The decision to open a business is really serious. Starting from the reality that 50% fail in a 12-month period and another 30% in the next 36 months, there is no doubt that it is a risky decision, however at the same time it can have thousands of benefits regal assets reviews.
Below 5 golden rules for anyone who is thinking of opening their own business regardless of the industry or industry.
Rule # 1: Invest only in a business that you understand. This golden rule teaches that you first have to understand clearly and precisely each and every aspect of the investment or business. No matter how interesting the project looks, how profitable the investment looks, or whoever says it, you should always understand it completely:
What are the fixed and variable monthly expenses?
- How income is generated
- How customers are attracted
- What are the profit margins?
Rule # 2: Invest only the money you can risk losing. Saving is one thing and investments are very different. Every investment is a business, and every business has a risk, therefore the money to be invested must be the one you do not need to live or cover eventual emergencies. Imagine if investments and business were not at risk, everyone would have a business.
Rule # 3: Understand your needs: There is no business that by itself is good or bad. It all depends on your needs, priorities, knowledge of it and abilities to face the risk. Regarding business, make sure you have at least 8-12 months of monthly budget reservations.
Rule # 4: You must invest in a business that you are passionate about: This is perhaps the most important rule. It doesn’t matter what others say or results others have. In all businesses there are people with success and people who fail, no business is magical. Owning a business is much sacrificed and the competition is tough. To be able to work long hours and be able to compete with the best in your industry you need to have passion for what you do. Profitability and profits are not in the type of business, it is in capacity, dedication and discipline. These three characteristics can only be achieved if you have passion for what you do.
Rule # 5: Work as an employee first: If you are going to buy a business and on foot, ask the seller of the business to allow you to work as an employee for free for a couple of months, because it is the best insurance you have to understand the business and if really the numbers that the owner is giving you are true.