BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC BÌNH DƯƠNG

KHOA KINH TẾ

BÀI TIỂU LUẬN

THINGS TO KNOW
BEFORE STARTING A BUSINESS

MÔN HỌC : ANH VĂN CHUYÊN NGÀNH 1

GVGD : ThS. NGUYỄN HƯƠNG SANG
HỌ TÊN SV: Vũ Ngọc Phúc
MSSV : 18030932
STT : 32
LỚP : 21QT01
NGÀNH : QUẢN TRỊ KINH DOANH
 MỤC LỤC
THINGS TO KNOW ......................................................................................................... 1
BEFORE STARTING A BUSINESS............................................................................... 1
Chapter 1: ........................................................................................................................... 1
Preamble: ........................................................................................................................... 1
1. Creative ability: ....................................................................................................... 1
2. Business Capital Start-up: ...................................................................................... 1
3. Perseverance: ........................................................................................................... 2
4. Basic knowledge: ..................................................................................................... 2
5. Essential Skills to Start a Startup: ......................................................................... 3
Chapter 2 : .......................................................................................................................... 3
Theoretical Basis: .............................................................................................................. 3
1. What is a startup? ................................................................................................... 3
2. What is business?..................................................................................................... 3
3. What is a customer? ................................................................................................ 4
4. What is a competitor? ............................................................................................. 4
5. What is the Revenue ................................................................................................ 4
Chapter 3: ........................................................................................................................... 6
The content presents what is needed or should be known before starting a business 6
6 things you need to know before starting a business: ............................................... 6
1. Make sure you have enough capital to start selling your first products. ........ 6
2. Market research. .................................................................................................. 6
3. Learn about customer needs. .............................................................................. 7
4. Choose the right business partner to work with. .............................................. 7
5. Understand your capabilities and accept failure. ............................................. 7
6. Find a mentor. ...................................................................................................... 8
 Start-up knowledge you need to know before starting a business............................. 8
1. Having entrepreneurial knowledge is extremely important. ........................... 8
2. Start-up ideas........................................................................................................ 9
3. Start-up knowledge: Finding customers to test products. ............................. 10
7 revenue models that startups need to know............................................................ 10
1. Products/services are free, revenue comes from advertising. ........................ 10
2. Product is free but need to pay service fee. ..................................................... 10
3. "Freemium" ....................................................................................................... 11
4. Based on expenses. ............................................................................................. 11
5. Value added model. ............................................................................................ 11
Start-up steps – What to prepare before Startup ..................................................... 12
Step 1: Define your goal ........................................................................................... 12
Step 2: Research the advantages and disadvantages of the business that may be
encountered ............................................................................................................... 12
Step 3: Find the right idea ........................................................................................ 13
Step 4: Get ideas from customer interviews ........................................................... 13
Step 5: Make a business plan ................................................................................... 14
Step 6: Build a detailed plan .................................................................................... 14
Step 7: Measure, evaluate ........................................................................................ 15
Step 8: Proceed to build the human resources team ............................................. 15
Step 9: Mobilize and call for capital ....................................................................... 15
Step 10: Corporate structure and personnel .......................................................... 16
Step 11: Set an operating budget ............................................................................. 17
Step 12: Scale the business in line with the marketing plan ................................. 17
Step 13: Anticipate risk ............................................................................................ 17
Chapter 4: ......................................................................................................................... 18
Conclude ........................................................................................................................... 18
References section ............................................................................................................ 20
 Chapter 1:
Preamble:
In life and in business, starting a business is always a painful problem, it
makes an important contribution to life and also a difficult problem for us,
our task is to find a solution and solve it. With that difficult problem, I will
answer questions about the necessity of starting a business as follows:

1. Creative ability:
The first and most important factor when starting your path to wealth
is that you yourself must have a great creativity. Because only creativity
makes the difference between you and your competitors, only more
creativity can help you see through the entire current market, find unmet
needs,Then come up with your own business plan. This plan does not have
to include unknown business ideas or completely new ideas that no one has
thought of, but it should create a breakthrough and competitive advantage
for your business.
The difference in products and services that you provide is an
important fulcrum for you in this fiercely competitive market. So, instead of
competing for a piece of the pie with major competitors in the market that
were born earlier, stronger, and more experienced than us, we can find a new
piece of the pie ourselves - where we is the leader.

2. Business Capital Start-up:

One of the other important factors when you want to start a business is
start-up capital. This is the nourishment for your business plan and a lever
for your success.

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 3. Perseverance:
Persistence is an important factor because in the process of starting a
business, not everyone has success in the first start, there are people who fail
many times but they still do not give up, still keep getting up to implement
your ideas. It is the determination and perseverance in that person that
creates their later success as the saying goes: "Failure is the mother of
success". Indeed, reality has proven that successful entrepreneurs are those
who have a higher spirit of determination than the average person to
overcome obstacles, have more passion and perseverance than people to rise
up from failures. failure in a short time.

4. Basic knowledge:
Nowadays, if you want to do anything in any industry, you also need
to have knowledge of that industry, so if you want to start a business in a
certain field, you should also learn about the surrounding knowledge. around
that area. For example: you want to start a business by opening a recording
studio for singers, you need to have basic knowledge in vocals, how to mix
music and know how to use some basic instruments… Or you want to
become a musician. If you are a big fashion wholesaler, you need to have
basic knowledge about fashion trends, sales...
Understanding the basic knowledge and expertise in the field we operate or
many different aspects of the business such as products, human resources,
technology, markets, systems of relevant legal documents is An important
stepping stone to help you avoid failure in lack of expertise and unintended
reasons. So if you intend to start a business, first fully equip yourself with
these knowledge.

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 5. Essential Skills to Start a Startup:

- Market research skills

- Financial management skills

– Authorization skills

- Strategic planning skills

Chapter 2 :
Theoretical Basis:

1. What is a startup?
Startup, this is a term for companies that are in the start-up stage in
general, it is often used narrowly to refer to technology companies in the
start-up stage. Entrepreneurship requires innovation and creativity. The basic
characteristic of entrepreneurship is the breakthrough to create something
that is not available in the market or create a better value than what is
already available, such as being able to create a niche. new in production, a
new business model, or a new type of unique technology

2. What is business?
In Vietnam, the term business used in the Law on Companies and the
Law on Private and Business Enterprises can be understood through the
following signs:

- The operation must be performed independently. Entities to

conduct business activities on their own behalf. They decide for

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 themselves all relevant issues and take responsibility for their own
activities;

- Activities must be of a professional nature, that is, they are carried

out in a professional, regular, continuous manner and the activities
provide the main source of income for the person performing them;

- Conducted by subjects with the aim of making regular profits.

From that, we can understand business as the activities of investment,

production, purchase, sale, service provision,.... Conducted independently by
business entities for a profit measured in monetary terms. The production
activities will create material wealth to serve the needs of consumers.

3. What is a customer?
Customers are individuals or organizations that businesses are
marketing efforts towards. They are the buying decision makers. Customers
are the beneficiaries of the quality characteristics of products and services.

4. What is a competitor?
Competitors are businesses that serve the same target customer
segment, the same product range, and satisfy the same customer need.
Knowing about competitors will help businesses visualize the general
picture of the market and industry in which the business operates.

5. What is the Revenue

A business will have 3 revenue groups:

- Revenue from selling goods;

- Business correspondence from other investment activities;

- Revenue from financial activities. Goods can be products or

services.
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 If a trading company is in the form of THT', which means using
money to buy goods at the input and then selling to customers at the output
to get money back, the revenue will be equal to the quantity of goods sold
multiplied by the selling price. can be calculated as the total order value in
the output.

For a service company like a restaurant, the calculation is similar,

equal to the sum of customer bills. For service companies such as hiring
cleaners, hiring security guards, the revenue will be equal to the total value
of sales orders.

Revenue from financial activities: it is possible that at a certain period

of time when businesses do not use up all their equity, they will lend them
interest.

Revenue from other investment activities such as investing in the

stock market, gold, real estate, etc., are the fields that are not part of the
main investment field of the enterprise.

6. What is the Assets?

Enterprises must of course have Assets, specifically, = Short-term

assets + Long-term assets:

- Current assets: include cash and cash equivalents, short-term

investments, short-term receivables, inventory and other current
assets.

- Long-term assets: including fixed assets (machinery, ...), real

estate, long-term financial investments and other long-term assets.

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 Chapter 3:
The content presents what is needed or should be known
before starting a business
6 things you need to know before starting a business:
1. Make sure you have enough capital to start selling your first products.
Starting a business you have to accept the fact that you will have to
pay a lot of fixed costs to maintain business operations such as: office rent,
electricity, water, payment for goods to partners, expenses marketing… and
these are not small amounts of money.

Maybe, until 1 year later, you will have your first profits, since
turning to starting a business.

Make sure you keep the business running for 6 months. Those who
have a family, or have a job around the time of starting a business will easily
get through this stage.

But most people don't have that advantage. Therefore, before starting
this race, you should have a savings in the bank, enough to support you and
help you feel secure to focus on work.

2. Market research.
Market research is essential for any new company. Is there a market
for your product? Is there any competition? Do people need this product?

The first thing you need to think about is what product or service you are
going to offer. What will you sell in your business? How will you reach your
customers…Sometimes, the difference between success and failure can be
just choosing the right job and business line for the market conditions.

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3. Learn about customer needs.
Many entrepreneurs focus only on marketing and sales and forget to
understand the needs and tastes of customers. Understanding the needs and
wants of customers will be a great success step to bring the company to
consumers in a favorable way.

Business is not like a game, so learn the rules. Don't rush into a
business unprepared or assuming you already know everything.

Make a specific plan, learn about the problems and desires of the
target customer. It is never too late to innovate, expand or adapt to create
exactly what customers want and require.

When you do that, your company will become one of those rare
companies that don't need to sell products, because people are always
looking to buy them.

4. Choose the right business partner to work with.

In case you need to find a business partner to start a business, you
must make sure to choose the right one and in accordance with the
development orientation of the company.

Business partners need to have the same ideas, vision and goals for
the startup idea to have a common voice for cooperation. However, a
partnership requires a written binding, as well as a plan to dissolve the
partnership, ahead of time.

5. Understand your capabilities and accept failure.

When starting a business, it becomes very difficult to get rejected at
any time. However, as an entrepreneur, you always have to face a lot of bad

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 news, be it from investors, from declining sales or because of less traffic to
your e-commerce site.

If you think about issues that have to be abandoned or are emotionally

volatile, you will not only be wasting your time but also not learning any
lessons from the experience.

Answering the tough questions ahead is the difference between

success and failure.

However, if a question or two you can't find the answer to, don't be
afraid, falter from your dream. You may have to take some extra steps
needed to reach your goal.

6. Find a mentor.
We can ask for advice, but it's not always helpful. Mentors will be
people who know the business well, they know how difficult it will be
because they have been through it. Using their knowledge and expertise,
your job will be a little easier.

Starting a business is not a task for the gullible, it takes dedication and
hard work. These 6 tips won't make you successful overnight, it will make
your way a little easier.

Start-up knowledge you need to know before starting a business

1. Having entrepreneurial knowledge is extremely important.
Young people starting up today, before embarking on the
implementation of their ideas, please make sure that you are fully equipped
with business knowledge as well as basic business management knowledge
to be able to control and operate. your business well.
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 This also helps individuals or start-up organizations who wish to
receive capital support from investors.

Investors need to know your sales returns, measured metrics and all
the information about your business plan before they accept your offer to
invest.

These are the reasons to encourage sales for young people who want
to start a business

2. Start-up ideas.
When Building a startup sales idea, it is also necessary to adhere to
the following factors:

Differences: In today's competitive market; if your product/service is

not superior in terms of quality; models or sales methods; service is very
difficult to succeed.

The right factors: Just because you need to meet the differentiator
does not mean you have to find ways to make the product/service seem
unrealistic and unrealistic.

In addition, the startup idea must be suitable for your financial

capacity; suitable for its own ability and suitable for the market; customers
you are targeting.

Prospect factors: after clearly grasping the above two factors; you
need to take into account its long-term level. How long will this idea exist
and develop?

Are the profits you expected? Does the current market have the
potential to help you succeed?

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 3. Start-up knowledge: Finding customers to test products.
In fact, finding customers first is probably the most difficult step of a
B2B startup.

To avoid falling into a vicious cycle where customers force you to

spend all the initial spending to test and they want to see results before
doing.

Have the courage to ignore those customers. Startups that succeed at

this step often know what they have and what their customers need to put
them to the test with you, which is mutually beneficial.

You can calculate based on the minimum cost to perform the service,
but never forget to return the necessary conditions such as: payment (to
make sure you have the cash flow to test the solution), customer feedback,
preferential payment conditions if any in return.

7 revenue models that startups need to know

1. Products/services are free, revenue comes from advertising.
This is a common pattern among tech startups at the moment, like
Facebook's, where services are free and revenue is known from advertising
through clicks.

2. Product is free but need to pay service fee.

In this model, the product is given away for free and the customer has
to pay for the set-up, custom customization, training manual and
accompanying services...

This is a good revenue model, but you should note that it is essentially
a service sale where the product is counted as part of the marketing spend.

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3. "Freemium"
This is a variant of the free model of products and services used by
some startups like LinkedIn.

In this model, basic products and services are free, but if you want to
use more advanced products and services, you have to pay an additional fee.

4. Based on expenses.
With this traditional product pricing model, the price is set at 2 to 5
times the product price. If your product is a single item, the profit margin is
likely at 10%.

The purpose of this model is to minimize production costs to a

minimum, compete with price strategies, in order to get the highest profit.

The advice is to use this model when you have technology that can
keep production costs low, and ignore this model when there are too many
competitors in the market.

5. Value added model.

This model emphasizes providing products and services to meet the
needs of current and potential customers by making useful products,
providing services that satisfy customers..

However, this model has potential risks to help increase expenditures

and reduce profits if the correct price is not calculated commensurate with
the value transferred to customers.

6. Price by category.
Suitable if you have many products/services, each with different fees
and utilities.

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 By diversifying product types, offering different prices, your revenue
can come from more sources, the risk ratio is also less.

7. The "razor" style.

This type of model is understood to initially sell a product at a low
price in order to generate revenue from the additional products it entails.

The term is derived from the typical example: selling razors at a good
price to get revenue from selling blades. Another example, in the printing
industry, printers are sold at a low price, the purpose is to generate revenue
mainly from selling ink cartridges in large quantities.

Start-up steps – What to prepare before Startup

Step 1: Define your goal
To have a successful plan, you first need to determine the right goals that
you and the business will aim for. Short-term goals (2-3 years) or long-term (10
years) where will the business stand in the market? What is your business purpose?
Core values that the business is aiming for.

Do not get lost in your ideas, but always define the destination and have a
clear and detailed roadmap to bring your business to success.

Step 2: Research the advantages and disadvantages of the business that may be
encountered
When doing business, it is inevitable that there will be difficulties or
unfavorable business. However, good managers will be the ones who anticipate
that difficulty. They will know how to minimize risk and damage to the lowest
level.
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 Let's have the most overview of the market. Research competitors, policies
that will directly affect your business. Always have a backup plan or risk budget to
get through tough times in your business.

Step 3: Find the right idea

This is one of the steps to start a business that cannot be ignored if you want
to succeed. A good idea sometimes won't equal a right and appropriate idea. Think
simple and start from the problems of yourself and those around you. Find the best
solution or product to solve those things.

For example, Scrub Daddy - one of the fastest growing startups in the US
Shark Tank program. Founder Aaron Krause has invented a cleaning sponge made
of a special material that makes cleaning easier.

Note, your idea should not be too wild or too big on an area that you know
nothing about will cause you to fail quickly.

Step 4: Get ideas from customer interviews

Any idea needs to come from the actual needs of potential customers.
Therefore, to have a good idea you need to find a few friends that you think will be
potential customers. Conduct interviews, survey them about their needs and
desired product quality to get the necessary information to apply in practice.

Sample products, trial versions (for technology and software fields) can be
used to measure customer satisfaction.

In addition, are the benefits from the products and services you provide
really suitable for customers? Take notes of ideas from customers to have an
effective business strategy and marketing strategy.

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Step 5: Make a business plan
Next is a general outline of your business startup project. The preliminary
business project will help businesses shape the feasibility of the idea, start-up
model, general strategy, branding issues, legal, financial, implementation
roadmap...

Besides, for the business to develop, it is indispensable for marketing

activities such as communication, content design, marketing ... Make sure, these
forms of marketing must be reasonable for business ideas. their own to the
customer.

Step 6: Build a detailed plan

After you have a preliminary business plan, you begin to develop a detailed
plan for each stage. Set short-term goals and methods and time to complete each
goal will help you save maximum resources.

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Step 7: Measure, evaluate
During the implementation process, remember to always measure and
evaluate the completion of the goal in order to optimize to get the most complete
plan.

Record customer reviews and feedback on the quality of sample products

and make timely improvements before putting the official product on the market.

Step 8: Proceed to build the human resources team

If your business idea is complete and viable, the next thing you should do is
find partners to develop it with you.

Step 9: Mobilize and call for capital

Startup is very different from opening a normal business company. Startup
companies must always have capital to scale their business.

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 Startup companies often bring methods to solve users' needs, so the
"coverage speed" of the market must be extremely fast. And capital will help you
quickly achieve this goal.

Making a plan to mobilize and call for business capital for each round is an
important step to help a Startup company survive in the initial stage.

Unlike previous years, this time the sources of investment capital are very
diverse. From angel investors to venture capitals. Even many technology startups
in Vietnam have called for investment capital from Silicon Valley. You will be
"poured" immediately if the idea is good enough and convincing.

Step 10: Corporate structure and personnel

After preparing the elements from ideas, plans, personnel, capital... the next
step you need to decide is to choose the type of business.

According to the Enterprise Law 2014, there are currently the following
types:

- 1 member limited company

- 2 member limited company

- Joint Stock Company

- Partnerships

- Private enterprise

Depending on the capital source and scale of development, you need to

choose an appropriate business type. However, before choosing, you need to
carefully study the issues related to the type of business.

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 For a Startup, people are always the top priority to help that Startup grow
and be convincing enough to investors. A good Founder is one who knows how to
gather elite individuals into a united, strong and competent team.

Step 11: Set an operating budget

In order for your company to grow, you need to budget its operations.
Specifically, include items such as marketing costs, company salaries, other
procurement costs, etc. capital when needed.

Step 12: Scale the business in line with the marketing plan
Now, the work you need to do is to follow the plan that you have set.
However, that plan can still change as you encounter obstacles and overcome
them.

Step 13: Anticipate risk

“The marketplace is the battlefield” – You cannot guarantee that business
will always run smoothly. A Plan B or risk budgeting will always come in handy
during tough times. In addition, flexibility, "knowing who knows me" at
appropriate times is also essential.

Ideas are easy to steal, there are many large corporations that will "pour"
money into the market to "kill" startups in the same field whether you are a pioneer
or not. Please re-evaluate all resources, time, market, competitors to choose the
most reasonable option.

Their choice against the “giants” or becoming their “extended arms” will be
based on the Founder’s judgment and analysis.

Obviously, to be a leader, a successful entrepreneur is not easy. However,

you have to follow every step in the plan to make sure your idea is still viable and
the business is still growing sustainably.

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 Chapter 4:
Conclude
I've changed almost my entire perspective on entrepreneurship in the
last few years. Before, I also thought that starting a business was having to
work like crazy, train yourself to the point of struggling and racing with your
own business, then that's the right start-up.

Having to go to school to learn a lot of things to lead, manage and

operate a business in the style of a superhero, a business model similar to a
Hollywood movie is a true startup. God, the world has changed radically,
which means that people can start a business a thousand times smarter than
that, even a million times. But we can't break it, we are afraid of failure or
attach too much importance to old-fashioned success, so we avoid adopting
a new perspective and giving up our own super-opportunities. Simply
because we don't climb high enough to see!

So we worship the banyan trees to start a business, white hair still

struggling with work, never enjoying life to the fullest (I'm sorry to be this
frank!). We shun young people who start their businesses with rocket speed,
using the power of the times to magically go far without much effort. We
even see them as little brats who are only good at grabbing the opportunities
in front of them. We have no idea how quickly they learned, how they
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erased their old thinking, how monstrously opened their minds to being able
to catch tipping points. development of the times. We pouted our lips and
slaughtered the freedom of those kids, we can't believe how they can go on
gossip day and night and still generate trillions of revenue!

I have mentioned the word smart many times. I think this is the key to
entrepreneurship in this era, in this period and in the near future. In the
distant future, I'm afraid it's enough to upgrade to super smart! Old-
fashioned efforts are not enough to guarantee success, sometimes the more
old-fashioned efforts will bury us in the black mud of obsolescence.

I'm writing these things to throw water in my face, to be even more

serious about upgrading myself in a completely different way than before,
changing my view of entrepreneurship in a completely different way.

Many of you who know me see me gossiping day and night, but this is
the period when I am breaking the most old things in my life to step into a
new page of entrepreneurship: Maximum leisure, dark serenity. maximize,
enjoy life to the fullest and find ways to maximize intelligence. I still fear
that I am not prepared enough to be a part of the future!

In my view on entrepreneurship, I'm really serious about the tsunami

of the coming technological revolution, so serious that I'm willing to wipe
out my old businesses myself, I believe that the fundamental change is
taking place to the impotence of the entire human race. One is: we buy
tickets to board this train and sit in first class to take the train to the future,
or we will stay in the past forever!

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 THANKS FOR WATCHING !

References section
https://cafef.vn/

https://en.vneconomy.vn/

https://cafebiz.vn/

https://www.fool.com/

https://www.khanacademy.org/economics-finance-domain/core-finance

https://www.morningstar.com/

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