Although there is a lot of information on how to start a business , starting from scratch is always a challenge to face. Knowing what the phases of entrepreneurship are is always an advantage to know what to expect at all times.
Although it may give us a bit of vertigo at the beginning, undertaking in the digital age has nothing to do with doing it a few years ago. The range of current possibilities is enormous, starting with financing for emerging businesses, and even ending with credits for exclusively entrepreneurs or credits for women entrepreneurs .
It is also common uncertainty about whether they will really be able to meet the expenses or the initial investment to start their business or if with an entrepreneur loan they will have enough.
When starting a business it is necessary to go through a series of phases that are common to any type of activity. These phases start with an idea and progress through the next levels until the business is created, grows, and truly succeeds.
What are the steps to start a business?
Advancing through the stages of entrepreneurship will depend on the experience we have as entrepreneurs in this field. In this way, we will already have accurate information about what we can or cannot do in each phase. If, on the other hand, we have never run a business but we have a vast technical knowledge of the sector, we will have to face different situations that can overwhelm us and destroy the project.
In both cases there is a common point, which is an idea and the desire to learn. The difference between each of the possible situations will be the starting point.
These are not the only two options, since we have been able to detect an unmet need and launch ourselves into an unfamiliar sector. In this case, we must spend a lot of time studying and analyzing the sector to avoid missteps and, above all, the loss of money.
The five phases of entrepreneurship
As an entrepreneur we can be in one of these three cases:
- The moment we want to leave our current job because we want to have our own company.
- When looking for a source of income because we are unemployed and we think that our own business can be a great idea, despite not stopping looking for a new job.
- When we want to start something of our own, but we do n't know what business to start or how to start a business.
These situations correspond to the first phase, there are many entrepreneurs who do not overcome it since they need courage and bravery, in addition to an economic boost.
2. The landing of the idea
When we are entrepreneurs and we believe that we have a business idea, it is expected that, above all, it has a good profit potential.
During this period we give shape to the idea and increase our level of motivation, energy and enthusiasm, although sometimes this can work against us because the idea does not turn out to be as viable as we think. At other times we can find ourselves in the position of choosing between several great ideas that, for different reasons, we are unable to carry out.
One of the most common obstacles among entrepreneurs is liquidity to get the business going . Although it can also be fear of leaving a good job or not being sure of the knowledge that one has in this regard. For these reasons, many entrepreneurs do not take action.
If for various reasons we cannot access a loan for entrepreneurs in our usual bank, we can always resort to private capital in any of these phases.
3. The critical stage
Yes, definitely, we have started the journey of our project, we have already started.
At this moment, both we and our closest relatives are expecting a succulent profit, since the idea has enormous potential. But one year is usually not long enough for the company to break even , that is, for the income to exceed the initial investment.
Throughout this phase we will go from being simple entrepreneurs, highly motivated and very excited, to young entrepreneurs. There are many challenges that must be addressed on a daily basis and decision making is constant. Some will be routine, with hardly any significance, and others will be decisive for the future of our company.
It is important to know what the statistics say at this stage. Half of all startups die at this point . But that does not mean that ours is going to be one of those that does not succeed.
Once we have passed the first year, which is usually full of ups and downs, it is a sign that at the moment we are doing a lot of things well. It is time to do a new 4-year planning in order to consolidate the business .
During this period we need to consolidate the services and products we offer, the relationship with the suppliers, the price and the quality we want. It is a stage to form a work team for the company and consolidate a portfolio of profitable clients with whom we like to work and who are satisfied with our products and services.
During this stage we are completely focused on the growth and development of the business. Of the 50% of companies that manage to survive their first year of life, only 10% are successful in their fifth year. Despite this, some companies that exceed 5 years have serious liquidity problems .
For this reason, at this time it is necessary to reinforce the control of the business and delegate certain tasks, the entrepreneurs always taking charge of those that produce the greatest value. The only thing that we will not be able to delegate is the organization, planning, direction, coordination and control.
After these first five years, we have to make sure that the company has not entered into a crisis and that the profits obtained are at the level of risk and the type of investment required.
For those moments of lack of liquidity, private equity loans are the best option, since, with only a mortgage guarantee , we can access the financing of large sums of money and advice tailored to our business.
These are the five fundamental and necessary phases that must be passed when starting a business today.