9 Must Do Things Before Starting A Business

By Author: ourbusinessladder
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Starting a business in India is a complex process though most states and Union Territories try to make it as easy as possible with entrepreneur-friendly policies. Whether you are an international entrepreneur setting up business in India for the first time or a native businessperson, you will be advised to contact a market research company in India to ensure that your products or services are well received. We recommend a market research company in India because they know its special requirements inside out and are able to provide advisory best suited for doing business in India.
As we said earlier, setting up a business in India can be complex because of the numerous states. Each state has its own laws and procedures that are difficult to understand. A market research company can make your setting up task much easier than trying it on your own.
Here are 9 must do things that every businessperson will need to do before putting the business setup process into action.
Explore the Market
Do a thorough market research on the product or services you wish to deliver to your clients and customers. Be careful ...
... about the demographics in which you propose to operate. For example a theory or presumption that holds good for a state in north India may not fit for a progressive state like Tamil Nadu where consumers are more sophisticated.
Plan your Taxes
Calculate your sales tax liabilities and consequences before deciding on the location for your business. Sales tax is primarily a state subject and it varies from state to state. Sometimes it is advantageous to have your warehouse in a different state and sell in another state. Though there is nothing like a tax heaven, tax planning for sales tax purposes can make or break your venture. Some states offer sales-tax holidays for limited years.
Central taxes like Income Tax can have a big effect on your venture’s profitability where again you need to plan your strategies. We recommend you to consult a market research company in India to make a full study on this and then decide the venue for your business. If you thrust focus of your business is on exports, we will recommend one of the many special economic zones in different states. Sometimes a state incentive can bring down your project cost by as much as 25%. Your market research consultant is the best person to advise you on this.
Successful Product Mix
Decide on the right product mix for your business. India is a diverse country in which preferences change every hundred kilometres. This means your business must understand and address specific issues relevant to a particular geography even within a state. This is particularly true if your business is consumer oriented like packaged food or clothing. Get a market research company to make a full study.
Strategize the Location
Decide on the right location for your business or factory. As a prudent businessman you will want to locate your warehouses close to consuming points. This will help you save on logistics. Some locations lack in proper transportation support and moving raw materials and finished goods out may pose problems. By locating your facilities at the right places, you can save substantially and become more competitive. This will be a big advantage to your business.
Tie Up for Finance Earliest
Talk to your bankers and all potential investor months ahead of launching your business. Money though is not a scarce commodity, a potential investor will not be too liberal with you. This is because you are start-up and he or she looks at the risk factors more than the profits you project. It takes a lot of time to be convincing in your arguments and you will need to do it in stages. We will strongly recommend that you approach an investor rather than a bank. Banks take longer time to decide on your requests and impose conditions that are difficult to meet; at least in the start-up stage.
Getting Professional Help
Seek professional help in advance. Do not keep this for another day because your business will have to meet expenses that long time to show results. Professionals can help you to write a business plan that is convincing and highlights your core competence. Professionals have vast experiences that you will want to put to good use. This will not only save you money but also a lot of time and energy. You can potentially cut corners and launch your business into action faster than otherwise.
Build a Network
Create a network that is action ready when you actually commence operations. Creating a network can be a debilitating task and consumes enormous time and energy. Networks help you to locate investor and create a channel for distributing your services and products. We will strongly recommend that you leverage the social media like Facebook for example.
Circulate Your Ideas
Distribute your ideas with people who have experience in your chosen line of activity. This is critical in the sense that they are able to give you valuable insight into your business. They will generally be able to pinpoint potential pitfalls and how you can avoid them.
Go By a Plan
Though this is the last of 10 must do things before launching a business, it should nevertheless be the first to start with. Write down your business ideas in paper and give it a professional touch by talking to a market research company in India. Ask the company to prepare an action plan that will stand the toughest of financial scrutiny.
When you have a business plan, you know in what direction you are moving and how much you are able to accomplish within a time frame. When you accomplish pre-start tasks, your venture will be able to move smoothly and avoid hiccups.