Starting your own business can be a formidable task. You must consider many things, such as fulfilling legal requirements, funding, marketing, etc.
There could be many reasons that influence your decision, but you must have a great business idea and the funds to start your own business. However, many people who have entrepreneurial aspirations are reluctant to start their venture because of the fear of failure.
But once you have decided on setting up business in India you must plan everything to the last detail. Though there is no secret formula for starting a small business, we will try to offer some useful tips for the same.
This article focuses on the checklist for starting a business.
Checklist for Starting a Business
As we mentioned, launching your own business initiative is a challenge. But when you are determined to dodge all the obstacles and start your own business journey, there is no looking backward.
A calculative approach to starting your own small business in India can help you. Hence, this article discusses a checklist for starting a business in India. So, let’s get started without further ado.
1. Write Your Own Business Plan
Your first step to start your own small business would be preparing a comprehensive business plan.
The first element of your business plan is the Executive summary. It is the top-level outline of everything in a business plan.
The next component of a business plan is the business description which includes your company structure, and both the long-term as well as the short-term business objectives.
You must invest your resources in market analysis. It evaluates the standing of your business in relation to that of your competitors.
Furthermore, you may need to work on some other important points like description, financial projections, and an operational overview.
2. Managing Costing in Business
Once you have developed your business idea and made up your mind about setting up a business in India, the next step would be to calculate the cost involved in launching and operating the business. Factor in all the expenses, including production costs, marketing expenses, working capital, and other overheads.
The general rule is that whatever figure you arrive at, you should multiply that by four. There are bound to be unexpected costs while running a business and you must account for them.
Also, calculate your personal expenses. It is better to be prepared for any contingency than to run short of cash when you need it most. You may also have to take a business loan, so explore all options before taking the dive. Another option is to find investors for your business.
Here we discuss there are different types of overall startup costs:
One-Time Startup Costs:
The major elements that count under it include registration fees, lease deposits, and others.
Labor Costs:
The salary and the worker’s salary come under the labor cost.
Overhead cost:
The elements that get counted under the overhead costs include utilities, computer equipment, production costs, and others.
3. Registering Your Business
One of the key checklists for starting a business in India is registering your business.
Registration of business in India is a must to continue business operations.
First Pick Up A Business Structure
Picking up a business structure is, without question, one of the major hurdles. There are a few types of business structures. They include partnerships, proprietorship forms of business, limited liability companies, and finally, corporations.
If you are registering your business as a Sole proprietorship form, it means you are yourself, the organization.
Partnership is a co-ownership form of business. This denotes how you will be running your business based on the operating agreements.
Partners can also split the legal and financial obligations. Also, they share the profits.
With the formation of the Limited Liability Company and partnership, you work as a member of the organization.
Your assets will come under protection in case the company goes into debt.
The most interesting thing is the corporation where you can create a separate legal entity that owns all the assets and liabilities for the organization.
4. Open A Company Bank Account And Obtaining Necessary Permits
It is merely unprofessional if you run a business without a bank account. If you have a separate bank account to manage your business, then managing it becomes way easier.
However, if you accept credit card payments in person, you can look at credit card processing services.
In India, there are different bodies that oversee business activities run by a company.
Hence, to start a business organization, you must get the necessary permits. The common licenses and permits that you need to start your own business initiative include:
Health permit, liquor permit, sign permit, zoning permit, and finally, the occupational license.
5. Financial Accounting System: Major Checklist for Starting A Business
Money can be complicated quickly. You need to have an automated system to manage the budgeting, financial accounting, and documentation prior to making the sales.
Basic Bookkeeping 101
There are several bookkeeping records you need to keep a regular update on. These tasks include balance sheets, cash flow statements, bills and invoices, payroll, quarterly financial statements,s and finally, tax returns.
If you are not confident in maintaining it, you should hire a professional. You can also get the help of different scouting software(s).
Other than these two that wish to mention in the checklist for starting a business include buying business insurance and creating a management system.
Be A Solution Provider
Instead of thinking about selling something, think about what you can offer as a solution for something. Your product or service should fill a gap in a particular market.
When your business tries to fix a problem, it becomes easier to gain customers. Be very clear about why you want to start your own business.
Keep your concept simple and don’t make things complex, otherwise, you could end up offering an expensive product that may not be well-received by the consumers.
A new product by a hitherto unknown company must be simple and affordable, or consumers will not show much interest. Keep the product basic without adding any unnecessary features and keep the cost under control.
Be Prepared for the Worst
Available data suggest that over 50 percent of new businesses must shut shop within the first five years. So, irrespective of how diligently you have planned for your new venture, there is always a chance that it may not succeed.
You must prepare for the worst-case scenario. What if the business fails and you go bankrupt with no money visual left?
Face the World With Confidence
One challenge many new business owners face is that they are clueless about how to sell and get intimidated while trying to share their business with the world.
Don’t bother about what people think about your business, just go out and speak to your customers to sell your product or service. Don’t shy away from speaking to a large audience; get out of your comfort zone and speak fearlessly and confidently, after all, your business is at stake.
You have to constantly types of market and network, so be confident when you communicate. You might find it difficult initially, but gradually everything will fall into place.
Take Advice
The first thing you need to do is seek advice from others. Talk to friends, family, experts, and others and discuss your ideas with them.
Listen to what they have to say and absorb everything. The more people you speak to, the more diverse views you are likely to get, which can create a lot of confusion in your mind regarding the viability of your project.
Gather as much information and knowledge as you can assimilate their ideas and suggestions and work out the idea in your head. Note things down and make a detailed plan.
When you tell people about your plans, try to read their reactions. Gauge their body language to understand if they like your idea or are just being nice to you when they disapprove of it.
Encourage them to give an honest opinion and based on their collective response you can get an idea of how the consumers would react.
Take the advice of experts and experienced business owners seriously as they have first-hand knowledge of what works and what doesn’t.
Setting up a business in India is an arduous task, but if you plan it diligently follow the tips to start a small business mentioned above, and are confident, then your chances of success will be very high.
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