Step-by-step approach for starting a new venture

Step-by-step approach / Important stages in starting a new venture

An enterprise also means an undertaking, a business firm or venture. Here is a step-by-step approach for starting a new venture. These can be divided into three stages:

Step-by-step approach for starting a new venture

Step-by-step approach for starting a new venture

  1. Pre-launch Stage
  2. Launch Stage
  3. Post launch Stage

A step by step approach is provided to assist the potential entrepreneur.

1. Pre launch Stage

The following steps are involved in a Pre-launch stage in starting of a new venture.

1. Identify, Analyze and Decide on the business idea.

2. Analysis of strengths, weaknesses, opportunities and threats.

3. Analyze competition and select the positioning strategy.

4. Estimate and forecast the market size, growth and marketing feasibility which involves measurement of demand — supply gap.

5. Whether to be an ancillary unit.

6. Understand the technology, process and selection of the idea.

7. Decide on the size of the enterprise in terms of production capacity, employees.

8. Decide on the location of the venture.

9. Identify the incentives given by the Government to promote the small and medium industries.

10. Understand the relevant laws which are applicable for the business.

11. Analyse the business idea as opportunity in terms of Profit, costs, expenditure, income, sales, market share.

12. Estimation of manpower requirements.

Pre-Launch Stage of a new venture involves collection of information through primary and secondary sources of data. It is a critical stage. The skills that are required are entrepreneurial skills of business opportunity identification and analytical skills.

The functional areas of marketing and finance dominate this stage. Forecasting skills are also required in this stage.

2. Launch Stage

1. Selection of the Name of the enterprise.

2. Hiring or construction of building

3. Deciding on the ownership pattern — sole proprietor, partnership, private or public limited company and limited liability partnership.

4. Registration of the firm. If it is a partnership firm, then agreements has to be signed. The registration processes of SMEs have been streamlined.

Now provisional registration certificate can be obtained online with District Industries Centre.

5. Preparation of business plan and project report.

6. Deciding on the product mix and markets to serve.

7. Application for loan to banks. If private or public, issue of shares.

8. Raising of finance.

9. Ordering and installation of machinery.

10. Recruitment of people.

11. Deciding on the channel of distribution.

12. Sources of raw materials to be finalized and purchases made.

13. Production started.

14. Products to be made available in the market.

In Launch stage of a new venture, operational actions and decisions are taken. It requires managerial skills of coordination with the various agencies. Project management skills are required.

There is lead time from planning to implementation stage. Close monitoring has to be made to see that the launch is as per the plan. Delay will increase the cost and have impact on the finances of the firm.

3. Post Launch

1. Teething problems to be solved.

2. Systems to be developed in all the areas of management

3. Feedback on the product

4. Changes if needed to be introduced.

5. Expansion decisions.

After launch of the business, the gestation period varies from one to three years. The provisional certificate is valid for a year. After commencement of business, permanent certificate is to be obtained from District Industries Centre.

An entrepreneur has to plan and prepare for this critical period. The profits will start flowing once the business settles down. All the businesses may not succeed, so mental preparation for failure and exit route should also be a part of the business plan.

Leave a Reply

This site uses Akismet to reduce spam. .




Recent Posts


Related pages


wagering contractdefections definitionfunctions of sebimerits and demerits of cluster samplingnpv advantages and disadvantagesexport merchant definitiondifference between managerial accounting and financial accountingcontents of audit programmewhat is an underwriter in financecheque meaning and definitionaccounting concepts and conventionsdifference between accountant and finance managernationalized banks in indiaessentials of a valid contract of salemiddlemen definitiondisadvantages of traditional commercefinancial markets and intermediariesurbanized definitiondefine exportervoid ab initio legal definitionfranchise benefits and drawbacksfirm allotmentactivity based costing in manufacturing industryrole of irdathe meaning of autocracycluster sampling examples in statisticsretailing meaning and definitionwho is bailor and baileegeneral agreement on tariffs and trade objectivesdefine conglomerate mergeradvantage of socialismnet gearing ratio formulaadvantages and disadvantages of activity based costingadvantages of buying a franchisedefine sampling theorywhat is recurrent expenditure and capital expendituremeaning of principle in hindidefine profit motivedefinition of shares and debenturesultr viresappose totrade receivables debtorse commerce advantage and disadvantagereceivable turnover calculatorformat for precis writingreceivables turnover rationcapital employed turnover ratio formulatqm in marketingrights of unpaid seller against the buyerconcept of circular flowdistinction between mergers and acquisitionsthe essentials of a valid contractwhat does gatt meansole trading concern definitionconcept of elasticity of demandcommercial impracticability legal definitiondisadvantage of systematic samplingbanker book evidence actmeaning of bill of exchange negotiable instrumentthree examples of an opinion leadervarious methods of sales forecastingthe formula for the labor price variance isqualities of ratan tatacalculate profitability indexcharacteristics of a good chartered accountantsample precis writing examplesmanagement accounting cash budgetdefine marine insuranceloan audit checklistadvantages of debt factoringdisadvantages of capitalist economic systemspeculation stock market definitioncentralized vs decentralized organizationconvertible redeemable preference sharesjuristic person definitionaccount receivable collection period