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What’s the first step to becoming the owner of a self owned business? (From experience was it difficult?) What are things/ways to help you become a better business owner ? How fun/hard do you think it would be to have different sections/stations in one business under one roof? (For ex. Clothing, hair salon, etc.)
#business #entrepreneur #business-management #marketing
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Patricia’s Answer
The first step to become a business owner is to set your mindset to be persistent, self-motivated, self-disciplined and a risk taker. There are trade-offs you win and loose when you become your own boss, but most importantly you have to believe on what you are doing and where it is going.
Starting a business could be rocky road and with ups and downs, but once the road settles you see it grow and become your legacy. The things you need to start first are a good business plan with a clear mission and vision of where your business will go. Conducting the right market analysis is important to understand the strengths and weaknesses of the business you want to set. Have a good sales pitch and look for the right investors that will like to fund your business. Like Michael S mentioned above, Think Big, but start small and be nimble to scale it up.
Starting a business could be rocky road and with ups and downs, but once the road settles you see it grow and become your legacy. The things you need to start first are a good business plan with a clear mission and vision of where your business will go. Conducting the right market analysis is important to understand the strengths and weaknesses of the business you want to set. Have a good sales pitch and look for the right investors that will like to fund your business. Like Michael S mentioned above, Think Big, but start small and be nimble to scale it up.
Updated
Eric’s Answer
Michael's answer is great. You may not need investors but writing out a business plan will help iron out your ideas. I had many small businesses over the years — none of them were planned. Depending on what you are planning to do you may be just buying yourself a job.
So for what you have in mind — retail (clothing), service (salon, etc) there will likely be different licensing required and kind of different subject matter expertise. For retail really just a resale license from city and business license from county. For a salon you'd need esthetician license — my guess is it's from the state. Food would be its own beast, etc. I would think you'd need different insurance as well in case say you bleach someone's scalp, cut someone badly or something like that.
Now for salons I think one of the models is you would get a master lease and then sublease stations out — so essentially a landlord. You provide the theme, look and feel, promotion, etc.
Keep in mind that for retail — say like you want to generate $100k "profit". You'd likely need to sell about $400k annually to get there, location, labor and all that obviously factors in here. Cost of goods is typically 50% of MSRP. So for $400k. Your cost of goods is say $200k, assuming they all sell (they won't). $100k for expenses (rent, utilities, promotion, labor (sales staff). I'd budget at least 6 months of reserves in projected operating costs. Get as close to project estimated budgets as you can. My last retail store I budgeted about half what I actually needed after eventually selling the operation 4.5 years later.
Good luck!
So for what you have in mind — retail (clothing), service (salon, etc) there will likely be different licensing required and kind of different subject matter expertise. For retail really just a resale license from city and business license from county. For a salon you'd need esthetician license — my guess is it's from the state. Food would be its own beast, etc. I would think you'd need different insurance as well in case say you bleach someone's scalp, cut someone badly or something like that.
Now for salons I think one of the models is you would get a master lease and then sublease stations out — so essentially a landlord. You provide the theme, look and feel, promotion, etc.
Keep in mind that for retail — say like you want to generate $100k "profit". You'd likely need to sell about $400k annually to get there, location, labor and all that obviously factors in here. Cost of goods is typically 50% of MSRP. So for $400k. Your cost of goods is say $200k, assuming they all sell (they won't). $100k for expenses (rent, utilities, promotion, labor (sales staff). I'd budget at least 6 months of reserves in projected operating costs. Get as close to project estimated budgets as you can. My last retail store I budgeted about half what I actually needed after eventually selling the operation 4.5 years later.
Good luck!
Updated
Thais’s Answer
Great answer from Michael S. I would answer the same.
The main thing is: know the business, like what you do.
Find out if there's a business opportunity, something people need and aren't finding. Have a competitive edge (for example: low price, or high quality, or customization, or innovation).
It's not easy to have your own business, but if you want a lot, be dedicated and try hard.
It can work or not, and to reduce the chances of it not working, start as Michael S said: do a business plan, do market research, look for investments and put in a lot of effort.
The main thing is: know the business, like what you do.
Find out if there's a business opportunity, something people need and aren't finding. Have a competitive edge (for example: low price, or high quality, or customization, or innovation).
It's not easy to have your own business, but if you want a lot, be dedicated and try hard.
It can work or not, and to reduce the chances of it not working, start as Michael S said: do a business plan, do market research, look for investments and put in a lot of effort.
Updated
Michael’s Answer
Becoming a self-employed business owner requires you find a passion or a need in the market place that you will an idea to solve. First step will be to create a business plan for the proposed business. A business plan will included the need you are solving for, how you will solve for the need, who will be user of that business, how much resources you will need to start. Based on the plan, you may also conduct a market study to assess the market for your new business. Who are your competition? where will you locate your business? How will you finance the idea - through your savings, family or friends or borrow from the bank?
Create a business plan
Conduct a market study
Source for funding
Start small
Michael recommends the following next steps:
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