Once the idea of start up has been finalized and decision made for it, as per parameters mentioned in Blog No. 4, actual work starts. As I am mentioning regularly, everything should be done very professionally and methodologically, here also operations or implementation should be carried out like it only. In this particular blog we will see operations for beginners and for existing or recently set up units. For the segments parameters are –

Every entity has to pass through following 3 cycles of working. It can be called as normal life cycle of entrepreneurial firm or start up. It is given below in diagrammatic form along with its necessary components.

There are some theoretical properties of ideal businesses. Those are –

• Receives favorable tax treatment
• Has a receptive, established distribution system
• Has great publicity value
• Customers pay in advance
• No risk of product liability
• No technical obsolescence
• No physical perishability
• Impervious to weather conditions
• Possesses some proprietary rights
• Requires no investment
• Has measurable and potential market
• A perceived need for product or service
• Constant source for dependable inputs
• Requires no labour force
• Provides 100% gross margin
• Buyers purchase frequently

In fact there are more factors too that determines the smooth functioning of a successful business entity like attitude, skills, team work etc. Collectively it runs your start up smoothly, operational point of view, that leads to profitability and revenue generation. In next blog we will see about success of START UPS.

Dr. RijwanPinjari