Are you thinking about starting your first business? If so, you're in the right place. Read our short guide to avoid basic mistakes and realize the maximum potential of your idea. Every business is different, but there are some common features that we have tried to detail. Have a good read!
Owning your own business is not only about benefits, but also some limitations. Anyone who has been in business will confirm this. Below you will find a brief summary of the advantages and disadvantages - it is worth keeping them in mind before the final decision to register a business.
A trait of most entrepreneurs at the initial stage of developing their businesses is hurricane optimism usually not yet supported by the actual results of the company. In order to minimize the risk of disappointment, it is worth checking the actual demand for our product/service even before we incur significant start-up costs. How can this be done?
The worst possible idea is to ask family and friends for their opinion. Usually, close people are uncritical in such situations and delight in the idea, although if a stranger offered them an analogous product or service, they would not decide to buy it.
However, there are other options. The simplest of these is to conduct market research (a survey) among strangers, preferably among potential customers (this requires the creation of an ICP - Ideal Customer Profile). This can be done in a number of ways, both online and over the Internet. It is important not to suggest the respondent's answers in any way when conducting the survey. It's also worth dabbling in the topic of the customer's real need and how he or she has so far solved the problem on his or her own instead of telling/directing a conversation about our product.
Or you can go a step further and take a chance on selling your product/service from the very beginning (instead of surveys). The model of collecting more orders from customers and only then commissioning production is increasingly popular. This minimizes business risk when selling products.
This is how the "Meatless" company (one of our clients) started out a few years ago, ordering production only after it had collected a sufficient pool of orders via the Internet. Customers were aware that the model worked this way. Now the company has gone international, and its products are available in all major grocery stores.
"Success in sales does not depend on those you know. What matters is who wants to know you." - Dale Carnegie
Another example, although this could also be a so-called "urban legend," tells of a pizzeria whose owner was considering opening a location in three different locations. In order to choose the optimal location, he bought three SIM cards for three phones and handed out flyers about the new pizzeria in three neighborhoods. Later, he waited for orders and found that one neighborhood had by far the most orders. Thus "on a living organism" he checked where best to launch the business. And what about the orders? He replied to everyone that they had so many orders that they would currently have to wait a minimum of 4 hours - no one opted for that. Later, he sent these people a text message that he apologized for the last situation and offered a suitable discount - once he had launched the right business.
So the possibilities are many, and we are only limited here by our creativity.
Proper handling of all legal issues at the time of starting the business will save problems in the future. The adage "prevention is better than cure" applies here. What tasks need to be done in this field depends on the industry and the specific business. Typically, you will need to prepare or at least check legal documentation such as customer contracts, employee contracts, lease/purchase agreements for premises, etc. With online businesses, pay attention among others. on RODO, terms of service or copyright transfer agreements with software developers.
Regardless of the industry in which your company will operate, what concerns every company is the selection of the appropriate organizational and legal form. We have described in detail the most popular forms available herein. You'll also find information on why few people set up a civil partnership or operate as a partnership. Here I will just hint at why the right choice, best suited to the nature of your business and individual needs, is important.
Depending on whether you opt for a sole proprietorship or a commercial company (e.g., a limited liability company), your taxation will be different, the issue of liability for Social Security contributions will be different, the liability for any liabilities of your business will be different, and the cost of setting up and running a business is also different. And these are just examples of the differences. Therefore, it is worthwhile at the planning stage, to talk about this topic with a specialist who will advise the optimal, tailor-made variant.
Remember one more thing. If you are starting a business together with other people (partners), it is essential that you conclude a partners' agreement (known as "founders agreement" or "cofounders agreement"). This is an agreement you can conclude in addition to/alongside the traditional partnership agreement, which should regulate your relationship, including rights and obligations. Then you will reduce the risk, of possible future disputes and conflicts. Thus, prevent Instead of curing!
Starting a company involves a specific, often unique business idea. You may have even the best service or product on offer, but it's all for naught if you can't sell it. One of the most important, if not the most important component of a company's success is sales, which translates into generated revenue. Therefore, it is very important to ensure that you have an effective salesperson in your company from the very beginning. This can be the originator himself, if he has the aptitude for it. The marketing strategy and sales channels are also important.
It can be useful to determine the profile of the ideal customer. Knowing well to whom we address our offer, what buying habits such a person has, it is much easier to design appropriate activities.
It is also important to monitor the effects of marketing and sales activities to optimize these processes to achieve better results. Specific sales activities must be tailored to your service/product. There is a different way to sell to consumers (B2C sales) and a different way to reach business customers (B2B).
After reading the article, you certainly already know what to look for when creating your own business. In the beginning, it is also a good idea to create a professional business plan, which will include competition analyses, market, marketing plan or financial projections. If you want business support for company registration and legal issues or for business development or financing, contact us. We will be happy to learn the details of your idea and advise you on how to maximize the chances of success.
