Thinking of forming your own company? The whole process can be exciting, scary, and tedious all at once. Starting a company is no child’s play, it involves a lot of processes, strategic development, legal requirements, as well as documentation that can all seem overwhelming.
It's quite normal if you are still uncertain about how to handle the whole process or what to do next. You might even be unsure if the decision you’ve made is the best option for your company.
Rather than being overwhelmed by all the choices and processes you need to go through, it is best to start by working through some of the mapped out strategic processes every new company founder needs to make it work.
In this article, I have put together everything you need to know about forming your own company. So, let’s get into it:
This is typically what most people refer to as the big idea. Of course, if you are thinking of forming your own company, the chances are that you already know why you want to do so. Your big idea frames the reason why you want to start a company. After identifying your big idea, develop it and try to justify if this idea is strong enough to start a company or whether this idea is sustainable
The biggest mistake any budding entrepreneur can make is starting a company without doing proper research. Before starting your company, you need to research and identify who your target audience is. What segment of the market will buy your product or service? Conducting thorough market research will help you identify potential opportunities, market size, value proposition as well as your competitors. Apart from researching your market, you also need to research your competitors. Identify what the competition is doing that works for them as you may need to adapt their strategy eventually. Researching the competition can also help you spot loopholes that you can bank on to improve your product or service.
If you are forming your own company, you’ll need something to act as a roadmap for your business - that’s what your business plan does. A business plan will also come in handy if you need to pitch your business idea to potential investors. So, it is best to do your homework before writing your business plan. A well-thought-out business plan will help you figure out how much funds you require to start your company, how to sustain the company and its potential growth.
Technically, your company isn’t real until you make it legal. When forming your own company, it is essential to first identify the business structure you wish to adopt. For instance, are you planning to operate the company as a corporation, partnership, a limited liability company (LLC), or as a sole proprietorship? This will help you figure out how to go about the company incorporation process. This phase typically involves a lot of paperwork as you will need to get the required permits and licenses to operate.
Alright, now we’ve gotten to the part where you need to ask the big question “how do I fund my company? Sourcing for funds for your company might not be the easiest part of the process, especially if you intend to run a large company. Unless you are running a small company that you can fund with your money, you might need to seek financial support from investors or get a loan to fund your company. However, if you intend to run your company as a corporation, you’ll find it quite easy to attract investors.
So, you've got your company's name sorted out, you've got the funds needed and you've registered your company with the appropriate bodies, what's next?
At this point, you need to decide where to situate your company. Are you looking to form an online company or get a physical location for your company? If you are thinking of building an online company, you probably won't have to fuss over finding the perfect location for your company. However, if you are interested in getting a physical space for your company, there are certain factors you need to consider before picking a location. These include price, visibility, proximity to competitors, as well as other considerations. You should ensure that all these factors are in your favor before choosing a location for your company.
Overall, forming your own company whether small or large is serious business. While the whole process can be exhausting and sometimes, frustrating, the result can be rewarding.