The first obstacle that the inexperienced entrepreneurs are thinking about facing is of obtaining an initial capital for your business. Nothing is further from the truth.
In fact, the initial capital should not be considered as an obstacle, but rather as an opportunity. What opportunity of that? You may ask. As well, having an important capital not prevent that you commit the errors inherent in a first-time entrepreneur, it will only make that these errors are delayed.
Even in the business field, having a higher initial capital for our first business can bring us greater losses than if we had started the business with little money. Having little capital to the approach of our idea will make the mistakes we commit not fall on deaf ears, and learn (that is painfully clear) failures that we have as managers of a company.
Undoubtedly, the most encouraging lesson is obtained after fall and recovers on the first business, is the toughness. The fact that we recognize our mistakes and pose strategies to overcome denotes clearly our intention to take our proposal afloat. Tenacity is one of those values that are often forgotten in business management books, but is a key factor in the character of an entrepreneur. And always keep in mind that most good idea you have, it is vital for your business to be known by more people. Great business ideas have failed because their poor dissemination among potential customers. Do not go falling into the same defect.
But, if you still think that having a capital is important to open first business, then you must keep in mind the following guidelines:
- Develop a preliminary revenue stream, which allows you to calculate from its sale price and potential customers, how much you can get for the first few months or first year with your company. It is likely that over time, discover that the income stream produced was not adequate, however, this preliminary flow will help you determine the payback of initial capital and from loans.
- Develop a flow discharges (similar to above) to establish how much to invest in infrastructure, materials, wages for your business. This flow must follow the exact dates agreed for the payment of these factors, but not the time the agreements or commitments occur.
- Once you have developed both flows, should compare them according to certain time periods. Take, for example, six months. Those first six months should be evaluated thoroughly to make sure if we have a surplus or a deficit in that compendium of time. It is likely that being your first business, the first few months have a deficit instead of a surplus, mainly due to lack of customers. Prepare for it.