Getting the right advice at the right time is absolutely vital to business success. Starting a business involves consideration of various factors such as type of business entity to be set up, how and where to set-up, registrations & approvals required, post set -up activities to be undertaken and such other factors. Since it is an important step and therefore it is necessary to plan and execute it rightly.
As a Business Start Up Consultant, we have to actively discuss the following points with the Entrepreneur to preliminery access the requirements :
- Business description (objectives of entrepreneurs)
- Nature of business (manufacturing, retailing and service)
- Nature of business entity (private or public company, LLP, General Partnerships, Sole Proprietorships)
- Financial projections (capital needs, sources and cost of funding).
The Business Consultant should ask the Entrepreneur to introspect on the following general questions that arises before starting a business :
- Do I have the potential to handle the problems and risk involved in starting a new business?
- What are the various government compliances that I will face?
- How can I develop my product or service which can establish in the market successfully?
- How much money will it take to start the business?
- How will I raise the required fund?
- Will future profitability justify the investment and risk?
Which form of organization will be suitable for me if I am startup?
Since business is at its initial stage, the form of business should be easy to manage and at the same time is attractive from the investors point of view for providing necessary funds. Keeping in view the same, private limited company will be advisable.
What are the steps to be taken before starting a business?
- Develop an idea and a business plan – There should be a written plan to develop business strategies and financial projections. Set your business plan in such a manner that investors consider your new business worth for investment.
- Do your market research – The first essential step is to research your potential market. Verify the value of your product or service in the market. Who needs your product? Is there space for your product or service in the market? Your idea should be something which can be easily accepted in the market.
- Financial Projections – Research the costs associated with your business. Ascertain the funds required and the source of funding. Financial projections helps to determine whether the proposed venture will be financially feasible or not. Based on the same get the Financial Assistance obtained from Banks in Terms of Term Loan and or Cash Credit Limit to finance the Working Capital Requirements.
- Get business assistance – Counseling services play a very important role here. From preparing a business plan to expanding or relocating a business, experts also help in drafting contracts and determining the right business structure and most importantly they help with tax planning.
- Choose a business location – The ideal location for your business depends on a number of factors like nature of business, types of customers targeted, competitors strength, rules and regulations to be complied with in that location etc.
- Decide on a business name and get all the necessary licences and permits – Business name should be such that it is not misinterpreted by the readers. Along with a business license, you may need to get additional licenses depending on the type of business and local laws. Research all licenses applicable in your country and your state along with the zoning laws before you open a business.
- Develop Your Systems – After your idea to float a business have been organized and presented properly, you must develop effective and efficient systems to facilitate future growth and development.
- Compliance with Applicable Laws: The Unit should ensure that all the applicable licenses and compliances are timely met so as to avoid any hassles, Interest or Penalties .
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