In the words of Zig Ziglar, a famous American author and motivational speaker, “You don’t have to be great to start, but you have to start to be great”.
Starting a business can seem challenging due to fear of being imperfect, but not starting is equivalent to failure! There are several things to consider while starting your own business. From brainstorming, figuring out the target audience, creating a website, to many other important considerations.
To help make this process of starting easier and more efficient for you, we have curated an easy-to-understand guide on how to start up your own business and the secret recipe of every successful entrepreneur. This will give you a clear picture of the key steps to consider to kickstart your business like a pro in 2024!
A step-by-step guide to starting your own business – A 2024 guide
1. Have a clear business idea:
While starting a business, the first and the most crucial step to take is exploring your passions and skills to find an idea that aligns with your goals. Successful ventures often emerge from areas where you have expertise, making the journey more fulfilling and manageable. Once you’ve figured out the idea, it’s important to have a clear picture of the same.
Research the market, understand your competition, and refine your idea if needed, to ensure it offers something unique or superior. Besides that, it’s important to define your “why”. Pondering WHY, the reason behind starting a business can give you a clear direction in terms of your goals.
How to define your “why”?
- Identify whether your business addresses a market need or personal passion.
- Ensure your “why” aligns with long-term goals and motivations.
- Use your “why” to drive your business decisions and strategy.
- Keep your “why” at the core of your brand’s mission.
2. Conduct thorough market research:
Market research is vital for new businesses, helping you understand your target audience, assess demand, and identify market gaps. It allows you to tailor your offerings and reduce risk by making informed decisions before investing heavily.
Types of Market Research:
- Primary Research: Collects new data through surveys, interviews, and questionnaires.
- Secondary Research: Uses existing data from reports, studies, and market analyses.
- SWOT Analysis: Evaluates strengths, weaknesses, opportunities, and threats of your business strategy.
3. Crafting a Business Plan
You cannot start a new venture without having a concrete business plan. Creating a business plan serves as a comprehensive roadmap that guides how you structure, operate, and manage your business. Beyond just a strategic tool, a well-written business plan is a crucial factor for attracting investors, securing loans, and identifying potential challenges before they arise.
Whether you’re self-financing or accessing external funding, a business plan is a foundational document that ensures you’re well-prepared to navigate the complexities of the business world as you decide to start up your own business.
What are the main aspects of a business plan?
- Executive Summary: A concise and up-to-the-mark overview of your business concept, goals, and strategies. Basically, your elevator pitch in written form.
- Company Description: Details about your business, including name, founders, location, and mission statement, to give your venture a well-deserved identity.
- Industry Analysis: Research on your industry, including size, growth trends, and competitive landscape, to position your business effectively.
- Customer Analysis: Insights into your target audience and how your product or service fulfills their needs and desires.
- Organization and Management: Overview of your business structure, leadership, and key stakeholders. All of this should be presented with an organizational chart.
- Service or Product Offerings: List of current and future products or services, supported by a concept statement and proof of concept.
- Customer Segmentation: Identify the different customer groups based on demographics, behavior, and needs to tweak the marketing strategies effectively.
- Marketing Plan: Develop a comprehensive strategy that includes market analysis, target audience identification, brand positioning, and a multi-channel approach to get right on track with growth and engagement.
- Financial Projections: Estimates of revenue, expenses, and profitability, with a complete focus on sales forecasts and cash flow projections.
- Operational Plan: Action plan outlining how your team will achieve company goals, from timelines to milestones.
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4. Understanding Business Structures
Selecting the right business structure is another key decision that impacts how your business is legally recognized, taxed, and managed. Take a quick look at the different and the most popular business structures:
- Sole Proprietorship:
A business owned by one person, where the owner has full responsibility for all legal and financial obligations.
- Partnership:
A business owned by two or more individuals, where responsibilities, profits, and debts are shared. Here, partners are personally liable for the business’s obligations.
- Corporation (Private Limited Company or Public Limited Company):
A separate legal entity from its owners (shareholders) that can operate and conduct business independently. Private Limited Companies are popular in India, whereas Public Limited Companies are larger and can offer shares to the public.
- Limited Liability Company (LLP):
A Limited Liability Partnership (LLP) is a business structure where each partner has limited liability, protecting them from being held responsible for the actions or negligence of other partners.
5. Registering Your Business and Obtaining Licenses
Once you’ve selected your business structure, the next crucial step is to legally establish your business. To do so, keep in mind the following steps:
Choose a Business Name:
- Register your business with the Ministry of Corporate Affairs (MCA) if you are forming a company. For other structures, consider registering at the local Registrar of Firms.
Obtain PAN and TAN:
- Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for tax purposes.
Register for GST:
- Register for Goods and Services Tax (GST) if your turnover exceeds the threshold or for inter-state supply.
Obtain Necessary Licenses and Permits:
- Get licenses relevant to your business, such as Shop and Establishment, Food License, or Import/Export License. You can also check local authorities for additional permits.
Understand Your Tax Obligations:
- Stay informed about GST, income tax, and local taxes to ensure compliance.
6. Getting Your Finances in Order
- Open a Business Bank Account
To open a separate bank account for your business, you’ll need your business name, registration documents, your Permanent Account Number (PAN) as well as your Tax Deduction and Collection Account Number (TAN), if applicable. This account will hence be used for all business transactions, including paying suppliers, receiving payments, and managing business loans or lines of credit.
- Set Up an Accounting System
Organizing your finances starts with setting up an accounting system. Invest in an accounting software that tracks income, expenses, inventory, and generates financial statements. Alternatively, consider hiring a bookkeeper to manage these tasks, because accurate bookkeeping helps you stay compliant with tax laws, manage payroll efficiently, and make informed financial decisions.
7. Applying for Business Insurance
So many business owners make the mistake of neglecting business insurance while setting up a business and end up facing losses when an unforeseen circumstance arises. To protect your business from potential risks, it’s essential to apply for business insurance.
In India, there are various types of business insurance that can protect you from different risks:
- General Liability Insurance
- Property Insurance
- Business Interruption Insurance
- Product Liability Insurance
- Professional Liability Insurance
- Workers’ Compensation Insurance
- Employee Practices Liability Insurance
8. Selecting Your Vendors
Selecting the right vendors can give your business operations a smooth start to your business operations by outsourcing essential functions like payment processing, accounting, and customer management.
Make sure to focus on vendors that are trustworthy, experienced, and have a strong client track record. Key services to consider include a reliable point-of-sale (POS) system and robust accounting software.
9. Branding and Marketing Your Business
Do you want to make your business simply exist or thrive in the long run? If you want the latter, then an effective marketing strategy is what will accelerate the growth of your business. Your brand is not just a sheer logo, it’s the heart of your business that creates a special bond with your audience. That’s why it’s essential to reach the right people and tailor your strategies accordingly.
A well-designed marketing plan not only promotes your offerings but also builds credibility and trust with customers. From creating a website and optimizing it for search engines to leveraging social media and content marketing, these efforts can go a long way in driving traffic, generating leads, and ultimately, growing your business.
10. Growing and scaling your business
Scaling your business for long-term success involves expanding your customer base, boosting revenue, and streamlining operations. Focus on ramping up marketing, refining products or services, and forming strategic partnerships. Automate tasks like accounting and email marketing with tools like Hootsuite to save time and energy. As your business grows, also expand your team by hiring skilled professionals to ensure efficient day-to-day operations.
Are you looking for resources for building a team? Here’s a couple of reliable resources you can check out:
- Indeed
- Naukri.com
- Monster
- Glassdoor
- Upwork
- Fiverr
Make a mark in your industry with MARC today:
As Tony Hsieh, the former CEO of Zappos, wisely said, “Chase the vision, not the money, the money will end up following you”.
Starting a business can be overwhelming, but with a strong vision and the right tools, success is within reach. We’re sure after reading this blog, you’re not stuck wondering “How to start up your own business” because our 2024 guide simplifies the process, helping you refine your idea and scale effectively.
At MARC, we bring over a decade of experience in Mergers and Acquisitions Advisory, Business Analytics, Research, Internationalization, and Growth Strategy. Our team of experts has gone out of their way to help you leverage data-driven insights to make informed decisions, optimize efficiency, and achieve sustainable growth.
Contact us today and learn how we can support your business journey, just as we’ve supported industry leaders like Taj, Astra, Dr. Batra’s, Marriott Hotels and Resorts, and more!
You might also want to check out our blog on Entrepreneurship in the Digital Age
FAQs (Frequently Asked Questions):
This is a myth! There is no business that guarantees 100% profitability. Success entirely depends on market conditions, management, competition, and adaptability. Although it’s not possible to have 100% profitability, you can still improve profitability by diversifying and staying updated with trends.
Food and beverage businesses thrive in India and are the no.1 business due to the vast population of food enthusiasts. As per a recent survey, the global food market is expected to grow at a rate of 6.47% from 2024 to 2029, reaching a market volume of $12.48 trillion by 2029.
It depends on your business type and location, some businesses require specific permits, while some don’t. For example, starting a restaurant typically requires health permits and food handling licenses, whereas an online consulting business may not need any special permits.
If you are planning to start a new business in India, then there are several loan options available for you. Some of the options include, term loans, business lines of credit and government schemes like PM Mudra Yojana that offer low-interest loans to support small businesses, making them an attractive option for startups.
Some of the ways you can fund your new business are by taking personal savings, bank loans, investors, crowdfunding, grants, and venture capital. Each option has its own set of pros and cons, so consider which is best suited for your business model and risk tolerance.
Choosing the right business structure may be a difficult task, but you can consider factors like your business size, type, risk tolerance, and tax preferences, to make the decision easier. Some of the common business structures include sole proprietorship, partnership, LLP, and corporation, and each of these structures offers different benefits and liabilities.
Yes, you can start a business alone. A sole proprietorship is a common structure for solo entrepreneurs. However, managing all aspects of a business all on your own can be challenging, and hiring a team or partnering with others as the business grows might be beneficial.
