Most business owners say that one of the hardest but most profitable ways to make money is to start a business. It takes a lot of dedication and hard work to become a successful business owner. However, success generally also depends on the quality of business practices and personality that have become common characteristics of successful entrepreneurs. These characteristics can be seen in the principles of business establishment in terms of daily business activities as well as in decision making. The guide below will tell you what it takes to set up a successful business and get your business back on track.
Step
Part 1 of 3: Finding a Business Mindset
Step 1. Do what you already know
Start a business that is focused on the experience you already have. Personal hobbies or previous work experience are two kinds of experiences that are ready to be turned into a career. The idea of a business may be very profitable in theory, but in fact you can only get into the business that you are really interested in. Business profits are important, but this is not a factor that should move your heart to start a business.
Your experience working as a barista or waiter in a coffee shop can be your motivation to set up a small coffee business. You already know a lot about this field and not only can you apply your knowledge of coffee, but you also have a passion for it
Step 2. Set a clear goal
Even if your business goal is to focus on money, the most successful business owners don't have a goal of making a lot of money. Think of a clear business goal in building your business from scratch. This goal should be something intangible, such as creating jobs for others, overcoming problems in everyday life, or realizing your passion. That is, in addition to money, create a major goal that is bigger than that.
For example, you might want to be able to serve every customer good coffee, or form a community at a coffee shop so you can meet and spend time with friends
Step 3. Instead of goals, define your first step
Start with a business model that can be up and running quickly but has a low budget. People often think that small businesses are started with very high goals that require large capital and investors, but a successful business is one whose model can be applied to businesses of any size. This is proof to potential investors that your idea is proven to make money and increases your chances of receiving investment, if that's your goal.
For example, you want to start a large business that supplies coffee beans, imports, brews, and packs them yourself for sale or serving to your shop's customers. Instead of waiting for donations from investors to buy all this equipment, start with a small coffee shop first, then try to source your coffee beans. From here you start the step in building a brand
Step 4. Create a support network
One of the most important parts of having a successful business is letting go of your own ego and asking others for help. You need advice from a group of business associates or other professionals who share your goals. Get in the habit of hanging out with people who are experienced and successful. Soak up their ideas and enthusiasm.
Search the internet for tips on how to build a small business; The web is very rich in information. But make sure you get the information from a trusted source
Step 5. Find a mentor
A good mentor is someone who has been in this business and is successful. You can look for family members or family friends who are already successful in business. Mentors can provide you with any information, from how to manage employees to filling out the correct tax forms. Their knowledge comes from direct experience so it will help you more than any other source of information.
You don't have to find a mentor in the same business field as you. For example, you don't have to look for a mentor as a coffee shop founder, but you can also be a Padang restaurant owner
Part 2 of 3: Running a Business Efficiently
Step 1. At first, focus on your main operation
Avoid taking every different business opportunity that comes your way. You're better off being good at one area than being mediocre in five. Also avoid deciding to expand your business or take on other projects for additional income outside your main business. Focus on one area so that you can mobilize all your resources and be more productive in that area.
Maybe you see another coffee shop selling coffee knick-knacks, and you're tempted to copy them. Unfortunately, this will make you forget your main goal, which is making coffee. You also risk reducing your ability to focus on coffee quality
Step 2. Keep detailed records
The costs and revenues of every transaction made by your company should always be recorded. Knowing where every penny of your money goes, and where the biggest income comes from, will make you better able to detect impending financial difficulties. You also know better which costs you need to reduce, or which income you need to increase.
In the coffee example above, make detailed notes on the amount of coffee you buy-and-sell during a given month and the amount. This allows you to identify whether the price of coffee beans continues to rise, for example, and makes it easier for you to decide whether to increase the price of your coffee, or switch to another supplier
Step 3. Reduce debt as much as possible
Think about what you can do to save even more money. You could try using second-hand equipment, look for a less expensive form of advertising (such as flyers instead of newspaper ads), or negotiate with suppliers or customers payment terms that are more favorable to you in order to save a few bucks here and there. Continue this habit of saving money and spending money only when you have to.
For example, you can use a used coffee grinder (as long as it's still usable) and get as many supplies as possible from the same supplier (straws, cups, cup lids, etc.)
Step 4. Think about supply chain efficiency
Costs and profits depend on proper supply chain management. Well-established supplier relationships, managed delivery, and consistency in providing timely service to customers, can increase your profitability as well as your reputation. Good supply chain management also helps you make the most of wasted resources, such as labor or coffee raw materials.
For example, your coffee shop should have good relationships with coffee bean suppliers and have an organized supply chain structure. This is very important to make sure you don't run out of coffee while receiving a more scheduled delivery of coffee beans, being the first to try a new type of coffee bean, or negotiating a lower price
Step 5. Find strategic partners
Just like a good mentor, a strategic partner can encourage you to grow your business. Strategic partnerships can be created by introducing your business to suppliers, complementary businesses, or technology providers, as long as they benefit you. Good relationships with many other companies mean free promotions for each party, lower costs of doing business, or opportunities to expand into new markets, depending on the partner you choose.
For example, your coffee shop could benefit from strategic relationships with suppliers who give you discounts or new coffee bean products. In addition, strategic partners that complement your business, such as a pastry shop, can help you and those partners reach new customers and increase revenue. Do this by recommending each other, offering your partner's business products, or vice versa
Step 6. Make sure you pay off every debt
Be realistic in assessing your ability to repay the debt that arises. Starting or running a business is risky, so minimize debt by only taking what you really need. Be sure to change your cash flow so you can pay off debt as quickly as possible. Prioritize debt repayments over anything else.
For example, if you borrow a capital of Rp. 20 million to open a coffee shop, don't expand your product range or buy a new coffee grinder until you have paid off the entire loan
Part 3 of 3: Growing a Business
Step 1. Refine your business offering
Create a 30 second promotion that briefly and efficiently describes your business, including information about your goals, services/products and your goals. By refining your business offering frequently, it will be easier for you to sell your products to customers and when you want to invite other investors into your business. If your business can't be explained in 30 seconds, you need to revise your business plan.
For your coffee shop, describe the business you do (selling coffee), the services you provide (the type of coffee you sell), the aspects that make you special (e.g. the coffee you sell is rare or traditional), and your next plans (expansion to new locations, other products, etc.)
Step 2. Earn a reputation for good service
Receiving a positive reputation is like a free promotion; customers will spread your business word of mouth to their friends and will come back often. Face each success or failure as if your business depended on it. This means that you must be consistent with every business action and every interaction you have with customers.
At your coffee shop, always serve freshly brewed coffee so your customers always get a really good product
Step 3. Monitor your competitors
Pay attention to their ideas, especially when you are just starting a business. Chances are your competitors are doing business right. If you know how, you can apply their ideas to your own business. You also avoid the trial and error process that you have to go through.
One of the best ways to start a business is to look at the pricing strategies installed by competitors. It's a lot easier to sell coffee at a similar price to your competitors than to experiment with setting different prices
Step 4. Keep looking for your growth opportunities
Once your business is fairly established, look for opportunities to expand your business. This could mean moving to a bigger store, expanding manufacturing space, opening a new location, depending on your business and goals. Successful business owners know that business stagnation is something that must be avoided in order to grow in the long term. That is, taking the risk of expansion is better than staying in one location.
For example, look at an area where coffee shops are still rare. Once a coffee shop in a prime location is up and running, see if you can open a new coffee shop in another area. Or you can also move from a street stall to a small kiosk, depending on your condition
Step 5. Add an income stream
Another way to increase business value is to look at other potential income. Once you've established your main business, look around and look for different services or products you can provide. Do your customers often ask about other types of coffee that you don't have and then go to another coffee shop? It's time to make it available.
Some of the choices you can make include selling cakes, bread, or packets of coffee beans
Tips
- Make sure you've paid for all business insurance for the year, as soon as possible.
- Prepare money for business work expenses for six months.
- Read the article on how to start a small business so that you know more about the details of starting your business.
