Small business is the organization established by the owner, having a good and unique idea and implement the idea by collecting the required resources. The success of the small business can be achieved if the business owner is implementing all the functions or operations with high professional ethics. Anyone can start the business, who has good idea and knows about the different parameters of business. The written document containing the idea and parameters of business called the Business plan. Which will provide the complete understanding about financials, marketing, personnel’s and launch of the business. The process to start a new small business is as follows:
Design the basics of business: The basics of business includes following concepts:
- Determine the goals: firstly, the business owner requires to determine the objectives, he wants to achieve by establishing the business. Such as financial independence, steady income from the small and sustainable business or higher growth by expanding or diversifying the small business.
- Choose an idea: After determining the objectives, it is required to choose the idea which can provide success in achieving the determined objectives. The idea can be of producing certain product or providing services needed by the public of potential customers.
- Choose the name for business: Name of the business plays important role in the marketing and development of the business. The name must be chosen carefully as it has not been used by any other business and easy to pronounce, simple and easily memorable.
- Choose partner or team: The business is not the action of a single person. It is the shared responsibility to work together towards common goals. Therefore, the owner must select the team or partner who can fill the required gap in the required skills and knowledge of the company.
Write a business plan: Business plan is the written document which should be consists of following elements of the business:
- Write up the description of business: The business description will state the specific information related to the business. Whether it is corporation, LLC or sole proprietorship and in which operations business is dealing the specific product or services. The description of business will also describe the features of products or services provided and its significance for the customers and society.
- Operational plan: The operational planning of business will provide the information about the operations performed by the business to develop the product or service from the collection of raw material, manufacturing process, assembling of products, packaging, warehousing to the delivery of products. How the business will perform all such activities? The information about all such activities constitutes the operational planning of the business.
- Marketing plan: After deciding the operations of the business, business has to decide how will they sell the produced products. Marketing plays important role to reach the customers of business. It is the major activity which is started well before starting any other activity. Starting from Research in the market to the after sale services provided by the business constitutes the marketing plan of the business.
- Financial plan: finances are the most important consideration for the business. All the operations of the business require finance. The financial planning of business will provide the information about the sources of finance, areas to utilize and projected profitability and cash flow generated by the business and how will they utilize or spend such profits or cash.
- Executive summary: The executive summary of the business describes all the parts and operations of business in summary form starting from the history, need of business, collection of resources and its utilization and anything else which is important for the business and drive it to the winning position.
Implementation and development of business:
This is the main part of the business development, in which all plans formulated in the previous facets are implemented. The resources are converted into finished goods. The company must implement all planned activities in such a way that it optimally and economically achieves the defined goals.
- Manage finances: The business is required to manage their finances very critically in the starting face of the business development. Procuring the startup cost to acquire the supplies or raw material for the production. Business can acquire funds from their own such as savings or raise through loans. The startup cost is easy to acquire but to manage the funds is difficult. Thus, the business must have check over their running cost and keep it in line with the operations of the business. The availability of funds must be more than the minimum funds required to meet contingencies as the business environment is very dynamic in nature.
- Maintain the legal aspect of business: Business following the legal provisions in their business will have more efficiency in their performance. Rules and regulations followed by business must be according to the type or business. Thus, the legal authorities have formulated different provisions for corporations, LLP or sole proprietorship thus have to implement accordingly.
- Launch the business: It is the time to launch the business, before the official notification, business must ensure that all the legal provisions have been followed, such as registration of business, secured the place of business and the appropriate quantity of products produced to make the suitable supply with the proper marketing practices.
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