Large or small

Offline in this regard does not differ. You can work in an office, you can work as an entrepreneur and an employee in one person. But how are you sick or tired - all denezhek no.

Willy- nilly, against this background that you start to think how to build something more permanent, brings a money regularly, regardless of your. You begin to envy the creators of Facebook, and even just a successful start-ups. It is normal. It shows healthy ambition. But the first steps in business has led many to stop.

Business - is a machine that you are collecting for a long time in the garage, spend a lot of time debugging. And then it pleases you long jaunt. You can, for example, become a popular blogger and shoot pictures around the world. That's somewhere on the stage of renting or buying a garage at work and the question arises - what kind of car to build.

The basic error of the majority - do not take into account the high cost of small production. When you have a production line of a million or a million Chinese people - can you allow yourself to do things stand in the market, 80 bucks, 10 bucks. When you sit down to do it himself - the cost rises at times, and the profit does not seem so nice.

Remember the tale of Dunno on the Moon - Doughnut there was an oligarch, trading in salt. But instantly ruined when his competitors have lowered prices. They were big and could not afford it for a while. A Donut was busted and was monoproizvoditelem. I was not portability Doughnut - high cost of killing his business. If he had extracted the salt in 10 % of its market price, it could survive even with a discount of 80 %.

Low margins can afford only two categories of producers: market leaders, and those who can still reduce the cost of.

So before you start any business you want to turn from a small trial in a large and grand, it is necessary to choose two options. Or you are trading like crazy margin of 300-400 %. Or sell something so large that the cost of your labor and your employees be more than covered by even a small margin. You can spend a month on the sale of a crane, but to capitalize on this 200-300 rubles.

For any business nizkomarzhevogo must be taken immediately and the mass. This is not the case that you are selling 10 units at first, then - the 100, then - in 1000. It is necessary to immediately enter the amount in 1000. In fact, a gradual increase would kill a business - not to mention the economy, you simply do not reach even the motivation to continue. This means that you will need a significant investment. It is so significant that they can return you will not soon, but secure the necessary volume of sales for the operation of the business.

Let's do a simple analysis of the full investment and reinvestment. Open a business, pouring a penny, earning 10 cents. Pouring 10 cents - we get 30. And so on. Get - invest. Months pass - but the business does not bring anything - everything goes into the growth.

With the full investment of just pouring 100tys. cents and go to the desired volume. Business is pay off and no longer requires the reinvestment. If it does, it is already - at the request of the owner. After a while, when the business registers profit, then slowly begin to return the initial investment.

Now imagine that the two rolls merchant. A network of small gradual shirit gamburgernyh. The second is late and comes in a year - puts a franchise McDonald and kills a few months of business first. At first there is simply no funds for further growth, because his model does not have significant funds available. And the second took the entire market a broad front and quietly closed the competitors room to grow - stupidly nowhere.

But back to what was said at the beginning, if you make an exclusive and expensive thing - you are hard to squeeze the market, as even one sale will solve your problems in terms of survival. And vysokomarzhevymi goods the same story, for example, cellular retailers make big money trading accessories.

Before you get in somewhere - think. Business - it's like chess, only the loser loses all times, than has.

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