Movie Case Study
In the scene above, we can see the lead actor (played by Shahid Kapoor) wanting to start a business, he wants his company to be listed on the stock exchange and become a rich man. Let’s evaluate how would he be able to reach this stage. Learning Perspectives in this blog will explore what it takes to start a new business.
What does it take to start a new business?
Before starting a business, a strong evaluation of oneself is required, this involves conducting a SWOT (Strengths, weaknesses, opportunities, and threats) analysis on oneself. It involves knowing oneself deeply. The next step is analyzing the industry you are planning to set up your business. For example, if you are planning to start a restaurant, it would be a good idea to understand the food and beverage industry. This would give you a sense of what kind of industry it is, whether the pricing is based on perfect competition or monopolistic competition.
Steps for starting a business:
Starting or launching a business:
It starts with a business idea. This stage involves conducting market research and understanding the market for that particular idea. Analyzing and evaluating the competitors is a feasible step to undertake at this stage. It is important to draw up a business plan. This would include budgeting & forecasting. Understanding the capital requirements and expenses of the business is crucial.
The building or Managing the business:
This involves defining the mission and vision of the company. It also includes the development of long-term plans for the effective management of various opportunities and threats. The mission is essentially why the company exists. It defines the purpose of the organization and tells why it exists in society and how is it different from other companies in the industry. Vision conveys what the company would like to become in the future.
Growing or Scaling:
This involves knowing your customer’s needs and wants. This helps the company to take risks to fulfill those demands and allows it to offer impressive customer products and services. Looking for new opportunities and tapping into them accordingly. Companies get listed on the stock market through the process of IPO or the initial public offering.
In this particular scene, Shahid Kapoor mentions that he wants to be listed on the stock exchange, for a company to be listed on NSE or BSE, the market capitalization of the applicant should not be less than 25 crores.