Introduction
We enable you to start a business with a capital of Rs 3 lakh. The following businesses and their models are discussed in this article:
- Blogging
- Content writing
- Ghostwriting
- Playschool /crèche
- Account keeping
- Interior designing
- Coaching classes
- Bakery business
- Tiffin services
- Salon business
- LED light manufacturing
- T-shirt printing
- Gift shop
- Soap making
- Refurbished items
The content provides you following information about these businesses:
- Finances
- Cost
- ROI
- Location
- Equipment
- Raw material
- Training
- Market research
- Manpower planning
- Marketing
- License
Evaluate your business idea before investing in it using the following step:
Key Outcomes
- Start business within the Rs.3 lakhs budget with the help of this course
- Determine the finance, cost, and ROI involved in a business before starting it
- Do manpower planning to know the human resource requirements for your business
- Do market research to know your target market
Evaluating business idea hit or flop
To learn how to evaluate any business idea
1. Property Needed
To start a business and run it smoothly, a specific place/space is required.
For example, if you do not have a property to run a restaurant business, then you need to take a property on lease. For this, you will have to arrange an enormous security amount equivalent to 3 to 4 months’ rent of that property. As a result, you will face problems in bearing all other expenses like inventory, salary, grocery, etc.
You should ask yourself the following questions before making any property related decisions for a business:
- Do you need any land or office for the business?
- Whether the property should be on rent or lease?
- What will be the rental cost per month?
- What will be the security deposit amount?
- What will be the maintenance cost of the property?
- What will be the renovation cost?
Answers to the above questions help you to find out the cost related to property and take the right decisions.
2. Market Size/Market Demand
You should evaluate the demand for your product/service by determining:
- What will be the demand for your product/service in the local market?
- What will be the market size?
You should do proper research on the following before starting a business:
- Relevant trends
- Technology
- Changes
- Economic aspects
- Product demand
Ask the following question to know whether a product or service to be launched in a specific market or not:
- Whether your business idea is practical?
- Who are your customers?
- What is the current size of the market?
- What is the potential growth of the market?
- What market size you can capture gradually?
Answers to these questions will help you to know how feasible your business idea is, for how long the business idea will work, or when to exit from the business.
3. Address a Burning Problem
To run a business, it is very important to address the burning problem of your customers. A business grows when it can solve the burning problem of its target customers.
For example, Google is the number 1 search engine because it has understood the need of the customers and solved their burning problem
4. Competition
A business should have competition. If a product does not have any competition, then check whether it is required in the market. Competition is always good for a business because it will constantly help you to make your product or service better. Focus on the following things, if competition exists:
- Does the product or service already exist?
- What improvements can be done in the existing products?
- Who are your competitors, how much presence they have in the market, and who are their customers?
- What are the areas where your competitor needs improvement?
Your product/service USP should be around where the improvement is needed for the already launched product/service of your competitor, this will attract the customers.
5. Know Your Customers
It is very important to know your customers. You can find your customer in places like:
- Trade shows
- Events
- Social gathering
- Social media
You should always take customer feedback to know the taste and preferences of the customers.
To understand this, you should answer the following questions:
- What are the buying habits of the customers?
- What is the age of the customers?
- What is the income of the customers?
- Which gender group uses the product most?
- What is the address of the customers’?
- Are the customers able to afford the product or service?
- What is the buying behaviour of the customers?
- What are the instances when they buy the product?
- How many times do they buy the product?
6. Manpower
For getting the right people to work for you, focus on the following questions:
- How many employees do you require at the starting of the business?
- In which department you need the maximum number of employees?
- From where can you hire the right talent?
- What type of training (technical skills/technology/negotiation/sales/people handling) employees will need?
7. Financial Aspects
It includes the following things:
- Cost
- Funding
- Cash flow
Ensure you have a cash flow for 6 to 10 months to manage the risks of the business.
You should arrange funds after anticipating long-term and short-term gains.
You should also calculate the returns from the project
Key Outcomes
- Focus on the checklist to make your business a hit
- Check whether your product or service has a demand in the market or not
- Check the financial aspects of your business to get success