Starting a Business: Essential Elements for Success

Posted on Nov 20, 2024 in Economy

Business Project Essentials

A business project involves mobilizing material, human, and financial resources, assuming risks, and developing personal skills. It requires planning and aims to develop an economic activity for profit or social benefit.

Key factors for productive economic activity:

  • Natural Resources: Raw materials, energy, supplies.
  • Labor: Manpower and time dedicated by workers.
  • Capital: Goods and financial resources needed for production.
  • Organization and Entrepreneurship: Managerial, administrative, and risk-taking capabilities.
  • Technology: Production procedures and techniques.

Entrepreneurship Variables

Endogenous factors originate internally:

  • Initiative and Capacity: Ability to face risks, negotiate, make decisions.
  • Business Idea: Innovation and activity to be carried out.
  • Self-Project: Creating employment through a business plan.
  • Material/Financial Resources: Initial investment.
  • Technical Skills: Know-how acquired through training or experience.

Exogenous factors originate externally:

  • Location: Business opportunities and environment.
  • Market Availability: Proximity to customers, suppliers, and labor market.
  • Public Infrastructure: Communication facilities.
  • Economic Climate: Favorable economic conditions.
  • Institutional Environment: Public programs and subsidies.

Business Creation Process

  1. Study important variables.
  2. Analyze feasibility aspects: location, market research.
  3. Conduct economic-financial study: investment, funding, costs.
  4. Define the business project.
  5. Decide to create the company.
  6. Choose the legal form.
  7. Complete formal constitution and government obligations.
  8. Start the business.

Business Project Viability

Analyze internal and external factors to determine success potential.

Commercial Feasibility

Market research, SWOT analysis, and marketing plan.

  • Market Research: Analyze environment, competition, and consumers.
  • SWOT Analysis: Study internal strengths and weaknesses, external opportunities and threats.
  • Marketing Plan: Define market segment and marketing variables.

Economic Viability

Check if the company will generate profits using the profitability threshold.

Affordability

Forecast needs and create an investment plan. Determine funding sources (public or private).

Business Plan

Quantify funding needs and determine funding sources. Forecast financial structure, results, and cash flow.

Project Report

Document the business project for potential investors. Include:

  1. Introduction and business description.
  2. Promoters’ profiles.
  3. Legal form and governing bodies.
  4. Location and justification.
  5. Market research.
  6. Functional areas analysis.
  7. Investment and financing plan.
  8. Calendar of steps for company creation.
  9. Global conclusion.

Choosing the Legal Form

Consider factors like capital, number of promoters, taxation, and constitution costs.

Formalities

  1. Obtain a negative name certification.
  2. Execute the deed of constitution.
  3. Apply for tax ID and complete tax procedures.
  4. Register with Social Security.
  5. Complete procedures with the local government.