Entrepreneurs face a host of challenges in the radically competitive business world. If you’re a new and young entrepreneur, lack of experience and know-how pose some challenges that are especially difficult to overcome. Fortunately, contemporary times have also facilitated entrepreneurs with modern resources for tackling teething issues.
If you’re a budding entrepreneur, consider these five significant aspects that may affect your business even before you move away from the drawing board.
1) Define your USP
Carving your Unique Selling Proposition (USP) is fundamental to your product or service offering. Is the product inimitable? Is the customer experience unique? Is the pricing cannibalistic? Or does the service delivery offer a logistical breakthrough?
Find your peg and ensure that everything you do revolves around the USP of the business.
2) Prepare a business plan
Writing a comprehensive business plan helps put all your ideas to paper. It not only gives you a chance to review all aspects of your business and see if it still sounds like a viable idea but also helps structure every single process step by step – right from planning, forecasting, doing a competitive analysis to cash flow examination.
Your business plan is among the key documents you would put forward to a bank or investor if you are looking for funding.
It is difficult to turn the wheel if you don’t have your finances in place. If you don’t have adequate capital, usually pitching to friends and family is the first, but not the most ideal option.
Pitching to investors is another option; however, most investors these days shy away from seed funding. They would rather see a project take shape and then decide if they want to come on board. Even if they do, you have to be willing to part with a significant stake in the business.
Considering a business loan with Tata Capital is the right impetus your ideas need. You can get speedy disbursals up to Rs 50 lakh without any collaterals or guarantors! You have the option of paying back in flexible EMIs depending on the state of your finances, growth plans for your business and cash flow requirements.
4) Licensing and legal issues
Based on local regulatory policies, you may require a host of permissions and licenses to start your business. In some cases, it may require lengthy paperwork and tedious gestation periods before you can start operations.
Figure out the specifics as they may cost a significant amount of time and money, especially if your business is capital intensive.
Understand if you need copyright or trademark registrations for the business. You will need legal assistance for drafting agreements associated with employment terms, for vendors, suppliers, etc.
Similarly, understanding tax implications for your business will ultimately determine your bottom line. Are there any rebates available for your line of work under the ‘Make in India’ policy? What tax/GST slabs does the business fall under?
Irrespective of the scale and type of business, you will need real estate, which adds a sizeable chunk to your operational costs, especially if geographical specificity is one of the essential components of the plan.
Finding the right location can take months. Even then, it will take quite a while before you are able to close the deal on the lease or purchase agreement and add more time to get it service-ready.
You won’t be able to get a banking account or basic operational licenses (Gumasta Licence) until you have a registered place of work.
The entrepreneurial journey is not as easy as it may seem. It requires lot of hard work, discipline and patience. Setting up a business is akin to having a baby. Just like your child, your business too needs nurturing with right amount of care and attention. The abovementioned essentials can help you come closer to achieving your dream of becoming an entrepreneur.