#1 Take time to do a complete research

If you are determined to create your own company, surely you already have a business idea. But if this is not the case and you are only determined to be an entrepreneur, this is the first step you must take. A good brainstorm or making a list of companies that we find interesting can be good starting points.

There is also the possibility of choosing as an option to start an existing business model such as a franchise. In this case, most of the work will already be done: the concept, the brand, and the operations, among many others.

For a small business to be successful, it must solve a problem, fulfil a need or provide a non-existent product. In a nutshell, you should offer something the market wants. Once you have a couple or three of interesting ideas, it is recommended to delve a little deeper into the business model: what will be our market exit strategy, potential customers, what pricing policy will be followed, what will you offer better than other companies, etc. If you already know these points, it is time to start creating a good business plan.

#2 Make a good business plan

A business plan is a tool to evaluate opportunities and define their viability but it also becomes a sort of “security mechanism” to minimise risks when crating a business. Remember that there are two common ways to fail: one is to do things without thinking and the other one is to think things without doing them. At this stage, these two mistakes are usually made and it is important not to commit them.

On the one hand, some start without a plan and on the other, some plan too much and never start. Your business plan must be simple, realistic and practical to be interesting to partners and investors. The good news is that there are different types of business plans for different types of businesses and each company can easily adapt it in the way it works better for them. In this article by Forbes you have a practical guide on How to create a business plan.

Normally, there are two types of business plans depending on the financial support a business needs. In case you need financial support, the business plan serves as a “business card” of the autonomous business project, especially for the application for grants and subsidies, where it is usually mandatory, but also for the recruitment of private investors or to obtaining a bank loan.

In case no financial support is needed, as an entrepreneur or self-employed person who promotes a business project you are the most interested in having a business plan, since through this document you will have a tool to analyse and plan your project, get to know it better, identify its strengths and weaknesses and start it with greater coherence and rigor, increasing your chances of success. It will also help you in organizing the necessary tasks.

#3 Plan your finances

By this point, you should have clearly understood all aspects of your project, and if you do not have them clear yet, I recommend you to return to points 1 and 2 or you could run the risk of poor financial planning.

There are various sources of financing for entrepreneurs, each has its pros and cons, but money should never be an obstacle to start your business. Some have enough capital to start, but others must go out to search for financing and that is where a good business plan becomes important. No one will give you money without any interests; even government entities and support programs expect your project to be convincing enough.

It is recommended that you put together the start-up cost for your business such us legal fees, equipment, licenses, inventory, etc. Last but not least, it is important to anticipate the cost that the business will have in the next 12 months. That said, those numbers combined are the initial investment you will need to make.