Startups are innovative endeavors with management focused on fast growth. Nowadays, many startup companies are emerging in the business world.
However, not all can survive in the market.
This is because opening a startup is not as simple as it sounds. Many entrepreneurs discover their misconceptions only after they get the idea off the paper.
Prior to the formal constitution of the company, there is a long process. The entrepreneur should know that from idea to formalization, there are many decisions to make and important procedures to make.
Opening a startup requires organization, focus, and planning. It is also essential to have the help of the right professionals to carry out the necessary procedures and to avoid mistakes that could endanger the business.
We’ve outlined a 10-step walkthrough to clarify every detail about opening a successful startup. Check out!!
1- Develop your idea and build a business model
Before you can start a startup, you need to have an innovative idea to get off the ground. Innovation is part of the basic definition of such a company.
However, this idea also needs to be scalable, ie have great growth potential.
It is also worthwhile, before actually starting to execute your idea, to find out what your potential competitors are, if there is already a similar solution in the market, among other points.
There are many ideas that seem ingenious and innovative from the point of view of their creators but have actually been around for years.
From an initial idea, you can sharpen a “concept” and clearly determine which solution your business will offer and who will benefit from it.
With this clear definition, it’s time to work out a business model. A business model is a simplified version of the business plan.
We recommend that you use Business Model Canvas. Canvas is a tool that lets you design your business and assess whether it is interesting and feasible.
This management tool helps to structure the venture securely. It describes the business model, the operation of operations, the financial organization and other crucial aspects.
2. Seek information and exchange ideas
If there is one thing the future entrepreneur needs to do to succeed in the venture, then study. And we are not just talking about formal study, a college, for example.
Of course, this is important, but you also need to know everything about your product or service and know the market and opportunities.
In addition to the Internet, business owners and experts can be valuable “sources” of information. So the tip here is: talk to as many people as possible, book cafes to exchange impressions, attend events.
As well as being a great way to get the knowledge you need, you can also find out if you can get incentives or funding for your idea.
Besides studying and relating, in some cases, it may also be interesting to take courses in one or another specific area.
Sure, you’re not an expert at all, but sometimes at startups you need to understand at least a little bit about various subjects.
Today, there are many ways to qualify for specific topics, including for free. On the web, you can find free online courses in various areas, from entrepreneurship to marketing and finance.
4. Validate your idea
After defining the concept, setting up a business plan, studying and getting informed, there is still an important step before actually starting a startup.
Validation should be done before the idea is implemented and will tell if it is viable or not.
For this, you can bet on MVP (minimum viable product). It’s about creating a simpler version of a product or business that can be launched with a minimum amount of effort.
5. Choose partners and get everything in a contract
One of the main reasons for the failure of some startups is the disagreement between the partners. The entrepreneur should know that, in addition to making good choices in this regard, this relationship needs to be formalized.
There may even be a friendship between the partners, but when in the middle of that there is a decision to start a startup, things change.
This does not mean that friendship ceases to exist, but the parameters of the relationship between partners must necessarily be in a contract.
The articles of association are the document that establishes what happens in case of disagreement or eventual departure of one of the partners.
Starting a business informally, even if it is a startup, should be dismissed by the entrepreneur. If the formalization process of the company is not done correctly, there are several consequences – not only in the legal sphere, but also financially. This means that such irresponsibility can jeopardize all your efforts.
The process of opening and formalizing a startup follows the normal model of opening a company. She needs to have a CNPJ and be registered with different official bodies (IRS, Board of Trade, City Hall and etc).
7. Enlist the help of experts
When opening a startup, the entrepreneur needs to be aware of the importance of legal and accounting guidance in this process. The lawyer is an essential figure for drafting and managing contracts.
Already the accountant conducts a prior tax study to define the scheme that will be most advantageous for your company.
This decision needs to be guided by an expert who knows the different tax frameworks, as it depends on a number of factors, including company activity and revenues.
8. Choose a good business address (if required)
If your business type requires a business address, you need to do a good search before choosing a location.
Remember that in addition to a good location, the point needs to have the necessary infrastructure and fit in your pocket.
9. Don’t miss in hiring the team
At the beginning of the activities, it is interesting for the entrepreneur to look for a team with complementary skills and to prefer reliable people he already knows do a good job.
In addition, it is not advisable to start operations with “informal” hiring – or without a contract.
Hiring correctly helps prevent future problems and the famous “cheap that can be expensive”. As much as it is more expensive and complicated to have “legal” employees, it is worth not taking such risks.
10. Have a good plan
One in four such companies close down shortly after starting their activities, good planning is a fundamental requirement for starting a startup.
This plan should include the different possibilities for resource seeking and the definition of the capital needs and goals of the enterprise.
All this taking into consideration the amount of taxes, the payroll, the pro-labores and the fixed and variable expenses of the company.
For this reason, it is essential to have an accounting professional who helps keep finances up-to-date and assists in evaluating possible investments that grow the business.
As an entrepreneur, even at the beginning of this challenge, you need to be focused on moving from being a startup to becoming a big company.