Starting your own business? 10 things you must know!
Ask any entrepreneur and they will all give you the same reply – starting a business requires a LOT of tasks. A brilliant idea can become a fully functioning business only with your efforts. However, while starting your business, your efforts must be synchronised and in line with the initiation of the business.
- Think – Your business starts when you first think of starting a business. Sometimes it is a brilliant business idea, other times, it is the sheer entrepreneurial will. You have considered your skill, your passion and your expertise before zeroing in on a business idea. You will also have to prepare for the life of an entrepreneur and take stock of your financial resources.
- Plan – The business plan is the blueprint that will guide your business from idea to establishment. Apart from being the guidance document, a business plan is also of interest to the investors and banks. And even if you don’t plan to pitch to investors, a written document that details the future course of action is vital for starting a business.
- Research – Research will help you find out if your trade is being already pursued by others as well. You will have to get some information about your competitors, potential customers and the market in general. If it is something that no one has tried so far, find out why. There may be a valid reason for not doing it. Many businesses build prototypes and samples, which then undergoes market research to find out the customer response. Thorough research will help you to make informed decisions about the strategies and objectives of your business.
- Estimate and arrange the finance – You will have to go back to your business plan and assess the financial requirement that your business is likely to need. Based on the estimate you will have to decide the arrangement of the required finance. If you have sufficient balance, you don’t have to think further. You can keep control of the business in your hands and enjoy full ownership. People also arrange funds from their friends and family, in which case they often enjoy favourable lending terms. The government have schemes for financing businesses, as do banks and financial institutions. You can also consider venture capitalists, angel investors, crowdfunding, etc., to finance your venture.
- Decide on the business structure – You must decide whether to run your business as a proprietorship firm or go for partnership, limited liability partnership, private limited company, etc. Each type of entity has its features and benefits and you will have to decide which model suits you most.
- The physical location of the business – You will have to look for a place where you can set up the offices. Your registered office and factory addresses will be required at every stage of your business – be it for registrations, bank account or while entering into agreements.
- Registration, licenses and permits – A business officially comes into existence only after the necessary registrations are done and licenses and permits obtained. For example, if you plan to open a medicine store, you will need a drug licence from the office of the drug inspector. Trade licences are essential registrations that are applicable to most businesses and are granted in India by Panchayats and Town wards.
- Bank Current Account – A Current Account for the company ensures that all financial transactions are channelised through a dedicated (set of) bank accounts created for the purpose. Apart from helping you to bifurcate personal and business expenses, bank Current Accounts help the business in many ways. HDFC Bank Current Account products offer a wide range of services to its business customers and are equipped with NetBanking and MobileBanking platforms.
- Laying down operational details – You will have to finalise the product/service and fine tune it based on your know-how and initial market response. Alongside, you will have to develop the core team of your business who will take forward the company at an operational level. It is the phase where you make significant tie-ups with vendors and service providers as well.
- Brand building and advertising – Being a new business entity, you will have to decide on the way to make your presence felt. With smart advertising and marketing campaigns, you will be able to build a brand image that is necessary to start and sustain a business.
However, the launch of the business is only the start of your journey as an entrepreneur. While meticulous planning can put your business in place, the reality of regular business challenges may force you to adjust and realign your strategies and plans regularly. At the same time, taking the right step, to begin with, can put you in a reassuring position at the beginning of your business venture.
Read more on how to open a Current Account.
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