According to a report by the Argentine Association of Entrepreneurs (ASEA), only 2 out of 10 startups in that country survive beyond 5 years.
In Colombia, the Colombian Confederation of Chambers of Commerce reported that 66.5% of businesses in that country do not survive more than five years.
In Mexico, 75% of new businesses will close shortly after 2 years, according to data from the National Institute of Statistics and Geography .
To prevent this from happening to your business, we are going to review what you should consider before creating a company .
Define what you are going to sell
First things first: what are you going to offer the market? Remember that you can have an idea in mind and start with its minimum viable product , that is, the one that meets the fundamental attributes to start selling it until you can improve it.
To answer the initial question, we suggest you evaluate each of the points below. Depending on the answers you get, you will be closer to defining what product or service you could sell.
Market demand : Find out what consumers are demanding today. If there is little supply of it, you already have an indication!
Skills and knowledge : Do you have any particular skills? Do you know a lot about a topic? Considering these factors can help you make whatever you decide to sell stronger.
Profitability : Opt for items or services that have a high enough profit margin to make your business profitable .
Passion : Choose something you number data are very interested in and passionate about to make it easier and more motivating to work on your business.
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Research the market
Once you have defined what product or service you are going to offer, it is time to research the market you want to enter.
We can define market research as the process of collecting, analyzing and evaluating information about a specific sector .
The objective of the research is to understand the size of that market, who its consumers are ( buyer persona ), its trends, main competitors and potential suppliers (along with the negotiating power you will have with them).
What are the sources of information used to carry out the research? In general, there are usually two:
Primary source : includes data collection through surveys, interviews and focus groups that you conduct yourself.
Secondary source : includes the review of information available in public or private sources.
Market research is essential to making informed decisions about starting a business and ensuring its long-term success.