When one is determined, to launch a startup in the market, where already plenty of startup are struggling to make their secure foothold in the market.
It is very important to consider all the prerequisite and essential points that need your attention at your initial stage of startup.
So what basic things you need to focus on at the early stage of your startup?
The main points in designing your business plan should cover:
What is your business about?
It should cover complete details on what your business is about. Be clear of your product, services, their market & your competitors.
Remember that your company’s value proposition will distinguish you from your competitors.
How will it work?
Here you need to go in detail about your flow of work, from beginning to the end, explain in depth about how your business will work, this is the best section not only for showcasing your business plan to investors, in case you are looking for funding, but also for you, as it will help you for user testing and to know if your startup is working according to your expectation or not.
Who are your prospective customers?
This is the next important thing to consider, as end users are the customer; you should know your targeted customers and focus on it.
How you are going to reach them?
What sources you are going to use to reach your potential customers will come under this section.
Media, social media, via people, via collaboration, PR everything will play a vital role when you think of reaching your customer.
Under Finance planning you should cover:
- Rental/ Phone Bills/ Internet Bills / maintenance charges etc
- Expenses (salary of the employee, percent of profit you share with your partner or collaboration if any etc, your own pay,tax, Licensing Fees etc)
- Material ,machinery requirements (If in manufacturing unit) Or basic materials (if in service unit then)
- And all other finance flow
I would like to share with you all, one of the simplest business plan model that is called:
The Business Model Canvas that is available in web-based software format.
“Money buys money”, when you plan to start up, the first thing that you need to take into account is finance that you would be requiring to start a startup. Depending on the budget you require to build up your business, you should consider the kind of investors you will opt for the finance.
There are immense options when it is about financing your business – bootstrapping, angel investors, venture capitalists, lenders, investors etc.
But considering the best out of it needs a thorough study on your funding requirement, as each kind of investing options has their own pros & cons.
Optimizing the use of Finance:
As now that you are clear about the financing and assuming that you have got in hand amount to invest.
It is crucial to set the priorities and make the best use of the finance, making it productive.
For Cash Management, you need to build up a strategy. You need to make sure that all your basic milestones are achieved rather than other higher valuations that you have set up.
Depending on the type of organization, an organization does have pipelines, you need to carefully understand the brain & heart of the business pipeline & make sure your cash flow should reach them, no matter what. As that is the lifeline of your startup.
What Legal Documents You Need:
You need to figure out all the legal procedure you need to complete first, to start your startup officially.
At first you need to acquaint about in what category your business falls: be it education, engineering, industrial, IT etc. As there is a separate regulation for each of the separate field, and one must be aware about that before registering your company.
Also you need to focus on the legal structure that you are considering for registering your company, as that can affect your enterprise & taxation in many ways. So it’s best to consult a lawyer or CA before considering on what legal structure to go for. There are pros & cons connected to each of these structure, but still it’s good to go with sole proprietor or if you do have partner, then partnership.
Self-Discipline is the bridge between Goals & Accomplishments
So now that you are ready to initiate the company, you need to instill self-discipline within the organization and yourself.
You need to create a code of conduct: the policies, standards, rules that guide the professional system of your organization leading it to the welfare & success of the organization and people connected to it.
It’s a myth that for starting up a startup you should be master in the field that you have chosen or you should belong to that domain, in which your business resides. This concept doesn’t fit into the modern business model, as to what credibility do you have to start the business you are into, if you do have a proper business plan, have a basic knowledge on what, why & how things and the fire in belly to do it.
But it’s always a good idea to have a business mentor and counsellors who will stand by you in endeavor, to guide you, to make your all decisions count right and to provide you the right knowledge at right time.
You would have read lots of time the importance of business location in success of your business.
How much direct effect your location have on your business depends on many of the factors and first and the foremost is what’s your business sector?
Is it service sector or industrial (manufacturing) sector?
If it’s service sector then where does your potential customer resides, what are their prime areas to visit and where does your market and your competitors resides plays a vital role in choosing the location.
Also where it is the head office or a backend office?
And if it is industrial sector then before choosing the location you should research on from where do your raw materials come from, by which mode of transportation is it coming, as you need to reside at a location where your raw materials can easily reach to you.
Other than that your location should be such that labours are easily available, and that is possible when you are residing around the industrial area.
The Future of the Market of Your Business:
Necessity is the mother of invention is an old proverb; Change is the mother of invention is the new one.
You need to have a clear vision about the future of your business domain’s market. You need to study the statics of the revolutions that came into your sector’s market.
You need to know that will people require the service or product you are offering, after 10-15 years too.
Marketing & Real Leads:
Always remember that though it’s good to involve romantically into your business, still you need to understand the call of the timings and what action it requires from you at that time.
At the end it’s all about the number of leads you receive and their conversion rate into the sales.
So you need to focus on tactics that you would be using to get the real sales.
Does your marketing campaign provide you the tentative number of leads that you were targeting?
You remember the very basic rule; never ever forget that for a kick start:
SW SW SW SW
Some will some won’t so what someone’s waiting
So never give up easily and give good enough time to your startup.
Grow your Networks:
Doing business is not all about marketing, sales and repeat.
It is also about the circle you build being there. Growing your networks can do a wonders to you, as many times it brings unexpected opportunities.
Also by networking with the right people, you always can take opinion & advices from the people who are there in the market and have done that or know about it.
In today’s world too word of mouth plays crucial role when it is about marketing. Let’s assume that you are into industrial real estate business and one of your friend with whom you have recently networked, is an influential personality and he went to a business party and coincidentally when one of his friend talked about a business proposal of a business park, he took your name.
Without any investment, you got a potential lead, isn’t it?
So this was just a small example, but networking can have a great impact on your business, if you try to make that more productive.
And eventually time is the teacher of all and it will teach you how to do it!
So let me know in comments, out of above ten at what stage you are and being into it what difficulties you face.