STEPS WHICH AN ENTREPRENEUR MUST FOLLOW TO START HIS OWN BUSINESS
A lot of people think that starting a business is hard and that it requires huge amount of capital. A lot of would-be-entrepreneurs get stuck early in the process because they think that only a certain type of person has that quality what it takes him to make him as a successful business owner. The reality is, that most of the people have what it takes: a good idea, the right amount of capital and the creativity.
But what most of the people lack, is patience, determination and the ability to plan. A businessman can easily become overwhelmed in the early stages of starting a business and the key to it is that the businessman is required to have working plan and he must stick to it. Thus a businessman must use something simple which helps him to guide along the way.
empresario tells us about the key first steps which a would be entrepreneur must follow to start his own business:
1. Take time to brainstorm.
An idea is always great, but the businessman is required to give it legs. But The first essential step which every businessman must follow is that he must research his potential market. His job as a new entrepreneur and a future business owner is to think about every aspect of his business. Come up with answers to every question which either a stranger or a potential investor might ask the businessman. For example try to answer these questions:
Who is the target market for the product?
What could go wrong and how will the businessman solve it?
Are there additional products or services that the businessman could tie into his main offering?
What are the main things which a businessman wants his customers to know about him?
By preparing answers to these questions ahead of time, the businessman would come across as a more confident and a trustworthy business owner when it comes time to try to attract the attention of the right stakeholders.
2. The businessman must then create a business plan.
After the businessman has taken the time to answer the questions about his business or the product idea, he must use them to put together a concrete business plan.
The main parts of a business plan include the executive summary, a company description (as to what makes the company unique), a market analysis (the competition and the target demographics), the company’s structure, a description of the service or the product line, the marketing and the sales strategy, its financial projections – plus any other additional useful information.
3. The businessman is then required to arrange the funds that are required
A businessman can’t start a business without capital. He is required to determine what he has, what he will need and how he will go about getting it. If he plans to seek the investor funding or financing, he is required to start writing a business plan. he must Research the costs that are associated with his business. He must Know how much money he’ll need and decide where it could come from.
4. Hire a good business attorney:
The businessman is not necessarily required to have need an attorney on a retainer. An attorney can advise the businessman about things such as drafting of contracts, reviewing businessman’s lease and determining the right business structure. However, the best way to find a good attorney is either by referral or through networking.
5. The businessman is then required to hire a good accountant:
An accountant will work in conjunction with the attorney and he will play an instrumental role in determining the best form of ownership. The accountant can also help the owner to establish bookkeeping and other record keeping procedures which the businessman is required to keep on track for years. Most important, a good accountant will help with tax planning which include ITR Filing, TDS Return Filing etc.
6. Decide on a business structure
The businessman has a lot of choices which include sole proprietorship, partnership, Private Limited Company or Limited Liability Partnership. The Personal liabilities, taxes, paperwork and regulations vary greatly among the different legal business structures. The businessman’s attorney and accountant help to play a key role in assisting him in this important decision.