Five Simple steps to start a Business
To start a business is a unique experience/journey for everyone due to the market, customers, and individuals. There can be many ways anyone can set their priorities.
Here I am sharing the first five steps of first-generation entrepreneur Rajan, who build the business from scratch. Rajan (name changed on his request) belongs to a middle-class family and was living in a tier II city. Just after finishing graduation in 2016, he decides to start his own business. (I had interviewed the Rajan for my book )
- 1.To make up mind to start business-there was many thoughts that come into Rajan’s mind like to join job, to continue study or join the family profession. Later based on his discussion with well-wishers he decided to start his own business. Learning– To become focused is very important.
“The starting point of all achievement is desire.” —Napoleon Hill
- 2.What to do trading, service industry, or manufacturing – There was a lot of discussion among friends who were going on to choose the sector. Later I decided to start from service due to low investment, quick results, and understanding the customers in a better way. Learning– Choosing the right sector is key to success.
“You can do anything, but not everything.”
- 3.What product and whom to sell?– Rajan started brainstorming about the product and prospective clients. Later he did market research to find out the product and target customers. Learning-Research based Products and target customers will make success easy.
“Don’t find customers for your products, find products for your customers.” Seth Godin
- 4.Pilot & Business plan– After zero down on product and target customer, Rajan decided to do a pilot with his savings. Rajan developed the product and started marketing through social media and public places by distributing leaflets. Initial approx 100 customers Rajan got from offering 30 to 40 % discounts but he was able to cover the cost and earned some money for future growth. Based on that Rajan developed the business plan for 10X growth in the first year and 50X growth in 3 years. Learning-First 100 customers will make the business.
“The best business plans are straightforward documents that spell out the when, who, what,
where, why, and how much.” Paula Nelson
- 5.Arranging the loan and team -After three months journey, Rajan builds the first 100 happy customers community, two successful products, and a profitable track record with the business plan. Now he started approaching banks, VCs, and friends for investing in his business. Within a month one friend joined him with 20% of the required capital and one bank has given them a loan to scale up the business. Learning-Happy customers attract the necessary resources like a magnet.
In less than three years period, they paid the bank loan successfully, and on the request of another partner, Rajan sold the whole business to his friend. Learning- Partnership on clear terms and will to move forward is key for entrepreneurship.
“Successful entrepreneurs are givers and not takers of positive energy.”
Read book “How to Build Profitable startup”https://amzn.to/3dYWPUX