Assignment-08

Case Study on New Venture Establishment

Subject – PDE (3161916)

Made by:- RAJPUT PRIYANK LAXMIKANT (200180119551)

Batch: MA5
What is Venture??
Venture is a shortened form of adventure. This happened sometime
between 1100 CE and 1400 CE during the time that Middle English
was spoken.
Venture also means taking risks which one may undertake for the
sake of growth and development.
In our subject ‘Venture’ also stand for starting a new business.
Starting a Business
Starting a business requires a lot of work. The amount of
documentation, legal requirements, and strategic development can
simply be overwhelming.
But without putting in the effort, you’ll struggle to turn your idea
into a successful business.
Keep things realistic, while telling yourself that it is 100% possible to
start your own business. It’s going to take time, effort, and
potentially a few setbacks, but you can do it.
How to Start a new Business
The difference between small business owners succeeding or failing is the
foundation built when you first start a business.
Thorough preparation allows small business owners to chart a strong course
when starting a business while still allowing you to adapt to changing
situations.
Starting a new business involves careful planning, making key financial
decisions, completing a series of key legal activities, developing your brand
identity, selecting the right products and services, and building an online
presence.
1-Find a great idea and conduct market research

You can’t start a business and build a successful one without a great idea.
Insights, strategies, and tips on how to find a great business idea and how
to properly conduct market research to decide if you can create a
competitive advantage and turn your idea into a profitable and sustainable
business.
When starting a business, you need to consider your strengths, weaknesses,
and interests. After all, the most basic question you can answer is why do
you want to start a company? The answer to that question will help you
focus on a single idea.
An idea is a business opportunity, But, although there are many small
business ideas, not all are great or a good fit for every person.
Conduct Market research
Before you dive into your business plan, it’s important to know the target
market you’re entering.
Conducting thorough market research in your intended target market and
understanding the demographics of your target customers and potential target
customers will help you write your business plan and will also help you build a
sustainable, successful business.
Who is the direct competition?
Is someone else already doing what you want to do?
If not, is there a reason why that is?
2-Write a Business plan
A business plan can help you to crystallize your ideas and provides a roadmap for how
to structure, run, and grow your business. You’ll use your business plan to convince
others to invest in your business, to partner with you, or to loan you money.
 A business plan isn’t required when starting a business, but it can help you to
crystallize your ideas.
In fact, people make a lot of mistakes when they start a new business and rush into
things before considering the important aspects of their business. And don’t worry if
you have limited time to write a business plan.
Some business owners write a traditional business plan, while others work on a more
compact one page business plan, like the business model canvas, that highlights the
most important information.
 3-Pick a business structure and other important legal issues

Your business structure affects everything, from how you file your taxes,
to your personal liability, to whether you need to comply with any special
government requirements.
Understand these important legal issues to minimize risk and prepare for
what’s ahead. This is especially important when you start a business in the
United States.
Decide Business Structure
Before you can register your company and operate lawfully, you need to decide
on the legal structure for your business entity and register your business. You
must do this even if you operate a small business.
Your legal structure affects everything, from how you file your taxes and the
tax treatment of your revenues and expenses, to your personal liability, to
whether you need to comply with any special additional requirements at the
local, state, or national level.
While it might be tempting to operate your business as a sole proprietorship,
you should research and assess the other legal structures (like a limited liability
company (LLC), or a C corporation) available to shield you from liability and
reduce legal risk.
Registering Business/Licensing Business
All states require that you register your business with the government. Also,
remember that most states require you to register your business as a DBA
(doing business as) if the trade name under which you operate your business
differs from the legal name of your business.
 This requirement is separate from the requirement that you obtain all necessary
licenses and permits.
 In some cases, you may need federal, state, or local licenses and permits to
operate your business. Small business owners are not exempt from the
requirement to obtain necessary licenses and permits. This requirement applies
to businesses of all sizes. Licenses and permits are designed to protect the
public from someone operating a business unlawfully or improperly.
4-Create Strong Brand Identity
Brand identity is what you, customers, and prospective customers can see. It
includes your business name and company logo. A strong brand identity
increases the value of your company, builds loyalty, and makes it easier for you
to acquire new customers.
Your brand name is the single most important identifier for your new company.
It’s how your customers will identify and remember you. It’s part of your
company’s brand identity and will influence your logo design and your entire
visual brand.
So, it’s not a decision that you should take lightly. And remember to do
trademark research to be sure the name doesn’t violate the trademark rights of
another business.
Building online presence
Your company website is one of your new business’s most important
ambassadors and a crucial component of your marketing and branding strategy.
A recent study shows that 97% of consumers research their purchases online
on a company website before they buy something. And if you’re building an
ecommerce store, a company website is essential.
If your small business isn’t maximizing the benefits of being present online,
you are not alone. However, many of your competitors have built a credible
online presence and as a result, are likely pulling ahead of you.
5-Accounting, insurance, location, and other financial issues

You can’t start a business without assessing important financial issues that will
protect you and enable you to create a strong and profitable business. We share
insights, strategies, and tips to help you do just that.
Before you get started, you’ll need to look closely at your finances. That’s because
money is the foundation of any business, especially a sustainable business. And
startup costs can vary widely depending on the small business you plan to start.
In order to keep track of your finances, you’ll need to set up a bookkeeping and
accounting system. This is important so that you understand your business’s cash
flow and will also be important for tax-filing purposes.
Your accounting and bookkeeping system will include income, expenses, capital
expenditures, profit, loss, EBITDA, etc.
Location/Insurance for Business
If you’re building a retail or physical business, location is important. It is
important to understand your employee demographics when choosing a
business location, how to assess foot traffic to make sure the business location
brings in passing customers, how to assess parking and accessibility for your
business location and office space, and much more.
You’d be surprised how many new business owners forget to protect
themselves and their business by purchasing business insurance before they
start a business.
It doesn’t help you to buy business insurance after you started your business
and incurred claims against you or your business. You should secure insurance
coverage right when you start a business.
6-Funding for Business
Investors: In a perfect world, we could all fund our own business ventures
without any outside help. But, the truth is that most people can’t do it alone. As
a side benefit, your investors can also potentially stay involved on your board
of directors as you grow your business.
Banks: Debt Financing, Collateral investing etc.
Some business owners don’t want to bring in outside investors and are not
interested in venture capital investors. Instead, they want to find other ways to
fund their business.
7-Find great partners, vendors, and team

One of the biggest challenges for every new business is saving enough capital
to sustain and grow the business. This is where business partners can make a
real difference.
Vendors and suppliers are essential to almost every business. Without the
materials to make what you sell or manufacture, you will not be able to grow
your business.
There’s a time in almost every entrepreneur's career when you feel like you’re
going it alone. When you first start your business, there’s a good chance that
you will be. For your business to scale and grow, however, you’ll need help.
8-Launch and grow your business

Sales Plan-Never forget the power of good old fashioned planning when
you’re ready to open your business. We share how you can build a great sales
plan to promote your business to your target customers.
Growing via Online media-You have your business ready to go - your brand is
a masterpiece of consistency and charm, your legal and business plans are all
squared away, and you have a solid team standing behind your business.
Introducing your business to potential customers and your customer base. It’s
time to promote your business
Examples of Good Businesses
A business can be anything. From starting a small Tea-Stall to a Hardware
Store to a full fledged Machinery plant. All of this will be considered as
types of businesses.
Following are good examples of Businesses:
1. Apple
2. Jindal Steel Works
3. Asian Paints
4. Oyo Rooms etc.
Thank You