It's an interesting question to ask.
But, we should ask it early on. Sometimes after having a great idea and doing some research we just plough into it without a second thought. We should stop and do the numbers to see if the effort is truly worth it and if the new venture is what we really want.
Some of the numbers we need to crunch are:
- Variable costs - these vary based on how much we produce or how active the business is. Examples are material and labor.
- Fixed costs - these remain steady regardless. examples are rent, salaries, utilities, insurance etc.
- Don't forget tax and other regulatory obligations.
- Calculate your gross profit and net profit margins.
- Gross profit margins should be 50% or higher and net profit 10% or greater
- Don't forget to account for your time - you are the businesses most valuable asset and should be remunerated accordingly.
- Pricing must cover all costs and and the desired profits.
Now after crunching these numbers you can figure out if you have a profitable business that is worth your time.
If the numbers don't work out or the profits are to small then its back to the drawing board or time to abandon the idea in its current form.
A clear guide to start up a new business! Some people really not good in managing their business and end up waste a lot of money , time and energy for running a failed business
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strategic planning :)
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Having your own business assumes that you are busy 24x7x365 at least for first years! You should care about everything:
You should plan and execute in the best possible shape, otherwise you will be swallowed by thousands of competitors! All this assumes a lot of stress!
90% of business do not reach a mark of 5 years age!
But anyway, it is still the best option for a young and dynamic person! Think about the business and do it! I bet that at least your 10th project will be successful ;-)
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you have to get your numbers right, to get profit out of your business, crunch them, plan well and then work hard and the numbers will add up
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Its a good post. Good information about business basic rules. As you mentioned the value of time has great importance in the business.. Its great voidable information about business for the steemians. Thanks for sharing the post.
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very nice.......business plan......carry on....👌✌✌👌✌✌✌✌boss
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Hello @sme
Thanks for your post.
I want to tell you I have a business of organic products and you have put me to thinking with what you have written.
I am Argentine I try to write to you and I do it with a translator, know how to apologize.
Regards!!
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Its a decent post. Great data about business fundamental principles. As you specified the estimation of time has extraordinary significance in the business.. Its extraordinary voidable data about business for the steemians. A debt of gratitude is in order for sharing the post..
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About your title, I am not really want to my business but doing work. Because, we have a proverb that is "we are not living pleasure place but living suitable place". That's absolutely right.
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The things I like best about my current and recent jobs, as a senior software engineer and software architect:
I get to work on software which will affect millions of people, in one way or another. I really like the idea of being useful.
The job requires constant learning. There's always something new to do, and new techniques to apply to solve problems better. Invent, invent, invent!
Programming and problem solving are incredibly fun to me, it provides excellent entertainment.
I get to work with a lot of very interesting, very smart people, and get to talk to them and hang out with them, and get paid for it.
Free candy and free pop. Bad for me, sure, but ever so yummy!
Software engineering: if you like it, I don't think there's a better job in the world!
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True.
Assessment and impact schemes should be carried out before carrying out actions. Some thoughts are so nice but are barely feasible
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nice
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заманчиво звучит)))
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Economist point of view. Its really advisable for a business person to key into this crunches in business but they are much more deeper than whats written because the likes of depreciation,liabilities, Nd depending on the organization that this metho might really applies because some organizations make payment to workers on either time rate and piece rate which got vary calculations and sure stock/inventory these and more applies in a business. But thanks for sharing this hint.🖒🖒🖒🖒
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Great advice for SME beginners!
I would note that, for innovative industries, such as software, gross profit margins should be at least 80% and net profit 30% or more.
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Good post
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Good brother, these things are very important, if someone wants to do business, then your things matter a lot.
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Everyone has their own business to mind.
While ones earn from theirs, others starve.
Only together we can help each other grow and prosper!
Together we're connected with invisible strings and laughter!
Compassion and love! Thanks for the inspiring article!
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It's also important to remember most businesses do operate at a loss for a year or more and to plan accordingly. Get rich quick is what lottery tickets are for, business is more about long term thinking.
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Nice post ,aactualy if you want your business ,you have to follow nice steps ,thanks for this rules
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Excellent analytical writing for business and investment. @sme
Resteemed.
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🗣Real Talk‼️
Too bad we are always acting with out doing the math 🤷🏾♂️🤦🏾♂️
Nice post 🔼
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Good thinking, I will learn it.
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And is your business still your passion?? We cant go far if the most important motivation is missing :)
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I think your Post is for a big group of people very helpful!
Thx for making this Website for us!
Upvote when your in my opinion @alokkamboj
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I wonder how blockchain would streamline setting up a business.
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Having a plan always helps but sometimes it's hard to calculate profit and cost until you're out there doing it. I just try and figure out how much my overhead is going to be and how long I can hang in there if things don't go the way I'd like.
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This is a challenging question for all entrepreneurs. How much should one persist before giving up, & when to pivot to try a new idea. There are many factors that affect this decision: competition, market sentiment, recurrent income, sales pipeline, cash flow, funds on hand, stamina to persist & family pressures.
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To the question in your title, my Magic 8-Ball says:
Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.
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Thats a quite good post @sme :) I've running my own business since 1 year now and I don't reget it. There are some many ways out there which can be used to make money on the internet. For my case I built a great private lable #amazon #fba business!
If anyone is interested in this topic, check out my blog ;)
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Your own business can rise you to heaven, but also can put you down. But in any situation, having your own business is work non stop! Unfortunately, not all startuppers are aware and ready for this!
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Congratulations @sme, this post is the second most rewarded post (based on pending payouts) in the last 12 hours written by a Superuser account holder (accounts that hold between 1 and 10 Mega Vests). The total number of posts by Superuser account holders during this period was 1562 and the total pending payments to posts in this category was $20305.36. To see the full list of highest paid posts across all accounts categories, click here.
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very nice.Welcome to visit my blog.
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Thanks for this sharing blog carry one..
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Most of the time people don't care about these facts and just want to be a boss and see how it feels like. That's why many of good ideas, considering all possibilities before, can't find a place in the sector because someone was trying to satisfy his ego.
Even us were thinking about starting company when we were young, despite all these circumstances were negative, we would say, "but we are going to be boss at least".
I wanted to point at different angle of starting a business.
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Helo@sme be my friend please. I hope you want help me
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It's really not easy to start up a business. Business plan is a must so not to have regrets in the future.
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Great post! As a online business investor I am constantly asking myself these questions when evaluating companies.
The big one that usually has me walking away from deals is the time involved. So many people don't realize time is money! I would rather invest in a deal that makes me $500 a month for an hour of work a week than something making $1000 a month but soaks up 15 hours a week of my time.
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