Why to start a small business or startup and how to be successful in it?

 We all have gone through the COVID-19 pandemic and we all have seen what recession is. So being independent or self-reliant is only the way out of any financial crisis.

What is business?

Earning the max out of your efforts can be called business.

People are misguided with a term like risk, loss, and failure. Let me clear one thing you won’t fail or face loss, People only connect it with money but what they don’t notice is you earn knowledge by doing practical instead of paying huge fees and learning from someone. Business let you unlock all your potential and help you to be more creative.

Money making on your own will and effort without others pressure is called business. There are many terms like this which we call a business.

Why to do business instead of a job?

 As I said at the top, you have no clue what can happen in the world that will lead you to lose the job. Job gives you a secure amount of money but it can’t secure you from other problems like recession, easily diversion of field and many more.

I would say why to take such a big risk in a job where you are managed by other and still don’t have surety that you will last. Instead, take the risk to sand on your own.

In business, you can have control to lead or guide your business, whereas in a job no matter how good you are you can’t do as you want. You must take permission and goodwill to proceed ahead.

You can be your own boss instead of working for others there is a famous quote regarding it “Love your job but don't love your company, because you may not know when your company stops loving you”.

So if you Love your job why to do it for others, do it for yourself and you can do it at your best if you have all the access and free to explore.

Don’t keep on running in a loop where you don’t have any destination.

Here are some key reasons why you start a business:

1) You will be following your passions.

2) You will achieve financial independence.

3) You will be in control of your schedule and your lifestyle.

4) Raise your earning potential.

5) There will be no Limitation for anything you can achieve how much you put your effort into it.

How to start a business?

Here are some steps how you can develop a business:

1) Write down your Business idea.

2) Make a test run to see the demand and supply of a particular thing, just like the Beta version.

3) Find a good short and sweet name that would be easy to speak. Make sure it should be unique.

4) Once you get the result of your beta version make a plan to grow and succeed in it.

5) Understand finance, do some research and study how money flows in any business.

6) Develop your service or product in such a way that you would get enough time to explore and understand the competition.

7) Pick a perfect business structure, which includes taxes location and people involved in it

8) Take care of all the regulations and licenses need to run business

9) Select your software system to run your accounting, marketing, ads and website for the online store.

10) See the workload, team size, packaging and shipping. Manage it in such a way that you will gain profit.

Then you’re good to launch your business.

Why does new business fail?

 

Approx. 20% fail in the very first year and 50% in the next five years only 30% makes success.

This happens because business is a game of well-knowledge risk taker but most of the people who get into it without any experience or knowledge face some loss and immediately quit.

Running out of your budget is the biggest risk in any business. People know how much to invest but are totally unaware of the revenue they are going to earn from it. Poorly planned marketing can be one of the biggest problems to face in any business.

There are a few key points for business failure:

1) Financing Hurdles

2) Inadequate Management

3) Ineffective Business Planning

4) Marketing Mishaps

5) Too much of debts

Let’s do case study related to small businesses?

 

Think we want to start a small business. Let’s say we want to start a sandwich stall,

1) We will see what time is good to start a business out of our daily schedule, people demand and location.

2) Once we know what time is peak time we will do a survey of the competition we are going to face in that particular area.

3) Now we know the peak times, we know who and how many competitions we are going to face. We will reach out to every competition business, and see the variety and prices so we could get facts and figures of market trends and SP (Sale price) of any product with the service provided alongside.

4) Now we know facts and figures of ongoing similar business we will look out for the raw material supply at a cheap rate to keep our CP (cost price) low as possible.

5) We got suppliers now we need to know the equipment we need for business and where we can get them.

6) We must search for a skilled employee who could work for us at a very less price.

7) We must clear all the legal paperwork and get the license needed like FASAI, Fire safety, etc.

8) Now we are familiar with all the costs we must do budgeting. Always keep 50% extra of the total amount.

9) Let’s start marketing the beta version or building hype and marketing to gather a crowd.

10) Start with social media marketing as it’s free and acts like wildfire.

11) Take the data of all kinds of marketing you have done and see the marketing funnel so you would know exactly how many people are genuinely interested in it.

12) We are good to launch our stall now by inviting everyone.

13) After a few weeks we will know the footfall.

14) Accordingly start reaching out of your borders and start a small website so you can get a bigger reach and start marinating hype.

15) Try to acquire more and more places from one stall so you can keep the cost low and raise the profit chart.

16) Once you get your desired profit and loyal customer start converting your employees into your manager and expand the business.

17) Let them handle the other stalls and meanwhile focus on diversification.

18) Diversification is very important if you want to stay in business so grab as much as you can from other fields as well and let them work for each other while you earn profit.

19) That’s how you can start a small business and grow into a large MNC.

20) And you are a successful Entrepreneur.

 

But to do all this and keep growing you must be familiar with the latest market trend and core knowledge of fields like marketing or finance or management or at least any one of these to keep growing.

 

In today’s modern world everything is getting digital so digital marketing can really help to enhance your performance and minus losses you will be facing. Eduvogue institute does it greatly, they help you to practice in a live world where you can learn practically without bearing any losses. They do teach SAP which is in demand nowadays in many companies as it handles all the commerce chain from production to end-user. Do check them out to enhance your skills and develop fast.