Creating a business is not just a simple matter of completing the formalities to obtain registration; it involves a long project construction and validation process. Many essential steps await the entrepreneur: validation of the idea, market study, business plan, search for premises, search for financing, etc. This guide offers you a summary of the 10 essential stages of a business creation project.
Evaluate Your Business Idea
In this first step, the business creator must ensure that all the conditions are met to start his business creation project. First, ensuring a good correlation between the project and the entrepreneur will be necessary, particularly regarding skills, human qualities, and availability.
Next, the entrepreneur must take stock of his family and financial situation. Is it favorable to lead a business creation project? Is this the right time? Finally, a final thought must be about the idea itself: Is it good? Does my entourage validate it?… Once the idea is validated, the entrepreneur can build his business creation project.
Study The Market
Market research is an essential step for any business creator. Its completion will enable obtaining information and adjusting the project according to its environment. The study will identify the market in which the company will operate. Here are several essential questions:
- What are the characteristics of the market (geographical scope, size, development, outlook, etc.)?
- Who are the main competitors? What offers are offered? What are their strengths and weaknesses?
- Who are the clients? What are their decision criteria? How do they behave?
- Are there other vital players (suppliers, subcontractors, etc.)?
- What are the market regulations?
The results of the market study will then allow the business creator to refine his project.
Prepare The Project Down To The Smallest Detail
After refining your idea and studying the market, it will be necessary to start working in detail on the business creation project. Here, there are quite a few topics to cover:
- What will the company offer its customers?
- What are the characteristics of the products or services sold?
- What channels will be used to attract and connect with customers?
- What arguments does the company intend to rely on to put itself forward?
- How will the production cycle and the commercial cycle take place?
- What tools, materials, and skills will the business need to operate?
- What are the essential partners that the company will need?
The objective is to obtain a precise and detailed view of the strategic plan of the future company.
Develop A Financial Study Of Your Project
Once the business creator begins to have a precise idea of how his project will be implemented, thanks to the action plan that has been worked on, it will be possible to develop a financial study. Carrying out a financial forecast allows you to obtain several essential figures:
- What funding must be mobilized so that the project can be launched?
- What is the expected profitability of the future business?
- What is the expected income?
In addition, producing a financial forecast leads the entrepreneur to question himself in many areas. These reflections are particularly enriching:
- What taxes will the company have to pay?
- How much will social security contributions cost?
- How are taxes and social security contributions paid?
- What are the anticipated impacts on cash flow with customer and supplier payment deadlines?
- What overhead costs must you plan for to run the business properly?
Mobilize The Necessary Financing
Most business creation projects require financing to launch the activity. The size of the budget will depend on the characteristics of the project. This step is quickly completed when the business creator can finance his project himself. The financing will then take the form of a capital contribution and a partner’s current account, made at the time of the company’s creation.
On the other hand, when external financing is necessary, this step can take several months, and there is always a degree of uncertainty regarding obtaining the financing. The first thing to do is to make an appointment with a few financial institutions. At the same time, it is also possible to contact business creation support organizations (CCIs, management boutiques, etc.), which support entrepreneurs in their search for financing.
Find Premises To Set Up The Future Business
Many business creation projects require finding professional premises to carry out the activity in good conditions. This will be the case when a store is open, customers are received on the premises, or the company has a production activity. In these configurations, the search for professional premises must be anticipated, as it can take a long time. The business creator must start by establishing a list of criteria for his future premises and geographical location. Then, finding a solution among the offers available on the market will be necessary. A lease promise can be concluded as soon as a premises is found.
Create A Business Creation Project Schedule
To launch his business creation project, the entrepreneur must avoid throwing himself headlong into all directions. It is essential to know how to manage your time and determine priorities. To set up the future business and start the activity, it is necessary to plan the work to be carried out: layout of the premises, stockpiling, recruitment, communication, etc. This planning approach will also help avoid forgetting important tasks, which can happen in the absence of an organization.
Think About Your Business Creation Choices
Before embarking on the process of creating a business, the entrepreneur must think about the following characteristics:
- the legal form of your future business (individual business, SARL, SAS, etc.),
- the profit tax regime (micro-enterprise, income tax under an actual tax regime, corporate tax),
- the social security regime of the manager (self-employed worker or general social security regime).
These questions must be addressed to begin the formalities for creating and registering the company.
Carry Out The Business Creation Procedures
These steps constitute the culmination of the business creation process. At the end of these, the company will have an official existence because it will obtain its registration. The steps to take to create a business depend on its legal form. These will be more complicated when it comes to creating a company.
Launch Your New Professional Activity
Once the entrepreneur has registered his new business, he can start his activity. It will be preferable to set up the administrative framework of the company as quickly as possible (quotation and invoicing system, accounting, payroll in the presence of staff) and to take out an insurance contract.