How to Start a Business? Basic Functions for Entrepreneurs

Do you have ideas to start a business, but don’t know how to start?

Every people want to start a business, but it is the toughest thing ever. It involves a risk of failure, but there is definitely success in the end.

It is not easy to start a business as it involves putting a lot of effort to put over starting a business and making it operational.

Here I am presenting you with the answer to the question “how to start a business”?

The following part of your journey will require a lot of time, effort, and hard work, and perhaps you may end up failing many times.

But if you struggled to survive, the rewards after the obstacles will be as sweet as candy.

Why Do People Consider Starting Their Own Business?

There are lots of advantages when you choose to start a business rather than going for a job.

Apart from them, the most important thing is you can spend more time with your family.

It includes working on your own idea, designing your career, working towards financial independence and there are lots more reasons for starting your own business.

But not all home businesses reach the height of success, and the fact is only one-third of businesses will survive after a long struggle.

Because many people often failed to face real-time challenges.

So if you want to start a successful startup, you are required to prepare yourself morally for everything, plan your actions and narrow your path towards success.

Take one step at a time.

Let’s get started…

1. Plan Your Passion

Every successful entrepreneur achieves success only in the things they love to do.

Each new business starts with a new idea and it should be your passion.

Ideas are not limited to the industry because there is always a way to turn your ideas into a business.

Think about it, does your idea have the potential to succeed?

Narrow down your ideas and write a note. Use the power of the internet to search for existing companies in your chosen industry.

Learn their business model, plan of action, marketing style, etc., and figure out how you can do it better or the same thing in an entirely different manner.

Another option is to open a franchise of an established company, where everything is already in place and you just need a good location for your operation.

2. Prepare a Blueprint

You need the plan to put your business ideas into reality. So prepare a sustainable blueprint that will guide you through your startup process to an establishment.

So you have the business idea in place, now ask yourself the following important questions:

1. What is the purpose of your business?
2. Who are the target audiences?
3. What are the products?
4. Where is the marketplace?
5. How do you arrange for your finances?
6. Who are the competitors?

Write it down in the note to avoid any confusion.

A proper business blueprint or business plan is needed to be in place for the proper business setup. It will help your business setup stay focused on a narrow path and support at the time of diversion.

3. Assess your Finances

Starting a business needs money, so you need to determine how you are going to manage it?

Every business needs at least a small initial investment as well as additional funds to cover ongoing expenses.

What’s your plan?

Do you have the source of funds for your startup, or will you need to borrow money?

Prepare a spreadsheet to list one-time start-up estimate costs for your business (Licenses, permits, office space, furniture, equipment such as computers, laptops, telephones, market research, advertising, inventory, etc.)

On-going cost factors include rent, utilities, marketing and advertising, travel expenses, employee salary, your own salary, etc.

You need to maintain this fund for at least the next 12 months.

If you are going to start a new business as your full-time profession, you need money to put into start-up costs.

And also for sustaining yourself at the beginning before your start-up makes your profit. A commercial loan through a bank is a wise decision, but it is a bit difficult to get a loan.

You can opt for Small scale business loans offered by Government to motivate entrepreneurs.

You can search for different financing loan schemes such as Working capital finances, corporate term loans, project finance, etc.

The government of India provides various financial support to small businesses through various schemes such as:

• Small Industries Development Organisation (SIDO)
• National Small Industries Corporation Limited (NSIC)
• Small Industries Development Bank of India (SIDBI)
• World Association for Small and Medium Enterprises (WASME).

4. Determine the Legal Business Structure

Now it’s time to register your business for enabling legal operation in your location. Without a legal business license, you cannot run any business.

Before going for the registration process you should decide what kind of entity will be your organization, a proprietorship concern, or a partner firm.

If you plan to own the business entirely by yourself and be responsible for all obligations, you can register a sole proprietorship.

Or partnership, which means two or more people joined together as business owners and manage all business activities.

Ultimately it’s your own decision to choose the type of entity that is suitable and fits your future business growth.

Make a firm decision before you set to start a business because changing the business structure in the middle of running will create issues in many ways.

5. Register with the Government

Pick the right business name for registration. This process is needed to operate your business legally in your country and the name is necessary to identify your business.

You need to submit a document that includes your business name, business purpose, organization structure, stock details, and other information.

Registering a company in India, for example, you need to submit separate documents to obtain a GST number for your company to file taxes and other credits.

Without registration, you cannot able to recruit employees. Each business needs different forms to be submitted for registration.

Once after your registration, don’t forget to register your domain name because it is necessary to reach out to the world market.

Use the power of the Internet to target potential customers worldwide.

6. Select Technology

The Internet and technology have developed a lot today. Every business needs to be a part of this technology for smoother operation.

Computers and the internets are the prime need to start a business and no business exists without using these technologies.

The technology is meant to be likely having powerful and reliable computers, laptops, printers, the Internet, and other smart devices.

Because key business functions – accounting, invoicing, marketing, billing, and packing, all require being managed by using any software.

So technology is a must for all businesses to operate. If you want to create an online presence, then register a .com domain name with your business name.

Securing a domain name will help you to create your presence instantly across the worldwide market.

7. Choose your Business Location

Finding the right place of business is very important for the operation.

You may have either a home office, a shared office space, or even a private office space. But your business should have its own infrastructure.

Choosing a location is determined by various factors such as your target audiences, market trends, transport, availability of employees, etc.

You can consider buying your own space or renting commercial space for your business start-up.

Every business needs at least 10 x 10 office spaces for management purposes.

8. Build your Team

Starting a business may be done by yourself but running all alone is not merely possible.

Every business has various departments such as admin, billing, HR, support, sales, and processing and it needs human intervention to work, manage, organize and monitor.

You should build a responsible team at the beginning of your startup that cares about your business growth apart from their monthly wages.

Because this is the stage that requires careful movement targeting only startup growth.

Finding the right candidate, defining roles and responsibilities, the division of labour, and addressing their activities at the right time will save you a lot of headaches in the beginning.

If you are not willing to hire employees, instead plan for outsourcing, get help from a legal advisor to get your independent contractor agreement in place.

Teamwork will always lead to success. This team can be comprised of a mentor, small business coach, or your family members to support you, and motivate you at times when needed.

9. Brand Yourself and Advertise

Every business achievement is purely based on the brand name. To build your business, you need to build your brand and create awareness of the market.

The LOGO is the main factor in Branding and you should create a stunning logo that helps people to find your brand, and register a website on your business name.

Hire professional web designing services to create your business website that attracts people from all over the world.

Showcase your services and/or products, and display your brand logo and name on the home page.

Use social media to spread the word about your new business after your business setup.

10. Develop Your Business

Your launch and first sales are the first milestones in your business development.

You should consider steady growth in your business, and it takes a lot of work, effort, and time but it is doable.

The plan for reaching out to new customers every day in your industry is a great way to achieve growth.

Reach out to potential bloggers and other influential people in your industry, and ask for some promotion in exchange for free samples or cash.

This way you can reach out to a new level.

Last Few Thoughts,

Dear friend, thanks for spending your valuable time reading this article. Now, you may come to know the procedures to start a business.

There are so many business ideas to start in 2023 and I have written about those businesses in another article.

There are many different ways to earn money if you have a true passion to shape your future. Learn to know all the business ideas and start anyone’s business on the recommended list.