Well, you have this wonderful idea about starting a new business and are mighty thrilled about the whole thing. So, how are you going to go about it? What are you going to do about it? What are you going to do to convert this idea into business? How are you going to turn your dream into a reality? Starting a new business or a venture is not an easy thing at all and therefore, you ought to take things quite seriously.
All of us have the right to dream and all of us do get ideas; but converting this idea or dream into a reality is something totally different. You may really have a very smart and a really good idea, but before you jump headlong into your dream, it would be truly sensible to spend time going through the whole project rationally using your head instead of your heart.
We have put together a few tips and guidelines which should hopefully, help you start your new venture.
- Do not enter into a business just because you have run out of options. Running a business is a real serious matter and do not even think about starting a business unless you are interested and unless you have your whole heart in it. And, think really well of the area of business you would like to enter.
- Do not enter into partnerships with your friends: One of the cardinal rules of business is not to enter into partnerships of any sorts with your friends. Many experienced people will tell you that it is a recipe for disaster. Not only will your business run into trouble, but you can be sure to say good bye to your friendship. Partnerships with friends are rarely successful.
- Before you go ahead with your venture, it would save you a lot of grief later, you could do some basic research about the entire gamut of your business such as the scope, the market, movement of your product, availability of raw materials, the competition, the pricing, and if it would be possible for you to make a dent in the competitor’s market.
- Another important rule to be remembered is to go about your business very slowly. By starting slowly and moving about steadily you can keep things under your control and focus on the more important things.
- Create a business plan and remember that it need not be elaborate and complex – a mere one page plan would suffice. Your plan should have details of what you offer, your price, your target customers, and your idea how to do it.
- Decide on your target market and your target customer. Be specific about your customers whom you would like to target – Higher income group, middle income group, or the lower income group.
- Fixing your price is important and the price that you fix is very crucial for your business, as it would be related to other parameters. The price that you fix should not cover your cost alone, but it should also cover a profit and all expenses, including hidden costs if any.
- Plan how and from where to get your capital, and of course, there are a number of options. If you are capable of putting up the entire capital by yourself, there are no issues. If you cannot, you will have to examine other options. You could ask your friends, relatives, and acquaintances to put up the money (crowdfunding). If you do not like this idea, then you can avail a loan from any financial institution or a bank.
- If you have decided to avail a loan from a bank or micro-finance organisation, you will have to submit a number of documents. In a nutshell, the documents could include:
- Plan how to tackle your target customers. Create a list of potential customers and start building your customer base. Contact them, be in touch with them, and keep following them up.
- Make it a point to be in touch with like-minded people of your industry. Keeping in touch helps and you can learn a lot of things from them – from their experiences and from their mistakes.
- Once you have decided on the industry keep attending conferences, seminars, and workshops pertaining to your field. You are definitely going to learn a lot of things from the experts. One thing is for sure – you can avoid the mistakes some of them had committed, and save yourself a lot of trouble and money. You should remember that now that you are in business, you have to keep updating yourself with the latest knowledge, the latest trends, the latest technology, and the latest production techniques. Keep reading about the industry and talk to your customers, for if you want to succeed you cannot ignore all these things.
Proof of identification
Proof of address
Project report, which should have a viability report, cash flow statement, project income and expenditure, and profits
Income tax returns
Details of property to be given as collateral, if the quantum of loan is high
Details of guarantors who would be guaranteeing your loan
In this article the author offers a few tips to would-be entrepreneurs who have a dream of starting their own venture, business, or manufacturing plant. One of the important piece of advice that he gives is not to start any business in partnership with friends. The results of such a venture can be rather tragic. He also offers a few suggestions on how to go about the things that you have to do before starting a business. He suggests entrepreneurs to keep themselves updated with the latest technology and trends in the industry by attending seminars, conferences, and workshops.