Okay, so you have left your lucrative job and want to start a business. or, you have just completed your education and are drawn towards the idea of having your own business. or perhaps, you don’t want to be ‘bossed’ by anyone and want to become the boss.
Hmm, starting a business involves planning, making key financial decisions, and completing a series of legal activities. So, are you aware of all this? If not, then keep on reading because this article is especially for you.
Here are your 9 steps to succeed in business.
Related: How To Write An Exciting Pitch Deck
1. Conduct Market Research
It is prudent to do market research before directly opening your business. It helps you find customers for your business. Competitive analysis not only helps you make your business unique, it also establishes your brand.
Market research blends consumer behavior and economic trends to confirm and improve your business idea.
It’s crucial to understand your consumer base from the outset. Market research lets you reduce risks even while your business is still just a gleam in your eye.
To better understand opportunities and limitations for gaining customers, you need to gather demographic information. This includes population data on age, wealth, family, interests, or anything else that’s relevant for your business.
Keeping below points in mind will get a good sense of your market.
- Demand: Is there a real demand for your product or service?
- Market size: How many people would be interested in your offering?
- Economic indicators: What is the income range and employment rate?
- Location: Where do your customers live and where can your business reach?
- Market saturation: How many similar options are already available to consumers?
- Pricing: What do potential customers pay for these alternatives?
- Competitors price: What price are your fellow competitors offering?
But, you don’t know how to do market research as this is the first time you are doing a business! Right? Okay, so here are few methods you can use to do direct research:
- Focus groups
- In-depth interviews
2. Write Your Business Plan
You will need a business plan to to structure, run, and grow your new business. Your business plan is the building-block of your business. Categorically speaking, you would want to use it to convince people that working with you or investing in your business is a smart choice.
A good business plan helps you get funding or bring new business partners. Investors want to see a return on their investment by going through your business plan.
“But I don’t know how to write a Business Plan!“
Alright, here are few templates that you can use to write your business plan:
3. Fund Your Business
You might want to keep reminding yourself before starting a business that it costs money to start it. Getting funds for your business is one of the first and most important financial choices. How you choose to fund your business could affect how you structure and run your business.
You need to determine how much money you need. Why? Because every business has different needs, and no financial solution fits all sizes. Your personal financial situation, mission, and vision for your business will shape the financial future of your business.
Once you have calculated how much funding you’ll need, it’s time to figure out how you’ll get it. Below are few—but important—ways to get the funds.
- Get venture capital from investors
- Crowd-funding for your business
- Get a small business loan
- Keep an eye on government schemes
4. Pick Your Business Location
You’ll need to make a strategic decision about which city, state, and neighborhood you choose to start your business. Your business location determines the taxes, laws, and regulations that you need to comply with.
You should locate your business keeping in view of your target market, business partners, and your personal preferences. In addition, you should consider the costs, benefits, and restrictions of different government agencies.
5. Choose A Business Structure
The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits.
It is important that you choose a business structure before you register it with the state. Most businesses will also need to get a tax ID number and file for the appropriate licenses and permits.
Consulting with business counselors, accountants, and lawyers can prove helpful.
You would want to read about Types Of Business Entities In India.
6. Choose Your Business Name
You should choose the business name with creativity and market research. Make sure that the name that you are choosing is easy to pronounce and write. If you yourself are stuttering to pronounce it, then you know it’s time to change it to something pronounceable.
Also, you should choose a business name that reflects your brand identity and doesn’t clash with the types of goods and services you offer. Once you’ve picked your name, you should protect it by registering it with the right agencies.
7. Register Your Business
Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. In this case, you need to record it in Indian official records i.e. Ministry of Corporate Affairs (MCA). You do not need to visit the corporate office for registration as it can be done online.
There are four major steps to register your business
- Acquire Digital Signature Certificate (DSC): The Information Technology Act, 2000 has provisions for use of digital signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically.
- Acquire Director Identification Number (DIN): The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of sections 266A to 266G of Companies (Amendment) Act, 2006.
- Create an account on MCA portal: Example – email@example.com
- Incorporate or apply for the company to be registered
List of documents required
- Original copy of formal letter issued by ROC regarding availability of Company name
- DIN of all those directors of a proposed company
- DSC – Digital Signature Certificate
- Form-1 for incorporation of a company
- Form-18 for situation or address of the proposed company
- Form-32 for particulars of proposed directors, managers and secretary
For more information, you can visit here.
8. Apply For Licenses And Permits
Obtaining licenses and permits is the foremost legal requirements when starting a business. Further, depending on the business activity developed by the company, additional licenses might be required. The procedure for obtaining business permits in India can vary depending on the company’s business form, the number of employees or the Indian location in which the company will operate.
Main Types Of Indian Licenses And Permits
As said earlier, the procedure for obtaining permits and licenses can vary depending on the various factors, but, as a general rule, those who want to register a business and want to succeed in business, will need compulsory registration permits for taxation or permits available for specific types of businesses, as presented below:
Udyog Aadhar Registration: This is a type of permit available for micro, small and medium sized enterprises and the eligibility is given by the company’s investments in plant and machinery.
Goods and Services Tax (GST) Registration: The term refers to the registration for valued added tax, a requirement which is also imposed to natural persons operating in their own name on the supply of goods on the Indian market;
FSSAI License: The Food Safety and Standard Authority of India (FSSAI) provides licenses on for all local operators such as restaurants, outlets, retail stores and other similar businesses.
Import Export Code: Any business which is involved in trading activities in India is required to obtain this license.
For more information, you can visit here.
9. Open A Business Bank Account
Opening a business bank account is one of the essential requirements to succeed in business while starting a business. The main purpose of a business bank account is for you to have a separate account that is intended purely for business transactions and related expenses.
Open a business bank account when you’re ready to start accepting or spending money as your business. A business bank account helps you stay legally compliant and protected. Moreover, it provides benefits to your customers and employees.
Benefits Of Business Bank Accounts
Most business bank accounts offer benefits that don’t come with a standard personal bank account. Below is the list of the benefits of having a business account to succeed in business:
Protection: Business banking offers limited personal liability protection by keeping your business funds separate from your personal funds.
Professionalism: Having a business account gives more professional and mature approach. You can have transaction debit / credit card, cheque, internet banking, UPI and any other authorized payment method. Plus, you’ll be able to authorize employees to handle day-to-day banking tasks on behalf of the business.
Preparedness: Business banking usually comes with the option for a line of credit for the company. This can be used in the event of an emergency, or if your business needs new equipment.