Starting a company is a project that needs planning and reflection: on yourself as much as on the project itself. It’s not enough to find a good idea, you need to ask the right questions and to design a solid plan. It will take time to start your own company and will possibly entail a substantial personal and financial commitment. Not to mention that you will have to respect those measures in order to start your operation serenely before forming companies.
Finding that Awesome Idea
A business development project involves a concept, a clear desire to create something. There are some ways to get an idea out there:
Via your job: surely this is the sector you know best and it proves reassuring for you. However, be cautious to consider the development of your career, as well as the field you are in. In addition, as part of your business, the environment in which you work on a daily basis will allow you to recognize certain unmet needs and potential future clients. Similarly, the community’s know-how can be usefully used to identify the first partners. But be vigilant about the effects of employee poaching abusively.
Interested in emerging developments: it is always through the quest for new developments that we find the right idea, the phenomenon that has not yet been exploited. In this scenario, entering creative circles, traveling … is more than advised.
A new trend will also arise at the launch of new goods, new consumption modes, ecological patterns, foods.
However, a new concept for starting a company is not usually required. Recovering an idea is also a good way to start a company, often.
However, be mindful that it is not exactly the correct concept that will make your company successful. More often than not, this principle is equally important to execute. Knowing how to surround yourself well to ensure the optimal realization of your vision is necessary for those purposes!
What motivates you to start an enterprise?
After recognizing the industries you know as well as the latest trends, you must try to integrate both when reacting to multiple problems. More subjective and confidential are certain questions that need to be answered. Awareness is a matter of:
What do you want to do? There is so much energy and time to devote when starting a company, that it is better if it is in a field that you directly impact. Paradoxically the word passion’s etymology derives from the Greek pathos that means pain. It’s the passion, however, that gives you the drive and excitement to move forward without having immediate financial rewards or self-satisfaction for a good project. This is an especially important psychological lever that during the storm will help you to keep the bar!
What are your abilities? What do you do? Indeed, knowing where you can use your skills when starting a business is crucial. You have to be clear on this point: if you are, for instance, an outstanding developer, but a poor boss, by surrounding yourself with an accountant, you might save your entrepreneurial project from catastrophe. Similarly, if you do not have any legal experience, it is in your interest to be accompanied by a lawyer to develop your business.
What industries and technical areas are you well aware of? As well as a much sharper analytical look, your past experiences help you to have insight. You would need to be adamant about the need to learn a lot of new stuff if you are considering retraining and changing the industry. With respect to experience, learning requires being modest, always challenging as it has been twenty years since one leaves the school benches.
In addition, starting up a company isn’t just about these components. We also have to take into account and entrepreneur’s personal constraints, motives and continuity with his personal life.
It’s also about answering a question that seems straightforward at first but that’s really more complicated: “Why do I want to start a business? “This question enables you to really evaluate your motivation and interest in your project.
In particular, this allows for discarding inexperienced ventures and avoiding embarking on a wild journey without pre-measuring the consequences.
All the constraints of establishing a company, such as not paying yourself a salary, often for a while, often having to combine private and professional life, are also important to recognize, not to count your profits. Hours, and devote yourself fully to this new operation. Starting a company is likewise a form of confrontation with failure, you must be resilient and admit errors. This is a particularly important mentality that will allow you to step forward with peace of mind leaving less challenge in your popular comfort zone.
Challenge The Idea for Company Development
Test the idea of starting up business
It has yet to be questioned once the idea has been discovered. Put yourself in an investor’s shoes and imagine what questions they might ask you to find out whether your business concept is viable, profitable and long-term exploitable:
How is your idea new, different from what’s already there?
Does a real need or problem react to your idea?
Are your future customers conscious of this need or issue?
Do they want to pay to repair this?
And last but not least, maybe the most important question: how can you test your idea before you even start your business?
This step can be overwhelming, but don’t give up: failure simply means you’re going to have to readjust your idea, explain or move away from those points. This contemplation is important as it will prevent you from embarking on a project that would be unprofitable or unworkable.
You should also ask people around you. In order to move forward, their suggestions must be positive. Ask them, even if it means getting you in trouble, to criticize your idea.
Note: For fear that it will be replicated, many young entrepreneurs do not dare speak about their business concept. This is a real stumbling block, of course, for many reasons:
An idea can’t stay frozen, in essence. It continuously evolves and builds itself. The best way to cultivate it and make it evolve is to approach it with the experience of fact , thanks in particular to third-party opinions. Do not forget that the philosophers of antiquity ‘s great theories and concepts are of use today only because contemporary thinkers have operated on and motivated them;
It is often more difficult to execute an idea than to have an idea. Think of all the thoughts that have never been the focus of concrete realization around you, however pleasant, …
If, however, you fear talking about your business idea, you should get a confidentiality agreement signed by your interlocutors.
However, there is one reservation as to the expression of your idea: if your idea is patentable, that is to say it responds to a new technological problem which may be the subject of industrial application and is the product of an innovative move, it is important that it be kept secret before the patent is granted. In fact, disclosure to third parties will cause your invention to lose its new character and hence its patentability!
The value of performing market research
Before embarking on setting up a company, doing market research is more than appropriate. Market studies help to answer such questions, such as:
Where are you putting your future operation according to current business trends?
What are the market-related constraints?
There are any rivals in there? What are they, if so? What is their present status, or even their outlook on the future?
What is the profile of your customers / buyers in the future?
What is your sector environment? It’s about learning the laws relevant to your potential activities.
In addition to these problems, the list of which is not comprehensive, it is also important to be able to draw conclusions and to be able to develop figures and strategies that will then be incorporated into your business plan.
Setting revenue assumptions, for instance, is advisable. This will allow you to project yourself, but also to stimulate the beginning, into the beginning of your practice.
Furthermore, the strategy for achieving these targets must be fixed in advance, as it will also be set out in the business plan. Before launching your operation, it is still necessary to be able to prepare economically.
Financing Your Business Like a Pro
You must consider the issue of funding your company before embarking on the production, which is undoubtedly the most drastic point.
Therefore the creator must first weigh the costs of his potential activity and then draw up an interim plan for the funding of his activity. You’ll then have to concentrate on seeking financing for your company after quantifying all of this.
For these purposes, it may be prudent to consult an accountant on the basis of several scenarios to create a financial forecast. For prospective investors, the financial forecast would be treated as a promise of seriousness.
How to plan its operation financing?
You have been able to analyze the effectiveness and competitiveness of your company through market research.
Therefore, you need to develop a financial forecast plan. This will consist first of all of predicting all of the activity ‘s costs and earnings.
The financial forecast plan would illustrate the financial feasibility of your project as well as its economic sustainability, in addition to the market analysis that you would have carried out.
This financial report will illustrate the activity’s funding needs. This is to highlight the financing you are going to need.
Seek funding for your company
The move of finding financing for your company is more than necessary, since it will illustrate whether or not economically and financially it is possible to establish a business and grow its development in a calm manner.
There are a variety of forms for funding to be found. There are 4 funding sources which we can highlight:
Your company’s internal funding: it is the partners’ financing, it includes the contributions constituting the share capital, the partners’ current account contributions.
Your company’s external financing: this is the financing provided by venture capital, investment funds or participatory financing system (crowfunding),
Bank funding for your business: banks offer a range of loans to entrepreneurs and a variety of ways to set up their companies, such as development loans, factoring, and many more.
Government support for the company: This provides assistance for the unemployed to start up a company (ARE, ARCE, ACCRE, NACRE) as well as other government aid.
A variety of factors can depend on the option of financing. Indeed, the source of financing would be different depending on the operation that needs to be carried out, the financial condition of the entrepreneur, or of the founding partners.
Note: Do not overlook the possibility of resorting to “love money” when you start your company. Your loved ones may be inclined to financially support you!
Executing the Business Plan
It is important to ask the correct questions before writing your business plan. The business plan, even if you are not planning to present it to investors or your banker, is an important document. In your business plan, there are a few errors to avoid, because when you write it, it will push you to ask the right questions:
Who are your clients and how are you going to market your goods / services?
By the end of your first year, what client volumes could you have reached? A second year at the end? From the 5th?
What resources are you going to need to begin building your company?
What are the potential obstacles you might encounter? How to surmount them? What are you planning?
Therefore, the business plan needs to be ideally tailored to your business, its layout, its content and your goals for your business growth. Here are some tips for writing your business plan successfully.
Remember that for investors, your business plan is the window of your venture. The substance of your business plan must be absolutely neat, argued and explained in order to be trustworthy with investors.
It represents the project ‘s reputation, sustainability and profitability. To write the ideal business plan, it is therefore advisable to surround yourself with practitioners in the field.
The business plan, in truth, is seldom valued. Indeed, a world sometimes exists between theory and reality. Then what is the point of getting a BP done?
In fact, the business plan enables you to set a path for your business, a route to follow outlined in a document in writing. So, you have a couple of shares, a roadmap, unlike many strategic conversations and day-to-day decisions. By taking this roadmap, you would of course be able to keep an eye on your improvements continuously and make a retrospective review as to the advisability of the changes made.