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08 Jan 2021
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Starting a new business can be very exciting; however, figuring out how to begin the entrepreneurial journey can be so overwhelming that it scares many people away. So how to start business planning? To ace your business plans, you first and foremost need to have the required knowledge and skills to execute your ideas. Remember that there is no ‘one size fits all’ approach to starting a new business. Here are some steps that can help budding entrepreneurs iron out important details and launch their businesses.

1. The Type of Business to Start

The first step is to figure out what type of business you want to start. If you have a particular niche or are passionate about something, you can start with researching and learning about market trends. Also read about Types of Business Lending

2. Market Research

Market research can help you analyze and determine the long-term viability of your business. Moreover, it will also help you to understand if you can expect revenue from the business apart from understanding your potential clients, your budgets, and the industry to which it will belong.

Industry (market) research can help you with the following:

  • Understanding the current market trends
  • Understanding customer demands
  • Analyzing the behaviour and preferences of competitors

3. Creating a Business Plan

A well-defined business plan can help shape your expectations, including the purpose of the business, the financing, the execution, as well as the timelines for achieving goals. It also covers things like understanding the target audience and the appropriate ways of marketing, etc. Hence, having a business plan is essential to check if it will work on the ground level.

Your business plan should include the following:

  • Purpose and impact
  • Actionable goals and timelines
  • Target customer base
  • Strength, Weakness, Opportunities, Threats
  • Marketing and Financial Plan

4. Financial Planning

To start a business, you need enough financing to meet expenses and ensure smooth operations. Since it is too early to expect profitable revenue from a new business, it is important to set money aside for daily requirements. Today, most young entrepreneurs choose to opt for a business loan to get the necessary financing and repay the loan as soon as the business starts generating revenue. So, figuring out the start-up costs will help with the financial planning and create a sustainable long-term business.

5. Avoid Overspending

It is quite normal to get excited when you’re starting your business, and it is likely that you end up overspending on unnecessary things. However, it is prudent to think twice before spending on fancy equipment or decor. These funds can rather be used to get essential items that you may require or set it aside for emergencies.

6. Choosing The Right Lender

When you plan on getting a loan for business, you need to choose the right lender that can fulfil your financial requirements. There are numerous lenders that offer MSME loans to support budding entrepreneurs. Such lenders can also help you build a personal relationship with business owners, which can be favourable for you in the long run.

Business Loan Eligibility

Given below are the basic business loan eligibility criteria that a borrower needs to qualify for:

  • Self-employed individuals are eligible for a business loan.
  • Applicants between the ages of 25-65 years can apply.
  • Business units such as partnerships, private limited companies, limited liability partnerships are eligible for the loan.
  • The applicant must have a business experience of 03 years in the current business and total 05 years of business experience.
  • To qualify, a business should have a minimum annual income of Rs.1.5 lakh per annum.

With a well-researched business plan and the above-mentioned steps, you will be able to build a strong foundation for your business. Moreover, if you require financial assistance for your start-up, you can look for lenders that offer loans for MSMEs.

To get a loan for business, you can apply for a Bajaj Finserv Business Loan at Finserv MARKETS. The application procedure for a business loan is carried out online and requires minimal documentation. At Finserv MARKETS, you can avail a high business loan amount of up to Rs. 30 lakh[UR1]  at affordable interest rates. Get access to personalized, pre-approved offers on loans in addition to value-added services like a CIBIL score check and Financial Health Check Report to understand your finances and credit standing. Apply for a business loan with the Finserv MARKETS app and fulfil all your business needs with ease, today.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”