Which of these points would you give priority when planning your company?
- Choose the color of the walls
- Choose the company slogan
- Define employee uniforms
- Define your sales strategy
- Define your target market
Which one would you give less priority to? What aspect would you delegate?
Creating your company is a process which represents a series of steps that entail from the first day a series of important decisions which must be taken with great intelligence and wisdom.
Those decisions can make the difference between a healthy business or the opposite. And if we are not careful, the small details can absorb our time, energy. Diluting in them is a common mistake many entrepreneurs make.
So, today I share with you some of the issues that require more attention when defining them so that your focus is always on what is important.
You must define exactly and clearly where the capital for the operation of your company. Savings? Loans? Capitalist partners? Etc. And the consequent question to be resolved must be how will this capital be paid? How long? How much interest will you pay?
Establish this factor, in writing and clearly determine how the money will be invested is essential for the start of your company. In addition, answering these questions will help you to search from the beginning the best advantages in terms of the payment of the capital that will directly affect the financial health of your business.
Land your idea on a written business plan that solves the questions regarding what? how? when? it is decisive for the success of the company. Establishing clearly the products and services to be marketed is essential. Starting with a vague and poorly defined idea is a mistake that can have very high costs. Wanting to start big without having the financial capacity to do so is too. Thus, you must coldly evaluate with numbers the viability of your idea and the existing potential market for its success.
your business plan must answer, among others, the question:who will do the work? Answering this question with names, attributions and income is essential. The worst thing that can happen when opening the doors of your business is that you do not have all the necessary staff to meet all the requirements and services that you offer.
You must clearly define who will manage, who will sell, who or who will be operators or producers, etc. It does not necessarily mean hiring 50 employees the first day as this depends on the size and scope of your project. But if it must be clearly established who will perform each function and your internal personnel hiring policies.
Many entrepreneurs omit the all-important sales function in the company. They have a product, they know who will perform the services, the owner is an efficient administrator but they open their doors and then wonder why there is no movement of customers. And the answer is very simple: they did not define who would be the person (s) in charge of selling.
As we have constantly stressed on the blog, sales are the foundation for your business to stay healthy. Sales generate cash flow and money generates profit.
It would be useless to have the best product in the world if you cannot place it in your client’s hand. And to achieve this successfully it is necessary to have a sales strategy. Your strategy should blend promotion, marketing, sales, customer service, and your claims policy in such a way that your business runs.
The formal and legal part of the business are like the respiratory system of your company. Many owners make the mistake of not doing all the legal procedures for your business to operate no problem. Define if you will be an individual merchant, a public limited company, the tax regime in which you will operate, the licenses your business requires, commercial patent, registrations, permits, etc. they are steps that you cannot skip or take lightly.
Many companies with great potential succumb when they are involved in problems with finances or fines that the government imposes on them for failing to comply with their responsibilities in paying taxes or accounting controls. Thus, no matter how small your project may be, establish from the beginning how you will define these elements in the regulatory process.
The Secret to Success (Conclusion)
I must admit that these decisions are not easy to make and even less when you do not have the necessary business experience. Emotion is good as long as it doesn’t cloud your vision. And that is why it is convenient to get adequate advice.
For example. If you need better documentation on tax issues or legalization of the company, get advice from a good auditor or lawyer you trust. If you need support in establishing your sales strategy, do it in conjunction with a good salesperson or marketer.
You don’t have to know everything or expect to learn it in a week. The secret is the advice and this of course has costs that will always be lower than the high cost of a company that is on the wrong track, with overproduction or entangled in legal problems and complicated to solve.
And if you are self-taught, the web has a lot of free information to be able to properly document yourself about all these fundamental topics.
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