How to start your own business

The best reason for starting a business is to earn money, to travel, to get more knowledge of the world, to get business experience or to be independent. If you choose a business based on your special knowledge, skills, experience or interests, your chances of success increase greatly.

There are three ways you can serve consumer needs: making a product (manufacturing), selling a product (wholesaling or retailing) or providing a service.

If you want your business to be developed successfully, you should do enough planning and minimize the risk of failure during the first years of operation. You must estimate costs or money you spend to run the business. There are four types of costs: material costs, labour costs, overheads and your own salary.

Material costs include the money you spend when you buy materials and equipment you need. Labour costs include the money you pay to the people who work for you. Overheads include the money you pay for rent, telephone calls, advertising, traveling and so on. Your own salary is not the maximum money you get from your business. It is the minimum money that is enough for living.

If you want to expand your business you need financing. You can borrow money from a bank. Bank managers will make you a loan if they are sure that your business is a good investment. That’s why you should provide them with your financial statements showing the financial situation in your firm.

If you want to attract customers you should keep in mind that success of your business depends on a good promotional campaign, a convenient location, good selling methods and reasonable prices.

If you want to hire an employee you can use employment agencies, consulting firms and professional societies. You can also advertise in a newspaper or in a magazine.

Language abilities would allow you to communicate more easily and increase the number of business contacts.