Setting up a business cannot be improvised. It requires a good method, commitment and good preparation. Whatever your project, there are a few essential steps to successfully create your own business.
The benefits of starting a business
Setting up your own business has real advantages. One of the advantages of setting up a business is that you gain independence and freedom. You will become your own boss and you have complete freedom to choose your business sector. You will also be free to choose who you work with. Setting up a business also allows you to gain experience and performance, especially in project management, negotiation and managerial skills.
However, not everyone can run a business. In particular, administrative and human resource management skills are essential to become a good business development manager and ensure the success of the project. Follow this link if you want to get tips on how to be a successful business manager.
The steps involved in setting up a business
Different steps are necessary for a successful start-up project.
Start by clarifying your idea and defining your project objectives. It is important to choose the right sector of activity for your business. Of course, when choosing, you should take into account your skills, know-how and qualifications. It is also advisable to choose a more profitable sector of activity to get your business off to a good start.
The second step is to write the business plan. The business plan is a document presenting the project. This document should contain the objectives of the project, a detailed description of the project or product/service offering and the financial forecasts.
Once the project is well defined, assess your financial situation and/or find financing for the activity. A project to set up a company can be financed by the entrepreneur’s personal contribution and the contributions of the partners or shareholders. It is also possible to apply for public grants and subsidies or bank loans to start your business.
Choose the legal form of your business, your social status and your taxation. The choice of legal status depends on several criteria such as the nature of the activity, the number of people in the company, the amount of capital, etc. There are many possibilities: sole proprietorship, sole trader with limited liability, private limited liability company, one-person limited liability company, simplified joint-stock company, single-member simplified joint stock company, limited company and partnership. A private limited liability company must, in particular, have between 2 and 100 partners. The one-person limited liability or private limited liability company status is reserved for any company with only one partner. A public limited company must have a minimum share capital of 37 000 euros.
When it comes to the location for the future business, it is possible to set up the registered office in the founder’s home in order to minimise expenses.
The importance of the business plan
It is necessary to draw up a business plan when setting up a company. This document is essential to the success of the project. This step is not to be taken lightly.
There are certain rules to follow when writing the business plan. The document must include three parts: the presentation of the product and/or service or the business creation project, the presentation of the entrepreneur and his or her team, and the financial forecasts. The third part should detail the company’s financial needs and the project’s break-even point.
The business plan has many advantages. This tool serves to clarify the project. It allows the project to be clearly defined and the action plan for its realisation to be defined. It also makes it possible to measure the profitability and viability of the project. Writing a business plan can also make it easier to find financing for your business. The business plan will serve as a decision-making tool for future partners and shareholders. It is therefore essential to draw up a good business plan to convince your many contacts.
How to draft the statute of a company?
The drafting of the statutes is also one of the essential steps in setting up a company. This is a compulsory notarial act for any company. The articles of association define the operation and all the rules governing the future company. This document is essential to have a legal existence and to regulate the activity.
The drafting of the articles of association depends on the legal form chosen. The articles of association of a company can be drafted by the founder of the company, a lawyer, a notary or an accountant. A number of compulsory items must be mentioned in the articles of association, such as: the company’s name, its legal form, the address of its registered office, the amount of each partner’s or shareholder’s contribution, the amount of the share capital and the nature of the company’s activity. Once drafted, the articles of association must be signed by the entrepreneur and the partners or shareholders. The document must then be filed with the clerk of the Commercial Court.