Building your business basics

in business •  7 years ago  (edited)

Once again many of these seem quite obvious but they are well worth reviewing.

A business becomes a self sustaining entity. In order to become self sustaining certain fundamentals need to be in place.

  • The business needs to spend less than it earns and save a little.

This is the difference between profitability and unprofitability. Ideally the business should also be able to set aside a portion towards savings so that it can cater for unforeseen expenses that will arise in the future. Savings are not always placed in a bank. In some areas with high inflation or unstable banks alternative methods of saving should be explored.

If this business cannot accomplish this basic then it will not be a success and is not reasonable to pursue.

  • Debt can cripple the best of businesses.

It is wise to avoid debt wherever possible but where business dept is necessary and manageable it can be a helpful tool in growing your business.

  • Insurance can provide a safety net.

Depending on the risk levels and nature of your business and if appropriate and scrupulous insurance mechanisms are available, insurance can mitigate high risk levels. For an individual business owner health or disability insurance can assist in mitigating loss were one to become seriously sick or disabled. Key personnel in a business can be insured to enable the business to continue in the event of some unforeseen human resource issues.

Having said this insurance premiums can also be an unnecessary burden so insurance requirements need to be evaluated carefully and adjusted regularly.

  • Planning is key

Some of us can get by in life by "winging it", for most of us it's best to plan things. The same is true of business. Especially as the business grows and becomes more complex failure to plan could lead to significant difficulties.

A basic business revolves around four key areas:

  • customers
  • costs
  • sales
  • profit

Our planning should focus on all of these areas if we are to be successful and we will delve into each of these areas in more detail in the future.

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Wao great idea this is ,alot of people dont know about that part called planning ,it is huge part in business ,a lot of people just go into buiness without good planning skill and when the business fail ,them find unavailable reasons .nice 1 there bro

I agree, I understand the impatient urge to just begin but a sensible amount of planning can help in the long run. That said, I try to be mindful of over planning because it can lead to procrastination, delay and lost opportunity.

The time it takes to turn a profit will vary between industries and individual businesses, but the rule of thumb remains the same: have enough cash in the bank to survive for six months or more before you launch. Developing a realistic personal and business budget can help you survive the first few months, and sticking to this budget will be crucial to success.

Also,
Before starting your own business, make sure you can mentally and physically ensure the journey. Be prepared to work long days, do things that are outside of your comfort zone, make personal sacrifices, work hard for what you believe in and dedicate yourself fully to the businesses success. If you aren’t in it 100 percent, the business won’t achieve its full potential.

  ·  7 years ago (edited)

"If this business cannot accomplish this basic then it will not be a success and is not reasonable to pursue" I like this quote, it really makes sense. Nice post please continue. You got my upvote on this.

I want to add one more thing that a business should be honest and never try to deceit anyone. Then only he can be successful in long term.

By the way nice post. Thanks for sharing your thoughts with us.

Well, we can require loans to grow our business but not to start. i have seen a number of people asking for loans before even having a running business. Requesting for a loan requires a deep knowledge of the business, the various cycles and fluctuations in a particular market.

A loan is a risk, yes a great one. It encourage an individual to work hard but also can lead an individual into a huge loss. not only of the business but also of the other properties linked with the loan.

Understand your business and know your market.

I like the customers aspect. You need to communicate properly with your customers in order to know what they want. Is it adding small features to the product or redesigning the product. This is very important when in a very competitive market. Thanks for sharing

Thank for this business tips. I think this is one of the basics needed before embarking in any business. I just want to add that one also need a business ideas and also be innovative on any business he or she chooses especially in competitive business environment. That is one way one can spend less than he or she earns and still succeed especially in a competitive business environment.

Good read @sme! It's always a good idea to review the basics as they are so crucial to know but can often be forgotten

In my own experience I can get oaverwhelmed by perceived complexity and forget some of the basic fundamentals.

Some useful advice as i embark on the process of starting my own business

I have been thinking of starting my own business for a while now,and these are very useful points to consider,thank you for the post,on your point concerning insurance,do you suggest that one can do without insurance if the business is not having any high risk levels.sometimes insurance is very expensive if the business is just starting.

If the risks are not to great then insurance can be a luxury you can skip on in the early stages. It should be evaluated and considered depending on the stage the business is at.

Thank you

A business is a total game, so master the game "monopoly" and think why of your action and result.

hey @mohammedfelahi i follow u please follow me friend @exchangetimes

This is so helpful for those wanting to start their business, thank you!

hey @lpreap i follow u please follow me friend @exchangetimes

very good info you have provided @sme if anyone has to start business from scratch.All the four key areas customers,costs,sales,profit are very crucial.I think they are basic building block of business.Please provide more deeply info about these key areas.I will be waiting for you next post.thanks to share with us.

I love business because we have independence in our own business. We can plan, work as we want. There is nothing like our own business. I want to start my own business in near future. May God bless me with suitable characteristics.
I'm really interested in your posts, keep it up bro. Looking forward for more in future. Thanks

The real beauty of business is that we can work in it with our own plans. I'm waiting for more detailed posts about business, from you. I really find it very useful. Carry on this good work. Thanks brother :)

Its a good informative post. To follow the rules of business you mentioned one can earn more without a loss. It is a great help who are starting business or running the business. This will give a great help to the steemit community. Thanks for sharing the rules of business.

Thanks for your help!
Helped me a Little Bit ✌🏻👍🏼

  ·  7 years ago (edited)

interesting post sir thanks for helpfull post @sme

I have a plan to build my own bussines in retail or a coffee shop, but until now I have no capital yet.

Thank you for the useful info!

business is a work that all profit depend on rick. so many risk so many profit

planning is more importent for busisness @sme i follow u please follow me @exchangetimes

Thanks for posting this,have leart something,youre upvoted sir

I hope that I can save something for my cryptos!

good idea for any one in a business.

Great post. I like this. I want to build my business basic.

business a man can be self employment.who are businessman are not longer .so we should do not hanker after job.we should be business.that help us to developers a country...
i like buisiness...
how can i start it...
thanks for sharing

i apricate your post...i think this post is an informative..
carry on your activity...
thanks a lot.

Good article... thank you 🙏

Stay focused and be open to change ...
Nice post.