Many of us want to be independent and have our own business, but we have no idea what to invest in, or how or where to start. Therefore, we give you some tips and tell you about projects that might interest you to undertake.
Part of a premise that must be very clear and is that you and no one else will be the one who makes the decisions about the opportunities presented to you. Finally, who has to work and move for things to work is you.
For that reason, it is that it has to avoid to the maximum to compare itself with the others, but eye! We are not telling you to stop inquiring or not to report on how is the market sector where you want to undertake, quite the opposite, this is very important because for example, if the economic situation tells us that the hydrocarbons sector is not at its best moment and analysts say that the ideal is to stop investing in oil, well we must abandon the ship and take another course.
When we talk about comparing our business with others, we refer to the image of success or failure that you may have of your neighbour, friend or relative. And this is not the most appropriate way.
You have to think about yourself and your abilities, if you are going to compare it do not do it superficially, because your family member may have gone wrong with the business because he could not manage it and it was never organized, but the opposite is true for you, because in that sense it is more disciplined. So, take a risk.
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How to know if the idea you have in mind can become a business?
It is the initial notion of the company that you want to create. This initial idea presents essential characteristics such as the identification of a need or problem to be solved, which are met through a product or service with which an economic benefit is expected.
It seems difficult, however, imagining is free, because the ideas never end and usually, we build them daily, what happens is that we force ourselves to have them and these should arise naturally just as happens to the Children, therefore, it is best to relax and let them flow.
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- Associate with the creation of a product or service (be it physical or digital).
- Having people who have a real need in which they can validate their satisfaction.
- Generate income.
- It sparks your enthusiasm and motivate you.
- Be something in which you are committed.
- Must have legal aspects allowed.
Think that these characteristics require time and effort so that they finish well and are achieved. If you still think you are confused about what you want to do and you do not have clarity in your business idea, we recommend that you make a determination based on the things you like, the needs or problems of others or your work experience.
Tips to start your own business
Because putting yourself in the task of undertaking can be very stressful, we leave you some recommendations of Entrepreneur:
- Discover your skills.
- Write a business plan.
- Identify your market (refers to the target audience).
- Establish a budget.
- Find an investor (whether you use your savings, credit cards, loans or donations).
- Determine the legal structure.
- Register the name of the company.
- Take advantage of free resources (for example, social networks).
How to calculate the profitability of your business
If you have a business or you want to start one, you have to take into account some indicators in order to have an estimate of its profitability in order to avoid unexpected surprises.
The survival of any business lies in its viability and this makes calculating profitability is a need that many entrepreneurs do not even consider because they do not know the tools or indicators for it.
A useful tool
To calculate profitability, you must apply some indicators to the accounts of your company, that is, write numbers. You must bear in mind that a simple indicator will not guarantee anything at 100%, but it will become a very useful tool. One of the important values for calculating profitability is the threshold of profitability, fixed from a key figure, the stalemate.
Calculate the dead point
The dead point is nothing more than the number of sales, units or services billed to cover the fixed costs. From that amount of sales, your business will have benefits, all with the logical variations that businesses have over the months, mainly those related to variable costs.
The threshold of the profitability formula
To calculate the profitability, we define the threshold or neutral point under the following formula: RU = CF / (P-CV). That is, the break-even point is equal to the fixed costs divided by the price per unit minus the variable cost per unit.
With this resulting value you will know the minimum billing with which a company is viable. You must bear in mind that if your billing is less than that number, you will not be able to calculate the profitability, simply because there will not be.
Tools for calculation
If you have not been clear or do not have the experience to calculate this threshold of profitability, there are applications in Excel for free use in the network with which you can calculate the profitability of your business and simulate different behaviours depending on production levels or prices per unit.
In this sense, to calculate the profitability of your business you need the figure of economic benefit that is equal to the income minus the non-financial costs, that is, all except financial interests or taxes. The total asset is the group of assets of the company and collection rights.
If you need to have more control of your bookkeeping and finances, here at Nudge Accounting you will find a professional team to help you lower expenses in possible mistakes your current finance plan may have. It is essential that you update your processes in order to expose your business in a way that is appealing for people and make it go head to head with other businesses that are your competitors and ensure success in the long-term.