How to start a business
Business is itself a beautiful layout and process in which you invest your time, ideas, and finances to get some output from it and to grow your portfolio. There are multiple types of businesses which include sole proprietorship, partnership, and organization wide business. A few things are necessary to let know before starting a business venture.
In this article we will guide you how to start a business and keep it growing and to boost it up for a long time to earn good revenue:
What most people think is that you must have an investment to start the business, but the thing that comes first is not the investment or finances, but you need to have a good idea to build a base for your business. You just have to know what are the services or products which you can sell and you have expertise in it. You can evaluate by just fining out the market gap and the competition in a certain market. You must find a low competition market a good responsive market. Where ever you are living just look at the demands and needs of the people and come up with a good idea to meet their demands at a low price and good quality products or services. You must provide an answer to a WHY of people, it may be a question related to any product or any service, when you will get command on that WHY, you can gradually be the market leader soon, with a soothing and profitable idea only.
Write a Business Plan:
After finalizing your business plan, you must have a written document or a feasibility analysis in which you must mention that to whom you are selling the products, what is your end product, what will be the cost, what will be the profit margin and what will be the other expenses. These all questions can be answered in a well written business plan. Mention all the public data, the trends of their change in the demand of the product or service you will be selling. Do the complete market research on the basis of demographics and geographic. Write down the complete strategies as per the target audience and mention every aspect with time frame that when you will reach to the breakeven point and start earning profit. This written document will not only be beneficial for you but you can submit it into some organization to have a fair idea about your start up and you can even submit it to bank for having easy loans as well.
SWOT and PEST:
SWOT and PEST analysis can help you know your strengths and weaknesses. You can also check the compatibility of your business with political, economic and social factors. These analysis can help you know about the latest technological trends which you can adopt for your business to grow and increase the sales. You can came to know about the political factors influencing your business, about the tax rates and economic stability. You can know about the social responsibilities and ESR activities which you can conduct to create a good will for your business and a good brand image in the mind of target audience. On the other hand SWOT analysis can help you to know about internal strengths and weakness, on which you can work to grow and gain more market share where as you can came to know about opportunities and threats of the external environment and the strategies to cop up with them.
Financial analysis is a vital step before starting a business, you have to make estimates and guesses in a written form to reach the breakeven point as soon as possible. You must jot down the estimated balance sheets, income statements and statements of cash flows. You must know about your assets and liabilities and must keep an account for miscellaneous expenses. You can have a good idea of financial projections and future incomes by accessing to your competitors financial reports who are already into market, you can just have an idea as there are many factors which are influencing. But this is a necessary step overall as it will help you to know that when you will cover up your cost and how you can maintain your assets and liabilities.
The above mentioned steps can help you to have a good startup having long term growth increased profits and expansion of market share as well. These steps seems to be unnecessary but without conducting these steps one cannot attain success in a short period of time.