Many people harbour dreams of starting their own enterprise and though they may be possessing sufficient knowledge about their domain, what they lack is an awareness about the approach to transform their dream into reality. A basic guide listing steps to startup a small business has been provided for their assistance.
1. Personal Evaluation
The most important activity before embarking upon the journey is to conduct a comprehensive assessment of oneself. Being totally convinced about the new business concept is not enough and the motive behind starting the venture should be perfectly clear in your mind. Try to make an honest analysis of your strengths and weaknesses as this will give an idea about how prepared you are to meet the challenges of the new operations. It is going to be a life changing experience for you as well as your family and therefore one needs to simulate all possible outcomes in order to be fully prepared for them.
2. Formulate A Business Plan
The concept behind the startup needs to be elaborated into a comprehensive blueprint covering every aspect of the project. It will help in isolating possible hurdles along the path and also in identifying the best ways to overcome them. A detailed road-map listing the area of operations, potential customer base, anticipated profits and the expected time for breaking even will be of assistance in moving ahead in an orderly fashion. Moreover, it would provide an idea about the viability of the new enterprise apart from aiding in calculating the financial costs involved.
3. Identify Sources of Finance
Probably the most important of all steps to startup a small business is the identification of best source of funding. There are various methods to meet the financial requirements like asking bank for loans or getting a venture capitalist or an angel investor to bankroll the new endeavor apart from using one’s own savings for the purpose. Ascertain the nature of your firm as some businesses are cash intensive and need steady capital inflow while others may require capital infusion at fixed time intervals. The business plan formulated by you will give an idea about the best financing route and be approaching the chosen authority with a professional blueprint of the whole program will help you secure the funding you need.
4. Conduct Market Analysis
A business can only be strong when it has a strong and loyal customer base and therefore it is vital to identify your potential clientele and the factors that will influence them in choosing your service over other existing ones. Get a thorough market research done to make an evaluation of the size of the market and the chances of success of your service. It would also help in identifying customer needs that are not being met by existing products and what unique value can be added to your offering. It is an essential part of starting a business as the success of the whole endeavor depends on securing a large share of the market in the quickest possible time.
5. Choose A Suitable Business Format
The choice of the legal type for the new entity needs to be made after thoughtful consideration as it governs the nature of the tax structure of the company as well as the scope of liability of the owner. One can opt for sole proprietorship which allows for complete control over the venture but also makes the proprietor fully responsible for all debts and other commitments. People generally opt for the limited liability partnership route which makes the company an entity separate from its owners, in order to protect their personal finances. The choice of the company type assumes importance also because of the compliances involved and preferably the one with the least number should be selected.
6. Plan A Marketing Strategy
You may have a high quality offering but in absence of any awareness about it, there would be no takers for the service. Customers need to be educated about what you are offering and before launching the product, run an advertising campaign to generate interest among them. Take professional help in finalizing a brand name and logo for the concern and devise an elaborate marketing plan for the next few months. Set aside some amount from your total budget for the purpose and use it to target potential clients through all possible channels. Be innovative in your approach and try to employ creative methods for publicizing your company like running a promotional program on social media networks.
7. Devise A Future Plan
In absence of a plan of action for the future, the new project can stagnate and become prone to failure. Set short and long-term targets and the complete road-map to achieve them apart from investing in hiring a skilled and hardworking team for implementation of your ideas. Take constant feedback from your clients as well as dealers and suppliers to find out about the areas that need improvement and use and use the information to make necessary modifications to the plan.
You can also read: Factors to consider when starting a small business.
Passion and determination are required in equal measures to realize dreams of entrepreneurship and these steps to startup a small business will provide assistance in moving ahead towards the desired goal.
George Dille has been serving as an Expert Business adviser at BusinessVenturesIndia Ltd, Who provides Online Company Registration Services in India. He is a passionate writer and he loves to share useful information regarding Business.