For those planning to start a new business venture, here are some essential tips to help you get a head start.
The times are changing. A mere glance at the steady pace at which the Indian economy is growing will put a lot of things in perspective. In the fiscal year 2018-19, the Central Statistics Office (CSO) announced that the Indian economy grew by 8.2% between the months of April to June while China’s growth dipped to 6.7%. The announcement by the CSO held tremendous significance as it was around the same time that India toppled China to become the world’s fastest growing economy.
According to a news report published by NDTV, during the December quarter, the gross valued added (GVA) for manufacturing grew at 8.9% while the farming sector GVA grew at 4.1%. The construction sector recorded a growth of 6.8% and the services segment grew at a rate of 6.7%.
Even the inflation rate, which had so far been the common man’s worst enemy, has seen a gradual decline over the last couple of years. While it is true that the real interest rates are still quite high, it is fair to say that the structural inflation has come down from the earlier 7-10%.
The stage is all set for entrepreneurs to rise and shine. According to a report published by The Economic Times, startups in India saw a 108% growth in total funding from USD 2 billion in 2017 to USD 4.2 billion in the year 2018.
The startup narrative in India has seen phenomenal success in recent years. YourStory Research revealed that as much as $12.7 billion was raised by Indian startups in 2018 alone. Whether it’s Paytm, Swiggy, Byju’s or OYO, the new generation of entrepreneurs are scaling new heights every single day.
Additional Reading: Should You Take a Personal Loan for Your Business Plan?
However, it hasn’t been a magic carpet ride for all.
A report by the IBM Institute for Business Value and Oxford Economics found that 90 percent of Indian startups fail within the first five years. So, if you are stepping into this brave new world, it will be in your best interest to suit up and get cracking.
Need a helping hand? Here are 5 key things you may want to bear in mind as you proceed onward towards your goal.
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What’s Your Big Idea?
There are literally thousands of startups in the country today. In this rapidly evolving ecosystem, the only way you can make your mark is when you have an idea that can make the complex, simple. If you need inspiration, simply look around and ask yourself – what is that one problem that desperately needs a solution? Set high benchmarks for yourself and don’t stop until you have reached the top.
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Market Research
The one thing that most budding entrepreneurs forget to do is market research. You may think you have a great product but have you asked your friends, relatives or anyone else if they would like to use it?
Reality is cruel and the sooner you learn to adapt, the better off you are. Thorough research will help you identify the problem areas while at the same time provide you with ample insight into the mind of your prospective customers.
Additional Reading: Startup India – What It Means For Women Entrepreneurs
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Motivation
When you start out, chances are you will fail 3 out of 5 times. But don’t lose heart. Hold your head high and keep your ears close to the ground. Thomas Alva Edison failed multiple times before he hit gold with the electric bulb. It was the same with Archimedes, Picasso, or any other person who has tried to achieve anything worthwhile.
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The 1 Minute Elevator Pitch
Picture this scenario. You bump into a famous investor in the elevator and the gentleman has just one minute to spare. How will you make your pitch? Yes, you have gone to great lengths trying to define your dream project in a 100-page presentation, but don’t be under the impression that the CEO of a Fortune 500 company has that much time to spare. Know your product well and make sure you can define it in 50 words or less.
Additional Reading: How To Raise Money For Your Business
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Finance
Take care of the finances well before you set out to create history. In the early stages, it may get difficult for you to get investors on board. The easiest way out could be to save up until you have a blueprint ready and then use the savings to create a beta version of your product. But, wait! What if you run out of funds?
The downside of getting into a business is that it’s unpredictable and it can go belly up without a forewarning. For times like these, a Personal Loan can come in handy so that you can focus solely on building your product. The rates are decent if you compare them online and, unlike angel investors, they are surprisingly easy to get.
Additional Reading: Personal Loan Offers With Zero Processing Fee
Keep these 5 tips in mind and your start-up should run smoothly without too much trouble. If you’re looking for other financial products that could help your business get up and running you’ve certainly come to the right place.