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Plan Your Business


It is helpful to begin with a business plan.  A business plan is a blueprint of every aspect of your business.  Sales, Marketing, Advertising, Promotion and Location are just some of the aspects of creating a plan.  Entrepreneurship offers many rewards, but you must be prepared and committed.  Take whatever time is necessary to determine if you are ready; this will be time well spent.

If you are considering to establish a newly created business in Spain the following information is especially addressed to you. 

If you are an entrepreneur in your home country or  corporate manager considering to establish an affiliate of your company in Spain, please skip this section and go to the next section.

1. For first time starters.

1.1. First questions.

 In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions:

Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

How good are you at making decisions? Business owners are required to make decisions constantly - often quickly, independently, and under pressure.

Do you have the physical and emotional stamina to run a business?
Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-­hour workdays every week?

How well do you plan and organize?
Research indicates that poor planning is responsible for most business failures. Good organization ­ of financials, inventory, schedules, and production ­can help you avoid many pitfalls.

Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family?
The first few years of business start­up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

1.2. Pros and Cons.

Cons: A business may fail.

Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.

Starting a small business is always risky, and the chance of success is slim.Roughly 50% of small businesses fail within the first five years. In this economy you have to be specially aware. However, bad times are seen as an opportunity for experienced business people.The following reasons are behind most small business failures: 

  • Lack of experience
  • Insufficient capital (money)
  • Poor location
  • Competition
  • Low sales
  • Poor inventory management
  • Over-investment in fixed assets
  • Poor credit arrangements
  • Personal use of business funds
  • Unexpected growth

Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

On the Upside

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

  • You will be your own boss.
  • Hard work and long hours directly benefit you, rather than increasing profits for someone else.
  • Earning and growth potential are far greater.
  • A new venture is as exciting as it is risky.
  • Running a business provides endless challenge and opportunities for learning.

 

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