2. Develop a Business Plan
3. Manage Funding
4. Separate out You and Your Business
5. Reach Out and Connect
6. Choose the right type of business entity
7. Optimum Use of Resources
You think your idea has great potential and so do your family and friends. But that is not enough. You have to do primary and secondary research. Go out and talk about your idea to different kinds of people especially to your target audience. Try to find out if people are ready to pay for the product/service that you are offering. You will learn a lot and understand the potential of your idea
You should have a business plan in place however small or big your idea seems. When you write a business plan, you will be forced to think on all aspects of the business. The business plan should have all the important information like
- Business Description
- Customer Analysis
- Market and Trend Analysis
- Competition Analysis
- Financial Projections (Current Financial Status and Future Plan)
- Marketing Strategy
- Operational Processes
- Management Summary with necessary contact details
Needless to say, capital is extremely important when you start on your own. It is important to plan for expenses, investment and operations in the initial period of the business. When you should calculate start up costs, you should consider cash to cover personal and business expenses for the first few months or a year as you might not have an alternate career which gives you money on a periodic basis. You should consider costs for running the business, taking orders, payment of salaries, suppliers’ payment etc. so that there is money to sustain the business and yourself for a couple of years.
You should then think of different sources of funding. It could be your savings and investments, loans from friends and family, VC funding, bank loans etc.
Reach Out and Connect
You should make an effort to reach out to other entrepreneurs who have seen it all, mentors and people knowledgeable about the industry and market you are targeting. You can join groups supporting entrepreneurs. You should attend seminars, industry conferences and training courses. These will help you learn a lot, as people will share the obstacles they faced, mistakes they made. You will also be able to network with many people in the industry.
There are many start-up resources available on the Internet that will help you in getting your business going. For example, TheRodinhoods.com by Alok Kejriwal is a one-stop website for sharing business ideas, getting answers to your questions, getting help with funding and meeting like minded people.
Yourstory.in is an online platform based out of Bangalore which provides guidance for start-ups and also holds events for entrepreneurs.
Separate out You and Your Business
The business is a separate entity and it is not you. The time, money and all other resources spent on the business should be separately accounted for. Income and expenses of business should be separately accounted from your personal finances.
Choose the right type of business entity
There are different ways to register a business legally. Your business can be any one of the following entities –
- Limited Liability Partnership
- Private Company
- Public Company
Optimum use of resources
You will need cash to kick-start your venture. Do have a plan on how to source funds for the business and how you plan to meet various investment requirements and expenses along the way. Think up on ways other than bank loans to get funds.
It is not necessary to have a big marketing budget. Try out innovative but cost effective marketing tactics. Social media and technology can be used very well to advertise your business.