How to create your own business? What do you have to do to start a business for the first time? What are the exact steps for a new company to succeed?
It is a fact: not all small businesses are positioned to succeed.
The reality is that only 2 out of every 3 companies survive at least two years, and about half survive five years.
This indicates the real challenge you will face if you decide to take the step of becoming a business owner.
The scenario you set at the beginning depends on the security of following all the steps necessary to start a successful company.
These are the 10 steps that will help you start a business successfully and take you to the path of success as your own business owner.
Surely you already have an idea in mind and now you want to know if it is compatible with reality.
For this, it is necessary to answer the following question: does your idea really have potential?
To know if your business idea can lead to a real business, you will have to undergo a validation process before going further
For small businesses to succeed, always:
- They have to solve a problem
- Solve a need
- Offer something that the market demands
There are several ways you can identify this need: market research, focus groups, trial and error …
As you get to know the market, you will know if there is a need for your product / service, who needs it, if there are competitors that already offer a similar solution, who are those competitors and how does your business fit the market. Remember that you will have to clarify some more points before starting your business.back to menu ↑
Make a plan
All ideas need a plan to make them come true.
With a business plan you get a guide from the beginning, until the establishment phase (and even before an eventual growth of your company), and it is essential for any business worth its salt.
Before continuing, you need to know that there are different business plans for each type of business.
For example, if you plan to seek financing from an investor, you will need a traditional business plan that will be used to establish the most common sections that investors can analyze when they validate your idea.
If you are not looking for early financing, you can make a one-page business plan to be clear about what you expect to achieve and how you are going to do it.back to menu ↑
Plan the finances
The good thing about starting a small business is that you don’t need a lot of money to get started.
You can start with a small investment, as long as you have the ability to cover expenses before your business starts generating income. Spreadsheets are ideal for estimating the initial costs of establishing a business (licenses, equipment, legal assistance, insurance, market research, etc.) for at least the first year.
These numbers are so important because they will be the initial investment that you will need.
Choose the legal form of your business
Your small business can start with a sole proprietor, being a company, as a company of imitated responsibility
The legal form you select will affect many factors. They will be affected from the name of the company to your responsibility and the way you file your taxes.
Don’t worry: you can choose an initial structure and then reevaluate and change the legal form as the business and needs change.back to menu ↑
Choose and register your company name
The name of your company has a leading role in almost every point of your business, so you have to make sure you choose it well. Start by analyzing all the possible implications for choosing the name of your business.
Once you choose the name, you will have to check if it is registered or in use. Then, you must register it.
You will also have to register the domain name once you are clear what your company name will be.back to menu ↑
Obtain the necessary licenses and permits
Bureaucracy is something you cannot avoid when it comes to creating a new company.
Tendrás que conocer qué licencias y permiso para pequeñas empresas necesitas, según el tipo de negocio que estés empezando y el lugar donde te encuentres (por ejemplo, si estás en Colombia tendrás que averiguar cómo sacar el rut por primera vez).Bureaucracy is something you cannot avoid when it comes to creating a new company. You need to investigate what licenses and permits are required for your company during the startup process.back to menu ↑
Choose an accounting system
Small businesses are especially more efficient when they have systems in place. One of the most important systems for a small business is its accounting system.
With an accounting system you can create and manage budgets, set rates and prices, conduct business with others and declare your taxes. You can set up an accounting system yourself or have an accountant. If you decide to do it for your story, investigate the different accounting software.back to menu ↑
Set the location of your company
The location of your business is crucial to the company’s operations. You can have the home office, in a shared or private office, or in a retail store.
Consider the location based on the equipment and general configuration, making sure that the business location is compatible with the activity you will carry out.back to menu ↑
Prepare your team to work
Now is the time to hire the employees who will work in your company.
Take the time to establish the vacant positions you need to fill and the responsibilities that each one will have.
If you do not hire employees, but subcontract the work, now is the time to talk to your lawyer to establish your independent contractor contract and start looking.
On the other hand, if you are a solopreneur you may not need employees or contractors, but you will want a support team. This team can include a mentor, a coach or your family: it is an ideal resource for consultation, motivation and peace of mind when obstacles appear.back to menu ↑
Promote your new business
When your business is ready, it’s time to attract potential customers and customers.
Write your unique sale proposal and develop a marketing plan. Then, research small business marketing actions that help you promote your business effectively.
Once you have all these tasks ready, the most important business start-up bases will be covered. Keep in mind that success does not happen overnight, but that with a plan created to work constantly in your business will increase the chances of success exponentially.
This post is also available in: Spanish