Starting a small business can take up a lot of your time. In the end, it is worth it because you will be kicking off your own personal journey into self sufficiency. Here are the steps you need to follow
The economic incentive inherent in the potential of a growing business of today is tremendous. This makes it an attractive prospect for individuals who are looking to start their own companies in the near future. However, starting a new business on your own comes with its own set of headaches. The right idea needs to be groomed and developed into a comprehensive business strategy that will capture the attention of your audience. Legal hurdles have to be managed with panache. The right people have to be recruited who share the same vision as you. Here are the steps you need to take to start a small business in India:
Market awareness is a precious commodity for a newly formed business. Success is perpetually linked with well researched consumer preferences. The initial step for creating your business should start will grounded research on what has worked and what has not. Understanding the compatibility of your business idea with the mainstream consumer consciousness of today is crucial for practical business organisation. It will not be out of place to have candid conversations with individuals who are already a part of the industry. Insights gained in this manner will come in very handy as you start your personal journey as a business owner.
Making a business plan is extremely important. This sets the tone for the type of venture you are planning on conceiving. A business plan would also serve as a manifesto for the investors you are planning on collaborating with. It would help them garner a clear picture about your business structure and product placement. Since, most successful businesses are the result of collaborative efforts, there is a lot to be gained from coherent communication. This is exactly what your business plan should contain. An exhaustive narrative of how you intend to guide your business through its formative years into eventual success.
It’s good to have faith in your own idea. As long as you make sure that the faith does not translate into overconfidence. Sparing no expense for your newly minted business is not a very good idea. With only conservative estimates available about the revenues that your business could possibly produce, it is best to spend money in strict moderation. Whether you are getting funded by investors, self financing, relying on bank loans, it is important to be working with a budget that clearly stipulates what the your actual necessities are and what are not. Business development should be considered only after establishing consistent revenue streams.
Registering your company is as important a step, as your business plan or the budget requirements. A Limited Liability Partnership (LLP) is a popular choice that businesses prefer to be filed under. This is attractive when your business venture involves collaboration with people you have not known a long time as LLP stipulates that partners are not directly liable for the losses brought about by the other partners. Another option is a Private Limited Company where each partner’s responsibility towards the company’s losses are directly limited to the amount of money they have invested to the company itself. The business should then file for a GST number so that tax filing can be streamlined.
Customer Is King
If you have successfully managed to set up your business, the first year should be exclusively concentrated on customer retention. Analysing your market share, correcting mistakes and improving your products, these things are of very high value for your business in the initial stages. It is crucial to incorporate customer feedback into your products at this time and make sure that they know you are listening. This will provide a solid base for you to function in the long term.
Starting a small business in India will is a great way to attain self sufficiency. Contributing to the growth of the country’s economy while improving your personal finances is a non-zero-sum game. Everybody becomes a winner.