Table of Contents
Before Starting the Step 4...
Before we move forward, let me shake a leg for you to celebrate your progress!
Now – that was once good ‘Celebration dance’!
Time to move forward :).
Welcome to day four and step 4 (such a coincidence :)) of the Entrepreneurship Development Course.
We are midway, and you have done a commendable job coming so far.
I know it is a lot of information that you have processed so far. However, trust me, friend – this information is all taking you in the right direction.
Now, we are on day four and looking at how much information I have passed you until now – I want to keep the step 4 short and simple.
The idea is to give you some breathing space.
Now before we jump on to this chapter – I want you to revisit the three Steps (sections) you have already finished and see if there are some gaps you need to fill.
Day 1: Step 1 – Are you ready to be an Entrepreneur!
Go back to the chapter to check your readiness to be an entrepreneur. Learn what the things you need to consider to check your readiness to be an entrepreneur is.
Day 2: Step 2 – Market Research!
In this step, I discussed with you the simple strategies and tools to analyze your market and understand your business better. Most Importantly, I taught you – how you can use the power of the internet and do market research without spending a fortune.
Day 3: Step 3 – Business Plan!
Please revisit the chapter if you want to learn how to set up a simple business plan.
Now a business plan is as essential as it gets as not only does it help you give a shape to your business, it also helps you approach banks and Venture Capitalists so that you can confidently raise funds.
p.s: Step 4 is short and sweet. I highly encourage you to revisit all the three Steps before getting started with Step 4 (it should not take you more than 15 minutes to complete the chapter)
What are the different types of Business Organisation - How to find the right one for you?
All of them have different meanings and require a different level of compliance and paperwork.
How do you identify the right business type for you?
You identify the right business type by figuring out the needs of your Startup.
Answer to the following questions will help you identify your requirements:
- Are you a single person company, or do you have partners?
- Do you want to start small and then go for Private Limited after you have extra money to meet compliance?
The different business types across the globe are:
- Sole Proprietorship Firm
- Partnership Firm
- LLP Company
- A Private Limited Registered Company
- A Limited Company
I will skip the limited company option. They are for the big players who have reached a certain level and now want to raise more funds for this company by listing it on the stock market.
Let’s visit the other four options.
What is the right business type for your Startup?
- Sole Proprietorship is a business type where one person is the sole owner of the firm. All liabilities are of the proprietor of the firm.
- A Partnership firm is a business entity with more than one partner.
Based on my experience, I suggest new startups and businesses start as a registered sole proprietorship or partnership firm and then eventually turn into a private limited company – once the Business reaches a respectable position.
In starting – the only reason for you to go for a private limited company is either you are working with a government or are trying to get a big brand name on board as a client.
Clients start looking at you more respectable once you are a private limited company (it is all purely based on my experience).
However, don’t go for it (initially) – it is not worth the money and compliance work it requires to run a private limited company for a business just trying to find its feet.
One of the reasons, I do not suggest a privately limited option for startups is to save them the paperwork involved with private limited companies.
Less paperwork means less money spent on Chartered Accountant fees 😊.
Don’t you think you need to save every single penny to grow your Business? Let’s save some here.
Moving to LLP Companies – LLP companies is the business type where one partner has unlimited liability while the others have limited liability.
Before I shift to the next step, here is another vital point to remember
“You must know how to handle all Paperwork, Licensing, and Compliance.”
I know paperwork is not exactly a part of this step. Yet, you need to do it all as the government won’t let you move forward until they are satisfied with your paperwork.
Some of the examples of paperwork and compliance being – industries need a certificate from the Fire department, labour department, etc.
Restaurants need a compliance certificate from some 100 departments. (they are the toughest to run ☹ ).
I wish I knew a code to crack the restaurant business challenge. Imagine – grumpy customers, online reviews, government compliance, staffing troubles, expensive rent.
It makes me wonder – How do restaurants survive?)
So, before you finish the formalities, figure out all the compliance you will need to have the Business officially registered.
The Action list for the "Step 4"
- Action Point 1 and only 1 (see – i told you, this chapter will be short and sweet): Answer these questions:
Talk to a Chartered Accountant or the business registering authority in your country and understand the needs and requirements of your business.
Do not rush into registering your business until you understand the cost and other implications of starting one.
On an Ending Note...
Well! Congratulations on revising the last three steps and completing the fourth step.
While the first four chapters are your ground work and establish a base for your business, the next three chapters are simple business concepts that are required to start and run a business.
You will get the next step of the Course in your Inbox -
About the Instructor
Founder, Lessons At Startup
I started my first venture in the mid-20s in India and stuck to the venture for the next 12 years before exiting it and relocating to Australia (at present, i am taking a brief hiatus).
I have 12+ years of entrepreneurial experience ( you would have figured that out by now :)). My experience has involved helping small business and startups start and bootstrap to success.
Till date, i have I have worked in different capacity (consultant, partner) in businesses such as IT Services, E-commerce, Consulting, Digital Marketing, Job Portal, Restaurants (to name a few).
My Training Credentials : As a Trainer, i have trained close to 6000 students online and offline (the proof is on udemy :)) in Courses ranging from Entrepreneurship to Digital Marketing.
What do my students have to say about my training?
I am not going to go on a “self appreciation” spree. Instead, i will let the students speak for my work in the feedback section below: