Think about the needs required to start a business. Record these things on a piece of paper with the following four titles: skills, business idea, business plan, and money. Keep thinking until you reach at least one item written under each heading.
First, skills: are important when starting a business. An employee needs job skills to get hired and to do the job. If someone is hired as a motorbike mechanic, the business that is hiring expects that this person knows how to repair a motorbike. Let us say that the motorbike mechanic knows his job well and wants to start his own business. Initially, he plans to start off self-employed. Now he needs to have business skills as well to start and run his new business and get customers. This is what we are learning in this course.
Which business skills may be necessary to open a motorbike maintenance service?
Let us say that the business idea is good and the new motorbike maintenance service brings many customers. After some months, the mechanic finds that he is too busy. He cannot find time to service all the bikes and do other business jobs as well. If he focuses on servicing the bikes, the business will not be done properly. If he focuses on business, servicing the bikes will not be done properly, and the customers will not be happy. This calls for organising skills. The motorbike mechanic hires two other people to help: one to be an assistant mechanic and one to keep the papers in order. This step means that a self-employed person has become a business organisation.
Second, a business idea is important. It says what the business is doing and how it is doing it. It also says what the business is selling, to whom it is selling and where it is selling. The business idea gives purpose and direction to the business. Without a business idea the business cannot go anywhere. For a business idea to be distinct other than its peers in the same field, it must be creative. Creativity and innovation along with its role in business will be later discussed.
Third, a Business plan: says everything that is important about the business. In this course, we are learning about all the important things that a business plan should require:
· Business idea,
· Organising,
· Operational plan,
· Finding money to start,
· How to plan money,
· How to make sales.
You have at first to set your business plan then your work plan. A good business plan makes it easier to start and run a business, and it will help the business to succeed. It is a good investment to spend time thinking, discussing and asking what to write in the business plan. This investment does not cost money; it only costs time. A sample business plan will be put together during this training course.
A business plan is also very important whenever you need to explain your business to others. Maybe you want to invite someone to be your business partner in order to do business together. That person will want to know in detail what the business is all about. Maybe you need money to start the business. You will need to find somebody willing to invest money in your business. That somebody will want to know exactly what you are planning to do with the money before deciding to invest. Your business plan will give all the necessary information and answer all common questions.
It is important to note that the work plan is not constant and must be continuously reviewed and updated to suit market developments and customer trends that are constantly changing. It should be flexible to ensure your business is successful and sustainable.
Fourth, money is necessary for all business activities. To begin with, you need some money to start a business. Then, your business needs to make money. This business money comes in when customers buy something from the business, paying for it. It is important to plan and know what to do with the business money.
How much money do you need to start a business?
It depends on the business. Some businesses, such as motorbike manufacturing factories, need a lot of money to start. Some businesses, such as baking bread to sell, can be started with very little money. It is also possible to start a business with no money.
How do you start a business with no money?
Someone else may be willing to give money, tools, supplies or other support to a starting business. Skills must be there first. The business idea and business plan must be there next. Then, finding money for starting a business will be easier. Money likes to find its way to starting good business!