Strategy to Start Business
Entrepreneurship is very rewarding. People are chasing their passion with making money.In the race of entrepreneurship there are two types of entrepreneurs 1. Experienced entrepreneur 2. First-timers
Experience entrepreneurs have a good understanding of starting a business but most of the time first-time entrepreneurs face problems to zero down on the right business. Studies suggest that the success of the business is all about the right timing, right product with the right channel.
There are two options to start any business
1.Sell what customer want– If customers are demanding cooked food then any businessman who provides the cooked food with get the customers easily and the success of the business is largely depends on getting customers.
2.Search customer for what you are selling – Someone is selling raw food and customers are demanding cooked food then selling raw food becomes difficult and business will gradually become unprofitable.
Research indicate that around less than 8 % entrepreneur goes for first option and success rate in the first option is more than 60%. In a study, 10 successful entrepreneurs admitted that knowing how to start a business and planning to start a business with low investment is the key to their success.
I suggest going for the first option-do market research for what customers are willing to purchase. One of my friends started his business after realizing that people are looking for fresh vegetables at their doorstep in the morning. Now is going for series A funding.
Sometimes best business with low investment can be good for someone but not for you, in that situation your market research can decide the best business for you.
After Market research prepare a robust business plan which covers
2.Your target customer
3.Your distribution channel
4.Your profitability plan
After preparing the business plan do the pilot and prepare a robust database based on pilot learning/
Now modify your business plan as per pilot learning and approach to the bank. Normally bankers are well equipped for business analysis skills as per ROI and sustainability assessment.
If bankers are willing to put money on your venture then you can start with your own money.
After successfully starting a business and getting the first 100 customers you can go for scaling up your business. Scaling up of business should largely depends upon
Once your business becomes cash flow positive then the sky is the limit. Try to build your business cash positive from day one.
“Things work out best for those who make the best of how things work out.” —John Wooden
To start any business, prepare yourself like a world class entrepreneur.
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