Starting your own business can be very daunting. There are several important decisions that you have to make. From finance to product and services, legal matters, employment and almost anything to everything, each decision has to be meticulously made without any errors.
Each decision is important and one must have planned ahead of time to make this a smooth sail. But one of the most important is the one related to finance and business ideas.
So once you have decided to start a business of your own, there are a few things that you must keep in mind. Many people will give you all different kinds of tips for your business but it is different for everyone.
Although there are some standard tips that you must know about and follow when starting your small business in India.
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Take Advice from Others and Address your Concerns
Many people think of starting their own business but it is not always that they will do something about it and that is because they have a fear of failure. Not many people want to take the risk of starting something of their own which might or might not work.
From such people, one must talk and listen to their concerns and instead of getting scared, one should try and look for ways to overcome these obstacles.
Tell your mentor, acquaintances about your plans and listen to what they might have to say. Understand their concerns about your business plan and then work towards making all those problems disappear.
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Be a Solution Provider
There are millions of companies selling products or services. So when you start to think about the business plan, do not think of what to sell or what service to provide but instead, think of what problem you are solving with your business and how your business is fulfilling the vacuum in the industry.
For example – If you are living in Chennai, think of ideas in Chennai that would solve the problems of that particular region. When you know what problem you are going to solve, having the right customer base becomes very easy as you would know who to target.
Remember why you started the business and then work towards improving it. Keep your business simple and do not add some unnecessary features that might add to the cost of your product.
Stick to the promise that you have made to the customers and then go over and beyond with your impeccable services.
Calculate the Cost Involved
After your business plan is made, it is time to calculate the expenses that you are likely to incur. There are several costs that you would have to take care of before you start your business like rentals, supply and marketing, working capital etc.
Calculate every minute thing and once you have a total, multiply that by 4 because you never know what unexpected cost you might have to face at some point. Hence you better be prepared and have some cash in handy for dire times.
Do not forget about your personal expenses and also calculate those and only after keeping all these things in mind, you should prepare a budget for your business and apply for a business loan if required.
Be Prepared for the Worst
This goes without saying that every entrepreneur should always be prepared for the worst. No matter how well-planned your business is, you would definitely face some crisis. Planning well-ahead in time would just help you in dealing with it in a much better way.
As per the data available, almost 50% of new businesses in India shut down within the first 5 years. So, if you are already working somewhere, do not quit as soon as you start your business.
It will take some time before you start getting a steady income from the new business therefore, you must wait for this period.
Know the Legal Requirements
Legal requirements are an integral part of any business. Starting your business might be exciting but this does come with a lot of legal business. There are several legal requirements and formalities that you must complete before starting a business of your own.
You must register your business, obtain licenses and permits. One must keep themselves abreast with all the related laws and many regulatory frameworks.
A business set up in India should follow all the rules and regulations laid down in the Companies Act. There would be some licenses and permits that would vary from state to state.