Entrepreneurship: what you need to create a business

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Entrepreneurship is a way to identify a problem in a particular area of the company and invest in a solution through a business plan in order to generate innovation within a niche market.

Certainly, being an entrepreneur these days is a great way to gain your professional independence, complete personal goals and earn a good income.

Therefore, entrepreneurship in Brazil only tends to grow. According to the newspaper Estadão, 76% of young Brazilians want to start entrepreneurship at some point in their lives.

In 2020, the country registered the largest number of entrepreneurs in history. In the first nine months, the number of individual microentrepreneurs (MEIs) in the country grew by 14.8%, compared to the same period in 2019, reaching 10.9 million records.

However, starting your own business cannot be a decision taken overnight, without a long plan.

It is extremely important to have a sense of the market you intend to enter, how to get the project off the ground and how not to be fooled by false promises of rapid growth.

So, in this article, you’ll understand everything you need to enter entrepreneurship safely and effectively.

Is entrepreneurship a good idea?

Some people believe that entrepreneurship is not a good idea, as it is an uncertain area. But, according to Sebrae, among the five countries that make up the BRICS (Brazil, Russia, India, China and South Africa), entrepreneurship in Brazil has the best conditions.

Despite all the difficulties that entrepreneurs face, especially in Brazil, control over their own decisions is one of the strongest reasons not to give up. It is up to you to decide how you should act, whether you should experiment and take risks.

In addition, in your own business, you are the one who decides how you want to work, how you want to dress, what the processes are, which customer profiles you want to serve and where without the worries of a number of hours established by CLT contract.

Another positive point is that, when becoming an entrepreneur, you can decide who will work in your business. With this, the chances of having unpleasant surprises, such as incompatibilities of values ​​and engagement, decrease.

Entrepreneurship is also a constant way of learning, as in addition to the technical skills you already have, you will need to seek knowledge in administration and people management. As the market is always in constant update, it is necessary to study every day.

For those who have their own business, the chances of thriving and being successful are higher. All your efforts, experience and energy will be focused on the company itself. If you’re tired of giving your best and not having the financial return you want, a venture is the best option.

How to get started in entrepreneurship?

First, before thinking about structuring your business, it is essential to reflect if you are sure of the decision.

The main factors to consider are: do you have enough money to invest and are you willing to work harder than a conventional job, at least initially? Keep in mind that a firm needs a lot of dedication and time invested.

So have no doubts that you are willing to take certain risks when entering the world of entrepreneurship.

If you prefer to learn more interactively, check out the infographic we’ve prepared:

Choose what you want to do

The possibilities for acting in entrepreneurship are numerous. You can open a store to resell products, create your own product and offer services, for example.

If you intend to offer services, an advantage is that you don’t depend on suppliers and that you can set your own price. But it is very important to know your audience and make efforts to stand out, showing your brand’s differentials among competitors.

To sell products, pay attention to the quality of raw material suppliers, define whether your store will be physical or online and perform good management, making inventory control and sales record. Some questions you should ask about your business idea:

  • What is your market?
  • Why will people need your product or service?
  • What differential can you offer to draw attention to the competition?
  • Who are the possible competitors and what action should you take?
  • What are the market risks (technological, regulatory and execution)?
  • Is your idea viable in the short, medium and long term?
  • Is your idea scalable, that is, is it easily replicable and has high growth potential?
  • Will your idea have value compared to other products and services on the market or will it only last as long as it is new?
  • Will you be doing your job by executing your idea?

Make a financial plan

Set initial capital

In the business world, everyone should know the truth: it’s almost impossible to start a business without credit. With it, the entrepreneur will be able to make the initial investments, buy the first inputs and have a cash flow before the business generates real profits. It is also credit that allows the entrepreneur to leverage the business.

Supplementing a company’s start-up capital with funds from banks can be tricky for finance. In the first few months, profitability may not be high enough to offset these debts, generating interest, which makes the budget very difficult.

When calculating the start-up capital, take into account all the essential resources to start activities, ranging from the purchase of goods and machinery, to expenses with the store’s decoration.

Keeping working capital for the first few months’ expenses is also a good way to avoid future headaches.

Know the business costs

Many beginning entrepreneurs, due to a lack of knowledge of the market, cannot see all the expenses they will have during their activities.

Expenses such as the 13th of employees and the FGTS must be taken into account when hiring, for example.

Therefore, the formation of a contingency reserve is recommended so that the entrepreneur is not caught off guard.

Study the market and create a business plan

The elaboration of a business model is one of the most important steps for those who want to start an entrepreneur. Defining objectives, market analysis and competition are some crucial points for the operation to happen correctly.

To get started in entrepreneurship, it is extremely important to know the “territory” in which you are inserted. Find out about the available opportunities, research the big competitors in your niche, understand why they work and what their differentials are.

With the analysis done, develop something that will distinguish your product or service and make it stand out from the rest. Also study the companies in your area that did not work to know what mistakes were made and not repeat them.

Create a detailed plan for your venture. A good management tool with the purpose of carrying out all this market study is the SWOT analysis.

SWOT is an acronym in English for the words strengths, weaknesses, opportunities and threats, respectively. That is, with it, you can evaluate all four of these questions about your business.

Another great tool for structuring your business plan is the Canvas template – a board containing nine topics to be evaluated before starting a business. Are they:

  • Value offer
  • Customer segment or target audience
  • Sales channels
  • Relationship with customers
  • key activity
  • Main Resources
  • main partnerships
  • Revenue sources
  • cost structure

Understand the bureaucratic part

Starting a business requires a long bureaucratic process that must be followed to the letter to avoid problems in the future. Do detailed research of all the necessary documents and, preferably, hire an accounting professional to help you more confidently in these steps.

Basically, these are the fundamentals for starting a business legally:

  • Elaborate the articles of incorporation;
  • Register with the board of trade;
  • Perform state registration;
  • Obtain licenses from regulatory bodies;
  • Obtain a location and business permit.

Invest in marketing and promotion

Marketing is a crucial part of success in entrepreneurship. It is through it that people will know your brand and its positioning in the market.

Therefore, even if your company is physical, it is extremely important that there is a large investment in the area of ​​digital marketing, good planning and broad knowledge of the subject.

Define what image your company wants to convey according to the desired target audience and create a persona to facilitate the process of persuasion of customers.

The disclosure of the business on social networks is also important to communicate directly with the consumer, in addition to being used for content production – another digital marketing strategy.

Other widely used channels for content creation are email marketing, blogging and landing pages.

Digital entrepreneurship

Digital entrepreneurship is a new business format on the rise in Brazil. Its advantages over traditional entrepreneurship are:

  • Low investment;
  • Low maintenance cost;
  • The flexibility of schedules;
  • Flexibility to work from home;
  • Greater coverage of areas to work.

According to the Panorama of Digital Business Brazil 2020, made by us at HeroSpark, 54% of digital entrepreneurs started their businesses less than a year ago. Of these, 23% started less than three months ago, that is: entrepreneurship will continue to be a strong trend in the coming years.

Another fact from our survey is that 62% of Digital Entrepreneurs in Brazil use their ventures as a complement to the so-called “traditional” jobs. So, digital businesses act as an excellent source of additional income.

Digital entrepreneurship models are very varied and fit into any type of segment. Some of them are:

E-commerce

Contrary to what many believe, e-commerce is not just a virtual store – this is its main part, but not the whole.

E-commerce marketing, business planning and logistics are also done completely digitally.

An e-commerce company demonstrates and sells its products or services on its own website or application. Payment and contact with the customer are done virtually.

Marketplace

The marketplace is an extremely popular type of digital business in Brazil. It is a shared platform where merchants advertise and sell their products.

Payment and delivery are monitored by the platform itself – which guarantees security for both the customer and the seller.

Another benefit for the seller is the low cost of maintaining a marketplace, as it is a previously structured location.

The process of linking to the website is also simple: just register on the platform and start advertising your products. For the consumer, the marketplace is advantageous mainly due to the possibility of comparing prices and the ease of finding deals.

Infoproducts

The info products are materials distributed in digital form and easily accessible. It is a very successful area due to the convenience of the consumer in being able to use the contents whenever and wherever they want and learn about subjects of interest independently.

The main types of info products can range from digital content, such as ebooks and infographics, to audio content, such as podcasts, and audiovisual content, such as video classes.

Online courses

As with info products, the online courses market has become extremely profitable in recent years.

The creation of this type of platform makes it possible for the public to obtain knowledge without leaving home, and it is gradually gaining the same relevance as in-person courses.

Online entrance exam classes, for example, are a great alternative for people who cannot take a traditional course.

The secret to having a good result in this area is to invest in the best possible content, with well-produced and edited video lessons, well-reviewed ebooks, in addition to a lot of publicity on social networks.

Digital affiliates

Digital affiliates are people who promote third-party products on the internet and, in return, earn a commission. These products can be digital, such as online courses or info products; as well as physical, for example, beauty products and footwear.

To be an affiliate, all you have to do is register on a platform, choose an item, find out who your target audience is, define the communication channels used and start selling. However, it is necessary to pay attention to the credibility of the company or person to whom the disclosed product belongs.

If you’re interested in starting a digital business, but don’t know how to get your project off the ground, check out SparkStart, an acceleration program for digital business here at HeroSpark.

The profile of an entrepreneur

Before asking yourself, “Do I have what it takes to be the next Bill Gates?” you need to understand that, while it’s good to have great entrepreneurs as a reference for your career, you don’t have to act exactly like them to be successful.

Each person has a huge range of particularities and characteristics.

Therefore, it is impossible to say with 100% certainty that these skills are the ultimate answer to becoming a millionaire with entrepreneurship.

However, working to develop these skills can be a great help to evolve in your professional and personal life.

Resilience

Resilience is the ability to know how to deal with adversity in a balanced way, so that your emotions are not shaken, being able to adapt to the situation and even evolve with it.

Creativity

It is very important to develop creativity in entrepreneurship, as setbacks require innovative solutions.

Leadership

Inspiring confidence, being understanding, knowing how to listen to new ideas and maintaining the well-being of employees is how to lead a motivated team to achieve good results.

Ethic

Being committed and honest with employees, customers and society, in general, will make your company pass on credibility, and not only obtain profit, but a positive impact for the community.

Proactivity

Proactive people are always motivated to promote change and the evolution of a business. An entrepreneur cannot just wait for things to fall from the sky, he needs to chase his goals.

Ambition

Contrary to what many people think, ambition is not the same as greed. Having ambitions in life means having clear goals to be achieved. After all, no project leaves a place without goals.

Desire to learn

Entrepreneurship is not a fixed and immutable area. On the contrary, it is constantly and rapidly changing. Therefore, being always attentive and willing to learn about updates in the market is a great differential.

Now, you know that entrepreneurship is not an easy task. However, it is not impossible for one who is prepared.

You also already know the entire path that must be taken to become an entrepreneur and make a difference in the world of entrepreneurship. So, do you think you are ready for this long journey?