TIỂU LUẬN THINGS TO KNOW BEFORE STARTING a BUSINESS

BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC BÌNH DƯƠNG KHOA KINH TẾ BÀI TIỂU LUẬN THINGS TO KNOW BEFORE STARTING A BUSINESS MÔN HỌC : ANH VĂN CHUYÊN NGÀNH GVGD : ThS NGUYỄN HƯƠNG SANG HỌ TÊN SV: Vũ Ngọc Phúc MSSV : 18030932 STT : 32 LỚP : 21QT01 NGÀNH : QUẢN TRỊ KINH DOANH MỤC LỤC THINGS TO KNOW BEFORE STARTING A BUSINESS Chapter 1: Preamble: 1 Creative ability: Business Capital Start-up: Perseverance: Basic knowledge: Essential Skills to Start a Startup: Chapter : Theoretical Basis: What is a startup? What is business? 3 What is a customer? 4 What is a competitor? What is the Revenue Chapter 3: The content presents what is needed or should be known before starting a business 6 things you need to know before starting a business: Make sure you have enough capital to start selling your first products Market research Learn about customer needs Choose the right business partner to work with Understand your capabilities and accept failure Find a mentor Start-up knowledge you need to know before starting a business Having entrepreneurial knowledge is extremely important Start-up ideas Start-up knowledge: Finding customers to test products 10 revenue models that startups need to know 10 Products/services are free, revenue comes from advertising 10 Product is free but need to pay service fee 10 "Freemium" 11 Based on expenses 11 Value added model 11 Start-up steps – What to prepare before Startup 12 Step 1: Define your goal 12 Step 2: Research the advantages and disadvantages of the business that may be encountered 12 Step 3: Find the right idea 13 Step 4: Get ideas from customer interviews 13 Step 5: Make a business plan 14 Step 6: Build a detailed plan 14 Step 7: Measure, evaluate 15 Step 8: Proceed to build the human resources team 15 Step 9: Mobilize and call for capital 15 Step 10: Corporate structure and personnel 16 Step 11: Set an operating budget 17 Step 12: Scale the business in line with the marketing plan 17 Step 13: Anticipate risk 17 Chapter 4: 18 Conclude 18 References section 20 Chapter 1: Preamble: In life and in business, starting a business is always a painful problem, it makes an important contribution to life and also a difficult problem for us, our task is to find a solution and solve it With that difficult problem, I will answer questions about the necessity of starting a business as follows: Creative ability: The first and most important factor when starting your path to wealth is that you yourself must have a great creativity Because only creativity makes the difference between you and your competitors, only more creativity can help you see through the entire current market, find unmet needs,Then come up with your own business plan This plan does not have to include unknown business ideas or completely new ideas that no one has thought of, but it should create a breakthrough and competitive advantage for your business The difference in products and services that you provide is an important fulcrum for you in this fiercely competitive market So, instead of competing for a piece of the pie with major competitors in the market that were born earlier, stronger, and more experienced than us, we can find a new piece of the pie ourselves - where we is the leader Business Capital Start-up: One of the other important factors when you want to start a business is start-up capital This is the nourishment for your business plan and a lever for your success Perseverance: Persistence is an important factor because in the process of starting a business, not everyone has success in the first start, there are people who fail many times but they still not give up, still keep getting up to implement your ideas It is the determination and perseverance in that person that creates their later success as the saying goes: "Failure is the mother of success" Indeed, reality has proven that successful entrepreneurs are those who have a higher spirit of determination than the average person to overcome obstacles, have more passion and perseverance than people to rise up from failures failure in a short time Basic knowledge: Nowadays, if you want to anything in any industry, you also need to have knowledge of that industry, so if you want to start a business in a certain field, you should also learn about the surrounding knowledge around that area For example: you want to start a business by opening a recording studio for singers, you need to have basic knowledge in vocals, how to mix music and know how to use some basic instruments… Or you want to become a musician If you are a big fashion wholesaler, you need to have basic knowledge about fashion trends, sales Understanding the basic knowledge and expertise in the field we operate or many different aspects of the business such as products, human resources, technology, markets, systems of relevant legal documents is An important stepping stone to help you avoid failure in lack of expertise and unintended reasons So if you intend to start a business, first fully equip yourself with these knowledge Essential Skills to Start a Startup: - Market research skills - Financial management skills – Authorization skills - Strategic planning skills Chapter : Theoretical Basis: What is a startup? Startup, this is a term for companies that are in the start-up stage in general, it is often used narrowly to refer to technology companies in the start-up stage Entrepreneurship requires innovation and creativity The basic characteristic of entrepreneurship is the breakthrough to create something that is not available in the market or create a better value than what is already available, such as being able to create a niche new in production, a new business model, or a new type of unique technology What is business? In Vietnam, the term business used in the Law on Companies and the Law on Private and Business Enterprises can be understood through the following signs: - The operation must be performed independently Entities to conduct business activities on their own behalf They decide for themselves all relevant issues and take responsibility for their own activities; - Activities must be of a professional nature, that is, they are carried out in a professional, regular, continuous manner and the activities provide the main source of income for the person performing them; - Conducted by subjects with the aim of making regular profits From that, we can understand business as the activities of investment, production, purchase, sale, service provision, Conducted independently by business entities for a profit measured in monetary terms The production activities will create material wealth to serve the needs of consumers What is a customer? Customers are individuals or organizations that businesses are marketing efforts towards They are the buying decision makers Customers are the beneficiaries of the quality characteristics of products and services What is a competitor? Competitors are businesses that serve the same target customer segment, the same product range, and satisfy the same customer need Knowing about competitors will help businesses visualize the general picture of the market and industry in which the business operates What is the Revenue A business will have revenue groups: - Revenue from selling goods; - Business correspondence from other investment activities; - Revenue from financial activities Goods can be products or services If a trading company is in the form of THT', which means using money to buy goods at the input and then selling to customers at the output to get money back, the revenue will be equal to the quantity of goods sold multiplied by the selling price can be calculated as the total order value in the output For a service company like a restaurant, the calculation is similar, equal to the sum of customer bills For service companies such as hiring cleaners, hiring security guards, the revenue will be equal to the total value of sales orders Revenue from financial activities: it is possible that at a certain period of time when businesses not use up all their equity, they will lend them interest Revenue from other investment activities such as investing in the stock market, gold, real estate, etc., are the fields that are not part of the main investment field of the enterprise What is the Assets? Enterprises must of course have Assets, specifically, = Short-term assets + Long-term assets: - Current assets: include cash and cash equivalents, short-term investments, short-term receivables, inventory and other current assets - Long-term assets: including fixed assets (machinery, ), real estate, long-term financial investments and other long-term assets Chapter 3: The content presents what is needed or should be known before starting a business things you need to know before starting a business: Make sure you have enough capital to start selling your first products Starting a business you have to accept the fact that you will have to pay a lot of fixed costs to maintain business operations such as: office rent, electricity, water, payment for goods to partners, expenses marketing… and these are not small amounts of money Maybe, until year later, you will have your first profits, since turning to starting a business Make sure you keep the business running for months Those who have a family, or have a job around the time of starting a business will easily get through this stage But most people don't have that advantage Therefore, before starting this race, you should have a savings in the bank, enough to support you and help you feel secure to focus on work Market research Market research is essential for any new company Is there a market for your product? Is there any competition? Do people need this product? The first thing you need to think about is what product or service you are going to offer What will you sell in your business? How will you reach your customers…Sometimes, the difference between success and failure can be just choosing the right job and business line for the market conditions Learn about customer needs Many entrepreneurs focus only on marketing and sales and forget to understand the needs and tastes of customers Understanding the needs and wants of customers will be a great success step to bring the company to consumers in a favorable way Business is not like a game, so learn the rules Don't rush into a business unprepared or assuming you already know everything Make a specific plan, learn about the problems and desires of the target customer It is never too late to innovate, expand or adapt to create exactly what customers want and require When you that, your company will become one of those rare companies that don't need to sell products, because people are always looking to buy them Choose the right business partner to work with In case you need to find a business partner to start a business, you must make sure to choose the right one and in accordance with the development orientation of the company Business partners need to have the same ideas, vision and goals for the startup idea to have a common voice for cooperation However, a partnership requires a written binding, as well as a plan to dissolve the partnership, ahead of time Understand your capabilities and accept failure When starting a business, it becomes very difficult to get rejected at any time However, as an entrepreneur, you always have to face a lot of bad news, be it from investors, from declining sales or because of less traffic to your e-commerce site If you think about issues that have to be abandoned or are emotionally volatile, you will not only be wasting your time but also not learning any lessons from the experience Answering the tough questions ahead is the difference between success and failure However, if a question or two you can't find the answer to, don't be afraid, falter from your dream You may have to take some extra steps needed to reach your goal Find a mentor We can ask for advice, but it's not always helpful Mentors will be people who know the business well, they know how difficult it will be because they have been through it Using their knowledge and expertise, your job will be a little easier Starting a business is not a task for the gullible, it takes dedication and hard work These tips won't make you successful overnight, it will make your way a little easier Start-up knowledge you need to know before starting a business Having entrepreneurial knowledge is extremely important Young people starting up today, before embarking on the implementation of their ideas, please make sure that you are fully equipped with business knowledge as well as basic business management knowledge to be able to control and operate your business well This also helps individuals or start-up organizations who wish to receive capital support from investors Investors need to know your sales returns, measured metrics and all the information about your business plan before they accept your offer to invest These are the reasons to encourage sales for young people who want to start a business Start-up ideas When Building a startup sales idea, it is also necessary to adhere to the following factors: Differences: In today's competitive market; if your product/service is not superior in terms of quality; models or sales methods; service is very difficult to succeed The right factors: Just because you need to meet the differentiator does not mean you have to find ways to make the product/service seem unrealistic and unrealistic In addition, the startup idea must be suitable for your financial capacity; suitable for its own ability and suitable for the market; customers you are targeting Prospect factors: after clearly grasping the above two factors; you need to take into account its long-term level How long will this idea exist and develop? Are the profits you expected? Does the current market have the potential to help you succeed? Start-up knowledge: Finding customers to test products In fact, finding customers first is probably the most difficult step of a B2B startup To avoid falling into a vicious cycle where customers force you to spend all the initial spending to test and they want to see results before doing Have the courage to ignore those customers Startups that succeed at this step often know what they have and what their customers need to put them to the test with you, which is mutually beneficial You can calculate based on the minimum cost to perform the service, but never forget to return the necessary conditions such as: payment (to make sure you have the cash flow to test the solution), customer feedback, preferential payment conditions if any in return revenue models that startups need to know Products/services are free, revenue comes from advertising This is a common pattern among tech startups at the moment, like Facebook's, where services are free and revenue is known from advertising through clicks Product is free but need to pay service fee In this model, the product is given away for free and the customer has to pay for the set-up, custom customization, training manual and accompanying services This is a good revenue model, but you should note that it is essentially a service sale where the product is counted as part of the marketing spend 10 "Freemium" This is a variant of the free model of products and services used by some startups like LinkedIn In this model, basic products and services are free, but if you want to use more advanced products and services, you have to pay an additional fee Based on expenses With this traditional product pricing model, the price is set at to times the product price If your product is a single item, the profit margin is likely at 10% The purpose of this model is to minimize production costs to a minimum, compete with price strategies, in order to get the highest profit The advice is to use this model when you have technology that can keep production costs low, and ignore this model when there are too many competitors in the market Value added model This model emphasizes providing products and services to meet the needs of current and potential customers by making useful products, providing services that satisfy customers However, this model has potential risks to help increase expenditures and reduce profits if the correct price is not calculated commensurate with the value transferred to customers Price by category Suitable if you have many products/services, each with different fees and utilities 11 By diversifying product types, offering different prices, your revenue can come from more sources, the risk ratio is also less The "razor" style This type of model is understood to initially sell a product at a low price in order to generate revenue from the additional products it entails The term is derived from the typical example: selling razors at a good price to get revenue from selling blades Another example, in the printing industry, printers are sold at a low price, the purpose is to generate revenue mainly from selling ink cartridges in large quantities Start-up steps – What to prepare before Startup Step 1: Define your goal To have a successful plan, you first need to determine the right goals that you and the business will aim for Short-term goals (2-3 years) or long-term (10 years) where will the business stand in the market? What is your business purpose? Core values that the business is aiming for Do not get lost in your ideas, but always define the destination and have a clear and detailed roadmap to bring your business to success Step 2: Research the advantages and disadvantages of the business that may be encountered When doing business, it is inevitable that there will be difficulties or unfavorable business However, good managers will be the ones who anticipate that difficulty They will know how to minimize risk and damage to the lowest level 12 Let's have the most overview of the market Research competitors, policies that will directly affect your business Always have a backup plan or risk budget to get through tough times in your business Step 3: Find the right idea This is one of the steps to start a business that cannot be ignored if you want to succeed A good idea sometimes won't equal a right and appropriate idea Think simple and start from the problems of yourself and those around you Find the best solution or product to solve those things For example, Scrub Daddy - one of the fastest growing startups in the US Shark Tank program Founder Aaron Krause has invented a cleaning sponge made of a special material that makes cleaning easier Note, your idea should not be too wild or too big on an area that you know nothing about will cause you to fail quickly Step 4: Get ideas from customer interviews Any idea needs to come from the actual needs of potential customers Therefore, to have a good idea you need to find a few friends that you think will be potential customers Conduct interviews, survey them about their needs and desired product quality to get the necessary information to apply in practice Sample products, trial versions (for technology and software fields) can be used to measure customer satisfaction In addition, are the benefits from the products and services you provide really suitable for customers? Take notes of ideas from customers to have an effective business strategy and marketing strategy 13 Step 5: Make a business plan Next is a general outline of your business startup project The preliminary business project will help businesses shape the feasibility of the idea, start-up model, general strategy, branding issues, legal, financial, implementation roadmap Besides, for the business to develop, it is indispensable for marketing activities such as communication, content design, marketing Make sure, these forms of marketing must be reasonable for business ideas their own to the customer Step 6: Build a detailed plan After you have a preliminary business plan, you begin to develop a detailed plan for each stage Set short-term goals and methods and time to complete each goal will help you save maximum resources 14 Step 7: Measure, evaluate During the implementation process, remember to always measure and evaluate the completion of the goal in order to optimize to get the most complete plan Record customer reviews and feedback on the quality of sample products and make timely improvements before putting the official product on the market Step 8: Proceed to build the human resources team If your business idea is complete and viable, the next thing you should is find partners to develop it with you Step 9: Mobilize and call for capital Startup is very different from opening a normal business company Startup companies must always have capital to scale their business 15 Startup companies often bring methods to solve users' needs, so the "coverage speed" of the market must be extremely fast And capital will help you quickly achieve this goal Making a plan to mobilize and call for business capital for each round is an important step to help a Startup company survive in the initial stage Unlike previous years, this time the sources of investment capital are very diverse From angel investors to venture capitals Even many technology startups in Vietnam have called for investment capital from Silicon Valley You will be "poured" immediately if the idea is good enough and convincing Step 10: Corporate structure and personnel After preparing the elements from ideas, plans, personnel, capital the next step you need to decide is to choose the type of business According to the Enterprise Law 2014, there are currently the following types: - member limited company - member limited company - Joint Stock Company - Partnerships - Private enterprise Depending on the capital source and scale of development, you need to choose an appropriate business type However, before choosing, you need to carefully study the issues related to the type of business 16 For a Startup, people are always the top priority to help that Startup grow and be convincing enough to investors A good Founder is one who knows how to gather elite individuals into a united, strong and competent team Step 11: Set an operating budget In order for your company to grow, you need to budget its operations Specifically, include items such as marketing costs, company salaries, other procurement costs, etc capital when needed Step 12: Scale the business in line with the marketing plan Now, the work you need to is to follow the plan that you have set However, that plan can still change as you encounter obstacles and overcome them Step 13: Anticipate risk “The marketplace is the battlefield” – You cannot guarantee that business will always run smoothly A Plan B or risk budgeting will always come in handy during tough times In addition, flexibility, "knowing who knows me" at appropriate times is also essential Ideas are easy to steal, there are many large corporations that will "pour" money into the market to "kill" startups in the same field whether you are a pioneer or not Please re-evaluate all resources, time, market, competitors to choose the most reasonable option Their choice against the “giants” or becoming their “extended arms” will be based on the Founder’s judgment and analysis Obviously, to be a leader, a successful entrepreneur is not easy However, you have to follow every step in the plan to make sure your idea is still viable and the business is still growing sustainably 17 Chapter 4: Conclude I've changed almost my entire perspective on entrepreneurship in the last few years Before, I also thought that starting a business was having to work like crazy, train yourself to the point of struggling and racing with your own business, then that's the right start-up Having to go to school to learn a lot of things to lead, manage and operate a business in the style of a superhero, a business model similar to a Hollywood movie is a true startup God, the world has changed radically, which means that people can start a business a thousand times smarter than that, even a million times But we can't break it, we are afraid of failure or attach too much importance to old-fashioned success, so we avoid adopting a new perspective and giving up our own super-opportunities Simply because we don't climb high enough to see! So we worship the banyan trees to start a business, white hair still struggling with work, never enjoying life to the fullest (I'm sorry to be this frank!) We shun young people who start their businesses with rocket speed, using the power of the times to magically go far without much effort We even see them as little brats who are only good at grabbing the opportunities in front of them We have no idea how quickly they learned, how they 18 erased their old thinking, how monstrously opened their minds to being able to catch tipping points development of the times We pouted our lips and slaughtered the freedom of those kids, we can't believe how they can go on gossip day and night and still generate trillions of revenue! I have mentioned the word smart many times I think this is the key to entrepreneurship in this era, in this period and in the near future In the distant future, I'm afraid it's enough to upgrade to super smart! Oldfashioned efforts are not enough to guarantee success, sometimes the more old-fashioned efforts will bury us in the black mud of obsolescence I'm writing these things to throw water in my face, to be even more serious about upgrading myself in a completely different way than before, changing my view of entrepreneurship in a completely different way Many of you who know me see me gossiping day and night, but this is the period when I am breaking the most old things in my life to step into a new page of entrepreneurship: Maximum leisure, dark serenity maximize, enjoy life to the fullest and find ways to maximize intelligence I still fear that I am not prepared enough to be a part of the future! In my view on entrepreneurship, I'm really serious about the tsunami of the coming technological revolution, so serious that I'm willing to wipe out my old businesses myself, I believe that the fundamental change is taking place to the impotence of the entire human race One is: we buy tickets to board this train and sit in first class to take the train to the future, or we will stay in the past forever! 19 THANKS FOR WATCHING ! References section https://cafef.vn/ https://en.vneconomy.vn/ https://cafebiz.vn/ https://www.fool.com/ https://www.khanacademy.org/economics-finance-domain/core-finance https://www.morningstar.com/ 20 ... be known before starting a business things you need to know before starting a business: Make sure you have enough capital to start selling your first products Starting a business you have to accept... breakthrough to create something that is not available in the market or create a better value than what is already available, such as being able to create a niche new in production, a new business. .. world has changed radically, which means that people can start a business a thousand times smarter than that, even a million times But we can't break it, we are afraid of failure or attach too much