How to Start a New Business – 5 Things Should Consider
Time and again, we see passionate individuals yearning to create a difference in the business world; around them comes up with a solution that stays unique. The startup ecosystem is breeding such entrepreneurs that take a new path but commit the same old mistakes. And they succumb to the pitfalls that can be avoided right from the business registration process. The startups nowadays prefer to register private limited company; and many would still be confused with getting the right business structure without weighing in pros and cons. It surely is lucrative to start a new business. But, there are certain things you should be aware of, and take a look at.
Pivoting Sales and Marketing Strategy
Startups sometimes have no idea of how they will function and bring harmonies between multiple departments. Also, unable to find cohesion between service and production to delivering it. It is crucial to separate the marketing budget for all possible activities right from packaging the product. Also, ensure having a marketing budget that fits your vision to help you generate better business.
You can only have your sales team concluding the transactions; if they know what they sell and how they do it. For this, they need to understand the product better and move talks faster; since the business cannot survive long without making the sales and every transaction counts while you grow. Therefore, it gets critical to plan on creating a robust distribution model that has everything included; documentation, sales contracts, plans, and everything else you need to turn goods into the brands; and add value to those who buy it.
Pay Attention to the Legal Aspects to Start a New Business.
The critical thing to consider to start a new business is to determine its business structure; that will affect your tax-ability, know ITR, documentation requirements; and also the other legal aspects that come to play when your business becomes a legal structure. For instance, the number of employees, size of capital to bring, etc.; will depend on what sort of a company you register.
While the government registration of your business as an LLP or Pvt Ltd is one thing; know that you will be able to draft employment and vendor contracts only after that. If your startup deals with technology that you’d like to keep confidential, then the NDA document is necessary. Your company will have the TIN, and you will have the TIN; based on which you will be applying for the licenses required to keep the business functional.
Have a Business Plan on Paper
Unfortunately, one of the most common failings is the reluctance to develop a strategic plan. It is worrying as business plans help navigate the issues beforehand while enabling founders to target potential investors. Drafting a business plan is undoubtedly a tedious but very critical, considering the financial and sustenance aspects it carries. It is also a considerable test to determine whether or not you are prioritizing your business; because if you can’t take the time to make a simple business plan, then your involvement is questionable.
It is ideal for drafting a detailed business plan; which defines your proposed product or service, costs, funding needs, competitors, potential customers, and market opportunities. The next thing you should be doing is to ensure putting the business plan to action; where you pinpoint the specific practical challenges in detail.
Outsourcing Secondary and Tertiary Tasks
Building a business from scratch is not a one-person show; and you, as an entrepreneur, will need people at every step. Avoid doing everything by yourself and hire assistance wherever necessary and whenever you feel the need to expand a business. Hiring support along the way will make you more efficient and help companies make more critical decisions.
I have seen many entrepreneurs leaving behind a full-time job; wherein they do all the groundwork for setting up a business. But they drag themselves into the deeper functional pockets that they keep reinventing the wheel at every step; without knowing that it’s not their skill. For example, rather than doing accounting by yourself or hiring someone for accounting are not feasible options. Instead, you can hire professional accounting services that offer accounting and bookkeeping services; to ensure maintaining ledger and keeping finances up to date.
Risk Identification and Actions.
There will always be a degree of risk involved when you start a new Business. Therefore, ensure you make the right calls. Especially when there is risk involved and taking precautionary measures for business safety should be your topmost priority.
Try accessing the uncertainties that your industry has even before you start the venture. Remember, SWOT is not optional but ethically very much mandatory. Keep yourself aware of possible pitfalls that your business carries and ensure dodging those effectively to avoid any losses.
For instance, restaurant owners have to be very strict with the hygiene concerns; as any laps may prove fatal for client and business. The sanitation requirements may soon turn to law post-COVID-19 pandemic, and the local municipality’s investigation is likely to happen. If you miss anything, you may have to pay a higher price, which may jeopardize your restaurant’s license.
It could be gratifying to start and run a company. But let’s face the truth – it’s not everyone’s cup of tea. It can be expensive and time-consuming. Moreover, many people do not realize the considerable effort needed to build a successful business or sustain it. However, you can’t and can’t learn the passion and ability of the product to sell. But when you face the challenge of starting your own small business; you can find years of happiness and monetary rewards.