Are you planning to start your own business? Well you are not the only one. But, don’t get disappointed. Find out the right way to begin and achieve success.
Entrepreneurship has recently become a new passion to many in India and the trend doesn’t seem to wane anytime soon. With everyone leaping into the race, the major concern is what is the right way to get started and survive. Since being independent has recently changed its definition, new and small businesses are the new trend.
Whenever we wonder of starting a business, the very first thing we think of is the name, the tagline, logo etc. But do you think that’s the actual way to go about? Instead that is the most futile way you can start off! Instead of guessing around, follow the below checklist to actually transform your idea into a real entity.
If you are thinking of starting your own business, you are more likely to have an idea that you want to sell. If you are clear and confident about it, move on to check out the actual figures in the real world. Everyone thinks their startup to be unique and are quite satisfied with the theoretical assumptions they have created and that becomes a major downfall over time.
Instead, go ahead to validate your idea. Find your “WHY”. Look around and check if something similar is already in the market. Understand the target market and how they react. Understand your competition and market players. It is at this stage that you can easily modify your concept and pivot around, else things can be more complex as you start.
Summing up, ideate around these few but not limited to points: Concept, Finance, Competition, Market Size, Team Expertise. Working around these 5 things will help you create a strong idea of what you are going to face.
Once you have ideated and happy to go ahead, the very first thing to think of is a business plan. A business plan is more like a business guide specific to your own business guiding you step by step to build a successful business. It is a roadmap to your business.
A business plan does not just talk about the positive aspects, instead it also includes the negative pitfalls you might face and how you can iterate or pivot at the given point of time. Apart from that it also has the executive summary of the company, description of the products/services you are selling, the market analysis and strategy, the finances and so on.
You can learn more about preparing a Business plan here.
Starting your own business will definitely call for a cost. However fresh your idea may be or how much enthusiasm you may have and feel, it is to be validated in the real world and all that needs to be bootstrapped. Hence, the best part is to calculate the initial finances you need to invest before you start.
Before even taking the first step it is a mandatory part to define your runway. A runway can be easily calculate using the given formula:
Runway = Total Finance/Monthly Expense
The more the runway, the more stable your business will be. Once you are happy with the runway, calculate your break-even point. A Break-Even Point is the point at which the total expense and the total revenue is equal. It means no profit, no loss. It can be calculated using the formula:
Break-Even Point = Fixed Costs ÷ (Average Price – Variable Costs)
With these two simple calculations you can easily understand how long your business will struggle and when you can actually achieve the stability. But be assured that the practical game will have a bit more ups and downs.
With your ideation, planning and finance part done, you can now move on to register your business. Before you register you will need to choose an entity for your business namely sole proprietorship, partnership, corporation, limited liability company, one person company etc. Be enlightened that your business structure legally affects your taxation and other legal processes.
It is very important to understand which of the entities will be a good option for you in the long run. If by any chance you struggle in choosing one, it is always a good idea to discuss it with a legal or business consultant. The best way possible for a novice in the field is to look for Business Registration services in the local market.
Everything done till now is well and good but the most important part is building the right team with the right expertise. In case you are good at everything but don’t have a team to rely on, eventually you will get screwed.
The “people” element in any business needs to be given utmost attention to! Understand what your product/service demands and hire the right personnel for it. In case you are short on finances to hire the best available resource, go for a trade. You can trade in your company share/equity, or any other thing to get the best team around. Sleeping partners are also a good idea to think of!
Overtime, maintaining a good team connection can help you grow multifold in a limited span of time.
The above mentioned points are good enough to start with a new business and then one can opt for the branding, marketing, advertising and many other aspects. These can be outsourced focusing on the core business activities in order to save time and cost. For example one can always find best digital marketing agencies or best branding agencies around themselves to delegate their respective jobs
Starting a business is more about taking the thoughtful small steps rather than trying to leap ahead in little time.
In case you find it really struggling to manage and start with your new business all at once, you can always opt in for our small business consulting services.
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