How to Start a Business
.
Ing. Tomáš Pražák, Ph.D.

Key Steps to Starting a Business:
1.Idea Generation:
Identify a problem or need in the market.
Validate the idea through research or surveys.
2.Business Plan Development:
Define your target market.
Outline your unique value proposition.
Plan your marketing strategy.
3.Register Your Business:
Choose a legal structure (sole proprietorship, partnership, etc.).
Register the business name and get necessary permits.
4.Set Up Operations:
Find suppliers or manufacturers.
Hire a team, if needed.
5.Launch and Market:
Start with a minimum viable product (MVP).
Use social media, networking, and promotions to build awareness.

Sources of Funding:
Where can entrepreneurs find financial resources?
1.Bootstrapping: Use personal savings or reinvest profits.
2.
2.Loans: Banks, credit unions, or online lenders.
3.
3.Investors:
oAngel investors.
oVenture capitalists.
o
4.Grants: Government or NGO grants for startups.
5.
5.Crowdfunding: Platforms like Kickstarter or Indiegogo.

Group Activity: Cost and Revenue Estimation
•Step 1
Each group identifies the costs for their business idea (monthly):
·Fixed Costs: Rent, utilities, communication and marketing,….
·Variable Costs: Production, salaries, packaging, delivery,….
·
·
•Step 2
Each group estimates revenues:
·Price per unit.
·Projected sales volume (monthly).
·
·
•Step 3
Groups calculate their total costs and estimate potential profits based on their revenue
projections.
Break-Even Point Calculation
•Each group calculates the break-even point using the formula provided…Qbp = F/(p-v).
•Groups discuss the implications of the break-even point on their business strategy (e.g., Is it
achievable?).