How To Start A Small Business In 13 Steps
Starting a small business can be overwhelming, but with the right steps, you can turn your dream into a reality. Our guide outlines 13 key steps to help you successfully launch your small business!
It can be tempting to quit your 9-to-5 job and start something on your own. Starting your own small business allows you to pursue your passion, be your own boss, and gives you the flexibility that you want at work.
While the market is flooded with various kinds of products and business ideas, there is always scope to innovate and do something unique and better. The success of a business will depend on planning and hard work. Having a brilliant business idea is one thing, but the success of the business will depend on execution of the idea.
Many good business ideas fail because of lack of solid plan for execution and implementation. Here are 13 steps to start a business:
1. Business Idea:To start a small business, the first is to have a solid business idea that you are passionate about. This could be a new idea or something that already exists. You must make sure that the idea has enough scope to sustain a business.
2. Market Research:Market research is important before you embark on a new idea. You should thoroughly research on the size of the market and competing products in the market to ensure that what you have to offer is unique and better.
3. Business Plan:Drawing up a good plan or strategy is vital to the success of your business. One must make a comprehensive business plan which outlines the goals and objectives of the business and the ways to achieve them.
4. Corporate Structure:One must choose the legal structure of the business, whether it is going to be a sole proprietorship, partnership, limited liability partnership or private limited company.
5. Source Funds:Tying up capital early is crucial for any business. You will have to assess how much capital you can put and how much you will have to borrow from banks or non-banking finance companies. If you have a good business idea and don't have enough capital, you can look at other sources like a business partner or private equity.
6. Name and Brand:Name and brand identity are important for establishing your product in the market. The brand should identify with what the product stands for.
7. Business Location:The location of the new business should be chosen in a way that raw materials are easily available and it is closer to the markets you are targeting. Setting up business in backward areas will also give you tax concessions.
8. Company Registration:Once you are finished with the planning stage, you should start with the process of registering your business. These days registration process is online and is relatively quick.
9. Tax Registration:Once the company is incorporated, it has to be registered with the tax authorities. To function, business will need goods and service tax registration and PAN and TAN from tax authorities.
10. Bank Account:After receiving the certificate of incorporation and the tax registrations, the company must open a bank account. The bank account is necessary for tying up funds as well as managing the day-to-day transactions of the new business.
11. Licenses and Permits:Make sure that you get all necessary permits and licenses from local authorities and regulatory bodies before you start business. This could include license to operate and mandatory approvals from pollution authorities.
12. Hiring Employees:Once the permissions are in place you should look at hiring employees to help you run the business. When hiring, make sure that you employ only the absolute minimum number that you need so that operating costs remain within your budget at the early stage of business.
13. Business Promotion:Last but not least, you should do business promotion when launching your product in the market since very few people would know about your product. Business promotion can be social marketing or through physically participating in local exhibitions or fairs. Marketing and promotion is important to spread the word so that the business can gain some traction and customers.
Initial days are the most crucial for a new business. Make sure that you embark on the new journey with solid planning and research. Even the best of ideas will need lot of perseverance and hard work to sustain and prosper.
You may also have to arrange adequate funds to sustain and grow your business. For this, you can take either a gold loan, or personal loan or an unsecured business loan to begin with. But make sure you take a loan only from a reputed bank or a non-bank lender such as IIFL Finance.
IIFL Finance provides a variety of loans to help new entrepreneurs to make their dream come true. The company, one of India’s leading NBFCs, provides gold, business and personal loans via digital processes that reduce paperwork and quicken the pace of approval and disbursement. The company offers loans at attractive rates and even customizes the repayment schedule to help borrowers clear their debts with ease.