If you are seriously thinking about the possibility of forming your own company, you will already know that it will not be exactly easy. There are many aspects that you must take into account when creating a company,since unfortunately it will not be enough to have a good idea and have a great illusion.
In order to help you in the configuration of your company, in AYCE Laborytax we have created a post in which we comment on the 7 most common errors that occur when creating a company in Spain. Mistakes that in many cases are the main culprits of the failure of a company, of which you must take note to commit them when setting up your company.
1- Do not analyze the market situation
Creating a company without first defining a business plan or studying the market situation,is one of the main mistakes you should avoid making when creating your company. It is important that you know the market situation that you will have to face,in order to detect both strengths and weaknesses when making your business plan.
The more you study the market situation, the easier it will be for you to take advantage of the different opportunities it presents, and you will have a greater knowledge about your target audience,which will be the one to which you will have to direct your offer.
2- Failure in the choice of partners
Another common mistake, especially when it comes to the first experience on a personal level in the business world, is to fail to choose the partners who will accompany us in our project.
Many people make the mistake of partnering with friends, family or close people, because they have greater trust and affinity. But the problem is that trust and affinity, although they can be important factors, are not decisive in terms of boosting a business.
When choosing the partners of our business, we will have to base ourselves on professional criteria,such as training or experience, much rather than on choosing close people with whom we have confidence. If you want your business to go in the right direction, being well accompanied will be indispensable.
3- Mis-manage cash flow
The cash that is used when creating a company can be decisive,since as stated by the Spanish Association of Accounting and Administration of Companies, 82% of companies that fail, do so because they correctly manage the cash flow.
In order for this not to happen, using the general accounting plan for SMEs is the best option to keep a thorough control of the accounting,as well as to ensure that you comply with the different European regulations.
4- Do not admit mistakes
It is very likely that you will make some mistake during the constitution of your company. But the problem is not to make mistakes, but not to admit those mistakes or correct them in time.
Our recommendation to avoid mistakes, as well as to solve them in the right way, is that you surround yourself with experienced professionals who can offer you the best advice.
5- Obsess over fundraising
Obviously, funding will be fundamental to the future of your business but, becoming overly obsessed with fundraising is a mistake you should not make; especially if you turn to external funding.
It is important that you have enough liquidity to be able to create your company with guarantees, but if you obsess about generating financing from external companies or sponsors, greater than what you really need, it could make you not pay attention to other aspects that are much more important.
6- Have poor communication
Communication is a key factor for the success of any company,so it is essential that you pay it the attention it deserves.
There are many important aspects that you should not miss, such as branding,the corporate colors of your business, the design of an attractive and functional website, the management of social networks, promotion campaigns, diver, etc.
The better your company’s communication, the more chances you have of generating interest among the public and being able to differentiate yourself from the competition, which will result in an increase in customers.
7- Hire unqualified personnel
Please note that the staff you hire will depend greatly on whether your business can grow and enjoy good economic health, therefore it is essential that you take very carefully the interviews you conduct, as well as that you only hire qualified people, who have training and, if possible, who have experience in the sector.
Failing to hire your employees is a determining factor for your business, since in the end they will be the ones who will deal directly with your customers. It will depend greatly on your employees that customers can be satisfied and trust you again,or that on the contrary they have a bad experience and end up in the competition.
These are some of the main mistakes that occur in our country when creating a company, but there are many more that you should not overlook. The most important thing is that you have everything clear and perfectly studied before setting up your business, as well as that you surround yourself with qualified professionals who can help you take your company on the right path.
In AYCE Laborytax we put at your disposal our team of advisors for companies,who will be willing to help you, inform you and offer you the best advice in the preparation of your business. If you have any questions, contact us.