Published on May 12th, 2017 | by Guest0
Essential Tips to Begin a startup
With the passage of time, it has been observed that students are aiming to become entrepreneurs after graduation rather than being “corporate slaves” as they say. This can be identified by the statistics that show a significant increase in the rate of young students beginning a startup either as a sole proprietor or usually in partnership. A startup is basically a small-scale business implementing an innovative idea in the provision of goods or services. The best part about a startup is that it does not require a huge capital initially and there are a lot of investors throughout the world willing to invest in exceptionally innovative ideas.
With the technological advancements, students are able to come up with such exceptional ideas for a business and are able to attract investors. Investments and sponsorships are two of the most popular ways for startups to expand into a large-scale successful business. However, the first aim is to make the startup survive the intense competition. Therefore, following are some tips you must follow in order to face minimal problems in beginning a startup alone or with one or more partners:
- Find a business incubator: If you are here, you surely have a great business idea in mind with insufficient resources. A business incubator can help you by providing basic services a startup requires like office space and management training if they like your business plan. Nowadays, it would not be very difficult to find an incubator because the number of startups has increased. Also, a lot of colleges now have entrepreneurship centers acting as incubators strictly for the students of that college. If such an incubator exists in your college, take full advantage of it.
- Aim for cost minimization rather than profit maximization: Keep in mind that a startup will not earn you significant profits from the very first month of operations. You may have to suffer break-evens and even losses for a few months till your business becomes stable. Therefore, your aim initially should only be to minimize the costs of business so that you are able to avoid the losses. Avoid employing too much staff since workload is manageable by the partners initially. Adopt similar strategies and keep the costs low.
- Allocation of resources: Before setting up a business, you must be certain about the amount that you will be able to invest initially. This could only be the personal investment by partners or could include any external investments if you are lucky enough. However, you are strictly discouraged to seek loans because that would be an extra cost and may create difficulties in achieving survival. Create a financial plan in which you wisely allocate the amount to various activities including set up costs, marketing and operational costs. Seek expert advice on allocation because at initial stage you cannot afford to under or over allocate funds.
- Immediately searching for sponsors and investors: While survival is an important aim, it is not the only aim you should have in mind. As soon as you begin your operations, try finding sponsors and investors so that you have money to expand. Sponsors are always a better option because you just need to provide them branding in return while investors ask for a share.
Leonardo Ron is an entrepreneur and motivational speaker who studied Law and politics at college. He owns a large-scale textile trading business and provides young individuals with valuable advice. Visit his website at https://www.assignmenthelponline.net/