Whether you are looking to start a new business, or you want to take over an existing one, you need to follow some important steps. This article will guide you through some of the important aspects of the process, including conducting market research, drawing up financial forecasts and choosing a legal structure.
The creation of businesses is a fundamental element in the development of market economies and provides opportunities for millions of individuals. While there is a rich literature on individual success stories and analyses reflecting convenience samples, little systematic information exists about the basic features of the entrepreneurial process and its outcomes.
Some theories indicate that starting a company is the result of a rational decision process in which the entrepreneur’s knowledge about business management is decisive (Cardozo Crowe Reference Cardozo Crowe and Paolo2010). Others have focused on personal factors, such as the perception of opportunities or the fear of failure. More recently, authors such as Stevenson (Reference Stevenson2000) have emphasized the importance of socialization in the process of becoming an entrepreneur.
Lastly, there is no guarantee that the business idea you have will be unique or revolutionary. Plenty of the world’s biggest companies came into markets with already developed players and outperformed them. For instance, Apple entered the mobile phone market with an innovative product that was not revolutionary, but improved on the existing technology in significant ways. It is therefore crucial that you thoroughly analyse the existing competition to ensure your business will be a good fit.