PLANNING FOR MICRO-ENTREPRENEURS IN LOW INCOME
When thinking about starting a venture, most people would ask themselves: Will it work?!, Will I be able to invest whatever it takes? What would be the best way to take action? What risks will I face? Questions like these and many others are common. Through this article based on the exchange of ideas and experiences with microentrepreneurs served by the Aventura de Construir Association, we seek to bring elements that can be useful in organizing the horizons when designing a new business or to develop actions for improvement in the existing ones.
The organizational key we bring is PLANNING, that’s right! How to carry out a good action plan, favoring a consistent analysis that will allow greater assertiveness in the decision making that will guide the paths to be covered.
Planning as its name implies is to carry out a “plan” in order to put into practice an idea and to achieve one or several objectives.
Planning offers the opportunity to hold a reflection moment, research and ideas exchange, allowing a greater understanding of the motivations and values to be practiced. It is very important to know where is your starting point and to be clear about the goal to be achieved. Here are some things to consider when building a good plan:
- Be aware of your strengths and weaknesses.
- Analysis of opportunities and threats. (Know the market of action, the profile of your public target, what are the costs, what risks and possible mitigating actions, etc.)
- Establish the long-term vision – where it is intended / which dream to achieve
- Goals – 1 year / 5 years / 10 years
- Perform annual planning (with quarterly or semester revisions) – charting route improvement. Example: the dynamics of the economic scenario and the need for constant improvements.
It is possible to remember some recent cases of entrepreneurs who achieved and failed their planning in order to illustrate these contents above. One of them, aiming to develop the production of a new product made some partnerships with different buyers to make sure they would invest in his plantation. With this strategy it was possible to avoid a cash flow issue. The other case, the entrepreneur was obligated to close a second store because of legal problems in his rental contract. In this situation, he lost his initial investment. Those are two cases that shows the importance of leading with all the possible risks inside the planning and how we can always take a learning from experiences.
And if it comes to the question: Ok, but I have “fear”, “and if it goes wrong”? Considering recent contacts with microentrepreneurs and conversations on this topic, we found out that these questions are also very common, and as an incentive to good planning, we can answer these questions, adding the necessary encouragement through the strengths combination! Seeking knowledge, learning from the more experienced, seeing similar initiatives, sharing experiences, and capacitating yourself are tips that will reduce the failure risk and help good initiatives happen!
The Aventura de Construir Association works constantly by providing free services to microentrepreneurs and people who want to open new businesses through training, advisory services, and access facilitation for productive microcredit. Contact us! If you do not know our services, please check out our website: www.aventuradeconstruir.org.br.