How to start a business? : Here is the answer. Sidney Sheldon, a well known American writer and producer, once said in his book ‘Master of the Game’ – “Business is a game, played with fantastic stakes, and you are in competition with experts. If you want to win, you have to learn to be a master of the game.”
Patience, perseverance, self confidence and a willingness to take risks are a few qualities required of a successful businessperson. “Higher the risk, higher the return” makes one thing crystal clear regarding the nature of a business: Uncertainty of future. Hence, the key to success in running a business organization is to avoid procrastination. You should be efficient and must have a quick decision making ability. Due to excessive fear of failure, you may miss out on some golden opportunities.
Successful entrepreneurs have the ability of inspiring and influencing their stakeholders. They are capable of building a relationship with their customers that is solely based on trust and value. Warren Buffett, an acclaimed market expert, rightly says, “Price is what you pay. Value is what you get.”
How to start a business?
In this article, I will be discussing about 10 vital steps involved in starting a business. So if you have strong business instincts burning inside you, it is time to shake the world and show what you are capable of. Yes, it is time to convert your dreams into reality. Know how to start a business by reading below steps:
1. Identifying a business idea
It is time for some introspection. Come up with a business idea that defines you and your personality. There are millions of ideas that can inspire you- for example, Virtual Assistant, App developer, Yoga trainer, Florist, Motivational Speaker, Salon Owner, Wedding Planner etc. Moreover, it is equally important to identify a business idea that perfectly suits your situation.
You can make a list regarding some ideas that you prefer the most.Think about your interests and decide if you wish selling services or physical commodities. Then delete the ones that don’t meet your set criteria. Choose the one that makes it to the top of your list.
2. Do some market research
Once you have identified a business idea, it is time to indulge in some research work and come to terms with reality. You must make sure that there is enough market demand for the product/service that you intend to sell. You can conduct a pilot survey to identify the target population for your product/service. Examine the results obtained sincerely.
If the need arises, you may have to change your business idea as per the market needs or you may have to find a suitable population for your product/service, which will require some more in-depth research.
3. SWOT Analysis
Next step involves identifying the Strenghts, Weaknesses, Opportunities and Threats to your business enterprise. Who are your closest competitors? What strategies will you adopt to beat the competition? are a few questions that have to be answered before you proceed further with your business plan.
Now, you must have a proper business plan in your hand that will serve as a roadmap for your business venture. This document highlights the essential basics about your business, products/services, target market. It also provides information regarding the goals that you have set for your business and how you plan to achieve those goals. Apart from a business plan, you must also have a marketing plan and a financial plan. Depending upon the scale of business (small scale/large scale), you must explore your financing options like small business loans, angel investors, crowdfunding or borrowing from friends and family.
You must plan your finances keeping in mind the entire cost of starting up the business (for example, take care of market research costs, licences and permits cost, branding and promotion, having the necessary stock of inventory, payment of legal fees and taking care of the grand opening events as well) and meeting the initial operating cost needs (like transportation, rent, salaries and wages of employees, travel and transportation costs etc.)
5. Choice of a business structure
This step involves deciding about the structure of your business entity. It may be a sole proprietorship, a corporation or a partnership. The choice of your business structure has an influence on your liabilities, profit sharing, your business name and your tax filing procedures.
You can contact a Certified Public Accountant (CPA) in order to discuss about the business structure that will best suit the needs of your entity. Moreover, you can even modify the business structure as it grows and expands further.
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6. A suitable location
One of the most important factor that will impact the performance of your business organisation is its location. It influences your sales revenue, cost of operating and profits. For example, a firm located on a busy street is more likely to attract customers.
7. Choosing a business name, motto and a tagline
Choice of a business name must be such that it reflects product superiority. The business logo basically becomes the face of your product/service. Customers identify and associate themselves with the business logo.Your motto must show your firmness to deliver on quality.
This is a crucial step in the direction of building a goodwill. Make sure that the tagline you choose is instantly appealing and strikes a chord with your customers.
8. Registration of your business name
After choosing a business name, it is very important to make sure that it is not currently in use. Registration of the business name of a sole proprietor can be done with their city/town clerk.
After registration the sole proprietor will receive an Employer Identification Number. Whereas, corporations/partnerships register their business after formation paperwork is filed. For more information you can visit the website cleartax.in.
9. Get licenses and permits
Depending upon the location and type of business, you must apply for the required licenses and permits accordingly.
10. Get Started
Lastly, you have to begin with the recruitment of employees. Hire an accountant to help you out with the firm’s budget creation and management needs. And finally it’s time to promote your business! For the promotion of business, you must have a proper marketing plan with yourself. Hold meetings with your marketing panelists and come up with the USP (unique selling point) of your product/service. It is the USP that will make your product competitive against the rival firms in your industry.
Hence, it is very important for entrepreneurs to remember the golden rule of business: You should have a pragmatic approach towards all the problems that come your way. Another essential quality business people are expected to possess is judicious use of resources, proper delegation and decentralization of tasks to maximize the profits of the firm. Moreover, this is not the end. All the qualities that make an entrepreneur successful will evolve over time as the business grows and progresses.
A Tip: Time is Money. Cash is the King. Make sure to use them cautiously.
Best of luck to all the budding entrepreneurs. Hope you find this article useful. Thank you.
Author: Manasvi Nagpal