In India, these days’ people are planning on businesses more, to fulfill their entrepreneurial dreams. Some of the most popular reason to kick start a business in India is either to achieve financial independence or to design a career that has the flexibility to grow with you. As a result of which, there are more than 51 million small and medium businesses in India.
Though, success ratios of the SMBs are not that overwhelming. As per the latest analysis, it is believed that only about 2/3rd of business survives for at least 2 years and 1/2 of them survive for 5 years. So, you might be in a real challenge to ditch your everyday job to become a business owner. Here are the six most important steps that you should take to kick start a successful business.
Research and Analysis
Most likely you have a business idea, so now it’s time to analyze it with the market reality. Before you go any further with your business idea, you need to find out the answer to the following question: Does your business idea have the potential to succeed? There are various ways you can identify this potential that includes focus groups, research, & even hit and trial.
As you research and analyze the market, you should answer the following question in order to move further:
- Is there any need for your anticipated product or service?
- Who can be your prospective buyer?
- Are there other companies providing the same product or service?
- How to fit your business into the existing market?
After you get all the answers to these questions, you can move forward to the next step i.e. making a blueprint of your business.
Make a Blueprint
To convert your business idea into reality you need a business plan or a blueprint. Making a plan or a blueprint is an important step, as this will help your business to grow from the start-up phase through the establishment.
Your business blueprint shall be detailed that it must include the objective and targeted audience or group if you are seeking financial support from a financial institution or an investor. Then, the investors and banks will validate your business idea, if you have a strong blueprint.
Plan for Finances
Generally, a small business does not require a lot of money (depending upon the product or service you want to render). But it needs some initial investment to cover ongoing expenses before you start getting profit. Plan the startup cost of your business for at least 12 months that might include employees’ salary, rent, production, marketing and advertising, supplies, transportation etc.
Now that you have a lump sum figure in your mind, there are different ways you can fund your SMB, including:
- Financing through banks and financial institution
- MUDRA loans
- Small business loans
- Angel investors
Register Your Name
Prospective customers or buyer judge the business by its name. Therefore, the business name is often the face of the business. Before choosing and registering the business name you should consider the following points
- Easy to understand and remember
- Catchy name and tagline
- Speaks about the business objective or product offering
You should note that the chosen business name should not be already in use by any other company or business. Trademark and register your business name to ensure that no one else takes up your business name.
Choose a Business Structure
Depending upon the objective of the business, it can be a sole proprietorship, a partnership, an LLP (limited liability Partnership). The business structure you opt will impact many factors including business name, liability and tax compliances.
As per the complexity of your business, you may ask for expert advice to ensure that you are choosing the right business structure and to complete all the legal formalities.
Acquire the Talent
After the completion of all the above-mentioned steps, now, your business would need employees to turn your dreams into reality. List out all the positions you need to fill including their job responsibilities. The other way is to outsource your work to independent employees or freelancer, but that would require more patience, in order to achieve the desired business goal. Else, you can also travel on the small business road alone, but for that, you still need your own support team. This team can include a business coach or a mentor who can act as a go-to resource to assist you at the time of need when the road gets bumpy.