Before starting a business…

While seeking ideas for a business most of us look around and follow the steps of those entrepreneurs who have already succeeded. Thus, in one town or city we may find numerous beauty shops,  similar hairdresser’s, etc.

Your chance lies in finding an original idea. You should try to offer services or goods which would satisfy a selected group of clients better than your competitors'.

The easiest way to find a good idea is to rely on your skills, abilities and preferences.

If you have never conducted business activities before, you should think about participating in a training course, for example “ABC of business”. The course will provide you with the basic information about PKD numbers (types of activities), selection of the taxation method, social insurance premiums, bookkeeping, etc. Such training courses are often organized by the district labour offices or by Information and Career Planning Centers in provincial labour offices.

It is also vital to estimate the costs of starting your business. You should also think about outer sources of financing your enterprise as financial means of your own might not be sufficient to cover all the expenses.

If you want to start a business, you may find useful the following sources of financing:

• One-off subsidies for undertaking business activities from the Labour Fund
• Similar subsidies co-financed by the European Union:
• • Measure 6.2. Support and promotion of entrepreneurship and self-employment,
  • Sub-measure 8.1.2  Support to adaptation and modernization processes in the region.

You may find more information on this subject in our guide book “Sources of financing business activities”.

You will also need a good business plan. Below is presented an example of a business plan which contains a range of tasks and a brief description of the individual points.

Summary of the project and company characteristics

Here you present the idea of the whole enterprise and its premises. You explain why you have chosen this type of business and what makes it stronger than the ones already existing. It is worth mentioning about your qualifications and skills. You will encourage a potential investor with concrete evidence about your enterprise only. Do not forget to write about your financial contribution to the business. Calculate accurately the possible return of investment and present it in a clear form so that the reader is provided with all the interesting information.

SWOT analysis

While conducting the analysis you need to identify strengths and weaknesses of the company, describe the opportunities and threats. The SWOT analysis should be honest and – above all – concise. Make a summary that consists of about five points so that it gives a clear insight into the project. The procedure is the same for both beginner companies and large corporations.

Objectives of the project

These are the objectives connected with the market share, sales volume and profit. You should list the company’s goals and plan their implementation. Then, you should write down the specific objectives, such as the particular level of sales or profits, gross margin percentage, the rate of growth or market share. Present the objectives that are clearly related to further goals and – what is more – are achievable and measurable.

Operating plan

The aim of the labour market research and presentation of a marketing plan is to gain and maintain the company’s position on the market. The plan should clearly identify where, when and how the company will reach the satisfying outcome and who will be responsible for it. You also need to estimate the costs of undertaking and conducting business activities and the sources of financing it. Additionally, you should indicate where exactly you obtained information about the amounts that you placed in the business.

Prognosis for the project

The thoroughly constructed business plan is half the battle. Each financial enterprise should be approached individually, with great knowledge of the issues and specifics of a particular company. A good business plan should persuade the potential investor that the project has standing chances to succeed so that he supports financially the activity.

Remember!

If you have chosen the appropriate type of business activity and created a sound business plan, your chances to succeed are greater.