How To Start A Business In 2022 – Forbes Advisor INDIA

A lot has changed in the business and economic landscape in the past six to eight months. And while India continues to hold on to its status as the world’s third-largest startup ecosystem, all indicators suggest that some of the market’s exuberance is fading as venture capital flows slow and company valuations fall amid volatility. What does all this mean for those looking to start their own business in 2022? How can they get their business plans off the ground despite the current economic uncertainty?

The ABC of starting a business in 2022

Below are some key steps for those looking to take the entrepreneurial leap soon.

Observe and identify

The pandemic has resulted in a significant shift in consumer preferences, behaviors and habits, and these new patterns will persist. Anyone starting a new company must therefore be aware of this and tailor their business idea to it. One of the biggest mistakes entrepreneurs make is trying to come up with solutions before they even spot a problem. While this mistake is always costly, it could be disastrous for a new entrepreneur in a post-pandemic market that is highly volatile and competitive. As a first step, ask yourself the following questions:

• “What is the problem I want to address?”: Properly identifying customer pain points is probably one of the most important steps for any entrepreneur, because the goal of any business is to somehow make things easier for the end user.

• “Is there a real need for this business?”: A good business idea is not just something you need; it must be a product or service that needs a large group of consumers in the market.

• “Which gaps in the industry did I choose to start my business?”: Market gaps are essentially hidden opportunities waiting to be exploited. It’s up to you as an entrepreneur to recognize these gaps and build a business that can help fill them.

Every branch and industry has a potential gap that new ideas can solve. Today, for example, Paytm is a full-fledged payments and financial services company with a range of offerings. However, once it went live, one of the first customer pain points it solved was prepaid cell phone top-ups, which required customers to go to the store and grapple with lengthy scratch card passwords, making it an overall cumbersome process.

Paytm offered a hassle-free alternative and solved this problem through the use of technology. Today, the company has millions of users and its success can be attributed to the fact that it has almost always correctly identified market gaps and worked to solve customer problems.

target market

Market research is considered to be the longest, most strenuous and yet most important step on the way to successfully founding a company. For those looking to start their own business in 2022, this step is all the more important as the pandemic has led to increased market fragmentation; Because of this, first-time entrepreneurs must create a safe and defensible audience.

To identify gaps in the market, to clearly delineate a target group and to really understand their problems, needs and desires; You need to do your due diligence and talk to your potential customers.

Here’s a quick hack that can help you do your market research better:

As much as possible, make sure you are part of your target market. This will ensure a deeper understanding of the issues, needs and opportunities of the sector in which you wish to establish your business. For example, if you are looking to build a fintech business and have been in the financial services business for some time, you will spot gaps quickly and respond to the needs of your customers.

On the other hand, if you don’t understand the financial services industry, don’t dabble in money markets, or have never worked in the sector, you’ll have to struggle to understand the basics yourself. This principle can be applied to all types of companies. So, before you start mapping your business idea, it’s important to ask yourself a few key questions:

• “What am I interested in and does that overlap with my area of ​​expertise?”
• “In which area do I think, study and read the most?”
• “Am I willing to accept uncertainty and stand up for my beliefs?”

Create a business plan and write it down

Seen by many as a superfluous step, writing a business plan actually has many benefits. For starters, it provides a quick yet deep dive into your business idea and overall vision. It also proves to be a useful document for potential investors and future stakeholders.

A well-crafted business plan is like a roadmap, laying out marketing, financial, operational details, and mentioning all other essential points that are critical to the success of your business. A good business plan must always contain the following.

• The problem and pain points your company wants to solve
• target group
• A brief explanation of what exactly your company will do
• marketing strategy
• Financial plans that explain how you plan to raise capital and ensure the business is profitable
• Research on market competition
• An honest analysis of your company’s strengths and weaknesses

all capital

Lack of funding is one of the main reasons why startups or new businesses either fail to take off or are forced to liquidate a business soon after inception. Therefore, having a solid financial plan before starting your business is critical to success.

Most young entrepreneurs typically choose the personal financing route, typically raising funds from friends or family or contributing their own savings. There is also the coveted path of venture capitalist (VC) or angel investor.

Additionally, you can also explore business lending and crowdfunding options. Most novice business owners choose one or more of these options and raise funds through a combination of avenues. Whatever your financing plans, it is crucial to plan your finances and allocate partial budgets for each purpose such as paying salaries or renting office space, etc.

Pro Tip: When thinking about how your business will make money, it’s important to consider whether you can create a recurring revenue stream. In this way, your company remains profitable in the long term and your liquidity is not burdened.

Choose a business model, but be ready to flip

A business model is essentially a strategy that defines how your idea will add value to your customers and make money from it. Your business model could be a SaaS or e-commerce model or a consulting service, it all depends on what needs you want to fulfill in your chosen market.

However, there is one thing you need to know when starting your own business – business plans change and evolve based on market conditions and changing needs. Until your product or service is launched, you don’t really know if a customer’s needs have actually been met. Therefore, no plan can ever be static and there must always be room for improvement, improvisation and further innovation.

bottom line

In a competitive economic climate like that of 2022, driven by technology and significant market volatility, myopia is not an option. Therefore, as an entrepreneur, you must have a five-year vision and a strong plan for the future. Also, remember to think agile and not be afraid to admit wrong decisions; Accept your mistakes and then resort to a course correction.

Remember that starting your own business is never easy. There will always be risks, fears, and voices from those who don’t support you or believe in you. The most important thing to know is that nothing lasts forever – both successes and failures will come and go, in fact they are a rite of passage on the entrepreneurial journey. The important thing is that you keep an eye on the price and keep working towards your goal.