Thursday, July 29, 2010

Start Small When Starting a Business

OK, let's say you inherited millions and millions of money? What if you suddenly became a multimillionaire man because you won the lottery? Then suddenly you are wise enough to decide that you will use your tons of money to start a business and not spend it into gadgets, cars, and houses! Wow! That's very lucky of you!

But let's say you have no experience in handling a business? Will you put up a very big business because you have tons of money to invest on it? Well, sounds like a bad idea! If you are a beginner, no matter how rich you are, you need to start small.

Why? Well, I found an article that best explains this.

When starting a business it is best to start small. This advice is popularly given to people who had no experience on handling any type of business. But why start small when you have enough capital to start with? There are so many reason, first is to know the playing field.

Like when learning how to ride a bike, a learner has two small wheels on the side on the back wheel of the bike. These small wheels serve as a guide and protection so that the learner won't fall off when riding a bike. In due time, the learner will get use to balancing the bike and can now remove the two small wheels. The two small wheels have served its purpose but now it is not needed anymore. The learner knows how to ride a bike.

That also applies in business; the business owner or incoming entrepreneur must first learn how to manage the business with proper care. Just like the two small wheels of the bike, the entrepreneur needs it to make their business prosper. But in business it is not wheels, it is experience.

The business owner must know what is like to lose money, to earn money, to deal with customers, to properly manage employees, to handle taxes, and to keep inventory. All of this is critical to make the entrepreneur a well rounded and experience business owner.

If you started your business with a huge capital and somehow did not make its returns, it will not only lose your money but also demoralize your morale and confidence in starting a new business again. But keeping your business with a small capital and somehow did not reach its financial target; the business owner can count their losses and move on the next one - another new business venture.

It doesn't matter if the business owner loses 10 businesses as long as they learn something from their mistakes. This is what you call credit to experience. One day this particular business owner will gain knowledge from their past mistakes by not doing it again and making it perfect the next time around.

So when starting a business, start small. Remember the two small wheels and don't be afraid of losing and committing mistakes. One of these days your small business will be a big business enterprise.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.