How To Start A Business From Scratch?

Knowing how to start a business is not an easy task. Opening a company requires several administrative procedures but, even more important, several planning processes that allow the company to take off.

We will talk about each other in this article. The objective is to know where to start a business from scratch, step by step, and open a limited company or SL.

Here we go!

Define The Nature Of The Business

The first thing that any entrepreneur has to be clear about is what service or product they want to offer.

In this sense, we must try to follow two points. The first is that we are passionate about the sector we want to focus on. We will dedicate a significant number of hours to it, and if not, it is straightforward to become discouraged.

The second point is that there is room for us. What do we mean by this?

There is room in the market for a new competitor, but our product or service has a differential value that is interesting enough to create its niche.

If we go to a saturated sector and our competitors offer the same as us, but cheaper / with higher quality and already known, we better dedicate ourselves to something else.

One of the critical answers to starting a business from scratch is whether our product or service meets a need in the market.

This does not mean that this need cannot be created, but the first point in any entrepreneurship process is making a business and feasibility plans.

The Business Plan And The Feasibility Plan

The business plan is a document in which all aspects of the company will be detailed. For example, sources of financing, goals, and ways of measuring objectives, company statutes, human resources, strategies, opportunities, competitors and differential value, etc …

We cannot forget the SWOT analysis, detailing the service or product or a contingency plan in unpleasant scenarios. It is a document that is usually presented when seeking financing, generally accompanied by a feasibility plan.

The viability plan, for its part, is more focused on the economic section and focuses on the company’s chances of success. To achieve this, the product or service is examined in the market, its sales projection, and the manufacturing and marketing costs. Once we have both plans ready and have sufficient capital, we will have to deal with the administrative procedures.

Procedures To Create A Company

The first step is choosing a name. To ensure that it is free, we must request a negative company name certificate from the Central Mercantile Registry. We can put several alternative names, just in case, the first one is unavailable.

You can do it telematically in the previous link.

The following procedures can be carried out directly at a PAE or Entrepreneur Service Point. Here, we can also check the aid available to the creation of companies that we can request.

While we carry out the next step, we can prepare the statutes and the company’s deed of incorporation, which will have to be signed before a notary public.

Raise The Starting Capital

Once we have the company’s name approved by the Central Mercantile Registry, we can go to a bank to open an account in its name.

With the certificate of the Mercantile Registry, we can open an account in the name of the company and contribute the initial capital, currently € 3,000, among all the company’s partners.

The next step is to sign the company charter at the notary’s office, for which the following documentation must be provided:

• DNI of all founding partners
• Declaration of external investors (if any)
• Negative certificate of company name
• Society statutes
• Bank certificate of the initial capital contribution

Obtain The Definitive NIF Of The Company

Once the company charter has been obtained, we can request the provisional NIF. For this, the following documentation must be delivered to the Tax Agency:

• Registration in the Economic Activities Tax (IAE)
• Copy of the company statutes
• Copy of the applicant’s DNI
• Model 036 correctly filled

After delivering this documentation, the Tax Agency will provide us with the provisional NIF and the identification cards of the new company.

The next step is to register the company in the Provincial Commercial Registry that corresponds to its registered office. To achieve this, you must provide these documents:

• Copy of the provisional NIF
• Copy of the company statutes
• Negative certificate of company name

Finally, with the certificate of registration in the Provincial Commercial Registry, we will pay the Tax on Sworn Legal Acts. After payment, the Tax Agency will provide us with the company’s final NIF.

Although the entrepreneurship process has already culminated with the company’s creation, other steps will be missing, such as registering as a self-employed company or registering the brand that you are going to use.

Optimize Expenses And Save Costs

Once the administrative aspects of starting a business from scratch have been detailed, it is time to start it.

From grouping purchases in a purchasing center to using private labels, saving on paper printing, or renegotiating telephone or electricity supplies. To carry out an audit, at least one year of activity is required.

Other aspects such as occupational risk prevention plans, unification of the waste system, unification of the medical staff, etc.… can also lead to significant annual savings, as we can see in our success stories.

In the first moments of a company, it is most necessary to gain muscle and spend as little as possible.

Making it profitable and having the initial investment covered can be a slow process, but it is our responsibility as entrepreneurs to take advantage of all available opportunities. You have to keep your eyes wide open.

Make Employees Happy

If we have employees in the company, we also have to keep them motivated and willing to give 100%. Not only is this a recruiting problem, but even the best staff also need the right incentives.

One of the most exciting aspects is the flexible remuneration, which does not increase the salary mass of the company and allows employees to save taxes. It is also interesting to check the employee benefit programs and, in general, everything related to emotional salary.

Allowing flexible hours or the possibility of teleworking on certain days of the week, for example, does not entail any cost (and may even entail savings in the case of teleworking). Nevertheless, they are two of the aspects most valued by employees.

There are plenty of options to improve employee satisfaction and retain talent. In a company that has just started, talent retention is essential for it to work without wasting time (and money) on new recruitment processes.

Be Flexible And Adapt To Change

Finally, we do not want to miss the opportunity to give advice when it comes to knowing how to start a business from scratch, and that advice is to be flexible.

Starting a company is a complex process beyond the procedures and documentation because we live in a complex ecosystem with a hyper-dependent global economy in continuous transformation.

At great idea may end up being obsolete in no time. For this reason, we must be willing to adapt the business vision that we had in the beginning to the new market circumstances and technological innovations.

Similarly, what seemed like a great idea in the business plan, supported by the numbers in the feasibility plan, may not work as expected later.

Absolutely nothing happens. In the entrepreneurial character, it is to get up after each fall. Falls always come. You have to be prepared to deal with them, work hard, and re-plan a new idea.

Also Read: Seven Keys To Motivating Your Team