Are you thinking of setting up a business sometime soon? Well, you should first realize that starting one is no joke-it requires time, money, and effort, not to mention very careful planning. Without a sound plan, your business will only end up a failure, no matter how lucrative it could be.
So, what do you need to start a business plan? Here are some steps that you need to keep in mind:
Before anything else, you might want to ask yourself, what kind of business do you want to pursue? There are a lot of industries to enter today, from food to IT to online retailing it can be hard to settle on a particular niche. Starting a business is very tempting, you tend to dream big. But remember, big things come from small ones, so better start small.
Be specific with what you want to pursue, and from there you can draw a plan to establish your venture. Everything else will follow from that point.
Once you have decided on a concept, it’s time to make a plan out of it, and that would be in the form of a feasibility study. In this phase, you will factor in all the things that affect your business concept, from supply and demand, market reception, location, and of course, your investment. This is also the time when you will see whether your concept is worth spending on, and your forecast when it comes to return of investment.
A feasibility study is very important, even for already experienced entrepreneurs. This is because when you’re going to start a business, you will be shelling out funds, and there’s a risk of not getting them back as you expected. By carefully studying your concept, you are able to find loopholes, potential problems, and other concerns, as well as the preventive measures that you can apply before they even take place on the course of your venture.
When you have established your business concept and its feasibility, the next thing you have to work on is the funds. Where will you get your money for investment? You have different options, actually, and these include applying a loan from the bank, using your savings, or a combination of the two.
There are also lenders that offer business loans to aspiring entrepreneurs that do not require a lot of papers; you can consult with them and see how they can help.
4. Set up
Once you have your funds, then you can start spending it on the things you need in order to start your business operations. This is the time for you to shop for the items you need, secure the location for your establishment, and everything else in between.
This is also the time to prepare for the paperwork, as once everything’s set up, you will have to process the legalities of your business in order to start full operation.
5. Legal paperwork
Here in the Philippines, there are at least three offices that you have to visit to register your business, namely: Department of Trade and Industry, Bureau of Internal Revenue, and the City Mayor’s office. You may also have to go to the Barangay council in process some of the requirements that you will submit to the other three.
Paperwork includes the permits, certificates and other legal requisites that will make your business eligible for operation. You need to have it registered at the DTI so that your brand will be recognized and listed accordingly, in the BIR so that it would be taxed properly, and in the city government so that it will be entitled to benefits provided by the local government.
Securing paperwork is very important, not only because of recognition purposes, but also for government accommodations. If your business is not duly recognized, it may be liable for civil and even criminal acts. Sanctions for illegal business operations are expensive, and they may have your establishment at risk to immediate closure.
Your papers are also useful when applying for bank accounts, bigger loans and business ventures with potential partners, so it is best to have them secured and completed at the soonest possible time.
Aside from the legal requisites, you may also have to apply for benefits, such as social security and PhilHealth. These benefits are essential especially if you have employees to help out in your business, as these give them security at work.
Lastly, when everything’s set for operations, it’s time to market your business. This is the time you have to work on advertising and attracting your target market, so that they will be encouraged to check out your goods and services.
Marketing is a continuous process, just so you know. You need not only lure them to your store, but as well turn them into repeat customers, as this is where your business will start earning.