It would be wrong if I start discussing the well known tips on “how to start a business” so without wasting our time we should just take a note of the 5 most Important things which should be taken in care whilst doing business.
1. Get A Legitimate Business Structure: If you are delivering services on your own name , its not business its self- employment or practice because every business got an organization name, a team, a workplace & address. In the last post I mentioned few of the questions related to business getting started on zero investment. Now its little clear that if we are doing business, it may never be without investment. So your first step should be registering your business under your local laws. A registered business always gets trust of customers & make them comfortable in doing business with you.
After registration try to get trademark registered so that no one can use your company name or logos for commercial interest without your permission. Its always recommended to hire your business consultant to take care of annual accounts, taxation & company law related issues, this will help you to stay focused on your business rather than thinking & calculating your tax payable amount.
2.Team : “If you can get things done for free its amazing & if you can get your work done on cheapest rate you are really good”– I heard this from one of the Angel Investors, while pitching my Business plan & Investment Deck for “Marammat Wala“. After business Incorporation the next step is recruitment. So are you going to hire an HR professional first to hire employees on your behalf or you will do it own your own. Hiring is the most important task in a business which should be taken care very cautiously. After all we are going to invest our time (training) & money (salary) on our recruited staffs.
- Never Be Confident that you will train your staff even they are not fitted to your job. (Absolutely to save little money to hire experienced executives.) You will end with nothing except spoon feeding.
- Try to negotiate on compensation. Offer them some incentives based on slabs apart from basic salary.
- Always hire those candidates who can play different roles- tele-marketer, field executive etc.
3.Finance: I always heard people saying”Why to worry for finance, we will earn it from our business & will use it on the business.” Do you think its really going to happen. May be! But a business needs some time to get established & recurring income. The first month of business goes into registration processes, hiring & training. The next month is all set for trail because its not necessary that our executives who got trained recently will bring instant Business.
So how we are going to manage office rent, salary, electricity bills, telephone bills, conveyance & other miscellaneous expenses. Kindly make sure that you are well funded to spend almost 4-6 months without any profit expectations, ironically sometimes you will have to pay for mistakes. If you are not financially sound try to take help of your friends & family. Else other finance options are:
- Banks & Financial Institutions
- Individuals in business partnership
- Private Financiers
- Angel Investors & Venture Capitalists
Its always recommended to go for Angels if you don’t see favorable options from Banks & Individuals. Seeking a private financiers is really going to cost you much more as they may ask for higher interest rates & some sort of collateral.
4.Quality & Customer Satisfaction: We are well informed about the 4 P’s (Product, Price, Place & Promotion) of Marketing Mix. These all are pre-sales tasks, but what after sales made. Are we delivering the same quality of products & services, what customers are looking for? I know this is argumentative, as few of us will say quality needs maximization in over all cost. But what will you say about Apple’s statement” We sell our products on more than 50% margin & people love to buy it.”
Yes Apple Inc is having a great market share in smartphones. But here we are not in the same state, still we can make a try to offer quality work in affordable pricing. Try to make regular contacts with your customers to know their feedback, complaints & suggestions, as these will create a positive sign into their minds- You care for them. If you really pay attention somehow you are going to be benefited – Referral Sales.
5. Never Under-Estimate your Business But Expenses: Its common that we always over-estimate our profits ignoring our expenses. Try to think about the worst state of your business- Are you still able to move forward? If we under-estimate our profits, it means we are prepared for unseen, unexpected occurrences in business environment. This will help us to stay longer in the market else expectation of huge profits & mismatch in consequences may sometimes loose our enthusiasm & willingness to do business.