How to be successful in business

.

Student: Bâlbâe IoanaROMANIA

Getting Started

Is business ownership right for you? An “entrepreneur” is a person who

starts his or her own business Self-assessment questions:

Are you a self-starter? How well do you plan and organize? Can you work long hours? How will the business affect your

family?

What Type of Business Do You Want?

A startup:• Follow your own dream

Buying an existing business:• You will have current customers

and a known track record of performance

Franchising: • Brand recognition reduces

marketing costs

Questions to Ask When Starting Up A New Business

Does the idea suit your personality and interests?

Will you use your own name to brand the business?

Will it be financially viable? Do you have startup money to invest? What will your monthly expenses be? Is there a current need in the

marketplace? Who are you competing with?

The Business Plano A “business plan” is a roadmap

that describes where you’re going and how you’re going to get there

o A guide to achieving your goals

o A tool to spark investor interest

o A document that helps employees understand the company mission

Key Elements of the Business Plan

Description of your products and services

Market and industry analysis that demonstrates the need for your business

List of competitors, including their strengths and weaknesses

Marketing strategy (sales approach)

Management team and operations plan

Financial analysis: the investment needed

Necessary resourcesIt is well know that starting

a business requires a bunch of resources:

- human resources- material resources - financial resources.

Those last ones, the financial resources, we can acquire it by getting a loan from the bank.

The Five “C’s” of Credit

How banks determine whether to loan you money:

Character: Credit history is very important! Capacity: What is your track record of debt

repayment? Capital: How long will personal resources

support both you and the business? Conditions: Current economic conditions Collateral: Assets the company pledges as a

source of repayment for the loan

Secured and Unsecured Lines of Credit

If you have trouble getting financing, a “secured line of credit” can be used to purchase equipmento Property or equipment is used as collateral,

which guarantees repayment

An “unsecured line of credit” does not require collateralo This is given as a personal loan to the

company’s officers, based on the individuals’ credit histories

Effective marketingA “marketing plan” serves

as a blue print for you to follow to get your products and services known and recognized. It has:Competitor and issue analysis:

challenges and opportunities facing the business

Objectives: What do you want to achieve?

Action program: A “to-do” listBudget: Detail expensesStrategy: The Four “P’s”

The Four P’s of Marketing Product: Describes

features and benefits Price: Lists prices and

pricing strategy Promotion: Tools or

tactics to achieve marketing objectives

Placement: Sales philosophies and methods

LicensingLicenses or permits are require to

operate certain types of businesses. One or more licenses may be

required from the city, State, county, and/or Federal Government.

Failure to obtain the proper licenses can result in fines or the loss of your business.

The application process varies according to jurisdiction; research the requirements in your area.

Bonding“Bonding” guarantees that a business will

perform its assigned tasks. A bond is issued by a bonding company after the business is thoroughly investigated

Surety bonds: The surety company agrees to compensate the customer if the business fails to pay a debt or meet an obligation

Fidelity bonds: Protect against the actions of employees (such as embezzlement)

You must have an agent or broker to guide you through the application process;

Zoning

“Zoning” specifies where residential, industrial, recreational or commercial activities can take place

Business owners must check on local zoning ordinances (e.g., a business may not be allowed in your home)

A variance is a request to make an exception to current zoning requirements

Copyrights, trademarks, and patents

Copyrights, trademarks, and patents all deal with intellectual property and how to protect it“Intellectual property” is a product based on an idea and it has some type of commercial valueIntellectual property includes a wide range of products, such as books, musical compositions, and works of art.

Accounting

Sound accounting and bookkeeping practices are essential to any business

Many businesses rely on an accountant to handle financial recordkeeping

Human ResourcesThe Human Resources function deals with

hiring and managing employeesBe specific when interviewing candidates

Avoid inappropriate and illegal questions during the interview

Provide competitive compensation and benefits

Maintain detailed employee records

Getting on WebA Website can attract customers and boost earnings

Sales through the Internet can take place internationally, 24 hours a day

A professional Website designer can develop your site at a relatively low cost

Promote your site through major search engines or a link exchange program

Final Thoughts

Build on every success

Learn from your mistakes

Take time to relax and reduce stress!

Thank you for attention!