Are you considering creating a business? We invite you to continue reading, because in this post we will share with you the key elements that you cannot ignore. Let’s get started!
Let’s start from the principle that creating a business today has a significant impact on your life and that of those around you. Hence the importance of learning how to start it long before starting to direct it.
We know that during the process of creating a business or a company, challenging situations arise that can generate a discouraging perspective, especially when it is the first time we are doing it.
However, you must keep in mind that once you start that path you have to learn to overcome obstacles and challenges. You must put aside those limiting beliefs that prevent you from moving forward, because if many other entrepreneurs have done it, you can too. In addition, you have the advantage of benefiting from the wisdom that all of them have obtained from their successes and mistakes.
And there are more actions or steps that you must follow and that we will share below.
Key elements to create a business
1. Find the business idea
This may take longer than you expect, because it is the basis of what your business will be; so what can you do? Simple, the best way to find a product to sell starts by asking questions:
What is the potential size of the opportunity?
Is it a trend, a fashion or a growing market?
When we say that you must identify if your product or niche belongs to a fad, a trend, a stable market or a growing market… You must know the following:
Fashion:It is something that grows in popularity over a certain period of time and can lose relevance.
Trend:This can be established in the long term and does not grow with the same speed as the fad, but it lasts longer.
Stable:It does not disappear completely, nor does it grow, on the contrary, it is maintained for long periods of time.
Growing:When we talk about a growing market, it is one that has experienced constant growth and shows signs of a long-term or permanent market change.
What is your direct competition?
Will you come across any restrictions or regulations?
2. Select the name
Although it is true, each element is essential because to begin with, the name of your business is a universal facet of its marketing:
Appears in all your activities.
It will be how your clients, potential clients and the audience that knows you identify you.
Making a good selection is key, remember that word of mouth is hard enough to win, so there is no reason to complicate your life with a boring, confusing or irrelevant name.
Our recommendation is that you find a name for your business that makes it clear what you do, that is short, simple and easy to remember, and that is also related to your mission and vision.
3. Develop the business plan
It helps to better shape your idea and possibly speed up the business creation process by getting you to sit down and think strategically and methodically.
Land in it all the questions, what you should prioritize and every aspect you need to know. Do not leave your business to chance and even less, get carried away by improvisations if you really want to achieve success with the results you expect.
4. Validate the product idea
There are several alternatives to validate your possible product idea while developing it.
For example: Allow early customers to engage by creating an irresistible offer and extra benefit if they purchase your product, such as a bonus, membership, or coupon for their next purchase.
This can help you in some way to know if the users are really interested in buying this product.
Those initial sales will give you the information you need. And if you want to test the ground before launching the product, we leave you these tips.
- Create a store to accept pre-orders.
- Launch a crowdfunding campaign.
- Lean on content marketing.
5. Keep your finances in order
The goal of any business is to make money, right? Then you need to know how to start it and manage the cash flow, once you have created it, it will be essential to ensure its profitability and of course, its success.
“20% of small businesses fail in their first year, 30% of small businesses fail in their second year, and 50% of small businesses fail after five years in business.” Source: fundera.com
While we can’t say that all of these businesses failed because they didn’t manage their finances well… What we can say is that cash flow and insufficient capital are frequent culprits.
6. Choose a business structure
Why? Because it influences key aspects of your company or business, from taxes to operations and your personal responsibility.
Choosing the right structure is all about balancing the legal and financial protections you need with the flexibility that different options offer.
As you can see, this is an important decision, which you should carefully consider before starting your business.
Business structures vary by country and area.
When considering the right legal structure for your business, there are a few factors you’ll need to consider:
- What type of business do you have?
- Where are you?
- How many people are involved?
Tip:Once you understand how to start a business, research what licenses and government regulations you need to operate legally.
7. Plan workload and team size
Now you know how to create your business, now is the time to dedicate yourself to building your team and determining the amount of work that will need to be done, the skills necessary to launch your business.
- How many people will be part of your team?
- What will be their responsibilities?
- Will you need tools to optimize work and streamline processes?
- What kind of tools will you need?
Starting a business implies having many tasks to do and having enough time to search for and select the collaborators that will be part of your team.
Business statistics you should know in 2022
- The most popular reason to start a business is to be your own boss.
- 44% of small business owners are between the ages of 39-54.
- Small businesses make up 90% of global businesses.
- It is estimated that there are 213 million companies in the world.
- About 50% of small businesses start at home.
- The number one cause of business failure is poor sales and cash flow.
