Jumping 7 waves is easy, it’s hard to get your hands dirty to take your ideas and projects forward. But don’t be discouraged: it’s not a big deal to set up your own business either. The important thing is to take that first step and go step by step – see us in this article.
You may be the type of entrepreneur who has been dating an idea for a long time, but you may also be one who has no direction and just knows that you want to invest in your own business. It is important to know that in both cases things can go very well: what the implementation of a company requires is only that you have the willpower to really get the project off the ground.
There is no lack of business proposals and models: you can either research in another city what has been working well and is not yet offered where you live, or you can also consult specialists on the subject. Which not only lists more than 350 types of possible projects for you to set up, but also classifies the most popular ones, is an example of consultancy you can seek.
What kind of business to open?
This is the first question you need to ask. Many people, even if they have that passion for some type of enterprise, end up not taking their will seriously and looking for ready-made models with more guaranteed paths.
Looking at market options that have already been tested, such as franchises, or even at models that others have already implemented, seeking to do similar things, is not a bad idea. But it cannot be ruled out, at first, that your passion is a good proposition. And that’s because half the path of the enterprise to be followed will depend on your real will and ability to be involved with the company a great part of the time: it will be your day-to-day life. So, there’s nothing better than choosing a type of investment that is pleasing to you, right?
You can literally combine business with pleasure: if you don’t feel like starting a business without any support base, look for a ready-made franchise or model that suits your profile. And that’s where we set our first banner on how to set up a business from scratch: research the type of business you want to set up!
Planning is your tool for success
Once you can clearly identify the business idea, move on to the famous business plan. At this moment, the intention is that you can answer a lot of doubts that arise when you are setting up a company – but especially that you anticipate these doubts, generating knowledge to face the challenges even before they materialize.
The business plan is the ideal instrument for those who want greater conditions for success and security.” The institution, which is there precisely to improve the environment for micro and small businesses to grow, offers several tools so that you can then come up with this business plan.
Briefly, you will insert in this document definitions about the type of products and/or services you will offer; think about the competition and what will set you apart from it; research and drill down into your knowledge of the business’s potential customers; assess location, public permissions for the implementation of your company, legislation issues; plan which jobs it will open and how to hire people; and add values that will be necessary for the total investment in this company – considering working capital for the first months and also the cost values of Start your United Kingdom Business.
Realize how important it is to look at all of this: while the business plan is not foolproof, it avoids some obstacles that can drain the entrepreneur’s energy or even generate a tremendous loss.
It is possible to observe how the definition of a business model can be advantageous for an early stage company when using, once again, as an example, the purchase of a franchise. Although there are several and all promoters guarantee that the franchise they offer is excellent and gives results everywhere, it is important that you use the planning to verify, for yourself, if this is true. Market data is hard to come by, but institutions representing the various sectors of the economy often have valuable information that can help you. What if that promise that the result will come anyway doesn’t materialize because your city, in particular, has no potential for the type of product or service offered? There are questions that are best answered by yourself.
Test your planning: make your business work
Now that you have everything organized so that the business can go ahead – it had an assertive result in the business plan, showing that the project has a future – why not actually test it?
Many types of businesses can be put into practice in a “home-made” way so that the entrepreneur knows, more or less, how the company will work in practice. It would be like saying that someone set up an informal business and then went on to open the company correctly, but in this case we are just talking about a period of “test drive” of the whole thing.
For example, if you are ready to open a consultancy, why not create promotional material, online or physical, and seek out the first clients to see if there is a real return on your proposal? Of course, it will be necessary to proceed with the formalization in order to issue invoices, open a bank account, receive government benefits, etc. But perhaps this initial test can help to investigate the best format for starting a business – including thinking more clearly about the volume of billing and tax brackets.
Another interesting item in testing is the price you are charging: it is quite difficult to rely solely on the market to define the value that will be charged by your company. If you have a degree of specialization above the competition, it is fair that the values are higher – it all depends on the differentials.
Taking the project off the paper: build your physical and virtual space
When it comes to actually making the deal happen, a mixture of anguish and happiness appears: you’ve already planned a lot, so now it’s time to do it.
Depending on the business, there will be a need for physical space for the company to take shape. Therefore, it is now that the costs also begin – it is not necessary to remember that many commercial companies suffer from the high rents of the points of sale. Anyway, have the Business Plan as your guide: try to take into account everything you thought beforehand. If it is necessary to invest locally, this is within what is expected – then go ahead.
The virtual presence stage of companies, nowadays, cannot be left out of any planning. In other words: it is possible to have a company without physical space, but not without a digital presence.
But what does this mean? Well, again stick to what you’ve planned – and keep improving as your knowledge of the subject evolves as well. If you only thought about social networks at first, without big investment in hiring a complete website, follow this line. It’s important to remember that digital sales channels saved many companies in 2020 – and we’re only in the beginning of 2021, so there’s still a pandemic and a major crisis going on.
Defining components of a company’s marketing, such as logo, contact channels and branding, are sacred steps, and you should be aware. If you feel that you are not qualified to do this yourself, hire an expert, as this is a subject that is directly linked to the success of your venture.
Open a company
Now you have reached the top of your business creation actions: the opening of the company. This step is what makes you really an entrepreneur, under the law. It is important to know a lot about the types of companies you can open, the tax framework, municipal, state and federal regulations. Only those who are opening an MEI – Individual Micro entrepreneurs are exempt from having a responsible accountant – so why not hire an accounting consultant from the beginning to help with the opening procedures? It’s actually simpler.
And we can say that the environment is friendlier for those who want to start a company in India. The advances come even before the Pandemic, because it was already known about the difficulties of having to go to different physical locations to file the documents – and still follow the proceedings in different bodies. Nowadays, much of the opening process is done completely online , often requiring only the delivery of physical documents.
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Your work must be authorized in the Municipality where you are located, and although it seems strange to most service companies – which does not have a major impact on urban dynamics – it is necessary to assess whether the location you have chosen can receive the type of company that you want to open. The State is responsible for the Board of Trade, which registers companies in that territory and also regulates environmental issues and taxes, depending on the type of economic activity of the company and the size of the business. And, finally, it is with the Federal Revenue that the registration in the National Register of Legal Entities takes place which opens many doors for the entrepreneur.
It is important to remember that the documentation step is as crucial as the others, since you will only be able to hire your employees correctly after formalization. It is also through the opening of the company that it is possible to create a bank account of the legal entity, which there are special lines of credit to access, and also access social benefits for the professionals who are in charge of the company if necessary – even the MEI has access to retirement and sick leave, for example.
In addition to the benefits mentioned above, the status of having a formally incorporated company gives it another potential for relationship with customers: it is possible to compete in public bids and tenders (and many large private companies also only accept suppliers with this condition) , and your business can issue invoices, another point without which many jobs are lost.
Step by step on how to start a business from scratch
Going back to the steps we talked about above, it confirms each step to start 2021 with a new goal:
1. Research the type of business you want to set up
It’s worth getting information online, visiting similar businesses, looking for a franchise that suits your profile. In the beginning (and always), information is everything.
2. Use the Business Plan tool
The Business Plan will be your ally to answer questions about your venture before putting it into practice.
3. Take a simple test
Look for the first customers, check the level of acceptance of your products and services, and assess the values practiced.
4. Go to reality: assemble the physical and virtual space of the business.
Invest in digital media and find the best physical space for your company, all according to plan. Don’t forget about marketing issues, which are the door to your success.
5. Open a company
Hire employees, third parties and advisors (especially accounting) to start the company and promote by Digital marketing . Organize the documentation to be sent to the competent bodies and work correctly – with a license and legalized in accordance with Indian standards.
Count on our team of specialists to open your micro or small business , whether it is a franchise or a new business.