How to start a business
There are more than 42.5 million small businesses in India.When you consider some of the most popular reasons to start a business, including having a unique business idea, designing a career that has the flexibility to grow with you, working toward financial independence, and investing in yourself — it’s no wonder that small businesses are everywhere.But not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years. So you may be in for a real challenge when you decide to take the plunge, ditch your day job, and become a business owner.
Starting a small business is without a doubt a large undertaking, but it is fortunately something that can be attained by anybody with a good idea, a strong work ethic, and a good set of resources. Starting a business involves thinking of a business concept, writing a business plan, understanding the financial side, and finally marketing and launching.
The stage is often set in the beginning, so making sure you follow all of the necessary steps when starting your business can set the foundation for success.
Here are some steps that are required to start a business successfully. Take one step at a time, and you’ll be on your way to successful small business ownership.
Step-1 DEFINE YOUR TEAM👬
Will you do this alone, or will you bring in one or two trusted friends to join you? This brings a lot of synergy to the table, as people bounce ideas off each other. Two people together can often create something that is greater than the sum of the two separate parts.
- Think of some of the biggest success stories in recent times, such as John Lennon and Paul McCartney; Bill Gates and Paul Allen; Steve Jobs and Steve Wozniak; and Larry Page and Sergey Brin. In every case, the partnership brought out the best in both sides of the equation.
- Think about the areas that you are either weak in, or have little knowledge of. Finding partners compatible with your personality who can fill in your knowledge or skill gaps is an excellent way to ensure your business has the resources you need to succeed.
Step-2 Choose a idea💡
It might be a product you’ve always wanted to make, or a service you feel people need. It might even be something people don’t know they need yet, because it hasn’t been invented!
Step-3 Make a plan🤓
You need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses.
The good news is that there are different types of business plans for different types of businesses.
If you intend to seek financial support from an investor or financial institution, a traditional business plan is a must. This type of business plan is generally long and thorough and has a common set of sections that investors and banks look for when they are validating your idea
Step-4 Plan a finance💰
The financial statements translate your marketing and operational plans into numbers — profits and cash flow. They identify how much money you will need and how much you might make. Since this is the most dynamic part of your plan, and perhaps the most important for long-term stability, you should update this monthly for the first year, quarterly for the second year, and then annually after that.
- Cover your startup costs. How are you going to finance your business initially? The bank, venture capitalists, angel investors, Small Business Administration (SBA), your own savings: these are all viable options. When you start a business, be realistic. You will probably not roll out of the gate making 100 percent of whatever you project, so you need to have enough ready reserve to fund things until you are really up and running. One of the surest roads to failure is under-capitalization.
- What price do you intend to sell your product or service for? How much will it cost you to produce? Work out a rough estimate for net profit—factoring in fixed costs like rent, energy, employees, etc.
Step-5 Get license and permit📃
Paperwork is a part of the process when you start your own business.
There are a variety of small business licenses and permit that may apply to your situation, depending on the type of business you are starting and where you are located. You will need to research what licenses and permits apply to your business during the start-up process.
Step-6 Set your business location🏗️
Setting up your place of business is important for the operation of your business, whether you will have a home office, a shared or private office space, or a retail location.
You will need to think about your location, equipment, and overall setup, and make sure your business location works for the type of business you will be doing. You will also need to consider if it makes more sense to buy or lease your commercial space.
Step-7Marketing your business📉
If you’re selling online, get your ecommerce in gear and either build a website, or have one built for you. It’s your storefront, so anything and everything you can do to make people want to visit, and want to stay, do it.
- Alternatively, if your business is more oriented toward the “in person” experience, traditional marketing may be just as important. For example, if you’re starting a landscaping business, focus on getting the word out to neighbors before starting a website
- When making a website keep in mind that simplicity and clarity are key. A simple design that clearly states what you do, how you do it, and what you charge is most effective. When making your website, remember to emphasize why your business is the best solution to a clients problem.
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