5 steps to start a small business and get it financed

Updated: Dec 10, 2018

Starting a business might sound overwhelming for many of us but if we break down the future journey into easy, manageable steps, then we can definitely climb the ladder of success. Consistency, dedication, ability to fight against obstacles and being a visionary are some of the qualities needed for a small business owner to thrive and succeed.

Some of the convenient and reasonable small business ideas can be listed as follows:

  1. Online Store

  2. Travel Planning

  3. Electronics Repair Services

  4. Food delivery service

  5. Wedding planning service

  6. Poultry Farm

  7. Security Agency

There are plenty of business ideas, but you need dedication, passion and relentless hard work to make it a success.

Following are the 5 steps to start a small business

1. Prepare a Business Plan and a Budget

You need to have a robust business plan, with a complete record of the costs involved, expenses to be incurred, manpower needed, resources needed, and finance required. Before you invest money into your business, you should be able to test your ideas without incurring any costs.

Though budgeting sounds challenging, you need to have a budget for every penny involved in your business. Only then, you can determine the profitability of your business.

Do not mix up passion and profit. Always be realistic.

2. Determine the paperwork involved

You need to determine what are the legal formalities involved to start a small business. Do you require certain permissions form the government, city licensing authorities, and other entities? Also, calculate the fees or charges to be paid with this regard. Take small, smart steps before establishing a sustainable business model. Seek advice from consultants who have expertise in these fields. You may also have to register your business with local authority.

3. Manage your money

A big mistake committed by small business owners is that they mix up their personal finances with the business money. During this stage, make sure that you differentiate between personal and business finances. You might need to do extra paperwork but it is essential in the long run. Separating the finances will also provide you with ease and an understanding about money inflows and outflows.

4. Build an online presence

Apart from physical presence, every small business needs an online presence. Your business requires a powerful domain name. One can check out the reasonable packages offered by the web portals.

5. Test before you actually start

Many small businesses tend to skip this essential step. Analyze how you can market your products or services at reasonable costs. You can test for some time and figure out the response. Once you receive the green signal, you are good to go.

For your financing needs here are few small business loan providers

Bajaj Finserv : It provides business loans to small businesses for expanding their operations, improving revenue generation and competitiveness.

  • Pros: Low rates of interest, flexible repayment alternatives.

  • Cons: There might be some hidden charges, so be prudent in this regard.

HDB Financial Services (HDBFS) : After understanding one’s business requirements, HDB comes up with customized loan solutions. These finances are good for business expansion.

  • Pros: Doorstep services, friendly customer service.

  • Cons: High processing fees and interest rates.

Fullerton India : It is helpful for growth of SMEs, one can check out loans offered by Fullerton India.

  • Pros: Tailor-made business loans, covers all financial needs of a business.

  • Cons: Some customers are not satisfied with the interest rates offered by the company. Hence, check the same beforehand.

A small business needs dedication and perseverance align with the industry. Also, one can definitely seek for financial solutions. If you have any questions or doubts please join our community forum, truebanker expert may answer your questions.

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