Starting a business is one of the riskiest things you do as a professional. A lot of people dream of being their boss at the head of a business concern or company. From small scale shops to innovative startups, all businesses need smart planning, efficient management, and an eye for market changes. Only when you combine these factors can you really convert yours entrepreneurial dreams into actual business volume and profit. If you are planning to start a new venture in 2021, then here is the definitive guide establishing a strong business process:
7 Key Steps to Starting a New Business in 2021
1. Surveying the Market
Before you can even think about what kind of business you should invest in, you need to look into the market. Whether you want to invest in India or overseas, you must have a good market report which covers all key aspects of any industry. So, taking an example of starting a food and beverage business, which is very popular right now, you need to know certain things. These include market scope, growth potential, market capture by big businesses, potential competitors in your niche, average cost of a business establishment, etc. Once you have acquired this data, you can then start distilling the numbers into a plan. Ideally, if you do not have business management expertise, this is the time to take help from a management professional. They will also help you develop your plan in a practical, and efficient way.
2. Making a Plan
Making a business plan sounds very exciting, and it is. However, you also need a great deal of sober thinking as well as market experience to make things really convert from paper to reality. For this, you will need to first develop a business model. This is going to help you understand how your business can operate with any degree of success. Ideally, you should take up case studies from previous businesses in your domain to substantiate your working model. Again, taking an FNB example, if you open a restaurant at X location at a high cost, then you can get your ideal business volume. But if you open your restaurant at Y location with a relatively low cost, but use delivery apps for added business volume, then it can help you save your overall capital investment. Your margins must consider these factors in the business plan before you can move to the next step.
3. Gathering Funding
Sources are very important for starting a business. They impact how much fixed and working capital you are going to have. Ideally, you should keep a healthy margin over your fixed capital in your working capital. If you made a good business plan, you would know how much working capital investment you will need. The best plans always assume a 30% increase over your ideal working capital costs. Further, you also need to keep capital injection options at hand for both positive and negative scenarios. So, if your FnB business grows fast, which is often the case at the start with good businesses, you do not want to slow the pace down because you lack funds. So, keeping in mind loan options from banking institution and other financial sources are a good idea. Be sure you can keep your credit line clean from both company and personal accounts to allow for smooth cash inflow when needed.
4. Deciding the Process
The business process and cycle is all important for ensuring success down the road. What kind of a business process suits your enterprise best? That is a matter of industry and product type. So, if you are investing in a restaurant, then you need to have a running tally of your daily resource use. However, if you were investing in a business which has a larger operational cycle, then you would need to adjust your process accordingly. So, the ideal way to work a business process is to utilize the available market data and determine how much time it will make for your business to show returns on investment. This will help you clear any pending external dues, and also enable a well-defined payroll management process for the next step. Just be sure to keep alternative process plans at hand in case your first choice does not work.
5. Hiring Personnel
For the majority of businesses, hiring skilled professionals for all types of jobs is a key consideration. You need professional adept persons operating at different parts of your business to really make things work. Obviously, hiring a professional to manage the employees is the most important. However, you should not rely on them alone. Individual involvement and resulting motivation is a key factor for job satisfaction, and business success. Using a direct interpersonal approach work on both clients and employees. Even if you are investing in a delivery-only restaurant, having direct interactions with managerial staff will develop a strong working relationship. So. When you have any problems or need their counsel on potential business expansion options, you can use their daily business experience to plan better. Similarly, planning for employee payment contingency along with employment benefits will add to worker loyalty, and overall performance.
6. Developing Margins
Understanding business margins in the broad industry and will be a crucial part of your weekly business working. Although you may want to look at the overall profits at the macro level, you must keep a clear understanding of margins of inflow and outflow at the micro level as well. For most businesses, this is best done per week when companies can estimate the average working process efficiency. This is best for more dynamic business which has a more varied business profit margin. You must also balance between sales volume and profit derived. For restaurants, for example, working a new trend on social media can net a big margin of profit if done right. Further, using events like holidays or special cultural fêtes to promote and make bigger sales volumes can be a great idea. If these are worked into the general company name and brand development process, then your profit margins will become more rewarding as well as tenable.
7. Accounting and Taxes
Accounting is the backbone of a business from a financial standpoint. So, if you do not have a plan for managing your accounts, you should make one now. These days, there are many options available. You can go by a specialized accounting app but you can also manage some of these bookkeeping needs yourself. In both cases, this is mostly only possible when your business is starting off. Before long, you will need an accountant to handle business process record-keeping for you. This daily transaction record is immensely important is putting it is off to save some money is not recommended. Plus, it will be indispensable when you need to make a business audit at the end of the financial year. Putting aside money for this or at least securing financial audit services right from the start will help ensure this crucial process is not handled inefficiently.
How Should you plan to Start Your Own Business?
While the prospect of handling a business by yourself are very exciting, the sheer investment, and daily running effort it needs is immense. One of the best alternatives to investing in a startup business is to go for franchises. The Rolling Plate is one of India’s most profitable and fastest-growing franchises in the world. With 12 brands under its cloud-kitchen FOCO-model business, it offers high ROI investment opportunities to investors. You can simply invest here instead of bearing the risk of running an independent business from the ground up. Contact us at TRP now, and find the best business franchise investment opportunities right now!