Mostly everyone in this world atleast once in their life comes across this question ie. ” how to start a business “. So, here are proven step’s which are proven to help entrepreneur’s build a business empire.
A business is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transacts business activities through the production of a good, offering of a service or retailing of already manufactured products. A business can be a for-profit entity or a nonprofit organization that operates to fulfill a charitable mission.
Read more: Business http://www.investopedia.com/terms/b/business.asp#ixzz4kB1LnD3h
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1. DO REASEARCH
The first thing which every entrepreneur does before starting any business is to check the sustainability of that business by checking the sustainability I mean he does some research in the market regarding the demand and supply and various other factors which gives an approximate of the sustainability of business in future.
Basically by this we mean that we have to consider all the factors before deciding the field of business
We should ask ourselves certain questions like
- Is there any demand in the market for our product
- Is the consumer ready to pay the price we want for a product
- Where will the funds come from and at which rate of interest
- Detail study about the competitors and their offerings
If the answer of these certain questions go in our favour then we can decide to go to the next step but if the answer’s doesn’t go according to our will, we should find out a way so that we don’t regret once the business is started.
see this video for some STARTUP IDEAS
2. CREATE A BUSINESS PLAN
A business plan is a written document which includes the detailed idea of the business.
It includes basically every detail of the business, it shows that what the entrepreneur has in his/her mind and how will he be conducting the business activities and how he plans to execute each and every plan.
A business plan should include certain factors like –
Basic business strategy –
In this. You will cover up the basic idea of how you think that you will carry on your business activities in this point things need not to be mentioned in detail its just about basic overlook about the business organisational structure.
Specific actions when something happens
In this you will cover up your idea of how to tackle certain situations in the business when they occur.
For example if your business is not able to generate profit so how would you handle it
or if, your business is going through financial crisis,
So how you aim to tackle that situation..??
Advantage of your product over the competitors
This is a very crucial. As this will be the deciding factor that whether your business will be a profitable one’s or not.
Customer wants something different and unique every time from a new company otherwise they would not be satisfied from your product.
You need to be very creative and think of an idea which will provide the customers are unique product that too at cheaper price from your competition.
If you are able to provide that value to your customers then half of the battle is won.
Here, you will decide the market you wanna do business in.
The markets should be decided after long research as these market’s will provide you the demand for a product.
Deciding the wrong market can also lead to serious situation’s in business.
Criteria of selecting the staff
The criteria should be decided with utmost attention because this will decide the quality of our employees.
This selction process should be developed in such a way that only those people are selected who fit in our criteria and are willing to give the 100% to the company.
If this stuff goes well then, only energetic and fully dedicated work force could be established which will lead to improve in overall efficiency and effectiveness of the business operations.
Make it legal
This is a very important step as even if everything goes according to your desire but there is some legal constraint left, then there would be no benefit of all your hardworked plans.
The first step is to make sure that the name you give to your business is legally correct.
By legally correct timing it should follow these rules –
- It should not be exactly same as any other companies name
- It should not hurt the sentiments of any religion caste or community
- It should not disrespect or miss guide your consumers in any way
- It would also be very beneficial if your company’s name itself gives an idea about what your company provide
Your business rules and regulations should be according to the guidelines of the Companies Act 2013
Types of business formations include:
Spend some time getting to know the pros and cons of each business formation.
3.ARRANGING THE FUNDS
According to a recent study, over 94% of new businesses fail during first year of operation. Lack of funding turns to be one of the common reasons. Money is the bloodline of any business.
The long painstaking yet exciting journey from the idea to revenue generating business needs a fuel named capital. That’s why, at almost every stage of the business, entrepreneurs find themselves asking – How do I finance my startup?
5 WAYS TO RAISE FUNDS FOR YOUR BUSINESS
Self-funding, also known as bootstrapping, is an effective way of startup financing, specially when you are just starting your business. You can invest from your own savings or can get your family and friends to contribute.
- Benificial for first time entrepreneurs
- Less legal formalities
- If you raise it yourself their is no tension of penalties and intrest.
- Investors see it as a good point because your own money is invested in business, this gives them an assurance that you’ll take your business seriously.
It means taking loan from more than 1 individual at a time. It works like you prepare your business plan like your stratergy of running business and making profits so that people can lend you money if they like your idea.
- Many people have invested in your product and they also want their money to grow so in this case they can also market your product by word of mouth. This way you’ll also get free marketing of your product with funding.
- Cuts out professional investors by putting funding in the hands of common man.
3) Get Angel Investment
These investors are individuals with surplus cash and are really keen to invest in startups.They also work in groups of networks to collectively screen the proposals before investing. They can also offer mentoring or advice alongside capital.
- This method has worked for giant companies like GOOGLE , YAHOO , ALIBABA
- These peoople will invest more as compare to other funding alternatives
4) Raise Funds By Winning Contests
Now this might sound different or even stupid to some but if this works for you then nothung can be more better.
It goes like this
You have to take part in a competition where you have to build a product or prepare your business plan in the best way possible. And if you manage to win then
- It can also give you media coverage.
- It will also save you a lot of time as now you dont have to go to everyone and show them your business plan.
5) Raise Money Through Bank Loans
Bank is the first place which comes to our mind when we think of getting a loan.
It provides 2 types of loan
- There’s a bigger chance that if nothing works a bank will give you a loan.
- Banks are present everywhere now a days so getting in reach of a bank should’t bea difficult task.
4. PRACTICAL TIME
After all the steps which are mentioned above are completed now it’s time to actually go in the field and start your business.
When you will practically apply your business plan just remember that results will not come immediately.
You have to be motivated all the time
And if certain decisions go wrong don’t panic just try to correct them.
Never forget that behind a great business empire there is an idea which focuses on long term results rather than short term profits.
Things like –
- 1. Proper settlement of employees
- 2. Incoming of customer
- 3. Building goodwill of the business
- 4. Getting goods on credit.
Will take time to start working effectively
You need to keep in mind that you have to behave lightly and professionally with the customers so that they tend to buy from your shop consistently.
i hope that you have found the answer of the question’ how to start a business ‘.
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