Welcome to Money Beng, today we will see how to start a successful business without making mistakes in the start-up phase, we will see in a few points the steps to follow, from the legal form to choose to start a business up to the operational part.
When you think about launching a business very often mistakes are made, especially if you are at the first experience in the field.
These mistakes can compromise your business right from the start with the consequence of failure, which is why it is essential to follow these steps before launching into any online business or into the real economy.
Choose a winning idea
The first step in starting a business is to find a winning business idea, or the market niche in which to enter to sell our products or services.
Let’s start from the concept that there are two main business branches, B2C and B2B, what does it mean?
In the first case we can choose to sell our products or services to end users, in the second case we will go and sell them to professionals or companies.
Clearly to choose one of these two branches where you have a clear idea of what you are selling.
Selling a product or service
Choosing between selling a product or service is never a foregone conclusion.
In general, selling a product is much easier than selling a service, especially if we sell products that already have a well-known brand behind them.
Selling a service is advisable if you have knowledge or experience in a particular and low-competitive sector.
Competition is our main enemy when choosing to start an online business, and that’s why it needs to be analyzed very carefully before venturing into this world.
As for the choice of the product to sell online or in the real economy, this depends a lot on the market.
While for online it is advisable to enter a niche that is little explored but whose demand is more or less high, in the real economy it is necessary to carry out a real market survey to understand what can work or not.
It is necessary to carefully evaluate the number of competitors in a geographical area, people’s demand for a particular product and above all the costs to offer this product at the price for which they would pay it.
Choose the correct legal form
How to start a business? As a sole proprietorship? As a company? What kind of company?
These are the questions you need to ask yourself when you are at this point, because starting a business with the wrong legal form could significantly harm not only your business but also your assets.
For example, if you are a professional and you are quite sure that yours is a fundamental service and it will work, perhaps opening a sole proprietorship will certainly be cheaper than opening a company, especially in Italy with a flat tax for an income that does not exceed 65,000 euros.
But then there are much more risky activities, think for example of the case of opening a shop, it is certainly a more risky and onerous commercial activity, in this case it is certainly preferable to open a business in the form of SRL, a company of capital with perfect patrimonial autonomy.
What does this mean?
In other words, if the shop goes bankrupt, your debtors will not be able to recover from your personal capital but only from the goods and accounts of the shop.
How to start a successful business, work out a business plan
Now that we have in mind the product or service to sell, the legal form, and we have more or less an idea of what we want to do, it is finally possible to develop a business plan.
What does it mean?
Simple, you have to put everything in black and white, the costs related to starting up your business, the premises in the case of physical activity, furnishings, storage, goods, taxes and fees to pay.
It is also fundamental to enter the target customers, that is to create an avatar of the potential customers and understand how many potential customers we can reach with our service or product.
We must enter a hypothetical Roi based on the data obtained and therefore understand if it is possible to have a profit in the medium to long term.
The beginning is the hardest part, so forget about having very large profit margins, a positive balance in the first year of activity could already be a great result.
Choose a winning marketing strategy
When we think about how to start a successful business we cannot leave out marketing and advertising because it is precisely the engine of our future business, here we are not talking about passive income, we must move.
A winning marketing strategy is original, it is unique, it is not copied, it is not based on sponsored on FB and on.
Starting a successful business requires inventiveness and genius and often when you are at the beginning you may not have enough money to hire qualified personnel in this regard, therefore it is advisable to contact an advertising agency that can take care of our brand, with colors , images, logo to create brand awareness and be authoritative on the market.
What does it take to create a winning marketing strategy?
First of all, as we said, we need to create a perfect image of our brand, then we need to advertise it through different channels, we think of email marketing, signage, local radio, advertising on Google, this through a slogan that can enter the mind of the people and convert them into customers.
Mistakes not to commit | How to start a business without risk
Thinking that the simple fact that our product or service is better than that of the competition will sell itself more. Good advertising could sell even the most useless thing to consumers.
Getting the legal form of the company wrong, risking management costs much higher than those you could have obtained with the correct choice.
Starting out in business for the sole ego of wanting to be entrepreneurs. Always have a business plan and a winning idea before throwing yourself headlong into a business.
Underestimate advertising. If it hasn’t entered your head yet, advertising is the life of the company, advertising might just be someone talking to others about the quality of your product or service, customer feedback, and all of the above, are things that you absolutely cannot underestimate, under penalty of failure, under penalty of winning competition!
Read also how to make money.
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