Oleksandr Stepovyi, the Head Editor of the “All about Accounting” newspaper met with the students of the Department of Accounting and Analysis. The topic of the conversation was – how to set up a small enterprise and develop it to the level of profitability. Mr. Stepovyi gave valuable advice, following 10-12 years of people’s experience who run the entrepreneurship.
The small business is a backbone of Ukrainian economy. For example, if one of the three giant enterprises goes to the wall, it will inflict heavy losses. If 200-500 thousand among 1.5-2 million of small enterprises become bankrupt, the economy will be shattered. The next important advantage of a small against a large enterprise is its mobility. Unlike the large company, a small can be reorganized quickly or the strategies can be changed. However, I advise to be a hired worker at first and the employer’s example should be your cautionary tale. In order to state your work experience in resume, you should take up any job even voluntary. Your set up business might go up or down. It will depend on market trends. But do not expect that everything will go well immediately. Great things start small. Google Inc. or Apple Inc. started their business with several people, for instance.
You certainly need clear and detailed business plan. The all investment is not to be put in at once. A credit, if necessary, should be taken in the national currency. And remember that we do not have a low-interest credit, so you have to be able to sustain your business. A year or one and half year might pass to break even. After that you will profit.
The system of coworking model, which is developing in Ukraine, affords great opportunities to the small business. It is about the possibility of renting the workstations (desk, chair, computer, Internet access and office equipment) in a coworking center for a small fee and working there in case the entrepreneur has no money to keep his own premises.
Any small business needs an accountant. If the owner or co-owner keeps accounts, the company’s existing will not be long-lasting. He should control, checkup and be informed, but do not take upon himself the accounting duties. Every businessman has the characteristics of entrepreneurs, managers and specialists. You have to determine which of these features prevail as it is impossible to combine all in one. If you are the entrepreneur by 80-90%, then you cannot do without a manager and specialist.
To be aware of business technology perfectly is not a victory yet. People’s queues for your exclusive baked cakes are not a pledge of success. The success is a synthesis of many factors. It is important to be able to estimate and forecast that is to build a company. You should not save on an employee who once a year gives an idea that brings in big turns because the emotional intelligence cannot be neglected.
Money is not a criterion of values. The important thing is to like your set up business. Even Confucius said, ‘Choose a job you love, and you will never have to work a day in your life’. There will be no business without this factor.