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How to start business? (Final Update)

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3. Marketing

Some well-known entrepreneur think we are now in the marketing age, meaning that marketing is a key function which dramatically drives a business to a gain or loss. I totally agree it.

For example, you want to sell a kind of bottled fresh milk. How could you get some market initially when there are so many existing players? To put advertisements (newspaper/magazine/Internet etc) indicating the unique advantages of your product, to set a few promotions to let more people know your product and perhaps you can give out free products to potential customers.

Thousands of marketing strategies are out there. You need to take some time to learn some and apply some in your real business. However, you have to remember that every cent you spend on it is definitely at the right place.

4. Human resource

You should hire some staffs who love the job rather than the salary. They surely will pay most of their efforts on their duties and their passion may motivate other people in the company and let all work more efficient than never ever.

If you are doing your business with partnership, only partners working together at the beginning will be a nice method too because it could help you spend less on payroll and know more on the enterprise. If you do need some extra manpower, just hire a proper number of employees. You must be carefully on this because salary is a fixed cost in most organizations. That means the more you hire, the more fixed expenses you hear to pay monthly, and you will feel very hard to cut it down.

Once you completely get those four points above and know how to implement them, I think you could do your real action now-to register a company and a related license/permit.

I’m sorry that I can’t explain too much on this because the rules and regulations are different in most countries. However, I think you could have your detailed information from Internet. Of course, go to have a consultation with chartered accountant or other professionals will be a good idea too.

I’d better to stop my article here since I can do nothing from this point. I wish my contribution could have some value for somebody.

Have a nice day!

How to start business? (2)

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Having a sort of options, we need to think about profit. Most business is profit-driven and most people are not willing to see any losses. To do like that, we have to learn how to pick up a good product/service and start the very first business:

1. Demand and Growth

In some term, the demand is the market. If the demand for a product/service is very high, I don’t think the business will go down. However, it always has high competition too and that will definitely rise up a price war. Your profit margin will not be able to follow your target for a long way. Thus, a product/service has a low demand figure currently and a high growth rate is great.

2. Budget

Any business should have a budget, not only for profit, but also for expense. The most limited resource to people who just start to do business is money and unfortunately it is related to everything. So we need to make a budget first and try our best to get enough money into capital in one side, control all expenses in the other side.

To get a budgeted gross profit figure is not a difficult thing because once you correctly know the demand of your product/service and set your profit margin, it almost closes to you.

Well, the budgeted expense is a tough thing. However, you should make sure that the monthly expense is at least less than 1/3 of your initial capital so that you have a 3-month buffer period to promote and sell your product/service without serious financial issues.

Savings is always welcomed. You can order your goods in bulks to have some discounts and lower transport charges; you may only hire several guys, including yourself, to work on the business; you may rent a small unit as your office. To cut the words short, please maximize the value of your money at this particular time.

(To be continued…)

How to start business? (1)

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Many people may not have a wonderful employment. The tough boss, the complicated office politics, the troublesome target are small parts which make people upset and unhappy. That’s why more people nowadays start thinking about open their own business because they could override the matters in office and control some others and the best part is they’re able to realize their dreams by their hands.

However, things are never going to be so easy. I think to do some planning at the initial stage is necessary. I just roughly list out some essential elements we should take into account. But today I only want to talk about one of these elements is product/service.

To talk about it and to make it work are totally different. To start a business, we have to clearly know which kind of product/service we will carry out. For a business, product/service is the most important thing and of course, it’s tiresome too.

My friends always complain to me that there’s nothing harder than choosing product/service to sell. Well, that’s a big truth. Different sorts of people drive different sorts of demand and the demands push out the products/services. How to choose one product from billions options? You should know your interest and then profit target.

You may be surprised that why I put the interest at the first position. Apparently my reason is simple, just looking back to see why you want to be a boss. If you get great profits from sacrificing your happiness, what you earn is merely some good-looking paper. If you could earn money and have happiness at the same time, you will be the richest man in the world. So now you need to go to find something you’re interested in. Please be noted the ‘something’ doesn’t mean one product/service, it’d better to be a group which allow you to filter out later.

(To be continued…)

The world of products from my eyes

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Just noticed by Keychain Made in China from Vivian’s blog,the situation is most of products are from China,either good quality or the adverse.

Look back to my childhood,my family has a colour TV.At that time,not every family can afford to buy a TV,saying nothing of the colour one.I mean I feel lucky.It is a China famous brand namely “金星”(Golden Star).We used it for more than 15years and then it was retired.Once we open it,we saw most of components were from Japan.I think at that time a lot of so called ‘national products’ were just assembled in China,not MADE.By the way,in the past 1990s,we do believed those ‘Made in Japan’ products,right?!

Of course,time is passing fast.Many of companies and manufacturers were set up in past a few years.With bulks of research and development,some of those had standed in the brands’ world such as Lenovo,Haier,Sinopec and Huawei-They are working at some high-end industries and creating more and more miracles as we can see.

But during the time I stay abroad,I still see many of low quality/faked products are around.And some ugly businessmen  repacked those products to be ‘Made in Japan’ or ‘Made in USA’ to cheat those ignorant consumers to buy at ‘a top value’.How shame it is!

So now I just support those reliable brands which I mentioned above to approve the good quality to my friends and at the same time,I resist those unknown products from China too.

How is the world now?How about the products all over the world now?Which we can trust to use,which we can’t?!As a smart consumer,open your eyes and see.You have to make your brain working for shopping all the days now.

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