Starting a business may seem like a huge hurdle and some people may be intimidated by the idea; but they can’t help but be attracted to the entrepreneurial world.
If you are one of those who have your sights set on starting a business but still cringe when the time comes, worry no more. We bring you a 10-step article that will help guide you on the road to creating your business.
Step 1 | Business idea
First things first, right? So the first and most important step you should take is to clearly establish the business idea.
This idea usually focuses on the product or service you are going to offer for money; it is the concept of what you are going to offer in the market.
Therefore, it is advisable that you take into account the channel you are going to use to make your products known, that is, if you are going to establish a physical store or an online store.
Your business idea will be the foundation of your company, and while a bad idea is sure to end badly, a good idea does not guarantee success. There are many things you have to take into account; but let’s take it one step at a time.
Step 2 | Market research
This step is essential. Even if you’ve come up with a great idea, you need to be sure of your potential customers’ needs.
Likewise, you will have to keep an eye on your competitors and you will have to analyze and study how the market behaves, and how it varies in relation to the niche you want to enter.
Once you have done your market research correctly, you will have enough information to start developing other aspects of your business.
Step 3 | Create a business plan
A business plan is essential for the growth of your company. And you may wonder why? Well, this tool is used to explain your business, the way you expect it to grow and the methods you foresee will be useful for it to succeed.
This plan should contain everything related to your business, from bones to eye color; it should be simple and concise, as it will be of great help for your next steps.
You may also be interested in: Benchmarking: What is it and what advantages does it bring to companies?
Step 4 | Choose the structure you want to work with and a name
Now that you’ve come this far, it’s time to start turning the idea into reality. At this point it will be helpful to keep a clear mindset of what you want to do and whether you want to do it alone or with a partner.
Keep in mind that finding a partner is a very delicate subject. Not everyone is a good partner and you have to make sure that the person has the same goal as you and will work as hard as you to achieve it.
This is, in fact, the most important thing, since, if you are both committed to the company, it will not matter that you, as a person, are totally opposite to your partner, as long as you are both working towards the same goal.
Now that you have chosen between a partnership or flying solo, it’s time for the name.
Be sure to give it a lot of thought, because the name of your company will be the first thing everyone will see; the name will be the first contact the world will have with your company.
So let your imagination run wild and ask for help if necessary. Remember that you never get a second chance to make a first impression.
Step 5 | Finding the legal form that best suits you
We all know that legal forms are complicated, each one has its advantages and disadvantages; but, it is the first step that your company will take in the real world.
The choice of legal form will give your company a legal status. You should take into account the structure and size of your company and the form you want it to take when choosing a legal form.
Step 6 | Choose your suppliers
Everything is in order up to this point. You have your idea, you have your plan, you have your partner (or not) and you have chosen a legal status.
Now, are you selling a finished product? Are you acquiring material to create your own product and sell it? Are you selling a service? Do you have everything you need to provide your service? Have you opted for a physical store or an online one?
If your main channel will be digital you need to choose the right internet provider, as well as a good software to help you organize the functions and the income and expenses in your business.
But the truth is, regardless of whether your store is physical or digital or whether you offer a product or a service, you have to make sure you choose the right suppliers to give the best to your customers.
Step 7 | Financing
Money, money, money! Yes, we know… you need money to start making money, funny, isn’t it?
Well, the point is that finding a source of funding is vital to keep going; unless, of course, you already have the funds to support your fledgling business.
In case you don’t have it, don’t worry, you’re not the first broke entrepreneur with a great idea waiting to be funded and luckily there are a few investors waiting and willing to invest.
There are different options for raising funds and different types of investors, and here are the best known ones.
They used to be the first choice for anyone trying to start a business or needing money. They are a classic for business loans, but to get a loan you will need to have at least some collateral. It can be a little difficult but not impossible.
Peer-to-peer lenders (P2P)
This is a personal loan, from one person to another, without the intervention of a financial institution.
This method is new and has developed from the digital transformation that the world has undergone in recent years.
How does it work?
You go to a specific P2P lending website that connects you directly to investors. Remember, each site has its own types, conditions and transaction rules.
They are private investors who can provide not only funds, but also technical or management expertise.
The only detail to keep in mind is the fact that most venture capitalists ask for capital in exchange for support, which means that they will have a say in the company’s business, they will become partners.
These types of investors usually come from your close circle, such as family and close friends.
These investors are the dream of any startup or entrepreneur, hence the name “angel investors“.
They are individuals with financial capacity and a willingness to help businesses establish themselves. They have no rights to the business and usually have a clear plan to end their involvement in the business.
In this step the business plan will be your savior. If you have created your business plan with love, dedication, attention to detail and have followed our recommendations, it is certain that the message will reach your potential investors and you will have a better chance of getting funding.
Step 8 | Baby steps
Don’t try to run before you walk! After you have succeeded in the above steps you will feel like you are on top of the world.
You will want to start new projects within your company, you will want to go for it, but refrain from it! In the primary stage, the best thing you can do is to be cautious.
Keep your eyes open, pay attention to any variations, be patient and assertive; time and good judgment will bring you the success you have worked so hard for.
Step 9 | Recruitment
Almost there, almost a full-fledged company, just a little more to go!
After evaluating the behavior of your customers with respect to your product, after making sure of your monthly balance, after having your orders, your expenses and your stock under control, it may be time to think about contracting.
This is a good thing, it means your business is growing and you will have a little more free time to focus on other things. Delegating is always difficult at first, but like any new process you will soon adapt.
Finding new staff is not an easy task, and you will have to take many things into account before hiring, so you can also look for an agency to help you with this if you wish.
Step 10 | Let’s get started with this!
Now you have all the pieces of the machine in the right place, it’s new and ready to roll! It’s up to you to keep it going and keep it growing.
Remember that this is just the beginning and the work is far from over, so don’t hesitate to ask for help and keep up the good work!
After reading this article you’ve probably realized one thing: starting a business doesn’t happen overnight.
Therefore, in TAS Consultancy we have tax, accounting and legal experts who will accompany you throughout the process of setting up a business in Spain. So, if you still have doubts about this, or you are looking for a consultancy, contact us today to help you!
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