Some Things To Keep In Mind Before Starting A Business.

When any person makes up his mind that he has to do business now, the first question that arises in his mind is that what he has to do before starting a business, how he can start a business, what are the things needed, etc. Similar questions often arise in his mind. So if you are also one of those people, then you do not need to worry about it, we will tell you through this article, what you have to do before starting a business and also will also answer your questions.

Advantages of Starting a Business

Starting a business is an inspirational trick, especially when one is doing it for the first time. Or those who want freedom from their 8 to 9 hours office work, it also encourages them. They can do their business anytime according to themselves, he does not have any boss, to whom he has to report everyday also, there is no definite limit to how much profit they can get in starting a business.

Things to do before starting a business

Here we are going to tell you about some such things which you must do before stepping into the world of business. It is shown on the basis of below points.

Nature of business

First of all, you have to decide what and what kind of business you are thinking of doing. And what are you going to sell in your business. For this you will have 3 options given service, merchandising or manufacturing. You have to choose one of these categories to start your business.

Service

In this, you sell your time and expertise, such as the work of professional event organizer, IT, marketing etc., or there can be restaurant, food, kiosk, transportation, salon, spa etc.

Merchandising

In this, you can choose a business like retail, wholesale, trading or distribution. In which goods or goods are sold and bought. For example grocery and department stores, retail outlets, online resellers etc.

Manufacturing

manufacturing
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These are businesses that combine both raw materials and employees to make a salable product using some equipment. For example cars, gadgets, clothing, bags and daily essentials etc.

Target Customer

Now you have a product or service to offer, with the help of which you can get profit. In that, unless you have customers, they will not buy and use your products or service, until then it is not possible. If you are planning to start a kind of business, then before selling it you must know what you are selling. If its market is good, then study about it. Along with this, also remember that a product or service is a product and service for all.

Location

In many business events, it was advised that the most important thing for your business is the location. That’s why you also identify and see the best place for your business. It increases the number of your target customers and the people around also support them in this.

Read Also: 50 Business Ideas From Which You Can Earn Good Profit.

Lease, Repair and Improvement

If you take a place on rent, then you have to pay rent for it. For this, those who own that place require you to deposit advance rent and security. It can be equal in 3 to 6 months on a monthly basis. Along with this, when you take a place on rent, it does not mean that you have got everything according to your wish, you will have to spend to make that place according to you.

Because generally the places which are on rent, some repair and some improvement have to be done in it. If you also need this kind of space, then it would be better if you add it to the cost of your business.

Formation

Once you have decided that what you want to sell, whom you want to sell and where you want to sell it, then it is time that how you will do that business. For this, you can choose one of full ownership, partnership or corporation.

Wholly owned:-

This means that only you will be the owner of your business.

Partnership:-

In this you share your business with someone else, who can be your partner. For this you will need at least 2 persons.

Corporation:-

In this also you share your business with someone else who will be a stockholder. You need a minimum of 5 people for a corporation.

Capital investment

capital investment
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Capital is the capital or value that is put into starting and running your business. It can be either cash or non-cash. To know how much capital you need, first prepare a list of what you will have to spend money on to start and run a business. This list may include the purchase of assets, repairs, lease payments, as well as some other expenses for the operation of the business.

Get proper insurance

Insurance is also very important for doing any business. That’s why you get the necessary insurance for your business. So that you will not have to face trouble later.

Asset Requirement

To start a business, plan the assets that you will need to run the business. Some examples for this can be computers, equipment, furniture, vehicles, etc. For this, you decide not only the product but also how much you want and what will be its cost.

Suppliers

Some of the identified potential suppliers will be required to produce the goods or services you sell. You should also consider its cost, location, reliability and operating hours etc.

Expenses incurred in running the business

You need to make a list in advance of all that you will have to spend to run your business. This can usually include salary, rent, office supplies and utilities etc. Also consider the monthly cost of your business. This is a very important stage for your capital requirements. Because usually you have to keep monthly expenses in the form of capital for at least 6 months or 1 year.

Hiring person or outsource

One of the most difficult tasks for a business owner is managing people. Hence there is a demand for outsourcing. When you start the business then you must consider this option. If you consider hiring individuals, you will need to consider their salaries and other government regulations, and if you consider the company you outsource, or the expertise and reliability of your outsourcer.

Registration, License and Tax Identification

After you have considered the amount of your expenses and capital requirements, then before starting your business, you will need to file your business name, incorporation, paperwork, and obtain necessary license and registration and tax information with the local municipality.

Various things would be required. Many resources are given for this. There is the Internal Revenue Service (IRS) for federal tax matters, as well as local corporation commissions that can assist any new business owner with meeting regulatory requirements for each location in the country.

A bank account for business

You need to open a separate bank account for your business. This will help you to simplify your record keeping. And especially if your business is a sole proprietorship, you don’t even have to mix your personal things with your business. You choose such a bank which is accessible and available.

Marketing and Competition

Your business is incomplete without marketing. Because marketing is one of those key factors that shows why your business is successful and why it is unsuccessful. So choose the right marketing platform for your business. Besides, there is nothing wrong with having a little competition. Because on the basis of this you get an opportunity to come out with a better product or service.

Competition is an important step in how you have to win your customers. You should know everything about your competitor and his business. If you do not know how your competitor is moving forward, you will not be able to get success. Therefore, it is important that you know your market, know your competition, and also know how your company can be different from them.

Government compliance

After this one important thing which is often left out is to give report to the government every month, 3 months and year. It is often seen that many businesses which are becoming very successful but if they do not comply with the government then later they have to face problems like some government fines. Government compliance includes at least filing, payment of taxes and SSS/Philhealth/Page-iBig contribution etc.

Accounting and Financial Analysis

When you start your business you need to make sure that you have reliable accounting and financial reporting processes. Business can be called accounting in other words. That’s why it is very important. It is a must know what is happening in your business. For this you must have a reliable accounting and financial reporting system. So in this way you get information about all the things in advance and after that start your business and get profit by operating it.

FAQ

Q: How can I start my own business with no money?

Ans :- If you are thinking of doing your own business with no money then you must first ask yourself what you can do for free, apart from this you have to save at least 6 months. You can borrow additional funds from your friends or family. Or you can also apply for a small business loan.

Q: Which business is best to earn money?

Ans: All businesses are good to earn money, you can do any type of business, it is totally up to you that what kind of business you want to do.

Q: How can you earn quick money from your business?

Ans: If you are thinking of starting your business and earning quick money, then first you should promote your business. Do its marketing both online and offline. You can also make a website of it. The more people know about your business, the sooner you will be able to make money.

Q: How can I get a loan to start a business in India?

Ans: Pradhan Mantri Mudra Loan Yojana has been made by the Government of India for businessmen, through which you can take loan from the bank for your business.

Q: Is it necessary to register for small business also?

Ans: Yes, whether the business is small or big, it is necessary to register it legally because it proves that you are not doing any illegal work.

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