Whenever we hear about entrepreneurs, Freedom, courage, and passion are the terms that come to our mind.
To start your own business, you can get inspired by many things. Maybe you are passionate about something and it's been your dream since childhood. Perhaps you don't want to work under someone and wish to be your own boss. Maybe you want to do something different and launch a unique product or service for potential customers.
The reason could be anything, This article will guide you through everything from start to end that you need to know and the things required to start your own business or a startup and to become an entrepreneur.
The first step to starting your business or start-up is that you must know what exactly you wish to do. What's your business idea? Many people think that I need to think of an idea that no one has ever thought of. But according to me, it's wrong thinking.
There are two reasons for this, first is that there's very fewer chance of thinking of such an idea that no one has ever thought about it before. Because there are many people in the country who are doing business or trying to establish business with different ideas hence there's very less chance of it and the second and more important reason why you shouldn't do this is that to start a business when there is no customer base established, no source of revenue and no one has done trial and error free experiment that to do this business, such kind of revenue comes or problems arise, then it's a very new thing and a very risky work.
We would recommend you not think of an idea that no one has ever thought of in fact you have to think that what you yourself like to do. Here we would recommend you focus on two things first, what's your passion, your interest, and what you like to do. How can you give value to people from your business and how can you benefit people so that they will give you money in return.
When these two things are clear, you can see which business already exists that coincides with these two things and then study what kind of such businesses are already in the market and how are they running. For example, imagine if you love adventure sports and trips like river rafting that's the first thing then the second thing is how can you give benefits to people then here you can start an adventure sports company
If this satisfies you then look at what all kind of adventure sports and trips company already exists in your country. How they function, study them, call and ask them about their business and study their business model.
The next step after this is to create a unique business plan. Suppose you are starting your business tomorrow, then prepare the budget report for the full year from tomorrow to the year's end how much money will you need to start the business, how much capital and investment will be required, and in the whole year how much will be the expenses and what will be the profit that you will gain and where will you get the required capital and money that you will need.
Will you lend funds from your friends, family, and relatives or take a loan from the bank. Start a business where you don't need to take a loan from the bank or any third person. Start a business where you will personally be able to afford the initial investment because if you get into banks and your business fails then you will have to face a big loss and lots of problems. So think of a business where you are able to invest yourself and you have the capital or your family and friends are ready to give you that amount. We suggest this for the initial stage, once your business is established then you can think of taking a loan to take it to the upper level. This will be a risk that can be minimized.
You must make a detailed, unique and applicable business plan so that the investors will get convinced that this business will surely work and if we invest in this then we won't incur any loss and will gain only profit from the business. Now that you have made your one-year business plan then we can move on to the next step.
The next step is to register your business with the Government. According to the type of your business, there are different ways to register these different ways are called business entities. We will not be able to tell you all but will tell you the main ways. The first, oldest, and easiest way to register your business is, "sole proprietorship". Proprietor ship is a way to register your business where the business owner is you whatever will be the profit or loss of the business will be your own profit or loss so in a way you are personally liable for everything that's happening with the business. Apply for proprietorship only if your company is on a small scale and not more than 4 people are employed because it becomes very risky if it's on a large scale. Imagine your company is of millions and you have incurred a loss then it will be your own loss of millions.
You would not want this hence in this case you should not do proprietorship and if you want to keep your profit and loss different from the profit and loss of the company and want to keep separate legal entities, in such case, there are different ways to register so there's another way called OPC, One person company. Here you are not personally liable if there's something happening to the company so here they can't come to your house and ask you to leave your house, or car to repay against the failure of your company.
As the last step friends, I would like to tell you that there are a few things that a business has to do every year. It is Yearly Mandatory compliance, the first thing is Income Tax Returns, every business has to file an income tax return at the end of the year.
The second thing is Accounting and which you need to do and I would say that you must do it with care. It's a balance sheet where all your profit, loss, money received, etc is done on a balance sheet. You can hire an accountant for this or if your company is small then you can do it yourself. If you are registered for GST then you have to file GST, It has monthly or quarterly compliance.
Now you are ready to become an entrepreneur and start your own business. There are some tips to be followed by you to make your startup or business a successful business.
1. Always think about how can you give value to the customers. All businesses give value and if you are going to focus on the value then your business will run well and somewhere we feel value can be given only when you enjoy working.
2. Only do such business where your interest lies and you enjoy working.
3. Lastly, there's no point in doing a business that runs in an unsustainable way which leads to destruction.
I'll give you an example of one business here, where a person was making a coal mine on the great reef and affecting the natural resources there was no benefit of it, to say he said that it will generate employment and generate more electricity but due to such destruction who will like his company?
No one will respect such person, so stay away from such business.
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