Starting A Small Business

Topics: Marketing, Variable cost, Total cost Pages: 18 (4945 words) Published: March 16, 2015
Starting a Small Business

What is in this guide
This guide provides information and a stage by stage approach on how to start a small successful business. It contains the following sections: 1. Starting a small business
2. Stage 1: Idea and opportunity screening
2.1 Finding new business ideas and opportunities
2.2 Screening the ideas and opportunities
2.3 Checking if the business is financially viable
3. Stage 2: Planning
3.1 Production 
3.2 Marketing 
3.3 Management 
3.4 Financial 
3.5 Writing a business plan
4. Stage 3: Start up
5. Stage 4: Monitoring

1. Starting a small busines
There are four stages to setting up of a successful small business: Stage 1: Idea and opportunity screening
Stage 2: Planning
Stage 3: Start up
Stage 4:Monitoring
 
3. Stage 1: Idea and opportunity screening
This stage is where you work out what small business opportunities exist in your area and decide what kind of business you want to try. This stage involves the following key steps: 2.1 Finding new business ideas and opportunities;

2.2 Screening the ideas and opportunities to make sure:
They meet a need;
There are people who want the products - market potential;
You can make a profit;
2.3 Checking if the business is financially viable
2.1 Finding new business ideas and opportunities
There are many different ways that you can get good ideas. These include: Your previous or current employment
For example, your place of employment intends outsourcing the cleaning of its offices. You can apply to provide the service. Family, friends and relatives
Talking to family, friends and relatives can provide you with information on opportunities at their own work places as well as consumer needs and demands in their own communities Market, social, business or technological trends

Stay in touch with new developments and needs in your community. For example, the World Wide Web and the internet is a major technological advancement. However, in our country access is often confined to urban areas. In rural areas, where there is lack of telecommunication infrastructure and high levels of poverty, individuals cannot afford to access the service. However there is a huge demand for this service from teachers, learners, small businesses and community based organisations. Entrepreneurs in rural areas can provide a service to communities based on proper market research (you will find more information on market research later in the document) and pricing. Prospective entrepreneurs have to continuously monitor the major market, social, business and technological trends to find business opportunities. Big companies use trend analysis to maintain and grow their businesses. A product or service need you've identified through personal experience You may find that in your area it is difficult to get a particular product or service. For example; affordable funeral services. Market research may show that other people in your area are experiencing the same difficulty. This is a potential business opportunity. Your hobby or leisure activities, including travel

For example, you are an avid gardener growing flowers in your own garden which you distribute freely to people in the community for funerals, weddings and other functions. You can start a flower growing project to generate income involving other people in the community. Similarly there are people you are involved in sewing, arts, crafts, music and other leisure activities which can be turned into income generating opportunities. Business publications, including magazines, newsletters, trade publications, internet and books available in the business sections of both libraries and book stores Reading provides new information of other opportunities. For example, businesses for sale, franchise opportunities, new business ideas etc. Trade shows and conventions

At trade shows and conventions products, franchises, machinery and other business developments are exhibited. The Department of Trade...
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