Proper planning and execution are the keys to building a successful startup. You must thoroughly conduct market research to determine the feasibility of your startup. Know what’s more in the startup checklist!
Do you ever dream of being your own boss? Starting your own business can make it happen! Startups are the corporates of the future. As per the Times of India report, the number of startups increased by 15400% in the last 6 years. And who knows which startup will become the subsequent Reliance or Tata? However, starting a new business can take a toll on you mentally and financially if not done in a planned manner. With proper planning and execution, you can smoothen this roller coaster ride. Most people ask, “Is there a defined path for starting my own business?” To answer this question, we have prepared a startup checklist that will give a clear picture of how you should proceed when starting up. Let’s get on the ride.
Checklist for Starting Up
Here’s the list of things needed to start a business:
- Finding a good startup idea
A good business start-up idea is the foundation of success for any startup. Your idea should be such that it has market acceptability and the potential to become significant. Surprisingly, too many startups go into the market thinking they have an excellent service or product, failing to realise that the masses may not reflect the same sentiment.
Such startup ideas revolve around the preferences or sentiments of the founder—something they like or think others will like. But ideally, products and services must cater to the needs of the people, not the preferences of its founders. This is why the best startup ideas are the ones that cater to the pain points of the people.
For starters, you can begin with a significant problem you are facing or think many people face. If you have a solution to that problem that you feel can be converted into a good business opportunity, then you just need to know whether others are also facing the same problem. If the answer is yes, then you have got your product and market for your new business start-up.
- Market research
Testing the feasibility of your product or idea is important. This will let you know whether your idea is worth pursuing or not. Targeting the wrong target market is one of the reasons why many startups fail in a short time. Sometimes, what you feel is a great idea might not be welcomed by the market. Therefore, a good way out is to do thorough market research. This includes deciding the following:
- What is the problem?
- Does everyone face it?
- Who are the target customers?
- What is the market size?
- Whether any alternative solution available to the problem?
- Prepare the financials and business plan
It is one of the most critical factors, i.e., studying the financial feasibility of your idea. Studies say that only 80% of startups don’t survive after one year, and finance is a critical determining factor. Businesses are for profits. If you have a great business start-up idea, but it does not have the potential to generate profits, then your business won’t sustain for long.
- Deciding the constitution of your business
You need to establish your business legally. You need to decide on the constitution of your business. Creating a company is one of the most preferred options for startups. Apart from company startup, other constitutions include partnership firms and Limited Liability Partnership (LLP) firms. Whatever format you select, you need to incorporate your company formally.
- Raise investments
It’s time for execution! So start finding the investors for your business and get on the ground! As per Times Now, startups raised a record $ 24.1 billion in 2021. Having an investor’s backing provides a financial assurance and helps the founders in terms of strategy, team building and network.
In a Nutshell
You can follow the above steps to start a small business and grow it into something big. It’s time to start planning and get on the grounds. You also need to plan for your mission-critical and operational stuff like:
- Renting your office space
- Hiring talents
- Deciding the domain name
- Creating a website
- Setting up social media accounts
- Marketing your product.
The key to a successful startup is delivering a superior customer experience. For instance, startups face difficulties when it comes to accepting international payments from their customers. What’s the solution then?
The solution lies in an ideal payment gateway that easily facilitates domestic and international payments.
PayU offers 150+ payment modes to customers along with the acceptance of payments in international currencies. This has enabled startups to expand across borders.
Frequently Asked Questions
The following are some of the legal formalities for launching your startup:
Registration under the Shops and Establishment Act
Obtaining Regulatory Licences
Taxation and Labour Registrations GST registration, professional tax, provident fund, labour welfare fund etc.
For raising investments, you can go through either of the following methods:
Bootstrapping: Investing your own funds
Venture capital: Approaching a venture capital firm
Angel investors: Approaching individuals you are keen on investing in startups
Bank finance: Raise finance from banks or financial institutions
Following shall be included in the business plan:
Creating an investment plan
How much capital do you need
A projection of income and expenses
Your entire business plan lays down your company overview, products and services to be offered, business strategy, sales and marketing plan, target customers, expansion plans, etc.