What questions to ask when starting a new business?
Introduction to the setting up of a business
"Success and opportunities don't happen- You are the one who creates them". Before starting a business understand -What are the important factors that can lead your business to a successful level? One must have an answer to all the question that can be asked in future at any point while doing business.
One should figure out all the answer to every question related to staring of the business. Answering every question will help one in understanding their personal goals and also business goals. Setting up goals will help in commencing a business easily without any set limits. So, take every step with full confidence in business planning or budgeting.
Always deliver more than expectations!
10 Startup questions that will assist in understanding and recognizing the points for establishing a successful business in long-run. The idea for a business is already in one's mind. After that answer these questions:
1. Which permissions, registrations and licences one require for business?
The business needs various licenses, permissions and registration process all depends on the nature of the business. Some of them are:
- Federal Licenses
- Sales tax license or permit
- Health Department Permits
- State Licenses
- Sellers permit
- Air and Water Pollution Control Permit
- Fire Department Permit
- Country and city business permits or licenses
- Home-based business permits
- Permits need for regulated businesses that are alcohol, agriculture
- GST Registration
- ESI Registration
2. Why is the location the most significant features of business?
The location is one of the most important elements in setting up the business. As the location will decide the type of audience one will have.
So picking up a good location is an important factor. A good location can make the variation between a profitable and a bankrupt business.
There are several topics to consider when choosing a business site. A checklist for potential locations and then match different sites or location.
- Availability of transportation and convenient
- Enough community infrastructure for businesses
- Parking facilities
- The traffic flow can one's customers contact one quickly and travelling is inexpensive.
- Availability of merchandise and raw materials
- Prosperous market
- A quality site for the future- for a minimum of 10 years at least.
3. What are the target market and the audience for my business?
While we decide the business idea, the recognition of the market and the audience becomes major. As this will be the base to decide what will your product be a part of everyone's daily life or not. The business cannot reach to everyone in the beginning so, one decides to zero in on the target market will assist one to place their marketing development plans, it can offer to higher profits in return on the investment in the long -term.
4. What amount of money or funds are required to start a business and how to get them?
Every business needs funds for starting up. A perfect business plan will formulate one that how much money is required for setting up of the business. Every business needs investments whether it is raised by funds or already having to save for it. The business person requires to find out which funds are important that assist in cutting the cost, especially in the beginning days. One can start a business in partnership also that would be easy funding. One must get their Partnership registration to avoid clashes and conflicts the ways to raise funds are:
- Bank Loan
- Venture capital
- A finding of a business partner
- Personal funds
- Credit cards
- Friends and family
- Angel investors
In future aspects, the business should think about only earning profits so that can give back the fund raised to sustain in long-run. The model of revenue will recognize that how the company generate its profits and controls its expenses.
5. Is the business idea expandable for future aspects? If not, how do I make it expanded?
When we think about business with future aspects, the thought of expanding it also comes into the mind. The expansion here by means that one is ready to control all the number of vendors and customers.
If you are not able to do so in future, alter your strategies and plans to grow healthy for the creation of wealth.
6. In the market, one establishing a business. There is a possibility that someone is already doing the same business?
Yes, the possibility is there that in the market which one plans to establish a business may have the competitors who are selling the same product as yours. For being different from other a business must have its USP that is Unique Selling Price. To give a great competition to others, one must adopt the strategy of giving discounts or doing promotions.
The "SALE" is the word that is enough to attract the audience towards your brand. The person who is setting up a business must allocate and understand their competitors' strategies. This information will help you to make your brand place in the first position with your own strategies of selling.
7. Amount of employees needed for one's business?
Choosing the employees for your business is a quite difficult task but analysing your business budget and how much one can afford. In a startup business the thing which matter is "Quality over Quantity" One expert can be equal to 5 average employees. Forming a business team is the hardest to form. Recruitment becomes the initial priority. Hiring the expert employees will grow one's business and give a greater return of profit in future. After earning lots of profit one can expand your staff.
8. What is the form of taxes one pay's in business?
The taxes in business are different from another tax system. In the present scenario, GST is also included in the tax paying system. Which are applicable to goods and services. One should know how to operate the tax aspect as a startup founder. Taxes and liabilities modify a lot depending on the legal structure of the business. For example in India, business is exempt from capital gains tax and they also have to pay no income tax on their profits for the 1st three years. Including risks operating huge in startups one should surely protect themselves in case, things go wrong due to abrupt situations.
9. What can of insurance one can take into account for business?
The insurance has become an important agent nowadays, it is basic protection from financial loss and any business or company possibly can face this situation. So to avoid them there are various insurance schemes are provided. The name of the insurance scheme one should know are:
- Property insurance
- General liability insurance
- Commercial auto insurance
- Business interruption insurance
- Health insurance for employees
- Professional liability insurance
- D&O (directors & officers) insurance
- Product liability insurance
- Key man life insurance
10. How to promote the business idea not only till the market but also all over the states and countries?
Using the marketing strategies can help to promote a business that is a place, price, promotion and Product. This is an offline process of promoting a product. Online is nowadays playing an important role so though websites, blogs, articles one can promote their product using social networking where one can connect to the audience by sharing the links of the blogs and articles.
This will expand one's service to the world. Advertise the business directly to various type of audiences. This can help in generating good profits in future. All of this depends on the nature of the business as advertising can be expensive in some parts. For example, the business doesn't want to spend any money in advertising but they can use social media platform by sharing the images of the product or services by making a separate page for your business work. This will help in building networks and creates a great level of communication.
The business idea is many but they need a set format to be executed for the successful running of the business in future. Follow and answer all the questions above and one is ready for setting up a business. Never stop thinking for doing business just research and analyse things carefully - You can build your own name in the competitive markets.
Creativity with strategy is the idea of being successful in business!
Author: Shrishti, who is a content writer at LegalRaasta has written this article.
LegalRaasta is a set platform that provides expert services like GST registration, MSME registration and FSSAI License registration etc. Do visit the website for getting the services related to business licence and registrations.