6 mistakes. How to run a business the right way?

Planning and launching your own business is a time of hope and pure adrenaline. It seems like you have to rush, do everything urgently. We're not going to give you the secrets of a successful business. The flip side of the 'sudden luck' coin is usually persistence, perseverance, and foresight. And also past mistakes. Big ones and small ones.

Let's talk about the typical and common mistakes made not only by beginners, but also by those who have been in business for a long time. About what eats up funds, takes away energy, leads to disappointment, and drives one into debt. About bad experiences and illusory hopes.

Mistake #1. Incorrect choice of niche

The choice of a niche - one of the most important decisions that determine the success or failure. You should not be in a hurry. First of all, the niche should be analyzed to see if there is demand and available funds, to find out how profitable it is. Studying the target audience and the level of competitors can take a lot of time, but without this knowledge it is not worth starting.

Market capacity is the number of potential customers with the problem you are proposing to solve. To see if your idea will be in demand, check its popularity by the number of searches on Google. Type 2-3 key phrases into the search box and look for queries in your area. If there are more than 1000 a month, it means that the demand is there, every hundredth can become your client.

Mistake #2. Do not think about the money

'Do what you love' This advice has been handed out for decades by Internet gurus and lay coaches.

After all, it may be that your favorite pastime is not profitable as a business idea, or there is no demand for the product you produce. It's a hobby, but in no way a business.

Don't do what you love; do what you're good at, what there is a need for, and what will pay you well.

Demand breeds supply. Don't be fooled into believing that you can communicate the value of the product you offer to your audience. If people don't feel a need for the product themselves, they won't want to buy it either. You're going to lose.

Mistake #3. Focus only on the product/goods.

There are five pillars to building a business, even a small one:

• product

• marketing

• sales

• finance

• administration

It is a fatal mistake to invest in the development of the product only and not to think about customers, promotion and sales. Consumers do not want the best product, but a product of decent quality and a certain price. How and where will he learn about it? How will he find your site? Why he will want to buy from you? Without all the'whales' business will quickly go downhill.

Mistake #4. Not to calculate the break-even point

Breakeven point - is conventionally the amount that the business has to earn in order to ensure the livelihood of its members, covering all overhead costs (fixed and variable). Unfortunately, many entrepreneurs do not calculate the break-even point and do not understand how much they need to earn per month to, as they say, 'break even'.

This is especially important when the trade markup needs to take into account returns, illiquidity and more. Calculate your average check and the number of customers you need per month to at least cover your expenses.

Mistake #5. A common mistake is not separating personal and business funds

You need to understand that even in your business you get paid. How and when is your decision, can be daily, can be once a month. This money you can spend as you like. And there are funds that you will always leave within the business, they are necessary for work, untouchable for personal consumption and they should be planned.

Mistake #6. Starting out without business planning

We're not talking about a classic multi-page business plan. We're talking about minimal calculations that take into account:

• The costs of starting a business (purchasing equipment, software, renting space);

• the cost of the first purchase or hiring subject matter experts;

• variable costs;

• costs that may arise from the volume of purchase and turnover of goods (loans, interest to the bank, bank commission);

• promotion, marketing and advertising costs (preliminary and very approximate);

• acquiring (or how you will pay for goods and services).

Only by seeing these real figures can you understand how much money will be needed to start a particular business idea.

Dropshipping

When deciding to go into business, you need to determine and calculate two figures as accurately as possible. The first is the budget for the start-up, the second is the amount of monthly expenses.

If at the initial stage you have little available funds, you can consider a scheme in which the seller makes a profit on the sale of goods from the supplier's warehouse - dropshipping. This is a simple, low-risk business model in which the supplier is responsible for the quality and delivery of the goods. The seller's profit is the difference between the supplier's price and the price charged by the online store. Dropshipping can scale at an average profit of 15% to 20%.

Arabesco sideral: an unmistakable choice

Working with Arabesco sideral, buying and selling through its site, you are guaranteed income and get a constant, proven partner who is interested in the continued and continued success of all its counterparties.

Dropshipping is becoming a kind of e-commerce philosophy. Arabesco sideral unipessoal lda acts as an agent, helps sell merchandise, connects dropshippers and manufacturers, works with regular business partners. Arabesco sideral software solution allows business owners, sales departments, agents and retailers to monitor global marketplaces, collect up-to-date product information, and find profitable supply chains.