Managing a business Basic thoughts and techniques Copyright 2013 Eugen Grathwohl

How to start YOUR business To start a business is different from finding a job! You need ●an idea ●be disciplined ●take responsibility ●have some basic ideas about business ●you need some money or a means to survive ●a business plan ●a (strong) willingness to succeed

… be disciplined you as the business owner are a role model for your employees! Discipline is like a loose screw - it get looser and soon is gone completely! It is also part of discipline to do what you promise(d) your customer. Life gets easier if you develop a structure like starting to work at 8am every day.

You need an idea! This can be your “new” idea or an old idea with a new package or a better/different service or a service at a new location. A new idea/product is more difficult than a known idea/product in a “new” package. If you have very little funds and little experience better stick to “known” products/services! This idea is the core of your activity and all builds around it. You really should like it!

… take responsibility In life things go wrong - that is NORMAL! If we are smart, we learn from it and avoid it the next time. A fact easily overlooked is that you only can change things, if you accept responsibility! If you fail and do not take responsibility, you are a victim, learn nothing and probably fail again!

… take responsibility 2 Lets say you sell service A but no one buys. If you are a victim you blame others and suffer “Why me?” If you take responsibility, you look what went wrong, analyze and learn. Then you still failed but you learnt your lesson! The next time you try, you will not make the same mistake again. Btw a good business plan can minimize this risk!

Have some basic ideas about Business Know the difference between income and profit! Purchase price + expenses + profit = sales price If you give a rebate that is bigger than your profit, you make a loss! If you accumulate too much losses, you go bankrupt!

A Business plan... … helps you to achieve your goal! 1. The purpose of a business plan is like the plan of a house, to give it structure and make sure all is at the right place 2. It is kind of a construction/operation manual 3. If something goes wrong, a good business plan will point you into the right direction (again) They say “Not to plan, is to plan to fail”

A business plan is a must ○ if you need external funds ○ if it is a complex business ○ if you run into problems With a business plan you see if your idea has a financial base. A business plan shows you the future of your idea (and your financial future) A business plan is based on facts not on wishful thinking!!

Money If you have money good for you. If you have a good idea but no money, write a good business plan and you will find an investor! Money and calculations are part of a business plan Here we try to work with very little or no money because I assume you have little or no money. But make sure you can pay your online time or your business and customers may fade away fast!

No Money It is harder to start a business without funds If you have no money you have to do everything yourself! Even the learning! You substitute money with time! If time is critical, this could be a reason to fail! In such a case, look for a partner, an investor or for an other idea!

Warning Online marketing is a broad field. You will have to specialize - but you also can join forces with a friend who chooses other fields from you. Building an online business may be challenging, but others less smart than you succeeded. YOU can do it, just do not give up!