WAYS IN WHICH A NEW COMPANY IS BORN.

WAYS TO BECOME AN ENTREPRENEUR

Accelerate your business with these expert tips on "Ways to start a new business". Analyse and discover this TIP!

Setting up a new business is an exciting but challenging task. In order to be successful in the process of setting up a company, it is important to know the different ways in which a business can be started. In this regard, mentorday offers a useful guide detailing the different ways to start a new company

DIFFERENT WAYS OF STARTING A NEW COMPANY

Setting up a company from scratch

Setting up a company from scratch is the most common way of setting up a business. It involves starting with an idea and developing a business plan, raising finance, setting up a business structure and getting the business up and running. This form of business start-up is ideal for those who want to start with an original idea and have the skills and resources to see it through. It may also be the best option for those who wish to maintain full control of their business from the start.

To start with this form of business creation, it is essential that the entrepreneur has a clear and viable idea. It is important to research the market to identify the needs of the target audience and determine whether the idea has market potential. Once the idea is clear, it is important to develop a solid business plan that includes a description of the product or service, target market, financial analysis and marketing strategy. Finally, it is important to secure financing to get the business off the ground.

Acquisition of an existing company

Acquisition of an existing company is a way of creating a new company that will involves the purchase of a company that is already in operation. This form of business creation can be a good option for those looking to enter an established market and build on the experience and customer base of the existing company.

Before acquiring an existing company, it is important to carry out a careful assessment of the company. It is necessary to review its financial statements, get to know its employees and customers, and determine its position in the market. It is also important to take into account the costs associated with the acquisition, such as the purchase price and legal costs.

Franchise (see+)

A franchise is another way of creating a new company by adopting an existing business model. By acquiring a franchise, the entrepreneur obtains the right to use the name, products and services of the parent company and receives support in setting up the new company.

To get started with this form of business start-up, it is important to research and choose a franchise that is successful in the market. Once a franchise is chosen, it is necessary to follow the rules and procedures of the parent company and pay a fee for the use of the franchise.

Joint venture

A joint venture is a collaboration between two or more companies to create a new company. Each company contributes resources, skills and knowledge to the success of the joint venture. This form of business creation is ideal for those looking to leverage the expertise and resources of other companies to create a new venture. Before creating a joint venture, it is important to establish a clear agreement defining roles and responsibilities.

Start a company by copying (see+)

Business creation by copying refers to the creation of a business that is based on an existing business model. Instead of developing an original idea, entrepreneurs copy a business model that has proven to be successful in the market. The advantage of this form of business creation is that the business model has already been tested in the market, which reduces the risk for the entrepreneur. However, the disadvantage is that the copying company may face legal problems if it copies a business model protected by copyright or intellectual property.

Creating a company by spin-offs (see+)

The creation of a spin-off company refers to the creation of a new independent company from a parent company. The new company is created from an existing technology, product or service of the parent company. This form of company creation can be a good option for companies wishing to diversify their business portfolio and focus on their core business. The parent company can also benefit from equity participation in the new company.

Acquisition-purchase, leveraged buy out

Acquisition of an existing business can be an effective way to create a new business. Acquisition can involve buying a company that is already in operation or acquiring a part of an existing company. In a leveraged buy out (LBO), buyers use financing and debt to acquire an existing company. The advantage of this form of business creation is that the company already has a customer base and an established position in the market. However, the disadvantage is that the acquisition can be costly and there may be problems with the integration of the acquired company into the new company.

Intrapreneur (see+)

An intrapreneur is an employee of a company who uses his or her creativity and entrepreneurial skills to develop new products, services or processes within the company. This form of entrepreneurship can be a good option for employees who wish to develop their entrepreneurial spirit and work on creative projects within the company. The company can also benefit from the innovation and entrepreneurial spirit of its employees.

Looking for opportunities in your environment (see+)

Looking for business opportunities in your environment can be an effective way to create a new business. By observing your environment and the needs of the people around you, you can identify business opportunities. For example, if there is an unmet need in your community, you can develop a product.

• Hobbies and interests.
• Inventions.
• Changes in age pyramids.
• Copying or transferring ideas from one country to another.
• Changes in lifestyles.
• Urban sprawl.
• Welfare, culture and leisure.
• Other sources of business opportunities.
• Innovations (see+).
• Technological changes.
• Pivoting (see+).