Starting your own business is a big challenge, contrary to what many “young investors” might think. Creating a business is a long journey that requires study, time and reflection, crucial aspects that are often neglected.
This imprudence frequently leads to pitfalls and, consequently, failures. If you aspire to start your own business, here are the pitfalls that are imperative to avoid to ensure success.
Avoiding market research can be a fatal mistake!
You might think you’ve found the perfect idea for your project, which is a great first step. However, is it perceived in the same way by everyone?
Will the added value of your future business be obvious to users of your services or consumers of your products?
To clearly answer these questions, market research is essential to objectively assess the potential of your idea. Do not hesitate to ask a professional to carry it out.
Rushing to launch your project is a lesson to be learned
Creating a business is not a process that can be accomplished in a few days. Careful planning is required, taking into account the structure, market, competitors, audience, products or services to be offered, etc.
Building and launching the project requires considerable time and effort to ensure the success of your business. If you are lost and overwhelmed, turning to a service provider seems like a wise idea. The Manager’s Blog stands out as a major ally for premium and personalized support.
Choosing a legal status too quickly
The hasty choice of a legal status can have repercussions on your entire project (capital, partners, market, organization, etc.). EURL, SARL, micro-enterprise, SPA, and others; several legal statuses are available to you. To choose the one that best suits your aspirations, consult a lawyer specializing in business law, a chartered accountant, or a business creation advisor who will be able to guide you.
Lack of funds
Lack of funds can jeopardize your business. Depending on the size of your project, be sure to provide the necessary funds. In case of insufficient financial resources, consider external financing by requesting a loan from a bank or credit institution. Note that these establishments generally do not finance more than 70 to 75% of your project after having studied it.
Underestimating the WCR (Working Capital Requirement)
Underestimating the Working Capital Requirement (WCR) is a common mistake. Evaluate this carefully, taking into account all cash expenses at the time of launching your business, including Value Added Tax (VAT), tax debts, inventory, supplier debts, trade receivables, etc.
Once again, it is recommended to call on a professional for the management and evaluation of the BFR.
Starting a business requires careful consideration and study to avoid the pitfalls leading to failure. Before you get started, make sure you have sufficient funds, call on professionals for the necessary studies, and take the time to choose the legal status wisely.
2023-12-12 12:22:43
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