Pinagina Business Solution

Market research
Another common prior activity is to conduct a market study with rigor. Again, whether it is the entrepreneurial team who carried out this activity as if you hire “professionals”, the cost can be high indeed travel, surveys, time and research and development costs, etc.

Should identify and evaluate as far as possible these costs, it is possible that these activities will be reached prior to the decision, even of not launching the project. A rough preliminary assessment, will give the entrepreneur an idea of the “first minimum bet” to be carried out before embarking on the “final bid.”

Company Constitution
Once it is clear what the product or service that will be developed will require a “framework” law from which to develop this activity. Whether either personally through a society will have to constitute the company.

These procedures have a cost, sometimes important in relation to the size of the project. Should be taken into account, it is one thing that we believe are unnecessary or useless red tape and another thing is that they are free.

Whether these procedures are performed by the entrepreneurial team itself and if you hire a professional to its management can represent a significant expense, both in money and time to be taken into account in the cash-flow forecast for the first stage of the business ( and implementation schedule).

In this case, you should take the time to detail the steps and formalities to be carried out by calculating their associated costs. Although only be created once the company should finish this stage affect the other tasks that the entrepreneur should address later.

Unfortunately the worst of the process of setting up a business is that if done right does not, in principle, the greater impact on long-term development of the project, but if done wrong …

Establishment
In most cases, the company incorporated there is not enough to start working. Today it is difficult, for instance, designing a business without the presence of at least one computer. And if you put a computer, it would not hurt the power and IT infrastructures, and by the way, the water in case you need to go to the bathroom throughout the day. Did you say the phone?

Starting a business, including a business “virtual” Internet involves recruiting a number of services and incur expenses that should be provided with as much detail as once “has begun” very desagardable having to start disbursing money issues that were not foreseen. Perhaps part of the feeling that some entrepreneurs have everyone seeks to benefit from starting a business has its origin in this lack of foresight.

Initial Investment
If, in addition to all these expenses, you have to rent or buy a local business providing the special equipment, fill the office furniture and office supplies, or buy products for the store, this is another important chapter in the analysis of money involved in the implementation of the project.

From an accounting point of view, some of these concepts may not be incurred, but from the standpoint of the entrepreneur’s pocket represents an important chapter can exhaust the financial capacity of entrepreneurial team and to limit the scope of the project in early stages of development.

Another difcultad added in this case is to calculate the “optimal size” of this initial investment. After all, both can open the store as the store filled with only half of the genre. And in this sense, many entrepreneurs opt for the formula of less is more. Have been constituted for many companies as a limited company with capital of 500,000 PTA. for the simple reason that it was “the least that something needs to go.”

Of course, and input and without further argument, this argument does not say a lot about the desire for entrepreneurial team planning. One thing is you want to be conservative in how to apply the available capital and the other is that the initial capital requirements to be at definción, minimum.

Release
In addition to preparing the business to begin work in optimal conditions (ie, making a correct initial investment) may be necessary to kick-start a “special” to the business so that it starts to roll.

Certain projects will require an initial advertising campaign for attracting first customers and to publicize the project. This may be another major cost that must be addressed as soon as possible and can be considered part of the implementation process.

If the money available has been exhausted, for lack of estimates, costs (contingency) for the establishment of the company and fill the stores but now there is money to be made available, the project’s future is quite uncertain. Although this does not necessarily end with the project if it can force the entrepreneur to have to make decisions quickly (“hastily?) To give (again) the business of financial strength. In many cases the price paid by the entrepreneur is high.

Also within the period of “release” may be desirable to ensure a minimum period of survival until the business takes speed and remain alone.

In other words this means that someone must be paying the expenses until the business can, later, pay for itself with the margin derived from sales. This one is, of course, the entrepreneur.

This is important to have a proper estimate of cash to meet not only the cost of creating the company but also to keep working as long as you decide, regardless of sales performance. Not for nothing one of the principal causes of failure of new businesses is the financial exhaustion before landing a minimum volume of business. Simple, but fatal. Can you imagine the attitude of the bank manager when the entrepreneur concerned to explain that just a matter of few months the business begins to operate, but now desperately needs a loan to pay the running costs?

Other hidden costs
In a project of setting up a company there are some hidden costs that, while apparently not involving movement of money by the enterprise itself must be considered for a proper assessment of the cost of setting up the company.

Typically, for example, that the entrepreneurial team waive all or part of his salary until the company can afford this game. Besides altruism shown by the entrepreneurs, they should be aware of the “contribution” hidden performed every month in the business and in a few months may represent a significant amount even higher than officially contributed capital without instead get right to future dividend payments.

While at first, a team of entrepreneurs all is illusion and will, if not then the results just came out as expected can cause unnecessary stress that in no way help the development of the project. And when they come to the surface hidden costs (for example, if one of the entrepreneurs to pay a mortgage every month and another lives happily at home with their parents) it is easy to divert attention from the real objective of the business.

Other hidden costs in launching a business can be just the opportunity cost of having continued on previous work or to have committed capital to other investments more profitable (or safer), not counting the hours “extras” that are likely the entrepreneur will face.

These costs are often not being valued in the process of starting a business. While the exact calculation of its value does not seem to make any use, at least, knowledge of its existence may help the entrepreneur to make better decisions in planning your business.

Getting the money
If after considering all these aspects, the entrepreneur gets to have some idea of how much it will cost to implement your project, then discover that just knows how to get the amount you have calculated, for this, oddly enough, is usually higher than money have saved. At this time, there are basically two strategies to bring the capital to the project (or vice versa).

The first strategy is to reduce building costs. In this sense, may be considered a distinct social form, some smaller stocks or launched to build the company without depleting resources in previous studies. A priori, none of these “technical” is wrong in itself. It is important not to undermine the project reach certain changes so you are creating a company other than the designed business plan.

The second strategy is, of course, increase the capital available. Among the “techniques” most common are to convince the family to contribute money, find other backers, visit (in vain) the bank’s office lifetime or expect to get one of those great public subsidy of the whole speaking world, especially politicians. Again, these alternatives are entirely lawful and in the bottom, begin to teach the entrepreneur who is planning something on paper and another move in the daily reality of creating and managing a business.