Entrepreneurship in the business field is starting a business. It’s as simple as this. The self-employed and businessmen are entrepreneurs. But certainly, the reality is far from the definition. How to establish a successful business when we are starting out?
Setting up a new company takes investment, effort, time, work, dedication and intelligence. Therefore, at Ibercenter we are going to share some tips on how to start a business following a logical roadmap.
8 Keys to starting a business
1. Choose which market you’re going to cover
The first step is to decide what need you are going to cover within the market.
If it’s a new product or service, you need to determine if people will be interested in what you offer.
If it is a product or service that is already on the market, consider what difference or competitive advantage your product or service has.
To do this, you must be knowledgeable and master the market where you are going to start a business. This is basic advice but one that entrepreneurs sometimes do not consider. They believe that an original idea, “being the best” or “investing a lot of time” will allow them to grow and generate profits.
Nothing could be further from the truth. Not only do you have to have an original business idea, a competitive advantage or an element that differentiates you from the competition but also know the market and anticipate its evolution.
In addition, after the pandemic, an analysis of the impact that the coronavirus has had on this sector.
Currently, economic activities related to food, technology and the environment are among the most resilient. In contrast to this, sectors such as nightlife continue to be affected by both restrictions and increases in infections.
2. Develop a business plan
When starting a business, you must study and plan your next steps and set objectives, both short-term and long-term with a business plan.
And with this we are talking about numbers. You must evaluate:
- The point at which fixed and variable expenses will equal income.
- Establish a pricing strategy considering production costs.
- We must determine the cost of getting customers.
- Estimate how much each customer will spend on our business.
These are basic calculations that will allow us to anticipate whether our business is profitable or not. Be realistic with your budget and create a strategy that solves future problems before they happen. Make a written plan and be clear about your goals.
In each phase of the project, the business plan should also contemplate your company’s digital presence.
If you don’t know your ideal customer, you won’t know how to guide your sales strategy
3. Define your ideal customer
If you don’t know your ideal customer, you won’t know how to guide your sales strategy. Therefore, you must define the ideal customer for your future business: gender, age, purchasing power, motivations, concerns or life moments.
As Bill Aulet explains in The Discipline of Entrepreneurship, you must not only understand your customer and what motivates them from a rational point of view, but also emotionally and socially.
This may be our case. At Ibercenter, entrepreneurs are potential customers. Their motivation and enthusiasm from an emotional point of view would be to start their business. From a rational point of view, how to assemble it. For this reason, we have developed these tips that may be useful.
4. Analyze your competition
Competitor analysis is essential if you are thinking of starting a business: weaknesses, strengths, threats or opportunities. Don’t feel like you’re copying or plagiarizing, as your goal isn’t to do the same, but to do it better.
Study their products and services, offers and promotions, their website, offices, their brand name, logo or social networks to know in detail what the offer of your sector is.
5. Seek advice
Don’t be afraid to ask for help, get informed, and learn everything in your power to be able to apply it to your business. Seek professional advice in those areas of the company where you do not have as much knowledge: invoicing, taxes, incorporation or legal issues.
Finding specialized advisors will save you problems and time, which you can invest in growing your company.
6. Build a good team
When creating a business, it is common to be guided by friends and acquaintances when hiring the team, giving rise to uncomfortable situations in the future. Surround yourself with experts in your business and make sure they feel like they’re part of your project.
7. Create smart partnerships with other entrepreneurs
If two companies come together, whether on a temporary or permanent project, they will obtain higher revenues and lower costs, unlike their individual competition.
Symbiotic relationships can also be established with other companies. However, for a partnership to be successful, all participants must benefit.
Carry out a self-assessment where you ask yourself the following: What do you offer? How far do you want to go? What benefit do you get in the short and long term? What do you need to do it? A good strategic alliance will allow you to strengthen your weaknesses and reach your goal.
8. Choose the right location
Search and study the location of your business considering all the factors, current and future needs. The location of your business can be essential when it comes to establishing a bond with your customer.
As we explain in 10 tips to know where to locate your business, correctly locating your points of sale will make your business go well.
CHOOSE THE BEST OPTION FOR YOU – HEADQUARTERS, OFFICE OR VIRTUAL OFFICE?
At Ibercenter we help hundreds of companies to grow their business. We know how difficult it is at the beginning and the expense involved. That’s why our business center offers the best workspaces, from offices to meeting rooms, that will help you save costs and avoid long lease stays.
Get to know all our services.
