This article will try to summarize some of the steps you should do when starting a business to exist and have no failures.
Some steps have included some videos to make more extensive explanation of the step forward and you can apply the best in your new business.
Step 1:
Find a Business Idea
The first day to determine how to start a business, we must identify a business idea that meets a need, and have an interest in developing. The key to starting a business is not to think how much money will I get, but think how much I love this business idea. It will be vital given the time attending to the business to invest and develop. To do this step, I recommend you take our free course cursoIDEA, finding business ideas and opportunities.
Step 2:
Make a market research
Once having the business idea, the next step is whether there is sufficient market for the business. Why? Before starting a business, we have to be more confident that we are putting the right business. Many times the idea that we consult with our potential customers, and therefore, we were wrong about many things, such as the right price, product request, or the appropriate location. To do market research, I recommend you see MERCA2 course, where we see step by step how to do market research.
Step 3:
Make an investigation of competition
A common mistake is to put an existing business (or already has too much supply). For example, in Mexico there are colonies almost 1 block may have up to 3 or 3 tortilla stores. The recommendation is to see both the yellow section and walk your neighborhood and see how many similar businesses or in the same business there. Ideally, there is 1 or 2. Why? If no competitor may not be the correct location or turning right. If more than 2, and are too close, you indicate that you have too much supply and demand will not have enough business. You can check in google competition inquiry.
Step 4:
Quote what you need
Although I always say we need to do a business plan, we are seeing very rapid start a business. In this case, we have to jump steps and contribute everything we need for the business. The most important are inventories, machinery, packaging facilities, rent and furniture. This step is to give us an idea of all costs including our business idea.
Step 5:
Make financial analysis
In step 2, to develop market research, we could determine a sales forecast of our idea. In step 4, we saw the costs relate. Now in step 5, it is necessary to gather all this information and doing financial analysis to start the business. This involves calculating the potential sales less variable costs and fixed and see if we can make a profit or not. For this step we develop a specific course, ALFA, Making a Financial Analysis, I recommend you check it out because it performs all calculations automatically.
Step 6:
Decide on the location
The location is one of the most important factors for a business. There are several options to consider:
* Use my house: This is a valid strategy for business casual, but remember that it may not be the correct location, even though income is 0.
* Renting a cheap local: This is closer to your target market, however, may be too hidden to find it. For example, businesses that are on the 2nd. Floor lose a high percentage of potential customers.
* Mobile Store: In other words, you can tailor a bike or car to sell, you can buy a bicycle adapted for, or even be sold in the same trunk. Do not think that is bad business. I have seen business “tacos Trunk” or people who sell tacos almost pulled out of the car’s trunk, which have been open for over 10 years by the great success they have.
Step 7:
Condition where
Once we see that the idea can generate profits, the next step is getting started. To start a business, we have to 1) get a place of work, whether we have a local home or available to rent premises, or use a mobile medium. and 2) we have to condition it, either paint job, installation of machinery and furniture, transport, or arrangements.
Step 8:
Shop inventory
Once ready the workplace, we have to buy the necessary inventory. The best thing to start a business and buy only what is essential or minimum. Consider the possibility that the business failed, and one of the biggest expenses is the purchase of inventories. Therefore be to limit the first purchase, and once we have an idea of how much is needed each week or month, can make major purchases.
Step 9: Hire or purchase advertising
When starting a business, advertising is essential. To think that by simply opening the doors will fall to customers is a common error in the employer. Since we are considering a business-investment, it is advisable to put on a monthly budget for marketing (eg $ 100 or $ 1000 pesos per month), and try to make the most of either buying an external display , buying flyers, or do guerrilla marketing tactics (in future articles I will discuss what this is).
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