People are especially doing two things to earn money viz. jobs or their own businesses. Some people are having previously well amount of money to start their own business. However, most people haven’t sufficient portion of fund to start new business and they want to start their business from zero or small size to gradually grow. So, here our topic goes how to start small business/set up Local business in Nepal.
We are especially target this article to developing country like Nepal but anywhere you are belonged that you can relate to start your business and set up from starting. In Nepalese context, there are not available sufficient jobs and youngsters are going foreign countries to finding jobs. Large proportion of Nepalese economy consist remittance amount.
It is looks beneficial for current time but it much impact in Nepalese economy in future. Government of Nepal is providing many privileges for many sectors of business. If you want to know about these sectors, you can search in Google or directly contact in respective government bodies. So, it must essential to start business and providing jobs for those young people who are searching job opportunity to achieve around growth.
How to Start Small Business/Set up Local Business in Nepal
1. Make Business plan
It is very important part for every business to make business plan with proper research. There are including lots of important aspects of businesses such as full details about your business, ownerships, vision and mission statement, etc. These are elaborating briefly in below:
(a) Overview of Business
Make a short note in order to shows brief introduction about your business such as Name of your company, Locations, Board of Director, Sources of Capital, company types etc. important points related your business. It is needed the time of Register Company and if you are searching an investor for your company, for this value able to decide investor for investing your company.
(b) Mission & Vision Statement
This is most important part for any organizations and companies to successfully operating. Mission deals that action of activities doing to achieve organizational long term goal. In order word, it is short term goal for up to one year. The composition of missions is towards organization’s goal.
Vision is a goals that organization actual wants in long term. It is a main goal of any organization purpose to operating it. That goals might be profit maximization, increase size of organization, sale target etc.
(c) Marketing strategies
It is very important considerable aspect of running successful business in current competitive world because there are enough substitute service and product in market already and will coming in future. Many organizations were gone collapse due to lack off and wrong marketing strategies.
So, you should have needs to make strong marketing strategies for your organizations.
(d) Market Analysis
Under market analysis, you should learn about the target market. First of all, you should find the target market, number of target customers, customers need, competitions, etc. This helps you learn for the market and can help to make plans and strategies.
(e) SWOT Analysis
We all know, under SWOT analysis, we consider Strength, Weakness, Opportunities and Threats. First two, Strength and Weakness are internal factors and other two are external factors.
For the internal factors, we can control by own efforts. We use our strength factor to get target goals by minimizing weaknesses of business.
Besides, there is no any business’s control in external factors. We should set our action according to market needs such as customers need, tastes and preferences, income of customers, competitors, government rules and regulations, states rules and regulations, income distributions of the nation, etc.
(f) Funding Sources
Without finding, we can’t survive and scale up any business. If you idea is unique, there is change to find investors who interested to funding in your business.
If the business size is small and you have fund, you can self invest in your business.
Another major source of funding is loan; you can take private as well as institutional loan. Private loan means the loan which taken from friends and family members for a certain time with fixed interest rate. Besides, Institutional loan means loan taken from banks and financial institutions. The interest rate is higher in private funding than the interest rate taken by banks. However, you need collateral to take loan from banks and fulfill documentation works.
Milestone means a set of goal which you want to achieve in the specific time frame for example five, ten, twenty year’s goals. This kind milestone are major goals of the organization which helps to established the business and earn profit.
For example, we decided to cover whole Nepal in 10 years that is milestone of the businesses.
2. Sources of Funding
This is good if you have sufficient fund to invest on business. There have many ways to managing fund for your business. First, now government of Nepal has lunched many plans to help people to get fund for their businesses. Almost all banks are providing loan for business in range under bank policies.
Some investors are searching a new business (angle investors) to invest their fund but they must properly check the business idea, vision and mission (business plan) to achieve this.
There are also available other sources of private funding. Lend fund from your family members, friends and relatives that may be with or without interest. Sometimes private funding is more costly than other sources of funding.
Obviously, business is started to run long term and earn profit in future. So you should register your business according follow the business registration policies.
Extra Tips: How to establish as Brand?
Brand means anything that representing the particular product or company that can be logo, sign symbol, words, slogan etc which stay in customers mind. First of all, you need to find out uniqueness of your product and ask yourself if you are a customer then, you buy this product. If the answer is yes that’s ok, if answer is no, you have to improve your products that can be different ways such as product quality, size, packaging, advertisement, etc.
When your product slightly buying and recognizing in the market then gradually popularizing. This can help you make a brand.
In this article, we are trying to give you full information for the topic how to start a small business in Nepal. We are provided you technique for the market research, make plans and strategies, milestone, funding, registration, etc. If you have some suggestions and questions related to this post, please comment in below section. We will reply you as soon as possible and stay connected.