We all have our role models. The people who changed the world. I feel happy to see the risk appetite of the young generation. They are not craving to spend their entire life in a government job or traditional business. They want to explore new fields. Have the capacity to take risks at a young age. But guidance is required to get good results instead of a nightmare. Here I have listed some important skills one should have to rock in a start-up or business.
How to form a business entity?
This is the most basic thing. What entity will suit my start-up? This is the first question a start-up is required to answer. There are various types of entities. In the case of a small business, you can go with an individual. i.e. register a business at your own PAN. A partnership firm can be chosen in the case of multiple stakeholders. HUF can be a good option if it is a family business.
Once you grow to a level you can go for a corporate structure. Thus it is important to decide upon the correct form of entity you register for your business. Let me also tell you about the compliances. The individual entity is liable for the least compliance. In the case of a partnership, compliances are more than individual and HUF but less than a company or LLP. The company form has the maximum degree of compliance.
Other than compliance, tax structure is another factor to see. The tax rates in the case of individuals and huf are slab-based. Less tax for lower-income groups. But in the case of the partnership the tax rate is flat and it is higher. In the case of the corporate entity, the tax rate is higher than individual and HUF but less than a partnership firm.
Accounting and Taxation
Once you register the entity, the next is accounting and taxation. No business can run without proper accounting and taxation. Although in many cases it is mandatory to keep the proper accounting. Even in other cases, it is vital for the success of the business. Every sale, purchase, income, and expenditure should be properly recorded.
Taxation includes two parts. The first one is Direct tax and the other is indirect tax. The direct tax includes the income tax. It is directly levied on the income of the business. Indirect tax is collected and then deposited to the government. It includes GST.
Tax compliances are very important. There are huge penalties for non-compliance with tax provisions. Non-filing returns on time attracts a lot of penalties. If the amount is huge it can result in arrest also. In some cases, the personal assets of owners can also be used to pay the tax dues.
Incorrect filing can also invite various penal actions. Thus a basic knowledge of all the tax compliances is a must for business owners.
You can do the following small courses to have a thorough knowledge of taxation.
It's a web world. We have everything under the mouse. You can't survive unless you are a part of that world. Not only a part but an interesting part. Any reliable business should have a web presence. A decent website. In case any of your stakeholders need to pull any information about you. They will search your name on the web. make sure that they easily find the required piece of information. Otherwise, they won't trust you.
Your website can speak aloud for you. The good thing is it can be accessed from anywhere in the world. It is beyond the geographical boundaries. You can attract clients from anywhere around the world.
SEO and ORM
The next important task is to take care of SEO and ORM. It's easy to make a website. But it is of no use unless it fetches some business. SEO means search engine optimization. It helps in landing at the top of Google's search for keywords. Imagine lakhs of people searching for Mobile phones. If your website, selling mobile phones on the first page of search results. You can reach thousands of buyers easily. It is an art and takes time. But it can bring your business to a completely different level. You can taste the success of many years much earlier whereas others may keep struggling.
Sales and Marketing
Sales are blood for any business. Especially in the case of a start-up, funds are required for expansion. Sales feed all the requirements of a business. It is not an easy task. Some specific skills to make sales possible.
Deep knowledge of the product/service offered
What competitors are offering?
Help in decision making
Another important part of a business. Long term sustainability of any business depends on finance. Managing the cash inflow and outflow in the most economic manner. It helps in correct policymaking.
Every business shall endeavor to create a brand from day one. Tell your customers why you are different from others. Gain their trust for your brand. This is the biggest asset of any business.
Recruitment is a top priority in case of expansion. Trust me, it's not easy. Everyone wants to work for high salaries and for large companies. Then how will you get quality manpower? It is. a tough question to answer. At initial phase
A good team can add to your progress. Their roles and responsibilities, office culture, HR policies need a lot of brainstorming. No one will work for you unless they feel pride in working with you. Apart from that their future should also be safe. It is hard for any employee to trust a start-up. Just like a client they also want to ensure sustainability.
This comes with experience. But in the initial phase also you will have to take responsibility for everything. It will take time to recruit the team. Some initial years will go into understanding human management. Then you need to develop your culture and repute. Employees need to feel a sense of responsibility and freedom for decision-making.
Member Since: 19 Apr 2021 | Total Articles Contributed:1
About Author : I am a qualified chartered accountant practicing in GST. She is the co-founder of ConsultEase and a famous YouTuber with more than 2,40,000 subscribers for her channel dedicated to the GST videos.
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