How to start a business from scratch?
Any business begins with an idea. It is the part that succeeds in this idea formation that is the most challenging, yet the most rewarding. Starting from the generation of an idea to eventually launching the product, the process is long and does require ample brainstorming. Creating a new business venture is not as difficult as it sounds, but certainly requires grit and talent, besides the right guidance and tips, for the best outcome. If one tries to break down the entire process into a number of simple, easy steps, the task not just becomes simple but also very much achievable.
At the onset, the most crucial part of a new business venture is the idea itself. A successful business idea might come overnight, after long-drawn inspiration and meditation. The idea must have the potential of being launched as a full-fledged new business venture idea and must be unique, enterprising, and innovative. If you already have a business idea in mind, and you already consider it sound enough to be able to hit the market successfully, a big share of the necessary brainstorming is already done.
After you have identified the business idea, it is time that reality takes over imagination. Any business idea is no more than a basic scratch, until and unless it is validated. This is possible only with great ground research. The key to begin is by doing simple market research and seeking answers to a few important questions.
Is your business idea unique, or has it already been started by someone before you? If the new business venture ideas haven’t been followed or created as of yet, what are the reasons behind them? Is the new business venture ideas enough for a successful business? Who would the prime rivals for the idea be? What makes them successful in the business? Can the business idea be refined and improved a little? Would customers benefit or get attracted to the business idea? How would the product/service handle competition? What are the areas that would need improvement?
A successful new business venture comes only when it has been monitored well for honest and helpful feedback. The business idea needs to be propagated enough for people to try and test it in order to grasp whether it is workable or not. People frequently attempt to understand situations from others’ perspectives. This guarantees pointing out inconsistencies that one may have initially missed.
It must also be kept in mind that these inputs are taken from as diverse a range of audiences as possible. A range of inputs coming in from users of different backgrounds not only helps you judge the range of acceptance of the product, however, but a bigger number of errors that you could have missed can also be found and fixed. The two basic tools for the same are prototyping and testing.
The Legal Aspects
There are quite a number of legal aspects that must be taken care of when venturing out to establish a business. Apart from engaging with the business idea and leaning into product testing and quality assertions, it is also significant that one maintains all the legal requirements simultaneously.
Copyright issues must be dealt with, along with the nitty-gritty of the business structure. The rules and regulations regarding the latter must be gone through thoroughly, the type and rules of partnership for instance, or the insurance that must be made. Registering one’s business is a very important task in itself, for it involves choosing a unique name for it, besides obtaining several identification codes and permits. Be it bank accounts or trademarks and patents, the legal aspects of establishing a business are unique and need consultation and proper vigilance. A single small error can have huge discomfort later on.
Transforming a new business venture from an idea to the final product has one very important element to it, and that is deciding on a business plan or strategy. A business plan essentially outlines everything from the start to the end of proceeding on the new venture. It must entail the tiniest of instructions and the finest of details because an elaborate plan can prove extremely helpful while carrying out the same when needed.
The contents of a new business venture plan must, however, be very well-structured and organized for the most fruitful of results. At the same time, since it would be an official document, there is a protocol for its composition. Broadly speaking, a new business venture plan document must include the following –
Introduction or title, executive summary, description, strategies and market data, competitive analysis, design and development strategy, operation plan, management strategy, and financial considerations.
Funds and Finances
For starting any new business venture, some resource or capital, however big or small, is required. The source for the same can be chosen from a multitude of sources. You could either choose to fund it yourself in case it’s a small or new venture, or if you have the means. The funds could come from close relatives and friends or from financial organizations in the name of a business grant. These days the internet can be used for crowdfunding purposes. If one is venturing out on a start-up, institutes also offer incubators and accelerators, which are designed to provide a platform for these start-ups. In case the scale of the firm is large, one might even call in investors for the purpose of raising the needed capital.
After all the steps have been taken, it is time to focus on product development. The study and research, along with the parameters of the innovation, amalgamated with the constraints of finances are all necessary prerequisites for product development. Three major categories of resources – technical, financial, and human – are of paramount importance in this regard. One must possess the necessary technicalities for the development of the product or service, without compromising on funds. Human resource is the most important after all for two reason – firstly, the innovation for a product or service cannot come from a machine, and secondly, the skills to develop, modify or improve it further requires human intervention as well.
The Right Team and Right Location
Finally, the most important aspect of a business establishment is its team. An individual may possess the skills and talents for producing a mind-boggling business idea; to convert this idea into a full-fledged business he requires a team. A team that is skilled in diverse domains and departments. The right location is when you have a physical setup of your business. The right location would be one that is accessible by customers or clients, as necessary, provides you with the required area needed, is situated close to other places of requirements, say secondary support services, and so on.
Launching the Product
You can finally launch the product or service, as your business commands. A new chapter begins from here on, but your new business venture from idea to launch is hence complete.
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Advocate Rahul Dev is a Patent Attorney & International Business Lawyer practicing Technology, Intellectual Property & Corporate Laws. He is reachable at rd (at) patentbusinesslawyer (dot) com & @rdpatentlawyer on Twitter.
Quoted in and contributed to 50+ national & international publications (Bloomberg, FirstPost, SwissInfo, Outlook Money, Yahoo News, Times of India, Economic Times, Business Standard, Quartz, Global Legal Post, International Bar Association, LawAsia, BioSpectrum Asia, Digital News Asia, e27, Leaders Speak, Entrepreneur India, VCCircle, AutoTech).
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One thought on “From idea to launch of a new business venture”
Being a founder is not easy. It can be lonely, stressful, and challenging. You have to deal with many obstacles, such as raising funds, building a team, managing finances, facing competition, and balancing work and life.
But I also believe that being a founder is rewarding. You get to pursue your passion, create value for your customers, solve problems, learn new skills, and make an impact. You have to persevere through the hard times and celebrate the small wins.