In a rapidly changing market, an entrepreneur needs to convert his idea into a running business in the quickest possible time. To do so, you need to have the knowledge and understanding of the big process to help you get going.
STEP 1: Decide on a Business Idea. Knowing what business you want to be in is the first and by far the most important step. To help you make a choice, you will need to do a personal SWOT analysis especially with respect to the resources you have in hand or can have access to. Don’t rush, take it easy and take your time to know what business you want to be in. Let your passion, interests and the things you love drive your choice.
Once you make up your mind, go and collect market information related to your business, things like competition, market demand and any statistics that could help you analyze the potential of your idea.
STEP 2: Work on the Business Plan. Once you finalize your business idea, you now need to prepare a business plan. Business Plans usually cover the following:
– The business
– The Market
– The future
– The finances
Your Business plan is important as it helps you answer critical questions and guides you throughout the setup process.
STEP 3: Choose a good location. The location of the project is very important especially in case of a small scale project. In case of a service project, location becomes even more important and could be the reason behind success or failure. For smaller manufacturing projects, you will need to explore the available options in the market such as Government supported facilities (check out Bahrain Business Incubator Center in Hidd) and you will need to make sure that the chosen facility covers all your manufacturing requirements.
If you are starting a very small scale business office, you can make use of the growing number of business centers in Bahrain. Business centers offer you a very small office, usually, a small room that can fit a desk and two chairs along with supporting services such as conference rooms, telephone and internet services.
STEP 4: Sort out the Financing. Once you have an idea of the business and a forecast of all the expenses, you will need to decide on the route you will take to finance your project. Options include personal savings, Family financing, Bank Loans, and startup grants (local and regional programs available). Bahrain Development Bank provides financing as well as professional business advice to Startups and SMEs.
If you are a Bahraini and have an innovative idea with promising potential try approaching Tenmou, Bahrain’s first Angel Investment company.
Bigger Project ideas with higher financing requirements can approach venture capital banks, Investment Banks or even knock the door of potentially interested investors.
Whatever route you end up taking, keep in mind that the bottom line of business survival lies in its ability to manage its finances.
STEP 5: Register your Business. There are different possible forms of business ownership. The most common forms adopt- ed by small businesses are Individual Establishment / Sole Proprietorship, Partnership Company and Company with Limited Liability (WLL). You can find out more details on each form and its requirements by visiting the Investors Center of the Ministry of Commerce and Industry.
Depending on the type of business, additional requirements and approvals may be required to obtain the license. For example, if you are starting a fast food restaurant you will need to approach and get approvals from the Ministry of Health, Municipalities, Civil Defence and others to make sure you are following the local standards while setting up the business.
STEP 6: Launch!