Here’s How to Find the Right Small Business Idea
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Jul 12,2021
- 11 Mins Read
In the last couple of years, an interesting phenomenon has been visible in India. This is the rise of small businesses. These days if you do any research on different sectors in India, most of them would be dominated by small players. Now, this is not any indicator that the big boys are going out of business. Rather it's a sign that these monster-sized enterprises have given way to others who are more agile and responsive to customer needs.
The number of small enterprises in India has grown rapidly over the past decade. In 1975, there were an estimated 6.1 million non-agricultural enterprises totaling $46 billion in assets, employing 22 million people and contributing 11 percent of the GDP. By 1985 this number had grown to 8.5 million enterprises with $63 billion in assets, employing 28 million people and contributing 20 percent of GDP. According to another report, the number of small businesses in India is growing rapidly, particularly in the fields of manufacturing and retail trade. Businesses between 5 and 10 years old account for 37 per cent of total business turnover in India, up from 32 per cent in 1997-98. A study of 96 cities shows that it is the smaller cities that are experiencing higher rates of growth, particularly in Gujarat and Tamil Nadu.
How to find the right small business idea in Delhi
While focusing on the capital city--Delhi--the first thing you should do is open up your mind and think about different types of businesses. It might appear that there are well-defined industries which have narrow niches. If you understand how to spot the niche in these industries, starting a business might seem easier. However, if you open up your mind and try to consider as many ideas as possible, you will realize that there are several industries where there is plenty of room for new entrants with innovation.
Examine Scope of a Business Idea
Think about a business idea you have, it's not an idea that sounds good, it's not an idea that has potential to be successful, it's an idea. It evokes feeling in you and makes you think of things that can be done with the idea.
When an entrepreneur starts out on their business idea they need to see if the idea is worth pursuing. By simulating what it would be like if a business existed you can test an idea for viability. This is often done by 'making a business case', or 'doing a financial forecast' (especially in a startup).
It's fashionable these days to look down on finance. This is a mistake. A healthy relationship with finance is one of the most important things for a startup, and should be done right from the earliest days.
Running a startup is not easy and it requires equally hard work. All the money you save from your salary, you have to put into costs for business, office rent, equipment, salaries for employees and various taxes. To be successful in such conditions, you need to spend all your time on business development or marketing and forget about the rest of life.
Business location should be one of the primary business concerns when opening a new business. The first question to ask is whether you want to start up a business in a big city or a small community. Most people decide where to locate their business based on factors they believe will influence their future success.
Consider these elements while finding an apt small business idea in Delhi. Besides these factors, there are various other minor elements that you should ponder.
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