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According to trends in small and medium-sized enterprises, One-third of small businesses start with less than $5,000. 58% started with less than $25,000. 26% of business owners started their own business because they wanted to be their own boss. 23% because they wanted to pursue their passion and 19% because an opportunity presented itself. There are other reasons to start, ranging from not being ready to retire to dramatic life events such as divorce or death.
Among all small businesses It started in 2014 and 80% progressed to the second year (2015). 70% made it to his third year (2016). 62% made it to year 4 (2017) and 56% made it to year 5 (2018). In fact, just over half of all startups survive into their fourth year of existence. At that point, the startup failure rate is about 44%.
Regarding the main reason for failure, 42% fail due to lack of market need. 29% due to lack of funds and 23% due to hiring the wrong team. 19% obtained 17% of companies lose out to competitors or face pricing or cost issues because of unfriendly products or lack of business models. Poor marketing and customer relationships also influence his 14% of failed ventures.
If you read the statistics, there is room for hope. Almost 50% of all new businesses are successful. And 82% of successful business owners never doubted that they had the right qualifications and the right experience to run their company.
Statistics show that experience influences a company's success.Founder of a previously successful business have The probability of success in your next venture is 30%. First-time entrepreneurs have an 18% chance of success, compared to a 20% chance of success for founders whose previous ventures failed.
However, there are more and more successful entrepreneurs. encourage So that the new generation can start business as soon as possible.
“Start as early as possible. You can learn as you go and have nothing to lose,” says Filipa Neto, managing director of Chic by Choice. ”My motto is three skills: preparation, persistence, and not being afraid to fail. And you can prepare from anywhere. ”
Every experienced entrepreneur had to start somewhere. One of the first places to start is with your business plan. This is a basic structure you can follow when you don't know how.
1.Cover
It's small but important. Must include your business name, your name, and contact information.
2. Table of Contents
Readers should be able to quickly skim and turn pages to reach the topics that interest them most.
3. Summary
A concise and formal explanation of what your company is, how far it will reach, and why it will be successful. It should include a mission statement, a description of the industry and market environment, and a description of its uniqueness and competitive advantages within one page. Forecasting economic potential and risk, the core team and the stage of the business are also important, especially for businesses that are not starting from scratch. Finally, the capital required must be concise and clear.
4. Business details
A detailed overview of the proposed project. The ultimate goal is to help potential investors quickly understand your business concept and its value proposition.
5. Industry background
Provide historical and current data on the shape, size, trends, and key characteristics of the industry you are entering. What is the industry? What is the outlook for the industry? Who is competing in this industry? What are the industry barriers to entry?
6. Competitive analysis
Look at your current and future rivals and competitors. Who are your competitors? What are the strengths and weaknesses of your competitors? What is the difference between your business and theirs? What are the competitive prospects for your industry?
7. Market analysis
Focus on your customers, their preferences, needs, and demographics. The objective is to demonstrate to the market that there is a real opportunity for your venture.
8. Management overview
Introduce your team and explain how they work together. All business involves risk, especially when there is no precedent to evaluate. Therefore, the knowledge, skills and ability of a team to work together as a competent unit is one of the first factors evaluated by investment candidates. Friends and family, despite their love and trust in us, are not always the wisest choice.
9. Management plan
Focus on day-to-day business activities and the strategies that support them. Charts, graphs, and tables can be used to display complex information such as break-even points, sources of supply, and manufacturing and distribution processes.
10. Marketing plan
Or a detailed strategy for how to market your product or service. Focus on the opportunities your business presents and the buying behavior of your customers.These are the main considerations for a successful marketing strategy.immediately followed by sUnlock the value each customer brings to your business.
11. Financial planning
current and future projections of the financial performance of the business; In other words, every financial plan should focus on the following key elements: Your capital requirements should reflect how much money you need to raise, how you plan to use that money, or how much you need from investors. Assumptions about business growth and internal components should always be supported by strong evidence and expert opinion. The income statement is a projection of the business for the next three to five years, and the balance sheet is typically prepared by an accountant. And finally, the cash flow statement shows how well the company converts profits into cash.
12. Attachments and Milestones
and all additional documents that can provide valuable additional information to your business plan.
