Whether entrepreneurship is a way of life, a way to earn a living and to employ oneself or another choice, almost all entrepreneurs need guidance in starting and developing a business.
With the help of this guide, we aim to help the emergence of viable, profitable and employing companies.
What is entrepreneurship?
The goal of business operations is for the company to succeed and make a profit. Entrepreneurship is the identification and preparation for risks related to operations, ie the ability to make operations profitable
What are good entrepreneurial qualities?
Personal qualities and abilities create the foundation for a successful business. Different industries need different skills and attributes. For this reason, it is not possible to say whether one succeeds as an entrepreneur on the basis of individual characteristics.
However, there are a few qualities that help in entrepreneurship. These include:
- Hard work
- Risk tolerance.
What motivates to become an entrepreneur?
By far the biggest motivator for entrepreneurship for many is that they can be their own boss and decide on their own actions. However, it is important to note that success also requires discipline and commitment.
Different forms of entrepreneurship
There are many ways to become an entrepreneur. Most often, the first thing that comes to mind is starting a new business, but this is just one of the forms.
Are you familiar with the options below?
- Starting a new business
- Buying a viable business
- Franchising entrepreneurship
- Side-by-side entrepreneurship
- Team entrepreneurship
- Social entrepreneurship
- Growth entrepreneurship.
Make a Business Plan
Business Plan refers to a written plan of business. It describes how the business idea is put into practice: what are the company’s operating methods, goals and operating environment. The plan is comprehensive, detailed and timed. It includes longer-term goals and quantified targets in the form of performance budgets and cash and cash flow statements.
The plan reviews product features, customer groups, the competitive situation in the market, the training and skills of the entrepreneur or entrepreneurs, and how the company intends to market. Business Plan also uses calculations to assess profitability and the amount of money needed to start a business (investment need).
A good plan also highlights the risk factors that make it difficult for the company to succeed. A business plan is not only a planning tool for the entrepreneur himself, but also a negotiation tool when he talks to potential financiers, business partners, a landlord, or even suppliers.
With the help of the Business Plan, a start-up entrepreneur can show that the company is successful, even if, for example, financial statement information is still missing. A well-prepared business plan gives an idea of the company’s profitability and future prospects and makes it easier to obtain financing.
You also need a Business Plan when you apply for start-up funding from the TE-Services, a loan from a financier or business support from the ELY.
Create a business plan and deploy tools to plan your business in Oma Yritys-Suomi.
Start a business
Yrityksen perustamisen vaiheet lisätietoineen:
- Business idea what, to whom, how?
- Business Plan, including financial and profitability calculations
- Determining the licensing requirement for business activities
- Arranging financing
- Choice of company form
- Private entrepreneur
- Open company or limited partnership
- Limited company
- Notice of incorporation into the Business information system
Before starting a business, it is important to compete for compulsory insurance, banking and accounting.
A checklist for a new entrepreneur
Personal qualities and professionalism
Is your professionalism and expertise enough? Are you relentless and stress tolerant? How do your family and loved ones feel about trying?
Plan your business idea carefully. Take advantage of expert help. Remember that practice and theory support each other.
Markets and competitors
Are the markets sufficient and where are they? What is the competitive situation in the industry and who are your competitors? Bring something new and unique to the idea market?
Is the initial funding you plan sufficient? Is funding available? In addition to your equity, there are several options for arranging financing, such as banks, Finnvera or investors. Discuss options with experts.
How much billing should there be in a given time period? Is the necessary sales achievable? What is the product coverage? Who are the customers? Define a critical point in profitability where revenue is adequate relative to expenditure. Think about how to stay in control and be honest with yourself.
Right business form
There is always a risk involved in business. Are you willing to put your property at risk? Is your business meant just to support yourself? Are you planning to expand? Will there be other shareholders or influencers in your company and what are your interrelationships? What is the responsibility in different types of companies? Remember that taxation is often the most irrelevant factor in choosing a business form.
How do you take care of your accounting? What do accounting services cost? The law sets requirements for a company’s accounting and requires expertise to manage it. Accounting services pay, but you have more time for the essentials, which is to try. The level of offices is varied, so it’s worth asking other entrepreneurs for their experiences with them.
Is it worth buying or renting business office? A good location is usually vital. Also find out what kind of space is suitable for your activity, does the activity place special requirements on the farm and are official inspections required, for example?
Where can you find the right staff for your business when needed? What obligations and costs will the company incur when hiring staff? Find out from the Employment and Economic Development Office if it would be possible to receive, for example, a wage subsidy for the costs?
What agreements are needed? Which ones are necessary? Before you sign a contract, find out exactly what you are committing to and what will follow from it. Always make a written agreement about your business.
Insurance and risk mapping
What are the risks in your operations? What insurance is available? Do your customers require insurance from their business? What statutory insurance do you need? Find out the basis of your social security – entrepreneur’s pension insurance (YEL) and unemployment insurance in your entrepreneur’s fund. Map the risks in your industry and think about what voluntary insurance your business or you need. Explore different options and ask for quotes.
Your personal network
It is not good for an entrepreneur to be alone. Do you have entrepreneurs in your circle of friends who know the pitfalls of trying? Do you know experts in the field? Are there industry associations, business associations or organizations in the sector? Take advantage of these.