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Oues 1- What are the various steps involved in starting small industries ?

Ans11. Decide What Products or Services Your Small Business Will Offer
Seems simple enough right? But you would be surprised how many people jump into business with out ironing out this MAJOR detail. There is also a major difference between your main stream of revenue (which should be your focus) and all of your other secondary ideas for producing income. Some questions to ask about your product/service:

What makes you an expert in your industry or what makes your product different from the rest? Does the product or service meet a need? Have you thought about the future of your market? Where are trends headed? Is your product riding a wave or already being phased out?

Most important question! Are you passionate about your product? Do you love it? Does it keep you up at night? Would you wake up every morning excited to work on this business? Your business is going to be your livelihood, so you need to love it. Success does not happen overnight, it will take time months, even years to make big strides. If you arent in love with your business you will stand a good chance at losing the motivation to push forward. Is this something you could see yourself doing for the next 5-10 years? Your energy and excitement will also show through with your clients and customers. It will be a lot easier to make sales and get people to listen to you if you are passionate about your product and service. You should not have to put on an act when talking about your company or marketplace, it should flow just like a baseball fan talking about the World Series or a music lover talking about their favorite band. The people that love their business work on the weekends not because they have to but because there is nothing else they would rather be doing!

2. Know Your Market and Your Competition

Understanding your market goes a lot deeper than I sell coffee, so my market is people that like coffee. The market needs to be broken down so you can develop a clear picture of who your ideal customers are. Some questions for defining your primary market:

What demographic are they from? Age, sex, geographic location, income level, education, buying habits What do they do for work and for fun?

Where do they hangout? Where do they get money from? ie. If your market is children you may want to look at their parents. What common traits do they have? What are their common goals? What influences their decisions? You also need to define your competition. Spend the time researching your industry to dig up everyone who is doing anything in your field. When your customers say have you heard of so and so. you want to be able to say yes and here is how I am different or better.

3. Business Plan (Executive Summary)

An executive summary is very important at the start of a business. Its a summary of all the main points of your business plan and is great to help you put your ideas onto paper. Your executive summary should fit on one page and be simple to read. Try to avoid complicated jargonyou should be able to easily explain your business to a middle schooled. Your executive summary should give the synopsiswhat will an investor, new employee, cofounder or loan officer want to know to believe in your business? Your business plan should answer the following questions:

What need or want are you filling? What problem does your business solve? What is your mission? How big is your market? (Everyone is not an answer) How will you target that niche? How are you different? What is the outlook on competition? Are their barriers to entry? How will you market your business? (Please say more than Facebook) How does your business make money? What is the business structure, how will it operate and whos involved? How does your product or service actually work? How is your product or service distributed to the customer? Why will your business be successful? How do you plan on scaling your business? What are the costs involved? Need startup funding? How much money does your company have the potential to make? When will your business make money? When are the investors going to see ROI? What is your exit strategy? The more specific you can be the better. This is the most important part of your plan is the hook. You should be able to clearly pitch and describe your entire business in this document so an investor will understand it and see the potential. More importantly it makes you write down and define your ideas and goals and create a plan to get there. This is something to hold yourself accountable to so you will have a better chance at succeeding!

4. Choosing a Business Structure

There are a few options when it comes to choosing your business structure. No structure is absolutely right or wrong. Each has its own benefits and drawbacks. While its advisable to consult with an attorney, it is very possible to setup yourself. The options:

Sole Proprietorship Partnerships Corporations Limited Liability Company The basics of each: Sole Proprietorship: Benefits:

Easy to set-up Limited fees Limited paperwork Negatives:

Your personal assets are vulnerable to creditors and lawsuits Dont get certain tax breaks Your company name is not protected from someone else taking it

Partnerships: Benefits:

Easy to set-up Limited fees Limited paperwork Negatives:

If your partner messes up you are accountable More difficult to raise funds Company name is not protected

Corporations: Benefits:

Shields you from personal liability Numerous tax benefits Company name protection Flexibility to raise capital C-Corp and S-Corp options for different tax structures


Initial fees and paperwork to set-up Maintenance Annual reports and up-to-date corporate records

Limited Liability Companies: Benefits:

Less on-going paperwork then corporations Shields you from personal liability Tax flexibility Company name is protected Negatives are limited but vary against each type of structure. Summary: Limited Liability Companies (LLCs) have become increasingly popular because they combine a lot of the benefits of corporations and sole proprietorships with few of the negatives. 5. Finding Funding Any business you start is going to have some funding needs. Even if they are minimal you need to figure out how you are going to cover them. It doesnt matter if you need $500 or $500 million. Lets look at a few of the basic options . Friends, Family and Fools This should be everyones first step when looking to raise some money. Go to the people you are closest to and that trust you. Ask your parents and family members to make an investment in your business rather than birthday or holiday gifts this year. Also, ask them to reach out to their friends who may find it interesting to put up some money if they believe in what your doing. Maybe they pitch in and buy you office supplies to put under the tree.

6. Name Your Business

Obvious? Well even though it sounds simple the name of your business is extremely important. This is the first thing you will tell people and the #1 thing they will remember you by. It should be catchy, easy to remember, easy to pronounce and easy to spell. Think about how it will translate into a domain name for your website. Keeping it simple so people can type it into their address bar is crucial. You want to avoid hyphens and odd spellings of words if possible. Example: Facebook is a great domain name. Not only does it provide a bit of a description of the actual site but it is extremely simple to say and spell. Its great if you can put 2 common words together like face and book.

7. Setting up Your Website

A website can look like a daunting task to someone new in the online world. With the right tools and knowledge you can come to find it is very simple to get going. 1. Make sure you have that domain name from the last step section. 2. Buy hosting. We recommend Either one will work fine. To start most people just need the most basic plan usually it will work out to somewhere between $6$10/month depending on how long you buy it for. 3. Setup your site. You have two options here. Go at it yourself or hire a web designer. If you decide to go at it yourself you can generally start off by using WordPress. This platform is great for most basic sites especially blogs but even if your looking for just an informational site you will find it very easy to use.

8. Partner with Great People

The people in your company are your most important assets. Everything starts with the entrepreneur but the team you are surrounded with will be the ones that carry out the tasks. Dont partner with just anybody, be picky and take your time.

9. Brand and Market Yourself

Before you jump into marketing you need to develop your foundation which is your brand. A brand is not just your name and logoit is your companies identity, personality and appearance. You need to craft your story so that customers stick to your company and are confident in your work. Think Red Bull: Everyone knows the popular energy drink. How would you describe it? Edgy, exciting, bold, dangerous, hip, exoticyou get the picture. These words and feelings are what they want you to think. They want their customer to have these feelings and its a huge reason for their tremendous success. What to do: 1. Define your audiences demographics (age, sex, income, education etc.) should be in your business plan anyway! 2. Define your audiences touch points. What excites them? What makes them tick? 3. Craft a story. What are you going to tell people when they ask about the company? 4. Define colors and get a logo! 5. What is your end promise? What will your product or service deliver at the end? With these steps you should now have a start on your brand development. Dont rush! A solid brand takes time to craft and develop as you learn and test your markets. Its perfectly fine to change things and adjust as you see fit.

Marketing: Now that you have your brand its time to show it to the world! This is where the marketing comes in. There are various ways to market and you can choose one or a bunch of them. Grassroots This is the most basic of marketing that every business should be involved with. Attend local events and network with people. Hand out business cards or brochures. Tell friends and family and let the business spread via word of mouth. Online Marketing Being online is crucial in todays business environment. Your main marketing material is your website. Get a professional and get SEO help so you can generate leads in your sleep! You can also advertise on search engines (its how Google makes money) but do the research and understand how to build a solid campaign. Get involved with social networks like twitter, facebook, youtube and linkedin. There are also a million small niche groups and forums in your industry somewhere online. Its important to understand how to get involved in the community so you are not mistaken for a spammer! But with the correct methods and the effort these free tools are priceless! You can also buy banner ads online as I am sure you have seen on sites at some point. While not as effective as other methods if you find the right site with a loyal niche audience banner ads can still prove successful. PR Marketing While time consuming this can help get your company in front of large audiences. It will also help brand you and your company as experts and increase credibility if you get noted in the right sources. Make sure to take the time to draft up solid press releases or pitch interesting angles to reporters for stories. You can also search online for bloggers and sites that interview startup companies or experts from your industry and ask to be included. Traditional Advertising - While fading traditional advertising still has its places and can still be beneficial. Looks for local publications to buy ad space in or local radio and tv channels.

10. Make the Leap!

In the end it is all up to you! Nobody is going to hold your hand or show you every little step. It takes hard work, dedication and some courage. But dont let that scare you! Ask anyone who has made the entrepreneurial leap and they will tell you what an awesome ride it was. Look to friends and family for support. Make sure you have some people who are behind you in your journey and you will have a better chance at pushing through any hard times.

Oues 2- Essential Components of Viable Small Business Ideas. Ans 2You probably have many small business ideas that you're considering at once. How do you know if any of them are viable? Here are 6 essential components of viable small businesses that will help you make a decision: 1. It's Recession Proof You don't want to find yourself building a new small business, only to see it diminished or eliminated by a recession. Although no business is guaranteed to survive hard economic times, there are some businesses that do fine and others that flourish during an economic downturn. While you shouldn't choose a business on this basis alone, it's worth considering. 2. It Adds Value A business adds value to clients, but a scam robs people of their hard earned money. Adding value makes your business viable because people will do business with those who improve their lives. As you look for home business ideas, stay away from get-rich-quick schemes that only add value to those selling you their "system." Pursue ideas that serve others with products or services that are useful. 3. There's a Way Out Otherwise known as an "exit strategy," make sure you will be able to sell or successfully close any small business you're considering. For example, if you're looking to start a sewing business, you need to consider how you'll leave that business. Will you be able to sell the business or your assets? Is it more viable to have an online store selling sewing related products than to hand sew items? As you consider each idea, make a note of the ways that you can leave each business in a way that makes it financially worth it to start in the first place. 4. It's Expandable You may be satisfied with working alone now, but you should still keep your options open for possible expansion in the future. This doesn't mean that you'll no longer work at home. You can still grow a thriving business from home, using all sorts of outsourced help. A viable small business idea should allow for growth and expansion, even if you never actually do expand. 5. There's a Sound Business Strategy You want to consider businesses that have a sound business strategy and business model. For example, pyramid schemes are not a sound business strategy and are illegal. Most multi-level marketing programs are not based on a sound business strategy, because you'll have to recruit sellers rather than sell directly to customers and clients only. Writing articles full-time for a percent of advertisements and making $1 or $2 a month for a year is not a sound business strategy. 6. It's not Risky There's some risk involved with any business you start. However, you don't want to get wiped out financially or emotionally by a business that's just too risky. A viable home business idea should not have you breaking the bank. Low start-up costs are one of the

reasons why people work from home in the first place. Also, stay away from small business ideas that require you to pay them for the privilege of doing business. There are many considerations to make when starting a new business, and there are many small business ideas to choose from. Only consider the ones that are viable, and be sure to weigh other important factors, such as your skills and training, the market and the competition.

Assignment of entrepreneurship and managing small medium business

submitted by AmanJyot Singh 1274722

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