappointments, chronic lack of money, litigation, lack of knowledge in many areas, lack of vacations and weekends, work to deep nights, psychological problems, burnout and depression.
This is just a small list of what awaits you after starting a business.
What do I want to get from my business?
Most people will say that they want to make a lot of money.
But for this you do not need to open your own business, it is enough to go and get a job in order to earn money. With the desire and due perseverance, you can find yourself a high-paying job. And you will have a calm and measured life.
When I started my first business, I thought the same way as most people. I thought that I would open my own business and money flows would rush into my pocket and in an instant, I would become a rich and well-to-do person. Reality quickly put everything in its place and in an instant cleared my head of fantasies.
What problem will my business solve?
Some of the novice businessmen are unlikely to be able to answer this seemingly simple question. Because they didn't think about this question. No, they had the answer to this question in their heads, but they cannot voice it out loud, much less write it. It turned out to be a daunting and daunting task.
I had a clear idea of what I wanted to do. But, like many aspiring businessmen, I did not take into account several important factors. They will be discussed below.
Question 4: Who is my "ideal client"?
The client here means not only an individual but also a legal entity. You yourself come up with the "ideal client". Considering where he lives, what he does in his free time, what he reads, how he thinks, what he wants to get, and so on.
In other words, you put yourself in the shoes of your "ideal client" and start asking yourself questions.
Questions need to be prepared in advance. It is better to summarize all questions and answers in one table. In one column there are questions, in the other your answers.
This way you can find out your "ideal client" in advance. And you will be able to edit your questions and answers. Before you move on to surveys on the Internet or on the street. You'd better train with your acquaintances, friends, relatives. You need a non-stakeholder opinion.
\ I missed this moment. I did not know at all that such a thing exists and that it must be done without fail. \ This was my fault. Since I found my first client only three months after starting a business.
How will I sell?
How you will sell your product or service is of no interest to anyone except you. This is your business, and you decide how best to sell.
The best thing, in my opinion, is to outline an inner circle and start selling your service or product to your closest circle: friends, relatives, acquaintances. At the same time, give them small bonuses. Engage them as your agents who will advertise you for free. Make your social media ads yourself. Even if it is nondescript and not very high quality. But from the feedback from visitors, you will understand what you need to fix and what errors to eliminate. Ordering advertising when you are just starting your business is a thoughtless waste of your money, which you may already have a little. And there is no income yet. You can make a trial batch of business cards, 100 pieces. And distribute them to your acquaintances, friends, and relatives, for distribution among others. This path is slower, but it will justify itself because you don’t spend money that you don’t have or little.
I will consider this issue in more detail in other articles.
In the next article, I will share my thoughts on what mistakes beginner businessmen usually make when starting and registering a business.
How to start a business
If you want to make enemies for yourself, then take money for business from your relatives. Western countries have long used this cliché that the initial investment should be taken from relatives and friends. Oh well. You are sure that by taking the money you will be able to give it back within the agreed period, for example, in a year. This is the delusion of all young businessmen without exception. In a year, your company's revenues will go to zero at best. In the worst case, you will go to minus.
And how were you going to give the money to your relatives? A? You don't have them. Some young businessmen leave the distance, which is called business when they see an amount with a minus sign on their balance sheets.
People are unpredictable creatures, and your relatives are the same people. Suppose that after three months they urgently need money and they turn to you with a demand to return it. You will probably say that you cannot return them, since they are invested in your business and the return period has not yet come. They will insist on their own, not listening to your arguments. They will tell you what kind of businessman you are if you have not earned anything. Indeed, according to their ideas, businessmen row money with a shovel and do nothing at the same time. They will threaten you by going to the police or court.
What are you starting to do?
You take money out of your business and give it to them.
And what happens to you as a result of your ill-considered actions?
You have planned a deal with a supplier, you need to pay rent, you need to pay taxes, pay salaries to employees, you need to pay for the goods. And you have no money.
You tell your supplier that you are terminating the contract with him because you do not have money. You are delaying the payment of salaries to employees. It's the same with the landlord.
The result is predictable, you are destroying your reputation as a conscientious and honest businessman from scratch.
Ask yourself the question: was it worth it? And you yourself tell me the answer: so that I once again contact my relatives? never in my life.
But there is a way out of this situation. Treat your relatives, not as relatives, but as business partners, creditors, investors. Who invest in your business. Make a contract with a notary. In the contract, clearly state the conditions for receiving funds and the conditions for returning funds within a certain period. Make a clause in the contract: special conditions. In them, write down that an early return of funds is possible under certain conditions. With this agreement, you primarily protect your interests.
Never hire relatives for your work. No matter how they ask you and beg you to hire a son, a daughter, and so on. Such kindness on your part will not lead to anything good.
Let me give you an example from personal experience.
I had an aunt. She has a daughter, my cousin. My sister made a contract with me. And the aunt did the work for her. I tried to talk to my sister about the fact that the contract was concluded with her, and not with her mother. And to pay for the work done, I owe my sister. My sister only worked for three days. I paid my sister for the job, only for three days.
As soon as I was not scolded and called names. But, I stood my ground. The one who signed the contract should receive a salary in proportion to the hours worked. As a result, they both left work, taking with them part of their material assets. And here, I gave slack. I did not report my relatives to the police. This was my mistake. Which subsequently cost me dearly.
Do not take money from relatives if you do not want to make yourself into trouble later. And if you took money from them, then draw up a written contract...
Do not arrange for your relatives, in your business. If you took a relative into the business, then treat him like an ordinary employee. And let your relative know in advance how they will be treated.
There is a golden rule: a businessman has no friends and relatives in business, but only business partners.
This must always be remembered and not forgotten.
In the next article, I will write why you shouldn't take friends into the business. Even if they are best friends and you have known them for many years and do not doubt their honesty.
Business and relatives
Choose friends among pleasant people who have a rare and unpleasant ability to speak the truth.