Once identified the business idea, the entrepreneur is usually in the situation that has to do many things and does not know where to start and what to do first. In this article, will have a look at the steps of staring a company without fail.
Embody the Idea in Writing
In no more than a piece of paper, write the essential business ideas and how they are intended to be carried out in the process.
In case a license is required for starting a company depending on the type of business, it is highly advisable to know the prior requirements, so you are already aware of the legalities and face no hindrances after settling down the business. You also have to calculate the investment to be made in order to get the license.
Locate the Business Place
The location of the company will depend on the type of business; if it is a trade, it should obviously be a passable area, especially for our potential customers, and if it is a service company, or e-commerce, the location will not be of high importance.
Find a Place in the Market
It is important to establish who is going to buy and who is going to sell the products or services as well as the technical viability of the business and if it is possible to carry it out and what the costs of time and money are for starting a company.
Study Business Dimensions
Analyze what the income expectations are. Mark an objective and do it for three different scenarios as pessimistic, realistic and optimistic and study what are going to be the expenses throughout the year, also taking into account the periods of payment of taxes, etc.
Calculate Necessary Resources
It is important to know what the initial investment of the company will be. Once calculated, you have to study carefully what the capital is that you have, and in case it does not cover the initial investment, study the possible ways of financing i.e. capitalist partners, bank financing and the like.
Reflect Your Plan in Writing
Once you have answered the first questions and have taken the steps, prepare to mature the idea to transform it into a business plan with planning for marketing, sales and production, and forecasts for the first 3 years of activity of the company. For starting a company that is good enough, you should spend dedicated time and work on generating a good one and do not rush at all.
When a business works well, it is likely to need expansion to reach more customers, grow as an organization and increase the level of wealth. Knowing when the right time is to expand your business is critical to achieving good results. Before taking that step, it is important to observe the signs and perform a good analysis of the existing and required resources.
First of all, if you have a profitable business, put the accounts in the hands of a good agency as a professional will best advise you. However, when a business needs expansion, it often presents several variables that you as the owner of the same can see more easily. Some of the signals are as follows;
- Many customers contact you from outside your locality to ask or inquire about your product.
- The company has been presenting positive results at the end of the year.
- The sales turnover is much higher than the expenses that these sales cause.
- There is a constant need to hire more staff because of the increased customer demand, and many of whom are already loyal customers.
- You believe that your point of sale is not as strategic as possible, and that you would sell even more at another point.
- Your business is growing slowly but steadily for some time.
- Your business adviser has told you about the possibility of expansion more than once.
What to consider before you expand business?
Study the moment to expand your company very well. Obviously, it is not the same thing to do with a small business as with a big one, but you should always keep in mind that you cannot promote growth without having studied it thoroughly. Therefore, the systematic study of the spread of business is indispensable. Some variables to consider in the new point of sale to which it is pointed out are as follows;
- Density of people and potential clients
- Socioeconomic level of the area
- Direct and indirect competition
- Political and legal environment of the area in question
- Total expenses of opening a new premises, including new salaries, rents, transportation of materials, taxes, etc.
- To learn more, you may need a market research done by a professional.
If, however, your vision is long term, you should know how you can improve your current operations using the following three key growth areas;
1 – Geography
This includes replicating your business in a new location to attract new customers. If you think it will be tough to establish a new office, you can always contact a virtual address provider who will facilitate you with a virtual office address of you desired place. With the hired services of a reliable virtual address provider, you can confidently announce your business expansion to your customers to other area.
2 – Capacity
This category includes in-depth research into your team, skills, technologies, processes and products.
3 – Markets
To keep things simple, define markets as selling your existing product or service to new demographics.
Once you identified how your company can grow in one or more of these areas, now you must think about how you will make it work. You must create different financial models that indicate your company needs to complete the expansion.
A common mistake is to want to spread the business too soon, just when you begin to see favorable results. Remember that before trying to expand, the company must present good results and a lot of viability for a long time. Three months in a row do not mean anything to draw conclusions.