Beginner companies that turn into successful companies worth billions or even trillions, in the business world are no different from lottery winners. Putting all your money and hoping to get a jackpot, you will actually fall.
Here are 9 rules for starting a small business. This list is more to make you aware of the reality than to go crazy on pursuing your greatest dream of doing business.
When creating a business model, look around and find a successful example of the business model you want, then learn. If you can’t find, whether you’re an extraordinary genius, or your business model won’t work in the real world.
Don’t invest your own money.
Because most businesses are risky trips, look for partners. So, if everything does not work out all the plans, you will not go bankrupt because of the start-up fund, and not be pursued by debt.
If you are not willing to work hard, over time, forget about personal and health benefits, then entrepreneurship is not for you. At first, you will definitely not be able to pay employees, even if employees are cheap. So, your employees, are you.
Rate your money for your time, for example, IDR 20 thousand per hour. This will help when you have to make a decision: If a store charges Rp. 10,000 for shipping every week, and you need 2 hours to go to the store yourself, then pay for the shipping costs from the company, because it is cheaper. This may be contrary to the third rule, but even slaves also have economic value.
Recruit employees well.
Regardless of the size of your business, you will eventually recruit outside employees. For that, do the recruitment process carefully, without hurry, and treat it as important as when you start a business. It is unfortunate that the attitude of a business owner who has a vision for his business but recruits employees who actually prevent him from achieving that vision.
Sell the excess, not the price.
When you start a business, it’s only natural that you are frustrated about marketing it. But, if you compete on price, you end up selling at mediocre prices or even below the capital. Master the skills of communicating with customers, to explain that the price of your product is higher because it has better value.
Know basic numbers.
Know how much money you need to run a business – from shop rental, electricity, employee insurance, to printer ink, paper, and tax prices. Then for all that with how many days a year you will open, and … that’s the basic number – the minimum amount of income you need every day. If you never think about basic numbers, think again.
Use the latest technology.
Newer technologies such as application and data storage with cloud technology are very cheap and make small companies can compete with large companies. Take advantage of the low-cost technology that is on the market.
Treat vendors well.
Treat your vendors and suppliers as best as possible, just as you treat customers. They can offer discounts based on the volume of your order, or even to maintain good relations, and hope there will be an increase in volume in the future. A good relationship can also make them understand the late payment, even giving free shipping.