Here's How to Start Your Small Business in Simple Steps
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Sep 22,2020
- 16 Mins Read
Stepping into the entrepreneurs' shoes can be an intimidating experience. Understanding the intricacy of a business sometimes leads confusion in the minds of first-time entrepreneurs. Establishing a business is a complex, tedious process that incorporates planning, taking prime financial decisions, and finishing a slew of legal formalities.
For better understanding, here is the list that can help start your small business in simple steps. The list consists of steps that are common in almost every business.
Before starting your business, it is crucial to conduct a proper market research. The market research helps comprehend the business environment where your business will be established. It also aids in identifying close competitors and unveiling their business strategy.
The research can facilitate you in formulating a better business model that will have a competitive edge over your competitors in the market. This is the primary step that every small business in India should perform in business estbalishment process.
Once you garner useful information about prevalent business conditions, the next step involves creating a business plan. A blueprint is required to create a business structure, method of operation and organisational goal.
To persuade investors to infuse in the business, a business plan plays a role as important as a running business. Thus, it is recommended to modify a business plan from time to time, thus, striking out errors.
Finance the Business
Once you create a business plan, you get an estimation as to how much money you would require to finance the business. While establishing the business, you need to have some saving along with you. If savings are not enough, then you can borrow money from family and closed ones.
Besides this, you can approach banks, non-banking financial institutions (NBFCs) and other financial institutions. These sources are also available to start your small business in a village. To choose the right option, you need to check interest rates and time involved in loan disbursement.
After gathering the money required for the business, you have to then ascertain a business location. It is important to determine whether you seek a brick and mortar store or an online store. In today's digital era, one can also start a small business at home and thus, save rental cost as well as other additional expenses.
So, determine the nature of the business, and then finalise a business location. Your decided location will later affect business operations, management, income tax levied on the company and so on.
As you move further in the process, you have to define your business structure. A business structure will indeed affect other things in the business. From income tax to business liability, almost everything gets impacted by your choice of business structure.
It is recommended analysing pros and cons of every business structure. Following this, you can take an expert's advice who is working in the same industry wherein you are entering. Garnering information and suggestions will, in turn, help select whether to create a hierarchy structure or transparency in business, online or offline business, B2B structure or B2C structure.
While starting your small business, picking an appropriate business name is crucial. The name should be relevant to your business and speaks about your company in one word. Furthermore, it should be noticed that the chosen business name need not be similar with any other business in the region.
After deciding out the business name, you have to get a company logo created as well. A logo creates a good impression on the customers and showcases a company's speciality if created precisely.
Registering your business is the last part of the process. Once your business gets registered, you avail various rights like safeguarding your brand, and access other rebates, as well as incentives, offered by the government. If the business is registered from a different name other than yours, then you need to inform the state government, as well as central government, about this so that necessary changes can be done in all documents.
These simple steps are to be followed when you are starting your small business. These steps are commonly found in every business type. However, a few additional steps can be added there depending on the business. If you know more steps that are vital in building up a business, then comment below.
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