When starting the process to materialize your business idea, sometimes you may find yourself facing multiple crossroads, the task can seem overwhelming and many are the entrepreneurs who give up on completing their project, feeling that they do not have what it takes to achieve the goal. It is totally normal to have doubts, feel disoriented and even not be able to concentrate correctly to establish the steps to follow, that is why we have prepared a basic starting guide so that you can give shape to your idea.
It is important that you understand that you must be patient in this process, nothing is instantaneous, everything requires completing a series of steps and although you can make use of tools, strategies or rely on professionals to manage your project, you must keep in mind to consolidate your idea one step at a time correctly, to avoid having to go back to fix details when the process is already in an advanced stage.
STEPS TO FOLLOW BEFORE STARTING THE FORMALIZATION OF YOUR COMPANY
Determine the Market Niche
In case your project or company is already in operation in your country of origin, you will have clearly defined your market niche, otherwise if you are still only thinking about the possibility of starting a new business, it is important that you define what you want That your company is dedicated, this will allow you to know what general requirements you must meet to take your idea from paper to reality.
Conduct a Preliminary Market Study
Before starting the consolidation process, whether it is a business idea, an existing branch of your company or perhaps a possible expansion, it is important to do an investigation that allows you to determine factors such as: the needs of your target market, the different options to facilitate access to your products or services, the needs of your business idea, operating costs including the formalization of your company. This study doesn't need to be an extensive study, you will use it as a guide to establish the requirements to materialize your idea.
Establish your Business Plan
When talking about the business plan, there is the false belief that this refers only to the way in which your company will make money, some people relate the business plan only to cash flow, when really the business plan must be appreciated with a vision much broader.
Your business plan tells you what your cost structure is like, who your customers are, what steps you must follow to offer them your value proposition, what differentiates you from your competition; Your business plan is a generalized vision of your company, it is the starting point to create your commercial strategies.
The perfect business plan doesn't exist, however we invite you to read our post "Tips to Design a Business Plan" you will find very useful tips to facilitate this task.
Determine the Main Address of your Company
Before proceeding with the formalization of your business idea, it is important that you determine the main address of your new company, this could influence your tax obligations, the ease of access to your suppliers or clients, the feasibility of the project itself, the costs. of formalization and your operating costs, as well as the legal statutes of each country, state or region.
Investigate Government Regulations
Each country, state or region requires compliance with specific regulations for companies that conduct operations within their territories, it is essential to investigate each of these regulations to avoid future legal complications. Whether they are tax regulations, permits or licenses according to a market niche, authorization for exploitation and land use, insurance requirements for your clients if the activity involves a great risk, it is important to know the local legislation and adapt your operations to the correct compliance with them.
Establish the Operational Needs of your Company
After outlining your idea, it is important to determine factors directly linked to your daily operations, among the main ones are:
- Company procedures manual.
- Norms, ethics, values and culture of your organization.
- Whether or not you require employees for your organization.
- What type of professionals should you hire.
- How much staff do you require to handle your operations.
- Need for physical space (Offices, Warehouses, Distribution Centers, Specialized Facilities)
- Equipment or machinery needs.
- Insurance or surety requirement according to the business model.
- Requirement of suppliers both for your daily operations, as well as for the acquisition of the products or services to be commercialized.
- Technological requirements (Website, Social Networks, Administrative Software, Mobile Applications, among others)
Establish the Cost Structure of your Company
The cost structure is one of the most important tools when materializing your project, it will help you determine both your initial investment requirements, as well as your cash flow needs for the operation of your company. The cost structure will also help you determine your operational priorities.
To have a broader idea you can consult our post "How to make the Cost Structure of my Company?"
Formalize your Company Registration
After having a clear overview regarding the structure of your company, selecting the main address, knowing the legal framework that you must adhere to, as well as the requirements and operating costs, it is time to formalize the creation of your company, although in some countries As the United States this process can be completed in many cases directly by you, we recommend that you consult with an agency specialized in this area or a lawyer, this because you must be familiar with the procedures and regulations of each region to complete the process of correct way.
If your objective is to formalize your company in the United States, you should know that you do not require a visa, residence or US citizenship, the United States is open to foreign investment and you can complete the process without having to travel in a totally legal way, you can find information detailed in our post "Steps to Register a Company in the USA"
After formalizing the constitution of your company, make sure you comply with government regulations and have the corresponding permits or licenses if necessary.
Opening Commercial Bank Accounts
After completing the formalization of your company, a very important step is to manage the opening of commercial bank accounts, a commercial bank account will allow you to configure payment gateways, terminals for debit or credit card collections, pay invoices to your suppliers, manage the payroll of your employees, access financial instruments such as loans, credit cards and investment portfolios, among others.
Install your Operating Structure
Within your business model you must have determined what type of operational structure you require, this can be an office, warehouse, distribution center, online presence through a website or electronic store and even a mixture of several or all of the above options, From the moment your business is formally established, prepare the entire engine that will lead you to meet your projections and objectives.
Develop your Marketing Strategy
You have already invested a significant effort and resources in shaping your business idea, at this moment you have already managed to engage the fundamental pieces to start operating, it is time to make your products or services known to your target market. To develop an effective and efficient marketing plan, you should expand your initial market study, as well as do a SWOT Analysis, this will give you a more concrete picture about the marketing approach of your organization, the positioning of your brand, product or service is decisive to obtain the desired success.
A myth regarding marketing is the size of the investment in marketing, many companies dedicated to marketing management will tell you that the more investment the better the results, this concept is wrong, since it does not matter if you invest millions in marketing with a strategy that does not favors you.
An effective marketing strategy must develop the authority of your company one step at a time, reach the target audience in an optimal way, make your product known to those who require it, compete in quality with your competition, are determining factors when it comes to devise favorable marketing strategies.
You can expand this idea in our post "The Infallible Marketing Guide, Myths and Realities"