Starting a business requires more than just the capital for investment. The investment must include the capital and expenditure. The amount earned through the business should be able to cover all the expenses before actually venturing into earning a profit. All business starts off with a strong motivation and a passion to do something you enjoy. A start-up business consists of many regions that need regular monitoring and management to give an efficient workflow. This would not only give stable rubbing for the business but also a smooth flow of income for future growth.
How to start Business
To start a business from scratch, one must follow certain rules and look into certain important factors before venturing out into the business world. If you have a unique idea or have a career plan to go ahead with so that you can grow along with your firm you can opt for a business of your own.
The prime goal of all new business owners who is to start up their own stable source of income and manage their investments in a manner to maximize profit. Although the success rate for new business is not high. The statistical data in the US states that most firms end after two years of them starting, some manage to hit the five-year mark but get dissolved. A successful start means following all the required steps and completing the legal requirements for starting a small business.
Steps to start a small business from scratch:
Most likely if someone is about to open up a business it is definite that they have identified the ideas that they would be working on. To start up the firm or set up a smooth running business one must sit, analyze and understand the demands, requirements, competition, and threats that the business is liable to face. The P.E.S.T analysis of the entry business must be validated before starting the venture.
Make a Structure/Plan-
The business idea can only be turned to a successful outcome by actually planning out every step of the way. The different types of businesses have different planning that needs implementation for the business to grow and thrive. The business plans are the structure and layout that investors and bankers peek into for validation and authentication. This is done so that the investors do not waste their money on a business that is bound to fail in the near future.
The start of small businesses also requires a lot of money. It requires the initial capital to start-up and set up the business as well as manage the expenses of running the business until growing profit pours. Laying your estimates on the table before starting is probably the best financial plan for starting any business. These include the costs of licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc. The business must run for 12 months at a stretch to gain all its market name and brand identity.
The business that one starts can be one of the three:
- a sole proprietorship
- a partnership
- a limited liability company (LLC) or Corporation
The type of business would decide the taxation and business consultation requirements. Hence if the business is complex then it would be advisable to have an attorney or CPA giving consultation on how to form the business strategies.
Brand Naming and Logo-
Choosing a good business name and logo is an important step in starting a business. Then the next step would be to check if the name or logo was chosen is a trademark. It should be a logo and name that has been affiliated to any other firm.
Licenses and Permits-
Getting the licenses and permit for the business and products that your business would be selling is an important step. This will be important for all legal procedure to occur later.
Choosing a good accounting system for the business is necessary in order to create and manage your budget, set your rates and prices of the commodity and services. Multiple software is now available to perform the accounting for the company. All the company would need are few skilled accountants.
Once the business is up and running, there is a need for a steady flow of work and income. This can be accomplished by a good promotion of the company. The new age tools and techniques for the promotion of the business are not only effective but are cost-effective. The marketing of the company through an application, websites, banners flyers, digital marketing through SEO are some of the modern marketing tools for companies.
Problems with their solution faced during starting a business
1.The Management of cash flow-
Small business owners have a big problem managing the inflow and outflow of the cash. Due to the small size of the business, it is very hard to regulate the exact amount of cash and the inflow of profit does not seem substantial. After the job is done for the client, the payment is received after a period of 30 days or more. In the meanwhile, the business owner has to manage payments for everything from the employees or contractors to the mortgage and the grocery bill. This becomes a tedious task for the start-up owners to manage especially when the profit margin is not at all substantial.
The overcoming of the self-doubt and bringing in confidence is the ideal trait for entrepreneurs. Good support like family and close friends who support the cause and your passion would help big time. The major way the cash flow can be maintained and stress from over-billing can be overcome are through the idea and strategy of advanced payment. An initial down payment at least ensures some money to hold on to before the entire payment. It also allows the owners to pay their employees and overcome the burden of expenditure.
Another strategy for increasing the cash flow would be to ask for a faster invoice payment like that is within 15days. The halftime for the payment allows you to address the customer for the late payment 2 weeks in advance before all the bills for the next day get due. Sometimes even a predefined period can be set before any bill payment as per the discussion with the client or customer.
One of the most dreaded things for a business owner who is starting a firm is the hiring of the right candidates with the right skills. Although many may have experience but to get the right candidate that can work with the company to help build it are rare to find.
Instead of the traditional way of hiring a candidate with exclusive ads and vacancy banners seeking the candidate with good educational degrees and experience. The owner of the start-up can cut all the hard work and get useful candidates simply by listing the most important features required for the job.
3.Selection of niche-
Choosing what to sell or what service to provide in perhaps a very important factor in the running of the business smoothly. Choose a business or service that is optimum suitable to bring good revenue and allows the company to hire talent likewise.
Do market research and identify the strong point and products that you have a thorough knowledge about. Choose the business where you have perfect clientele and familiar with the process end to end.
At Hipl, we can help you build your websites, carry out market promotion of your company. We also build an application and give digital solution for new start-up companies.Tags: business, small business, start a business, startup business plan, startup companies
Categorised in: Business
This post was written by HIPL