Many startup businesses often fail in their first year of running a company because of the constraints and pressure they face. Regardless of the business size, proper utilization of business planning and relevant tools is important to manage the organization, ensure profitability through financial accountability and sort out business and government legalities.
It may sound really daunting for an individual with a limited knowledge about management to step into a commercial venture. As the matter of fact, there are many factors that an aspiring entrepreneur needs to consider when starting out their dream business.
Planning and Preparation
After you have a business idea, planning and preparation is the most important thing that should take place before the startup stage. Make a business plan which should consist of everything you need to consider when you launch and take your business to progress. For this, you must know your budget, underestimate the sales, and overestimate the expenditures. Remember, consistency of cash flow is highly important to help your business survive in the market.
Know Your Competitors
Another important aspect of a business startup is to examine your competition, their strengths, and weaknesses. Also, find out what opportunities are likely to come up in your way and what opportunities are already available. You can conduct a SWOT analysis to do so. If it highlights any potential threats, learn how you can overcome them using some of the best risk-management strategies. This will help you stay prepared and run your company more smoothly.
Set Your Goals
A successful startup requires you to know what business objectives you expect to accomplish and what you need to do this. Set your objectives and outline a step-by-step guide for how you will achieve them. In order to make your goals achievable, break them into small ideas and try to achieve one by one.
Determine Your Company Type
You must determine the type of company or corporation you want to set up before you go for its registration process. Should it be an LLP company, a shelf one or based on the partnership? An LLP set up is a complicated option though it’s a perfect choice for those who are interested in an active managerial role. A shelf business, on the other hand, is ideal for people looking for the ways to bypass registration process due to any reason. Lastly, a regular partnership is often attractive for people interested in bidding contracts or needing an existing company to have a reputation.
Manage your Finances
As an entrepreneur, it is important to pay necessary attention to the year-end account and submit relevant tax to the government. Bookkeeping is another financial pointer that should be dealt with due care. Make sure you keep accounts up to date in order to avoid any tax penalties from the authorities when you miss a deadline. Personal financial statement and filing of income tax are other important financial aspects that matter a lot for any business. It is recommended to hire an accounting department to manage complex financial matters such as payroll, year-end financial reports, VAT registration & returns, and annual returns.
Consider Hiring a Startup Mentor
A lot of startups fail in their nascent stage for a number of reasons. It includes inexperienced entrepreneurs, shortage of funds, poor market conditions, the absence of a supportive startup ecosystem, and more. However, the most important reason is having no startup mentoring and lack of inspiration and proper guidance. Even though it may sound absurd to some strong-headed businessmen to take the support of a mentor who can execute their business plan, it is a requirement to make a business venture successful.