Keep these things in mind before starting your own business in 2023
When any person makes up his mind that he has to do business now, the first question that arises in his mind is that what he has to do before starting a business, how he Can start a business, what are the things needed, etc. Similar questions often arise in his mind. So if you are also one of those people, then you do not need to worry about it, we will tell you through this article, what you have to do before starting a business.
Things to do before starting a business
What should we do to start a business and maintain it successfully? Let's know about the same, starting a business, whether it is small or big, is not an easy task. It consumes a lot of time and energy along with money. If you have started your business then this is one of the biggest achievements for you. But maintaining that business is a big challenge, which very few people are able to face. Now the question arises that what should we do to start a business and sustain it successfully. Let's know about the same -
Nature of Business (Type of Business) :-
First of all, you have to decide what and what kind of business you are thinking of doing. And what are you going to sell in your business. For this you will have 3 options given service, merchandising or manufacturing. You have to choose one of these categories to start your business.
Service :-
In this, you sell your time and expertise, such as the work of professional event organizer, IT, marketing etc., or there can be restaurant, food, kiosk, transportation, salon, spa etc.
Merchandising :-
In this, you can choose a business like retail, wholesale, trading or distribution. In which goods or goods are sold and bought. For example grocery and department stores, retail outlets, online resellers etc.
Manufacturing :-
These are businesses that combine both raw materials and employees to make a salable product using some equipment. For example cars, gadgets, clothing, bags and daily essentials etc.
Target Customer :-
Now you have a product or service to offer, with the help of which you can get profit. In that, unless you have customers, they will not buy and use your products or service, until then it is not possible. If you are planning to start a kind of business, then before selling it you must know what you are selling. If its market is good, then study about it. Along with this, also remember that a product or service is a product and service for all.
Location:-
In many business events, it was advised that the most important thing for your business is the location. That's why you also identify and see the best place for your business. It increases the number of your target customers and the people around also support them in this.
Lease, Repairs and Improvements :-
If you take a place on rent, then you have to pay rent for it. For this, those who own that place require you to deposit advance rent and security. It can be equal in 3 to 6 months on a monthly basis. Along with this, when you take a place on rent, it does not mean that you have got everything according to your wish, you will have to spend to make that place according to you. Because generally the places which are on rent, some repair and some improvement have to be done in it. If you also need this kind of space, then it would be better if you add it to the cost of your business.
Formation :-
Once you have decided that what you want to sell, whom you want to sell and where you want to sell it, then it is time that how you will do that business. For this, you can choose one of full ownership, partnership or corporation.
wholly owned :-
This means that only you will be the owner of your business.
partnership :-
In this you share your business with someone else, who can be your partner. For this you will need at least 2 persons.
Corporation :-
In this also you share your business with someone else who will be a stockholder. You need a minimum of 5 people for a corporation.
Capital investment :-
Capital is the capital or value that is put into starting and running your business. It can be either cash or non-cash. To know how much capital you need, first prepare a list of what you will have to spend money on to start and run a business. This list may include the purchase of assets, repairs, lease payments, as well as some other expenses for the operation of the business.
Get Proper Insurance :-
Insurance is also very important for doing any business. That's why you get the necessary insurance for your business. So that you will not have to face trouble later.
Asset Requirement :-
To start a business, plan the assets that you will need to run the business. Some examples for this can be computers, equipment, furniture, vehicles, etc. For this, you decide not only the product but also how much you want and what will be its cost.
Suppliers :-
Some of the identified potential suppliers will be required to produce the goods or services you sell. You should also consider its cost, location, reliability and operating hours etc.
Expenses incurred in running the business:-
You need to make a list in advance of all that you will have to spend to run your business. This can usually include salary, rent, office supplies and utilities etc. Also consider the monthly cost of your business. This is a very important stage for your capital requirements. Because usually you have to keep monthly expenses in the form of capital for at least 6 months or 1 year.
Hiring person or outsource :-
One of the most difficult tasks for a business owner is managing people. Hence there is a demand for outsourcing. When you start the business then you must consider this option. If you consider hiring individuals, you will need to consider their salaries and other government regulations, and if you consider the company you outsource, or the expertise and reliability of your outsourcer.
Registration, License and Tax Identification :-
After you have considered the amount of your expenses and capital requirements, then before starting your business, you will need to file your business name, incorporation, paperwork, and obtain necessary license and registration and tax information with the local municipality. Various things would be required. Many resources are given for this. There is the Internal Revenue Service (IRS) for federal tax matters, as well as local corporation commissions that can assist any new business owner with meeting regulatory requirements for each location in the country.
A bank account for business :-
You need to open a separate bank account for your business. This will help you to simplify your record keeping. And especially if your business is a sole proprietorship, you don't even have to mix your personal things with your business. You choose such a bank which is accessible and available.
Marketing and Competition: -
Your business is incomplete without marketing. Because marketing is one of those key factors that shows why your business is successful and why it is unsuccessful. So choose the right marketing platform for your business. Besides, there is nothing wrong with having a little competition. Because on the basis of this you get an opportunity to come out with a better product or service. Competition is an important step in how you have to win your customers. You should know everything about your competitor and his business. If you do not know how your competitor is moving forward, you will not be able to get success. Therefore, it is important that you know your market, know your competition, and also know how your company can be different from them.
Government compliance :-
After this one important thing which is often left out is to give report to the government every month, 3 months and year. It is often seen that many businesses which are becoming very successful but if they do not comply with the government then later they have to face problems like some government fines. Government compliance includes at least filing, payment of taxes and SSS/Philhealth/Page-iBig contribution etc.
Accounting and Financial Analysis: -
When you start your business you need to make sure that you have reliable accounting and financial reporting processes. Business can be called accounting in other words. That's why it is very important. It is a must know what is happening in your business. For this you must have a reliable accounting and financial reporting system.
So in this way you get information about all the things in advance and after that start your business and get profit by operating it.
Research is necessary: -
Lack of research has been seen as one of the biggest reasons for not being able to sustain the initial business in the long run. Many times people start doing business in a hurry by getting excited or seeing someone. In such a situation, they have to face many challenges in future. So if you want to start a business, first of all spend a large part of your time on research. Because only your research will tell that for how long you can keep your product or service active in the market.
Correct use of money: -
It is 100% true that without capital you cannot even imagine business. But on the other hand the truth is also that investing more and more money in business is not a guarantee of success. In such a situation, it is important that you understand the nature of your business and invest as much money as is needed. The nature of business keeps changing every moment. In such a situation, it is not wise to invest together. In such a situation, you must take the opinion of an expert.
Giving time :-
If you are thinking of starting a business, then it is certain that you will have to devote a lot of time to your business. Because in the initial days you will have to face many challenges and you will have to spend a lot of energy to deal with it. For this, you should have better time management skills, which will act as an alarm for your business as well as your health. This is because, people often get so busy in their work that they do not even pay attention to their health.
Technology is important :-
Today's era is considered to be the era of technology. So in today's time if you are thinking that without using technology you will be successful in business then it is not possible. Many SME companies in the country are writing a new story of growth by adopting the latest technology. If you are also starting your small business, then keep some money for the use of technology. Because with the use of technology, you can not only save your time, but also make profit by reducing the cost. There are many companies, which are helping small businessmen by giving them computers and other technical products at low prices.
How to start your own business?
Running your own business can be stressful, but it can be a great career and life choice. It requires your time and focus. Learn to live your work before it's completely solidified, so you get into the habit of doing it. There are many different views on how to start a business. Below are some basic ideas to get you started.
follow up with an idea
1. Get an Idea:
Before you start doing anything, you need an idea. You can also try doing some market research to get a clear image. It should be something you are passionate about, because this new business of yours is going to take up all your time and money from now on.
Find a business idea by thinking of things that people need and are willing to pay for, that are not available in your area or online, or that you can provide better than anyone else. Huh.
2. Think about whether it is possible or not:
Before going too far ahead, think about how feasible your idea is. Is this something people would really want to pay for? Will you be able to get so much profit from this, for which you are giving your time? You also have to be sure that you want to take it forward. Although it would be great to have a computer that suddenly just does magic and brings food in front of you, which is completely impossible.
3. Make sure it's unique:
Whatever your idea, just make sure it's feasible. This will help you eliminate or specifically meet your competition, which will make your business more successful. Adding a little something extra to an existing product (making blue red wine or something like that) isn't going to be enough to grow your business, so get your brains running!
creating a business plan
1. Fix the cost of this work:
You'll need a solid plan to present to any investors, and the best place to start is by determining the costs you'll incur. This will give you an outline and will also help you decide how much money you will need to make the product or service you envision. This includes production costs, shipping, taxes, workers' salaries, office rent, etc.
The cost of your business will play a huge role in deciding whether or not your business is going to make a profit, as you will need to earn more than that to keep your business afloat.
2. Determine Your Potential Market:
Be absolutely truthful. How many people will actually use your business? How much will they pay to use your services? If these numbers are too small in comparison to your cost of staying in business, then you may want to reconsider or change your plans.
3. Think about obstructions too:
You should have a plan prepared in advance to face all the obstacles or problems that may come in the way of running your business.
Think about your competition as well; If their market share or product offering is very strong and stable, then you may find it very difficult to capture the market. No person would want to buy a product whose price is equal to an already existing product or it is a more expensive version of a good product or service.
Along with this, you also have to know the rules and regulations related to it, especially related to tax. You should check with your local state authorities as well as the IRS.
Also make sure there aren't any prohibitive costs, such as equipment that would be too expensive for your business to be profitable. For example, cars are not built until they can be made cheap using good equipment
create a market plan
1. Write down a budget:
Once you have an idea of the cost of your business, write up a marketing budget that shows how much money you have available to spend on advertising.
2. Create Ideas That Fit Your Budget:
Once you know how much money you have, research the costs of different types of marketing and come up with ideas that fit those methods and your price range. Be effective accordingly. If you have a lot of money to spend on marketing, you can also consider shooting a commercial. If you do not have much around, then you can think of ways to use social media effectively, which are really effective and cost very little money.
3. Plan the timing and location of marketing:
Once you've chosen your marketing approach, consider which of the most effective places to advertise, what time of day, month, or year works best.
You also have to be sure that whatever type of marketing you are using, it is efficient in drawing interest to your product or services by the people you want. For example, if you are advertising a 55+ only cruise line, then using social media would be a good fit for you. On the other hand, if you want to advertise your new dance club, then just a printed paper might not help you much. Along with this, there is no point in going to Gujarat to advertise about such a business, which is present only and only in Pune, so think about the physical location as well.
If your services are seasonal, then you will also need to decide what time of year is best for advertising. Along with this, the time of advertisement coming on television should also be fixed so that more and more people can see it.
getting finance
1. Talk to your bank:
Talk to a bank with whom you already have a good relationship. Ask them what types of business start-up loans they offer and how they can benefit your business. By using a bank you already know, your bank will have easy access to your financial records and it won't be too much of a hassle for them to invest in you.
2. Get Local Investors:
If the bank loan is not enough for you, then look for some local investors as well. Don't know how many big business tycoons or some such rich people will be found, who can be ready to help you on their behalf to make you successful. Research people in your area who have funds and are willing to help you.
3. Find Venture Capitalists or Angel Investors:
Angels are very high net worth individuals and Venture Capitalists are companies. They both provide high risk venture funding for a stake (partnership) and often bring with them experience, management expertise and contacts. They often work through networks or associations.
4. Visit Friends and Relatives:
People who have known you for a long time, it can be said, have complete confidence in your abilities and intentions. These are actually the kind of people who are ready to stand by you by helping you financially if you ever get stuck in a difficult situation in the initial days. However, make it clear that their money is going to be invested in a risky venture and they might lose it forever or get it back in no time.
5. Use crowd-funding:
If you still can't get enough funding for your business, use websites to raise the money you need to get started now. Funding sources have many benefits: you don't have to pay interest on the money you receive (as if it was money that was used to provide the actual product or service) and it not only pays you interest It helps to save from giving, at the same time it also helps in building your customer base. Your business will already have hundreds or thousands of customers and they will be ready to tell other people about the product or service you have.
6. Reports:
Regardless of the source from which you are raising funds, be sure to provide operating, strategic and accounting information to your financiers periodically, usually twice a year. If it's possible that everyone can come in person, it's also a good idea to have a board meeting. If not everyone is able to come, do it via teleconference.
building infrastructure
1. Find an Office:
You will need a space to run your business. If you need a little space and you do not have any employees, then you can also make a home office or it may require an entire workshop or warehouse. Instead of using a fancy address, use a low cost location or place of business. Some universities provide space for new business at low rent due to an innovative scientific idea. It completely depends on what you are doing and how big you want your business to be. Just make sure the location is legal for the work you plan to do and is within your budget.
2. Buy Equipments:
Buy all those things, buy all the things needed to start the work. This could be mechanical equipment, computers, telephones or craft supplies. It totally depends on what you are doing. Try buying from business supply companies, as they can give you a substantial discount. If you are on a tight budget, then lease or rent would also be a good option for you as long as you don't let funds come in your way.
3. Prepare a Record System:
From calculating taxes to seeing a shortfall in your customer records to knowing whether Mr. Shukla has paid his bill or not, you'll need everything you need to grow your business the right way. To know about, all the records have to be kept ready. Invest in file cabinets, labels, and digital records software to keep everything well organized.
build a customer base
1. Use Marketing and PR:
You have to approach the customers in such a way that they start using your business. This is especially important if you do not have an established, regular customer base.
Advertise in such a way that all the attention of your customers is drawn towards your business and as far as possible it seems to fulfill their expectations. Be creative and use the important things in your business according to your customers.
Give out free samples of everything you do to the right people so they can speak highly of what you have. Good word of mouth (meaning good PR) is the best way to attract new customers. If you get a bad review or negative feedback, respond positively and fix the problem. If you are willing to correct mistakes, then people will also start to be less judgmental towards mistakes.
2. Use Old Fashioned Networking:
Attend conferences, charity glasses, hold meetings with complimentary business, and any place where the majority of customers are expected to be. In other words: go out and mix with people. Use your friends' connections to meet people who might be able to help you. Such interactions are very important to start a business. How long can you stay hidden inside a wall anyway?
3. Adopt Good Customer Service Skills:
Interact well with people. Try to understand what people have to say. Learn to tell about their needs, which they are not able to understand even when they are with them. Learn how to please people. Be charming. And most importantly, learn to be humble. The customer may not always be right, but you should make them feel like they are.
4. Build a Website:
The whole world has now come online. Any such business, which wants to survive for the next 10 years, must have its own website. People will use it to contact you, to get your location, to know your working hours, to ask you questions, to give some advice and maybe even to buy your service or products . If you have a website or service that is available on the Internet, you can expand your service area beyond just your area and even around the world.
take payment
1. Place a payment demand:
Don't let people take advantage of you. Ask for payment for a specific window of time (which works for your job). Invoice people as quickly as possible. If a person is late in paying, then talk to them. If you go on ignoring these problems in the hope that they will get fixed, then you will find yourself doing business for free and your whole business will be ruined.
2. Take Credit Cards:
Nowadays, very few people pay in cash for a product or service. If you accept credit and debit cards, it will be easier for your business, as well as help with accounting records. If you want to protect yourself from strange fees or want to grow your business even further, consider using Square. This device plugs into smartphones or tablets and allows you to swipe the customer's card.
3. Set Up an Online System:
If you are planning to sell your products online, then you will need to set up an online payment system. Services like PayPal make this very easy. Do your research on which method is right for you. However, you also want to confirm that the system you use is secure. You should not allow any of your information or the information of your customers to be hacked, nor should you allow anyone to take advantage of it.
Benefits of Starting a Business
Starting a business is an inspirational trick, especially when one is doing it for the first time. Or those who want freedom from their 8 to 9 hours office work, it also encourages them. In this, they can do their business anytime according to themselves. In this, he does not have any boss, to whom he has to report everyday. Also, there is no definite limit to how much profit they can get in this.
Advice before starting your own business
Make sure your product/service is appealing not only in your community, but in all public areas, and if you can't make it appealing? So be sensitive.
Talk to people you know who run a home based business. They will be able to help you start the business.
Understand that it may take time for you to get the business up to speed. In most of the business, profit does not start coming from the very beginning, nor should you expect it to happen. You'll have to make a lot of sacrifices (take damage) to be your own boss.
When you're hiring workers for your business, be sure to thoroughly review and interview workers. Have their real information with you, passports, IDs, previous work, licenses and other such things on which they are really dependent.
Make payment easy and affordable for everyone. Accept credit cards, offer monthly payment plans, promote products by offering buy one get one free or offering sale prices.
When you're deciding on a name, slogan, services, etc., try asking other people for their opinions on them.
Ask for help from your parents.
Ask your friends, relatives and colleagues and plan something good with the help of your well wishers and supporters.
Come up with an original idea. If you are connecting with some software, then its real identity is simplicity, originality and function. You have to get all the features that are there in a normal software, as well as keeping other things in mind according to the convenience of the users.
To make sure your new employees are comfortable with their new job, don't forget to train them.
FAQ
(People also ask)
Q: Which is the highest earning business? List of High Profit Business in India
Ans :- High Grossing Business Ideas Restaurant Business Catering Business Readymade Namkeen and Snack Shop Sports and Recreation Parlor Tea Shop
Q: Which is the best business in India?
Which is the best business in India?
Ans :-
restaurants business
clothing business
coaching
youtube
catering business
digital marketing
network marketing
Mushroom Farming Business
Q: Why do you want to do business?
Ans :- The way food is necessary for living, similarly it is necessary to do business to buy food and arrange money. There are many such needs of life, which cannot be fulfilled without money. Suppose you are a farmer, then you can fulfill the needs of your life by doing farming.
Q: How does the business start?
Ans :- How to start your own business
follow up with an idea
creating a business plan
create a market plan
getting finance
building infrastructure
build a customer base
take payment
Q: Which is the highest earning business?
Ans :- The business with the highest profit margin is the business of catering.
Q: Which is the most successful business?
Ans :- Most successful small business idea to do in India
Breakfast Joint
Tea Business
Video Graphy Business
Wedding Planner
Electronic Shop Business
Grocery Store
DJ Service Business
Q: How can I start my own business with no money?
Ans :- If you are thinking of doing your own business with no money then you must first ask yourself what you can do for free, apart from this you have to save at least 6 months. You can borrow additional funds from your friends or family. Or you can also apply for a small business loan.
Q: Which business is best to earn money?
Ans :- All business are good to earn money, you can do any type of business, it is totally up to you that what kind of business you have to do.
Q: How can you earn quick money from your business?
Ans :- If you are thinking of starting your business and earning quick money, then first you should promote your business. Do its marketing both online and offline. You can also make a website of it. The more people know about your business, the sooner you will be able to make money.
Q: How can I get a loan to start a business in India?
Ans :- Pradhan Mantri Mudra Loan Yojana has been made by the Government of India for businessmen, through which you can take loan from the bank for your business.
Q: Is it necessary to register for small business also?
Ans :- Yes, whether the business is small or big, it is necessary to register it legally because it proves that you are not doing any illegal work.
0 Comments