Industry, Trade or Services? Which branch of activity, the consumer market, competition and other aspects related to business activity.
Many companies close their doors already in the first years of life, worse still is when it does not arrive if you want to complete a birthday. What are the reasons that drive a company to failure? Many entrepreneurs and former entrepreneurs are very aware of the answer to this question, however, those who are planning to open their first business may need some guidance.
Below is a summary of a manual that has been published on the steps to open a company:
Am I really an entrepreneur?
– Have initiative
– Seek new opportunities
– Take risks, as long as calculated
– Requires quality and efficiency
– Is persistent
– Is committed to your initiatives
– Seeks information
– Establishes goals
– Is able to systematically plan and monitor your business
– Has the power of persuasion
– Is able to form a network of contacts
– Is independent and self
– confident – Has the support of his family
I want to act in which branch and sector?
Here are the main lines of activity:
It transforms raw materials, manually or with the help of machines and tools, manufacturing goods. It covers various sectors of activity, from the handicraft to the production of electronic instruments, through graphics, shoes, clothing, furniture, leather, locksmithing / metallurgy and mechanics, etc.
Sells goods directly to the consumer – retailer – or purchase from the producer to sell to the retailer – wholesaler. Examples of sectors of the industry are: vehicles, fabrics, fuels, hardware, clothing, food, dairy products, haberdashery.
They offer their own work to the consumer. This is the case of laundries, hospitals, schools, etc. The service can be provided in the sectors of food, transportation, tourism, health, education, vat tax registration, and leisure, among others.
What kind of business do I want to open?
Franchise is the system whereby the franchisor grants the franchisee the rights to use his trademark or patent and the exclusive or semi-exclusive distribution of the products or services registered by him. It is common for the franchisor to also transfer the technology of deployment and business administration, for payment.
By involving the whole family, while benefiting from union and loyalty, it can be contaminated by family relationships. It requires knowledge of management tools, planning and monitoring.
The biggest opportunities are in the following sectors: accounting, cosmetics, food, clothing, advertising, computer graphics and consulting in general.
For Sebrae, the biggest advantage of Internet business is that companies do not have to be giants to compete because it can be sold to customers anywhere, 24 hours a day, at reduced costs.
But this activity has its own logic and requires specialized knowledge. It is necessary to have a business structure and especially to take care of logistics, which is the science of getting the right product, in the right quantity, place and time, with the minimum cost.
In this type of company, the independence is total and the risks are higher, although the costs may be much lower. Even small, no planning item should be missing.
Here, in addition to planning, clear rules need to be established. The social contract must be drafted carefully to avoid future wear and tear. It is advisable to look for a lawyer to formalize the company.
After having in mind what to follow to open a company remember that every business is small or large needs to plan, a good planning is that it will lead you to success, following some planning requirements will only benefit you, knowing and researching is a good start, such as:
The branch of activity – Research everything you can about the branch in which you intend to act.
The consumer market – The customer is the target of the products and / or services and should feel fully served, when planning the company, clarify who the customers will be and what they expect. Worry about the difference that the product and / or service will make for these future customers.
The supplier market – Consider: physical distance, freight cost, references, quality, supply capacity, price, term, form of payment and delivery. Define the best suppliers and, if possible, plan to partner with more than one supplier per product.
Competitors – Pay attention to: quality, price, finish, durability, functionality, packaging, size, service, access and presentation of the product or service, and check what can be improved.
Defining some questions also includes planning to open a company:
- Your product or service in detail – How it will be used, what the packaging, sizes offered, colors, flavors, etc.
- The location of your business – Base your analysis on concrete data, such as pedestrian and vehicle flow, future customer buying habits, etc. The right spot will depend on some variables such as ease of access, parking, visibility, target audience, competition, security and costs.
- The operational process – What are the stages of manufacturing / selling / providing services? Who will do what, with what material, with what equipment and when? Who has knowledge and experience in the field: you? A future partner? Or a hired professional?
- The volume of production, sales or services – Consider the need of consumers; the provision of trained personnel to produce / sell the product or provide the service; the capacity of machines, facilities, etc .; financial resources; the availability of raw materials, packaging, etc.
- The need for personnel – Identify the number of people required and what qualifications they should have.
- How to advertise your product / service – When in doubt, use a company or professional to reduce the risk of loss of resources.
Estimating expenses and prices is one of the most important steps in starting a business.
It’s time to do the financial analysis. Calculate:
- Fixed investments – What capital is needed for the implementation (acquisition of the point, machines, equipment, furniture and utensils, etc.)?
- Fixed costs – Rent; counter; wages, water, electricity, telephone, taxes, insurance, etc. It is the expenses that, selling or not, you will have to pay.
- Variable costs – They vary directly with the amount of sales, such as the raw material, for example. Also check the taxes that directly affect the sale.
- Working Capital – You need to have cash in hand to pay suppliers, rent, employees, etc. until the company starts to bill. Spot sales, longer lead times to pay suppliers, and smaller inventories lessen the need for working capital.
- Cost of the product – Adding all costs and dividing this amount by the quantity of products produced or sold or by the number of services provided, you will have the unit cost.
- Sales price = Cost of the product + cost of marketing + profit margin. Many companies do not calculate their costs accurately, which masks the profit, causing problems.
- Billing – Multiply the total sales forecast by the unit price.
- Operating profit = Billing – total costs.
- Reserve fund – Have a reservation to prevent the company from wrecking because of unforeseen events that have nothing to do with its viability.
- Pro-labore – Calculate how much you can withdraw per month without harming the company.
And finally, the most important and also the most difficult step, legalizing is the last and most important step, because if your paper is not registered it is the same as if it did not exist, and then you would be moving an illegal business.
Some steps to register your business
- Advice – Hire a specialized professional to draft the social contract and advise you in the legal framework of the company. Here’s how to register commercial and industrial companies.
- Preliminary site consultation – Check with the regional administration or city hall if the company can operate at the desired address.
- Name – There can not be two companies with identical names in the same industry and state. Look at the business board or the registry of legal entities if you can use the name you want.
- Registration at the Board of Trade – It is done after the approval of name and address.
- National Register of Legal Entities
- Fire Department Permit – City halls usually require inspection and inspection by the Fire Department, which will issue a license.
- City Hall Permit – Generally granted by the Urban Development Secretariat.
- State registration – Negative Certificate of Debit must be presented, from the holder or from the partners, to the State Public Treasury.
- Enrollment in Social Security / National Social Security Institute – Registration is made simultaneously with the registration of the company in any of the mentioned institute.
- Authorization to print fiscal documents – Requested to state revenue agency.
- Employee union membership – Search for the federation of industries or commerce in your state.
- Others – Depending on the activity and location of the company, other records and inspections will be required, such as the Sanitary Surveillance and the Health and Environment Secretariats.