Starting your own business can be a daunting task. A lot of considerations go into it. From fulfilling legal requirements to financing to marketing your goods or services, everything has to be planned meticulously to the last details. There are various factors that influence your decision to start your own business. However, the most important consideration is that you must have an excellent business idea and funds available to finance your business. Once you establish your business setup in India, there would be lot of funding options before you to fuel your business. Even the government offers financing and incentives for start-ups.
When you start contemplating about starting your own business, the first thing you probably do is to seek advice from others who have some prior experience. You are likely to get different advice and tips from different people you speak to, and that can result in lot of confusion for you. You might get some positive response and some negative response as well. Though there is no secret formula to start your own small business, we will try to offer some tips that might help you in your endeavour.
Take Advice from Others and Address your Concerns
Many people dream of becoming entrepreneurs but are never able to do so. The primary reason is the fear of failure, and they keep on finding excuses for their inaction. Starting your own business is difficult as there are lot of risks involved. Instead of letting your worries become obstacles in your path you should try to figure out the reasons for your reluctance and get rid of them. Find a solution to the underlying issues.
Listen to what others say about your plans. Talk to your close acquaintances and experts and ask people to be honest with you about what they think about your plans. The opinion of the people you talk to will give you an insight on how actual consumers might react. Experts and experienced business owners can give you invaluable advice.
Be a Solution Provider
Instead of incubating the idea of what and how to sell, think about what your product or service can solve. Your start-up should fill a vacuum in a particular market. When it is something about fixing a problem, then it becomes a lot easier to broaden your customer base. Be clear about the reasons you want to start your own business; understanding the motive behind it will help you devise your marketing strategy.
Keep your concept as simple as possible otherwise you might end up with an expensive product that could be difficult to sell. For a business venture to succeed it must be able to fulfil the promises made and go even beyond that. Do not add unnecessary features that inflate the cost. India is a very price sensitive market, so keep the cost down to as low as possible if you want your business set up in India to succeed.
Calculate the Cost Involved
Once you have evolved your business idea, the next step would be to calculate all the expenses you are likely to incur in launching and operating your business. These costs include rentals, supply and marketing, overheads, working capital, etc. Take into account everything that comes to your mind and then multiply that figure by 4. When you are running a business, there are unexpected costs that crop up now and then. So it is better to be prepared for that contingency than run short of cash when you need it most. You must also take into account your personal expenses. Make a priority list of all your expected expenses. Finally, prepare your budget for the business. You might have to take a business loan as well. Explore all your options before putting in your money.
Be Prepared for the Worst
No matter how diligently you plan for your business venture, there is every possibility that it will not succeed. Available data suggest that almost 50% of new businesses in India have had to shut shop within first five years. So it is very important to plan for the worst case scenario.
As a precautionary measure, it is advised that you should not quit your current job as soon as you start your business. New businesses have a gestation period and it takes some time before steady income starts to come. Once that happens, you can think about quitting your current job. Also, by that time you will gain enough experience to handle the business properly.
Know the Legal Requirements
Starting a new business can be exciting, but you must ensure that your business operates within the laws that govern it. There are many legal formalities that need to be completed before you start business in India, such as registration and obtaining licenses and permits. While running your business, you have to comply with various regulatory frameworks. Keep yourself abreast with the laws and ensure that there is no violation. A business set up in India should follow all the rules and regulations laid down in the Companies Act.