Basics Of Starting A New Business - Step By Step Guidelines
The flash of inspiration is one of the greatest things about starting a new business. To start a new business it requires many steps, and it certainly doesn’t happen overnight. As an entrepreneur, you must be willing to dedicate most of your time to the process. The intention to write this blog is not giving out some magic formula or giving you an auspicious day to start new business 2018…no we are doing any of these. With lot of inquiries, queries and questions of asking on starting a new business in India, we get to know that budding entrepreneurs of India do not have a clarity of starting the new business. Not to worry. We get you sorted!!
When Launching A Business – Timing Is Everything
Many newbie business owners in India fail to consider when embarking on their business startup – Timing.Creativity, motivation and drive can get you far, but is now the best time to take the risk? You must ask yourself several key questions to determine if your idea will work for you in current market conditions.
Start by asking yourself the following questions:
- How is the current market and local economy?
- What is the present competition in your business industry?
- Do statistical market trends seem favorable for the start of your business and its future growth?
Do you understand the timing involved in customer outreach?
Know Your Industry Before Starting A New Business
Everything in your industry that happens outside of your business will affect your company. The more you know about your industry, the more advantage and protection you will have.
Do a very complete analysis of your main competitors. Make a list, determining who your main competitors are. What are the strengths and weaknesses of each? Consider their products, pricing, reputation, management, financial position, channels of distribution, brand awareness, business development, technology, or other factors that you feel are important. In what segments of the market do they operate? What seems to be their strategy? How much do they impact your products, and what threats and opportunities do they represent?
There are websites for business analysis, financial statistics, demographics, trade associations, and just about everything you’ll need for a complete business plan.
Do You Need A Business Plan For Your New Business?
A misconception that business plans are for venture capital. It does not matter if you are raising millions of dollars or just taking a loan from mom and dad, you need to make sure nobody is just throwing money away on a bad idea. Writing a business plan will help you determine how much cash flow you need to start and how much you can expect in the future.
Assessing Your Finances
Starting any business has a price, so you need to determine how you’re going to cover those costs. Do you have the means to fund your startup, or will you need to borrow money? If you’re planning to leave your current job to focus on your business, do you have some money put away to support yourself until you start making a profit? Find out how much you’re going to need.
Experts generally agree that startup businesses often fail because they run out of money too quickly before turning a profit. It’s never a bad idea to overestimate the amount of startup capital you need, as it can be a while before the business begins to bring in a sustainable revenue.
If you need financial assistance, you can pitch your idea to the investors ; as investors usually provide several million dollars or more to a fledgling company or go for business loans.
Watching Your Cash Flow
Unfortunately, the single biggest reason why businesses fail – across the world – is running out of cash. You may have spent all your savings, and be unable to borrow further, or be forced to cease trading as you are owed money but third parties. From day one, set up a cashflow management system – even if it is very basic to start with. Make sure you create invoices correctly, submit them on time, and take prompt action if payments become late.
There are dozens of robust, and low-cost online accounting systems out there – enabling you to invoice customers, and keep track of what you’re owed at any one time.
Assessing The Operational Costs
Although different businesses have different costs associated with them, the main operating expenses of most businesses include:
- Phone and Utilities
- Leasehold improvements
- Professional fees
- Insurance etc.
What It Takes To Promote Your Business – Business Marketing
For many of us just beginning in startups, sales and marketing can be confusing and unknown.
Like any other investment you would make, money spent on marketing must generate a return. While that return could simply be greater cash flow, good marketing plans result in higher sales and profits.
So don’t simply plan to spend money on a variety of advertising efforts. Do your homework and create a smart marketing program.
Here are some of the basic steps involved in creating our marketing plan:
Focus on your target market. Who are your customers? Determine how you can best reach potential customers.
Consider your brand. How customers perceive your business makes a dramatic impact on sales. Your marketing program should consistently reinforce and extend your brand. Before you start to market your business, think about how you want your marketing to reflect on your business and your products and services. Marketing is the face of your to potential customers–make sure you put your best face forward.
Focus on benefits. What problems do you solve? What benefits do you deliver? Customers don’t think in terms of products–they think in terms of benefits and solutions. Your marketing plan should clearly identify benefits customers will receive. Focus on what customers get instead of on what you provide.
How MARC Can Help In Starting A New Business
A lot of people talk about starting a new business and daydream about being their own boss. Very few people actually take the leap. And a ridiculously small number will actually see their dreams come to life.
That’s because building your own business isn’t convenient.
You’ll be misunderstood and frustrated along the way. While your friends are busy buying nice cars and going away on fancy vacations, you’ll be pinching pennies to pay the bills and staying up late to answer emails. There are times when you’ll feel isolated and a bit foolish, and will be close to giving up and walking away from it all.
MARC can help you with all of your new venture formalities, giving you guidance and expert suggestions.
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