What are the steps to follow for an American entrepreneur who wants to open a start-up in Italy? First of all, it is worth mentioning that start-ups are companies that involve an innovative and different business model compared to what is already present on the market; in addition to that, the definition of start-up can only enclose realities that were born less than five years ago.
An accurate strategy is essential not so much to establish a startup, but to ensure that it can be successful over time: in many cases, market saturation and excessive costs prove to be unexpected and insuperable obstacles.
How much money you need to open a business in Italy
An American entrepreneur who chooses to establish a start-up in Italy must be aware of the costs that will arise, starting from the pre-seed, i.e. the initial phase. These are the necessary expenses to set up and start the business, as well as to ensure its development; expenses that turn out to be inevitably higher than revenues initially.
At a later stage, when the strategic choices made are rewarded by the market, the tide turns; at least at the beginning, however, expenses will be higher than incomes. In fact – as suggested by Damiani&Damiani International Law Firm, expert in legal advice for foreign companies in Italy – in order to open a company in Italy it is necessary to take into account tax practices, registration with the Chamber of Commerce, licenses and authorizations.
Further costs are those connected to the constitution and launch of the start-up, as well as those related to the payment of experts and professionals providing advice and, of course, the employees. It is not just about salaries, but also about insurance policies, social security contributions, and so on.
Moreover, it might prove necessary to buy or rent materials, equipment and venues that are essential for carrying out the operations.
In short, it is essential to plan a business strategy that pinpoints the exact market objectives to be achieved by the company in a given period of time, and identifies the expenses that must be taken into account to achieve those objectives.
To sum up, the stereotype according to which a brilliant idea is enough to run a start-up should be put aside, as much more is needed to really affect the market. The dream fueled by a passion and the stubbornness arising from the awareness of having a winning intuition are of little use if the potential of the business idea that has been born is not properly addressed.
Only after feasibility has been ascertained can the numerous tools needed to ensure that the idea is realized be sought and used.
An entrepreneur coming from a different reality such as the US may not possess a perfect knowledge of the Italian market. They are then required to analyze both the practical prospects of what the market offers and the characteristics of the market itself.
The point is understanding whether the services and products placed on the market are truly innovative and differ in any way from the competitors’. There would be little point, for example, in investing in products that will never be able to conquer a specific market niche: for this specific reason, a preliminary survey among those to whom the products or services are intended is needed on one hand, and a research about the competitors is needed on the other.
Competitors must be evaluated not only in light of their products and prices, but also of their turnover, social networks strategy – in short, everything that can be useful to examine their work.
Italian partner and business partner
Entrepreneurs coming from the US market are well aware of how important it is to choose a competent team of collaborators and to be surrounded by attentive and precise professionals in order to achieve the business’ objectives.
When creating a start-up, specifically, it is essential to be able to make an accurate selection of the team that will form and become part of the structure. Whether it is employees or external professionals, it is crucial that the philosophy of the start-up is fully embraced by everyone; and the same applies – even more so – to the shareholders, who invest their time and money into the project.
A startup cannot come to existence without a suitable business plan, that is, a detailed program of its development starting from its foundation until the launch of its products or services on the market.
The business plan, on the other hand, is not a static reality, as it can be updated and changed over time, so as to continue to constitute the starting point for the definition of future business strategies.
How to write a business plan in 6 simple steps
A business plan is a written document that includes a company’s strategy and goals. It also includes relevant information about the company, such as information on its products, the Italian market competition and finances. Here’s how to write a business plan in 7 simple steps:
- Define the purpose of your business plan
- Know your target audience
- List your goals
- Identify possible risks and threats to the success or sustainability of your business
- Choose the appropriate module for your business plan (such as SWOT analysis)
- Write an executive summary for your plan so that it can be easily understood by readers who are unfamiliar with its content – this will include a brief introduction to what you do and what you produce
Marketing and sales strategies
Marketing and sales are two of the most important aspects of the business. Marketing in Italy is very important and is responsible for customer acquisition. Sales are responsible for concluding agreements. If you want to increase your sales, you need to improve your marketing.
This section will provide some information on how to do this. There are many ways you can optimize your marketing and sales strategy. The first thing you should do is find the right market for your product or service to sell in Italy.
You should also make sure you have a good conversion rate on your website and know how to use analytics to improve it. You can also improve your marketing strategy by making sure you have a strong social media presence and be able to communicate with other companies about potential partnerships or collaborations.