How to Start a Business
How to Start a Business
The materialistic and monetary transaction between two people or organizations is termed as a business. We all have been brought up by our parents in an ideology, “study well, get into school/college first, get a good job, take a home loan, run after your debts, and retire”. The same ideology is taught by society to us. Basically, people wish to be in their comfort zone. Only a few people think about creating a business, statistically, 10% of the people alone start their business with a unique platform.
Here, we shall discuss how to start a business and what are the requirements needed to start a business. They are;
- Business with Zero Investment.
- Clear Vision and Goal.
- Treating Employees as an asset.
- Unique Selling Point.
- Digital Presence.
- Perfect Financial Management.
Business with Zero Investment
Gone are those days, where you invest huge money into a retail shop or a supermarket and yield 0.5-1% every month as income out of the total amount invested. The world’s best organizations are built on zero investment. “Ideas which are futuristic and accessible” are going to rule the market. Initially, Amazon was a second-hand bookseller later, had an idea of bringing every single product to the customer’s hand through a single mobile, and rule the e-commerce world.
You have to start your business with zero investment, by using yourself and your skills as the investment source. Accompanied by doing some few services for your customer base and leverage it into a big company by attracting your investors as your vision.
Attracting investors is an art and it cannot be everyone’s cake. To attract an investor your vision and your method of work have to speak.
Clear Vision and Goal
Every business or organization is built upon its VISION. The companies without clear vision get vanished by some upcoming years. Visions are considered to be the foundations of a company. A business owner has to be clear on having both short term and long term vision. The company with only short term or long term vision can’t sustain in this competitive world, because every second company are been started.
Vision has to be emotional for your employees too. Like you, the employee to joins you to grow in his life. Give them the hope, they have joined the right organization and make their vision closely attached to the company vision. Prioritize their vision by forecasting the organizational structure and objectives to achieve.
Treating Employee as an Asset
Nowadays, Employees are the real asset of the company. Each and every employee spent his time on upgrading new skill, which means the company is ultimately going to be benefited. Offer them more opportunities to develop them. It can be,
- Providing reimbursement on the new course they attend.
- Providing self-development and training schedules.
- Offering them an incentive over their performance.
- Maintain transparency in Key Performance Indicator (KPI) and provide yearly bonus and hike according to KPI. So, no employee will get demotivated on their appraisal discussion.
- Make your employee feel work-life balance at every moment of life.
- Don’t make your employees carry the work to their homes.
Every people over the world, look for a part-time job to be paid extra so that they can increase their financial status. So, make them understand you provide incentives as extra pay, for which they will focus on the performance of the company.
Unique Selling Point
In today’s era, you can’t be successful by selling the same key points. You have to keep your company a “unique selling point”. The Unique selling point should be the heart of your company. Where ever you promote or stake hold your company, it has to represent your USP.
- USP can attract investors.
- USP makes you motivated and makes a pathway for you towards your vision and goal.
- USP should communicate on your total business model and protocol with the customers.
- Your USP should have huge market potential. You can’t invest your time in a market where there is no business.
- You should do the complete brainstorming of your competitors by case studies. So, you can analyze how your USP will capture the market.
When we step out of our home, we could see more supermarkets on the same road with huge competition, with many offers to impress their customers back into their wallets. Have you ever thought that, will it help us in this period where 5G booms in? The only solution we have today is to show our presence digitally.
- Do you know? 86% of new accounts open by seeing your website.
- When you move your business digitally, there is a chance of boosting 30% more profit.
- Basically, when we speak about digitalizing business. People revert back with “Google my Business”. This only can help your customer to navigate, call, or to see the operating hours.
- Digital presence is creating a separate web page with the domain of your company, updating your customers with blogs on products or services you offer, and other tools to make visible to google.
- To create traffic of your website to google can be discussed in later days with relevant articles.
- When you have a digital presence, a customer who looks for a service that you offer should lead to your website. When they look at your website, they will look at your Customers Testimonial Will and get confidence and place a business transaction.
Perfect Business Management
The main problem why many companies are close down soon is because of improper financial management. When you offer a service to your customer, the cash flow begins. This is the point we have to plan our budgeting of buckets in the finest way. As I mentioned earlier you should have a long vision, if so you have to put some portion of your income as an investment in your company.
- Plan your expenses well. For example, you have bought a PC for 60000, and it will last for only 5 years, you have to make Rs. 1000 as a monthly expense for PC. So, you don’t need to go for a loan on purchasing a new PC.
- Make your Income to be cut into more pieces of cakes for different proportions i.e. 10% for salary, 20% for company R&D, 20% for maintenance, 20% for expenses, 10% for Incentive or bonus, 20% for future endeavors.
- When you were a startup, you might not have abundant reservoirs. Once you grow your profits, you should have a reservoir of up to 12-month expenses of the company.
- When more profit knocks your door, you can invest in your company development, expanding by recruiting valuable employees, and also you can invest in bonds or fixed income markets to grow your surplus money.
- Always have in mind, start a business with zero investment or attract investors with your USP and VISION.
- Have a strong short term and long term visions which are the fuel of the organization.
- Unique selling points are the Heart of the company, so identify your niche and analyze your competitor’s case studies.
- Employees are the real assets, treat them with empathy, show them the career pathway, and the objectives. So they will grow along with us.
- Make your business digitally accessible, make people know you through a touch on their mobile.
- Proper financial management takes your organization to grow and reach the height as desired.
Author: Ashkar Gomez