To validate a business idea, intuition is not enough, it is necessary to understand the demand and competition in the target market.
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Of course, if you’re reading this section, it’s because you like entrepreneurship, you want to start a business, you’ve already done it and want to grow it, or you just want to formalize your business by identifying the best guidelines for doing so. So we all speak the same language and on the same topic.
“In a challenging economic scenario like the one Colombia is facing, where the prices of essential products and services have risen significantly, entrepreneurship appears to be an attractive alternative. The growing need for income, due to the scarcity of basic products such as food, clothing and transport, forces people to look for entrepreneurial opportunities,” says Ivan Francisco Tunjana, professor at the Center for Financial Education and Research at the Polytechnic Institute of Gran Colombia.
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Tunkhana then built the path that one should follow not only to start but also to stay, in addition to another series of recommendations that appeal to all of us in the Colombian entrepreneurial ecosystem. Here, verbatim, is the road map offered by the academic:
“1. Accurate identification of the idea: Find a market need or opportunity you can take advantage of.
2. Market research: To validate a business idea, intuition is not enough, it is necessary to understand the demand and competition in the target market.
3. Design a possible business: The relationship between income and expenditure is not enough to guarantee a good result; entrepreneurs need to combine investment and profitability analysis with cost and revenue analysis to develop a business model that is sustainable.
4. Development of a business plan: Describe in detail the objectives, strategies, action plans with different options, cost structure and financial projections.
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5. Legal registration and compliance with regulatory requirements: Learning the process of registering a new business involves not only understanding how to register a company, but also choosing the appropriate taxation regime. Legalities and regulations are just as important as a business plan as they provide legal protection for the idea. Studying the legal requirements and complying with them is the first step to ensure the proper development of the enterprise.
6. Detailed financial assessment: It is very important to conduct a thorough assessment of your financial viability. This involves understanding and applying various valuation techniques such as net present value (NPV), benefit-cost ratio, investment payback period and internal rate of return (IRR), among others. These methods allow you to analyze the profitability and financial efficiency of your project in different scenarios. In addition, it is very important to have a solid initial financial backing to withstand possible contingencies in the initial stages of the venture.
7. Funding: Once you have clearly defined your financial needs for the project, it becomes very important to start looking for suitable sources of financing. This process involves exploring the various options available in the financial and solidarity sectors. It is very important to carefully research the alternatives provided by different financial institutions, as each may offer unique terms and benefits. Careful selection of the option that best meets your financial needs and goals is essential to moving your project forward to success.
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8. Development of brand identity: When starting a company, it is very important to create a distinctive brand identity that reflects the essence and values of the business. This involves developing a name and logo that will be representative and memorable for your audience. A brand is not only the face of your company, but also a powerful tool to distinguish yourself in the market and create loyalty among customers.
9. Assessment of potential: Identify your current skills, knowledge and abilities, and identify areas to develop or acquire new skills. This includes technical skills, market knowledge, management and key business competencies. By being clear about your strengths and areas for improvement, you can prepare to face challenges and take advantage of opportunities in your business sector.
10. Launch and evaluation: The process of launching your business is an important moment that marks the official start of your business adventure. When all the preparatory actions are done and the company is ready to take a step, it is important not only to start the business, but also to be ready to carefully evaluate the results obtained. This includes carefully monitoring the company’s performance and comparing it with the goals set in the business plan.
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The teacher remembers the importance of good communication with other entrepreneurs not only in order to learn from them, but also in order to evaluate the possibility of joint business. It also talks about the need to talk about adaptability, which means being flexible in the face of changes in the market. Maintain a learning curve that leads the entrepreneur to maintain high innovation. It also speaks of a positive mentality and, of course, compliance with ethical requirements, as being outside this boundary should simply be unacceptable.
If you know stories of entrepreneurs and their businesses, email us at Edwin Bohórquez Aya (ebohorquez@elespectador.com) or Tatiana Gomez Fuentes (tgomez@elespectador.com). 👨🏻💻 🤓📚