It is quite acceptable that starting a business is not hard. But here the problem is that it isn’t very hard to start a business, but it is very hard as well as tiresome to make it work or to run it to make a profit from it. This is mostly because a large number of new businesses or start-ups fail as they cannot handle the pressure or the mediocrity of competition in this modern world. Apart from this many start-ups also does hard work and get all things right that is required for a business and grow into profitable ones. Most of the entrepreneurs who start a business describe that starting a new business is like pulling teeth. Most of the time it feels like taking one step forward and two steps backward. This is the situation where they all feel stranded and feel like giving up. Get more at RICE ultimate prioritization framework.
Running a business that is already existing as well as making a good amount of profit is also very hard work. A person should always have some new business ideas to pull themselves forward.
Read these six tips that a person needs to stay away from while starting a business
1: The company should have a personality of its own
At the starting of the company, a person should always give his/her company a new personality which would be a distinct image. This would help the company to differentiate itself from all the other startups that are present in the marketplace who are hungry to grab attention from the people. After giving an introduction and a personality to the brand, a company can also get an MSME loan which would help it in the initial days to fulfil the requirement of capital.
A company has to make its brand memorable. This would create a unique selling factor. The branding should be in such a way that the customers would feel some similarity or connection with the brand. A company should always try to create an affinity with its customer base. A strong brand always helps its customers to perceive that their company is the best and they are in the right hands and are getting world-class products.
The person starting this type of business should always focus on his/her target customer. As we all know every product has a specific customer base and a product is not for everyone. After starting the business, the entrepreneur should do active research to know the customers are belonging to which age group or ethnicity which maybe sex or religion. After knowing their potential customers, they should work on what their customers want and what kind of changes they have to do to their product.
2: The new business should not have doubt or uncertainty
If the owner of a business doesn’t have a plan for starting a new business, it will get messy as well as tiresome. There will be a lot of distractions to deal with if there is no proper planning as well as they will be not sure about the things on what they are working upon. Every new step or room would be intimidating. Here, the owner of the company has to take some time to figure out the steps that they need to take to start a business. Here they should get a business mentor or someone who has a lot of experience in working in this kind of situation as well as spaces. Here a company should also take a business loan after getting the perfect road map to expand the business.
3: They should be able to clear Roadblocks
Even though a business is well planned and has a good amount of money with them, there are a large number of things or ways in which a business decision can go wrong. Everyone should remember that starting as well as running a successful business is all about finding and solving the problems that can arise with it. It will always seem that the problems are over when one is cleared, but another problem comes with it. It is a never-ending process. The most important part here is determining which problems are important to solve and which ones are not and can be delayed.
4: They should always have a good business plan
An entrepreneur should always have a well-thought as well as a planned business roadmap. This is very important when he/she wants to get a business loan or an MSME registration from a bank. They should always have clear short and long term goals in their mind. They should always be able to say what they want to do with the amount they are taking a loan and why the funding is necessary to establish and scale their business. A person taking a loan should always be able to give these types of answers. They should be also honest and should be clear about their business.
5: The business should have an adequate amount of Cash Flow
The person taking a loan should always be candid and upfront about their financial condition. They should always share minute details about any of the current as well as prior issues that they are facing and might have faced earlier. In this process of taking a business loan, an entrepreneur taking it should be crystal clear about it. This does not harm getting a business loan, rather it will show the lender or the bank trust trustworthiness as well as a clear idea about the business journey.
6: While taking a loan, they should give a clear cut plan to the lender
It should be clear that the total funding will not be provided by the lender or the bank. So a businessman or an entrepreneur should always have a lot of additional sources of money such as personal money or cash from any other sources such as loans. If the lender or bank sees that the business can also generate money can other sources without getting help from them, they can also lower the interest rate of the loan.