The Right Way to Form a Business
Starting your own business is a dream most people have. Until a decade ago it was not as simple to execute that idea. However with the advent of the internet, finding the right ingredients that make up successful formation of a company, is not impossible.
Starting a business is not a piece of cake but forming it right is a different story altogether. Why do 90% of start-ups fail? They fail because they don’t form the business in the right way. Your location also decides the level of difficulty you will face. It’s a little bit easier in countries like the US, but forming a company in Brazil or Venezuela can prove to be a herculean task. It’s not impossible, though.
Here are eight mantras that will help you be part of the 10% and ensure success:
Organise the Idea
Ideas are great but making those ideas work is a different thing. While evaluating your ideas check of:
- Demand: Do people really want or will want to buy your product/ service?
- Feasibility: Will you make profits eventually?
- Future prospect: Is it a fad or is it here to stay?
Be Clear on the Short Term Goal
Understand your short term goal. Whether you wish to make profits in the first two years or grow your customer base before you start looking towards profits.
Depending on your short term goals your plan of action will develop. Coming up with the company mission can help with developing the short term goals.
Have a Clear Picture of the Long Term Goal
Brainstorm and write down your company vision. It is important to know how you see yourself progressing in the path of success.
The figure of if there is any scope for expansion, whether you will consider selling off or acquisition of other companies.
Figure out the Legal Structure
Once you know what you want to do and what you wish to achieve you have to decide on a legal structure.
Depending on the amount of control you wish to have over your company and how much risk you want to mitigate you should make your selection. Additionally, if your company requires employees to perform risky tasks, having workers’ compensation insurance (you can visit https://www.icwgroup.com/workers-compensation/claim-services/ to know more about such insurance) might be required by law. In the event of injury or illness while at work, this type of insurance can cover medical expenses as well as lost wages for the employees
Plan your Finances
Whether you are taking a loan, have family money or are relying on angle investors always have a backup option. Understand each option and evaluate them carefully on the risk factor.
Next evaluate the optimistic, realistic and pessimistic scenario of when you will breakeven and how much more funding you might require. Being clear about your financials is extremely crucial.
Invest in technology
Investing in technology is an exceedingly crucial aspect of running a successful business. Regardless of its size, a business can significantly benefit from technology investments. Such investments enable businesses to lower costs, enhance efficiency, and secure a competitive advantage in the market.
There are various forms of technology investments that businesses can consider, including data analytics software, multi-cloud management systems, artificial intelligence, and automated customer service solutions. These investments empower businesses with cutting-edge tools and capabilities, allowing them to stay at the forefront of their respective industries.
Employ the Right People
Once you have the base set up, you will need to start expanding your core team. Though hiring might look like fun, it is very critical.
Those first few to join your company will determine your company culture, work pace and company success. So make sure you know what you are getting into.
Be Quick to Adapt
While sticking to the rules and your long term and short term objectives are good you must know when to change direction and re-evaluate.
In today’s fast changing world it is imperative that you know how your company, consumers and competition is changing and adapt to counter each.
A clear vision with a zeal to change and keep pace with the world will surely bring success to your company.
