2 min read
14-June-2024

    When you’re on the path to becoming a business owner, an exciting idea is just the starting point. Ensure that you are doing what you love, fulfilling a purpose through your products or services and creating a consistent revenue stream for yourself and your employees. These tips will help you become a successful business owner.

1. Create a sound business and financial plan—and revisit it as often as you can

The first thing to do is to prepare the objectives, mission, and purpose of your business and do a SWOT analysis. A business plan will not only help you formalize your ideas and give you a sense of direction, but also help stakeholders find the value in your business and help you get a business loan easily when you need funding. Next, work on the financial plan. Take into consideration the needed cash flow, future cash flow requirements, value of assets, tax reduction strategy, financial goals and short- and long-term revenue forecasts. A well-planned financial blueprint is the foundation on which your business is built, and helps you make the most effective use of your resources. But, ensure that you keep an eye on this plan and revise it every month and every year as your business grows.

Additional Read: How to make a business plan for getting a business loan

2. Count on your experience—and do what you know best

You may think that background or past work experience isn’t what defines successful business owners, but it often does. When starting a business, take your own experience into account, and do what you know best. This ensures that you take business decisions with confidence, and have knowledge of the industry you’re working in. Attention to detail is often what makes one business stand out from another, and having prior experience allows you to have intimate knowledge of the industry you’re now a part of.

3. Learn how to manage working capital—and find ways to keep cash flow steady

Understand the ebb and flow of income and expenses and you will have your finger on the pulse of your business. Manage your working capital well, and your business is less likely to face financial problems. Think of ways to reduce expenses by increasing efficiency and decreasing your operational expenses, negotiate with vendors for better prices on inventory or hire more productive staff members. Increase your sales and collect revenue in time-efficient ways to maintain your working capital cycle. Anticipate any gaps in working capital and arrange for finance to keep your daily operations strong. One way of doing that is by identifying a good working capital loan that doesn’t require you to pledge any business assets as security.

Additional Read: Working capital management tips for your trading business

4. Hire self-starters and specialists—so you’re not doing everything yourself

Most small business owners end up doing a lot of work themselves. Rather than acting as the temporary head of departments like marketing, recruitment, finance, accounting, technology, and sales, take a step back. See what you can handle based on your experience and skills, and then hire experts or specialist consultants. This will help your business as much as it helps you. Next, hire your employees carefully. Choose those who don’t need to be spoon-fed. An employee who is a self-starter can take a huge load off your shoulders, while ensuring that tasks are done properly and efficiently. Rather than filling desks with juniors, budget for higher salaries for senior staff who can help you set up your business.

5. Become adept at inventory management—and save time and money

Figure out a means of tracking, storing and ordering inventory to help your business manage its most important asset effectively. Taking decisive action concerning your inventory—such as what raw material needs to be ordered to meet seasonal demand or what is ready to be sold—ensures that your business revenues are always on a rise. Rather than being disorganized about it, adopt an inventory management techniques like Materials Requirement Planning, which is dependent on sales predictions or Just-In-Time inventory management, which is based on short-term needs.

As you build your business, it is imperative to think ahead and ensure that your financial foundation is strong, thus ensuring steady growth.

Additional Read: How business loans can help you successfully implement a big project

DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.

*Terms and conditions apply

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

Disclaimer

  1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

  2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information.  Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.