Soon you will see to start your business activity, and you need to have in mind that you at least need to have machinery for the production process.

     I have seen viable projects that have gone wrong because of excess in machinery, which meant a decreased in liquidity an overproduction. Machinery that is beneficial to the business, but it is not necessary in that moment.

     I will give you another example to clarify the explanation. The business in this example is a photocopy business. The business made copies in black and white, color copies, plotter copies, etc. However, what this young entrepreneur did was to buy a large amount of copy machines in relation to the volume of work that initially would get done.

     For this type of business or something similar, remembering this could help:

     Buying machinery will not help you bring in more clients. I will explain this the same way I explained it to him: If you are working at full capacity with the machines you have and you are starting to have to work overtime and are over capacity due to the demand, than it is time to consider buying more machinery. I said consider, I did not say it is time to now buy machinery. Why? Because this increased in demand could just be for a short time. To see if that demand is still demanded or if it will continue, you will need to analyze this after a few months to see if clients still want or demand these products, if it is stable or even if it is increasing. Then and only then, you should buy the machinery that will allow you satisfy those orders.

     Now that we are at this point, questions that could arise, for example:

     -During those few months of analyzing, how will I work or develop my labor? How will I treat my customers if I am overflowed with work?

     -The answer is simple, work more. Another way to say this is… put more hours in than a clock. Keep in mind that you are standing alone, my fatigued friend, you will have your advantages and inconveniences.

     If you do not take the risk that the competence take away some of your clients, take part of the job outside.
If you have employees, talk to them to make an extra effort. During these months, analyze everything that will help confirm whether or not to acquire more machinery.

     There have been entrepreneurs that have been blinded by punctuality of demands, and purchased more machinery to maintain their demand. After a few months they have returned to the initial situation and found themselves with the same volume of work with machinery they were able to pay off (in the best of cases and the cost of its liquidity) and/or they have unpaid bills for either leasing or renting etc. They have increased their expenses, but their income remains the same.

     If your activity/ business requires having a stock of many items, for example, a hardware store, it has a variety of departments, electrical appliance, plumbing, in some cases a groceries, etc. You have to have control of rotation of these items to avoid having them stored for too long, some of which could expire and be obsolete, or in other words have little demand.

     Start this type of business with prudent merchandise storage according to the types of specific products that your clients demand, with time stat to widen the quantity and types of products.

     Think that if you fill a store with merchandise that you consider to be what clients are most interested in, and it finally turns out to be different. Your store will be limited for the acquisition of products that could bring in customers. Buy little by little based on the demand of products and avoid having a giant stock in number references and unit.

     Having delivery service in reality is not necessary, but it could be useful one day to another.

     If you have products that you purchased a while ago and you have not sold, put them on sale to make space for new products that are on demand. This type of business has a maximum. «With more products the greater the possibility that I sell» This is true; however, if you do not tightly control your purchases of products you could find you self in a store full of merchandise that does not have a way out and you have invested money that you have immobilized.

     In this case the location of the business is important; it should be in a place where many people pass by, and congregates a large amount of people. This type of establishments, called sales, is very important that a majority of people have easy access to it (the easier the better. It does not make sense to place the business in an industrial park where the transition of people is very limited.