Advice If You Want To Set Up Your Own Company Or Business

By Author: Marcella Jaylon
Total Articles: 73
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Students will find this particular familiar, especially if you are one who has just ended their studies and is now thinking about starting a new business. You could have all the book-smarts but you won't have the necessary experience to understand the sector you are entering.

So for recent graduates here are a few pointers and advice to help you with your baby-steps in the world of work and even to review your idea and decide if it is in fact worth spending money and time on. This is quite obviously something you should know before you invest any money and start trading.

Firstly, take the advice of someone totally impartial. Just because you think the business is worth investing in doesn't mean it is. Don't just take the advice of a friend; instead ask a financial advisor or someone with experience in the sector. These are the people to talk to as they have the experience and can review the profile of your business and tell you whether it is worth taking to the next level. Something else to consider is trying to get a loan from the manager of your local bank, if the loan is approved then you will immediately know ...
... that someone else thinks your company is worth investing in.

You should then estimate how many customers you are realistically likely to have or how many products do you think you will sell. You really should have a good idea of how much money you will generate and even how busy your employees are going to be. This will then enable you to...

...figure out how much profit you can expect to make. Are you going to be making $70,000 per annum, or maybe it'll be $15,000 instead? This in the UK would be £9,600. By using this figure you will then be able to figure out exactly when you will break even and even how long it will be until you make a profit. You can't afford to spend your business income before it has developed but you should rather have an idea of when it is best to spend money and when it will benefit the business.

Next, what about your company overheads? If you will be taking Singapore office space then how much is the lease? And how much square footage is needed? Another thing to consider is how many employees will you have to manage and run your company and what amount of money will have to be set aside for wages. You may also want to think about whether your business will need staff on reception and security staff. It all adds up.

Then you should also think about over types of outgoings, such utility bills, commercial insurance, computer maintenance and IT solutions. And you also need to know that when you are creating a business projection you should under-estimate any income and over-estimate outgoings, by doing this you should have a good idea of how your business will function and successful it will be. It also means that if you expect your company to make a profit then you can be certain it is not because you have been too generous with your forecasts.

Before anything read through this advice again only then should you think about starting your company and take a viewing of potential offices.