Have you ever thought of doing a business but didn’t initiate it? Well, you are not the only one who wants to start a business but unable to because of any reason. Farsightedness and the money-mindedness of an individual are essential traits to becoming a good businessman. The word ‘business’ itself has a lot of weightage and responsibility attached to it.
People running businesses have unique or different perceptions of looking at things, which might seem complex to the rest. Thus, starting a new business should not be a hassle if you know what you are up to and what your end goal is. Below are some of the commandments that you must consider before starting a new business.
The Idea of becoming a Businessman
There is a huge difference between salaried employee and business professional with respect to work timings, work profile, lifestyle, public dealings, nature of investing, etc. Think twice before becoming an entrepreneur. Type of business you want to enter, its demand in market, size of business, investment required and annual budget are some of the factors that you must consider beforehand. If you are ready with the answers to all these questions, then you are ready to start your own business.
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Choose business as per your skills
Venturing into a new business requires skill set that matches the requirements of a business. People should initiate or invest in business that somewhere relates to their skill-set. Everyone is good at something or the other; one just needs to find the talent and work to improve, refine and polish it. Just to know yourself better perform a ‘SWOT’ analysis before planning to become an entrepreneur. Choosing a new field altogether is a complete risk, as you have to start from the scratch and beginning to gain experience of new field Is a different game altogether for a new business.
Doing proper research and market analysis
The most important factor that makes a business hit or a miss is the amount of research and market analysis applied to it. Make sure that the business you are entering has demand in the market and has not been exploited already by other businessmen. Find and check the competitors and their style of doing business. Keep a check on suppliers to fulfill the demand of your business related products, raw materials, machinery, equipment, etc. Track the cost and prices of the products already sold in the market and profit margin involved.
Checking on finances
You need to determine how much cost you will incur in starting a business. The next question you need to ask yourself is ‘Do you have appropriate funds to start up your business or you will require funding from lenders?’ if you need funds then applying for a business loan is the safest option. This step should be taken in advance as most of the startups fail to establish because they run out of money at initial stages of establishing their business.
Creating a business plan
Business plan should consist all the details related to your business. It’s basically a road map for bringing your business to life and further help in its growth. Business plan helps you to test the profitability and understand your financial needs. Further, if you wish to take a business loan for expansion purposes, well documented business plan is considered by financial institutions, including banks and NBFCs. Steps to write a business plan are available online for your better understanding.
Finalising a location
Location of a business is one of the most important decisions that an entrepreneur takes, as it directly results in the rise and fall of a business. Virtual businesses are not impacted by the location factor. However, to establish the physical presence of your business one must consider two things, that include, the relevance/requirement of their offering in the selected area and the proximity of the market/shopping mall for their prospective customers. It enhances networking opportunities and customer base.
Organising your business
Once the location is finalized and the rent agreement is signed (if applicable), then the next big thing is structuring your business by following the below steps:
- Naming your business
- Registering your business
- Opening a current account under company’s name
- Obtaining a TIN, PAN and GST number
- Choosing an accounting system
- Creating a website
- Opening accounts on social media platforms
These steps shall help you in organizing your business in a better way and scale up the business’s growth.
Start hiring staff members
You are the best judge in deciding the number of staff members you require to run business at entry level. Hire experienced and skilled staff for better efficiency, productivity and profitability. Depending on the size of the enterprise you can hire executives, customer care representatives, marketing experts, accountants, IT professionals, HR personnel and other professionals, as per the nature of the respective business.
Brand and advertise your business
Create a logo of your business that can help customers to identify it easily. People need to know about your business before purchasing goods or services from you. Use a logo on your website and social media platforms for better visibility of your business. Create a market plan and start executing the actions mentioned in it. This plan should also have certain budget to be exhausted for promotional activities for minimum 6 months.
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In order to stay in the market and earn profit you need to build associations with influential bloggers and ask for promotion in exchange of free/sample gifts or products. Associate with charity organizations and volunteer few products to make a mark. Collaborate with existing big brands in the industry for better growth prospects.
Have patience and keep going
At the initial stages of a startup business, focus more on sales rather than profit margin or breakeven. Most of the entrepreneurs quit because of lack of patience and focus. Remaining consistent is a tough task during initial stages of business, consistence breaks and focus is distracted resulting in losses. Therefore, it is always suggested to have patience and keep doing the hard work and results shall be rewarded when the correct time comes.
Best of luck with your venture !!