What should you regulate before starting your own business?

From an idea that has to be transferred to a successful business model to the right legal form, the range is enormously wide.Therefore, I would like to limit my answer to 9 parts that focus on the business model:

  1. You should be clear about your strengths and weaknesses.

What can you do well yourself and what you can’t? This also raises the question, which are the tasks ahead and which of these are standard and which are key competences for your business start-up?

  • A company depends on a wide variety of resources.
  • Starting with employees, financing, technologies, office and possibly laboratory equipment, etc. Become clear about which internal and external resources are to be selected for the company in order to achieve an optimal concentration on the customer benefit and at the same time achieve the trade-off with the available finances

  • In order to achieve a certain speed in the development of e.g. product development, marketing and sales channels, approaches for partnerships at various levels can be found.
  • In my view, the most important point is to identify a clear customer benefit that differentiates itself from competition.
  • Thousands of new websites/companies are being created all over the world every day and everyone is convinced of their idea… what is special? Time savings, cost reduction, quality features…?

  • In which customer segments do I want to be active and do I have the right product for it?
  • A methodological analysis of the customer groups that are differentiated or assigned according to certain factors, e.g. after purchase graduation habits, demographic, socio-demographic and psychological characteristics so-called customer typologies, by life cycles or life-phase model and as social reference groups

  • A company can use different sales channels.
  • The sales channels can be roughly divided into two groups. The direct and indirect distribution channel.The channels are divided according to product characteristics into:

    1. High and low price?
    2. Needing explanation?
    3. Commodity standard product?
  • In the case of start-ups, in addition to the start-up costs and start-up investments, the running costs for maintaining the business must also be taken into account.
  • Most people can calculate the cost of starting up well, but it is often wrong to estimate sales, which are set far too high. Because often the running costs can only be covered by the first sales after a few months or even years.The company phase, which is not yet profitable, must be financed accordingly.These financing gaps and liquidity bottlenecks need to be overcome.

  • With a risk analysis and systematic tracking and reduction of risks via tool, you get more transparency into your risks.
  • The alliance publishes an annual overview of the top corporate risks.

  • Explore an appropriate price/performance ratio.
  • The willingness to pay depends very much on how saturated the market is already with corresponding products or services. The customer’s willingness to pay means an appropriate price/performance ratio from the customer’s point of view. Not from the seller’s point of view! A competitive analysis helps to orientate oneself by analyzing comparable products and by putting the price-performance ratio into relation to the own product.

    You can find an exact guide here or you can get advice from a founder coach

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