According to statistics, about 70% of office workers want to set up their own business. They envision that this way they'll earn more and work less because you can delegate all tasks. However, many budding entrepreneurs are in for a shock because once they start their own business, this rose-tinted dream is going to get shattered!
On my Instagram, requests for tips on starting a business and running it smoothly are multiplying. So I decided to create the Alex Reichardt Academy, dedicated to developing the skills needed to build a business. And today I'll explain how to prepare for the start of your project.
Step 1: Scan the area in which you would like to launch your project
Describe the product you plan to produce. Imagine what characteristics it will have, who the target audience is, how it will help them. Don't spread yourself over several products at once. It's better to choose one as your starting point.
Find direct and indirect competitors. Include everyone, along with those who work in the West and Asia. Then divide your competitors into two groups - those that pose the greatest threat and those that don't operate in a field suitable for your specific product.
Compare the companies on the first list with each other. What products do they produce, in what quantity? How much do these products cost? What audience are they targeting? Are they present in other countries and, if so, how do they sell their products there?
Many people will ask me: "Alex, do you have to go through all the competitors?" Well, I don't advise you to study them all at once, but making a list of them and keeping it in mind can be extremely useful. Then, I'll tell you more about it.
Step 2: Start writing the structure of your business plan
Yes, the minimum concept of a business plan will need to be drawn up already at this stage. Here’s what you need to include:
- An Executive Summary is a brief description of the project. It details what advantages it has, what audience you are targeting, what pricing policy you will follow, and what channels of communication you will use to promote the product.
- An Audience Analysis. What you created in the previous step will need to be put into the plan. Then, you can use it as an argument to potential investors!
- Costing Calculations. At the competitor analysis stage, you are likely to have already familiarized yourself with the cost of your finished products and the raw materials for them. So write down here estimate costs for production, premises/equipment rental, promotion and staff salaries.
- A Financial Plan. How much money are you willing to invest? Do you intend to involve outside investors or participate in accelerators (roughly speaking, business schools that raise talented executives and help find funds to implement cool ideas)?
In my course at Alex Reinhardt Academy, I talk more about the business plan and the best options for promotion in 2021. In just a few hours, the program will help you turn a project idea into a ready-to-go business. To check how effective online business training was, I did these programs at the Academy myself. By the way, I only want the most motivated students on the course, so the number of students on the program is limited. Register now to reserve your place!
Step 3: Consider the risks involved
I recommend that you use this universal formula for calculating risk:
+ the probability of increasing product requirements over time
+ change in product requirements during testing or implementation
+ the emergence of new competitors in the niche
+ changes within the product (departure of key team members, need to move capacity quickly to new production facilities, etc.)
= The list of minimal risks
You can understand the importance of risk by multiplying its probability as a percentage by its impact on the entire company and its profits. You determine the likelihood of a risk by using statistics relating to companies' projects in your niche.
Create a business plan, come up with new formats to promote your product, take only quality online business training and never give up! I, Alex Reinhardt, am confident that you will be the one to become a millionaire by launching a successful business in the near future, especially with my Academy.