Introduction to Start up Business


Decide on the project

What you want to do

I think that what you want to do already has an image that you are thinking about starting a business. However, in order to make what you want to do for the company's business, you must consider the following. Once established as a company, it is whether to survive the company and continue its business. To that end, it is (1) whether you can describe what you want to do in concrete steps, (2) whether you can earn profits by doing what you want to do, (3) what to do if you achieve achievement criteria for what you want to do.

Commercialize what you want to do

The first point, (1) Whether it is possible to describe what you want to do in a specific procedure is that if the project is not clarified in a form that other people can understand, the procedure of establishment, procurement of funds, purchase and sale I can not get the consent of others with the previous acquisition and I can not understand what my business is in the first place. Second point, (2) Whether you can earn money by doing what you want to do is whether you have a mechanism to raise profits. The project costs expenses such as company's establishment fee, initial investment, real estate / equipment cost, purchase, personnel expenses, utility expenses etc. We can not continue our business unless we can expect business revenues to at least cover expenses. Third point, (3) Whether objective business evaluation can be possible if objective "what you want to do" is changed to objective "business" is subjective if you achieve achievement standard of what you want to do and achievement. If the project can not be evaluated, it is impossible to conduct business management such as improvement plan consideration. When achievement is confirmed by business evaluation, whether to maintain it, to set even higher targets, if considering the continuity of the company, not only now but also the future prospects of the company should be considered there is.

Visualize the project

"What you want to do" is first consolidated in your head. If you are doing business as a company, it is necessary to support other people's cooperation, such as receiving funds, procuring real estate / equipment and receiving public support. We can not gain cooperation unless the business image in the head is written on paper and other people can understand it. By writing on paper, you can visualize a vague image in a form you understand yourself and make it more materialized. The way to visualize is free, but I will introduce one method.

Draw the whole picture of the project

First we decide the object of our business. If it is for sale, it is something to sell, if it is service offering, contents of service, if it is development manufacturing, its product. Write "company" in the middle of the figure and illustrate the exchange between the company and the outside of the company. Normally, the parties who are exchanging outside the company are the seller (customer) and the supplier. Write the flow of objects and money. Since revenue will be mainly obtained from customers (customers), we will clarify the customer objectives (age group, regional group, preference, etc.). In the sale of goods, we tend to consider relationships with customers only once, but we also need to devise measures to become customers as well, such as after-sales service creation. Whether it is a thing or a service, I am aware of what added value can be offered to target customers. As added value, there are satisfying feeling and convenience that you want to use again, which you think you can only get here.

If conflicting products or other companies exist, also include them in the figure. We will consider competing products and competitiveness / differentiation with other companies. If we need fund procurement, we will also fill in the suppliers. In addition to the initial cost, it is important to secure daily working capital. Suppliers and affiliated companies are also important roles. Securing stable purchase and dividing roles with affiliated companies will expand what you can do as a business. If you can describe the environment surrounding the company, visualize the inside of the company. We will design the business procedure so that the flow of products and the flow of information can be seen. This is a flow diagram. By creating a procedure, you can see where costs are incurred. If it can be described in detail, it becomes a business manual.

Create a plan

Significance of the plan

The business image in the head remains a vague image as it is. We will concretize our business by systematizing ideas written on paper. If it is put together in the plan, not only will it become not only for myself, such as clarification of business contents, tasks and goals, others can understand the business contents, others (financial institutions, cooperators, public support organizations It is also a document for getting cooperation.

Create business content

Items to consider when materializing the project contents are as follows.

  1. Concrete the project with 5W1H (where, to whom, what, how, to provide).
  2. Clarify products / services to be provided.
  3. Find uniqueity / advantage from opportunities that my strengths, ideas and business environment bring.
  4. Clarify the target customers and think about the value to offer to customers.
  5. Develop business activities (advertisement, promotion method, customer service, information provision).
  6. Think about a system that is sufficient and efficient for doing business.
  7. Think about the strategy (customer target, price range, differentiation, wi · appealing point).
  8. Combine products, customers, services, information, places, nets and consider synergistic effects.

Although it is important to ensure identity / superiority in order to make a business successful, it is important not to aim for "big hit", but to accumulate small strengths of yourself, it is a big advantage, small discrimination of your own idea It is possible to differentiate greatly by accumulating it. We will combine small uniqueness / superiority such as goods, services, offering methods, etc. to compete with total power.

Create a business plan

The company is a company that continues to do business. It is easy to understand how to continue the project and how to develop the business by planning in time series. During the establishment period, the manner of business and management will change with the passage of time in the preparatory stage, founding stage, early stage of business, middle stage, before the establishment. I will itemize the necessary elements of the company and describe future plans in chronological order. In the business plan, it is crucial to objectively do demand forecasting and not to subjective factors as much as possible. Future prospects tend to be optimistic and tend to set up sales plans that rise sharply. We consider not only the best case but also the worst case, so we plan to have no impact on the survival of the company's business in either case.

Create a financial plan

We need funds to do business. As initial fee it will cost a lot of money at startup. Working capital is necessary even after foundation. The necessary amount and the method of fund procurement will change with the passage of preparatory stage, founding stage, early stage of business, medium stage and before the establishment. Cumulative costs are divided into direct expenses and indirect expenses, and we will grasp the variable expenses and the fixed expenses for the degree of operation. Although sales are expenditures due to income, it is not a cash position that relies on the fact that there is a certain sales, but a money plan with sufficient margin to allow sufficient safety. In the cash plan, not only estimate sales and expenses, but also profit, profit margin, break-even point and calculate profit plan taking account of fluctuation in sales.

Create a regime

We will create an in-house organization chart. Initially it may be one or a small number of people, but we also include role sharing, supposed suppliers, financial institutions, advisors and so on. Organization composition is also required when preparing the articles of incorporation necessary for legal company establishment. We also make up the composition of the investors and the composition of the board of directors.

Create Constitution

To form a legal company, it is necessary to create the articles of incorporation. Since the way of writing the articles of incorporation is largely determined, it is stated according to the prescribed method. Contents will be written according to the content of the already prepared plan. By the creation, application, registration of the articles of incorporation, a company under the law is established. In the procedure, we decide company name, director and company seal.

Decide management philosophy, management goal

The management philosophy is a long-term goal accomplished by business activities, and it describes the contents that contribute to customers and society through business activities. The management philosophy is also the ultimate goal that can be gained by long-term business activities. Management targets are more concrete than the management philosophy and are often quantified by gradual achievement standards necessary to achieve the management philosophy.

Decide on business goals

Once you set your business goals, you will see what you should do to achieve your goals. Business goals include sales targets, profit targets, scale of business (scope of business, organization, number of employees), etc. A typical target is a sales target, but rather than simply setting a numerical value with a desire, it is determined by integrating it with objective calculation formulas. For example, it is the number of customers estimated from the number of potential customers in the region's commercial area, and the sales estimate based on that customer's unit multiplied by the number of customers multiplied by business hours.

Decide short-term business goals

Even if you set a goal, it will be daunting if there is no way to reach that goal. Moreover, I can not grasp the progress situation whether the current state is going smoothly toward the goal at the middle stage. The goal is to define both medium and short term. Depending on the stage of development of the enterprise, we set goals at that stage for each of the preparatory stage, the founding stage, the early stage of business, and the medium term stage before our founding. There are many things that you do not know until you start the project, but you can change the goal according to the situation. Nothing will always go in a good direction. Since there are times when it does not go as planned, we need to consider business plans and goal setting in case of deviation from forecast.

Preparation of business plan

An example of the structure of the business plan is as follows.

  1. Business contents (where, to whom, what, and how to provide)
  2. Products / services to offer
  3. Uniqueness / Advantage
  4. Target customers
  5. Value to offer to customers
  6. Sales activities (methods, services, information provision)
  7. Organization
  8. Required facility funds/working capital
  9. How to procure funds: self funds, borrowing
  10. Cash flow plan
    1. Sales
    2. Purchasing / material cost
    3. Labor costs
    4. Office costs
    5. operating expenses
    6. Other miscellaneous expenses
    7. Profit
    8. Capital investment
    9. Accumulated profit/loss
Example of cash flow planning
SubjectBefore FoundEarly Foundation Stable period
Sales010002000
Purchasing / material cost 05001000
Labor costs 0100200
Office cost100100100
operating expenses05050
Other miscellaneous expenses05050
Profit0200600
Capital investment50000
cumulative profit and loss -600-400200

Foundation preparation

Securing management resources

Management resources are people, things, money, information. Business activities can not be done without management resources. It is necessary to consider beforehand what and how to procure each. It is information that tends to overlook. Assuming the flow of information inside and outside the company, securing the necessary facilities, and conducting personnel training and training.

Secure funds

Foundation requires funds. Estimate the amount of funds necessary for capital investment in the founding plan document, the amount of working capital required at the moment. Its resources are self-funded and borrowing. Since borrowing is money which is obligated afterwards for repayment, let 's plan a repayment plan whether planned and repayable is possible. Also, since there is no credibility of the company at the time of establishment, it may not be possible to borrow the necessary amount due to credit guarantee (guarantor) or collateral issues. Utilizing the following founding support measures, it may be possible to receive subsidies, loans with low interest loans, unsecured loans, or unsecured guarantors.

Utilize founding support measures

There are various ways of supporting founding in the country, municipality, public interest group, and financial institution. I will consider utilization. Assistance mainly includes subsidies to support necessary funds at the time of establishment, low-interest loans, unsecured guaranteed loans, credit guarantee, management consultation by consultants of accounting and taxation, development of sales channels, assistance for expenses for cross-industry exchange is. Although procedures are often required to prepare various documents, the form of business may be clarified by creating documents.

Procedure of establishment

Legally, although we are establishing a company through application and registration of the articles of incorporation, in fact, it will be the first time we have a company after opening offices and shops. Let's take advantage of business consultation provided by experts provided by our founding support measures because we have procedures such as establishment of company, account opening, tax payment, social insurance etc, special knowledge of legal, tax and insurance is necessary.

Founding

Do public awareness activities

Once the company is founded, it is necessary to have potential customers, business partners, etc. know the company. We also inform the company's products and services. Well known, there are visits of workplaces related to the past, creation and distribution of flyer advertisements, utilization of the Internet (e-mail, website). Since its name recognition is low at the beginning, I will focus on sales promotion activities. Bargain sale, discount tickets, free invitation tickets, membership card issuance etc. It is also important not only at the time of establishment but also always keep on sending information. We will make full use of information dissemination tool (website, e-mail, flyer, poster, POP advertisement).

Manage business

Once you start it, I will establish a business management method. The basics is Plan Do see action. Plan and carry out the project, not necessarily but always, evaluate the state of the business. We will review improvements, review our plans and improve our business. Management is iteration of this. Evaluating the status of the project is to analyze the record of the project and analyze it. Record the business, record and organize slips, prepare accounting books, create a cash flow chart, and make it possible to always visually grasp the state of business with figures. By doing business management, you can proceed as planned, even if your expectations are not going as planned, you will be able to reach your goal by improving your business and orbiting.

Manage funds

Beginning the business, you will also purchase deposits from sales, office expenses, labor costs and other occasions occur every day. Let's manage the state of working capital by always recording daily deposits and payments so that working capital prepared beforehand will not run out. Knowledge of bookkeeping is necessary to correctly record, but even if there is no knowledge, fund management can be done by creating and recording monthly cash flow statements. Records of funds include not only management of working capital but also original data on the creation of the income statement (yearly) and balance sheet (yearly), the original data at the time of tax payment procedure, fixed costs and fluctuations If you can distinguish expenses, it can be used as original data for business analysis, such as calculation of breakeven point. Analysis results will be reflected in the management plan for the next fiscal year.

Keep small improvements one by one

Sometimes I notice problems and problems that I did not understand before starting business actually starts business. Moreover, even if the project is progressing as planned, there is the possibility of further improving the business performance. We need to constantly pay attention to issues and problems and make improvements. For example, in order to improve sales, sales = number of visitors to purchase × purchase probability multiplied by purchase unit price × repeat rate, so it is important to accumulate ideas to increase the number of visitors to the store, accumulate ideas for raising purchase probability, accumulate ideas for raising purchase prices, It is constantly trying to accumulate ideas for increasing repeat rates. It is also important to continue to transmit information. Since it is well known at the time of establishment, information dissemination to potential customers is conscious, but as time goes on, it tends to be neglected. Let's always try to disseminate information (advertisement, introduction, suggestion, expertise) through various means.