World Business Web

Risk Tolerance

An successful entrepreneur seeks to minimize the risks in their businesses.

To do this, is reportedly training, prepare, plan, foresee possible mishaps, designed emergency strategies, etc.

However, it is aware that more planning and preparation you do, there is always the risk that things do not turn out as expected, for certain contingencies, setbacks, difficulties or problems.

An entrepreneur successful entrepreneur is aware of it, so prepare yourself mentally, you know risk is part of the life of an enterprising entrepreneur, and pits and assumes total responsibility for what might happen.

Creativity and innovation

An entrepreneur successful entrepreneur is a creative and innovative.

He knows that in the present context, due to high competition and consumer demands, the key to business success is to be constantly creative and innovative.

Know that the life cycle of a product is becoming shorter, and therefore is constantly being creative and innovate, either by creating new products or services, or redesigning or improving those already offered.

Business Vision

An entrepreneur successful entrepreneur has the ability to identify business opportunities where others do not see.

To do this, is constantly analyzing the market, analyzing the new tastes, new fashions, explore trends, etc.., Known also projected into the future and anticipate the changes ahead.

Also, is constantly in search, and attentive to the emergence of new business opportunities.

And, when it detects an attractive, he studies and analyzes, and if you find it is a good opportunity, not waste time and quickly get all the necessary resources to enable it to capitalize on that opportunity.

Ability to surround himself with the right people

An entrepreneur successful entrepreneur is able to identify people who can help them succeed in their businesses or business.

Not looking for people who know less than him, but looks best and brightest people in certain aspects he knows that the only way you can create a good team that complements it.

He can identify these individuals not only its appearance but also for their words, gestures or manner of expression.

And then, once identified these people, hires or is associated with them, and then working with them, knows lead them.

Leadership

The successful entrepreneur exerts a leader.

Has the ability and capacity to influence, induce, encourage and motivate their workers so that they follow him with enthusiasm, willingly and unconditionally.

His charisma and inspiration makes their workers or people around them are identified, not only he but also with their ideas, projects, ventures and businesses that choose to make.

Ability to plan

A successful entrepreneur is aware of the importance of planning.

Know that the plan objectives, resources and strategies, have a greater chance of success, as will achieve more efficient management of its business, in addition to minimize the risk.

As before each enterprise or business that decides, well researched, reported, analyzed, and all action plans, objectives, resources and strategies to be implemented.

Decision-making capacity

A successful entrepreneur has the knowledge, experience, ability and common sense needed to make good decisions.

He knows that the business world, every decision is important and, therefore, before taking it, take your time, meditate and look good.

But he also knows that sometimes must make decisions quickly. He can identify the moment and making quick decisions, trusting your instinct employer, without remorse and taking responsibility.

Ongoing training

A successful entrepreneur knows that you never stop learning; you know that there is always something new to see and learn.

Therefore, despite what many who know or be able, always looking for ways to continue learning or training, either on their own or by attending courses or seminars.

But not only seeks to further training to thereby be more competent, but also to keep pace with new developments, new technologies and new business techniques or tools.

Know that change is dizzying, and always tries to keep up with the new changes or developments, and thus they can be used for or to deal with them promptly.

Today, due to the constant changes that occur, it is extremely important to pay attention not only to the internal aspects of a business (marketing, finance, production, personnel, etc.), but also to external factors or aspects.

An external analysis is to identify and evaluate trends and events that happen in a business environment that are beyond their control and that could benefit or damage it significantly.

The reason for doing an external analysis is to identify opportunities and threats, so that they can formulate strategies to seize opportunities, and strategies to avoid threats or at least reduce its consequences.

A site analysis can be done in various ways, a formal way of doing it is through the following process:

1. Define key environmental forces

Is to identify the forces or factors that may influence either negative or positive on the company.

These forces or external factors may include:

Economic forces

Refers to the forces that affect the country’s macroeconomic situation, i.e., the general state of the economy.

The main economic forces are the growth rate of gross national product, inflation, interest rates, income per capita, trends in unemployment, currency devaluation, trade balance, balance of payments deficit, etc.

Social forces, cultural, demographic and environmental

Chief among these forces are fertility, mortality, aging population, age structure, migration, lifestyles, attitudes toward work, pollution control, social responsibility, etc..

Political forces, governmental and legal

These forces must be taken into account especially when you depend on government contracts and grants. Should be taken into account before entering into transactions in other countries, and the same when you are starting a business, for example, find out about the granting of permits or licenses before deciding the final location of the business.

Chief among these forces are government regulations, patent laws, laws on monopolies, tax rates, increased minimum wage, legal stability, fiscal stability, prospects for legislation, etc.

Technological forces

Technological forces may be the most serious threats, just remember the number of companies operating a few years ago and have stopped working because of the emergence of new technologies.

These forces include the new machinery, new equipment, new production processes, new systems of communication, level of technology, information technology, etc.

Environmental forces direct action

Which in turn are made up of:

* Competitive forces, competitors, their strategies, strengths, weaknesses, competitive advantages, capabilities, resources, objectives, strategies, sales volume, market share, market entry of new competitors or foreign products, etc.
* Substitute products: the existence or development of products that could replace the kind of product from our company.
* Suppliers: quantity, quality of inputs, sales policies, entry of new suppliers, etc.
* Clients: profile, preferences, tastes, habits, buying behavior, etc…

2. Identify sources of information

At this point we determine what the external source through which we get the information we require, which can be classified as:

* Primary sources: market research, surveys, interviews, general public, customers, members of the company, experts, consultants, etc.
* Secondary sources: publications, newspapers, magazines, reports, statistics, government documents, books, manuals, Internet, etc.

3. Information Collection

Once selected information sources; we turn to the task of collecting or gathering information, a task that should be undertaken by all members of the company.

4. Assessment Information

At this stage we evaluate the information, making forecasts or projections if necessary.

We must remember that the purpose of evaluating this information is to seek opportunities and threats, some simple examples of how to perform this evaluation or analysis are:

* If, for example, look at the sectors that have higher growth (for example, mining or construction), then break into these industries would be a good business opportunity.
* If, for example, we detected the entry of new suppliers with better quality inputs and lower prices, then this could be an opportunity.
* If we detect the entry of new technologies, for example, information technology, this could be an opportunity, if they acquire it in time, or it could be a threat if we do not update our own, and let the competition does.
* If, for example, the government intends to sign a free trade agreement with a foreign country, this could be an opportunity to export our products to that country, or it could be a threat by the entry of products from that country make us competitive.

Once we have evaluated the different opportunities and threats that could have, we list in order of importance.

5. Make decisions or to design strategies

Finally, after analyzing the information, we make the decisions and design strategies that allow us to seize opportunities and tackle or evade the threat, or at any rate mitigate their consequences, starting with the opportunities or threats important.

For example, if the government is to sign a free trade agreement with a foreign country, and this will facilitate the entry of products with lower prices to compete with ours, then the way to counter this threat could be to leverage our competitive advantages and increase the quality of our products.

Growing a business means increasing the number of customers or the amount of sales.

To do this we can, for example, create new sales promotions, train staff, improve production processes, designing new products or redesign we already have, offer extra services, etc.

But when it comes to growing a business, generally refers to a significant increase in customers or sales.

And the main tools for achieving this are: partnering with other companies, serve new types of consumers, increase sales points, to venture into foreign markets, improve customer service and increase advertising.

See below an explanation of each of these strategies:

Partnering with other companies

Partnering is to make alliances with other companies in order to provide benefits to both which, if not through an association could not be obtained.

These partnerships might include, for example, in agreements to combine resources (e.g. financial, human, technological), combine functions (e.g., production processes, product distribution), information sharing (e.g., market knowledge) share distribution channels or outlets, or customers (for example, if two companies have different kinds of products, but similar types of customers, and this allows us to offer our products to their customers, and her products to ours), etc..

The idea of partnering is finding businesses the same size as us, and with similar aspirations for growth that somehow, through an agreement, is capable of greater profitability for both, or a competitive advantage over other rival firms.

Address new types of consumers

Address new types of consumers means directing our products or services so that they are targeting different types of consumers who are already taking, but without neglecting the latter.

For example, if our products or services are dedicated to people of a certain age range and a certain socioeconomic status, could also choose to target people in other age ranges and other socioeconomic levels.

This may be necessary to create new goods or services, or simply adapt the products we already have, so they too can meet the needs or desires of other consumers.

Increase sales points

Increase sales points are to increase the places where we can offer or sell our products to final consumers.

The idea of increasing sales points is to expand our market and reach consumers of the same type that we are treating, but are in locations that were not distributed our products.

To increase the points of sales, we open new stores, stores, branches or franchises, we can make use of new brokers or dealers, or we can create new sales channels such as the creation of a website where we offer and sell our products.

Seek external markets

Export is a variation of the previous strategy, is to address new markets, but they are abroad.

In order to export must seek to make contact with foreign intermediaries that want to distribute or sell our products, or look for customers who buy from us directly.

The easiest way to achieve this is by creating our website and promoting our products on the Internet, another way to start exporting is participating in international fairs.

But before that we must consider that the first requirement to export is to have a good quality product.

Improve customer service

Provide good customer service is the most efficient way to grow a business. Is to provide a good service, great staff, comply with treatment and promises to provide prompt attention, personalized service, etc.

This involves training all our staff, especially one who has to interact constantly with the customer.

Providing good customer service allows us to grow, because not only we get the client to buy or visit again, but that we also recommend our products or services to other consumers.

Increase advertising

Finally, another way to grow a business is increasing investment in advertising, for which you do not need to spend much money.

To increase the publicity we can, for example, make use of flyers, posters, brochures, business cards, participate in fairs, set up a website and advertising on the Internet, giving gifts to the printed name of our company, etc.

But always bearing in mind that the best advertising is word of mouth, which is to create or provide a product or service of high quality, to the point that allows us to always be recommended by our customers.

The concepts of business and company are somewhat subjective, each employer has its own concept of what a business can mean a company, and for example, some are different concepts, while others simply mean the same thing.

Let’s look at what is in our opinion the definition of a business and an enterprise, then, what we think is the difference between them.

Business

A business is an activity, system, method or way to get money in exchange for providing some form of benefit to others.

An example would be the creation of a website where we offer free advice on business, and earn money by advertising we place on it. Another example would be applying for funding, travel to a foreign country, buying a used car lot and then sell them in one’s country.

But a business is an entity created or organized in order to obtain money for production activities (for example, a furniture factory), marketing (for example, a car parts store or a distributor) or services (for example, a restaurant or a garage), to benefit others.

Company

Now for the definition of enterprise: an enterprise is an entity created or organized in order to obtain money for production activities, trading or services that benefit others.

As we can see the difference between a business and a company lies in the first definition given of a business, i.e. a business is similar to a company, with the difference that a business can also include activities, systems or methods to obtain money in exchange for providing some benefit.

An example that could plot the difference between these concepts is that of a business that involves buying a house and then make money by renting or selling at a higher price, and a company engaged in buying homes and then rent or sell at a higher price.

In the first case, the business of buying a home and then rent it or sell it, is a method or way to earn money for providing a benefit to others, while the company dedicated to buy homes and then rent or sell is an entity formed to conduct this type of business (real estate company).

These concepts can be confused, thinking that a business is a small company (which is commonly thought), however, this is not correct, as in the example, the business is a method, while the company is an entity that these methods. Besides taking into account the second concept that we in a business, the real estate company could also be considered as a business. In this case, a real estate business.

Below is a list of some of the businesses that we believe would be most profitable to create today, taking into account the present.

Small Business Consulting

Every day you create hundreds of new small businesses, most of whom have trained entrepreneurs with the necessary experience to tackle any difficulties that may mean creating and managing a business.

So a good idea for a profitable business could be the creation of a consultancy focused exclusively on small business.

This consultancy would cover topics such as business formation, marketing, advertising, human resources, accounting, finance and Internet sales.

To create this business, we can begin installing a small office at home, and start our promotion creating a website where we could provide free advice for small queries and, thus, engage the customer to then hire our services to major consultations.

Being able to start this business at home and start promoting it online, make our business into more profitable business and low investment.

Health Food Restaurant

More and more people with an obsessive quest to stay healthy and feel good, and increasingly are creating the awareness that to achieve this, one major factor is the consumption of healthy foods.

As today is giving a tendency for the consumption of healthy snacks, and against junk food or highly processed.

So a good profitable business idea could be to create a restaurant or store that offers this kind of light and healthy food.

This light and healthy food need not be a dietary or vegetarian, but what you are looking lunches today is healthier, yet tasty.

An example of this type of healthy food while tasty could be the Japanese, which seems to be becoming more popular.

Fitness

Similar to the search that is given today by staying healthy, it is the quest to achieve a sexy body and in good physical condition.

As a business idea to meet this demand would be the creation of a gym. For which we should have a large room, which must be conditioned with weight machines and cardio equipment for spinning, aerobics, etc.

Spa

Similarly, and given the quest to maintain a good health and ensure precise fit, too, increasingly people are looking for physical beauty and relaxation.

As a business idea that meets this demand would be the creation of a spa, where toast body and facial treatments and relaxation therapies or services or massage.

Virtual store

The market of Internet users in Latin America is growing at a rapid pace, more and more are increasing the number of web surfers, and increasingly are becoming common Internet shopping.

As a good business idea would be to create a virtual store.

The number of people shopping online is increasing; however, there is still some distrust to use this medium for shopping.

So our store would have to start offering products that users consider there is no risk at the time of purchase. Also, as a way to gain confidence in users, we can create a system of guarantees or seek to obtain a quality certificate.

Some products that we could have a good reception in a store are books or manuals, tech accessories, spirits, software, etc.

Technology shop

Technology advances by leaps and bounds, and the life cycle of technology products is growing shorter. A technological product fashion moves quickly whenever there is a new model.

And it’s a consumer trend, which quickly dispose of their technology products, and go running to the store in search of new model.

As a profitable business idea would be to create a store where we offer products such as phones, computers, laptops, iPods, digital cameras and other technology products and accessories.

Also, our store of technology products could be a virtual store, which would not have to invest much money, which could manage from the comfort of our home.