Business is nothing but an activity that involves purchase and sale of goods and services with a strong motive to earn a ‘profit’. It mainly involves satisfying societal needs while fulfilling one’s own needs. One can immediately venture into business provided he / she has an idea of what stream of business they are planning to start with. There are various types of industries to start your business: Primary, Secondary and Tertiary industry industries.
Primary industries deal with production of natural resources and their extraction; Secondary industries deal with the manufacture of raw materials and construction of infrastructure; Tertiary industries deal with provision of support system to primary and secondary industries in form of banking, insurance, communication and other services.
Before starting the business, ensure the availability of these services that supplement your business:
- Transportation and Communication: There are chances that the production of goods might not take place near the market place. Transportation is used for moving raw materials to the production area and movement of final goods from warehouses to market. Communication is needed for exchange of information.
- Banking and Finance: The bloodline of the business is funds. Thus without financial support, business cannot last long.
- Warehouses: The goods produced are generally stored because they are not sold soon after production. Warehousing prevent the loss or damage to the product.
- Insurance: A business always involves risks such damage to goods, fire accidents and theft. To protect their goods, businessmen generally insure their goods against various risks. A premium amount is paid to keep them insured and in the event of loss, compensation is provided by the insurance company.
- Advertising: This is an important tool for every trader to induce customers to buy their products. It is impossible for every trader to personally contact each an every person to endorse his product. Advertising helps to gain attention of the large mass of people and provide each of them a clarity and usefulness of a product.
FOLLOW THESE STEPS IF YOU WISH TO BEGIN WITH YOUR JOURNEY AS AN ENTREPRENEUR:
- Selection of business line: This is the first and foremost step for starting your business. It deals with selecting that category that suits your business goals.
- Scale of operation: This decision deals with deciding on whether the entrepreneur will on a large scale or small scale of operation depending upon the type of business and risks associated.
- Form of ownership: The business organisation can be sole proprietorship (single owner) or partnership (many owners) or even a joint stock company. This depends on type of business, size of business, the capital requirements and legal requirements.
- Location to set up: The next step is to plan where the business will be located. A mistake here can lead to increased cost of production and transportation. One should also ensure availability of labour force nearby if the company needs human capital.
- Financing the preposition: Arranging capital is needed as per the requirements of the business. Capital is needed for procuring fixed assets like land, building and machinery. Capital is also need for fulfilling day to day requirements.
- Infrastructure facilities: Facilities like machinery, equipment, land and building are important to support a business.
- Plant layout: Once the physical facilities are decided, there is need for a plan to be sketched about the physical arrangement of these facilities.
- Labour force: Every business is in need of both skilled and unskilled labour to covert raw materials to desired output.
- Tax planning: The entrepreneur must also be aware of the various tax laws that would have an impact his decisions.
- Launching the enterprise: This step is the about the actual launch of the enterprise after completing various legal formalities and starting the production.