setting up businesses by capital tree

The choice also depends upon individual’s capacity to raise the necessary business funding which is needed to set-up a businesses, technical know-how, necessary skilling etc.  However, the doing business involves a lot of challenges and only those businesses become successful which are able to identify and devise a strategy in advance to overcome these challenges.

What is the most important factor to succeed in the business?

It is very important to understand that the present days of opening up of economy and removal of trade barriers (both explicit and implicit) has opened both new opportunities and challenges, especially for young age emerging entrepreneurs. Resultantly, many new age entrepreneurs (or first stage entrepreneurs) are emerging in a galaxy of successful business leadership. In-spite of the fact that these emerging businesses in their initial stage of businesses lacked sufficient financial ability to compete with the rival businesses. The main cause which has contributed to their success in the business is their ability to bring improvisation in the traditional business method by offering a better product and services to the end users at competitive pricing.

The general challenges faced by young stage entrepreneurs in every business vis-à-vis their mitigation steps are as under –

Sr. No. Industry Challenges Importance Mitigation Key Impact
1. Funding Challenges Implicit Entry Barrier for long · External Funding Sources through Govt. Schemes / Start-Up & VC Funds Increased Funding Appetite due to supportive Govt. A policy of increasing participation of new age business.
2. Technical Know-how Direct Entry Barrier

· Technical knowledge enhancement through technical centers / vocational knowledge and skill enhancement.

· A technical Know-how gained during employment.

· Engaging Project Management Consultants (PMC).

Introduction of Modern and Sophisticated technology which makes no distinction in existing or new businesses.
3. Potential Markets Long Gestation Period

· The cost-consciousness on the part of customers has prompted him to look for alternative solutions.

· New marketing technology based on the online and digital Platform.

Innovations in Product and Service Offerings find their market easier and faster. The role of middleman got reducing considerably due to technology.
4. Management Control and Supervision Important · Controls become easier through introduction of Technology which is easier to operate and monitor

 

Administrative Cost getting reduced due to the introduction of technology.
5. Manpower Management Very Important · Higher Productivity of Manpower through better training, skilling, and pay-out. Directly connect with the young age start-up helping to create a motivated workforce.

 

Preliminary Steps to Required to Set Up a Businesses

 

The following steps are generally required in setting up of a successful business are

 

Step 1. Identification of Business Idea ·      Uniqueness – In the sense that it offers some extra tangible offerings to end customer whether it is pricing, quality or otherwise

·      Me Too Concept – Where the business works on the model of existing businesses. It works in a scenario where there is the abundance of demand.

Step 2 Fund Raising ·     Identify the internal funding source for the first roll out of operations. In case, there is uniqueness in the product and service offering and some proof of concept is there which shows the consistency and repeat demand will eventually find a target investor.

·     It is generally ideal to go for a Debt Funding product in case of “Me Too” Business segment. However, collateral security may become a challenge for such kind of business.

 

Step 3 Business Form The suitable choice of the business form largely depends upon the nature of the funding/taxation policy/branding etc.
Step 4 Registration and Licenses After the formation of the business entity, such entity may be required to obtain a number of Statutory Registrations such as PAN Card, TAN No., GST Registrations etc.
Step 5 Other Steps ·         Bring the funding directly to the business entity as per business plan

·         Work on the Product and service set-up infrastructure as may be desired

·         Recruit Manpower as per the requirements

·         Marketing Efforts – Offline and Online

 

In case you have a business idea, our team can help in fostering the business idea in line with your thought process through our possible value addition in various ways. Please do write us your query at info@capitaltree.co.in

how can we help you?

Contact us at the Capital Tree Financial Solution office nearest to you or submit a business inquiry online.

“Capital Tree helped me in raising Long-Term Funds for my business requirements. I have found their services to be utmost professional and sincere in nature. Besides fundraising, they have advised me immensely on overall improvement of my financial profile. I wish them all success in their endeavors.

Mukesh Kumar
MD, SUPERLATIVE E-COMMERCE INDIA PRIVATE LIMITED

We had a very good experience in availing the services of Capital Tree in our Equity Raising endeavor. They have brought substantial value addition in various aspects from Planning to the Execution stage. We really admire their work and approach and wish them all success.

Shivani Sheikh
Director, Shera Energy Private Ltd.

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