What Are The 10 Things You Need To Start A Business?

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Want to Start your own business? Ten things you must know to really get started

There’s no doubt that setting up your own business and making money out of it, is one of the most rewarding and challenging ways to earn a living. You have complete control of your destiny. You have the power to improve your success and outwit competitors. It also means you are responsible for tackling challenges and making right decisions along the course. Hence it’s vital you start your business with a firm foundation.

With the support and encouragement from our government many entrepreneurs and startups are keen to start their own company. However, starting a business needs lots of hard work and dedication. You need to have a good business idea, legal requirements and marketing.

Here are the 10 key factors to consider starting a business

1. Business ideas

Decide on business product and  services.The first baby step begins with your decision about the kind of business you want to do.  Develop your unique business idea that has your dedication and passion. Search Google for keywords related to your potential industry. Do not feel low if the market is flooded. You can consider it an advantage. If competitors are making money in the industry, then you too can make money. Do a thorough research and study like an expert. It is a smart way to learn from your competitors.

Decide about the business product or services that you are going to cater to your target audience. In India ‘Make in India’ initiative has many opportunities for hospitality, manufacturing industries, tourism and agriculture.

2. Business Plan

Irrespective of whether you want to apply for loan or not a business plan is an absolute necessity for any business aiming for long-term success and growth. The key headings in a business plan really make you think hard about all the areas you need to cover for your business to be sustainable, mid- to long-term. It helps you to be on track and is essential when you approach potential partners and investors – and will give them the confidence they need to invest in you.  

Create a Business plan that includes business milestones, financial targets and timelines. Describe your visions and missions. These plans guide you through difficult times /projects. Few must have components of business plans are

  • Company description
  • Executive summary
  • Products and services
  • Market analysis
  • Process of implementation and business strategy
  • Team management
  • Financial projections and plans.

3. Arrange for funds

Every business needs funding. Few entrepreneurs  use up their life’s savings .Some collect funds from family and friends. Small businesses can fund themselves. However, when you want to source funds outside, you have the following options

Business can obtain loans under various schemes like working capital loan, term loan and so on.

Co-operatives societies offer loan to business who buy their shares

Sourcing money through crowd funding. Crowd funding  means attracting friends,neighbours or relatives to invest in company stock

Venture capitalists and angel investors are good options fo startups and small businesses

4. Business Name

When you are planning to incorporate your start-up, the very first thing you need to do is choosing a perfect company name. It is the crucial step  in setting-up of  business

You may think “What’s in a company name?” But in reality a company name means a lot when it comes to business’ success and growth. The perfect company name can make your company ‘the talk of the town’. The wrong one can doom it to failure. In an ideal business world your name should convey the proficiency, value and individuality of your product or service.

The perfect company names are intangible and abstract. It is like an image created on a blank slate.

In reality, any name can be perfect if it’s launched with appropriate marketing strategy.  The following considerations should be given a thought before deciding upon a company name.

Ensure your company name is already not taken to ROC, trademarks or copyrights etc. to avoid unnecessary rework and legal hassles.

5.Business office

It is necessary for a business to have an office address for business registration and other official communications. You can start business from your home address or any other rented premises. In case of online business, then you can use your home address as business office address.

Also consider factors like easy transport accessibility from main road for customers. However, online businesses can create e-commerce store with varied payment options.

6.Business Registration

You need business registration to get legal recognition for your business. You can choose any business structure

  • Sole proprietorship firm
  • Partnership firm
  • Limited Liability Partnership (LLP)
  • One Person Company (OPC)
  • Private limited company
  • Public limited company

Sole proprietorship and partnership firm are not recognized as separate legal entities from their owners. They have the risk of unlimited liability. But, they have fewer compliance and low registration cost.

OPC, LLP, Private limited and public company are separate legal entities. It’s easy to source funds from investors. However, they need to comply with large compliance formalities.

Moreover, you need to get municipality or civic body permissions, electricity and water connections, the shop and establishment act registration and specific  licenses depending on business nature like GST Registraion, FSSAI license and trade license.

7. Create website & make your website content shareable

Draw up an attractive content on your website and ensure it is shareable. Our Ensure that your site is in such a way that your readers and viewers can reference back to, for more of your incredible content. When you are developing your own brand, it’s important to create unique content on a single hub. You could also seek professional help for developing your website.

Create your website and list your products and services online. Many people prefer online shopping and having website helps to attract more customers. Customers can contact you quickly with an active website and email address. An active business website is the primary place of online contact for your online clients. Your website must have your contact info, about us, product or services list, price and description and other important details.

8. Marketing Strategies

Business promotion is vital to attract customers. Create an efficient and attractive marketing strategy Promote your products and services amongst  your target audience. Online business promotion is the fastest way to tell the world about your business’ products and services.

Apart from active business website, be active on social media pages Facebook, Youtube and Instagram. Reach large audience and grow your business

9. Build an E-Mail List.

E-mail list is one of the most important tools in building a business. As you develop your website, build an e-mail list of visitors of your site. Provide them interesting offers and subsequently translate them into you regular buyers of future. It is advisable to have opt-in form and a place to store your emails, to build email list.

10. Open Business Bank Account

Get ready to open a business bank account once you have necessary business registration. Though for a sole trader it is not compulsory to open a separate business bank account, it is always wise to have a separate bank account for business purposes to have separate record for business banking transactions.

The benefits of business bank account include Better organization of business transactions, Accept credit cards and fund transfers, Multiple business accounts, Professional Image, Gain bank relationship, Loan and overdraft, Mandatory for Private limited, LLP and Public companies, have scores of transactions per day, Easy and simple to file tax return, Proof of business, builds a professional image and builds up the trust and confidence of the stakeholders.

Consider factors like overdraft facility, loan facility, letter of credit facility, free cheque limit and other factors before opening your business account with any bank.

Words Of Wisdom

Starting a new business is a thrilling and overwhelming experience. In the present day’s environment, founders and entrepreneurs want to start their business operations as quickly as possible. Yet, they get stalled and slowed by legal or administrative matters. It restricts them on focusing what’s more important.

Listed below are few popular questions we hear from people who want to start business in India.

  • Which one fits right to my business- LLP, company, OPC?
  • How to register my business? What does govt. need?
  • Does my business get any government or tax subsidy?
  • What tax registration do I need to get?
  • How much shares can founders hold?
  • What are the legalities you need to follow for employee agreements?
  • Are any labor and factory registrations required?
  • Can we allot ESOP to employees?
  • What funding options are available?
  • Are foreign investors allowed to invest in my business? Do FDI rules apply?

Many business founders find themselves stuck with a cycle of consulting different professionals like Chartered Accountants, advocates, company secretaries to get answers for important issues. FilingPoint is the single point of solutions for all your professional needs. We provides full suite of startup advisory services for incorporation and remove all hassles. We aid you to focus on business operations. We bring you our two decade knowledge and experience in audit, tax, M& A and operations to the table. We have good insights about your present and future issues. Join hands with us and make your business a success story.