Starting a new business is thought to be equivalent to climbing Mount Everest. And starting it with relatively low investments is an add-on to the strains involved. Doing a business is a mindset every businessman walks with but starting it with a heart to risk his money on the right investments is a decision which is the toughest.
Being an entrepreneur is not always that difficult, it could also be fascinating and worthwhile! Here are some steps to start a business.
- Startup small and then increase the scale
Focus should always be on learning and adapting, rather than growth while starting a business. Growth comes eventually and so will profits increase.
- Franchise is not a good idea
A small time businessman is in a real trouble if he has to have knowledge about national and international principles both together in setting up his own business. Franchise models are business models based on expansion. They are big national and international brands and have no history in small town business. These players usually have no idea of the psyche of small towns.
- Make Financial Projections
Financial projections should never be based on secondary research as 98% of them go wrong while doing business in small towns in India. Small businessman do not have knowledge about business models and expansion, hence they are not well aware about the problems in the projections of a franchisor as these are rarely correct with small town figures. Always make projections on the basis of primary research and experience
- Innovative Business Model
Innovation in business modelling and branding is the real source to growth in any business. And the best time for small entrepreneurs to grow is when big companies try to break into small town markets with their franchises.
- Management on the smallest level
An entrepreneur needs to know his smallest unit just as precisely as his macro plans. To get a better idea of this and to know the weaknesses and strength of his enterprise it is mandatory that he should sit at the cash register and look into the dealings himself before appointing someone to take care of it. This will help him know where and how to expand and also know his customers better.
- Enjoy the flexibility of the system
Indian markets are best known for their ‘jugad’ policy. Jugad gives it the flexibility and also gives it an anything is possible attitude. The functioning of Indian markets could amaze an analyst as one need not know the changing government policy rather just knowing the loop holes and how to get away with things is enough to run a successful business. Contacts are highly essential and the ability to get work done is foremost. A combination of the two could yield in a business which is both profitable and much enjoyed!
- Invest in people and relations
India is a land which values relations more than money, here business run on relations and trust. Hence relation building is the building block not only with customers but also the staff working under an entrepreneur. Understanding them is beneficial for the entrepreneur as they are the pillars on which his business stands.
Hope these basic tips help in starting a business and growing successfully!