Page 11 - MIND YOUR ASSET

MIND YOUR ASSET

STEP 2: CHOOSING YOUR BUSINESS

 Has anyone ever tried to persuade you to open a particular business? Don’t listen.

Nothing is sure.
You are much better off researching and taking calculated risks, based on your own findings
and interests, not on someone else’s.

 Follow your experience.
Starting a business in a field that you already have years of experience gives you many
advantages. Previous training, skills and knowledge of the industry will give you a head-start.

For instance, if you are an experienced Bookkeeper, starting your own business as a
Bookkeeper will be easier than becoming a Chef. You may already have access to Client’s
names and records. Your network of contacts is key.

 Put your business idea and passion to the test, by seeking work in the profession and
industry that interests you.

For example,
If you want to start a Bakery, but you don’t know the difference between a loaf of sour-dough
bread and flat-bread, you need to seek work in an established Bakery. You will gain
experience, insight and understanding as to the art of dough-making, supplies and suppliers,
as well as customer demand and supply.

 Keep in mind, to compete in the marketplace, you need to offer customers an irresistible
product and service.

“In the end, customers will only part with their hard-earned money for your product or
business, if you can convince them that they’re going to get their money’s worth by buying
from you. To do this, you’ll need to know everything there is to know about what you’re

selling and the value of your offering.”

 Learn all you can about start-up costs, expenses and over-heads. After working in the field
for a few months you should be able to determine if the business is a potential money-maker.
To confirm, you should study your market, carry out a break-even analysis, conduct a
preliminary financial projection showing total revenue made to cover expenses. If your
revenue exceeds your break-even point, you’ll make a profit.

 To find reliable answers to any questions, apply for your interviews in a different location
from the one in which you plan to locate. Small business-owners are often quite willing to
share their knowledge once they know you won’t be in direct competition to them.

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