GET FINANCING

Another aspect to which this book pays special attention is to offer alternatives that the entrepreneur can make, with the consequent cost savings. For example, in the case of marketing, the services offered by companies specialized in market research are usually excessively expensive for someone who is going to create a small business. Therefore, other alternative methods are listed that, although less reliable, are easy and economical. How can they be:

Expert opinions. It is interesting to submit the business idea to the experts in the sector in which you plan to undertake. This provides very valuable data, although you must do it with caution since you run the risk of having the idea.

Direct observation. You can personally obtain basic information about the competition related to schedules, services provided, prices and personnel available, etc. Another option, also, is to monitor the behavior of buyers and distributors to know the environment of your future business.

Business Censuses These will help you detect companies with services / products similar to the one you plan to launch. Some are published by the Chambers of Commerce (www.camaras.org), business organizations, industry departments of some autonomous communities or the General Directorate of SME Policy (www.ipyme.org).

Commercial Registry A large part of the companies, those that are constituted as mercantile companies, have been obliged by law to present their annual accounts in this registry. In them you will find your balance sheet and your income statement, which can be used to analyze what are the economic figures in which a business similar to the one you intend to set up moves. You can request the annual accounts of a company through the Internet service of the Registrar’s Association (www.registradores.org).

Sector Studies You can find them already made in the Chambers of Commerce, ministries, public bodies (such as ICEX), business organizations, sector magazines, consultants, etc. You can also use official statistics and surveys published by public bodies such as the National Statistics Institute (www.ine.es) or the Center for Sociological Research (www.cis.es).

Pseudo Purchase It consists of acquiring an item or service similar to the one you plan to launch. It is useful for obtaining information on sales attitudes: the arguments used, promotions, payment methods, etc.

An always complicated issue, but one that has been even more so for a few years, and for which possible alternatives are also offered. Thus, the characteristics of the usual formulas available to financial institutions (loan, credit policy, commercial discount, microcredits, factoring …), renting and leasing, of the guarantees of Reciprocal Guarantee Societies, aid are described. and grants, venture capital, business angel … Even, what you have to keep in mind if the family lends you money.

As recommended in the book “scrutinize all the possibilities of obtaining financing and go first to those that you think you may have more possibilities. But keep a plan B in your sleeve, with other entities and types of financing, in case they fail. Try with other entrepreneurs and entrepreneurs how is the situation, which entities are giving more facilities or for what types of financial products are putting more obstacles. Go to business associations, chambers of commerce, public bodies and any other institution, since they may have signed agreements with financial entities or programs that facilitate access to financing for the creation of companies. ” In this, as in many other aspects, you have to be stubborn.

Finally, the legal procedures to be carried out to start the activity are also described. Some decisions that should also be considered because “whoever delays a permit or a license can assume that the business, despite being ready to operate, has to wait to start the activity. Enrolling in a tax regime that is not the most appropriate will involve the payment of an extra cost to the employer. And so it can happen with many legal and fiscal obligations. ”

And one of the points that is most emphasized is the type of legal form under which the activity will be carried out. “Many people decide to work as freelancers because it seems a complication to create a society. However, it is always advisable to analyze the benefits that acting as a limited company may have: greater accessibility to aid and subsidies, better image for suppliers and customers, more possibilities for tax relief, limitation of liability are, among others, issues that should be weighed. ”

Complete this book, as already mentioned, other aspects inherent in the process of developing a business such as psychic resistance, coping with stress, obtaining family support, etc., since undertaking is also a social activity in which involves people, emotions, relationships, interests, … ” And you have to be prepared for this too.

How to undertake alone

One of the first concerns that usually appears in the minds of new entrepreneurs is whether they are prepared to run a company. As Javier Inaraja, author of Lánzate ya (Planeta Empresa) states, “entrepreneurship is an option that anyone can adopt. But those that are more prepared tend to have greater possibilities of coping with the ups and downs of creating and consolidating a business. ”

And it is that living from a business activity is a major career. Those who end up winning are not always those who start first in the first meters of the course. Here, as in professional sports, self-confidence, tenacity and the capacity for suffering are the factors that push to reach the goal. However, all things being equal, it is those who prepare themselves thoroughly and know how to best execute the techniques who are most likely to finish among the first.

To facilitate the process, this book proposes 10 steps to become an individual entrepreneur or entrepreneur. Steps that follow a logical sequence, starting from some initial stages – analyzing the entrepreneurial capacity and the viability of the business idea – to undertake the most complex phases – the financial calculations, choosing the legal formula of the company, the different sources of financing that can be used, etc.–, until the opening of the new company.

A process, in addition, in which not only the formal issues are taken into account – such as the elaboration of the business plan, the necessary procedures, etc. – but other aspects that, from the author’s point of view, are equally important (How to develop professional contacts, look for profitable options when it comes to business, make private life compatible with entrepreneurship, etc.). Each of them offers concrete and practical information, complete with multiple resources that can be accessed through the Internet, so that the entrepreneur can develop the process of creating his company.

Any future business, regardless of its size, should be based on a business plan or business plan, ”says Inaraja. For him, “it is the only way to see if it is truly viable.

The business plan will also help you improve your idea, as it will make you face the reality: sales, expenses, investments … and it will make you change some aspects that are not analyzed on paper. They look clearly. ” It is not the only advantage of developing a plan. “A posteriori, when you have your company running, it will allow you to observe if your forecasts are being fulfilled and, in the opposite case, the areas that may be failing and in which you must influence to redirect them.”

Now, a business plan is not an unlimited guarantee against failure, but it does increase the chances of not making the first change. In addition, it is essential if you intend to obtain external financing for your project.

These are the basic questions that, according to this book, a business plan must answer. That is, more specifically, you must describe the idea; introduce the person who is going to start it up; analyze the environment in which it will operate; explain the planned plan to launch it to the market; and analyze the costs involved and the expected benefits.

Seen this way it seems simple, but, says Javier Inaraja, “from my experience, developing the business plan is one of the first obstacles that many entrepreneurs often encounter. The solution to this fear is none other than following the structure, doing it step by step, and developing each section to the best of your ability. ”

You will make mistakes, surely, but you must capture your personal vision of the project. Then, the most advisable thing is to choose to be analyzed and advised by an expert in matters of business creation (among the multiple institutions that offer help) or the sector of activity to which you are going.

Another point that highlights this book so as not to err in the economic forecasts of the plan is that of “being fully informed of what any expense, commission, interest rate, terms, etc. may entail, even if it seems insignificant. The figures that the economic-financial plan must contain must be reliable. It is not worth budgeting over the cost of an advertising mail campaign, you should be informed how much a specialized company would charge you if you really did, even dare to ask for a budget. ”

How A Startup Competition Starts the Spark

Have you noticed that the new word on the street is Entrepreneurship? It’s not actually a new term, but recently entrepreneurship has been turning into a movement.

It is a big enough movement, in fact, that various organizations – from private and non-profits, to government and education sectors – are looking to foster it within their own communities.

Take the Global Entrepreneurship Network as an example. It was conceived in response to the growing momentum of community leaders looking to build one global entrepreneurial ecosystem.

We are living through a sort of era of entrepreneurship.

And like it or not, building entrepreneurial ecosystems are becoming more and more prevalent in everyday work.

Many of the ecosystems across the globe have begun to establish startup programs, trainings, seminars, events and funds in an effort to develop entrepreneurs. But there is a problem, and one that cannot be tackled so easily.

The ecosystem is saturated with a number of these programs and initiatives to help grow entrepreneurial ecosystems – each with substantial research and outcomes that point to some sort of success.

Many of these programs also take time to analyze impact, so assessing outcomes may take a while.

But our budgets, for the most part, are limited, and employers want results now.

There’s little to no room for failing in most cases, and we are probably the ones with that luck.

So what are we to do?

Given so many different programs for entrepreneurs, questions arise, such as: What works best and in which circumstances? How can diverse efforts be integrated?

Learn By Doing

I am reminded of an old saying, “Give a person a fish and you feed them for a day; teach a person to fish and you feed them for a lifetime.”

In entrepreneurship, no single experience has been as transformative for me as going through the experience of building a startup from idea to repeatable business model, then to scaling and acquisition.

Before continuing, I am compelled to share my first experience with an idea-driven competition and the entrepreneurial spirit of collegiate students.

My exposure began with an idea challenge back in 2009, hosted by Kingsborough Community College in New York, which asked us to focus on sustainability.

I got together with some classmates and developed a social impact venture, built around a grant-based business model. We won the challenge, received some funding to implement the program, as well as mentorship from the administration.

We partnered with a few student organizations and grew the initiative to about 200 active student volunteers. During this time, the venture was placed under the provost’s oversight and continues to this day.

At the time it was a cool experience, and I thought nothing more of it.

But if I look back, I could say I went through founding a social impact venture, developed a business model, grew it through school funding and student partnerships, and was acquired as I was about to graduate.

It planted the bug in me, and today I continue to pursue this drive to create solutions where none exist, and foster entrepreneurial ecosystems.

How A Startup Competition Starts the Spark

As community builders, one of the ways we can begin building the startup ecosystem in our communities is by creating opportunities to experience entrepreneurship.

Startup competitions are one of the most fruitful ways to create effective experiences.

Let’s be honest though, there is no single way to develop entrepreneurs.

It’s unique and different for every individual, but we can work with some foundational experiences. Crucial experiences that come to mind are design thinking, business model generation, testing and learning and validating.

A startup competition is flexible enough for you to focus on the components that make sense in your community.

Some leaders believe business plans are the way to go, others feel it’s through live hack-a-thons. Tailor your competition to test some or all of these components, which only you will know.

And let’s not forget about building relationships.

Direct networks are more highly prized today – especially the networks made as an undergraduate student surrounded by like-minded people. I learned the value of building networks during my student government days, and it has served me well in entrepreneurship.

With a startup competition, depending on the components, you can touch on helping your community develop those skills.

One of the overarching goals that I see with competitions is to provide educational opportunities to people and to showcase some of the stellar startups in the community. And startup competitions provide a unique channel through which to foster and develop entrepreneurship tailored to your unique views and outcomes.

When setting up a competition, take a few minutes to think through what it could look like. There are lots of examples of competitions, which you can find in our competition portal online at Startup Compete.

How do you feel about startup competitions and their effectiveness in fostering entrepreneurship? Join the conversation. You can connect with me from the Startup Compete webpage, or email our team at support@startupcompete.co.

 

 

Startup Nations Summit 2016

WASHINGTON, D.C. – During his visit to Cork today (Friday), Prime Minister Enda Kenny announced that Ireland had been selected to host the Startup Nations Summit in November 2016. The event, organized annually by the Global Entrepreneurship Network (GEN), has never been held in Europe previously and is likely to draw startup-savvy policymakers, advisers and startup community leaders from around the world, who are interested in helping entrepreneurs start and scale new enterprises.

Kenny congratulated Cork innovates and Startup Ireland, the organizations that led the consortium to bring the event to Ireland in November 2016.

“Ireland is garnering international attention for it’s successful creation of a strong supportive ecosystem for entrepreneurship,” Kenny said at the Summit announcement in Cork. “Global Entrepreneurship Week and the Startup Gathering in 2015 were clear examples of how we are working regionally, nationally and internationally to support the startup community, through policy, programs and promotion. We are delighted that Ireland is the first European country ever to host the Startup Nations Summit in partnership with the Global Entrepreneurship Network.”

Startup Nations is a global initiative, funded by the Ewing Marion Kauffman Foundation, focused on exploring different regulatory changes and policy ideas to help accelerate new and young firm formation. The Startup Nations Summit connects policymakers, advisers and startup community leaders to help enable high impact entrepreneurship and stimulate entrepreneurial growth around the world. The 2015 Summit, held in Monterrey, Mexico, brought together delegates from 56 countries.

Jonathan Ortmans, president of the Global Entrepreneurship Network, visited Ireland last week and met with the key stakeholders involved in the Startup Nations Summit bid.

“The government of Ireland has demonstrated an unwavering commitment to setting a policy environment that allows entrepreneurs to flourish,” Ortmans said. “Bringing the global policy community to Ireland will further advance a fast moving global dialogue on the most impactful policies and programs that can be replicated in countries around the world – while highlighting the rapid expansion of Ireland’s startup ecosystem.”

The Summit will serve as the official conclusion of Global Entrepreneurship Week 2016, a weeklong celebration of entrepreneurship with more than 30,000 events and roughly 10 million participants in 160 countries.

“We are delighted that the first time this event is held in Europe, it will be in Ireland,” said Eoin Costello of Startup Ireland. “In order to create the most supportive environment possible for entrepreneurs, it will be useful to not only learn about new and innovative policy approaches from other startup nations, but to apply those lessons throughout Ireland.”

Startup Ireland, a partnership committed to advancing the country’s startup sector, led the effort in partnership with Cork innovates to bring the summit to Ireland. Siobhan Finn of Cork innovates will act as project director and will lead the planning for the event in Cork. She said local authorities, business support agencies, educational institutions and Cork innovates have been working together for the past few years to drive and nurture entrepreneurship in the Cork region.

Awarding the 2016 Startup Nations Summit to Ireland is part of an effort by GEN Global to scale its work in support of high-growth entrepreneurship in Ireland – including an expanded Global Entrepreneurship Week Ireland in November 2016, a meeting of the Global Entrepreneurship Research Network in Dublin and the development of a new GEN Ireland affiliate to coordinate and connect all Ireland’s entrepreneurship ecosystem leaders to their counterparts across the globe.

Previously, the Startup Nations Summit has been held in Toronto (Canada), Kuala Lumpur (Malaysia), Seoul (Korea) and Monterrey (Mexico). The 2016 Startup Nations Summit will be held in Cork from November 18-20, 2016.