There are hundreds of small business starts daily. Some of them are successful, and some fail. One whose small business does not survive in the market makes a common mistake: starting their business without paying attention towards the factors to be considered before starting a business. Only after good research you will come to know about factors to be considered before starting a business. Still, if you think you cannot do that, instead of avoiding this stage of starting a business, take the advice of an expert professional who may be a CA, CS or lawyer who will help you out with the same. The current write-up is also regarding the same. If you read it till the end, you will have a proper idea about those factors regarding the business.
What are Small Businesses?
Small businesses are those businesses that are started with the least funding. Their team and work are not that giant. They are working on a small level. Startups and MSMEs also come under the category of small businesses. Startups are businesses that operate under the Startup India Scheme initiated by the government, and MSMEs are the micro, small and medium types of entities. To be officially recognised as MSMEs and access government assistance and schemes, they need to undergo MSME registration, which is commonly referred to as Udyam registration among the general public. On the other hand, startups get recognition through Startup India Registration.
What are the Key Factors to be Considered Before Starting a Business?
Before embarking on a new business venture, it’s essential to carefully evaluate various crucial factors to be considered before starting a business. Here are some important considerations to keep in mind when starting a new business:
Specific Factors to be Considered
- Pricing of the goods and services must be well calculated because the first thing that customers compare is the price of the goods and services.
- Try to verify that services have been provided by a registered filing agent
- Incorporation of the business so that customers can rely on your business easily
- Must check the availability of an expert like CA, CS or Lawyer who can help you out to fulfill the legal compliances of your business
- Comply with the current updates and changes that are applicable to your business is also among the important factors to be considered before starting a business
- Maintenance of accounting and bookkeeping of the business. If unable to maintain the house, outsource them
Basic Factors to be Considered
- The needs of the business in the market must be checked as it is one of the important factors to be considered before starting a business.
- Uniqueness must be there in your business that makes it different in the marketplace
- Different identity of the business
- Business Structure must be decided at the beginning of the business.
- The marketplace of the business must be well-researched
- Specific Audience that your business is going to target
- Startup Costs must be calculated so that you will have a rough idea of the business cost
- Funding must be well-calculated, and it must be invested in the business after well calculation
- Money Obligations must be taken after proper calculation
- The location of the business plays a great role in its success and failure; hence, it must be chosen wisely
- Employees are one of the key factors behind a successful business. Hence, they must be chosen wisely
- Supplies and Sourcing of the business must be checked
- Regulations and laws must be checked so that there will not be any violation of the business-related laws
- Accounts must be properly maintained because they are related to the finances of the company, which is very important for any kind of business.
- The brand name must be created and sacred with the help of trademark registration, which is also one of the crucial factors to be considered before starting a business
- Marketing sources must be decided, and proper marketing. In the current era, social media marketing is at the top.
- Distributors must be pre-decided
- Competitors’ business-related research is very crucial so that you can get ideas about your business-related negative as well as positive aspects.
- Record Keeping is another important factor to be considered before starting a business.
- Limits of the business are really important so that boundaries of the business shall be decided. It will give a proper direction for your business.
Process to Start a Small Business in India
Follow the steps given below to start a successful small business in India:
- Research about the business you are thinking about to set up
- On the basis of the research, draft a business plan
- Choose the appropriate type of entity for your small business
- Register your business with the competent authority
- Obtain all the necessary permissions from the competent authorities
- Hire a good team with competency as per your business
- Divide the revenue of the company properly
- Take advice from the experts like CA, CS or Lawyer
- Implement the business plan
- Start your business
Conclusion
Only a handful of small businesses manage to achieve lasting success. The reason for this disparity often lies in the rush to start a business without due consideration of essential factors to be considered before starting a business. Successful businesses tend to be those that take the time to thoroughly assess the landscape before launching. They research the market, understand their competition, and plan meticulously. Suppose you’re contemplating starting your own business. In that case, it’s crucial to read this blog all the way to the end because we’re about to delve into the vital factors you must ponder before embarking on your entrepreneurial journey.
