Business program managers offer their launch and maintenance tips
Starting their own business is the dream of some innovative Puerto Ricans, and thanks to the availability of various tools and assistance programs, the number of entrepreneurs in Puerto Rico has grown in recent years.
What should be taken into account? Should the local market be measured? All these questions were explained by experts consulted by W JOURNAL.
Patricia Ramírez Gelpí, program manager of the Grupo Guayacán, said that the first thing to consider when establishing a small or medium-sized business is the availability of a market in the local area. In her opinion, a common mistake is that entrepreneurs tend to open their business without observing how many businesses currently offer the same product.
“It’s one thing to see, observe, or have that need personally, and quite another to go out and explore whether the market actually exists, whether there’s someone willing to pay us money for that service, for that product we would be offering. That’s one of the areas where entrepreneurs typically fail. They have an idea, and they start and set up the business. But they don’t necessarily take the time and resources to make the business work beforehand,” she said.
Likewise, Ramírez Gelpí said that the personal, professional, and legal steps involved in setting up the business and registering it in order to start generating income must be considered.
“There are many legal things that need to be done, and generally speaking, there are certain things that must be done in a certain order,” she added.
For his part, Samuel Merced Matos, associate director of Colmena66, reported that one of the important factors for establishing a business includes maximizing incentives that allow personal savings to be used for emergencies instead of basic operating expenses.
“We always advise them to start by researching the available grants and incentives so they don’t have to incur expenses,” he commented.
Challenges and Duration
When starting a business, there are always challenges. According to Merced Matos, the initial phase—or the business plan—is an area that can typically be one of the most uncomfortable processes.
“Many entrepreneurs find it difficult, and there have been cases where they delegate this responsibility to different advisors, consultants, or people who tend to offer writing or business plan services. But it’s very important that they are involved in every step. Nobody knows their business idea better than the person starting it, so whether they participate in a mentoring program, are assisted by a non-profit organization, or are paying someone, the first mistake they shouldn’t make is distancing themselves from that process,” he explained.
Merced Matos reported that the most difficult period for entrepreneurs is their operational phase, between one and three years, where she sees the greatest decline in businesses due to loss of funds and the need to maintain employment, among other things.
On the other hand, Ramírez Gelpí added that the evolution of the business design is an important factor in the continuation of operations.
“We have many companies that are successful precisely because they are constantly listening to the customer, understanding their needs, and making adjustments to their business, services, and products. Based on what they hear from the entrepreneur, they will be open to adapting to new realities or pivoting as needed. That is what truly allows those who prosper, those who can, to continue, those who keep reinventing themselves,” she mentioned.
Puerto Rican Business Market
According to Merced Matos, most Puerto Rican companies focus on offering online services, which connects the Covid-19 pandemic to a boost for the business world, as well as professional and creative services.
Ramírez Gelpí, for her part, opined that the niche of entrepreneurs depends largely on current trends.
“From what we see, and from my experience in the programs, one would think that everyone is more focused on technology and artificial intelligence. And yes, a large segment is directed toward and wants to establish businesses in that area. But there is also a large segment of entrepreneurs who are moving into hospitality services, agriculture, planting, land cultivation, community development, and much is also focused on developing the human capital of future generations, developing programs and services aimed at future generations,” she concluded.
As originally reported by: WJournal by El Vocero