How to start a business: Basic guide

the idea of having their own business crosses the minds of more than one however not everyone feels empowered to start something on their own due to the challenges and commitments it represents starting a business requires not only financial planning but also structural calculations this is because the needs of the spaces will not be the same for each businessman for example if it is a clothing store it will require large spaces and a warehouse at least on the contrary if what is intended is to set up a restaurant it is possible that not only the size of the establishment will change but also needs such as the kitchen warehouses bathrooms parking among many other areas next we will talk about the steps you must follow to start a business and the elements that you must take into account to make it successful steps to start your own business to start a business you must carry out a series of steps which we will divide into two main stages planning stage execution stage setting up a business can be an easy task if you are organized and consistent it will take a lot of your time as well as extra effort to make it profitable next we leave you a complete guide of the steps that you must follow so that you can earn money with your own business planning stage as its name indicates at this stage we will talk to you in detail about the planning and organization necessary to start a business it is of vital importance since the success of the business will depend on this stage because thanks to metrics that can be calculated such as return on investment roi you can know in advance the probabilities that your project will be profitable and if it is worth investing in it now you will ask yourself how to plan effectively for this you need to define these points which will help you establish where to start and what you need planning to start a business 1 define your business idea is there something you like to do or want to specialize in in general most people who want to start a business already have an idea in mind and just need to give it shape if this is the case define to which category the type of business you want to start belongs to for example the food sector such as restaurants or cafeterias the service sector the commercial sector with this clear you can take the next step if on the contrary you want to undertake but you do not have an idea in mind you can look around you there are several types of small businesses from which you can take ideas for your project the advantage of small businesses is that they have the flexibility to use pre-designed premises or establishments and adapt them to the needs of the operation these are some examples clothing or accessories store laundromats and dry cleaners grocery stores hairdressers and aesthetics coffee shops fondas cheap kitchens pastry shops bakeries pharmacy shoe stores tailor shops greengrocers butcher shops the small and profitable business options are many the important thing is to pay attention to the needs that you require to carry it out and look for a site that meets the characteristics 2 analyze the environment to define the type of business now it is important that when defining the direction of your project you take the environment into account have you come across that in the same shopping mall there is more than one store with the same product or service in order for this point to be carried out define the location where you would like your project to be and analyze what type of businesses there are in the area is it feasible to install your business in that area it is also convenient to analyze the needs of the area in which you want to undertake for example perhaps there are no nearby laundromats or if you want to open a restaurant you find that there are several but they do not serve the same type of food and your project can add variety if you already have a store or you are going to start your business from home you must also confirm that it meets a need of the inhabitants of the area 3 market studies perhaps you do not have the necessary resources to carry out a market study that guarantees that your business will be profitable however based on what we mentioned in the previous point you can carry out surveys among the inhabitants of the area even in surrounding businesses your product or service may also be useful to the owners or employees of nearby businesses many entrepreneurs do not have to worry about this step since there are real estate companies such as bmf inversiones that have investment lots and macro lots with market studies and suggestions for projects to be developed guide banner to invest in the mexican southeast 4 choose the location of your business once you are clear about the direction of the project and that the area you are interested in is viable continue to choose the exact point where it will be in each city there are better areas than others and to find the best one for you you must physically visit the ones that interest you for example in mrida the best locations to set up a business are the north and east of the city if you plan to rent or buy premises to open a physical store it must meet certain characteristics be located on avenues or main streets high influx of people and vehicular traffic preferably in a commercial area be accessible have the appropriate measures for the service you are going to offer or the product you are going to market 5 make a budget when we are starting a business on many occasions the budget does not conform to the plans we have so our advice is not to borrow from the beginning first you must define buy a place or better rent it if you have the capital to invest in a piece of land in a commercial area the benefits are many for example the type of land use has already been defined although land is not as cheap today as it was in our grandparents days there are also opportunities for this generation to acquire properties on installments and with affordable down payments if you decide to rent you can find many well-located premises or land since this is one of the business ideas carried out by investors to generate income once the above is defined write down in your budget the cost of rent or where appropriate the monthly payment for the land or premises write down the expenses in services such as electricity drinking water internet and advertising knowing your fixed expenses will help you calculate the return on investment and ensure that your business is viable budget to start a business 6 establish the name and objectives of the business who are you going to sell your product or service to establishing the target audience that you are going to address will be a necessary step to define the name of your business why because it is not the same to sell to young people than to older people although many want to sell to everyone it would not be a wise decision you must clearly define who your potential customers are and target only them with your sales and marketing efforts the ideal buyer person or client has defined interests and knowing them will be a key element the name of your brand must be consistent with the buyer persona a name that is too fresh or youthful might not be liked by older people and vice versa regarding the objectives determine in advance what you want to achieve with the project both economically and in business growth 7 analyze the competition in digital marketing there is something called benchmarking this refers to observing the competition and analyzing what works for them it is not about copying but about being inspired to do something better analyzing the sales strategies implemented by businesses similar to yours will be the starting point to create yours and improve what already exists in the market 8 make a business plan the business business plan must include all the above points it does not need to be extremely extensive but it must be complete having all the project information in a single document will allow you to keep better control of the progress of the process and detect possible failures or errors and correct or change some details this must include a complete marketing plan and consider in the budget if third-party services will be hired for the management of social networks and advertising campaigns or on the contrary if you want to carry them out yourself you will find a wide variety of online courses to learn how to do it execution stage the time has come to put everything planned into action to execute your business plan we have prepared this list of steps for you 1 look for financing the ideal when starting a business is to have the resources to make the initial investment however circumstances do not always lend themselves to it because the reasons for opening your own business are very varied from doing it for pleasure to necessity as is the case of being unemployed if you do not have savings or capital to invest in your own business obtaining financing will be the indicated option as long as it is reasonable and the level of indebtedness does not exceed the expected profitability projections at this point you will ask yourself where to get the right financing for this we have prepared this list with some suggestions banks they are the most common means to obtain financial resources each bank manages its interest rates as well as its financing programs for smes finding the one that best suits your needs will require time and detailed information financial institutions oriented to smes in addition to banks there are other entities where you can obtain financing these are focused on small companies and are more accessible than banks the interest is lower but the loan amount is too partners a partner is the natural person who shares both the profits and the risks of the business he works with you to grow the project and obtain a percentage of the profits investors unlike the partner it provides the capital in whole or in part in exchange for a percentage of the profits without working together contests by contests we refer to government programs universities or other entities whose interest is to promote the creation of new companies to obtain financing you must prepare the business plan and register if you are selected they provide you with the capital to start if you want to know more about the factors to assess the risks of an investment we invite you to read the article we have on this subject 2 proceed to the purchase or rental of the premises in the planning stage you chose the place with the ideal location for your business now continue to formalize and proceed to buy or rent it for this process we recommend you have specialized real estate advice especially if it is acquired through a third party and not a real estate company buying a piece of land with legal certainty will guarantee your investment and provide security for your project in addition to having the peace of mind that the property has no legal problems and the payment of taxes has been carried out in the case of leasing land we have these recommendations for you that it is very important to take into account check that the duration of the contract and the renewal are ideal for you include a clause that allows you to transfer or sell the business in case it does not turn out as you expected ensure the possibility of transferring the contract to the new owner in case of transfer or sale in this way you will minimize losses the contract must be clear about the agreements on construction and improvements that can be made to avoid future problems with the owner of the property being sure of all these points before signing the contract will avoid future problems 3 remodel and decorate your premises in your budget you must allocate a part of the capital for this purpose one of the most common mistakes made by those starting their first business is investing too many resources in this step focus on the renovations that are necessary for the operation of your project and with that as a base decorate the place with your personal touch and according to the type of business we recommend hiring trained personnel to carry out the essential remodeling for tasks that you can do yourself such as painting and decorating you can request the help of family and friends who will surely be willing to do it open your own business 4 install the machinery and furniture the machinery and furniture will depend on the line of business always aiming at functionality rather than aesthetics it is not pleasant for example to arrive at a very nice restaurant but with uncomfortable chairs as with the remodeling and decoration buy what is necessary to be able to open and function over time as you make a profit you can allocate a part to improve or expand the furniture it is always possible to save money and get what is necessary without investing much for example for the restaurant area the suppliers can provide tables napkin rings a refrigerator among other objects if it is an office you can get stationery this is common since the tenant gets the furniture and the vendors advertise by having their logo on the furniture another interesting way is to reach an agreement with local artists who are looking for spaces to exhibit their works or products 5 find your suppliers the next step is to contact the possible suppliers of products or services that you are going to need it is not recommended to go for the first one you contact even if it takes more time quote and compare prices and quality in this way you will save future expenses to find your ideal suppliers take these factors into account the payment facilities the delivery time of the product or service the guarantees and the length of time they have refund policies discounts experience and reputation 6 hire and train new staff its time to post vacancies and interview candidates for the positions youre applying for for this there are digital platforms where you can make your requests most of them are free of charge and are very effective it is important to immerse the selected candidate in the business mission and that they feel committed to meeting the objectives to achieve the established goals some options to reduce payroll costs is to hire personnel who work for commissions or freelancers this is recommended at the beginning when you already have financial stability you can start to put together a fixed employee payroll 7 formalize your business many entrepreneurs overlook this part to avoid paying taxes however formalizing your business will give you the security of protecting your assets in addition to being able to issue payment receipts qualify as a subject of credit and be able to buy and sell without restrictions how can you formalize your business it establishes whether it will be constituted as a natural person or a legal person determine the type of business or partnership register your brand name elevate the constitution document to a public deed with the help of a lawyer register your deeds in the public registry of property to obtain your title choose the tax regime and obtain the taxpayer code obtain your operating license 8 promote and open to the public after all the hard work of planning and execution the time has come to open to the public and welcome all potential customers promote the opening of your new premises among family and friends also in the area where it is located with the opening date and the products or services you will have make your opening something special you can offer special opening promotions on the first purchase snacks or a free sample remember to promote the event on social networks which provide the necessary tools to reach a large number of people located in the target area.