Starting a company from scratch can be an exciting venture, but it can also be a daunting one. Especially at the beginning when we must do more paperwork and make more decisions.
Even so, natural entrepreneurs have the ability to not skimp on their efforts and look for the best alternatives.
If you belong to this group and you're sure you want to start your own business, these tips will help you solve your doubts and clarify your ideas.
Here's an infographic with the steps to starting a business:
- Business idea
- Legal status
- Business plan
- Buyer persona
- Creation of the company
- Project analysis
- Competitive analysis
- Human Resources
- Going concern
- Communication and marketing
- Customer care
- Patience and motivation
#1. Business idea
In other words, look for a profitable business model and type.
Ideally, you should study all the alternatives and formulas before starting your business.
Some ideas are intriguing, but unrealistic. That's why you must analyze each sector and proposal in detail.
Being curious and observant, having a proactive attitude, looking for new ways of doing things, or taking controlled risks can help you start a business from scratch.
#2. Legal status of your business
Creativity and functionality are important, but to start a business we mustn't forget the legal aspects.
Determining its legal form depends on the activity and sector, but also on your needs as an entrepreneur.
Some of the aspects you should consider are:
➢ Number of partners (in the case of having several partners, it's recommended that you create a corporation, a limited liability company, or a community of goods).
➢ Initial capital you’ll dispose of.
➢ Patrimonial liability (i.e., whether the partners are liable only with the capital invested or also with their own assets).
➢ A more appropriate tax structure in relation to the expected earnings.
#3. Business plan
Making a business plan is necessary if you want to succeed in starting a business from scratch.
The business plan must be realistic. This is the only way to ensure an accurate projection of the project you want to launch.
To create your business plan, you must:
➔ Prepare a general executive summary (definition, feasibility, know-how, etc.)
➔ Describe your business.
➔ Define your business model.
➔ Develop a management plan.
➔ Create a crisis manual.
➔ Create a financial plan.
#4. Budget and financing: How much does it cost to start a business?
Although it may be tedious, making calculations is the only way to estimate costs, losses, and earnings.
Once you have a budget to start your business from scratch, find the financing formulas that best fit your business model.
#5. Define your buyer persona or ideal customer
A buyer persona is a semi-fictional representation of your ideal customers (by gender, age, occupational profile, income or purchasing power, place of residence, buying habits, etc.).
Defining your buyer persona is important when starting a new business: it will allow you to understand the needs of your target audience and optimize your future marketing campaigns.
#6. Creation of the Company
You must find a notary and make an appointment to officially sign for the creation of the company in the presence of all the partners.
Beforehand, it's advisable to write up the articles of association. It's best to contact a lawyer or a business consultancy.
Then you must apply for the tax identification number for your company. Afterwards, register it in the Business Register and for the business tax, legalize the Corporate Minute Book, the Annual Accounts Book, the Daily Ledger, and register the company with Social Security.
Of course, the titleholder must be registered as self-employed.
#7. Business project analysis
The famous SWOT Analysis is a methodology for studying the situation of a business or a business project.
Also known as a SWOT matrix and an acronym for "Strengths, Weaknesses, Opportunities, and Threats", it is useful both for starting a business from scratch and for businesses in crisis or undergoing restructuring.
Thanks to SWOT, you'll be able to analyze internal and external factors that could affect your sector and, therefore, your business.
#8. Competitive research
Competitive analysis allows you to find out what your competitors are doing and how it can benefit your business, and what mistakes they're making that you need to avoid to start a business.
The process consists of identifying those companies that offer products or services similar to yours and evaluating them based on a set of predetermined business criteria.
#9. Training your team
The personnel search may take time, but it's quite important.
Why? Because hiring good professionals and looking for talent is a determining factor in a business, even more so if the project is starting from scratch.
When choosing your employees, remember that their resumé isn't the most important thing. It's important to look for people who are willing to learn and get involved in your project, so pay attention to their personality, qualities, and availability.
#10. Let's get the business up and running!
You've already defined what kind of business you want; you've drafted a business plan, established a business, analyzed your competition, and chosen your staff.
Now that you've taken these steps, your business is ready to embark on its journey towards success.
#11. Communication and marketing
It's very important to create a communication and marketing plan before launching a promotion and communication campaign. What's the point of having a great business if you don't have customers?
Even before the launch, it's recommended that you start a communication and marketing strategy to identify how to reach and attract future customers.
#12. Measuring results: Are you achieving what you set out to do?
Understanding the results is essential to determining whether your business plan is working or not. To do so, you must set S.M.A.R.T. objectives, meaning that they are specific, measurable, achievable, relevant, and time-bound, so that you can analyze whether your strategy and effort have helped you achieve your goals.
In addition, monitoring the numbers is vital for any company. This involves analyzing the results of all the strategies implemented to assess their effectiveness and optimize resources.
Entrepreneurship is a challenge. Patience and motivation will be crucial for success. And if you also have a partner like Jeff to accompany you throughout the process, even better! If you want to open your franchise, don't hesitate to contact us!