Establishing a new business can be a daunting task. While it's important to put much emphasis on the fulfilment of the legal requirements for company registration, the planning and execution of other elements in company incorporation shouldn't be taken lightly. This includes choosing the business location, obtaining financial resources, hiring employees among other factors.
Lack of due diligence in the planning stages can have dire consequences. Careful planning should be carried out so as to dodge the common pitfalls.
Compare terms and conditions for business loans
Establishing a business requires adequate funding and often small businesses are financed through loans. Entrepreneurs must take into account all their financing options to avoid difficulties in the future. Taking small loans may lead to the businesses taking up multiple loans in the long run. This holds the risk of the business faltering on loan payments. The mounting debt would result in unpaid bills and difficulties meeting installment payments. When weighing out the finance options available for your business, comparing the different offers different banks have for businesses of your size is vital, considering you are opting for a traditional installment loan. Foreigner entrepreneurs looking to start a small business in Switzerland should make arrangements concerning their financial resources beforehand.
Check premises and location
The choice of business location and premises should largely be influenced by the type of business activity to be carried out. The location of the shop, the office or the production site must provide a suitable environment for operations. The following questions can be relevant in making the decision:
- In terms of accessibility for the customers, is the business location directly in the city center, or rather outside?
- Is it a service that can be organized, planned or carried out mainly through telephone contacts, the Internet and other means of communication?
- Is it a brick-and-mortar business that needs to be within walking distance of the city’s center and in a good location in the city?
The questions presented above and other relevant factors should be taken into consideration. If possible a thorough environment analysis can be carried out be carried out in advance for this purpose. This can be used to avoid situations such as opening two more shops on the same street or right next to your direct competitors. The smart business strategy is to fill a market gap not covered by any competitor. This increases the chances of a successful start for the business.
Don’t start a business without having a solid plan
A business plan is a vital instrument in planning your business. Creating a business plan is the first step when starting a business or carrying out any business activities. The good business plan does not only contain a viable business idea, but also answers the following important questions:
- Where should you establish your company’s offices?
- In which Swiss cantons are there more favorable tax rates for your business?
- Can you run your business alone or do you need to employ people right from the start?
- What is the total cost, including rent, production costs, and personnel costs?
These are just a few of the questions that should be addressed in the planning stage of the business in order to make implementation of the business plan systematically successful. If these and other questions that will affect your business in the near future can be successfully addressed and answered with certainty, you stand a chance of establishing a business that will make it past the initial stages new businesses go through.
For more details and assistance regarding company formation in Switzerland, feel free to reach out to our expert consultants. Our highly experienced and well-informed team is ready to answer all your questions and give you all the help you might need.