With the passes of time and growth of entrepreneur skills, people are moving towards a better and valuable opportunity through which they can earn substantial amount with minimum risk in the least investment.
As we know the business is full of uncertainty but it is human who take the responsibilities & travels the path of difficulties for the fruit of success.
This article is dedicated to entrepreneur who are planning or have already started their own venture/business.
Through this article we would like to highlight the points or situation needed to be considered during the phase of entrepreneurship or before starting any business.
1. Nature of business operation
A business shall first determine what exactly it wants to do, i.e. product or service-based business and the targeted sector i.e. primary , secondary, tertiary. On a note where the primary is Agricultural driven, Secondary is more related to Industrial & Manufacturing and the Tertiary sector provides services to other two sectors is needed to be understood as every sector has its own set of rules, growth, efforts needed, competition, market & returns.
2. Fund availability
What is the minimum fund needed , what might be the maximum fund needed in extreme situation, all is needed to be once consudered before exxecuting any business process.
3. Nature of competition in the market
From the Business point of view Competition is always good as it gives the best product/service at the best cost & further there is optimum utilization of resources. The effort & cost required to sale a product define the status of competition. The competition can be either growing or mature or the market has decided there leader. (Leader is the price Maker, he takes the sole decision & entire firms are accustomed to act as per the leaders strategy, say for wireless Telecommunication Industry Jio is the leader, which has changed the pricing policy of every single firm in the Industry.
4. Flow of customer
Customers are the king who determines the worth of a business, we need to understand how our business will communicate to the potential consumers for ours product/service.
Either we will go to clients place for our product/service or they will come to our offices or a mixture of the two. This is important on the point that based on our choice of delivery of service our marketing & Customer-Engasing power will work. How customer reach us and how we will reach to our customers is needed to be determined so that we could target the exact market for boosting our revenue and accordingly decide our Marketing strategy. (E.g- Swiggy delivers at home, Urban clap comes to the door, Ola/Uber come to us, & similarly 24*7 Outlets/Reliance Fresh/Vishal Mega Mart/Professional Service providers-CA,CS,Doctors, we visit particular store/service provider).
5. SWOT/TOWS/PESTLE Analysis
SWOT is acronym for Strength Weakness Opportunity & Threat, the things are needed to be understood on note of possibilities risk & upcoming situations that could hamper the flow of business, the business being full of risk is needed to be analysed the extent of risk & the level at which it might get affected by external & internal factors.
6. Pricing strategy of the competitor.
How much the competitors are charging for the same/similar type of product/service. Can we take the pricing advantage by charging low for our products that the competitor’s price to attract the customer or increase the quantity/add-on services offered at the same price to attract new customers.
7. Income level of consumer.
The region/location/market that we have selected shall have a sufficient amount of income to buy or our costings shall be at least to the level that could give them an optimum level of satisfaction through our product/service in the said price. This analysis helps to retain customers for long term & always keeps a regular flow of customers for our service/product.
8 .population density and HDI of area
Higher is the population higher is the market-Subject to certain conditions. The HDI determines the quality of the good/services the market is willing to consume. Higher HDI means the luxury/fancy items or services might be in demand and vice-versa.
9. ROI, Pay Back Period, Time required to attain B.E.P per Month.
These factors are important from the view of an investor, during the need of Investment ( in case the business is not bootstrapped) investors seek certain financial goal that the business aims to achieve in the upcoming year.
On the other hand, we need to know the threshold time frame and minimum customers needed along with their order value to recover our fix cost per month, especially during initial months of operation or economic slowdown.
10 . Forcast our sale and budggetting quaatry monthly annulay and working capital management for the targeted period.
11. Nature of business ownership
<>company-OPC/ (P) Ltd/ LTD.
Each mode have a different governing body, different formalities & accordingly different Taxation Structure.
12. Promotion/Digital Presence
Digital promotion in social media (Facebook ,YouTube ,Google,instagram, etc) and traditional ways like print and television to create brand awareness at the cost that is under budget and have high potential targeted market.
13. What shall be the capital for my business.
14. Mission ,vission and value
15.Objective and goals – Short terms and long terms
16. How much are we affected by change in consumer behavior.
Is our product/service affected by change in taste of the customer, if yes then by how much, we need to do detailed analysis in ths same field to avoid the possibility of being called as obsolete.
Beside above points, there are several other factors that can influence the operation of the business.
We guide in all operations & allied works for the business before and after starting of the operation. We have dedicated team to handle all complexity and reduce business risk to an acceptable low level.
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You can refer to our checklist for quick reference on points that is needed to be considered before, during and after incorporation or registration of business.