BUSINESS IDEA

A business idea – how to put it into practice?

Many people dream of finally running their own business. Being their own boss, and eventually providing jobs for others. For a business to grow rapidly, the most important thing is to have a good business idea. Before you start putting it into practice, you need to check a few things. Find out what they are!

In this article, you’ll learn:

• How to check whether your business idea will give you a chance of making a profit?
• Earnings – how high should they be?
• How can you reduce your company’s tax bill?

Business idea – where to start?

You need to consider the strengths and weaknesses of your business idea. Exactly how will you make money? What of value can you offer your future customers?

You should find specific answers to all these questions. Don’t make your business idea too broad. Find your niche and specialise in it. It’s not a good idea, particularly at the very start, to offer a wide variety of services. You may simply not be able to deliver on them all. This is particularly true if you intend to run a sole trader business.

It’s also worth keeping an eye on what your competitors are doing. See what actions they’re taking and how they’re reaching customers. Perhaps such research will allow you to take a broader view of your business idea and tweak your initial plans slightly. It’s a good idea not only to look at what your rivals are doing, but also to think about how you can stand out from them. After all, your job is to offer customers more than the competition does, isn’t it?

How much should you be earning to stay afloat in the market?

Running your own business is, above all, about costs. It’s your responsibility to pay taxes, insurance contributions and your running costs (electricity, accounting, rent, etc.). If you work remotely, you can carry out many tasks from home, which helps to reduce your overall costs. It’s worth considering this option right at the start, particularly if you don’t have substantial savings to get your business off the ground.

You should at least have a rough idea of how much it will cost you each month to run your own business. Think about the minimum you’d need to earn from your services to break even in the worst-case scenario. It’s worth preparing for a so-called worst-case scenario and overestimating these figures slightly. That way, even if an unexpected expense crops up, you won’t get stressed.

How can you reduce your business’s tax bill?

If you intend to run a sole trader business, to reduce your tax bill you should increase your tax-deductible expenses. These will help you lower your tax base by deducting business costs from your income.

Of course, the costs incurred must be related to the business you run. Buying everything ‘for the business’ could result in an audit by the Tax Office and financial penalties. However, there are certain expenses that are essential for any business. These include, for example: a printer, a scanner, a laptop, a desktop computer, a company car or photocopying paper. The same applies to expenses incurred for accountancy, internet access or the rental of business premises.

Do you have a business idea and want to test it at the best business incubator in Poland? Get in touch with us!