I started a business, but I have no profits

Is it normal for the beginning of a venture, feel that I don't win money?, Karen Córdova asks, who sent his concern to an entrepreneur's newspaper on November 25.

The answer is yes.Feel that we don't win money is the most normal when we are starting (or maybe for a good time).We have invested so much energy, creativity, encouragement and money in starting a business, that when it does not take off as we imagine after a few months we feel enormous frustration and concern.

Why does this happen?

The first thing we must be very clear is that during the first year it is almost impossible to have profits.This rule does not run for informal businesses, with not much more projection than "turning" on a day -to -day life and generating resources to survive, but for those who have a long -term development scheme: those where it was necessary to investAn important sum in the purchase of supplies, in the creation of a web page, in an e-commerce channel, a physical place.Probably, during the first months all gain is inverted, since we are realizing, for example, that we need to make innovations in the store, or buy new products, or solve an unforeseen.

Almost all entrepreneurs start with our lifelong savings, with a settlement or asking for a loan.That money, usually, gives us a matt.But silver ends and fixed needs and expenses continue.As much as we make an exhaustive budget about how much we need to invest in each area, things always escape, there are always "unforeseen doubles", whose solution exceeds the money that, precisely, we leave for these events.

Let's look at an example that applies to anyone.We want to renew the bathroom of our house and we have calculated that we need a million pesos, because we are going to do it again: to put a new cup, tub and sink;Also to change soil ceramics.But one day the teacher meets a pipe break that nobody had warned.What do we do?

In my area - the warehouses - for example, I know that more or less one needs about seven or eight million to start one with all the indispensable machinery - vitrines, colegers, cecin cutters, merchandise, etc..- But: how will we anticipate if we will have any legal problems or if we will need to spend more money?Definitely not being aware of this point is a first error.

A second mistake is to project sales during the first months in a positive way.Or, worse, as happens to many entrepreneurs: do not make sales projections.In my experience helping the warehouses I have seen that many do not calculate how much they must earn even to cover the fixed expenses at the end of the month.This happens because they do not understand the basic notions of the business, or see their entrepreneurship as something small, so everything is small.No: you have to think big, although it is just starting.

"@Elaliiinadia: How about we not demonstrate how to take an apical click Thx" Same

— Madz🍓 Fri Sep 14 18:53:49 +0000 2012

Más sobre Diario de un emprendedor Transformadores

It happened to me.As I told them in my first column, a few years ago we signed a millionaire contract with a large company that left my husband and me with an amount of money we had never handled.I dreamed of having a boutique, so when I saw myself with the necessary money to invest I did not think twice.I found a place with a very expensive rent, but I had how to pay it.I remodel it completely: I put mirrors, floating floor, new furniture;It was beautiful, but I didn't have the vision of asking me: will it be good to put a boutique here?

For the business to be profitable, I had to sell at least 300 thousand pesos a day from the first day.I never achieved that goal and, what I earned, I was going to pay rent, light, water and the basic expenses we have when formalizing, such as VAT, patent, accountant, impositions, etc..During the following months I had a true internal battle.My rational side showed me that the number were red.My emotional side told me: "Give it, you can, you gave life to this".

Say life, but: is it worth bleaking along the way?

My big mistake was to get into a item that I didn't know.Not dominating it, I didn't know how to get better prices and products.Nor did I analyze whether the place was adequate, or if the public of the sector would be my clientele.I focused on having a large store, a computer and a inn, but not to understand the item.Nor did I let the business on social networks know, I waited for people to buy alone, as I happened to me in the warehouse.There are areas where one must analyze very well how to enhance the sale when we are not offering a product of first necessity.

Therefore, if they feel they are not winning, they must ask themselves from now: what am I doing wrong?You have to put a limit according to the reality of each.You have to sincere expectations.

Good news: it is normal to make mistakes when undertaking.The important thing is to realize whether that error is rectifiable or cannot be traced before the savings are finished.If the problem goes, for example, for not knowing how to sell, we can learn and create novel strategies to publicize our product, as we saw in the previous column.If we have the responsibility, for example, to have to pay a monthly rent and pay salaries, the issue is more delicate and the possibilities of the item must be thoroughly investigated.If they ask me, I think that putting a maximum term for a year to evaluate whether to continue or end is a reasonable period to try and not die on the way.

We invite you to leave all your doubts and concerns regarding your ventures, which will be answered weekly by Verónica Oliva in this section.

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