It is very difficult to take risk of investing money in new business. So, it’s better to learn that how to start a new business to overcome chance of failure.
Here are some steps you should follow for new start-ups.
STEP # 1 DECIDE BUSINESS TYPE
Before jump in new field, it’s better to do a small research that what kind of business you should start? Is it of your interest? Does a customer really need the product?
You should go for small market research about your business type, customers, suppliers, your future competitors.
STEP # 2 WRITE BUSINESS PLAN
Once you decide your business type, create a business plan in writing. It will contain Business activity, Potential Customers, Suppliers, and Competitors, Marketing strategies, HR plans, financial highlights, Projected Financial statements, SWOT analysis, PESTLE analysis, breakeven analysis, market analysis and industrial analysis.
STEP # 3 BUILD EXPERTISES
Having plan in mind is not sufficient. You should have practical knowledge about it. Join training or get a job in existing player firm of your business to build and polish your expertise to reduce chance of failure.
STEP # 4 DECIDE YOUR LOCATION
Location matters a lot. Choose location for your office, plant (if you are going to manufacture), and outlet. It’s better to sign a contract with 3rd party to place your products in starting on 1% to 5% commission of your profit margin.
STEP # 5 OBTAIN FINANCE
Contact venture capital firms and find angles to invest in your business. You can also apply for government loans. Convince personal colleagues to invest in your project.
STEP # 6 CHOOSE BUSINESS STRUCTURE
Decide either you will go for sole proprietorship, partnership or limited corporation. Depend on your choice and your business type.
STEP # 7 MAKE AGILE TEAMS
Individuals can’t bring success; it’s the team which can. Hire best and energetic people for your firm. Because 2 heads are better than one and it’s really good to involve smart team in your firm. Design effective performance management system to avoid free riders.
STEPS # 8 REGISTER YOUR FIRM
Get registration of your firm with country’s law. Complete all legal requirements including tax rules and regulation.
You are ready to start your own business.
