Start-up 101 - Steps to have a good Start-up

SHRUTI RAGHURAM

If you chose to read this article, you’re obviously curious as to what it takes to run a successful business. It’s not just about the money or the determination although they do play a vital role in the life of a company. There is a lot that goes on behind the scenes to make what appears to be a well-oiled machine.

According to many renowned researchers and scholars, for any start-up to work, there are 7 basic steps that need to be followed.

1. Market Research- know what you’re getting yourself into. Is it already an overly occupied category? Is it a small niche? Who are your competitors? What are the strategies that they are implementing and how are you unique? Is the product solution to any problem as of the present or is it purely a luxury? Try to have a broad spectrum of consumers. When you enter this ocean for the first time, you are Nemo. Your competitors/ enemies are the divers waiting to capture your business and kill it. Only this is not Finding Nemo and once you land in trouble, Marlin is not crossing the ocean to save you.

2. Show me the money!

Investments and capital. To do pretty much anything in this world, the one primary thing you need is capital/ funds. There are many different ways to get the money you need. You could organize a fund-raiser or go to an investor and offer up some equity or set up a payment method like on the show Shark Tank. Or worst situation, sell your organs and your first born. Just kidding. Or am I?

3. It’s law and order time baby!

Seriously. You need a good attorney. A trusted individual with enough experience to advice you on what’s good or bad for your business. This person will handle all your legal agreements, review your lease and also help you determine a good business structure. A start-up like playing “the ground is lava”. One wrong step and you will die. You need someone who will guide you in every action you take and stop you from stepping on the proverbial ground.

4. A good accountant is a must.

This person will be the one who would maintain the books. He will ensure that no discrepancy occurs with any of your deals. This person needs to be a credible one because you’re trusting them with what matters most. The money. They will also be the ones to file your monthly transaction updates, your year-end tax returns and do all your auditing. Any minor mishap while doing this may cost you your entire business and the free jail time comes as an added bonus!

5. Your business structure.

It can make or break your business. A good 5 year or 10 year plan often translates to a good and sound business. Care should be taken that your plan is scalable. A person with not even Rs.50000 in sales in 2 years cannot plan to achieve a Rs.1 crore per year target in 5 years while pitching to an investor. Be realistic.

6. A name. Duh.

It might sound silly but it matters a lot. You need to ensure that your product is properly advertised. You get a span of 30 seconds at best when a costumer walks past your product in an aisle of a store. You need to make sure you grab their attention in those 30 seconds and most of all- maintain it. When they read the name of the product, they should immediately understand what you’re selling.

Example: if you’re selling processed chicken, the packaging will (and hopefully should) not read potato. It’s just weird. You get it right?

7. For the last step, you need Mr. attorney again. Coz why not?

I’m talking about all the legal permits and documents needed before you even begin. Your attorney should have all the legal licences needed to get your business off ground zero. You need to have your seller/ manufacturer licence set up, your registration with the tax department and file for all required patents.

These are the basic spices needed to cook up a storm of a dish also known as your start-up. Of course, there are many more aspects like a good technical support, an app or website developer and many more. Awareness about these basic principles is pivotal to starting and maintaining a successful start-up. Many people forget about them and end up losing their businesses. So, just keep them in mind and you will find yourself in calm and secure business position.

What India needs right now is more of these start-ups. We need to create jobs rather than get one. Creating jobs will lead to more tax generation which will lead to lesser taxes per person. This will decrease the pressure of taxes on one person which will make for a sound and satisfied citizen. That is just one step we can take towards contributing to the progress of our country.

Sincerely yours,

The Girl With A Quill.