Question

Kindly write the major steps in the start-up process? Explain with examples. What are the major source to finance a start-up?

write at-least 3 pages of Information and no plagiarism  

Answer 1

Start up means to initiate or establish any business which requires hard- work, dedication, money and some sleepless night( definitely with the thought of execution of idea or business plan).

Once you get your company off the ground, you need to work hard to keep it going each year.

As per my opinion, there are some major steps need to be btaken for start- up.

1. Make a business plan- A proper business plan is required for start-up. Business plan is the written description of company' s future. One outline which explain what to do and how to do. It depicts the first 3 to 5 years of business strategy.

2. Funding- Second most important stepnis to arrange adequate capital. The start- up cost will vary from industry to industry. So, company may require more or less funding depending on the situation.

82% of business fail due to cash flow problem So you must have proper planning for arranging the fund as well as you should have backup plan for arranging the fund.

3. Accompany of right people- Business is not a easy task and an individual is not enough for executing any business plan. So you need some help while launching a start up company.Some staff and managers are required for running the business smoothly.

Suppose we are going to start a restaurant we would need servers, kitchen staff, bartenders and managers.

4. Location finalization and build a website- Startup company needs a physical address and website address.

Whether it is offices, retail space or a manufacturing location you need to buy or lease a property to operate the business.

5.Requirement a marketing expert- You need a marketing expert who must be aware with different marketing strategies and techniques of digital marketing for promoting the product/launch of new product.

6. Build a customer base-Getting a customer to make a purchase is the major step to acquire customer and maintain client base should be main priority. They are lifelines of business.

Primary source of funding:

Sources of financing for small business or startup can be divided into two parts.

Equity financing and Debt financing

Some major source of funding the business

1. Personal saving- This is the most appealing source of financing.

2. Family and Friends-;The aim of this type of funding is to help kickoff a business to a point where it can seek and get other types of funding.

3. Business Angels- They are wealthy individuals who will provide funding in exchange for a share of equity in the business.

4. Venture capital- Venture capital are investors who put in a considerable amount of money in exchange for equity in the business or get returns when the business goes public or is acquired by another company.

5. Bank loans- This is the most popular source of funding.

6. Government assistant- This is a small business loan which is provided by government for assisting a new business.