Starting your own business? Some basic check-list items

First of all congratulations that you have taken a decision to start your own business now. It surely is an important milestone of your professional career and you would like to make the most out of this decision. But before you jump the gun, it is important for you to get an idea of what lies in store for you ahead. It could be the steps you need to take to start the business , the challenges ahead and what are the important items you need to take care of.

Below is a quick list of items, which you might like to tick in the same order (Minor deviations are okay) to get going well:

Vision

Most of the people jump the gun directly and do not invest time in thinking through the reason behind starting up. If you want to play long in this game, you need to think long from the starting itself. You must have a vision to have a clear idea as to how you want to take this forward. Let it not become a result of your sudden jump in passion.

Business Plan

Irrespective of the business one wants to start, creating a business plan is one of the first few steps, which must be done as a part of the planning process.

A basic plan should contain the type of business you wish to operate, the range of services you want to offer, overall size of your operations. This should also include your sources of revenue, the potential expenditures that may have to be done. You should at this moment also try to forecast your financial numbers based on assumptions. You should also try to figure out your sources of funds at this stage itself. Forecasting will help you to create milestones and judge success/failure of your practice.

Also, it is to be understood that at this moment you might not have complete information, so certain logical assumptions are required and also keep a scope for deviations.

Legal Aspects

Before starting the practice, it is advisable to create a legal business entity. This will avoid any personal liability in case your practice is sued due to some reason. It is also imperative at this moment to research if you need any legal approvals from the local or federal bodies. If yes, the same should be procured to avoid any non-compliance issues at a later stage.

Location

You need to check if you need physical space for your business. If yes, then that needs to be finalized carefully, since it is going to be one of the heaviest investments you will do. In case you

• You would like to open the business at a location that is easily accessible by your larger client base in case it is a B2C Business
• You would also like to figure out the competition in that area since if there are already too many similar in that area, then making inroads will be tough if not impossible.
• Buy or Rent, would be another important decision to make. One must weigh financial pros and cons before making the decision. Buying would incur a one time fixed cost while rent would be periodic lesser variable cost.In rent also, you will need to see whether you want to opt for a co-working space or your own independent setup

Team

You cannot do all the work by yourself. You would need a team for running the business successfully. You must also forecast at this stage how many of each of the support staff do you need. Once you have a clear idea on requirements you can start the hiring process. Hiring is an important activity, since a wrong hire may impact the business in the beginning. It is also one of the most time consuming activity, since you need to screen profiles, take interviews and then possibly select one of them. You can either choose to do by yourself or ask an agency to do some work for you.

Design your services

Although most services will follow a standard operating procedure and there is little modification which you can do. However, in this limited scope you can see what best you can do to create a positive differential over others. Also, in today’s world customer experience has the prime importance. You can also think about how you want to give a long lasting and positive customer experience to your clients.

Pricing

Pricing is the next activity in the line since you have already designed your services by now. Some of the common methodologies to price are mentioned as below. Based on your context you can choose anyone:

• Customer Willingness to Pay: Eventually, your customer will be paying for the services. So you must figure out how much is the maximum an average customer can pay and price accordingly
• Cost Plus method: Another popular pricing method is the cost plus method. In this method, you add your profit margin over the cost incurred for that kind of a service. In this, it is very important to map all the costs which is incurred when executing that service
• Competition based: You are not alone in the business. Your competitors also share the same customer base. If your pricing is higher than your competitors, customer might choose your competition over you.

Marketing

Once you are ready to go, you need to start marketing the practice. You could choose to do by yourself, get people on board or outsource this to professional agencies. You can do marketing in print media like advertisement in newspapers, magazines etc., in outdoor media like banners, billboards, posters etc., in electronic media like Email Campaigns etc. If you are high on budget, you can opt for TV and Radio Ads as well. Social Media is the newest trend and your presence is very vital there to engage with the community by and large. It goes without saying, that a strong and good website will add value to your brand further.

All in all, these are some of the steps you can do to open your own venture. This is a basic framework and based on your context you can add, reduce or modify some items to kick start your business in a planned and structured manner.

Best of Luck!

In case of thoughts or suggestions, please feel free to reach out to me on a@gargashutosh.com