How Should I Plan My Start-Up?

Planning for the startup does not have to be overwhelming. With the right guidance, one can have complete clarity of situation and know the right direction to proceed in.

A start-up is quite similar to growing a plant. First of all, you have to sow the seeds, offer them the optimal nurturing conditions, and take good care. Finally, you can reap the yield of your hard work. But the question here is, how would you manage all these things in India?

Indeed, India is not the first nation to propagate start-ups. But it is undoubtedly offering favorable conditions for the growth and development of a start-up. With this in mind, let's delve deeper into the scenario of planning a start-up.

Understanding the Basics

According to the reports of Indian Start-up Governance, a start-up is a foundation that is not more than seven years old with an annual turnover of less than 250 million INR. Your start-up has to be registered with the concerned authorities of India.

It is evident that behind every start-up, there is a tale of immense trials and tribulations. It is the story of people who are motivated and inspired to bring about a positive change in society. Every start-up founder has a deep connection with their ideology. They constantly work on this idea and give it the shape of valuable products or services. It personifies the efforts of young entrepreneurs by every means.

Do you know where the concept of start-up came from? The first start-up of our country was established in Silicon Valley, but it isn't easy to pinpoint the year. It reaches back to 1976 as the word found a place in an article published in Forbes magazine.

The Business Idea

The key to the success of your business is based on how unique your business idea is. For instance, it was the unique business idea of Dhiru Bhai Ambani which helped him to establish a company whose present value is in the multi-millions.

What demarcates a brilliant idea from an ordinary one is that it deals with a universal problem. You should understand the issues that people around you are struggling with. You must work on it and try to find a solution through your product and services.

It's true that in a country like India, the number of problems is never-ending. But you have to look for something that interests you. A business is not just about making money: your passion and interest are equally crucial for driving home success.

Your next strategy should be to find an innovative solution, and for this, you must conduct thorough research about the various solutions available. To stand out from the crowd, you must give a better solution.

Are Your Products and Services Necessary?

Setting up the start-up is not everything: proper planning constitutes the foundation of your business. Ask yourself whether your products and services are essential for the market. If it is not necessary, it may bring about an irreparable loss for you.

Last but not least, you should do something that you love by heart. Over the years, many people have established a start-up but could not run it for long due to a lack of passion and dedication.

Thorough Market Research

Your next task is to undergo all the necessary measures to analyze the market around you. For this, you must remember some key aspects:

  • Create a short blueprint of the product that you are willing to launch. It should contain the features, usage, advantages, and most importantly, your target group.
  • Then research for similar items to get an idea about the level of competition you are likely to face. It would be best to cross-check every minute detail of those products to comprehend the similarities and dissimilarities.
  •  If you are searching online, then you can also check the reviews and testimonials to know about the downside of the product. This will give you areas to improve.

Communication With the Target Audience

The most productive part of your business planning is interaction with your target consumers. This will help you understand their point of view. Several online business forums showcase consumer issues regarding various products and services.

You can also conduct independent online surveys to understand your target groups' expectations about your product. You can also exploit the strength of various social media platforms by collecting reviews and ratings of your niche.

It is important to note that there is no one-size-fits-all idea in the market, which makes trial and error as the only plausible strategy. Some of the greatest entrepreneurs today started with a budding start-up and faced a lot of hostilities and failures to reach where they are today.

Laying out a Business Plan

Another indispensable part of your start-up is a properly laid-out business plan. It is a written document outlining all the critical aspects of the business, such as goals, strategies, time frame, finances, marketing, and profit and loss.

It gives a general overview of your new business and contains its legal structure, industry, location, and many more. It helps in understanding how you have planned to rise above your competitors. The business plan is an essential document for your future business goals and endeavors. Above all, an effective business plan is your way to secure financial assistance for establishing the business.

Applying for Funding

Once you have decided what products or services you want to launch, your subsequent work is to build an MVP or Minimum Viable Product. MVP refers to the fundamental structure of the product, which is built easily without incurring much cost. This validates whether or not the public is interested in paying for the product.

Since MVPs are a basic structure, they are easy to develop and don't involve much capital investment. This helps you see whether it is working fine in the market so that you can continue with its production or shut it off for something more acceptable.

The most suitable time for raising the capital for your start-up is when you have a clear plan of action that you want to materialize. You should know what you want to do with the money and explain it to the fundraising concerns. This will help them determine whether or not they are convinced to invest in your start-up.

Due to the onset of lockdowns, the restrictions imposed have exerted a terrible impact on various sectors, including the aviation, tourism, and hospitality industries. Our government is also contemplating a stimulus package to provide support to these drooping industries. The Finance Ministry is preparing proposals to support SMEs and other businesses that have been greatly troubled in the COVID-19 pandemic.

The Finance Ministry is also offering tax relaxations for cash management and the removal of tax restrictions. This will allow various departments can carry out their capital expenses which, in turn, will boost the Indian economy.

Prepare for Seeking Investment

In many cases, start-ups are up-and-coming, but novice entrepreneurs have trouble arranging for meetings and convincing the investors. Good preparation is crucial before you meet the investors. Here are a few pro tips to consider:

  • Fast results: When you try to establish your business, you will be a consumer for getting money. On the flip side, you also require customers for alluring investors. If you are a new entrepreneur, some traction, in the beginning, can get your investments on good terms.
  • Be armed with co-founders: According to experts, when you approach investors, you are convincing them with your products or services and the strength of your team.
  • Pitch an ROI: Although investors may trust your vision, their investment is a means of income for them. Any investor would be interested in earning a handsome return from their investment in your business. So you must be able to highlight how your investors are going to benefit from your company.

Conclusion

The Government of India is continuously putting effort into improving the socio-economic conditions of the rural and semi-rural areas of the nation. With 56 percent of the population thriving in rural areas, both public and private sectors are contriving measures for encouraging innovation and entrepreneurship in the rural areas.