Forkids Business Guidelines

Let’s look at what are the most common mistakes entrepreneurs often make when creating your business or company.

Common mistakes to which we must pay attention and avoid, if we start a successful business:

Not having a business plan

A common misconception among entrepreneurs is to obviate the development stage business plan.

Many entrepreneurs do not give due importance to the business plan, and this often results in a miscalculation of investment, excessive costs, a lack of direction, the need of having to improvise all, in a undue delay to create the business, to get the first customers, a lack of organization, control, etc.

Not knowing customers well

Many entrepreneurs do not have very clear on what type of consumers to go to target their products or services and those that do not perform a proper investigation and analysis of its characteristics.

Do not analyze it needs, desires, tastes, preferences, habits, etc., And this is reflected in the design of products that fail to meet the needs of consumers, distribution channel design cannot efficiently distribute consumer products design of media that are not effective on them, and other strategies that fail to perform well in their target audience due to lack of knowledge on them.

Underestimating the competition

Many entrepreneurs underestimate the competition, do not give due importance, not because they take the time to investigate it and analyze it.

They think that having a unique and innovative product, can easily circumvent competition. But do not take into account is that as your business or company starts to become known, the competition will know them, and not stand with folded arms.

And if we have not previously taken the time to study it and analyze it, it will be difficult to design strategies that allow us to address them promptly.

Overoptimistic

The starting a new business always carries an enthusiasm and optimism of the fact themselves embarking on a new project, but when this enthusiasm or optimism is excessive, the entrepreneur can lose objectivity.

Resulting in a lack of realism in your projections, overestimating revenues and underestimating costs (miscalculation of investment), or it can also mean inadequate staffing (thinking it could do everything yourself) or an excess of investment expenses (making money later end missing).

Hire untrained staff

The entrepreneur often think you can do and solve everything, and only need to hire staff just to follow him in his decisions.

Not considered that to create a solid business needs to have even trained people are smarter or know more than one in a particular topic or aspect of the business that are complementary to each other and thereby achieve a good team.

Overspend

Because of the enthusiasm that crosses the start to build your business, it usually does not measure well their expenses, and buy everything at your hand, or buy more expensive products, until it finally runs out of capital before we even start their business.

Not take into account that many of the goods, wax or equipment purchased, may not be needed initially, and later purchase. Or do not take into account that if you do not hurry to buy the first thing you are, always find a place where they can acquire the same at lower prices compared with those of others.

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To undertake a successful business or company must have certain requirements. These requirements are five:

1. Technical knowledge

They have knowledge that will enable the entrepreneur to create, manage and grow your business or company.

If not held, or lack of some, can compensate for this by hiring qualified personnel, or start a training process.

2. Opportunity

To create a successful business, you need to first find a good opportunity.

To detect an opportunity, you need business acumen and analytical skills to differentiate the possibilities of the real business opportunities.

3. Personal contacts

Personal contacts to enable the entrepreneur to have greater opportunities to penetrate markets, greater opportunities to market their products, access to financial resources, etc.

Or in any case, the possibility that we submit our personal contacts other contacts that they possess, such as suppliers, customers, other business owners, etc., We facilitate the creation and development of our enterprise.

4. Resources

Resources to be processed or used, allows us to produce or market our products effectively.

Obtaining good resources (financial, technological, human, etc…) Is another of the keys to success in building a business?

5. Customers with orders

The reason for a business or company is meeting the needs of consumers.

And client needs, which may be satisfied by our products or services, the business, could not succeed.

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The myths about entrepreneurs are beliefs or misconceptions that exist about them.

These beliefs or misconceptions can adversely affect a person, forming a kind of brake or excuse for not decide once and for starting their own business.

Therefore, a primary task in those who wish to have your own business and become an entrepreneur is to eradicate these myths.

Let us see what are the 3 main:

Was born as entrepreneurs

Is thought to be an entrepreneur, you need certain skills and abilities that a person acquires at birth.

This myth stems from the image projected by an employer to possess distinct characteristics and very different to those with other people.

It is true that some people genetically at birth acquire certain characteristics that allow them to perform better as entrepreneurs, but the truth is that many successful entrepreneurs were not born with these characteristics, but which were acquired on the road.

It is also true that to be a successful entrepreneur, you need certain skills and abilities, however, does not mean that anyone can acquire or develop these skills or abilities.

Businessmen do not analyze, just act

Common belief that entrepreneurs are people who act and make decisions in haste, without evaluating or analyzing while such acts or decisions.

This myth has its origin in the image you project is often an entrepreneur to be an active person, which performs several functions, and took several decisions in a short period of time.

However, the truth is that successful entrepreneurs themselves and analyzed to evaluate their actions and decisions, but his active personality and experience in business, enabling them to commit acts, and make decisions quickly and although often takes considerable time to ponder their decisions, for example when making a business plan which to plan and assess the viability of a business or investment.

The employer has no preparation

It is thought that entrepreneurs are people unprepared and sometimes as a result, they project a negative image, as those who failed to complete their studies or who were dismissed from their jobs.

This myth stems from the fact that many of the businessmen who became famous, they did not finish college, even some of them failed to complete high school.

But what many do not notice is that these successful entrepreneurs may not come to have a title, but were prepared and trained to do business, either on their own, reading books or publications, with a tutor, attending courses or seminars.

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An employer, in simple terms is a person who creates or acquires a business or company, then, is dedicated to working on it and makes it grow.

In more elaborate terms, an entrepreneur is a person who meets the following process:

1. Identifies an opportunity

Firstly, an employer has enough vision to identify a business opportunity.

2. Take risks

Having identified the business opportunity, the employer reports, investigates and analyzes this opportunity, and if it finds that the proceeds of such business opportunity could be profitable, take the necessary risks, and takes responsibility for its decision.

3. Gather resources

Once the decision to start her business, the employer quickly gathers the necessary resources (financial, technological, human, etc.) That allows you to start your business.

4. Innovate

Then use your creativity to design a unique product that offers differentiation from competitor’s products, and to meet unmet needs of consumers.

5. Develops processes

Subsequently, the employer creates processes or systems that make your business run efficiently. Processes or systems on how to acquire their inputs, such as produce their products, how they distribute to the public, such as promotions, etc…

6. Lead

Once you have started your business, the employer exercises its leadership to lead and motivate their employees to achieve business goals.

7. Contributes to the community

And finally, the employer contributes to the community, providing either a good or service useful to consumers, stimulating the economy or creating jobs, creating new jobs.

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Let’s look at 4 types or groups of people are classified according to how they have to generate their cash incomes.

Employees

Employees are people who generate income from a job, i.e., make money by working in a business, company or institution from a third party.

Employees are characterized by people who seek security and economic stability, and that it is willing to work long hours a day for several years.

Even today, due to frequent layoffs occurring in companies, and the volatility of pension systems, such security does not seem so real.

The advantages of being an employee lie in the confidence to have a steady income and regular, and the benefits you receive as a worker.

While the disadvantages are the instability that now have contracts in companies and retirement systems and the need to meet a schedule, working for several hours, and the possible limitation of one’s true potential.

In terms of generating money, can be used with great income and benefits as the executives of large corporations, if however, the vast majority of employees difficult to become rich or wealthy.

Freelancers

Independent professionals are people who generate income from the making of a particular office, that is, they get money for certain work or activities that benefit others.

Independent professionals are characterized as people who like to do things on their own. To depend on themselves to generate income, often meticulous, perfectionists at what they do.

Example of independent professionals are lawyers, doctors, carpenters, agents, consultants, etc.

The advantages of being a freelancer is the ability to rely only on yourself to generate revenue, and the ability to work on something that one would like to do.

The disadvantages are that by specializing in only one activity, and having to work full time on it, rarely an independent professional has the training and time needed to find other ways to generate income.

In terms of generating money, a freelancer is often generate more money an employee, however, as they, a small percentage of independent professionals get to become rich or wealthy people.

Business owners or entrepreneurs

Business owners or entrepreneurs are people who generate income from a business or company they own, that is, get money from the profits they generate their own business or enterprise.

Business owners or entrepreneurs are characterized by enterprising people who like to be around people, and delegate responsibilities.

The advantages of being a business owner or entrepreneur lies in being his “own boss”, the possibility of developing one’s creativity, you can control your own schedule, the excitement of adventure to create and grow a business.

The disadvantage is the risk that might start a new business or company, and that their businesses or companies usually depend on features that he makes, may cease to exist if it is not present.

In terms of generating money, a business owner or entrepreneur, you can get large sums of money, but not so much an investor could do this because a business owner usually cannot stop working on your business because its operation depends on it, so I do not have time to create or invest in other businesses.

Investors

Investors are people who generate income from the investments made, i.e., they get money from the proceeds of their investments.

Investors are people who invest in securities (such as stocks or bonds), real estate and business; where unlike a business owner or company, the investor does not usually work on it.

Investors are characterized by people trained in economics, marketing, finance and legal, able to anticipate changes in the market that allows them to spot opportunities.

The advantages of being an investor lies in the ability to accumulate large amounts of money and time, have some free time to pursue other activities.

In terms of generating money, an investor can end up accumulating large sums of money. Most wealthy people in the world tend to be within this category.

Endnote

Once we know the 4 types or groups of people according to their way of generating income, we must ask:

* What type or group we belong?
* Which of them should actually be, taking into account our true abilities and attitudes?
* Which of them would like to join?
* What skills and abilities we develop to be in that group you would like to join?

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One of the concerns of every entrepreneur is to build own business while being employed, in fact that is recommended by many experts: try to build your own business while you have a source of income from employment. Only it is quite complicated and difficult to set up this scheme if not taken into consideration certain aspects before jumping to that idea. In the worst case could end up unemployed with a medium build business.

To this end a group of experts offers the following tips:

Find all the information possible regarding the business plan to mount. Investigate enough, is not limited to nothing more than Internet. Assessing whether the burden to be shared between your enterprise and employment.

Prepare a business plan. Know exactly where you’re getting and what are your goals for the short and long term. Put these things in writing to clarify and keep focused. Create an efficient system of daily monitoring of the activities of the company or enterprise.

Do not rush. It’s only when you start your entrepreneurial resources for starting and when to start working. Work with confidence and competent staff.

Consider ways to make their employees feel committed to the business. A minority stake in the company or reductions are advisable. Measure the financial results as well as other indicators such as customer satisfaction and employees.

Do not try to hide your employer that you set up your own business because the truth may appear at any time. If your priority is employment leave it clear that his superiors will not be losing opportunities for advancement and promotion.

Do not use the structure of employment to develop their venture. Receive an occasional phone call is acceptable, but not solving things is hours of your business while on work time.

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