VLV-Everything-you-need-to-know-before-setting-up-a-business-Woman-talking

Everything you need to know before setting up a business. A good idea and an impeccable business model are the best prelude to creating a business. There are also other elements that complete the decalogue for entrepreneurship without leaving anything to chance.

 

If you have an idea, put it into action, don’t let time kill it or, even worse, let someone else get ahead of you. You will regret it. On this path that turns a project into a sustainable business over time, you will encounter problems that you did not expect and partners who will let you down, but also successes. All of this will serve as a learning experience. However, it’s a good idea to consider these ten factors before starting out. You will avoid future complications.

 

What to know before business: The idea 

 

You don’t need an idea that is going to revolutionise the market. Reinvent traditional businesses by incorporating the Internet or taking advantage of the pull of the 2.0 environment. Another option is to turn your doubts into a business

 

 Business plan

 

Define your business, what you are going to offer and what your market is going to be. Only by knowing yourself will you be able to advance in the following steps, which will help you in the start-up and will be definitive in the consolidation phase of the company

 

Analyse the market and how you want to position yourself, what your field of action will be and, above all, be very clear about who your customers will be, how you are going to capture their attention and how you want to reach them.

 

You don’t need an idea that is going to revolutionise the market. Reinvent traditional businesses by incorporating the internet or taking advantage of the pull of the 2.0 environment.

 

What to know before business: Financing

 

Make a budget and make sure you have the necessary funds for the launch. Getting a bank loan is complicated; and the subsidy, whatever it’s, is only an economic incentive. It cannot be considered a basic source of financing: it rarely covers the project one hundred per cent and some come when the business is already up and running. 

 

But don’t rule them out. They are an interesting injection of capital. Prioritise: go first to local bodies. Although they are smaller, there are fewer applicants.

 

What to know before business: Accounting

 

This is the best guarantee for the survival of your business. Without good financial health and without real medium-term planning, the disappearance of the business is more than likely. The rent of the premises, the payment of invoices to suppliers, the salaries of your staff and collaborators are some of the items that must be covered at the end of the month.

 

What to know before business: Choose a partner

 

Family or your best friend are not necessarily the best partners. Opt for the professional who understands the company and who contributes the most. Some entrepreneurs point to financial capacity and knowledge of the business as the best attributes. Others say that the best partner is the one you don’t have, the one you don’t need.

 

Analyse the advantages and disadvantages of a partnership and do not get carried away by friendship or the economic factor. Answer this question honestly: Is it really necessary to achieve business results?

 

What to know before business: Team

 

Surround yourself with the best professionals and transmit your enthusiasm to them, especially at the beginning. Remember that by agreeing to work with you they have bet on you and your idea, something new with a secure but uncertain future. 

 

Look for the best people to help you in the launch and make a team: a reduced staff is the best option to show that you are just one more person and that together you make a great team.

 

To make a good campaign you don’t need a big investment. Let yourself be seen whenever you can, surprise your customers by involving them in actions that make them live experiences and build effective databases.

 

What to know before business: Marketing plan

 

Practice low cost. A good campaign does not require a large investment. Let yourself be seen whenever you can, surprise your customers by involving them in actions that make them live experiences and build effective databases. Don’t underestimate the power of the media: turn your business into news, capture their interest and get free publicity.

What to know before business: Social media

 

Facebook has more than 900 million registered users, the number of customers you can reach if you position your business on this social network. But there are others, such as Twitter or LinkedIn that may be more appropriate depending on the profile of your audience.

 

What to know before business: Salary

 

The salary you assign yourself at the beginning should be an example, both for employees and for business angels or other investors interested in your firm. Even if the beginnings are tough and you are tempted to give up a salary, set one. Otherwise you will never do it.

 

Business angels

 

If you have managed to get your start-up more than a year old or if you have managed to get it off the ground, present it to business angels. It’s one of the best options to accelerate the growth of your company.

 

Work ecosystems allow professionals who work independently to have access to a shared office space that encourages collaboration. Many entrepreneurs opt for this system in the initial phase of their project and some keep it for longer. These coworking centres usually have private rooms for meetings with clients or suppliers, and some even have larger rooms for holding events. 

 

Understand that entrepreneurship is a marathon

 

A year after starting Bluemercury, the Nasdaq collapsed. For a year and a half there was no way to raise venture capital and we had to figure out how to build our business by making a profit and injecting money into it. Today, our company has survived two recessions.

 

Many entrepreneurs focus on how to launch their business in a few years, but things are always changing and life rarely happens as you planned. Instead, focus on building a great business for the long term. Remember that entrepreneurship is a marathon, a race.

 

Make sure there is demand for your product or service.

 

Entrepreneurship requires working harder and learning more about yourself than you can imagine. It has lucrative rewards, but there are no guarantees. When things get intense, you’re running out of money and you want to quit, remember that selling won’t solve all the problems, but you can’t solve the problems if you don’t have sales.

 

Successful companies focus on being consistently profitable to survive unexpected events, such as economic downturns. Before you start a business, do your research, know the numbers and make sure there is a market and demand for your product or service. 

 

Every sale should be profitable, ideally by 50 percent. Then you will have money to hire talented employees so you can focus on doing the work you want to do. Document everything and build systems as you go, so that anyone can do your job tomorrow. 

 

Know that you won’t get it right the first time

 

Don’t get hung up on getting information. The only way to make progress is to do things, so do them now. Then you must learn to fall back, analyse the results and make the necessary changes. Chances are you won’t get it right the first time, or even the second or third time. But if you’re smart, you can turn it around.

 

Avoid overspending. Look for ways to make money fast and get paid up front. The more money you have, the more calculated risks you can take. You can’t have a positive without having a negative as well. Invest in yourself and trust that you can deliver results. When you fail, consider it a “learning experience”. Every time you test a theory in the real world, you will get feedback that will teach you how to improve. The only way to really fail is if you stop trying.

 

Be patient and make sure you have the right funding

 

Anyone starting a new business needs to fully understand the timing and funding they need to survive the startup phase. I wish I had understood the amount of time it would take me to make the profits that would allow me to grow my business.

 

Almost half of all small businesses that fail are because they did not have adequate funding. Plan that it will take longer than you think and make sure you have the necessary backing. Every startup has a different lifeline, and failure is always a possibility, but if you have the right funding you can drastically reduce the chances of failure.

 

What to know before business: Forget about what you want to sell

 

Many entrepreneurs focus so much on selling and marketing that they refuse to understand in depth what their customers want to achieve or solve. Profitable businesses know their customers better than they know themselves; they sell the value, impact and results that their customers want to buy.

 

Become a student of the game. Don’t gamble or assume you know the answers. Plan a campaign to listen and understand the problems and dreams of your target audience. It’s never too late to turn things around, to expand or to adjust what you sell to what your customers want and demand. When you do, you will become that rare company that doesn’t need to sell its products, they sell themselves.

 

Be prepared for change

 

Business schools don’t teach you the lessons you learn when you start a business. When you’re dealing with people, ideas and markets, all hell breaks loose on the playing field, no matter how good your business plan is.

 

The first lesson is to vet your partners. Make sure they have the right personality, are financially stable, and are available for the long hours of work you will require. They have to give their all in the game, just as you do. Second, don’t make your business model or your product more complicated than necessary. Simple, elegant and well-executed plans are best. Third, be prepared to make changes quickly based on changing markets and needs. Know your customers well and listen to what they are saying.

 

If you have managed to get your start-up more than a year old or if you have managed to get it off the ground, present it to business angels. It’s one of the best options to accelerate the growth of your company.

 

Work ecosystems allow professionals who work independently to have access to a shared office space that encourages collaboration. Many entrepreneurs opt for this system in the initial phase of their project and some keep it for longer. These coworking centres usually have private rooms for meetings with clients or suppliers, and some even have larger rooms for holding events. 

 

 

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