When starting a business, the entrepreneur must consider many factors. Information on the market where it intends to act, segment analysis, knowledge of management practices, target public recognition and focus on the customer and predisposition to face challenges are some of these factors that, together with certain indispensable individual characteristics to any entrepreneur, will be able to define the success or failure of the business.

Indispensable characteristics to a good entrepreneur

• Initiative.
• Innovative capacity.
• Persistence.
• Disposal to run calculated risks and to assume challenges.
• Compromising.
• Permanent search for the quality of your businesses.

Support to the entrepreneur

In 1999, the Federal Government created the Programa Brasil Empreendedor (PBE), in order to encourage the development of small or medium-sized enterprises (SMEs), searching the insertion of the entrepreneurs in the formal sector of the economy, as well as the creation of new businesses.

The Program has national scope and involves the coordination and the joint of many actions and programs of public and private agents. It is a Plan of Integrated Actions of the Federal Government, that has as main objectives the qualification, the credit and the assessorship for companies.

Sebrae (Brazilian Micro and Small Business Support Service) qualifies entrepreneurs and seeks sustainable development conditions for small businesses. Sebrae is a great partner of the small Brazilian entrepreneur. It is a non-profit private institution, supporting the development of small-sized business activity, a result of the union of both the public and private sectors, and the country's main fostering and research entities. The coordination of its actions and policies is carried out by the National Deliberative Council, made up of more than 350 institutions represented by the government, business entities and educational and research institutions.

Sebrae is always seeking innovations, partnerships, developing strategies. In short, it works as a great articulator, motivating and catalyzing different social and economic segments in favor of micro and small enterprises. Sebrae acts in different fronts highlighting the following sectors: Training, Credit and Capital, Entrepreneurial Culture, Local and Sectorial Development.

For more information, see Small Businesses.

Business Plan

Establishing a comprehensive and thoughtful business plan is essential for the success of the new enterprise. The four basic elements for the creation of a business plan are:

1) Concept of the business.
2) Basic functions of the business.
3) Plans of action.
4) Budget.

Concept of the business

Analysis	Decisions	Notes
Market: What is the market for the business, how it is and how it functions?	Potential market: Who are the potential customers for your product or service?	The essential is to attend a selected small part of the market. This choice is very important.
Competition: Who are the competitors, what they have of good and bad qualities?	Competitive position: How will I survive to the competition? What will I offer to my clients allows the survival of my business?	It is essential to find a position for the new company inside the competitive market. Price? Quality? Services? The entrepreneur must search for its proposals.
Productive system: How is produced this type of product/service?	Productive formula: How will we produce?	We have to consider the ways normally used and find our particular way to produce.
Organization: How the others are organized to operate this type of business?	Organization formula: How will we organize ourselves?	Observing the organization of other companies, we will decide how we will organize ourselves.
Propagation and sales systems: How the others make marketing, that is, they divulge their business and sell their products/services?	Propagation and sales formula: How will we make the propagation and sell?	We will observe forces and weaknesses of other people before deciding what to do.
Other aspects: Other important aspects of the companies that operate in the market.	Other characteristics: Characteristics of the company related to these aspects.	It is important to consider that any business has its peculiarities.

Source: Portal Geranegocio

Essential functions of the business

Essential functions	Essential Questions
To produce	Where will I get the raw material? How much will it cost? What are the conditions? Which equipment will be necessary? How much we will have of supply of raw material and finished products? Other questions about production: quality control, packing, transportation etc.
To sell	Who will sell and how? What will be our basic proposal to the Customer? What will we offer in relation to terms, credits and services? How will we act with resellers and representatives? How will we divulge our products/services? Other essential questions about sales: seller's remuneration, expense allowances, transportation etc.
To organize and control	How many people are necessary to manage the business? What are the basic functions? How will we pay? Who will make the supervision? What are the basic activities of each one and how will they execute them? Other essential questions of organization and control: archives, documents, and forms.

Source: Portal Geranegocio

Plans of action

1. Essential activities = What do we need to do to establish a new business?

2. Schedule = When will we execute each one of these activities?

3. Responsibilities = Who will take care of this?

Source: Portal Geranegocio

Budget

Essential questions	1. How much will we invest to establish the new business?
	2. How much this business invoices and spends per month?
	3. Consider since the business implantation to the business operation, what will be the accounts payable and accounts receivable?
Three types of budget	1. Budget for investments
	2. Operational budget
	3. Cash budget
Budget for investments(investments to establish the new business)	1. Make a detailed list about all the investments that will be made to put the business in operation. This list usually includes the following: - Expenses with the new business register - Expenses with the accountant - Repairs or improvements in the property - Equipment and machines - Office supply - Raw materials or products for the initial supply - Cash reserve - Furniture and utensils
	2. Put the values in the front of each item.
	3. Analyze this list carefully, check if the expense is really necessary, if it cannot be postponed or reduced.
	4. Define how much you will spend.
Operational budget(forecast about revenue and expenses of the new enterprise)	1. Calculate how much (amount and price) you expect to sell. To do this, ask, use the discernment, reflect, analyze other businesses and ask for help of experienced people.
	2. Calculate how much you will spend to produce/sell this amount of product/service. Include here only those expenses directly involved with the product or service, those that vary according to the production and sales. The expenses that vary according to production/sales use to be the following: - Raw material - Packing - Direct taxes - Commissions on sales Note: Expenses as hand labor, energy and water must not be considered, because in the small company they occur independently of the production/sales.
	3. Now calculate the monthly expenses that the enterprise will have. Those non-postponable and independent of production/sales accounts are fixed costs. In general, the list of the fixed costs includes: - Rent - Wages - Accountant - Fixed taxes - Telephone, water, energy
	4. Now, make the deduction: Sales (item 1) - changeable costs (item 2) - fixed costs (item 3) = the result (profit/loss).
Cash budget (cash in and cash out)	1. Make a list of all payments and receipts to be done.
	2. Check the cash balance before the first day and from then on make calculations: cash in + balance of the previous day - cash out = balance of the day.

Source: Portal Geranegocio