HOW TO START AND RUN A SUCCESSFUL BUSINESS

HOW TO START AND RUN A SUCCESSFUL BUSINESS

(By Iftikhar Anjum)

Personal business is the guarantee for financial independence. Later or sooner we have to start our own business. A survey has been made that almost 80 to 90 percent of the people want to start their own business in life but they can’t start it in their lives. The reason is that they are not sure whether they will be successful or not. They do not trust in their abilities, in their skills. As a matter of fact the success of your business depends upon you. You will be responsible for the failure or success of your business. If you trust yourself and work hard you can create a success story.

It has been observed that 80 percent of the businesses fail in their first year of operation and 90 percent are failed in three to five years. Even people who have prepared an excellent business plan fail; even the people with a lot of money waste their fortune because of some mistakes in the business.

Today I want to share some basic requirements for running a small business successfully. Before going in details I would like to share a story of a young boy has passion for starting a liv stack forming business. He went to countryside and decided to buy a cow; he went to a farmer and asked him to buy a cow. The farmer told him that the average price of the cow is between  $2000 to $3000.

The boy told that he has only $100 at present. The farm owner laughed at his reply. After some bargaining, the farm owner said that he has one cow that he can give for $100 and he is not sure whether you are interested in buying that cow or not because that cow is so old and not very healthy.

The young boy agree to buy that cow for the sake of experience, he paid the money and asked the owner the owner to deliver the cow after a week at his place so he may make some necessary arrangements for that. After a week the farmer came with the cow. He told the guy that he brought the cow but the cow could not survive on the way, as she was very old and sick. When the guy asked for the refund, the farmer replied that the deal had been finalized last week. The cow was yours. I kept that cow with me with demanding any extra money from you and even I drove to drop that cow here but unfortunately the cow died on the way so the refund of money is out of question.

He could give only one favor that he can take the dead cow back to avoid your inconvenience. The young guy thought for a while and asked the farmer to leave the dead cow with him. After few weeks the guy went to the farmhouse and asked he farmer, that he is ready to buy the cow costing for $2000 – 3000.The owner was astonished that a month ago you were not having more than $ 100 and what a big deal is that, in a month you got the huge sum of money. Did you get a good job or a won a lottery?

The boy replied that I sold that cow. The farmer said,” How can you sell a dead cow?” The boy replied that he raffled the cow and put an ad in he local paper that he wanted to sell a cow for only $ 10 through raffle. And the ticket amount is non refundable. The guy told that he collected $5000 through raffle entry. And I refunded the money to the winner and explained him that the cow could not survive as it was very old and sick.

I personally don’t suggest you to start your business like this and sell a dead cow to people but at the same time I suggest you that you have to think out of the box like this young guy to start your business.

Now lets talk about the three basic things starting and running a successful business I will discuss what it takes to start a small business and convert it into a business enterprise. For the success of business an entrepreneur should keep the following things in mind.

Firstly, you have to choose a suitable structure for your business.  The structure of the business plays a vital role in its success. The entrepreneur who chooses the inappropriate business structure his business is deemed to be failed later or sooner. 

People invest a lot of money for establishing a business setup and they put them in work for about 16 to 80 hours daily, they sacrifice their family time, their facility, their children and the other pleasures of life just to make that venture successful but after few years they don’t have any other option but to shut down the business because they have chosen the wrong structure for their business. And sometime, even it becomes very difficult to close the business because of the liabilities of the business become too high to be paid and you wished if you had not   started your business. It has been investigated that, these people work very hard, they put all the energies with honesty and dedication but in spite of all they could not survive and opted to shut down the business to avoid further loses.

One of my friends started a business, he spent almost 10.0 M in his business but although the business seemed to going well but he was bearing continuous loss. After two years he sold the 50 percent shares of his business just to safeguard the business but it could not survive for more than a year. And finally when both of the partners decided to shut down the business, there was a liability of about 4.0 m on the business. There was only one reason of the lass and that was the selection of the wrong structure of the business. The suitable structure of your business ensures the success .it is the important than everything in business.

Secondly, your business should be self-sufficient as soon as possible. Your business must bear not only its own expenses but also should pay you as well. It is wrongly believe that you must invest in your business for at least three years. The experience business gurus say that every business bears loss in its first year. And will come on break even in the second year and the owner will be able to draw some amount in the third year only. Most of these businesses do not survive for three years so generally the people lose their saved money and go back to home not only empty handed but sometime having a lot of liabilities which they have to pay for the rest of their lives. Ideally a business must self sufficient in first thirty days of the commencement.

If you are working for long hours in business, and putting your savings and even investing borrowed money but not thinking about the structure of your business, you will never be able to draw any money for your business. The owner of the business should be paid off. And it is only possible if the business is self-sufficient.

Thirdly, there should be scalability in your business. Means if you want to expand your business you should not bring more external investment in the business. It should be according to the capacity of the business. Means your business should be saleable in its structure. It should have the capacity to be increased or decreased according to your desire.

Sometime people run a business successfully. The earn good profit from the business and for the sake of expansion they open an other branch for the business. The expenses will be double but the income will not increased at the same rate.

Now what happens, they take money out from the parent branch to feed the new branch and there will be huge cash flow from the main branch.

It shows the misjudgment of the business owner. The business was self-sufficient but it was not in a position to bear the expenses of a new branch. This may create crises in the business.

To come out of these crises the owner has to sacrifice his drawing or has to invest his savings. The expansion is good for business but it should be planned according to the self-sufficiency of the structure of the business. If the business is generating good profit and can easily afford the expenses of a new branch then its is a good practice and if the structure is not self sufficient then the expansion will be harmful for the business.

If you want to start you business, you must plan the structure of your business smartly, which is guarantee to success in business.

The objective of starting your business is to have financial independence, have more time for family, to have more money, to have more freedom. If your business does not provide you these things then there is a problem with the structure of your business. You need to think about the structural reengineering of your business. Here is an example of the ideal structure of a small business, which grew to a big business.

A woman wanted to start a business of desktop publishing. She didn’t have enough money to start that business. She went to traditional business consultant for feasibility of that business. As per feasibility report she needed minimum $2000-3000 $ to start her business. She did not have the required amount to start that business.

She contacted to the business structure consultant for the solution of the problem.

She told the consultant that she has excellent sales skills and she can sell well but she does not have the required amount. The consultant suggested her a business structure according to her financial position. She was advised sign an agreement with the publishers who are already working in the market.

She signed agreement with the four desktop publishers for the sales. she got brochures printed for her business and including all other expenses she managed to start this business from her home with a little amount of $75 only. She worked very hard and she made good sales and in the first month she made a net profit of $2000. And it becomes double in the next month.

With this amount she got an office and hired some sales girls to increase her sales and later on she hired a manager as well. In a short span of a year she was well settled. She signed contact with many more companies on the same terms and conditions. Now she had more money, more time and more freedom. Now she only spent only few hours with her sales team and the manager and she has much time for her family and for herself.

Furthermore, there are two myths about starting a business which cause the failure of business

Myth 1: the better most traps                  

The entrepreneur thinks that he should come with an innovative idea. He should do something, which has not been done already in the market. Innovation is good but it is not for beginner.To introduce a new idea or concept you have to educate the public, and if you already have scarcity of fund how can you manage that.

So the best practice is to take a success example and start your business on the same pattern, you will hopefully get success.

Myth 2: A lot of money to start a business

 The second myth which stops most of the people from staring a business is that you must have a lot of money to stat a business. And his is what conventional business consultants, bankers, government officials and experience businessmen tell.

You need a lot of money to rent premises, buy furniture, telephone line and other basic things. And he second things is that you have to work for your business for 2 to 3 years without any salary as your business will not be in a position to draw out money for you. Even you have to contribute to bear the monthly expenses of the business.

Just think if you have to lend $2000 to$ 3000 to your business each month. This thing will not work long way. Most of the people who start their business in such a conventional way, they invest their savings in business, even they borrow money from some bank, they sacrifice the comfort of their lives, their family, and their children. They can’t work for a long time like this and the business get fail.

The statistics of most of the businesses, which grew to big enterprise, started with the amount of Rs 10,000 to 500,000. Any kind of business can be started with this initial amount.So as an entrepreneur you must know the reality of these two basic myths, which keeps you from starting business. You have to take advantage of others experience for your business.  Start your business according to your passion and interest. No need to be so innovative and perfectionist.

 Conclusion

Business is the source of freedom, financial independence, and stability. A person who is doing a job remains in the rat race and always worried about his expenses. They work for money for their whole life and if you want money should work for you, you have to start your business. Any kind of business that you like and passionate about. It is not very difficult a start a business. The money and experience are not the hindrances for business. Neither you need a lot of money not a lot of experience to start a business. You have to choose a suitable structure for your business, which will make your business self-sufficient and scalable. The myths about business are not true. If you are passionate about anything, nothing can keep you from doing and being successful

Bibliography:

1.     The rich dad, poor dad

2.     How to run a small business by Justis

3.     enterprenuership

            THE PROBLEMS ARE OPPORTUNITIES IN DISGUISE

Iftikhar Anjum

Different people have different views about life. Some people say that life is a bed of roses and for others it is a bed of thrones. But in my view the fact is something else. Your life is what you think about it.

Problems are part and parcel of life. If we want to spend a happy life we must understand the essence of problems in our life. Generally we think that problems must be avoided to stay happy and be successful in our lives. In this article I will teach you to see problems is a different perspective.

It is a very famous saying that happiness is not the absence of problems; it is the ability to deal with them. We cannot root out problems from our lives but we can learn the art of how to deal with the problems and learn to use these problems as stepping stone for success instead of considering them as stabling stones.

 I assure you that after reading this article your view about life would be changed. And the problems will not disturb you the way it used to do till yesterday and you will not avoid problems but you will welcome them in your life.

https://www.youtube.com/watch?v=bb2qVe_47SM&t=166s

As a matter of fact life is full of problems. Problems are inevitable in live. Some people enjoy their lives in spite of the problems while others blame problems and fate for their failures in life.

Today I want you to see the problems with a different angle in a different perspective. You will see that these problem are no more problems but opportunities for you to grow more and more, to be more successful, to be more happy, to be more satisfied.

 According to Anthony Robbins:

Every problem is a gift- without problems we would not grow.

Here are the some important roles that problems perform in our lives

Lets see how problems become stepping-stones for our success in life.

Firstly, the problems open new doors of opportunities in our lives. Sometime we spend our lives in miseries, with limited income and limited resources and we do not put efforts and even do not expect more from life. We think that we deserve only these miseries in our life.

If you too think the same way, you underestimate yourself, you want to spend you life in miseries but God has a better plan for you. The problem that you are facing presently is just a knocking at the door of new opportunities in your life.

Generally, We are afraid because of the change, as we don’t have strong faith in our skills and abilities. We mistakenly believe that future is hostile and it does not have something worthwhile for us.  We are pessimistic and just think negatively.

For example if you are doing a job, you are working in the same organization and on the same position for many years. You have managed your life according to your income. Suddenly your job has been removed because of downsizing in the organization. You must be crying as you do not know how you will manage your daily expenses, your home, you family etc. You are not sure whether you will get any job or not, and if you get will it as good as your present job is. Furthermore, you are in a position to start your own business, as you do not have required capital, market exposure, and business connections and experience. In these circumstances if you start your business there will be loss for sure, you will not be able to bear that loss and you life will be ruined.

Lets see this situation in a different perspective .If you will leave this job you will find a better job with better salary and better position, your income will be increased and you life style will be better. If you will leave this job and will start you own business, you will be a successful businessman and in the future you will be the owner of a business empire. Now you see that this problem is an opportunity for you, which is pushing you towards success.

Always remember the beautiful saying by Alexander Graham Bell

“ When one door closes, another opens;

But we often look so long and so regretfully upon the closed door

That we do not see the one which has opened for us.”

So whenever you face problem, say hurrah, its time to move forward, its time to get better job, its time to start a new venture, its time to make a new experiment in life. Problems are not stabling stones but these are the stepping-stones to push you to the arena of success.

When you face big problems, feel a big joy in your heart because it is said that

“The greater the obstacle

The more glory in overcoming it.”

So, fear not, in life, problems are there to make you stronger.

Secondly, Problems pull us out of our comfort zone, correct us and teach us some valuable lessons. Most of the time we resist change whether positive or negative. We get used to of our routine activities. We do not want to leave our comfort zone. And this comfort zone makes us sluggish and deactivates creative elements in us. Then problems come and force us to come of our comfort zone and we feel that we are in a new world of opportunities.

The problems that we face guide us that we are not moving in the right direction. So whenever you face any problem, never   just focus on the problem, analyze the reason of the problem and look between the lines where you have made mistake and what corrections are necessary to be made.

For example if you have been terminated from a job. Don’t be sad on it; take it as an opportunity for a better job and successful career. Try to find reason and learn lesson from this problem.

Ask few questions to yourself:

Why have I been terminated?

What mistakes have I made in the current job?

What hurdles did I face in giving my best in the job?

How can you avoid these mistakes in the future?

 You will find valuable lessons, which will make you successful person in the future.

Remember all the successful people have not been successful in their first or second job and nor all the entrepreneurs have been successful in their first business ventures.

The circumstance was not always in their favor. They fought with the circumstance, have grown out of the adversities and have overcome the problems in their lives. Lets take few examples.

Steve Jobs

Steve jobs have been terminated from Apple.  He was left devastated and depressed at the age of 30 when he was removed from the company he has started. He established big enterprises like Next and Pixar

Bill Gates

The richest man in the world and the most successful person in the world bill gates have been dropped out from Harward Unoversity and failed his business Traf o data.

Ibraham Lincon

Failed in business three times and failed campaigning seven times before becoming president of United States.

Michle jorden.

The world best player of basketball.6 time world champion in basketball. He has been cut from the school basketball team for a lack of skills

Colonel Hardland David Sanders

The founder of KFC. More than 1000 restaurant rejected his chicken recipe.

Hennery Ford

 Hennery Ford was a failure at three businesses before he succeeded with the Ford Motors Company at the age of 53.

J K Rowling

 One of the most famous novelist of the worlds .12 publishing houses rejected her novel Harry Porter.

Thomas Edison

Inventor of the light

His teacher told him that he is so stupid to learn anything

Walt Disney

The founder of Mickey Mouse.

Was fired from the newspaper for lacking imagination and have no original ideas

All these people faced problem in their life and career. They came out of their comfort zone. The problems have pushed them out of their comfort zone and they have won the laurels in their lives. Their problems did not make them depressed and demotivated but they learnt lessons from their failures and took some corrective measures in their lives to achieve success.

 So always take problems as opportunities for making corrections and learning new lessons in your life.

Thirdly, problems bring out our hidden talents and potential. God has created all human being equal, with equal talents, faculties and capabilities then why some people are more successful than others. The reason is very simple some people do not know themselves. They do not know about their talents and capabilities and remain unsuccessful in their lives, while other recognize their talents and potential and become successful in their lives.

Lets understand the true meaning of talent. According to the dictionary meaning a talent is a natural endowment of a person. We are all born with some kind of talents. It depends upon us how we discover, grow and develop it. The seed of talent is there in us by birth.

Now the question is how can we know our hidden potential. Only a few people deliberately try to recognize their hidden potential but thanks to the problems that we come across during our life. The problems of our life bring us face to face to our hidden talent and then we exploit this potential to become success full person in our life.

Furthermore, talent is not only our capability but it is doing the best with what we have. Hard work is inevitable to exploit your talent to excel in the world. You can leverage this talent in your work, or use them to network and making valuable connections.

It is very important to know what your talents are. When you discover your talents you feel more in tune with your life. And when you capitalize on your talents, it is no longer feels like work, it is like living. It will make your work more enjoyable. Anything that you enjoy while doing is bound to be successful.

But the real dilemma is that more than 80 percent people do not put efforts to discover their talents. Only we focus on these things when any upset occurs in our lives, when we are surrounded with problems then we look into us and find what is hidden inside us, so problems are blessings in disguise.

In the last but not the least, Problems increase our self-confidence. When we encounter with the problems and overcome these problems, it increases our self-confidence. Problems boost our confidence.

Self-confidence is one of the most essstial ingredients of success recipe. A confident person believes himself, his skills and the most important, he believes in his ability to succeed.

Self-confidence makes a person persistent. It’s not necessary that a self-confident person will not face any kind of failure. He may be failed in his attempts. But the temporary failures do not shake strong faith. He takes this failure as a temporary failure and keeps on trying until he achieves his goals.

 A self-confident person not only has strong faith in himself but also makes others to believe in his abilities.  His strong faith reflects from his words, his body language and his attitude, it ultimately irresistibly convinces others to believe in you and your skills.

 A confident person is more active, likely to take action, to stand up and seize the moment. He does not focus on the failure but on the success, he thinks about success not about the failures. With this positive metal image and strong faith he takes initiative and gets results according to h is expectations.

On the other hand the lack of confidence makes a person passive. He fears to take any risk because he has doubts about his abilities, skills and his shaky faith brings about his failure. Confidence gives you the power to take initiate rather than just looking at the situation distantly. He enters into the world of actions and gets into the arena of success.  Although self-confidence won't always guarantee that you will succeed in life but still you will have at least 10 times more chances of success than that of a person who lacks confidence.

It’s very important to understand the difference between a confident and over confident person. There is a very slight difference between being confident and over confident. Overconfident person is a blind arrogant. A confidant person understands the risk and takes a calculated risk and where as an over confident person ignores the risk.

A confident person takes initiative and does not feel shy, he becomes persistent in his work, he has the ability to say no to inappropriate obligations and say yes to the new opportunities. He overcomes the fear of risk have strong faith and become a successful person.

 In nutshell, we can say that the problems are our great benefactors. They open the doors of new opportunities for us .No doubt, the problems are blessings in disguise. Sometimes we deviate from the right track; the problems bring us back on the right track and make corrections. These are the greatest teachers.  We must not avoid problems but we must face them, deal with them and get practical experience of life for successful life.