How to Start a Business From Scratch
Hello and welcome to this new journey of your life. I’m glad you are planning to start a business. Building a business requires too much of effort and extra energies.
But the outcome is often rewarding. So I’m happy that you have chosen such a way. Here we both will be exploring the bases of building a business from scratch.
So are you ready to build a business? Let’s analyse, evaluate and kick-start a new business journey. Here we go!
Here are the sequence steps to start a business from scratch:
-Jot down your ideas
-Self Assessment of Your Business Ideas
-Identify which resources required to start a business
-Start building your team
Jot down your ideas
You will definitely have business ideas in mind. Why not jot it together to find a clear picture.
-Start with a document and keep writing all the ideas you have in mind.
-Wire up your ideas and make it clearer and well understand.
Quickies: Keep your ideas as simple as you can. Avoid creating a complexity by merging your business with different domains. It is very dangerous to do that in a beginning stage.
-If your ideas are clearer, then move ahead by answering the three fundamental questions. These questions will make bases for your further business plans.
-How will you implement this idea?
-What steps can you take to transform your ideas into a big business?
-Are you able to meet the ups and downs for the coming years?
Try to identify the answers and move ahead. If you are unable to tackle the above smoothly, then find a clear picture.
Identify such plans which you are more confident, grounded and passionate.
Work for such ideas where you can stand tough and challenge everything which comes in your way.
Self Assessment of Your Business Ideas
So we have got a clear picture in our mind. But is our idea worth a sound business planning or not?
Let’s do a self-evaluation of our business idea. There are some of the critical factors we need to evaluate on our business idea:
-How much larger is the market segment?
-How much is the need gap?
(Need Gap is the difference between the demand and supply. A broader need gap will give more business growth opportunities)
-How much is the competition in your target market?
(Low Competition, Moderate Competition, High Competition, or Extensive Competition)
Market Analysis is the next big thing after finalising a business plan. We will do some important market analysis before moving to next phase.
SWOT Analysis consists of identifying the current market trends on four factors.
-S: Identify the strength of your plans
-W: Figure out the weakness of your business plan
-O: Trace out the opportunities under your business domain
-T: Identify threats which can damage your business like competitors.
PESTEL Analysis is a factor market analysis to identify the impact of business on these factors. According to this analysis, there are 6 factors which may impact businesses:
-P: Political decisions and policies related with business
-E: Economical Factors like production cost, wages, etc.
-S: Social factor like people buying habits, wealth, education, etc.
-T: Technological changes which have influence on business, and customers.
-E: Environment or Ecologic Factors like climate, weather, global pandemics like Coronavirus, etc.
-L: Legal factors include changes in business policies, laws, various taxes, etc.
Identify which resources required to start a business
So as we have analysed everything, now let us look at resources we need to start a business. As it’s the beginning phase so start with as minimum resources as possible.
Consider the important things to add in your list:
-Running Capital: Total capital required to manage recurring expenses
-Raw Materials: Identify what raw materials you need to establish your business
-Machinery Requirements: Identify the machines required to run your business operations
-Manpower Requirements: Analyse the total number of manpower required to manage your business smoothly.
-Property Requirements: Figure out the property requirements for your business. Manufacturing sector requires more area to manage its operations than service sector.
-Extra Expenses: Calculate other extra and miscellaneous expenses which do not fall in the above categories.
Start Building Your Team
We have already analysed the team requirements. So we can start building it using the different mediums.
Let me a share a best fit idea for building your team.
-Use 50:50 ratio: Hire 50% of the employees for important job roles. You can fulfil the next 50% with internship programs.
-This will allow new talents to grow under the leadership of you and your employees.
Don’t forget these new talents can be next leaders in your business.
-You can see our Academic Internship Program to hire best talents under your business domain.
We create exclusive syllabus keeping in mind the talent requirements as well as corporate needs. You can learn more about it here.
Use these top mediums to hire employees for your business:
Congratulations! We have now finished up the basics of starting of starting a business. You can take a new step to start your business journey. All the very best for it!
A management enthusiast, an avid reader and a traveller. The world is a beautiful place so I keep travelling, spending time between nature, on the riverside and gaining new experiences.