Are you ready to start your business?

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SME Times News Bureau | 29 Mar, 2011
The prospect of wealth or job satisfaction led many of us to start in new business everyday. Needless to say, it is exciting as well as full of challenges. Any business involves risk and needs careful attention especially at the initial stage. But generally what goes with a business start up is exuberance of enthusiasm which may result in great blunders.

Remember that every business form or method of business has its own pros and cons. How you can make the best of it mainly depends upon you- your attitude and skill-set, your commitment, perseverance, financial status and knowledge.

Mistakes are inevitable but reducing them is very important at the early stage which usually shapes the future of a business. In this guide, our endeavor is to help you decide whether you are ready to set up a new business.

Starting up a business requires your full commitment. Determination, self confidence, perseverance, initiative quality are the key to success in a business as in any field of life. But to be a successful business entrepreneur, you must acquire some basic business skills.

Financial management: You must have a goods grasp of different financial aspects of business, such as cash-flow planning, credit management, income & expenditure management, etc. So brush up your knowledge of basic financial issues before starting your business.

Product/service knowledge: Any business deals in some products or services. To be successful in your business, you must have in-depth knowledge of the products or services you offer to your customers. Identification of the people who are likely to use your products/services, knowledge of materials and processes for product development, understanding of the competition you will face in the market- all these are very important to achieve business success.

Marketing skills: Setting up a market where you can sell your products or services is of utmost importance in a business. You need to be skilled enough to find out the best would be market for you, analysis its characteristics, and identify selling points for your business. Unless proper marketing skill, you can never be successful a business entrepreneur.

Sales skills: Effective sales management is critical for any business. A business succeeds only when it can organize sales activities in a way that ensures increasing sales volume and growing flow of regular customers. Sales planning, identification of potential customers, effective promotional measures and other activities associated with selling a product or service largely determines the success of any business.

Business planning: When you start a business, it is very important to have a business plan that is realistic, action based and ethical. A proper business plan encompasses all the goals, and strategies of a business, identifies possible risks and challenges, and describes how and when you are going to develop your business in the future.

A few important questions to ask yourself before starting up a business

What is your business idea? Are you ready to gamble on your idea?
Do you have sufficient fund to set up the business?
Do you have sufficient start-up capital reserves to carry on your business without an income at the initial stage?
To whom will you approach if you need a business loan?
Who are your potential customers? Do your products cater to their needs?
Who are your competitors? Are your products superior to those offered by them?
What should be the price of your product? Is that price enough to give you sufficient profit?
Is your product safe? Does it comply with all relevant regulations?
What is the type of product you deal in? Will it be able to take advantage of a business trend before it dies away?
What skills do you have to be a successful business entrepreneur?
Are you determined? Do you have the ability to bounce back?
Do you need professional help to handle some areas of your business?