Starting a new business in any field is always a challenging task. It requires detailed analysis and thorough understanding of the business domain along with many other things. Here is a concise checklist which one can refer to, while in the process of starting his or her own business.
In recent times, the number of new startups and emerging businesses has grown like never before. The worldwide economic slowdown, coupled with the increasing number of layoffs, has prompted people to think of various possibilities beyond jobs. In such uncertain times, it makes sense to be involved with something over which one has maximum control. Naturally, small businesses and startup ventures are on the rise as more and more people delve into entrepreneurship.
However, starting a new business venture is no child’s play. There are a lot many factors, that an aspiring businessman must take into consideration, during the initial phase. The following checklist provides certain guidelines which would be helpful to those coming up with various small businesses of their own.
Checklist for Starting a Small Business
Ask yourself why: This is the first question you should tackle before doing any other thing. Ask yourself, "what is the precise reason that you want to start your own business?" Be honest with your answer as it will invariably affect the eventual success or failure of your business.
Choose a good business name: Choose a good and apt name for your business and register it with the concerned authorities. Pick a name which compliments your attitude and clearly projects your line of business. You don’t want a business name that leads prospective customers into thinking of you as an ambulance services provider, if tourism is what you’re actually in.
Understand your business domain: Identify and understand your business domain area thoroughly. It is always important to know well in advance what is it that you will be doing, and what is it that you will NOT be doing.
Identify your strengths: Identify your strengths and also your weaknesses. Understand your niche areas and design your work process accordingly to utilize it to the maximum. Focus on your strengths and at the same time, figure out ways to tackle your weaknesses.
Comprehensive market research: It is imperative that you do extensive and thorough market research pertaining to your area of business. Identify your competitors and learn from their successes and failures.
Set realistic goals: Everybody wants their business to be successful. But then how do you define ‘a successful business’? Set goals for your business in terms of financial targets, sales targets, growth parameters, etc. Set both short-term as well as long-term goals, but make sure they’re realistic.
Prepare a detailed business model: Once you are clear with your goals, you must decide on how to go about achieving them. Prepare a proper business model or a business plan for this purpose. While preparing a business plan, one must take into consideration a number of factors such as the available resources, manpower skills, financial strength, etc. During this process, it is also advisable to take inputs from someone who is well-experienced in the same field. Hire a business consultant, if necessary.
Get your legal licenses and permits in order: Once you start a business venture, you are automatically responsible for all its legalities and licenses. Make sure that you obtain all the necessary licenses and legal permits from the concerned authorities. Tie up with a legal advisor or an attorney, if needed.
Develop an effective and efficient marketing strategy: During the initial phase, almost every business venture has to invest a considerable amount of time and money in marketing their services. Work out different types of marketing strategies and then pick the one that is the most effective, efficient and best-suited to your needs.
Have an RMMM plan in place: Always have an RMMM (Risk Mitigation, Monitoring and Management) plan in place for your business. It helps in identifying potential risks, dealing with existing ones and can thereby protect your business from a sudden disaster.
Use your finances wisely: Unless you happen to be a billionaire in the first place, it is absolutely crucial that you learn to manage your finances properly. Finance is to a business venture as oxygen is to man. Keep a detailed written record of your expenses, profits, bank transactions, loan statements, etc. Hire a financial consultant, if necessary.
Stay abreast of changing market trends: Market trends always keep changing and evolving over time. Change is inevitable. Make sure that you remain abreast of the changing trends in your line of business. It will enable you to adapt to new situations much quicker and will also help you stay ahead of your competitors.
Keeping this checklist in mind will surely assist you as you embark upon a new journey as a businessman. Work hard and keep the faith!
| By Parashar Joshi |
Small business startup checklist
Planning is essential to success, he adds, noting that poor planning is the most common reason for new business failures. “Take the planning part of starting a business seriously,” Thompson says. “Going through the planning process is just critical."
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