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Entrepreneurship arises from the need or vision to seize a business opportunity. Regardless of the situation, the business has the potential to prosper if it starts operations with everything in order.
The opening of companies increased by 8.7% in Brazil in 2020, according to a survey carried out by SerasaExperian. Growth is a record for the historical series, started by the entity in 2011. There is another data that also reached the highest level ever recorded last year: the average unemployment rate, which reached 13.5%, according to the Brazilian Institute of Geography and Statistics (IBGE). The relationship between the two pieces of information is direct and reveals that many Brazilians resorted to entrepreneurship out of necessity.
In less than a year, part of these businesses will have closed their doors, a proportion that will grow over time. A study carried out by the IBGE between 2008 and 2018 shows that 18.5% of companies close their activities before completing one year. In five years, only 47.5% of businesses survive. In only 25.3% they reach the tenth year. In other words, for every 100 projects opened, only 25 complete 10 years of activity.
“We observed very large mortality statistics among companies, especially at this time”, comments the president of the Union of Accounting Services and Advisory Services, Expertise, Information and Research in the State of São Paulo (Sescon-SP), Reynaldo Lima Jr.
The director explains that the main factor that contributes to business failure is the lack of planning, which, preferably, should be done even before the opening of the company.
“The first step that we guide is to look for a specialist (and what we recommend is the accounting professional) to help build a business plan”, he highlights.
For those just starting out, this measure can be seen as a cost, but this care has the potential to save resources and avoid spending on mistakes that could have been avoided. The legalization of business is another indispensable step, but Lima clarifies that this procedure, in itself, is very simple and quick. Being a low risk business, a business, for example, that has all the documentation in order, it is possible to open it in one day in the State of São Paulo.
When starting the business with everything legal, the entrepreneur does not have to chase what he did not do and will be charged in the future.
The president of Sescon-SP says that it is common for entrepreneurs to arrive at accounting offices with the business idea ready and with some investments already made.
“We even managed to get around some things. There is the one that already set up the company, found a way, but then we have to fix its formatting. And there is one that is already working and, sometimes, it is necessary to wait to change the form of taxation because the activity is wrong. In the end, there is a way, but these mistakes cost money,” he warns.
The executive director of Zaros Escola de Negócios, Simone Zaros, often tells her entrepreneurial students that “one hour the bill arrives”
Following all procedures and good practices related to setting up a business is the best way to succeed and focus on what really matters: business strategies. The beginning of a company’s activities requires that it go through some steps and procedures, such as planning, market research, product or service formatting, public assessment and business legalization. “A microenterprise partner starts in the grip, perhaps because of a need, but he has to keep in mind that he will have to clean up the house afterwards – and if he does this as soon as possible, it is much better and generates more effective and lasting results”.
The main guideline for this phase of the business is to seek support from professionals. Zaros recommends the support of “a reliable accounting firm, which will check which category this company falls into (MEI, Simple, Presumed Profit, etc)”
She emphasizes that it is important to redo this analysis of compliance annually so that the company is always legal, but guarantees the best tax conditions.
Another recommendation is regarding the opening of trademarks and registrations, with the support of a lawyer specialized in the area.
What does the entrepreneur gain by starting the business with everything legal? “First, he goes to sleep with a clear conscience, instead of worrying about fixing things up here or there,” Zaros replies. “In addition, it will focus on the development of the service or product.
You will be looking at the Blue Ocean, at the opportunities. Spending and investing energy for growth, and not chasing something that was left undone and that will be charged in the future”, he concludes.
With more than 30 years of experience, Conmax is a benchmark in the Business Opening processes and in the Audit and Consulting Processes, which integrates the Accounting, Tax and Financial activities.
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