How to start a business effectively? You have probably searched a lot on the internet to get the right answer, but every time you are seeded with long article right from the management book. However, I can help you find a way that will help you start a business effectively and with confidence. Assure you that I will not bore you with the management book information like planning, research, and location selection, etc.
Unknown fact: How to start a business?
As you read this, I’m sure you’ve already decided to become an entrepreneur and are familiar with the fundamentals of starting a business. Let me discuss some essential factors of starting a business successfully that are critical since they have a long-term impact on the firm.
First, excitement is both a builder and a devastating killer. Judge whether you are blindly in love with your business plan, the only way to judge it is to let others critique it. Consider yourself blindly in love with your business initiative if you find yourself defensive (verbal or silent) on the same point in multiple different review sessions. In such a case, do not start until you have buried this sensation. Become more practical about your business, and allow others to point out flaws to you and accept or reject those findings after proper evaluation. So, have confidence but control your over excitement.
The next step is to apply “what if” formulas to every aspect of your business plan. Things may appear fine on PowerPoint and Excel, but may be very hard to execute, and any wrong move in actual operations can ruin everything.
Let me explain in detail, suppose you want to start an e-commerce aggregator to sell affordable Darjeeling tea across the glob, tea producers in Darjeeling can list their products on this platform. You have created a road map for the next five years based on the last five years’ production data, demand, and market size changes in your business plan. Here, plan “A” is complete, but do you have plans “B” and “C”? First-time entrepreneurs frequently rely only on plan “A,” which is often driven by excitement, as I said in the first point. My sincere request to all aspiring entrepreneurs to make plan “B” stricter and “C” more.
Note: Always have an exit plan ready. (No doubt It’s frustrating, but important for survive and start over.)
Strategy is must in starting a business.
To start a business we make strategy, am I correct? Is that really a strategy or go to market plan followed by an expansion plan! Check, whether you have any strategy placed on the business plan, the first time entrepreneurs tend to do this mistake unknowingly, they think GTM is a strategy.
Please note, a good GTM plan alone not enough for long term success, there must be a strategy where the GTM is a critical part. Believe me, here the tier “A” business school graduates are different than others, they do not do this mistake. Is it sounding tough, let me explain what you should do to overcome this crisis.
Strategy starts with Vision and Mission, let me elaborate why it is important by explaining the personal goal of an entrepreneur.
As an entrepreneur when you dream about its success what do you see at a first shot, do you see yourself with a changed lifestyle, or you see the brand name spread across the country? Please note, the later indicates entrepreneurial spirit, and the former is self-centricity. If the self-prosperity takes the driver seat on your entrepreneurial journey, you need to change it immediately. Here, setting vision and mission plays important role. Let me take the example of tea business I have mentioned above and set vision and mission statement.
Vision: Connecting tea enthusiasts worldwide with high-quality, authentic, and competitively priced Darjeeling tea brands, while fostering sustainability and supporting the local tea-growing communities.
Mission: Strive to provide tea lovers with a convenient and reliable source for accessing the finest Darjeeling teas.
Please, never think business will make you rich, change your lifestyle, wipe off this kind of thinking completely from your mind, and never allow this thought to influence you. Just, work on vision and mission the prosperity will follow.
Points: Check your business plan, are you giving salary to self which is 2 times or more than the salary of your immediate junior.
Before starting a business must ask questions.
Please pose the following questions to strategize your new venture, if you find the correct answer, success is guaranteed.
Entrepreneurs should ask themselves 10 crucial questions while building a business strategy to ensure they have a comprehensive grasp of their business, market, and goals. Here are some important questions to think about.
1. What is my business concept or idea? Clarify your product’s or service’s unique value proposition and how it solves an issue or answers a market demand.
2. Who is my intended audience? Determine which client segments you want to target and learn about their qualities, preferences, and habits.
3. What distinguishes my company from competitors? Determine your competitive edge and how you distinguish from other market participants.
4. What are my short- and long-term business objectives? Define your short- and long-term business objectives, and make sure they are specified, measurable, achievable, relevant, and time-bound (SMART).
5. How will I find and attract customers? Create a Go-To-Market (GTM) plan that outlines your marketing and promotional activities, including as channels, campaigns, and message. [Prepare plan B and C]
6. What is my pricing plan? Determine the best price model based on costs, customer perceived value, market competition, and profit objectives.
7. How will I market my goods or services? Choose distribution channels that are appropriate for your target market and product/service offering, such as direct sales, partnerships, e-commerce, or retail.
8. How will I manage my money? To ensure financial sustainability and growth, create a financial plan that includes revenue estimates, expenses, budgeting, and cash flow management. [Prepare plan B and C]
9. What resources and talents will I require? Determine the necessary resources, talents, and technology required to effectively execute your business strategy. [To begin, and then expand]
10. How will I assess and adapt to success? Establish a mechanism for reviewing and updating your plan based on market input and changing conditions.
By asking these critical questions, entrepreneurs may acquire insights, uncover gaps, and establish a well-rounded business strategy that positions them for success.
To know more about strategic management process you may read the article,
Initial funding matters a lot in starting a business.
The next is funding, starting a business should never be based on commitment, if you do not have the necessary funds, do not begin. Your initial funding must be sufficient to support you till the next round of funding as per plan C, allowing you to continue doing business even if funding plans “A” and “B” fail.
Most first-time entrepreneurs make this error and come to a complete halt when their funding plan fails, only to restart from scratch when they receive funds.
So, having a concept and drafting a good plan is not enough to be successful in business, in fact, while planning a business, validating the plan is crucial. I will always advise you to spend some money and hire an expert for this job. however you can read an article written about how to validate a business idea.
Hope now you have got the answer to how to start a business effectively. No doubt planning, market research, financial projection are important elements of business planning but not knowing how to drive them will not let you roll safely and long term.
To read more about how to start a business, you may read the below articles.
- How To Start A Business From Home With Innovation?
- Starting A Business Doesn’t Have To Be Daunting – Even If You Have No Ideas!
