After a start-up of a business, every business goes under different phases. Below is a list of all these phases.
Execution stage
The time has come to put everything planned into action. To execute your business plan, we have prepared for you this list of steps:
Seek financing
The ideal when starting a business is to have the resources to make the initial investment. However, the circumstances do not always lend themselves to it because the reasons for opening your own business are very varied, from doing it by choice to necessity, as is the case of being unemployed.
If you do not have savings or capital destined to invest in your own business, obtaining financing will be the indicated option, as long as it is reasonable and the level of indebtedness does not exceed the expected profitability projections.
At this point, you will ask yourself, where to get the right financing? For this, we have prepared this list with some suggestions:
- Banks: They are the most common means of obtaining financial resources; each bank manages its interest rates, as well as its financing programs for SMEs; finding the one that best suits your needs will require time and information in detail.
- Financial institutions oriented to SMEs: In addition to banks, there are other entities where you can obtain financing; these focus on small companies and are more accessible than banks, the interest is lower, but the loan amount is also lower.
- Partners: A partner is a natural person who shares both the profits and the risks of the business; he works with you to grow the project and obtain a percentage of the profits.
- Investors: Unlike the partner, it provides the capital in whole or in exchange for a percentage of the profits without working together.
- Competitions: By competitions, we refer to government programs, universities, or other entities whose interest is to promote the creation of new companies. To obtain the financing, you must prepare the business plan and enroll; if you are selected, they will provide you with the capital to start.
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If you want to know more about the factors to evaluate the risks of an investment, we invite you to read the article we have on this topic.
Proceed to the purchase or rental of the premises
In the planning stage, you chose the place with the ideal location for your business, now continue to formalize and proceed to buy or rent it.
For this process, we recommend that you have specialized advice in real estate, mainly if it is acquired through a third party and not a real estate company.
Buying land with legal certainty will guarantee your investment and provide security to your project, in addition to having the peace of mind that the property has no legal problems and the payment of taxes has been carried out.
In the case of leasing land, we have these recommendations for you that it is essential to take into account:
- Check that the duration of the contract and the renewal are ideal for you.
- Include a clause that allows you to transfer or sell the business if it does not turn out as you expected.
- Ensures the possibility of transferring the contract to the new owner in case of transfer or sale; this way, you will minimize losses.
- The contract must be clear about the agreements on construction and improvements to avoid future problems with the property owner.
- Being sure of all these points before signing the contract will avoid future problems.
Remodel and decorate your premises
In your budget, you must allocate a part of the capital for this purpose. Unfortunately, one of the most common mistakes that starters make is investing too many resources in this step.
Focus on the renovations necessary for your project’s operation, and with that as a base, decorate the place with your personal touch and according to the type of business.
We recommend hiring trained personnel to carry out the essential renovations. However, for tasks that you can do yourself, such as painting and decorating, you can request the help of family and friends who will surely be willing to do it.