Validate Your Business Creation Project: How To Do It?

To validate a business creation project, several vital subjects must be addressed:

• The adequacy between private life and the configuration of the project
• The adequacy between the skills of the entrepreneur and the specificities of his project
• The financial coherence of the project
• The configuration of the future company

In this file, Entrepreneurs gives you several tips for correctly validating your business creation project to optimize your chances of success. To do this, the following three points will be addressed:

• The match between your situation and your business creation project
• The match between your skills and your future activity
• The financial coherence of the business creation project
• How the future business works

The Match Between Your Situation And Your Business Creation Project

The first subject corresponds to the adequacy between your situation and your business creation project. You must ask yourself about the different impacts that your project may have on your personal life: what constraints should be expected? Are they acceptable or not? And, on the other hand, what are the positive points? We will not mention the financial constraints mentioned in the following point.

Deadline Constraints

Depending on your situation, you may have time constraints determining when your project must be launched. When can you start your business creation project? Is this deadline consistent with your situation? Here are some examples:

• If you receive unemployment compensation, do you have enough time to launch your project and generate enough activity to pay yourself by the end of your compensation period?
• If you are under an employment contract, is the end date (after notice for a permanent contract, end of contract for a fixed-term contract) consistent with the desired date to start your project? Is a temporary non-competition obligation planned?
• If your future activity is seasonal, do you have enough time to launch your project and prepare for the next season?

Constraints Regarding Privacy And Health

For any entrepreneur, starting a business has an impact on personal life. This impact can be positive or negative. The important thing is to think about it well in advance. Beyond the impact of the time devoted to your private life, you must consider other aspects, particularly your health. A project can be very demanding, both physically and mentally. Are you in the condition to cope with it?

By having the support of your spouse, your family, and those close to you, you put yourself in the right conditions to get started. If your business creation project requires preparation, and you want to take care of it before leaving your job, you will reduce the time devoted to your private life (family, leisure, vacations, etc.).

Positive Points To Take Into Account

A business creation project can also improve your personal quality of life. These positive elements must also be taken into account. For example, it could be:

• Greater autonomy in work,
• Managing your working hours,
• Carrying out an activity in a new place,
• A freedom of organization that you did not have before,
• Better remuneration

Also Read: What Is Controlling In Business Administration?

The Match Between Your Skills And Your Future Activity

Creating a business is sometimes synonymous with professional reconversion for the entrepreneur. In this case, training may be essential. It all depends on your skills, experiences, qualities, and the specificities of your future profession. Having a short experience in the targeted sector of activity (on a fixed-term contract or a temporary basis, for example) is enriching. Even if you plan to start your own business to practice a profession that you already know (after working there as an employee), you may still need to achieve it more quickly.

As a business manager, you will have to manage everything (administrative management, personnel management, commercial management, etc.). You can thus be very efficient in exercising your profession while having difficulty managing your business. Where applicable, chambers of commerce and industry offer training to enable you to acquire skills in areas you need more mastery of.

The Financial Coherence Of The Business Creation Project

Concerning the financial coherence of your business creation project, the work consists of validating the following points:

• Is the project, in its current state, potentially and sufficiently profitable to reimburse you?
• Do the available financial resources allow the business creation project to be launched under good conditions?
• Do you have sufficient personal contributions to make this project a reality?

Based on prudent hypotheses, it is essential to verify that the profitability of your future activity will be sufficient and that you can expect a suitable remuneration. This “suitable” remuneration depends solely on your personal needs.

Then, your business creation project must be launched in good conditions with the means you mobilize (personal contributions, loans, etc.). Regarding your financing, sufficient room for maneuvering is necessary to manage unforeseen events. Suppose you risk finding yourself in a difficult financial situation, whether at the level of your business or personal. In that case, it is best to find reliable solutions before embarking on the creation of your business.

How The Future Business Works

Finally, the last step is to define how your future business will operate. Before the launch, you must have planned as many things as possible to save time. The work is extensive. We address some crucial topics below to help you best prepare for your business creation.

The Place Of Exercise Of The Activity

You must have found your professional premises to make your business creation project a reality. Your needs depend on your project configuration. The premises you find may need to be fitted out. You must ensure that everything can be done according to your wishes and within your budget.

The Organization Of The Activity

You must define the operation of all the steps necessary to carry out your activity, from the supply of goods or raw materials to the management of after-sales service. At each stage, everything must be precisely defined. Here are some examples :

• For supplies: list of suppliers, prices, ordering terms, delivery times and terms, payment terms, etc.
• For stocks: storage area, inventory management, product location, etc.
• For sales: sales process (in-store, on your website, customer service, etc.), payment terms, delivery terms, etc.

Communication

To find your first customers, you must create a communication plan. This part is essential; certain elements can be prepared in advance (website design, pages on social networks, etc.). A communications plan prepared in advance can help you generate revenue more quickly.

Recruitment

As part of your business creation project, you may need staff from the start of the activity. In this case, recruitment must be worked on to be ready when the activity is launched: what positions will be filled? What are the typical profiles sought? How do you plan to distribute your job offers?

Recruitment is a process that can take a long time, so you need to plan. The company still needs to be created. However, this can be complicated.

The Creation Of The Company

Finally, you must prepare your business creation from a legal, tax, and social point of view. A prior meeting with a professional allows you to discuss essential subjects: legal status, taxation, social security system for the manager, creation formalities, etc. Depending on the specifics of your project, the business creation process may take time. This delay must be anticipated.

Also Read: How Is Technology Transforming Traditional Business Models?