Leadership

Do’s and Dont’s When Starting a Small Business

It is great to have a promising idea to start an SME but a great idea do not necessarily always promise a profit. Many entrepreneurs start off very enthusiastic with the hope of making it big, but in that hope it is important that one also has a proper plan in place. Small businesses if started right can lead you to the top of the business world. The business world competitive as it is, is also fair to those who deserve success. Here are a few do’s and don’ts for the entrepreneur who has a great idea and want to make the right moves in the SME business world.

1. Business Plan:
Many entrepreneurs believe that a great idea is behind the success of an SME. A great idea that has a business plan to materialise it is one that is what assures success in business. A great idea is important but if it is not backed by a professional business plan, it will remain just a theory.

Plan of Action

Have a business plan that covers all the aspects of running a business. This includes operation and the exact mechanisms that will make it successful. The other important things that needs to be included in a business plan are costs, marketing, manufacturing, technology required and the staffing.

2. Research:
It is important that before you decide on starting a business you do a research on your idea. Many ideas that start-ups come with fail because there is no market for the idea. A business idea may work in some places and not work in some others. There are a lot of reasons that make or break a business.

Plan of Action

It is important that an entrepreneur research on an idea before he/she invests money on it. The second important thing to check before releasing a business idea as THE business is check if there have been others who have been doing the same thing in the market. It is important to know if you have competition and equip your new business so that it matches the game.

3. Funding:
Many companies start great but fail to continue the success story because of a lack of funds. It is wishful thinking to assume that one may find funding apart from the family, friends or oneself. It is common knowledge that many start-ups do not get venture capital.

Plan of Action

It is safe to assume that the initial funding is all that you would have for the business. Have a business plan that has profitability and sustainability in its plan. Funding is important for every business. It is important that you plan your funding well.

4. Investors Deck:
Investors are the ones who write a company’s future. The correct investors bring in business, money and also a bright future with other investors taking notice and looking up. But it is important that an entrepreneur bring in the right investors. Yes, there is something called the right investor also, associating with whom a company is sure to touch success. Do not rely simply on your business knowledge base and a developed business plan to bring in the best investors.

Plan of Action

Hire an expert consultant to help you make the right decision. Have the best investor’s deck made and make sure that you associate with only the ones who bring in success.

5. Technology:
The business world as we know it completely loves technology. It is important that a start-up keep itself well in sync with the technological advances of the business world.

Plan of Action

Have a great technological team who brings to your company the latest technology and performs well. If they fail to work well, it is best to replace them with more reliable team.

6. Team:
The correct team is important for a business success. A start-up requires the energy of all the team members to start off in the right way. Many businesses do not make up through the initial business years because the team members do not get along with each other, have different values and do not share the same goal. A start-up cannot run if it is pulled in different directions.

Plan of Action

Make sure that you have the correct team members. The correct team members mean people who share your values and share the same goals. It is also important that they share the same passion for a business.

7. Get Involved:
An entrepreneur who do not get involved in his/her own business is sure to see some struggle in the business story a company aspires to write. The second thing to keep in mind is that just because you have made it to the top of a business it does not mean that people would come to you for business. It does not matter how successful you were in the past but what you have to give to the present and your plans for the future.

Plan of Action

Get completely involved in your business. It is important for an entrepreneur to understand that having an independent business is all about putting in extra hours of work and working seven days a week and being available all the time. People tend to associate independence, free time and cash flow with running one’s business but forget about things like hard work, effort and involvement that complete the picture.

Stay humble. Understand the value of your customers and partners and know that a little self-priority can undo whatever you have built up.

Being an entrepreneur or starting a small business is not a piece of cake. The competition is higher in the small business world. This makes it important for an entrepreneur to be careful when he/she is starting off in the business. The journey of being an entrepreneur is not easy but it is not unachievable. Playing the cards well is all it takes to succeed in a business. Play your cards well and see your business taste success.

About the author

SPI Group

An integrated platform created to serve entrepreneurs and service providers. SPI engages with over 100,000 Entrepreneurs & Senior decision makers through a unique combination of cutting edge business magazines, high profile B2B summits and conferences, strategic alliances with Govt, business associations and government bodies. SPI also leverages the power of digital marketing and social media.

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