Business creation: where to start and how to go about it?

 

A project leader does not start without thinking about the creation of his company. And we can see the business dynamics changing quickly and shifting to digitalize and getting websites through web design companies. A more or less long reflection period is essential to embark on a project in good conditions beforehand. The business creator must question himself at several levels to validate the project's coherence as a whole.

Step 1: is your project idea realistic and feasible?

You have to first create the concept to make it a real project before starting a business development. In this phase, it is interesting to talk to several people about your idea. This is particularly important if you are targeting a sector other than the one in which you work. For innovative ideas, care should be taken to properly protect the concept before unveiling it.

The objective is also to define your future activity's operational functioning: what are the necessary investments? What are the offered goods and services? In which sector will the company be established? How will it be supplied? Who are the customers, and how will you communicate? Do we need staff? do you need a commercial space? ...

Market research and competitive analysis are used to assess the reliability of your business project. In your geographical area, is there enough room for your future business? Can you offer an offer that is consistent with what exists?

Step 2: Can you launch a project with your financial situation?

It is important to examine your finances. What's your salary today? How do you need your money? What is your financial contribution potential to the project?

Then, you have to set a maximum the period from which you have two options:

You can either pay yourself enough for your new business and continue your operation,

Either not, and you have to find a new gainful activity (a new job) alongside your business or shut down your business.

To determine this period, one must be careful. It all depends on your resources and financial needs and your ability to find a suitable new job, depending on your qualifications and experience.

If you have just lost your job, are receiving unemployment benefits, and have a project, you have a period in which you can reasonably afford to start a new activity.

The situation can be a little more complicated if you have immediate financial needs (a loan to be repaid each month, for example). You have no certainty about the financial aspects of your project. The security of a contract of employment has no counterpart in this case. Depending on your availability, you can still try to test your project in parallel.

Phase 3: Can you start your new company?

Besides the financial aspect, you must also analyze your project's compatibility with your situation at other levels.

First of all, if you are currently, under an employment contract, you should check that you cannot be subject to a temporary non-compete obligation. You must also check the time required to leave your current position (notice period, transition time, etc.) and the possible termination terms.

Then you need to check that you have the necessary qualifications and training to perform the intended activity. Specific authorizations for an operation are often needed.

Finally, we must also ensure that the project can be implemented without difficulties. For example, have you found a potentially interesting room? Will you be successful in hiring the right staff?

Phase 4: You believe your company is ready to start?

The study of personal constraints and requirements related to your project is essential for all project leaders.

Generally, the creation of a business turns everyday life upside down. You will undoubtedly have different working hours. Your project may generate periods of stress; you may be less available to your loved ones ...

Then, your personality must be adapted to the conduct of a business creation project. You must present an entrepreneur profile. It is important to be well organized and at ease in dealing with third parties. If you plan to hire, you must have a minimum of managerial qualities. Other qualities specific to your profession are then necessary.

Regarding the future business, you must be aware of all the tasks you will have to take care of: business development, the exercise of the activity, administrative management ... First of all, you're going to have to do something. Creating a business is not only working for yourself; you have to manage everything (commercial negotiation, quotes, invoicing, accounting, purchasing management, inventory management, personnel management, etc.). Take entrepreneurship courses if necessary.

Step 5: is your project profitable and financially balanced?

The realization of the financial forecast is an important phase for the business creator. In this document, you will financially translate your business creation project over your first years of activity (three maximum). The forecast comprises several financial tables, including the income statement and the cash budget, which are particularly important. The first allows you to calculate your profitability, and the second to check the financial balance.

Thanks to your forecast, you can measure your financing needs, check that the resources mobilized for the project make it possible to obtain a financial balance, and calculate your future activity's potential profitability. This is also a good time to list all the expenses you will need to pay.

This last point is important; you have to ensure that the activity allows you to remunerate yourself sufficiently once your expenses are paid. Without sufficient profitability, the project is risky. It is then preferable to rectify it (if possible) or to move on to another project.

To formalize your work, you can write a business plan. You will first discuss your project's economic aspects (the market, the business model, etc.), then the financial aspects (income statement and forecast balance sheet, the budget of Treasury…). In this phase, professional assistance is preferable.

If your financial projections are satisfactory, you can then continue with the implementation of your project. For the rest, we invite you to consult these files:

The steps to start a business

Business creation

Don't you know where to start your business?

If you have an idea for starting a business, want to develop your project but don't know where to start, we recommend that you be accompanied by a professional in business creation.

Several organizations can help you with your project (chambers of commerce and industry or chambers of trades, management shops, associations supporting creation, etc.). Then, you can also meet an accountant sensitive to the problems of starting a business. Generally, you will not be asked to pay for the first dates until nothing happens at the project level.