Recommendations for entrepreneurs. How to turn an idea into a business.
The process of turning an idea into a successful business involves a series of steps and strategic approaches. Through careful planning, effective resource management, and continuous adaptation to changes in the business environment, entrepreneurs can build sustainable and profitable businesses over time. On this subject, I talked with the economic expert Viorel Chivriga.
Activity planning
The economic expert claims that any business project begins with an idea that must be not only innovative, but also well calculated. This involves expenses, and the entrepreneur must be prepared to assess the costs and foresee the evolution of the business in the long term.
"Business planning based on the idea is imperative for any entrepreneur. It is easy to fall into the trap of starting a business inspired by what the entrepreneur observes around, by analyzing sources on the Internet or by adopting ideas taken from someone else. If we talk about a horticulturist, the first thing he needs is to own his own agricultural land. Building a business on leased land would be a wrong decision. Moreover, he must have a deep understanding of the land, including the soil and its properties, to determine whether it is suitable for certain crops," Chivriga claims.
Risk management
Every business is exposed to risks, and entrepreneurs must be aware of them and manage them effectively. Especially in agriculture, natural hazards can have a significant impact on business.
"The entrepreneur must also think carefully about the agricultural infrastructure, because there can be problems related to natural risks, which are numerous and can have a significant impact on the development of the business. Last but not least, it is imperative that he knows exactly what he will produce within his enterprise and develop an offer that meets market demand. This offer should at least be predictable, but ideally it should be stable," says the expert.
Identification of financial partners
Financial planning involves identifying and attracting the right business or financial partners. Here, entrepreneurs should be open to a wide range of possibilities, including financing programs available in the country or abroad.
"There are various funding opportunities through local or international projects and programs, which can provide a favorable framework for investment. A shrewd entrepreneur could identify international programs that offer suitable eligibility conditions, even in the Republic of Moldova, that other entrepreneurs or financial partners would not know about," the expert claims.
At the same time, Viorel Chivriga emphasizes that there are important subtleties to consider in the relationship with micro-financing companies or banking institutions.
"In communicating with creditors, it is essential to demonstrate responsibility in fulfilling your obligations to the institution and to plan your business effectively. Entrepreneurs who manage to establish solid relationships with financial institutions become more responsible and register success in business, they have a support that they invest dosed in the business. They are eligible for other programs or opportunities to develop their business," says the economic expert.
Another important aspect is that every entrepreneur has basic knowledge and is able to prepare proper financing files. If this is not possible internally, they should identify their Associates or partners who can provide these services. It is essential that the obtained funding is used responsibly for the sustainable development of the business.
Financial management and market analysis
An entrepreneur must be aware of all the expenses involved in his business, carefully monitor income and cash flow, and be well informed about the current market situation.
"It is important to analyze similar products available on the market, to follow the evolution of prices and, if he has forecasting skills, to anticipate situations that may arise in the coming months or even years. It is also crucial to be familiar with the calculation tools, to effectively use the programs intended for entrepreneurs and to carry out individualized analyzes for the benefit of his enterprise", emphasizes Chivriga.
Moreover, those who wish to start a business must keep up with market developments, understand supply and demand, and adjust their strategies accordingly.
"The entrepreneur must be familiar not only with the situation of his products on the market, but also with that of the equipment that could be relevant for his business, to understand the dynamics of the labor market. Any growing business will face challenges related to human resource management. This issue must be approached with the utmost seriousness, given that the lack of human resources is a problem in our country. Each new employee must be a person who has some qualities or skills useful for the company", the expert believes.
Compliance with rules and regulations
In addition to financial and market aspects, entrepreneurs must also pay attention to compliance with legal norms and regulations.
"Those starting small businesses must be familiar with relations with the State Fiscal Inspectorate and other relevant institutions. There must be openness and a deep understanding of the specifics of each institution, in order to avoid problems related to the payment of taxes and fees, as well as difficulties in integrating into the norms established by these institutions, such as those related to the environment, food safety, or standards of safety", concluded the expert.
