FX.co ★ Six steps to create a startup

Most modern entrepreneurs plan to start their own business on the World Wide Web, since this opens up unlimited opportunities for them. However, there are many nuances that must be considered. Experts recommend you paying attention to the most significant of them.

Creating a scenario of the company's development and drawing up a business plan

The future head of the startup should start with a scenario of the company's development, an overview of how the business will develop. It is also necessary to draw up a business plan. The following questions should be raised: who will buy your product or service and why? What income can you expect? What are the average costs to develop a product? When can I reach the payback in case of attracting investment? It is better to show the scenario and business plan to experienced entrepreneurs and listen to reasonable criticism.

Study of supply and demand in the market

When creating a new startup nad reaching the market, any businessman strives to be the only one of its kind. All efforts in this case are directed to the development of the newest product. However, a certain amount of frustration can be expected here, experts warn: the market is able to give surprises, and the product will not be unique. Before creating your own company, you'd better work in a company which is the market leader of the chosen industry. This will help you to understand how the business processes are organized and on what the financial model of an organization is based.

Analysis of prospects in business

Beginners need to raise the following questions: what income can be expected? What are the prospects? How viable will the new business be? Analyzing revenues, it is necessary to evaluate the monthly, quarterly, and annual dynamics of their generating. The revenue stream should be balanced, so that there are no financial gaps and they are enough for the necessary costs.

Building a business model of the company

It is important for a businessman to figure out the functional structure of a future company. Functions include sales, creation of a product, accounting, and records management. It is necessary to analyze the algorithms for performing each function, frequency, and the time of their execution. Experts pay attention to the balance between production and sales. It should be calculated how long it will take to find customers, sell, and ensure uninterrupted manufacture. Analysts warn that poor planning leads to imbalance and collapse.

Analysis of possibilities of current and future staff members

It is important for a startup manager to correctly assess the business qualities of his staff members. Business is based on them. Hiring employees, entrepreneurs usually try to save, but this may produce negative outcomes. Work with unconcerned people and those whose work is poorly paid, is capable of destroying business. With financing difficulties, an option approach should be used, for example, sharing of profits: if an employee attracts a lot of customers, he will get from 20 to 50% of the company's profits.

Product cost calculation

Price fixation is a matter of critical importance. The possibility of doing business depends on it. According to experts, it is important not to make a mistake and find a balance. The price consists of two components: costs and the rate of return. For Russia, the rate of return should be at least 20%, since real inflation in the country reaches 9-11%. If the market does not allow you to put such a price, do not start a business. Making the analysis, you should take into account not only product cost production, but also the procedural expenses aimed at maintaining the company.