Category: Startup

Categories
Startup Strategy

Startups From Home: 5 Business Ideas to Start From Home Amid COVID-19

Startup (Representational Image Only, Photo Credits: NeedPix.com)

Mumbai, August 12: The entire world is reeling under the effect of coronavirus, from businesses being shut, factories non-operational, to employees being handed over pink slips. The pandemic has bludgeoned economies worldwide, and the smallest of businesses have felt the heat. In a scenario, when thousands have gone jobless, we take a look at five business ideas which you can start from the comfort of your own home amid the coronavirus pandemic.

The best part is that these business ideas will require a minimum to no investments. So if you are wondering to start a business from home, here are a few ideas which you can consider.

Sale of Masks, Gloves, PPE

The demand for masks has skyrocketed after countries across the world said that it is an important preventive measure to curb the spread of COVID-19. In India too, all the states have imposed a strict fine in order to ensure that people are abiding by the rule. From being sold as a fashion accessory to a life-saving piece of safety equipment, there is a huge demand for selling masks.

In such a scenario, there is an opportunity, if you want to start a business dealing with the sale of masks, gloves, PPE suits or hand sanitizers.

Remote Tutor

As a result of the coronavirus pandemic, when schools are shut, students are facing the problem to complete their syllabus and struggling with doubts. Here lies a great opportunity for home tutors who can continue to teach their students from home via online classes. One just needs a good internet connection to start with online teaching.

Fitness Trainer

The pandemic has taken a toll on our lives, with additional workload both at the office and at home, people are being stressed. On top of it, fitness centres at several places continue to remain closed. If you are a fitness trainer, then you can start your online classes, be it yoga, power yoga or meditation from the convenience of your home.

Cooking Classes

There has been a huge demand for online cooking classes ever since the lockdown. Your friends, family members, office colleagues have all been experimenting with different dishes and have been putting it up on social media. Amid the coronavirus induced lockdown when people are still hesitating to go to restaurants, they have been making most of the dishes on their own. From experimenting with new cuisines to trying out new ingredients, there is a huge demand among the people to learn quick and healthy dishes.

If you have a knack in cooking or an expert in this area, there is a huge opportunity for you to start with your online cooking classes.

Freelance Writing and Copyrighting

You can take up freelance writing and copyrighting projects. Initially, the payment can be low, but once you build your own portfolio of work, you can start demanding a premium for your service.

So if you want to start something on your own, don’t delay your plan. These are some business ideas which you can start from the comfort and the convenience of your own home today amid the coronavirus pandemic.

 

Categories
Process & Business Expansion Sales Startup

Steps Taken by Modi Government to Give Relief to MSMEs, to Accelerate the Wheel of Economy That Slowed Down Due to Lockdown

Business in India | Representational Image Only (Photo Credits: Pexels)

The government has said that the recent steps that it has taken are aimed at giving relief to MSMEs which will in turn accelerate the wheel of economy in India. Union Minister for Micro, Small and Medium Enterprises Nitin Gadkari, during a webinar said that the changing the definition of MSMEs, Scheme of Fund of Funds, Champions portal, extended credits to MSMEs will certainly accelerate the wheels of economy which had slowed down due to lockdown in the wake of the coronavirus pandemic.

During his address, Gadkari informed that loans of about Rs 1,20,000 crore have been disbursed to MSMEs out of Rs 3 lakh crore announced in the relief package. Discussing about the problem of delayed payments, he said that instructions have been given to all Ministries, Departments and PSUs to clear pending bills of MSMEs within 45 days. He also urged all Chief Ministers to issue directions for clearing MSME dues by their State/UT Ministries/Deptts and PSUs on priority. The Minister added that we are closely monitoring the complaints lodged at SAMADHAN Portal also.

Gadkari said this while addressing a Virtual MSME Conclave organized by FICCI Karnataka State Council. The Minister further appealed to all the stakeholders to do away with all kinds of fear and negativity and assured that government is doing everything possible to make the country a super economic power. The Minister informed the participants of the webinar that we are working on the idea of a Land Bank and Social Micro Finance Institution which will be very helpful for entrepreneurs and persons who want to run small shops and businesses.

While discussing Atmanirbhar Bharat Abhiyan as envisaged by Prime Minister Narendra Modi, Gadkari said that handloom, handicrafts, khadi industries and agro-based industries should be encouraged especially in 115 aspirational districts in India. He said planning will be taken up for special policies for agricultural, rural and tribal sector because they have huge potential of creating employment.

Categories
Finance Process & Business Expansion Startup Strategy

Innovative Ideas for Entrepreneurs to Keep Restaurant Startups Rolling Amid COVID-19 Pandemic

Apart from unique challenges, the COVID-19 brought fresh opportunities for India in the hospitality and allied sectors. Here are few ideas which entrepreneurs in restaurant startups can try to keep their businesses rolling.
Innovative Ideas for Businesses

Mumbai, August 11: With almost five months out of business due to the coronavirus lockdown, one of the worst-hit sectors in India is the food and restaurant businesses. While many startups opted for innovative ideas, others failed to survive the lockdown. India’s lockdown against COVID-19 is considered to be among the toughest, however, relief measures given by the central government did keep the hope alive.

Apart from unique challenges, the COVID-19 pandemic brought fresh opportunities for India in the hospitality and allied sectors. Many startups succumbed, but few thrive as they looked for a window to keep their businesses running. Use of social networking and personal relations still make those few reaping profits in adverse market conditions.

Here Are Some Ideas Which Helped Small Restaurant Businesses Survive:

1) Use of Social Media:

During the lockdown, the biggest challenge for a restaurant business is to connect with their customers. Social media became a boon for all those startups who remained in contact with their valued customers. Be it Facebook, Whatsapp, Twitter, Gmail or Instagram, these social media apps helped the small entrepreneurs to keep their businesses running.

Apart from providing the latest information regarding the renovations in restaurants to take away services, people came to know it from social media only — if their favourite dining places are open or closed. Also, updating the precautionary measures taken by the firm to keep its customers safe, did make a lot of difference.

2) Adaptations and Collaborations:

Adaptation to norms and guidelines issued by the administration did play a great part for startups. For example, Chaayos — which started in 2012 — joined hands with another influencer marketing platform called Pulpkey. Apart from serving the ‘signature “Meri Wali Chai“, they also decided to create awareness among people. For this, they hired renowned content creators and influencers and started sharing quality content straight to the customers’ mobiles via social media. Hence, Chaayos is still serving the ‘chai drinking nation’ with the same zeal and love.

3) Takeaway and Door-Step Delivery With COVID-19 Protection:

Foodies anywhere are foodies. Be it rain, dawn, dusk or midnight, foodies will order food online. However, the COVID-19 stopped the wheels of food-delivery guys for some time. Business took a hit and many wrapped up their shops.

With the Unlock guidelines issued, the wheels started to roll and food-delivery was again back on track. This time, the food delivery system was a little different. First, the delivery guys maintained a 6-feet distance and secondly hygiene maintenance was observed very strictly. The result was small entrepreneurs in the hotel business managed to survive. Special mentions to food warriors of Swiggy, Uber Eats and Zomato.

4) Marginal Charge for Hygiene:

This is something that customers in India don’t like. Since lockdown is in place and sit-in dining is almost restricted in most places, charging extra for take-away to door-step deliveries — by asking customers to pay for hygiene practices — may take not be a welcome move.

However, making valuable customers understand the importance of hygiene practices and costs associated with it, the gesture might help. These days customers are well aware of the dangers of COVID-19 and are willing to pay extra to cleanliness and hygiene. So looking at the broader prospect, the idea of charging a marginal fee for cleanliness may help entrepreneurs to keep their business functioning.

5) Financial Management and Revenue Generation:

Among all the other factors, the utmost requirement is to keep the startup moving forward with proper financial management skills. Due to the COVID-19 revenues of almost all food-allied entrepreneurs declined, some even bailed-out too. But few are still sustaining and may sustain for long as they have ample revenues for it.

For those, whose revenues are crippling and businesses are on the verge of shutting down, one of the easiest ways is to reach out to banks — which provides loans under MSME schemes at nominal interest rates and easy instalments. Reaching out for funds to family members and friends is another good idea.

6) Patience and Perseverance:

Difficulties and challenges are part of startups. COVID-19 may have seized the business ideas and expansion, but what’s important is entrepreneurs shall not lose hope and patience. They should keep inventing innovating ideas and persevere to reach their goals. Things may take a little time, but with calculative risks and patience, the flower of success will bloom.

Categories
Startup

How to Start a Packaging Business in India

स्टार्टअप
स्टार्टअप

STARTUP TIPS FOR BEGINNERS IN THE PACKAGING BUSINESS
 

A new business faces many challenges in its inception stage. Not only is it important to offer a quality product and service, but also create a distinct brand that appeals to the customer in the market. 

It is extremely critical to decide on how you want to present your product. The right product packaging business plan is not only responsible for establishing the brand and product, but it is also important for its overall success in the market. If you want to give your brand an exclusive image, packaging can make all the difference. Packaging that is designed smartly not only lends an attractive face for your brand but is also an integral part of the marketing plan as well. 

Let’s discuss some brilliant tips that you should keep in mind when it comes to a packaging business start-up:-
 

1. Consider a multiple packaging business plan
 

  • According to your product offering, finalize your packaging requirements. Go through a thorough research to get an insight into what kind of packaging is best for your product.
  • Spend adequate time on research and closely study the various packaging options available. Packaging should guarantee that the chances of the product getting damaged are close to nil. Should be easy to handle and leave an unforgettable impression on the minds of the consumer. 

2. Cost-effective packaging solution

  • You cannot get carried away while deciding the packaging design for your product at the start of your business.
  • You need to focus on a visually appealing packaging, by keeping the expense of the packaging business plan at bay.
  • Make a strategy on how you want your brand and product to be portrayed but at the same time make sure it does not leave a dent in your pocket.
  • You can opt for a bulk or online option which can be cost-effective.

3. Pack small
 

  • When it comes to saving on the packaging cost, judicious use is the key.
  • Opting for a light packaging ensures to cut down on unnecessary costs. Take care of the volumetric weight of the packaging as well.

4. Inventory management

  • Inventory management is crucial for a new business owner. Sometimes stocking large quantities can lead to slashing down of the prices.
  • According to your business requirements, you must analyze the stocking options in concurrence. Inventory management is a cost-effective and beneficial process for a business owner if managed smartly.

5. Create a purposeful packaging business plan

  • If you want to create a perception about your brand and product in the mind of your customers, build a purposeful packaging for your product
  • Make sure you convey relevant information about your product and brand with your packaging if you are a starting-up.
  • If you want your customers to recognize your brand and product in the long run, then the company ethos and logo must be there in a lucid or gripping fashion on your packaging.

6. Go Green

  • Customers relate emotionally to brands that are morally responsible. Many organizations are reporting on using sustainable material for packaging.
  • Being a start-up or a small or medium business, you need to be aware of the new trends and apply them to your packaging business plan.

When it comes to creating a recognizable packaging experience, there are unlimited possibilities that can be explored in a packaging business plan. You can experiment endlessly with your product packaging. The packaging is an important function especially when you have started a new venture and are looking to foray into newer markets. So make sure you customize your customer experience coupled with packaging like never before can give your brand and product a new identity.

Categories
Startup

How Can Startups Overcome the COVID DownTurn

Top 5 things startups must do to overcome Corona downturn

Most of the startups were not prepared for this tough period and are now fighting it hard to find ways to survive and remain afloat. Raising capital has become tougher than ever before and the buying sentiment of the consumer is at an all-time low. 

COVID-19 is a global emergency with every industry being hit. Retail chains are shutting down, companies are filing for bankruptcy and unemployment is at its highest. Work from home has become the new normal. The situation is very grim for small entrepreneurs who have fewer cash reserves to manage the sudden lockdown and the impact the downturn it has created. These effects of closure will also have a huge impact on our economy.

Here are 5 things that a startup must do to overcome this downturn:-

1. Runway and burn rate

  • Make a plan for the next 3 months, 1 year and 3 years of survival as the economy will take some time to get back on track.
  • Take all the stock of your current gross burn rate and calculate how much cash you are spending every month? How much-fixed expenses do you have? And how much money goes into variable expenses?
  • Take a look at your actual revenues, Make sure you don’t forecast, have real numbers.
  • To get the net burn rate, subtract your monthly gross burn rate from your revenue.
  • Check all your accounts and see how many months your company can survive in corona downturn
  • Calculate your runway to last until you raise your next round of capital.

2. Diversify your business

  • It is a good idea to diversify your business in this tough time.
  • It is always good to have different sources of revenue so that you can save your existing business and pay your employees too.
  • Go digital, take your products and services online. Since you already have a set backend, building on new functions like delivery, online payment, etc. should not be such a difficult task.
  • You can start an online service like; a paid webinar, online coaching, can make viral videos. You can also try your hand in food retail or can partner with some healthcare company. 

3. Line of credit

  • Taking a line of credit can be very useful for your business. Line of credit is a business loan where the moneylender fixes the upper limit and the borrower can take any amount within the upper limit at any time. The interest will be charged on the amount that the borrower uses. This service can help you in securing your business.
  • Try and take a line of credit as soon as possible as post lockdown financial institutions might be strict on providing loans easily.

4. Employee safety is paramount

  • For the entrepreneurs, it is your priority to keep your employees and customers safe
  • Start with changing the employee policy based on the situation.
  • Let them know that the company cares for them and they are safe.
  • Try to engage them in multiple functions. You may not know about the hidden talent of your employees.
  • Try to motivate them and ask for their support.
  • Keep a daily track report of their work and analyze their potential.
  • Ask your team to share creative and innovative ideas on a regular basis.

5. Be proactive and focused on profitability

  • Raising money is easy when the economy is strong but in recession, it can get worse.
  • Try to eliminate side projects, new ventures or any underperformance unit.
  • Focus on your employee performance at the top to contribute to the company.
  • It is important to understand whether they are default alive or default dead. It is also a good way to measure the health of your company.
  • Try and cut down on all your extra costs if your office is on rent either request the landlord to reduce it or try and shift to a cheaper office space

As the future is uncertain, it is always better to be prepared for the worst. One thing startups must do is to be flexible and move with the tide. Innovative processes increased productivity can change the tide for you once normalcy returns. Recessions are cyclical by nature and entrepreneurs can make up for lost value once the economy improves.

Whether or not a recession happens, it is likely that the virus will affect your business directly or indirectly. The best way to handle the impact is to be prepared for it, both within your business and beyond. Discuss the impact with your employees. This is not the time to panic, but rather prepare for the challenges and opportunities that will be thrown at you. 

Categories
Startup

Passion or Experience: The Right Ingredient For an Employee

Should Startups hire based on experience or passion?

A Startup is an initiative/ business started by like-minded entrepreneurs who have an ideology that form the basis of tis startup. The business is focused on solving some problem of the consumer, by either providing intangible services or by providing an evolved product as per the demand in the market. 

Now the question arises, ’who should the startup hire to be a founding member of their mission and also be an active contributor in achieving their goals as well?’  Before hiring an employee, it is the foundation of every company that defines the future of its existence. The foundation mostly depends on the management team that plans, strategizes and recruits employees that could work in their interest with passion and with a pinch of experience. With both strings attached, a startup could do wonders.

Some advantages of a passionate worker over an experienced employee are:

  1. A Passionate Employee is often better than an Experienced Employee as they will go above and beyond to prove themselves that they could excel, whereas an experienced person might not be so willing to prove himself as his belief lies in ’experience speaking for itself’. 
  2. An inexperienced Employee who is very passionate towards their work joins as a clean slate and can grasp all duties and information more effectively than to a person who is coming from an experienced field with multiple ideas.
  3. A Passionate Employee with limited experience will have a fresh, different work or ideas to get the task done. On the other hand, an Experienced Employee will only stick to the stereotype framework that he has been following since ages.
  4. Passionate people may tend to be loyal and gel well with the chaos that comes with working in a startup and trusting them boosts their morale. Experienced people tend to move out for other opportunity that steps their way as soon as possible.
  5. Even though the salary that a passionate employee gets is not that high but they don’t define their work as per what they get paid, but for an experienced person compensation is first priority and defines their work.
  6. Passionate Employees are likely to improvise and learn new skills thus helping them to multitask which can be helpful for the employer as well.
  7. Passionate people like to work as a team indulging and motivating other employees as well. Unlike Experienced Employees who focus only in highlighting themselves and not necessarily will be team players.
  8. An Experienced Employee will join a startup with a motive to get a promotion as per their past experience, but a passionate employee would be focused more in work and self-learning for the betterment of the company.

However, this does not mean that experienced employees should not be hired at all, because the experience they bring with them can help in scaling a business faster and keeping the costs at bay. Hence, benefits of years of experience cannot be matched by the sheer passion for working.

Therefore if you want to hire leaders in an organization, an experienced employee is needed to hold the fort. But to build a team you need passionate employees who can steer change and help you achieve the targets. Slowly steadily these employees will also grow and become leaders in the organization and train many more who join.

Hiring culture today has taken a turn towards getting onboard employees who have a positive attitude towards the company they are going to work for. It is difficult to differentiate between the two characteristics as both these employees have their own benefits and disadvantages at the same time. It purely depends on the company’s stage of growth and the plan they have devised for scaling, so keep an open mind for both- as passion and experience together can make for a deadly combination.

Categories
Startup

12 Costs That Every Small Business Startup Has to Incur

स्टार्टअप
स्टार्टअप

Know all the Costs involved in Starting Up?

In India, many entrepreneurs underestimate the costs associated with starting-up a business. So apart from having a great idea or a product, one integral part of setting up a startup is planning regarding all the costs involved. These costs should are an integral part of financial planning. Cost of equipment’s, company registration, software, staff, website building, business cards, etc. play a key role while starting up the business. 

Here are 12 different types of start-up costs you need to address before you start a business:-

1. Registration cost/Legal entity

  • First and foremost, you need to register your business as a legal entity with the state you are operating in.
  • Registration of your company can vary upon the states, so before taking any legal step, you need to know the costing of all the procedures.
  • To register your business, you can visit the state’s official business registration site to get an estimate or you can also hire a legal service company to work out the business start-up cost. If you want to fast track the procedure, such agencies can help you out with that too with an extra cost involved.  

2. Equipment

  • In any business, equipment plays an important role. Almost every business needs some sort of equipment in the starting phase. For example; if you have opened a restaurant then you need a stove, dishwasher, cooking utensils, furniture etc.
  • You can always get financing options for these types of equipment. You can also opt for a business loan by your bank or a local lender.
  • If your equipment or machinery needs regular maintenance then add that cost too on a half-yearly or yearly basis. 

3. Office space

  • Having a store or office space can get pretty expensive, whether you buy it or take it on rent, it is a hefty part of your small business start-up cost.
  • If possible, you should try to work from home or work out of a co-working space in the beginning. This is much cheaper than renting or buying an office space. It is also a good way to connect with other people and exchange ideas.
  • If you are a retailer or you have more employees than renting a space can be a better option.

4. Inventory

  • If you are in manufacturing, distribution, wholesale or the retail industry than you need inventory to sell.
  • Stocking your business with sufficient products before launching is very important to meet the potential customer’s demand.
  • Inventory start-up costs can vary on the size and type of your business.
  • Before opening your business, try to have price quotes from multiple vendors which will help you bargain the price and lower your inventory start-up cost.

5. Marketing

  • According to a research, a new business spends at least 5% of its budget on marketing.
  • Marketing might include banners, business cards, brochures, postcards, signage, hoarding, newspaper ads, etc. This helps you in bringing more publicity but also increases your expenses at the same time.
  • It is good that we live in the age of social media; so many advertisements can be done there for free.
  • You can use Facebook, Twitter, Pinterest, LinkedIn and other social media platforms to advertise your start-up at a very low cost. 

6. Website building

  • It is always important to have a website for your business that looks professional.
  • Most of the buyers start searching for a product on the internet which can lead them to your website which means more business for you.
  • Nowadays, it is very easy to build a website, thanks to services like WordPress and GoDaddy.
  • You just need to register your website or domain name that demands a small fee yearly.
  • After getting yourself registered, now you need to have a CMS (Content management system), to build your site which also includes a monthly or yearly subscription.

7. Furniture and Office supplies

  • For office structure, you usually need computers, chairs, desks, and landline connections for your employees.
  • But apart from the basic furniture mentioned above, add in printer, ink, cabinets, water cooler, air conditioner, and other supplies in your start-up cost.
  • Try to avoid special perks like coffee and snacks which is an additional cost although the cost varies on the number of employees you have and the business structure you are operating in.

8. Utilities

  • When you start a business, your customers might come in late but your bill payments start even before you can imagine. You are also responsible for paying the internet, landline, water, gas, and electricity bills apart from the rent and furniture cost.
  • Include the installation cost of these services as well in your start-up cost.

9. Hiring and Payroll

  • 25%-45% of your budget goes in salaries even if they are not bringing in much revenue in the beginning.
  • Payroll also includes other benefits like; stipends, commissions, overtime payment, travel allowance, and bonuses.
  • Always remember that your employees will also grow over the time as your business starts growing or picking up.

10. Insurance

  • Just like the way you protect your health, your house and car with an insurance policy, you need to protect your business too.
  • There are many business insurances in the market, analyze your business type to take the right insurance plan. 

11. Taxes

  • While you are planning for all the costs that are involved in running a business, it is important to keep the taxes in account too.
  • Apart from the taxes, you need a charted accountant to handle your finances. The CA can either be hired or outsourced depending on your budget, but his fees also will be a part of the expenses.

12. Travel and shipping

  • If you are in a consulting business or you need to travel a lot then this expense should also be a part of your small business startup cost.
  • If you are in the shipping business which includes packaging, postage and other shipping costs than you have to be very careful with your budget.
  • In this case, you can always take the help of a third party or a governing party to ship your product. Try to get a quotation from multiple vendors to eliminate the extra start-up cost. 

Budgeting is the most stressful part of starting a business, but having a realistic idea of costs and how much money you need to build a cash reserve will help you in the long run. So, Good luck and start with a bang! 

Categories
Startup

5 Tips for an Early Stage Fundraising from a Venture Capitalist

कारोबार
कारोबार

Early Stage Funding to Sale your Business

Early-stage fundraising is looking at for high potential and growth companies. You should have a clear sense of your vision and a passion and be able to convey that to investors. To help eliminate some of the myths and shed light on what goes on when pitching the VC investors, here are a few tips to practice that can help you in this process:-

1. Offer a solution to a problem.

  • Firstly, you need to find a solution to the problem that can impact a large number of people to entice a venture capitalist for an early stage fundraising.
  • After the problem has been identified, the investors always look for the solution so make sure that solution is clear, to the point and here to stay.
  • Now you have to show your investor how your company and product will address the problem.
  • Most of the entrepreneurs concentrate on the product when instead they need to focus on their customers and the burning problem the customer is facing.
  • Try to use stories and pictures when you explain the execution process.
  • Explain your product and services very clearly to avoid any kind of confusion.

2. Revenue Model

  • Now that you have already explained your product/service, you then have to explain about how fast you company is growing and what are the revenue projections you expect during your pitch for an early stage fundraising.
  • You have to discuss how your pricing will fit into the market you are addressing.
  • The investor is always interested to know how you will undercut the existing solution with your pricing and will your customer be ready to pay that price?

3. Milestones

  • Investors like to spend more time at this point.
  • It talk about the growth seen by your company over the last year and what will be the projected growth in the next  3-5 years looking at the finances and business model.
  • Your operations plan can also be shared in this slide which can include distribution channels being used, operational structure and the big plan to make money in the future.
  • No one can predict where you will be in the next 3 years but the investors would like to see your future plans and the financial knowledge to reach there.
  • Do share your profit and loss statement for the last and the next 3 years. Giving your investors a clear picture will lead to early stage fundraising.

4. Target Market

  • Make a list of data of your ideal customers and how you will position your product in the market.
  • This is where you tell the story about the scale of the problem you are trying to solve and the scope of getting success.
  • Always remember that the more specific you are with your targets, the more realistic your pitch will be to get the early stage fundraising.
  • Your market will decide whether you are able to get the funds or not because if you are operating in a small market then the investors might find the ROI small and therefor consider it risky to fund.

5. Actively ask for feedback

  • Touch base with the investors after the meeting and actively ask for feedback.
  • The information you receive can help you refine your pitch.
  • Do not make changes based on every single piece of input. Only adopt what you think is the most important feedback for your company.

Entrepreneurship is one of the greatest experiences in the world. If you are choosing an investor make sure your dream & vision of the company remains intact despite taking money from someone. So choose the right investor and work towards getting early stage fundraising.

Categories
Startup

A Survival Guide for Early-Stage Startups

बिजनेस
बिजनेस

Early Learning Advantage: A Survival Guide for all Startups

Starting a business and growing it through the early stage is a difficult task and the only thing that comes in handy at that time is a startup survival guide. 9/10 startups fail in the first 3 years of their operation depicting a poor startup survival rate. So how exactly can you survive in the early stages of starting up? Determination, planning, and a little bit of luck can go a long way in marking your success. Here is a startup survival guide for many of our new entrepreneurs.

1. Get the right Founding team

  • Your team will make the pieces come together and pave way for success. The first step in the startup survival guide is to get the right founding members for the business
  • Look at people with diverse strengths that can be an asset to your business
  • The founding members should be trustworthy with a mission to make the business succeed rather than their own success

2. Implementation of the Idea
 

  • No matter how much research has gone behind the business idea, but if the implementation is not up to the mark, the startup will fail to take flight
  • One of the main reasons that the startup survival rate is so low because entrepreneurs fail in the implementation phase 
  • Slow down with your speed. You might think that the idea is revolutionary but it might take time to implement it correctly
  • An early-stage startup should be clear about 3 things- The solution it is providing, the cost involved and how will the idea be monetized

3. Find your Unique Selling Proposition

  • When you start a business, you have to make sure you are different from the competition
  • Realize what is your USP- is it your delivery mechanism, or your social media presence, exclusivity or the product itself
  • Your startup survival guide should spell out your USP that is going to keep you going for many years

4. Work towards getting your Customer Acquisition Cost down

As we all know, the customer acquisition cost is the total cost of acquiring a new customer. It should generally include things like Advertising, Marketing & Sales costs divided by the number of customers acquired

  • Focus on improving the conversion rate through the quality of content, e-mailers, layouts etc.
  • Enhance Customer service to eventually build loyal customers. These loyalists can then become influencers for your brand to get in new customers
  • Utilize social media campaigns fully so that customer retention rate remains high

5. Be Flexible

  • Business is all about being dynamic and embracing change. Hence, being flexible is of utmost importance in the startup survival guide
  • Learn to tweak your plans mid-way. There could be changes in market conditions, or your competition might be doing something different, keep an open eye and change your flow accordingly 

6. Be well prepared for Investor meetings

  • Treat investor meets as an IIT entrance exam; you need to be more than prepared. Be ready for a volley of questions and if you don’t know the answers you will be marked negatively.
  • Build your case well. This preparation and confidence will give out only one message- that you will justify your investors’ money   

7. Don’t hesitate to ask for Help
 

  • You probably might know everything about how to run a business, but you possibly cannot do everything yourself. Reach out to a partner whom you trust to manage different business operations if required
  • One reason for the startup survival rate to be low is that business owners don’t reach out for help at the right time
  • Be open to feedback, suggestions, opinions, it only makes your business stronger and better

8. Plan for Contingency

  • Keep a close eye on your cash flow management and invest within your means
  • If expected results fail to show, your contingency fund can be utilized to change the course of action

It’s not an easy task to build a business from nothing and therefore a startup survival guide is a must for all new entrepreneurs. With hard work and dedication towards your business, the path to success shall not be far-fetched. 

Categories
Startup

How to Make Your Startup Into a Large Business

दिल्ली में युवा उद्यमियों को बड़ा मौका
दिल्ली में युवा उद्यमियों को बड़ा मौका

3 Secrets that you must know to Boost your Business

While on your journey from becoming a startup to a large company, strategic decisions need to be taken to scale successfully. You have to invest your time and effort to reap the benefits. It is a necessity for the survival of your business & your economic well-being. Here are some key investments that need to be made while growing your business.

1. Invest in People

  • Employees are the backbone of your business, hence prioritize your team!
  • While it might be difficult for entrepreneurs to hand over control of some aspects of their business, doing so is necessary when growth is the goal
  • By Investing in people you are opening doors to great business opportunities. It helps you build a solid reputation in the market as you will attract the best talent from the industry
  • Provide learning and growth opportunities to your employees so that they feel empowered to take on new roles and responsibilities
  • Always remember happy employees will lead to happy customers. A motivated employee will work hard to build relations with the customer
  • Listen to your employees. Giving orders or lectures on what the company wants to achieve or where it is heading will not work anymore. The employees have a lot of insight about the company and its business function hence their ideas need to be heard.
  • For e.g. Virgin in the U.S had asked their employees to give suggestions on how to improve their cruise ship Virgin Voyager. One of the customer associates came back with a feedback of onboarding a celebrity chef to design a special menu for them. The employee knew that the chef was already a frequent traveller by the Voyager and would be happy to do this. This helped in making the Voyager menu a hit with its customers
  • Reward and give recognition to your employees regularly. Any achievment should be applauded not only by the reporting manager but the CEO as well. This makes the employee feel wanted and motivates him to work better

Investing in People is absolutely integral when it comes to growth of your business 

2. Invest in Processes

  • In order to scale from a startup to a large company, operate more efficiently and achieve insightful data about consumer behavior, a business must invest in process management
  • Move towards Business Process Automation for better employee and customer experience and most importantly streamlining business functions. In fact, if you don’t automate, the cost of that would be incredibly high!
  • Companies without good business process management and automation are likely to underperform and run into issues that could have been avoided
  • Process management leads to accuracy and better communication within the organization
  • While larger enterprises are aware of the importance of business data, small to medium sized businesses tend to oversee this significant aspect that impacts business performance. Investing in Business Process Management will help in centrally storing all business critical data
  • Companies can make that plunge from a startup to a large business if Business Process Management and Automation are treated as two of its important pillars

3. Invest in Technology

  • Technology today plays a direct role in affecting your topline, what you need to know is what tech is best for your business, how the implementation cycle will take place and finally the execution
  • When we say ’Invest’ in technology, don’t treat it like a pure cost to the company. It will yield returns and hence treat it as an investment for growth
  • Embrace and learn social media to increase your sales. Social media can help you interact with audiences around your product offerings and therefore help in increasing traffic to your website or YouTube channel 
  • Choose the right platform and community you want to interact with and then create a strategy around it to engage with them through useful and interesting content. This will force them to visit your page, again and again, leading to growth.
  • Use technology to streamline your business. Investment into software for Financial computation, Inventory management, CRM Management will help in making business processes easier and the customer interface seamless
  • Take a decision if you want to invest in technologies like the mobile app or take your business on cloud depending completely on your product and business model

Every business owner wants his company and idea to grow and become a powerhouse of income generation and following this three-pronged approach you can grow your startup into a large business. 

Invest in People

Invest in Processes

Invest in Technology

And let your business skyrocket!