Whether you succeed not get a job, you’ve finally convinced of the advantages of having a business compared to a job or have a revolutionary concept that could change the world. Whatever the reason you have to start your own business, the following guide will show you step by step how to do it.
You can use this guide as you see fit; however, to get more out of it, we recommend that the first time you read it all the way through, from step # 1 to # 20 step, and then you go reading more carefully each step as you go applying .
As for the order of steps, it is set such that the steps are easy to follow; however, is only referential, may be the case that you have to change it (make the step # 10 before e.g. No. 9), depending on your circumstances, but also on your preferences.
Also, each step is summarized so that the guide may be easy to read. For more information about a particular step, you can visit the various links you’ll find in each of them, which will lead to articles where you will find more information on the subject.
Without further ado, we invite you to read our guide to starting your own business:
1. Find a business idea
If you already have your business idea, that is, you know what business you’re going to be, you can move to the next step, but if you do not already know, the first step to initiate is to find a business idea business.
Some ways to find a business idea that you can use are:
- Is an unmet need consumer, and then think of a product or service that could satisfy her.
- Think of a product or service that others do not offer, and that because of its novelty and innovation, could create a new need for consumers.
- Identifies a product or service that others offer, but you could add something that differentiates you from them or do better.
- Comes to business directories or sites dedicated to Internet entrepreneurs where you can get ideas to serve you inspiration.
But whatever the case, it is advisable to choose a related to what you consider your business passion in life, because the only way you can have enough motivation to pull it off despite all the difficulties that can be found in the path.
2. Evaluate whether the idea could succeed
Before going any further is recommended to perform a small and informal market research that allows you to know if your idea could succeed, i.e. that allows you to have a preliminary idea of the feasibility of your business.
To do this, you could visit the places where similar products or services you plan to offer are offered, and analyze if there is sufficient demand for them, or see how many similar businesses that you think create there, and analyze how competitive they are.
You could also choose to ask your family and friends your opinion about your idea, or make a quick estimate of the resources and expertise would need to implement, and analyze whether you have them or are in a position to acquire.
3. Choose the business name
After concluding that your idea has a chance to succeed, you could start by taking one of the most important decisions: the name of your business.
To find names for your business you could look out in the name of competition and pay attention to the ones you like, or go to business directories on the Internet that is the same type as yours, where you can find names that serve you from inspiration.
And then, to choose the right name, you must take into account above all your personal tastes and implications for marketing that may have (to generate a positive image, to communicate what is your business, it is easy to pronounce, etc.).
4. Choose the business location
After choosing the name of your business, another important decision you could take next is the location of your business.
To find placements for your business you could go to the classifieds in the newspaper or Internet ads, or tour the areas where you wish it were located your business (for example, areas where there are similar businesses) to see if you can find local or offices for sale or rent.
And then, to choose the right location, you must take into account various factors such as the number of people in the area, local visibility, access roads, competition, costs, etc.
5. Determine the target audience
One of the most important steps when starting a business, but many overlooks, is to determine the target audience, i.e. determine the type of audience which will target your product or service.
To determine your target audience, first, you must segment the market all that exists for your product or service in different homogeneous markets composed of consumers with similar characteristics, taking into account different variables such as location, age group, socioeconomic status, etc.
And then choose one of the resulting markets more attractive to venture taking into account your ability, knowledge, and experience, but also making sure that not so small to the point of not being profitable, nor so wide to the point of not being able to specialize at.
6. Analysis of the target audience
Once you’ve determined your target audience, you must analyze it in order to be able to know him better, and so design the product that best suits your preferences and formulate other strategies that better results may have on it.
To analyze your target audience first you must determine what information you would like to analyze it, which could include, for example, tastes, preferences, habits, purchasing behavior, customs, attitudes, etc.
And then collect this information, for example, through surveys where you will not ask questions that allow you to obtain the required information, or by visiting the places where to shop accustomed to observe their behavior.
7. Competitive Analysis
In addition to analyzing your target audience, it is also important that you analyze your future competitors so that you can know them better, and thus make decisions or formulate strategies that allow you to compete with them in the best way possible.
As in the previous case, to analyze your competition first you must determine what information you would like to analyze it, which could include, for example, its location, its resources, its prices, its main strategies, their strengths, weaknesses, etc.
And then collect this information, for example, visiting their premises to observe their processes or attention that give the customer, buying their products or services trying to analyze them better, or making small interviews with former employees.
8. Development of business plan
The development of a business plan is one of the most important steps you need to perform, as it will allow you to check the feasibility of your business, will serve as a guide to set it up and manage it , and allow you to demonstrate the attractiveness of your idea To thirds.
In summary, the sections should have your business plan are:
- Business definition: The basic data of your business, describing it as the product or service that you are offering.
- Marketing plan: Marketing strategies that you will apply once started your business.
- Plan of operations: The physical requirements necessary for the operation of your business, and the description of the process.
- Human resources plan: Description of your management team and personnel requirements that will take your business.
- Financial plan: Investment calculation, projected income and expenses, and financial evaluation.
As advice at this point it is not necessary that you elaborate a complex business plan over 200 pages that nobody will probably read, but a simple business plan that simply allow you to meet the objectives.
9. Financing Search
In case, the capital have your savings product is not sufficient to cover the investment you need to start your business, the next step is finding funding.
Some of the main sources of funding to which can go are:
- Family and friends: Which could lend money without charging interest and without putting so much pressure on having to return the money so quickly?
- Banks: The most used when applying for a loan source, but the most difficult to access in the case of new businesses, especially if you do not have a good credit history.
- Financial institutions oriented SMEs: Which are more accessible than banks, but with the disadvantage charge more interest.
- Investors: People who could finance your all or a part of your business, but with the disadvantage of having to pay forever a part of the profits.
Assume a debt comes great responsibility, so as advice at this point, you should take your time looking for the best financing alternative, and before applying for a loan makes sure you will be able to pay timely.
10. Legal constitution
The legal constitution is a necessary step in creating your business, since it will allow it to be legally recognized and thus, among other advantages, to qualify as creditworthy, and issue receipts.
In short, the general steps you should take to legally incorporate your business are:
- Determine whether you’ll be a natural person or legal entity.
- Choose the type of business or company that will (for example, EIRL, SRL, SA, etc.).
- Search for and reserve the name you want for your business in the public records.
- Develop and raise public write the draft of the constitution.
- Inscribe the deed in the public records.
- Choose the tax regime to which you are going to receive for paying taxes, obtaining and processing your code contributor.
legally constitute a business can be a tedious task, so at this point it may be advisable to turn to centers or institutions that help you perform this process at minimal cost, and you will surely find your location.
11. Obtaining the operating license
Another necessary step you must do is obtained the operating license and other permits that may be required for the type of business you’re going to be.
In short, the general steps you should take to obtain an operating license are:
- Go to the district municipality where it will be physically located your business.
- Submit the required documentation (which surely finds the website of the municipality in question).
- Fill out the application for obtaining the license.
- Make payment.
As a tip at this point, before acquiring local your business, you should ensure that you grant the operating license, and not assume that you will give it, for example, seeing that there are already other similar businesses in the area.
12. Registration mark
If you go to create a trademark for your product or service, it is recommended that the register at the office of trademarks and patents, so that others cannot use the same or similar, or copy it in order to take advantage of his reputation.
In short, the general steps you should take to register a trademark are:
- Go to the patent and trademark office (could be another name on your location).
- Ensure that others have not registered a mark equal or similar to that want to register.
- Fill out the application for trademark registration.
- Make payment.
At this point it might be advisable that you hire a lawyer for trademarks and patents to help you perform these procedures and, above all, you avoid having to be making sure there are no registered trademarks equal or similar to the one you want to register.
13. Purchase or rent local
If you have not already done, the next step is to purchase or rent the premises where to work your business.
If renting a place, in addition to the duration and the rental price, some aspects you should contemplate in the contract are the ability to transfer ownership of the contract if you decide to sell your business and the possibility of making improvements the store.
Whatever the case, at this point it is recommended that you hire a lawyer with expertise in the subject, you advice in the purchase or rent of the premises of your business and, especially, you avoid making mistakes when signing the contract.
14. Remodeling and decoration of the premises
Once you have purchased or rented premises for your business, you should remodel it to suit your type of business, and decorate according to the concept or style you want to give.
For remodeling, in addition to the staff responsible for the planning and execution of this, it is also recommended that you hire a facilities designer who has experience in the type of business you’re going to be.
As for the decor, which includes the placement of billboards and posters, the use of plants, and installation of paintings, ornaments and other decorative objects, it could also be recommended that you hire an interior designer to advise you on it.
15. Purchase and installation of machinery, equipment and furniture
Once accounts with a local remodeled and decorated, you can proceed with the purchase and installation of machinery, equipment, and furniture that will use for running your business.
As a tip at this point, you should buy only what is strictly necessary, avoiding getting caught up in the natural emotion that involves starting a new business, which makes us want to buy everything in our power.
Also, you must search and compare good prices, in some cases rent rather than buy (for example, in the case of some computers), and if possible make agreements with suppliers (for example, you provide furniture in exchange for advertising or exclusive sale of their brand).
16. Search and selection of suppliers
The next step is the search and selection of suppliers with whom you will work, ie, the search and selection of companies that will provide inputs, products or services necessary for the operation of your business.
To search providers could ask your acquaintances that you recommend their own, go to the Internet and search classified sites, directories and yellow pages, or attend fairs and specialized exhibitions announcements.
And then, to select the right suppliers, you must take into account various factors such as prices, quality of inputs, products or services, the payment facilities offered, experience, reputation, etc.
17. Search, selection, and training of staff
Along with the search and selection of suppliers also, you could proceed with the search and selection of staff you hired to help you operate your business and subsequent training.
First, you must define the profile that a person must meet so you can apply for positions you have available, and find or recruit applicants who fit that profile, for example, publishing ads in the newspaper or online, or asking for recommendations.
And then, you should evaluate applicants through tests and interviews to select the best performers to take them, hire them, and train them to perform well in their new positions.
18. Organization of accounting
The organization of the accounting of your business is an important step, not only because it lets you know the amount of tax you have to pay, but also because it will allow you to analyze the financial situation of your business, and thus make better decisions.
The organization of accounting includes the preparation of accounting records and financial statements (the income statement, balance sheet and cash flow), but also the preparation of projected financial statements.
At this point it is recommended that you hire an accountant who visits you regularly without that is permanently in your business, and also to help you keep accounts and declare your taxes, help with financial planning for your business.
19. Marketing Organization
Another important step that you must make is the organization of marketing your business, both of which lets you create anticipation for the opening of your business, as the will use to get your first customers.
As for the marketing of opening, this could include placing banners and posters on the facade of the premises of your business or the distribution of flyers announcing the early opening of your business, and sending invitations for the opening.
While regarding the marketing necessary to get your first customers, this could include poster printing, posters, brochures, flyers and business cards, creating the website of your business, and publishing your ad on pages yellow.
Finally, after a long process of planning and execution, and overcoming several problems, difficulties and unforeseen, comes the expected opening day or opening your business.
On this day, you must coordinate well with your staff functions or tasks to be performed, make sure the good performance of it, and correct all the mistakes that both your workers like you surely will commit on this first day of operations.
And then, strive every day to grow your business, ensure you maintain the quality of your product or service, and always strive to provide excellent customer service that not only makes your customers return you to buy or visit but also that I recommend.