How To Create A Company Step By Step In 2023
Do you plan to create a company? If you are an entrepreneur and have a business project in mind, you should take these steps into account before starting your new business.
Creating a company from scratch is not an easy matter, especially when you have little experience in business matters. The current context forces traditional entrepreneurs to be more competitive and take much more care of each of the details involved in starting up a business idea.
For this reason, we have given ourselves the task of compiling valuable information that will make the path of new entrepreneurs much easier. We will tell you step by step how you can create your own company and all the aspects that you must consider so that the business healthily runs in the right direction.
12 steps to create a company from scratch
Many tasks must be completed from the moment you decide to start a business until the company finally begins to function. It is convenient to have a detailed guide that accompanies us throughout the process, thus guaranteeing that no important detail is left to chance.
1. Find a business idea and analyze its viability
The decision to undertake begins with a business idea. However, it is quite possible that before deciding on a particular idea, we will have to rule out many others. We must find the right business idea and determine the necessary resources to carry it out.
A SWOT analysis (Strengths, Weaknesses, Threats, and Opportunities) is a very useful tool to analyze the viability of a business project, allowing paper corrections to be made to the business plan, long before resources are risked. This would imply a considerable reduction in the risks associated with entrepreneurship.
2. Choose an appropriate legal form
Every enterprise will have to assume a formal character before starting operations. After finding the appropriate name for the project, it is necessary to select a legal status that best suits it. For this, it is important to know the characteristics of corporations, limited companies, cooperatives, and other available forms.
Each legal entity or commercial company has its advantages and disadvantages, especially in three aspects: taxation, level of responsibility, and difficulty of the required procedures. According to the tax laws of each country, you will be able to find a legal form that suits the particular needs of your company.
3. Find a funding source
Most enterprises need to locate an external financing source. Entrepreneurs usually have good ideas but do not have sufficient resources to start up the project, being forced to establish partnerships that allow them to leverage the business or simply find financing.
One of the main sources of financing is usually savings or own resources. However, when this is not enough, it is possible to resort to credits or loans from financial institutions or go to personal loans requested from family and friends. There are also risk capitals, crowdfunding, and state subsidies.
4. Locate the right facilities
A crucial step for starting up the business is the selection of the facilities where the company would operate. This is particularly important when it comes to a business model that includes direct sales since businesses based on traditional commerce require facilities located in areas with easy access and visibility to attract customers.
Although the availability of commercial premises and offices is enormous, finding the right facilities for the characteristics of the project we have in mind is not a simple matter, and it usually takes several weeks and even months to find a place that suits the needs. legal regulations, the needs of the project, and a price appropriate to the budget.
5. Hire employees
The hiring of personnel in charge of business activities is another matter that should not be left to chance. The start of operations is usually an exciting period, but it is also full of difficulties, challenges, stress and above all, a lot of work. That is why it is essential to have collaborators committed to carrying out the project.
It is important to take enough time to analyze the characteristics and experience of each candidate who will be part of your future company, giving preference to those people who demonstrate the necessary potential to fulfill the tasks extraordinarily entrusted to them. Of course, you will also have to offer corresponding financial compensation.
6. Choose the right providers
It is necessary to carry out a complete investigation of all the available options regarding the suppliers of inputs and raw materials involved in each of the phases of our business. The meticulous choice of each supplier will be key to guaranteeing customer satisfaction and that the entire production process runs correctly.
Consider the following criteria as priorities when choosing suppliers for your business: economic situation, location, size, reputation, payment facilities offered, speed of delivery, minimum quantity of orders, experience, quality certifications, guarantee, after-sales service, and value for money of the products it offers.
7. Adequacy of facilities
The adaptation of commercial premises or offices is a task that demands a large number of resources, especially when the type of product to be produced or service provided has special requirements. Sometimes, minor reforms are also necessary on the premises, all of which take up a good part of the available budget.
Consider this topic within your business plan and find ways to cut unnecessary expenses wherever possible. For example, decorating with second-hand furniture and minimizing the cost of consumables by taking advantage of business management technologies or digital invoicing are important issues.
8. Start of production
At this point, you will have everything ready to start the production process. Your company will be located in a strategic place in the city, equipped with everything necessary to start operations, the necessary personnel and financing, as well as the correct suppliers for the raw material of your business.
Thus, the next step will be to formally start the production process, be it manufacturing, marketing, or simply an administrative service. In any case, you will have to make sure that each of the functions of the company is distributed correctly and that all your collaborators are following the established system.
Whether you dedicate yourself to the production of goods and services or their commercialization, sales must occur, since otherwise, no money will enter the company. To make this task much easier, it is important to apply sales strategies that make generating income much easier.
The basis of a company’s sales, in addition to having products or services with an excellent relationship between quality and price, is also the ability to negotiate and close sales. Perhaps it is something that you do not like at all, but it is necessary to learn to sell and make sure that all employees facing the public also know how to close sales.
10. Establish a marketing strategy
To support the previous point, it is necessary to draw up a powerful marketing strategy that is aligned with the company’s objectives. Marketing is essential for both traditional and online companies and those that coexist perfectly in both scenarios, which is quite common in the current context.
With marketing, it is possible to drive potential customers to discover a company’s products or services. If our target market cannot discover our products, it will be difficult to make a sale and therefore the business will fail. Customers are part of the pillars that support a business.
11. Guarantee customer satisfaction
From the above, customer satisfaction also follows, which must be a priority issue for companies that wish to remain in the long term. It is necessary to develop a good reputation, which begins by guaranteeing the satisfaction of each of our company’s clients.
Take into consideration that poorly served customers may not buy again and may not recommend your business’s products or services. It is a good idea to take advantage of social networks to learn first-hand about the customer experience and resolve any detected problem in time.
12. Measure results and outline optimization strategies
The only way to improve the existing business model is by constantly measuring the results obtained. For this, it is necessary to establish variables that serve as quality indicators, which we can use to evaluate all aspects of the business.
In this way, it will be possible to make changes, optimize strategies and discover business opportunities invisible to the naked eye, and much more. In summary, knowing step by step how to create a company, will be quite easy to overcome any limitation that arises throughout the process, avoiding making mistakes due to misinformation. It will also be useful to develop an operational plan that includes the appropriate strategies to carry out the entire project.