What is a Start-Up?
A start-up is a project initiated by a sole entrepreneur or a couple of entrepreneurs to develop a scalable business model.
The startup is a new business that intends to grow large. Stat-up faces many uncertainties. It is observed that most of the start-up pack up their business within 3 years from the start of the operation.
But the startup has the potentiality to change the face of the business model. There are many companies that had started as startup companies but eventually became a prominent face of business not only in their locality but globally.
The example of Flipcart, OYO, Paytm, Biyuju is the name of a few.
But there are thousands of startup companies died prematurely due to different reasons.
Today many people are fade up with their 9 to 5 jobs. They have seen that there is no job security. You may be efficient, loyal and dedicated still your job is not secure due to volatile market conditions. Further, the digitalization of everything made many jobless. And the increasing shift from manual to artificial intelligence will make many more jobs redundant.
One more point. The growth of an employee in an organization doesn’t depend only on the caliber of an employee but solely on demand and market conditions.
Hence, many think when I am not secure in a job then why not try my own business.
How To Start A Business
12 Things to Consider Before Starting a Startup
1. One Unique Idea for your StartUp
You should have a unique business idea.
It is said,” If cash is King, for start-up idea is queen”
It is better if you have an idea to solve the problems faced by many. For better idea find the problems and then provide solutions.
2. Research on that idea and collecting feedback
Before starting your startup work on the idea. Take opinions from friends and experts. Try to understand the nitty-gritty of your business.
Get actual feedback from your would-be customers. Recheck the idea. Modify it if necessary. If satisfied, then only move to other steps.
3. Knowing your customer/client
Know your clients/customers. Learn their behaviour patterns and purchasing pattern.
4. Team Building for Start up
You may have a billion-dollar idea but if you don’t have the team to execute your idea then your idea will give you zero results.
For a good performance, you should build a great team. Then only you can expect a great return.
Doing everything alone is an act of stupidity. Always find a co-founder who can share pain, expenses, problems, and workload.
You need your strong technical team. Your technical team is a practical superhero that will make your dream a reality.
You should have also your account team. This team will handle cash, compliance work and control the over expenditure.
Legal Team. Better to have a legal team. There are so many laws and bye-laws. It is practically an expert’s job. There are many compliance works they can do work. These guys are also very important.
5. Funding for Start up
For everything, you do need funds. You can use your own funds. But one day your fund will be exhausted and you will be nowhere. Initially, you can use own fund. But you need funds from other sources to grow.
For getting a fund, you can approach your friends and relatives. You can get loans from the Bank. There are so many investors waiting for a good project. You need to convince them.
Please before starting your startup business know the legality of your business. If you do a startup in Kolkata and West Bengal the following basic licenses are required.
- i) Trade License
- ii) Registering your company
iii) Shop & Etstablices Registration
- iv) Professional Tax Registration
- v) GST Registration- if applicable
- vi) MSME Registration- not compulsory but it is beneficial for Govt Loan and to get Govt. subsidies
vii) Fire License- depends on the nature of your business
viii) PF & ESIC Registrations- Required only the number of employees are more than 10
For a startup business, it is a must that one of the founding members need to understand the technology related to the business. So many startups fail because of bad technical decisions. If doubt, ask others.
Don’t use technology because it is cool.
8. Sales and Marketing for Start Up
You need to sell your product or your service.
If you are not an expert in sales and marketing, it is good to learn and understand it.
Hire only a minimum number of personnel. Premature hiring will burn your cash very fast. When your business grows then increase the number of personnel.
9.The business cycle of your product
Learn the business cycle of your product. If it is in the sun rising phase then it is best. But if it is in the sunsetting phase then be cautious.
10.Understanding the risk
Understand the risk associated with your business. Evaluate the risk and re-evaluate it.
The main focus should positive attitude. It is a difficult initial business phase. There will be so many unwanted happenings.
You need a passion for your business. Do what you love.
Remember your passion is the key to startup success.
A startup is a very complicated process. It demands you to be a CEO, Accountant, a good sales and marketing person, a legal specialist.
The startup requires a lot of hard work and if you are not having the fun of doing it then you may soon lose motivation.