Topic: Some things to consider before starting a business - page 11. (Read 5025 times)
before we get a business big or small, we should invest enough to build a business because that is our first money and your business knowledge is sufficient because if you have no knowledge about it you are sure to go ahead soon enough or get rid of everything You're struggling with war not a joke or that's why business should know what people need so that all of us will come to this really important knowledge and capital money before you start a business.
Well I just want to share some information regarding on how to start a business because as we can see, we are all want to have a stable business and we want to be a very good entrepreneur someday because if we're just working and working to earn money then if we can't work anymore we won't be able to sustain our needs anymore. I think this is worth reading especially those who are planning to build an ICO or a project. I've got this from my professor on college :
NOTE-REFERENCES : Webster’s College Dictionary (Random House/McGraw Hill)
What is an Entrepreneur?
Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk.
Initiative: Readiness and ability in initiating action.
Risk: The hazard or chance of loss.
NOTE-REFERENCES : The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
What Does it Take to Be Successful?
Think about WHO is going to want your product/service, what they will PAY for it, what you will NEED to carry it off, and how you will MAKE MONEY someday. That is, make a PLAN.
Success depends on
positive cash flow, growth,
and value creation.
Owners and investors who forget that tend to get “naturally deselected.”
The Importance of Value Creation
Value is delivered to your customers when you do something for them
Better
Cheaper
Faster
Cooler
Different
However, it is likely that none of these will work for long, so continuous improvement and innovation are essential.
Value is created for the owners when:
-You do more with their money than they could do with it themselves
-You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital.
-The present value of future cash flows exceeds the startup costs.
Value is created by:
-Exploiting proprietary physical resources
-Possessing proprietary knowledge or expertise
-Creating a new or improved product, process, or service
-Staying ahead of the competition through constant improvement and innovation
Planning for Success
-Don’t plan a business for today – Plan it for at least a year from now.
-Moore’s Law: Computing power will roughly double every 18 months.
-Bandwidth will continue to increase for most users almost ad infinitum.
-People will live longer and maintain active lifestyles far after retirement.
-Energy sources and consumption patterns will change drastically.
-The world will continue to be a very dangerous place.
How To Not Get Funded
-Have a half-baked idea
-Have a meatless business plan
-Can’t articulate your value proposition
-Can’t identify your market potential
-Can’t justify your sales projections
-Can’t show your investors an exit
-Can’t show your investors a reasonable expectation of a reasonable return on investment
-Don’t think about risk
-Take no risk yourself
-Don’t take time to do your homework
-Try to fund a “lifestyle” venture
Funding Your Venture
-The hardest funding to raise is the first funding. You are probably on your own.
-Later funding gets progressively easier depending on the results you can show to investors and what you need to fund.
-BANKS are probably not going to help.
-The best funding is INTERNAL funding (reinvested earnings).
-PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
Closing thoughts
picture source :https://wealthygorilla.com/23-wise-warren-buffett-quotes-on-success/
NOTE-REFERENCES : Webster’s College Dictionary (Random House/McGraw Hill)
What is an Entrepreneur?
Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk.
Initiative: Readiness and ability in initiating action.
Risk: The hazard or chance of loss.
NOTE-REFERENCES : The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
What Does it Take to Be Successful?
- “In entrepreneurship, luck is where preparation and opportunity meet.”
- “The idea is not what is important. In entrepreneurship; ideas are a dime a dozen. Developing the idea, implementing it, and building a successful business are the important things.”
- “Would-be entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have not yet identified a market need.”
- Somehow, someday… you are going to have to earn POSITIVE CASH FLOW. You need more than a revenue model (but you do need that). You need a VALUE model.
- Market share is great, but you can’t pay bills with it.
- You can do some financially stupid things to build market share.
Think about WHO is going to want your product/service, what they will PAY for it, what you will NEED to carry it off, and how you will MAKE MONEY someday. That is, make a PLAN.
Success depends on
positive cash flow, growth,
and value creation.
Owners and investors who forget that tend to get “naturally deselected.”
The Importance of Value Creation
- A successful business is one that delivers value to its customers and creates value for its owners.
Value is delivered to your customers when you do something for them
Better
Cheaper
Faster
Cooler
Different
However, it is likely that none of these will work for long, so continuous improvement and innovation are essential.
Value is created for the owners when:
-You do more with their money than they could do with it themselves
-You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital.
-The present value of future cash flows exceeds the startup costs.
Value is created by:
-Exploiting proprietary physical resources
-Possessing proprietary knowledge or expertise
-Creating a new or improved product, process, or service
-Staying ahead of the competition through constant improvement and innovation
Planning for Success
-Don’t plan a business for today – Plan it for at least a year from now.
-Moore’s Law: Computing power will roughly double every 18 months.
-Bandwidth will continue to increase for most users almost ad infinitum.
-People will live longer and maintain active lifestyles far after retirement.
-Energy sources and consumption patterns will change drastically.
-The world will continue to be a very dangerous place.
How To Not Get Funded
-Have a half-baked idea
-Have a meatless business plan
-Can’t articulate your value proposition
-Can’t identify your market potential
-Can’t justify your sales projections
-Can’t show your investors an exit
-Can’t show your investors a reasonable expectation of a reasonable return on investment
-Don’t think about risk
-Take no risk yourself
-Don’t take time to do your homework
-Try to fund a “lifestyle” venture
Funding Your Venture
-The hardest funding to raise is the first funding. You are probably on your own.
-Later funding gets progressively easier depending on the results you can show to investors and what you need to fund.
-BANKS are probably not going to help.
-The best funding is INTERNAL funding (reinvested earnings).
-PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
Closing thoughts
picture source :https://wealthygorilla.com/23-wise-warren-buffett-quotes-on-success/
For me of course you must consider the profit or the capital to be used because we all know that in businesses the first thing you must acquired is to have a capital. Later on the things you consider is always on the business and not on money. Be sure to have a better income and then a better strategy too.
Wow, what a nice write up. A lot of people believed the first thing you need is money. Whereas the idea is more needed with which one will be able to utilize the fund judiciously.more so, recognizing opportunity, and the needs of the environment is also very important as noted in the article. And acquiring the necessary knowledge needed to get the best out of the businesses.
Ofcourse, there are so many things to consider before starting a business. But for me there are 3 aspects that we should consider. First is financial capital. If you don't have enough money to start a business then better start to end your plan now. Second is location, if your location is not that very discoverable then it would not success. Third is the type of business that you want to enter. You should always be considerable with the type of business that you would like to enter to. Because as for my experience, I entered into a lot of business in my life, but most of it did not succeed maybe because I had a lot of competitors and I did not have much time to make my business profitable. So my suggestion for you is to think very carefully of your business that you want to enter.
I have dreams to start my own business in the future. I think before deciding what kind of business we want to build, we must do a lot of research first about the market that we are going to join in. Best thing to consider is the place where we want to have our business. For example, if we want to have a restaurant, I think it is best to consider what kinds of food we will offer. And if we want to build it in a place where many well-established restaurants are built already, we should think of a food that would make our restaurant unique so that customers will be eager to try and will be a regular customers in the future. Before building our dream business, we should know the ins and outs of business first to be able to be successful in the future.
Eventually the primary noticeable thing is to look after the monetary ability of the individual to set up that business
Thanks for the article, there are many books and articles on what makes a business successful, but I think that at the end of the day is all about the people that make the decissions and lead.
Adequacy of enough capital, suitable environment and population growth affects any business setup even btc trade
Im running my own business too.but before i conduct and start to operate,i make sure that i know the product well.i know the place,i have my target costumer and i have my own strategy to attract the costumer.i have a simple managing technique but i have a long researching before then.thats why now im almost successfully inverything
Thank you! I've been reading a lot of articles about how to start a business because I really want to start one.
I have a stable job but I want to have my own business as well.
This is very informative.
Of course you should plan before you get a business because when you plan you will get a beautiful business though you can build it in your own perspective. I have a stable job but I want to have my own business as well.
This is very informative.
Probably one of the most important lessons when opening a business is that you need to understand that most business are not profitable in the first year, you need to be ready to absorb all the costs, that is why you see that most of the business that declare bankruptcy were the ones that opened recently.
becuase from that, it's hard work and patience is the key because business is usually not too developed in the first year because everything has a process. even big companies like Mc donald, KFC, and so forth need time to grow into big business. so need to work hard and never give up to make a business. and do not forget to keep innovating so your business doesn't die like nokia 
Having one's own business can be the biggest dream anybody can get into as far as achieving financial freedom is concerned. And we need more entrepreneurs who are willing to take the risks in realizing their dreams...these are the people who are contributing big to the country's economy and can start a ripple effect because there is a big chance they can be hiring people too.
However, getting into a successful business is not that easy that is we have to be prepared while we are making some risks. Risks have to be mitigated so the impact is lessen while the business potential for growth is maximized. I always have a big and deep respect for people who are risk-takers but knows what they are doing.
The concept of being an entrepreneur rather than a business man can totally help us to achieve more rather than to just think on profit we should consider our target consumers and buyers that May give us rewards on our product and services. We should also maximazed our service and product , and we need to be open on development and growth that could possibly help us to bring good service and product for people.However, getting into a successful business is not that easy that is we have to be prepared while we are making some risks. Risks have to be mitigated so the impact is lessen while the business potential for growth is maximized. I always have a big and deep respect for people who are risk-takers but knows what they are doing.
Well I just want to share some information regarding on how to start a business because as we can see, we are all want to have a stable business and we want to be a very good entrepreneur someday because if we're just working and working to earn money then if we can't work anymore we won't be able to sustain our needs anymore. I think this is worth reading especially those who are planning to build an ICO or a project. I've got this from my professor on college :
NOTE-REFERENCES : Webster’s College Dictionary (Random House/McGraw Hill)
What is an Entrepreneur?
Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk.
Initiative: Readiness and ability in initiating action.
Risk: The hazard or chance of loss.
NOTE-REFERENCES : The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
What Does it Take to Be Successful?
Think about WHO is going to want your product/service, what they will PAY for it, what you will NEED to carry it off, and how you will MAKE MONEY someday. That is, make a PLAN.
Success depends on
positive cash flow, growth,
and value creation.
Owners and investors who forget that tend to get “naturally deselected.”
The Importance of Value Creation
Value is delivered to your customers when you do something for them
Better
Cheaper
Faster
Cooler
Different
However, it is likely that none of these will work for long, so continuous improvement and innovation are essential.
Value is created for the owners when:
-You do more with their money than they could do with it themselves
-You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital.
-The present value of future cash flows exceeds the startup costs.
Value is created by:
-Exploiting proprietary physical resources
-Possessing proprietary knowledge or expertise
-Creating a new or improved product, process, or service
-Staying ahead of the competition through constant improvement and innovation
Planning for Success
-Don’t plan a business for today – Plan it for at least a year from now.
-Moore’s Law: Computing power will roughly double every 18 months.
-Bandwidth will continue to increase for most users almost ad infinitum.
-People will live longer and maintain active lifestyles far after retirement.
-Energy sources and consumption patterns will change drastically.
-The world will continue to be a very dangerous place.
How To Not Get Funded
-Have a half-baked idea
-Have a meatless business plan
-Can’t articulate your value proposition
-Can’t identify your market potential
-Can’t justify your sales projections
-Can’t show your investors an exit
-Can’t show your investors a reasonable expectation of a reasonable return on investment
-Don’t think about risk
-Take no risk yourself
-Don’t take time to do your homework
-Try to fund a “lifestyle” venture
Funding Your Venture
-The hardest funding to raise is the first funding. You are probably on your own.
-Later funding gets progressively easier depending on the results you can show to investors and what you need to fund.
-BANKS are probably not going to help.
-The best funding is INTERNAL funding (reinvested earnings).
-PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
Closing thoughts
picture source :https://wealthygorilla.com/23-wise-warren-buffett-quotes-on-success/
Very good and informative. From a personal experience, I know that the biggest challenge to consider much when starting a business is the human resources. You can have all the other resources, stuffs, and a well planned business structure available yet lose your money and the business when the human resource is amiss. You cannot tell vividly the attitude an employee will put across after been employed. It demands a great deal of work to scrutinize and select the good few ones to be employed. NOTE-REFERENCES : Webster’s College Dictionary (Random House/McGraw Hill)
What is an Entrepreneur?
Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk.
Initiative: Readiness and ability in initiating action.
Risk: The hazard or chance of loss.
NOTE-REFERENCES : The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
What Does it Take to Be Successful?
- “In entrepreneurship, luck is where preparation and opportunity meet.”
- “The idea is not what is important. In entrepreneurship; ideas are a dime a dozen. Developing the idea, implementing it, and building a successful business are the important things.”
- “Would-be entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have not yet identified a market need.”
- Somehow, someday… you are going to have to earn POSITIVE CASH FLOW. You need more than a revenue model (but you do need that). You need a VALUE model.
- Market share is great, but you can’t pay bills with it.
- You can do some financially stupid things to build market share.
Think about WHO is going to want your product/service, what they will PAY for it, what you will NEED to carry it off, and how you will MAKE MONEY someday. That is, make a PLAN.
Success depends on
positive cash flow, growth,
and value creation.
Owners and investors who forget that tend to get “naturally deselected.”
The Importance of Value Creation
- A successful business is one that delivers value to its customers and creates value for its owners.
Value is delivered to your customers when you do something for them
Better
Cheaper
Faster
Cooler
Different
However, it is likely that none of these will work for long, so continuous improvement and innovation are essential.
Value is created for the owners when:
-You do more with their money than they could do with it themselves
-You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital.
-The present value of future cash flows exceeds the startup costs.
Value is created by:
-Exploiting proprietary physical resources
-Possessing proprietary knowledge or expertise
-Creating a new or improved product, process, or service
-Staying ahead of the competition through constant improvement and innovation
Planning for Success
-Don’t plan a business for today – Plan it for at least a year from now.
-Moore’s Law: Computing power will roughly double every 18 months.
-Bandwidth will continue to increase for most users almost ad infinitum.
-People will live longer and maintain active lifestyles far after retirement.
-Energy sources and consumption patterns will change drastically.
-The world will continue to be a very dangerous place.
How To Not Get Funded
-Have a half-baked idea
-Have a meatless business plan
-Can’t articulate your value proposition
-Can’t identify your market potential
-Can’t justify your sales projections
-Can’t show your investors an exit
-Can’t show your investors a reasonable expectation of a reasonable return on investment
-Don’t think about risk
-Take no risk yourself
-Don’t take time to do your homework
-Try to fund a “lifestyle” venture
Funding Your Venture
-The hardest funding to raise is the first funding. You are probably on your own.
-Later funding gets progressively easier depending on the results you can show to investors and what you need to fund.
-BANKS are probably not going to help.
-The best funding is INTERNAL funding (reinvested earnings).
-PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
Closing thoughts
picture source :https://wealthygorilla.com/23-wise-warren-buffett-quotes-on-success/
I don't think we need too much knowledge about it, we should have common sense and presence of mind to become a successful businesman
There are several things we need to consider before starting an example business:
1. capital preparation
2. preparing labor
3. procurement of raw materials
4. technical things in business
5. business marketing optimally
6. profit from business
7. risk from business
8. pay attention to business competition
9. Pay attention to business management
10. facilities and environment
Aside from that you have to make sure that you know what you are doing or when you do have a partner just make sure that you trusted each other well and one of you will manage that business. Just love what you are doing, and you'll gonna become successful here. 1. capital preparation
2. preparing labor
3. procurement of raw materials
4. technical things in business
5. business marketing optimally
6. profit from business
7. risk from business
8. pay attention to business competition
9. Pay attention to business management
10. facilities and environment
What type of business are you going to set up? It depends on specific criteria for specific businesses
There are several things we need to consider before starting an example business:
1. capital preparation
2. preparing labor
3. procurement of raw materials
4. technical things in business
5. business marketing optimally
6. profit from business
7. risk from business
8. pay attention to business competition
9. Pay attention to business management
10. facilities and environment
1. capital preparation
2. preparing labor
3. procurement of raw materials
4. technical things in business
5. business marketing optimally
6. profit from business
7. risk from business
8. pay attention to business competition
9. Pay attention to business management
10. facilities and environment
This is actually a good read and very informative especially for those who wants to start a business. Honestly I also wanted to put up a business of my own but I'm trying to read some articles and information about starting a business. You can't just wake up one day and say I'll withdraw money from the bank to start a business today, of course it needs to be premeditated at first.
Yes indeed, I think when you are planning to start up a business several things must be considered like , place , purpose and of course profit we cannot jhst go in the scenario without any plan about it,that why academic studies like Feasibility stusy and making a business plan is such a helpful things to secure a business.
A great topic to start the year! And a very well explained with thorough discussions of each element on things to be considered before starting into a business. In statics, 9 out of 10 start up businesses fail. And in my opinion it is all because of lack of preparation. Some people nowadays just put up a business without thinking of both internal and external factors. Not everything can be put into passion. You have to be smart and know how to minimize the rism of the business before establishing it.
Very well explained really. Starting a business is not a small thing to do at all as it requires a lot and without knowing some of these things, some people have ended up finding themselves in a situation where they just see that nothing is moving in their business, but with articles like this, it is so easy to get going and at least know some things you will have to watch out for first before starting your business.In my experience, I have seen some of my friends do consider a lot of things for setting up their business and most of the points discussed were focusing on how to face the negative situations. I mean to say, we need to concentrate on how to manage an emergency situations then we can manage any business effectively.
We need to consider positive situations also but when we are mentally prepared for negative situations then we can manege any business profitable all the times regardless of what are hurdles we may face.
Well for me, I really love to share two things I think the best to do before making a business, which are :
1. Learn about your business before make it. The best way to make this easy is to do business in things that you know well and love. If you already master 1 business, then maybe you can grow it and expand it to other kind of business.
2. Backup money. For the early months, your business maybe wont goes well. So you need extra money to pay your worker fees or other fees like electricity, water, food, gases, etc. This is important. Because if you don't have some, it can make your in-progress business collapse.
Well, this topic does give me some thing to learn, as it is a lesson from a reliable source. Thanks very much for sharing.
1. Learn about your business before make it. The best way to make this easy is to do business in things that you know well and love. If you already master 1 business, then maybe you can grow it and expand it to other kind of business.
2. Backup money. For the early months, your business maybe wont goes well. So you need extra money to pay your worker fees or other fees like electricity, water, food, gases, etc. This is important. Because if you don't have some, it can make your in-progress business collapse.
Well, this topic does give me some thing to learn, as it is a lesson from a reliable source. Thanks very much for sharing.
Well I just want to share some information regarding on how to start a business because as we can see, we are all want to have a stable business and we want to be a very good entrepreneur someday because if we're just working and working to earn money then if we can't work anymore we won't be able to sustain our needs anymore. I think this is worth reading especially those who are planning to build an ICO or a project. I've got this from my professor on college :
NOTE-REFERENCES : Webster’s College Dictionary (Random House/McGraw Hill)
What is an Entrepreneur?
Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk.
Initiative: Readiness and ability in initiating action.
Risk: The hazard or chance of loss.
NOTE-REFERENCES : The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
What Does it Take to Be Successful?
Think about WHO is going to want your product/service, what they will PAY for it, what you will NEED to carry it off, and how you will MAKE MONEY someday. That is, make a PLAN.
Success depends on
positive cash flow, growth,
and value creation.
Owners and investors who forget that tend to get “naturally deselected.”
The Importance of Value Creation
Value is delivered to your customers when you do something for them
Better
Cheaper
Faster
Cooler
Different
However, it is likely that none of these will work for long, so continuous improvement and innovation are essential.
Value is created for the owners when:
-You do more with their money than they could do with it themselves
-You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital.
-The present value of future cash flows exceeds the startup costs.
Value is created by:
-Exploiting proprietary physical resources
-Possessing proprietary knowledge or expertise
-Creating a new or improved product, process, or service
-Staying ahead of the competition through constant improvement and innovation
Planning for Success
-Don’t plan a business for today – Plan it for at least a year from now.
-Moore’s Law: Computing power will roughly double every 18 months.
-Bandwidth will continue to increase for most users almost ad infinitum.
-People will live longer and maintain active lifestyles far after retirement.
-Energy sources and consumption patterns will change drastically.
-The world will continue to be a very dangerous place.
How To Not Get Funded
-Have a half-baked idea
-Have a meatless business plan
-Can’t articulate your value proposition
-Can’t identify your market potential
-Can’t justify your sales projections
-Can’t show your investors an exit
-Can’t show your investors a reasonable expectation of a reasonable return on investment
-Don’t think about risk
-Take no risk yourself
-Don’t take time to do your homework
-Try to fund a “lifestyle” venture
Funding Your Venture
-The hardest funding to raise is the first funding. You are probably on your own.
-Later funding gets progressively easier depending on the results you can show to investors and what you need to fund.
-BANKS are probably not going to help.
-The best funding is INTERNAL funding (reinvested earnings).
-PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
Closing thoughts
picture source :https://wealthygorilla.com/23-wise-warren-buffett-quotes-on-success/
For me, if you are planning to build up a business even if its big or small be sure that you have a capital that support your to your business. secondly you have a knowledge on how to manage an effective business, therefore you are hard working not during there is costumer but also when there is no.Thirdly you are willing to accept all attitude of your costumer probably there are some costumer that boastful sometimes in that point you are also open-minded for that particular case. thanks.NOTE-REFERENCES : Webster’s College Dictionary (Random House/McGraw Hill)
What is an Entrepreneur?
Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk.
Initiative: Readiness and ability in initiating action.
Risk: The hazard or chance of loss.
NOTE-REFERENCES : The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave, Editor. John Wiley and Sons Publishers, 1997.
What Does it Take to Be Successful?
- “In entrepreneurship, luck is where preparation and opportunity meet.”
- “The idea is not what is important. In entrepreneurship; ideas are a dime a dozen. Developing the idea, implementing it, and building a successful business are the important things.”
- “Would-be entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have not yet identified a market need.”
- Somehow, someday… you are going to have to earn POSITIVE CASH FLOW. You need more than a revenue model (but you do need that). You need a VALUE model.
- Market share is great, but you can’t pay bills with it.
- You can do some financially stupid things to build market share.
Think about WHO is going to want your product/service, what they will PAY for it, what you will NEED to carry it off, and how you will MAKE MONEY someday. That is, make a PLAN.
Success depends on
positive cash flow, growth,
and value creation.
Owners and investors who forget that tend to get “naturally deselected.”
The Importance of Value Creation
- A successful business is one that delivers value to its customers and creates value for its owners.
Value is delivered to your customers when you do something for them
Better
Cheaper
Faster
Cooler
Different
However, it is likely that none of these will work for long, so continuous improvement and innovation are essential.
Value is created for the owners when:
-You do more with their money than they could do with it themselves
-You invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital.
-The present value of future cash flows exceeds the startup costs.
Value is created by:
-Exploiting proprietary physical resources
-Possessing proprietary knowledge or expertise
-Creating a new or improved product, process, or service
-Staying ahead of the competition through constant improvement and innovation
Planning for Success
-Don’t plan a business for today – Plan it for at least a year from now.
-Moore’s Law: Computing power will roughly double every 18 months.
-Bandwidth will continue to increase for most users almost ad infinitum.
-People will live longer and maintain active lifestyles far after retirement.
-Energy sources and consumption patterns will change drastically.
-The world will continue to be a very dangerous place.
How To Not Get Funded
-Have a half-baked idea
-Have a meatless business plan
-Can’t articulate your value proposition
-Can’t identify your market potential
-Can’t justify your sales projections
-Can’t show your investors an exit
-Can’t show your investors a reasonable expectation of a reasonable return on investment
-Don’t think about risk
-Take no risk yourself
-Don’t take time to do your homework
-Try to fund a “lifestyle” venture
Funding Your Venture
-The hardest funding to raise is the first funding. You are probably on your own.
-Later funding gets progressively easier depending on the results you can show to investors and what you need to fund.
-BANKS are probably not going to help.
-The best funding is INTERNAL funding (reinvested earnings).
-PRIVATE EQUITY is the current buzzword for the major capital source for business ventures.
Closing thoughts
picture source :https://wealthygorilla.com/23-wise-warren-buffett-quotes-on-success/
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