Make a serious business plan that contemplates all possible scenarios. This is the fundamental preliminary step to creating a successful business. If it is not done carefully, either you get a magic wand or you are doomed to absolute failure.
The business plan must take into account the most difficult and the most favourable scenarios. And above all, it must review well – very well – what the initial level of expenditure will be. “How much money will it cost us to start the business?” This is the million-dollar question that must be answered for each of the scenarios.
And how is all this calculated? Sales are the big unknown, as it is difficult to get them right accurately. But there is another element that can be calculated: expenses. How much will the staff cost us? And the suppliers? And…? Calculating expenses well is vital to make a good business plan, and by extension, to start the business successfully. The initial investment must also be a very elaborate element, as significant deviations often occur.
Now is a great time to start a new business as banks are lending again. But there is no need to rush: first make the business plan and then set it up. And before all this, find out about the feasibility of the business project through a market study. Do we need a company, like the one we are thinking of? Will there be customers?
One of Gestingral’s customers spent weeks counting the people who passed through a point on the Rambla de Vilanova every day. A year and a half later, his restaurant business is a success. This was their market study.
