Home to numerous IT offshoring companies and multiple unicorn tech start-ups, the future of India’s economy seems to be much depended on such new business ventures. As of the present, India stands at an economic crossroad with a simultaneous build-up of indigenous start-ups.

With Startup India Action Plan, a higher corpus fund, more accessible patent filings, multiple incubation centres, and tax exemption, there have been numerous government endeavours to assist entrepreneurs.

Consequently, according to the Global Entrepreneurship Monitor (GEM) Survey, India’s ease-of-business rating for 2019 stood at 67.23 (out of 100) and its rate of starting a business is 80.96 (out of 100).

Along these lines, entrepreneurs across the nation have been acknowledging all the essential aspects, which are deemed crucial in starting a firm. It includes what business suits their intents the best, knowing what is a supply chain, etc.

Apart from this, there are a few skills that entrepreneurs need to be well-acquainted with. It ensures the smooth running of a business.

1. Strategy formulation

Considering that starting a business requires one to invest a substantial amount and time in setting it up, a detailed and infallible plan is a mandate. Planning for a business requires involving the following steps –

Step 1 – Do extensive market research and find your business niche.

Step 2 – Settle on the product or service to be offered.

Step 3 – Analyse your competition in details.

Step 4 – Decide upon the location of your service (irrespective of whether it is online or offline).

With such a blueprint of the business in target, computing the financial requirements would be a convenient affair. It requires entrepreneurs to have a complete hold on strategy formulation as a priority skill.

2. Financial management

Taking into account that the first few years of business will witness a financial crunch, a strategic approach to organise your business finances is essential.

It includes looking into a few aspects of your genre of trade –

− Raw materials,
− Logistics,
− Machinery,
− Employee salary,
− Marketing, etc.

 

In short, entrepreneurs need to calculate their supply chain finance (SFC) requirements. Considering the potential that it holds to optimise the working capital of a business, it is ideally imperative to have an in-depth understanding of the same.

supply chain

Taking into account that potential business owners have an idea about what is supply chain management (SCM), here is how it functions –

● SCF comprises two categories – physical and financial. Each financial intervention in SC is driven by a trigger in the physical supply chain. Few such examples of triggers can be listed out, viz. –
− Invoices raised by sellers,
− Purchase orders,
− Goods accepted by buyers,
− Shipment of merchandise, etc.
● It encourages collaboration between sellers and buyers, thereby streamlining business operations.

While strengthening the supply chain finance is a prerequisite to run an efficient business, it requires considerable funding.

Catering to this demand, entrepreneurs can also approach reputed NBFCs like Bajaj Finserv and avail their financial assistance targeted to aid entrepreneurs like Business Loans.

Apart from this, the company brings pre-approved offers. Under this, the application process to avail financial assistance becomes hassle-free and consumes less time.

3. Relationship building

Building mutually beneficial business relationships are imperative, considering the long-term advantages that it can fetch. Entrepreneurs need to chisel such skills when it comes to being active in their community and collaborating with other firms.

It includes seeking out opportunities to cross-promote with trades that share interests with yours.

With such skill at their disposal, running a business becomes convenient. However, entrepreneurs need to be particular about the audience they want to target and lookout for a product or service that holds excellent potential in the contemporary market.

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