The sector of micro, small and medium-sized companies is essential for the country, since they represent 99.8% of all businesses in Mexico, according to data from the National Institute of Statistics and Geography. Despite this importance, evaluating how to start a business can be a complex and confusing process.
However, there are some methods and steps that can be considered as guides to start the venture, such as strategies, tools, assets, sources of capital and financing for SMEs, among other important issues.
How to start a business in 5 steps?
1. Define the business
At the beginning, the only thing that is necessary is to outline the company that is sought. You have to think of a product or service that is required, that solves a need and is of help to people. As a practice, stopping to observe the industries or the day to day of daily life can be useful to find a business idea.
2. Comply with legal and business requirements
It is important that, having the idea of the enterprise, a name is given and it is legally registered. Also, it is necessary to review under which legal framework the company will be born and the permits or licenses required for its operation, depending on the type of business.
3. Investigate the trends and particularities of the industry
An essential point is to understand how the market in which the company is going to develop operates. This practice not only identifies common issues and practices to consider, but also allows you to discover how a product or service can be improved and sell that solution.
Another valuable resource is to start making previous sales, generating expectation and increasing the demand for products and services.
4. Know the target audience
Also called target in advertising and marketing terms, it is important to define the market or target audiences to develop strategies and products that suit real groups of people. With a well-defined target, you can devise the commercial and marketing strategies that will position the business, which will guarantee profitability and possible customer loyalty.
5. Establish a business plan
In this document it is necessary to establish the description of the business, the business objectives, financial plan, future projection, launches and the evaluation of the implemented strategies, for their subsequent restructuring or improvement.
The importance of financing sources for SMEs
One of the big problems that SMEs can face is the lack of financing to start or continue their operations. Furthermore, by mid-2022 it had been found that the lack of liquidity caused 35% of small and medium-sized companies to close.
In this sense, among the sources of capital and financing for SMEs, the Merchant Cash Advance (MCA) has established itself as a convenient option. It is a financing based on the advance of cash for the benefit of companies in exchange for a percentage of future sales.
Pymes Capital has developed a solution to guarantee financing sources for SMEs, through MCA, with low requirements and a quick and simple process. Get to know Pymes Capital and find the financing solution that best suits your business!