Let us see some clear cut thoughts on what an individual should focus on to have an ideal business / startup …

From  Individual,  small business, big businessman, corporate houses and even countries  run business in the society.  We shall understand that the business is for two purposes:

One is to support / cater / provide infrastructure in the society to provide Natural / Basic / Comfort /better life to all human being. Second is to earn profit for the survival of the company including employees.

Here, we will be discussing about steps to run any business smoothly, that gives back good Profit , Peace of Mind, Reputation, etc. as well as business should not be burden for the society.

A. To run a business we require following three things:

1. Financial Capacity: FC is the amount, which one could utilise as an investment capital and  there   should not be any impact on your personal life  and  could be forgone if there is a complete loss in business.

2. Technical capacity : TC is the Professional / Technical Knowledge  one requires to start or do the business / start up. It refers to the technical knowhow of that particular business he/she intends to do.

3. Individual Profile & Competence :  IC refers to a wide and varied traits to be considered to start – what type of business and scale of business on the basis of following aspects.

• Age : You need to decide whether the business you are doing is suitable for your age.
• Gender : Some business are best suited only for men or women and some business can be done by both the genders.
• Family / Community Background : This is a very important aspects and should not be neglected. The activities of the business should not be against the values of the family / community / culture.
• Location : We should consider which business would be suitable to which location / region / area.
• Health : Every business requires the attention .. mental and physical level. The requirement of mental and physical labour for  different  business may be different. Our capacity of our health should also be considered when deciding to start that particular business.
• Other Liabilities : Some business require continuous attention /  labour to run fruitfully.  Any distraction may cause a loss in business, therefore we should consider other  duties viz towards your family, your parents and others.
• Requirement of Profit : Some business can yield immediate profits from the time they are started but the extent may be less and then there are some business which may require some patience and time to build  but the profit volume may be more. Individual needs to evaluate his expectation about the need of amount of profit and time.
• Managerial Capacity : Every individual has different managerial capacity.  We should assess our managerial capacity and select type of business and scale of business accordingly.

***  Capacity Index :  CI = FC x TC x IC

• The inputs could be high or low, but should never be zero.
• FC – 10 x TC- 10 x IC -10   = 1000    √
• or FC –  2  x TC – 20 x IC – 25 = 1000    √
• or FC – 50 x TC – 20 x IC – 0   =     0       X

After evaluating  Capacity index, we need to select the type of business and scale of business.

TYPE OF BUSINESS :

After evaluating our Self Capacity Index,  according to all three requirement we should decide the type of business to start because different person may have all these three inputs in different ratio and For the different business, the required ratio of the FC, TC & IC may be different. This can be  understood very well from following example- accordingly any one can choose the business.

Critical Evaluation :

After deciding the scale of business and type of business finally appoint/hire a person who would give very critical review of your capacity and convince you, – “ Why you should not go ahead and do the business?”. He/ She will give you so many points of failure that you may have overlooked in the enthusiasm of starting your business. Since we all have prepared this project thinking of all aspects, we will reply or convince them  and answer their objections/queries fittingly.   It will help you to analyse and rethink / re plan all the dimensions of business  before doing it and this process will help you to understand the possible obstacles / problems you may incur or face in due course of  business and you will be prepared for it with a plan.

After the Critical evaluation, we can finally decide  the Type of Business and Scale of Business to start.  Now, further we add in Labour / Hard work, and  Intentions for getting better results in our business as follow:

Scale of Business :

It is also important to understand that never do any business over your Capacity Index. Ideally  your    business  should be upto a level of 60% of your Capacity Index. The difference of 40% is to enable you to handle the ups & downs in the business cycle. When you do a business, that is more than your capacity index (eg. 120% or more), there may be chances that

you will not be able to handle the pressure or stress as it will be beyond your control and it may affect your business adversely.

Just for reference as it was in news recently .. when big corporate houses, diversify into business beyond their capacity index, they run into huge losses and almost declared bankruptcy creating woes to its employees and the society too.

B. Labour/Handwork :

Physical  or mental efforts put by an individual to strive to make his/her business successful.

C. Intention :

1. Treat your Business like a Social work
2. Should not be burden on society and nature.
3. Need based business not profit based.
4. No stake holders should be at loss.
5. Care for your employees / customers / vendors and not just profit.
6. Give advantage if the opposite person is lower than you in capacity.
7. Take advantage if the opposite person is higher than you in capacity.
8. Doing business in good intention leads progress, but in progressive mode our intentions may change/become negative. We should always assess it time to time and control it, otherwise our business may go in negative direction.

SYNOPSIS

Input => Capacity  Index  x Hard Work x Intention

 =

Output => Profit x Sustainability  x Reputation x Personal Life

Lot of people understand/ feel  that businesses  are r run only for making profit in monetary terms.. but  as per the Law of Nature, we also consider more important qualitative by products  viz ..

• Profit : Monetary reimbursement gained as a resultant factor of running/doing a business.

• Sustainability : Means and ways to run the business for a longer duration.

• Reputation : Aspect of the society, which gives credit to an individual in terms of fame, position, adulation, power, etc.

• Personal Life : relates to every factor of an individual life viz.. family, health, parents, spouse, kids, entertainment, peace, happiness, friends, etc.