Starting any business requires patience and dedication. Despite the risks involved, starting a business can still be the solution for many people who are looking to put their ideas into practice and are tired of the routine.
But what are the essential points for starting a business ? Discover the 7 main ones that we will list below.
1. Conduct market and competitor research
Before starting a business, it is essential that you know whether the product you intend to sell has a place in the market and what competition you will face. In this scenario, market research can provide indicators of the viability of the business.
At this point, the ideal is not to conduct market research focused on numbers, but rather on qualitative aspects, which will point out possible unmet demands and indicate whether the product will be well accepted by the public.
Furthermore, competitor research provides evidence of what should not be done, and the strengths and weaknesses of other companies in the segment. It is also possible to check which products are already on the market, offering differentiated goods and services.
2. Invest in experience and training
The success of a business depends on the experience that the entrepreneur has in that segment. If the knowledge is not extensive, the tip is to have a partner with complementary skills, who can solve this problem.
In addition, training courses are good ways to quickly acquire knowledge that can be applied in everyday life. These courses may be related to the industry or management, as many entrepreneurs have questions regarding indicators, defining objectives and goals, etc.
3. Project capital needs
Every business needs financial resources to maintain itself and survive. And every start-up of a new venture brings challenges due to the need for capital. Therefore, making financial forecasts and calculating what will be needed is a key point for the success of the business.
When calculating, consider all possible elements to be able to cope with periods when there will be no cash coming in. Therefore, include expenses with equipment, machinery, payroll, renovations, consulting, marketing, etc. in the calculation.
Furthermore, making a projection of revenues and expenses helps you visualize the return on investment period. This should be done through research on similar businesses. If your company is a franchise unit, simply analyze the average monthly revenue.
The expense forecast includes expenses for rent, electricity, telephone, accountant, salaries, taxes, office supplies, among others. In other words, it includes all expenses necessary for the company to remain in operation.
With this data in hand, it is easier to know how much you need to have in cash.
4. Validate your business idea
When you open a franchise unit, this step is not even necessary, since the business model and products are tested and approved. But when opening your own business, this moment is crucial, especially if the economic scenario is unstable.
To validate your business idea, in addition to market and competitor research, you need to create a business model, which will include several aspects, such as expenses and legislation. This document can be created using the Canvas tool , which is aimed at strategic planning.
5. Plan your marketing strategies
A business will be more successful if it is well-publicized. Therefore, marketing strategies are not only necessary, but also crucial to having a successful business.
It is through these that the company can sell more and, of course, make more profit. Therefore, it is necessary to plan product launch policies, define the means of advertising, train the team, have products with fair prices (affordable to the customer, but in line with the strategy set up by the company) and have good distribution. This way, customers will feel satisfied.
Another important point is how the company will act on social media. These are fundamental communication channels and having a good performance, responding quickly and solving problems, are synonymous with gaining a reputation for the brand.
6. Legalize the company
It may be a never-ending bureaucracy, but the legalization of the company cannot be forgotten. To help you with this process, hiring an accountant and a lawyer you trust is recommended.
These professionals will be able to indicate the best path to follow and help with the necessary documents. The accountant will also be able to advise on the best tax regime for the company, ensuring that it complies with the legislation but without paying excessive taxes.
The legalization process involves several steps (Commercial Board, Municipal or State Finance Department, issuing of CNPJ, granting of permits, etc.). Check what is required and go after it!
One of the main elements is the articles of association, which contain information about the company’s operations, the composition of partners, profit sharing, among others. It is recommended that you seek the help of a lawyer to prepare this document, but you can also request assistance from the Commercial Registry.
7. Develop a business plan
If your company does not have a business plan, red alert! You may be doomed to failure! This is a detailed document that presents the company’s structure, provides a financial plan and includes a marketing plan. In other words, the business plan addresses all the issues previously detailed, which serves as a guide for the business.