If you have decided to write your destiny then it is the right decision to start a business. You are on the way of finding the balance in your life. No need to be with those people, you don’t like. It is time that you find a team that helps you make a successful business.
You are going to the rewards for the risk you take in your life. No one will be taking credit for your work. How will you start to prepare for this kind of life? It always remains a dream if you don’t take the first step. By reading this guide you will be halfway there.
Get ready to be on the roller coaster of the business world. Let us learn how to start a business.
Think About The Business Idea
A business is nothing without that superb idea which makes your business worthy to become a brand. Before we move on to the process for identifying a great idea, let us know what are the kinds of idea you can come across with.
Online Business Ideas
Online businesses are demanded in the Indian economy more than ever. You don’t need to be an expert to fulfill the need of a person. Just think about something which will help them as quickly as possible. Your answer will be an online business. Don’t bother if you think that online business has any difficult process to set up. Read below to know more.
Offline Business Ideas
Offline businesses are much profitable if carried purposefully. What we mean by purpose is you need to have an objective or a vision before starting a business. The vision will help to drive your business at its peak.
Both online and offline business works on the same procedures. We will classify each step for you to make this guide easy and helpful.
How To Develop Business Idea
- What is the thing that you love to do most? It is the best business to start by providing or supporting the thing that you love to do most. For example, you love shopping then start an online shopping store. How it will be a great idea? You are already a good shopper, now you are just selling the best items. You can be a big hit.
- What gets you irritated every time? When you find the problem in the society then give a solution to it. It can be a business for people. People will pay for their worth. Such as air cleaners for the polluted environment.
- Predict a challenge that can be there in the future. A great businessman always knows how to predict. If you know a particular industry then start predicting what can be challenging for the future. Such as the use of computers at the time introduction of computers.
Evaluate Your Idea
Whether it will work as per future demands?
You need to predict the business impact on the targeted market. prediction is the most important quality that you must have. It may be possible that you start providing 4G mobile handsets and in the future, these are replaced by 5G. Then your business is going to fall apart. Read business articles to know the latest up-gradation in technology.
Whether it is profitable enough?
To know about the profitability of the business, start by analyzing the cost of the products and services. Now question yourself, will you purchase that product/service on its cost and more than its cost. If yes, then how much more money you are willing to give another person for that product/service.
Is it possible to expand the business?
You may develop a business idea that is good at a small scale. But you must know is it possible to expand this product/service on a large scale. For example, service limited to a particular area may not be suitable for others are. Then its scalability becomes limited.
Can people adapt to the business idea?
If you are going to introduce something new then try it on a very low scale. People may refuse it. Then the market is nil for you. Like sanitary napkins were not taken by women initially and now also at someplace, they are refused. You may come across difficulties to market your product.
If all these questions are answerable and those answers are in your favor then you can start a business. Don’t worry if these answers are not on your side. You can start by reading the highly influential books to get your idea on track.
Here is a list Do follow to make sure your idea is on the way to success
Do The Research
To know whether the product has a market, you can start to google it. If it is a unique service then offer your service to those people who are in need. If they pay you for that then you already have a customer. Also, you know that you have a potential market to explore. Keep in mind you will need to invest good money to get returns.
If it has the market then do the market is ready to pay for the worth?
One way is to start using those researches already available online. It will help you to know the facts and figures will before in advance. It is also helpful to save your money.
The second way, if you don’t find anything. Then go for international markets. Internationally, your business idea may have been developed. Start knowing what are its pros and cons from there.
The third way, survey online or offline to know the customer demand for your services/products.
Research for an Online Business
Is your idea possible to be applied practically? You can answer this by checking the product’s weight and size. If you can carry it, store it and deliver it to customers, then go for it.
Is your product good enough to sustain for a better time frame? Check it by using yourself. If you are the user of your products then it is the best marketing. Quora was the first to use this type of marketing.
Do you have a platform to showcase your product? For example, gold is not able to make its place online. People don’t trust purchasing gold at online platforms. Check the trustability of the product/service.
Before implementing your business into the real world. It is the last step that you need to perform. You should check the performance of the product/ service with a small base of customers.
Strategies for online business
- You can roll out feedback forms online. Various social websites provide a basic feature to share a questionnaire that can be filled within seconds. Also, you can target the audience according to your business, If you get a good response then that’s it, go for the next step.
- The second thing you can do, let your customers interact with the product. Give it on a trial basis. Maybe the product has some defects it can be corrected before launching officially.
Strategies for offline business
- Host an event, a small get together event will be a great way. Showcase your products. Collect feedback by talking to each person. Know what is their opinion about the product/service.
- Organize stall at the event, arrange a stall at local events. People usually try new things at these events. You have a good possibility to get honest opinions.
Make The Plan
A business plan is a basic necessity to present your business idea on the papers. Every business creates a business plan that gives a detailed description of the business in one place. When we think about online business or an offline business, both of them have the same requirements toward a business plan.
Let us understand those requirements in detail.
- Executive Summary: It is the short version of your business.
- Business Description: You need to describe what your business does.
- Market Analysis: You need to give details of your market. It helps to get funds in the future.
- Business Structure: Describe the structure of your business. It will help the government to identify your business.
- Products/Services: Give descriptions about how you provide services and what products your business offer.
- Sales: Projected sales of your business.
- Funding: What is your investment? mention details for use of investment.
- Appendix: It is optional, you can provide licenses here. (if any)
Design A Business Structure
Until now the government has specified a limited business structure for online or offline businesses. You have the same options whether you start an online or offline business.
The basic factors on which business structure is dependent are:
Liability on business owners
- Number of a business owner
- Profit Share
- Legal Deeds
- Decision-Making Power
- Tax Implications
- Cost To Implement
- Future Needs
Three types of business structures are prevalent in the business world.
This type of structure is followed by that business when business is operated by a single owner. The profit is taken by one person. Also, the liabilities fall on the same person.
Where more than one person is responsible for the functioning of the business. This type of structure is known as a partnership firm. Profit and liabilities are shared by every partner. It depends on the partnership agreement what is their role, liability and profit share.
The most expensive legal structure where the company is a different person and owner is a different person. This structure is termed as a company. Liability falls on the part of the company. Owners are not responsible to pay the company’s liabilities. Also, profit is invested in the company.
Team building depends on the type of business. The process of recruitment is of utmost importance. The people you hire now will be responsible for the success of your business.
The major difference that you will encounter between an online and offline business is the post. Such as online businesses will have digital marketing whereas offline businesses will have a marketing manager.
Factors keep in mind while recruiting
Experience The most basic demand for a company is experienced employees. You should make a background check through their past companies.
Potential Beyond the experience of a person, the initial is the second priority for an employer. Make sure that employees have the required potential to work for long hours and adjust to technology.
Skills Employers must check the skills of employees. You can take a practical test by making them perform a daily task. Also, focus on both hard skills and soft skills.
Plan For Finances
You have various options to get the funding for the business. Evolution in the industry has led to different opportunities to get funding for your business. Your business plan will help you to get the funding directly in your account.
Various funding options available for online and offline business
If you have saved enough to start a business, then the best option is to invest your fund. Do consider the risk you are going to take. Also, keep emergency funds with yourself to be ready for the lows of business.
The government has allowed getting loans at low rates. If you are confused about funding options then read our guide to government loan schemes for small businesses.
Private investors are last resort to all those who can’t find the best funding options for their business. If you are someone who IS not able to find funding then you can go for private investors.
It is a popular form of investing in startup businesses. Angel investors are those who check the future profits of your business and then invest in your business. They may demand some percentage of ownership in your business.
Campaigns are done by various businesses, who know about the potential of their business idea. They usually get good funds by pitching to investors.
You can sell equity of your business and get funds. It means you are giving the shares of your business, who will eventually get some control over the business.
It is a kind of loan that you get from individuals. Here you are selling debentures to people. Whi in return pays money. This type of funding is possible if you are a company.
It is the most used form of investing. You may see that business owners do invest some part and some investment they get from investors. It means you are getting investment in parts from various types of funding options.
The business should be registered to get its presence under the purview of the government. For an online business, registration will be accompanied by purchasing a domain for their website.
Apply directly from here, to get your business registered.
After you have set up a business legally. It is time that you launch your products and services to the market. While launching your business you need to process these factors so that you are attracting potential customers.
Research about the quality of products delivered or provided by your competitors. You should be on top of the quality at the initial stage. It will help you to make contacts with long term customers.
Your products should match with the taste of customers. Also, your target audience should be reachable to your products. Take the help of your market research and give an invitation to the targeted market.
describe products/services well. It should be precise but it must cover all aspects of the product. You can take the help of your competitor’s product and understand how they describe the product.
Be present on every website. Especially on the launch day. This is important for online business. As offline businesses are available to see at the market. But online business makes their space by promoting through online websites.
The location factor is important to be considered by an offline business. Your location will help to get maximum customers. Online businesses need not worry about location if they have a good domain.
Various factors to consider while choosing a location
Space Make sure that you have enough space to keep raw materials, machines and working space. It is a one-time decision.
Parking Most of the businesses don’t get success without parking areas. Make sure you have a parking lot.
Reachability Your location should be at a center area so that it is possible to get maximum buyers.
Convenience Art is your buyers are at convenience to buy from your place. It means maintaining a healthy environment at work.
Time To Market Business
Before launching to Executing your business, every step requires good marketing techniques. Marketing is a tool that is used by business very carefully. It can make or destroy a business very conveniently. We have introduced some strategies that will help you to carry out marketing smoothly.
An online business can get referrals through forwarding messages. Also, cashback is the best way to promote referral of your business
Good return policies will make sure that you have high sales. If you give them trial period then it is possible that they try that product and then keep it.
People are attracted to the word sale. Also, online businesses are at an advantage. They can start a sale almost every other day. Such as Monday sale, black Friday sale or happy Tuesday sale.
Offline business creates a buzz by discounted offers. They get a huge rush in their store if products are sold at a discounted rate.
Regular events are helpful to showcase your products. It works like the exhibition of your products. Especially when they are new in the market.
Launching creates remembrance for at least 3 months from the start of the business. It is a crucial time for a new business. Make sure you have a great launch.
We hope our guide was helpful to you on how to start a business. By using the above strategies for developing a good small business idea. If you are still doubting then do read the guide mentioned above to create a business idea and evaluate them.
Here is a TIP# Start with fulfilling the needs of people. If you can do that then you have a business idea.