Starting
your own enterprise is one of the best ways of improving your income. A
well-established enterprise has the ability to compete favorably with other
enterprises in the same market. To start your own successful enterprise, there
are 8 important steps you need to follow. Starting with number 1 below!
Create a Business Idea
This first
step will determine the success or failure of your enterprise. You need to come
up with a viable idea that will stand the test of time. A simple way to form a
good idea is to conduct a market research in the area where you want to
establish the enterprise. Identify a commodity or service that is on high
demand yet scarcely supplied. It is possible that you may not be able to create
a completely new idea. If you want to sell what already exists in the market,
check how other players in the same industry deliver their services.
You need to
think on how to deliver the same services in a better way to win customers.
Also, assess the strengths and weaknesses of your idea to determine its
feasibility.
Draw a Business Plan
Even if you
are setting up the enterprise alone, having the plan helps you to address
important issues that determine your success in the industry. The plan will
help you to:
• Know your
potential clients
• Understand
the purpose of your enterprise
• Know your
competitors
• Set prices
for your products or services
• Set your
enterprise in the most appropriate location
• Project
the financial position of your enterprise
• Know the
cost of setting up the enterprise
Select a Suitable Tax Model
An
enterprise model is important because it determines the amount of tax you pay.
You need to learn the advantages and disadvantages of each model before
choosing appropriately. Common models include limited liability companies,
partnerships, and sole-proprietorships.
Get Money & Obtain Funds
The first
source of funds for your enterprise is your own savings. If your savings are
not enough for your start-up budget, you can look for funds from banks,
investors, well-wishers, friends, and relatives. Look for banks that fund
start-ups in your locality. Some investors may demand a stake in the business.
Be sure to understand the terms of the agreement clearly.
Build Your Infrastructure and Team
Your new
enterprise needs equipment and structures to run. If you planned to rent or
hire the structures and equipment, do as planned. Additionally, running your
enterprise alone is not possible in most cases. You will need a competent team.
The size of the team may depend on various factors, including the model and
size of the enterprise. For proper operation, divide your team into various
departments. Important departments for start-ups may include marketing,
operations, finance, and procurement.
Complete Necessary Paperwork And
Obtain Licenses
You will
need to register your start-up and obtain a license to ensure its existence is
legal. Registration and licensing requirements may vary by state. Be sure to
know the requirements in your state.
Get Insurance For Your Business
Obtaining a
suitable insurance for your start-up ensures the enterprise is protected from
possible losses in future. You need to compare various insurance companies to
ensure you select one that suits your enterprise.
Build Your Customer Base
The size of
your client base will determine your sales. To build a large and stable client
base, you need to properly market your enterprise. You can achieve this through
the following ways:
•
Advertisement on social media platforms
• Telling
your friends, relatives, neighbours, and other potential customers about your
newly established enterprise
•
Advertisement in your local media including, T.Vs and newspapers
• Sending
out your marketing team to move around and notify people about your new
enterprise
• Hiring a
marketing firm to market the enterprise
Source: boredarticles
