Are you searching for brilliant business ideas? Also want to know how to start a business from scratch?, I will tell you in detail how can you too start a business, and what things you should consider in starting your own venture.
Also check this amazing video by Dhruv Rathee down below.
However, you might have come across many businesses in some way or the other at some point in your life. You might also want to start a business.
There are businesses everywhere. For example engaging with a grocery store daily or buying a luxury good sometimes both are businesses.
Just think why some companies earn tremendously and how they work, maybe at some point even you wanted to start your own business
To sum up the key rule to start a business is hard work and patience.
Things to learn here-:
- Ask yourself why does one want to do business?
- Which business idea to choose from?
- Do proper market research.
- Get feedback.
- Writing a business plan.
- Legalize your company or writing a business structure.
- Financing your firm.
- Developing a team.
- Keep working towards the development of the product or service.
1. Why to start a business?
Firstly, ask yourself, why do you want to start a business?
There might be many reasons. You might be wanting freedom, or you might be wanting to get rid of the 9 – 5 job hustle, or also in some case you might want to earn more or not have a fixed income.
Moreover, In the first step, you should ask yourself why business and not a job, and also if you are ready to do business.
You might also have an interest to sell goods and services
2. Which ideas to start a business?
Secondly, There are many types of ideas to choose from which could be used to start a business.
Moreover Do what you love doing indeed. Though that also applies to entrepreneurship, one should start the firm he finds passion in.
Also, an area in which you expertise a bit.
Let’s say for instance you love to travel,
Furthermore, you know the best places in your country, For example, the United States of America, you also know the best routes, the best hotels in those cities, the best food and all those stuff.
Therefore if you want to start a business, a travel guide company will likely give you a success, you know why?
Because if you will have a passion to work harder also you will have great knowledge regarding travel because you have a passion to learn new stuff towards traveling.
Hence choose an idea in which you would love to work in, be it anything, in fact, it can be entertainment, dance, restaurant if you like food, travel, tuition class if you love teaching and so on.
3. Do proper market research.
Once you have selected your business idea, research about it.
Also besides researching about the product or service, try focusing on the market.
Is there a good need for your idea?:
That means is there a demand or you are already too late. In fact does competition exist and how can you be any different indeed.
Who will buy the product or service?
Your target audience, a boy or a girl, its age, its locality. Basically all the important information about your customer.
Why will it buy from you?
What unique do you offer, do you give them better quality goods or do you give them cheaper products or faster service?
Researching the objectives of your company indeed.
What value addition do you bring after starting a business to the buyer’s life?
How much profit do you want, what the customer likes about your product that he doesn’t like in the competitors product, in other words the differentiating factor
Your revenue model?
How will you earn? in what way, is it subscription-based,commission-based or on a freemium based model.
How much capital you would require to start your company and so on.
4. Get feedback.
Once you have decided your idea, once you have researched it. Its time to get some work done at the start.
Though You need to find if customers need your product or service.
Don’t worry about money, at the start you do not need huge money to start,
To find out if customers like your product or service, ask them through call or face to face or a feedback form whether they liked the product or service whether they would love to see any changes, ask them to give ratings to your service.
Make sure you offer something unique which customer likes in your product or service
Lastly getting feedback is more important so that you know what changes you need to make in your product or service.
5. Forming of a business plan.
A business plan is a written document which contains all the necessary information of a firm, about what you plan to do how you want to successfully initiate the plan
Also Formally a business plan format involves.
- The name of the company
- The plan of the business (the problem they try to solve and how they want to solve it)
- Market strategies which means what is your target market and how can you sell your product or service to your target market
- Analyzing your competition on who all is your competition and what different are you from them.
- How the organization functions daily?
- What are the finances…..how does the money come from, and also where is the money being used?
6. Legalizing your business or creating a business structure.
So you are done with feedback, you know what changes to make in your product or a service, and you’ve made it too.
its time to give it a legal structure if you want to start a business.
The most important thing is to legalize your company.
So how do you legalize? Legalizing involves many forms of documents
- Register a company name.
- Decide your business structure. (l.l.C OR A SOLE PROPRIETOR OR A PARTNERSHIP FIRM ETC.)
- Registering your company.
- Federal tax id.
- Obtain necessary permits.
- Licensing your company.
- Opening of necessary bank accounts.
- Filing for trademarks, copyrights, also patents.
7. Financing to business.
Every business works and grows if it has sufficient funds to survive. Money is very much needed in the operations of a company.
Though there are many ways one can finance to start a business.
Start a business by Bootstrapping:
Firstly, Bootstrapping is arranging money by yourself, through friends, family, also relatives or even by our savings
In fact very company uses bootstrapping indeed in its early stages when it starts,
Loans from banks:
Secondly, Another common way of financing your business is to borrow a loan from a bank on a given rate of interest.
There are many types of loans and also many different banks that provide those loans, interest rates of banks are different, However, a low-interest loan is preferred.
Thirdly, Now in the age of the internet, there are many crowdsourcing sites where the people who feel interested in your startup invest together for a percent of stake in your business. check for good crowd-sourcing sites.
Angel investors are also individual investors who put in their money in your startup or a business for some percent of stake in your business. However they invest at an earlier stage of business after bootstrapping
Lastly, Venture capitalists are investors of venture capital firms that invest the money of the firm in the business.
Though convincing the venture capitalist is not easy. In fact they also invest in those companies that have grown to a certain extent and need a large amount of funding mostly over a million dollars.
8. Developing a team.
Once you have received the money to start a business, you have to start getting work done, focusing on how you could find a team that can give you the best work.
For instance, if you want to build a game but you don’t know how to, so now you need to hire game developers. People smarter than you are a team efficient enough to get the job done.
Also Keep in mind, A team plays a very important role in growing a firm.
How much ever great product or service you offer, if you don’t have the right team to execute your plans, your company won’t survive.
And to build a perfect team involve a proper distribution of work.
9. Keep working towards the development of the product or service.
Lastly, Once your company has been established, you have to keep its growth consistent.
Keep improving your product by getting feedback from customers and eventually solving a problem.
Though Keeping consistency is key indeed.
Being aware of the competitor, Perfect pricing, Customer satisfaction, Employee motivation, And also overall keeping everything ethical and being consistent is what keeps any company grow.
Growing customer base, perfect marketing of your products, applying proper strategies, etc will help you improve
Here in this phase, I will give examples of many different industries or examples of famous venture capital firm and also a comparison between venture capital and angel investor
Firstly I would like to give examples of famous venture capital firms and crowdsourcing sites
- Accel partners.
- Bloom ventures.
- Sequoia capital.
- Nexus venture partners.
- Inventus capital partners.
And many more.
|Angel investor||Venture capitalist|
|Invest personal money||Manage funds and invest others money|
|Seed and early investment||Investing after a cetain stage of the firm|
|Invest usually less than 1$ million||They invest more than a million $|
|Do not involve much with the company||Are very much involved with the company|
To conclude, I would just like tell that anyone can start a business
Following the right steps will help you to start your own venture.
In this blog I have mentioned 9 key steps everyone should consider while starting a venture and also a comparison between an angel investor and a venture capitalist
Business involves a lot of risk, its very different from doing any kind of job
It intakes a lot of responsibilities on the person who deals with the ownership
Business is fun if you love what you do. But also can provide a tremendous amount of responsibilities.
To conclude, if you want to know the key things to remember while starting out, check the video down below.
It is an organization that sells its product or service for-profit motive.
There are many factors that should be taken into consideration while choosing a line. Anything in which a person is passionate about, in which he or she possesses knowledge and is willing to work in that industry should be mandatory in choosing an industry
There are around 3.6 million registered companies in India