Few tips to kick start your business

As the global pandemic shrinks employment opportunities, people are now more geared towards investing in business to earn livelihood. A wave of new businesses initiatives has been observed in the social media platforms since the start of the pandemic. This is positive news as the government has been encouraging young people to start investing in business instead of looking for jobs.

However, starting a new business is often challenging for the new entrepreneurs and knowing fundamental things can help start and operate a business well.  

Examine the idea upfront: The most common mistake new entrepreneurs make is going after any idea. While this can be good for gathering experience, experts suggest some market research before starting the business. Better to spend on early research than to waste later. If you are exicited about your idea, let the research back you up. Talk to the people in the sector to know the challenges they are facing. Answer yourself some fundamental questions like what is the market size and what problem of the existing market your product will solve.

Address compliance issues from day one: Many entrepreneurs in Bangladesh do not address compliance issues at all and it is a dangerous mistake. Know the paperwork and licensing needed to turn a particular idea into a business venture. This is a must for a business of any size because without compliance to the local laws your business will never be able to go mainstream. Lack of compliance can create serious problems as your business grows. Compliance protocols can vary from sector to sector and the sensible approach is to talk to a business lawyer to familiarize yourself with the issues better.

Keep the production line small and know your market: If you are producing completely new products, keep your production line small. This helps to mitigate risks and also enables you to correct the process until it become efficient and standard.

Adopt technology-based solutions: Find ways in which you can reduce your operation cost. Look for technology-based solutions. For example, connecting directly to your consumers through a website will help you to maximize profit at a low price point. Third party delivery systems will help you to reduce logistics costs. There are many companies that will help you deliver your products to your customers and it is always better to look for organizations that will maintain your IT infrastructure. Companies like 22digitals are helping new businesses to maintain their IT infrastructures. 22digitals will develop your website and maintain it at an affordabe cost. There is equity partnership option as well which will save your precious cash up front and give you the strengt of a strong tecnology partner on board.

Go international: Always keep the global aspect in mind while you design your product. Because exporting something creates extraordinary value to a company. Companies like Merchant Bay are helping Bangladeshi SME’s to connect with international buyers. Register your company in Merchant Bay website to get international exposure. It’s free and convenient!

Where to look for funds?

Most often young people avoid business altogether because they believe they don’t have enough money to start with. While traditional funding channels are there for traditional business projects, experts encourage entrepreneurs to start with whatever they have. If you invest some small amount up front, it will give investors a positive notion that you are serious about what you are doing, do not just wait for the click. If you have the initial money that’s great; if not try getting friends and family to invest in your business or try finding angel investors. Anyone who has money to invest will want to invest in a good business idea which can give a good return, you just have to reach out and present. One recommendation is: do not go for high interest short term loan or any other form of loan in the starting. Go for equity partnership. But negotiate carefully as you do not want to lose too much equity can create problems in the long run. 

If you don’t have any fund or none of the friends and family want to invest in your idea, no problem! Give a try on the crowdfunding platforms. In Bangladesh we have the1percent.net where you can raise fund for your project if your idea is directly solving a social problem and you want to introduce it as a social business.

Lastly, stay positive throughout. Being an entrepreneur is a journey and this journey requires a lot of time and patience. Believe in your examined idea, comply with the local business laws, maintain highest quality of your product, commit yourself and adopt technology-based solutions for your business.