Things to Consider for Starting your Own Business?

Nowadays, entrepreneurship is a very hot buzzword and everybody seems to be jumping to it. But be careful. Starting your own business isn’t as simple as it sounds. It needs a lot of planning and dedication on your part, for defeating all the odds. To put it in simple terms, if you are not careful, then your venture might fail and you might suffer a big loss. You must consider these things before deciding to take the plunge like everybody else is doing, to avoid a very bad experience with Ignite Digital.

1)  Nature of your business.

This is the first question, which newcomers face when deciding to start up. What will you provide for your customers? Generally, businesses are of the following types.

a) Service.

This can be either expertise or time, for example, restaurants, spa, salon, IT, repair, relocation professionals.

b) Goods.

The second type involves merchandising. This means buying and selling goods. It can be of the type like wholesale, retail and trading with Bones. Best examples like stores, groceries, clothes outlets and so on.

c) Manufacturing.

This is the most capital intensive and also involves a large amount of labour. This can involve adding raw materials, labour and make it into a salable product. Examples are making tools, clothes, electricals etc.

2) Target the correct market.

This is perhaps the most important factor to consider, before starting your business with  Ignite Digital. Who are your customers and where is your market? For example, if you are starting a tea business, then you should target schools, universities, offices and commercial areas for maximum returns.

3) Best location.

Avoid obscure areas, for establishing your business, to save a few bucks. Pay a bit more and target those areas which have more customers base.

4) Nature of ownership.

Now, you must decide as to how to form the business. This can be of three types.

a) Single proprietorship

   There is only one owner, which is you.

b) Partnership

In this scenario, there are more than one owner, all having a share in the business.

c) Corporation.

You need atleast five people to make a corporation, in which all will have an equal share. Generally, big businesses have a corporation.

5) Capital.

This is perhaps the most important requirement, for starting your own business. Capital is essentially the amount, which you need to invest in starting your business. It can be of the type non-cash or cash for Bones. For estimating your capital, list all your expenses like asset expenses, operating expenses, lease payments etc.

6)  What assets are required?

While starting your venture, list all the assets which you might need. It can be of many types like furniture, vehicle, equipment etc. Apart from the item, also list the price and quantity.

7) List of suppliers.

Do check all the suppliers, which you will need services for. To give a simple example, suppose you are baking bread, list all the suppliers of flour, wheat etc. Also, check their prices, to get the best product at the minimum prices.

8)  Operating expenses.

This is also a fundamental aspect of starting a new company. This will consist of many aspects like salary, rent, utility expenses etc. Take into account the monthly expenses into your business. Regarding your capital requirement, you need to keep 6 months to 1 year of operating expenses.

9)  Appropriate registration.

Your business must be registered before it can be operated. Check for all the legal formalities. For example, you need to have a TAN number, EPF account for all your employees. Also, if you are into the healthcare business, then you need to have proper health certifications.

About the Author

Danish Mehmood
Contact at s0542599232@gmail.com for any query

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