Field of Activity: learn how to define your company’s

Defining the field of activity has to do with the main activity that you will perform. It can be industry (where processing takes place), commerce (where products are sold) or services (where services are provided).

In this article, we show the step-by-step considerations made to define the line of activity, as well as decision-making tips during the process. Enjoy the text!  

Here you will see:

  • What is the industry?  
  • Step by step to define your branch of activity 
  • Examples of activity by branch: check 
  • Why think about the field of activity before starting a company?

What is the industry?

The field of activity is nothing more than the area in which the company will operate:

Industry 
The industrial segment is characterized by the transformation of raw materials into products to be sold later.  

Commerce 
Commerce is responsible for the sale of products manufactured by the industry. In this case, we are talking about stores, supermarkets, pharmacies, among others. 

Services
The third branch of activity is the provision of services. This segment does not deal with the manufacture or sale of any type of product, but with the supply of labor. In this case, it is possible that you are a professional who offers your work to the consumer, helping him with various questions and needs, or that you open a service company .

Step by step to define your branch of activity

First, you need to keep in mind the activity you would like to turn into a business, and then, when it comes to formalizing the business, you naturally understand the field it will be part of. It is not always so easy due to the processes of production, transformation and the differences between trade and services.

Still, there are a number of points that deserve your attention . And one of the main reasons is to seek to reduce the risks of your company not working out, whether for financial reasons or lack of public. Therefore, when defining your field of activity, you need to: 

“Think of a topic that interests you”
Whatever your reason, the most important thing is that you really like what you are going to do. to work. Remember that you, more than anyone else, will need to dedicate yourself to the maximum for your business to succeed. Considering that, there’s nothing worse than working with something that doesn’t motivate you to get up every day, do you agree? 

“be knowledgeable about the segment”
In addition to liking it, it is necessary to know deeply the segment in which you intend to act. Of course, many practices are acquired on a daily basis, based on mistakes and successes. However, it is very important that you know as much as you can about the activity you will be doing before starting. 

“know your target audience well”
Before making your company a reality, it is very important to verify, through research and observation, if what you intend to offer will, in fact, meet the needs of consumers. It is not uncommon for a person to have an incredible idea, but, at that moment, not find an audience to buy what is being marketed, either due to lack of consumer knowledge, because it is a novelty in the market, etc. 

“Analyze the competition”
Always seek as much information about your competition as possible. Here, we’re talking about going beyond just figuring out how many businesses in the same industry you’re vying for audience and space with. The interesting thing is to study the competition, know its strengths and weaknesses and, based on that, find differentials that make your brand more attractive to customers. 

“Look forward to the future of your business”
Another very important step in defining the branch of activity is to think about the medium and long term. But beware: the medium and long term for types of business vary a lot! For some, the average term may be three months and for others, 3 years. This means that your company needs to think about plans to meet the needs of people today and in the future with the same coverage.  

“calculate the appropriate investment”
The initial investment of a company consists of the value you need to have to make your business a reality. And there is not always a need to have all the capital to start. The important thing is to know where to look quickly when necessary and always keep credit in market conditions. It is important to note that starting a business with debt is not the best scenario for not compromising your company’s financial health at the start.

Why think about the field of activity before starting a company?

When opening your business, you need to consider some attributes so that everything starts in the most appropriate way possible. For this, we always recommend the support of a professional or accounting firm that can provide the necessary guidance, in addition to conducting the process with agility and safety, leaving your attention to the startup of your venture.

About Hassan Hassan

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