STEP 1
Identify Your Business Idea
If you’re thinking about starting a business, you likely already have an idea of what you want to sell, or at least the market you want to enter. Do a quick search for existing companies in your chosen industry. Learn what current brand leaders are doing and figure out how you can do it better. If you think your business can deliver something other companies don’t (or deliver the same thing, only faster and cheaper), you’ve got a solid idea and are ready to create a business plan.
Refine your business idea
Why this business
Target customers
Business name
One of the best ways to determine whether your idea will succeed is to talk to people you know. If it’s a business idea, talk to co-workers and colleagues. Run personal ideas by your family or friends. Don’t be afraid of people stealing your idea. It’s just not likely. Just discuss the general concept; you don’t need to share details.
STEP 2
Write Your Business Plan
Once you have your idea in place, you need to ask yourself a few important questions: What is the purpose of your business? Who are you selling to? What are your end goals? How will you finance your start-up costs? These questions can be answered in a well-written business plan.
A lot of mistakes are made by new businesses rushing into things without pondering these aspects of the business. You need to find your target customer base. Who is going to buy your product or service? If you can’t find evidence that there’s a demand for your idea, then what would be the point?
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The Executive Summary – Problem your business solves
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Company Overview
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Tagline – a one-sentence elevator pitch (what does your business do)
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Marketing Plan
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Financial Plan
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Financial Projections
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Target Market
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Product and Services
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SWOT Analysis
Conducting thorough market research on your field and demographics of potential clientele is an important part of crafting a business plan. Market research helps you understand your target customer – their needs, preferences and behaviour – as well as your industry and competitors. Many small business professionals recommend gathering demographic information and conducting a competitive analysis to better understand opportunities and limitations within your market.
A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it.
STEP 3
Assess Your Finances
Starting any business has a price, so you need to determine how you’re going to cover those costs. Do you have the means to fund your start-up, or will you need to borrow money? If you’re planning to leave your current job to focus on your business, do you have money put away to support yourself until you make a profit? It’s best to find out how much your start-up costs will be.
One way you can determine how much money you need is to perform a break-even analysis. This is an essential element of financial planning that helps business owners determine when their company, product or service will be profitable.
Many start-ups fail because they run out of money before turning a profit. It’s never a bad idea to overestimate the amount of start-up capital you need, as it can be a while before the business begins to bring in sustainable revenue.
The formula is simple.
Fixed Costs / (Average Price – Variable Costs) = Break-Even Point
STEP 4
Register Your Business
Registering your business in the right jurisdiction that would benefit your overall business objectives is utmost crucial. Having a profitable business is great, however you do not wish to spend all the profits on operational expenses and paying tax.
Take your time to get to know the pros and cons of different business entities and whether if your business needs to be registered in your country (onshore) or offshore. This is not an area you want to get wrong as both has different tax framework. Generally, company registered in an offshore jurisdiction is taxed way lower or entirely tax-free. Speak with our consultants, if you want to find out how to qualify for lower corporate tax rate as well as to determine if your business requires a business license to operate.
Spend some time getting to know the different types of jurisdictions that may be suitable to register your business. If you need help, we’ve got a list of offshore jurisdictions for your consideration.
While incorporating an offshore company can be more expensive compared to setting up a local company, it’s well worth the money as it offers so many other benefits including it saves one so much more tax!
STEP 5
Determine Your Legal Business Structure
Before you can register your company, you need to decide what kind of entity it is. Your business structure legally affects everything from how you file your taxes to your personal liability if something goes wrong.
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Sole proprietorship
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Partnership
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Corporation
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Limited liability company
Ultimately, it is up to you to determine which type of entity is best for your current needs and future business goals. It’s important to learn about the various legal business structures that are available. If you’re struggling to make up your mind, it’s not a bad idea to discuss the decision with our consultants.
STEP 6
Choose the Right Business Bank
When choosing the right business bank, you will need to ensure it is able to support your business objectives.
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Does it offer a stable and user-friendly internet banking service?
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Does it support local and international business transactions?
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Does it deal in the currency(s) that you want?
Ultimately, choosing the right bank for your business comes down to the needs of your business. Identifying your banking needs can help narrow your focus to what you should be looking for. Get in touch with our consultants to find the best bank for your business.
