The 4 most mistakes people don’t often consider in a trade
There are some common mistakes in a trade and to be honest, the mistakes seem to come from neglect.
Even in the ideal and hypothetical case that the premises are owned and you have small savings to start, the vast majority of merchants forget that there are some initial expenses that, in many cases, can amount to half of the available funds. You might need to find people online, communicate with them, it all takes money.
Our advice: Here are some examples of the previous costs that can influence the cash: the costs of paper processing (may include notary expenses); if the premises are rented, the two months of bail that are required by law; whether it is owned or rented, it is normal to ask us for a review of the electrical installation and an adaptation to the new activity. It is very likely that the Administration section will request plans of the premises that should be supervised by a rigger.
And once started; do not fall into the error of many traders to do their treasury calculations based exclusively on sales. That is a mistake in any business, and even worse in the trade, always exposed to suffer unforeseen events.
Our advice: It is very important to make a good business plan with a forecast of five years and that includes both the positive and negative scenarios to verify the real viability. In addition, you must collect the forecast of a healthy box for a whole year or, at least, the first six months, to be able to meet fixed costs, insurance, salaries, taxes, contributions, energy supplies, stock management, etc.
Beware of bureaucracy
“He had rented the premises, hired the machinery and negotiated the change of supplies to start operating on March 1. In principle, everything seemed simple since it was a place that already had license, but suddenly began to put more and more obstacles from the City Council and ask for more documentation. Five months later they had not given me the papers, “admits a merchant.
Our advice: It is very important to be very scrupulous with the formal requirements and to calculate very well the deadlines for not advancing excessive expenses until the steps are not really channeled. The procedures for changing licenses or licensing can take a long time and you should have it planned in your calculations.
Flee from the ‘low cost’ mentality
Location is key to the success of a business and the requirements to determine it vary according to the activity, that’s why it is so important to define your model well.
Our advice: Do not be blinded only by the price or location of the place. You must know very well what type of business you want to set up and who you will manage and depending on it, you will need to identify the neighborhood, the area and the type of location you need: on a main or secondary road, close to our competitors or remote, large or small. And if you find the perfect place, forget about the low cost mentality. It is true that it will be one of the most important costs of the business, but it is also true that a good location can make the difference between success and failure, because it will generate the constant and adequate traffic in front of your shop window.
Not adapt to the public
You open your establishment and establish a schedule of 10 to 14 and 17 to 20. After eight months you have closed. Why?
Our advice: It’s your business, yes. It’s your company, yes. But you owe it to your audience. In the example that concerns us, we have seen that they are couples in which the two parties work: in the schedule that you have established it is impossible that they can enter your store or even to browse what you have inside. Also make sure you can find out who called you by having a reverse phone search facility.