Check out the Needs of an Entrepreneur displayed in the form of an Infographic.
Copyright © 2019: This infographic is a part of Lendingkart.com
Check out the Needs of an Entrepreneur displayed in the form of an Infographic.
Copyright © 2019: This infographic is a part of Lendingkart.com
Women face a lot of Social Stigma when it comes to handling/starting a Business. Check out the infographic that explains the problems faced by Women Entrepreneurs in India.
Copyright © 2019: This infographic is a part of Lendingkart.com
As a business owner, your reliance on loans from banks is quite understood as the business goes through several ups and downs. There would be very few businesses which can withstand unpredictable business cycles and manage headwinds without worrying about any business loan. For those who are unable to scale up because of crunch in the capital always turn to loan from banks. Today markets have opened up and the government has also supported SMEs through various schemes and loans. There are a plethora of options available if you want to apply for a business loan. Of all the choices available you usually get stuck between a bank and NBFC. Here we demystify both the financial institutions which can help you make an informed decision for your business.
It is important to have clarity on the two financial intermediaries in any financial system. NBFC is primarily Non-Banking Finance Company that provides banking services without holding a banking license or any legal agreement. NBFCs have to get registered under the Companies Act 1956 to offer services similar to banks. NBFCs are mostly private owned financial institutions regulated by the RBI and other government entities.
While a bank is a financial institution that accepts deposits from the public and creates credit. Banks can perform lending activities either directly or indirectly through capital markets.
Banks can manage financial services and products generally authorized to them. Most importantly banks can accept demand deposits while NBFCs can only lend or invest but they are not allowed to accept demand deposits. A demand deposit is a bank account which allows the account holder to withdraw his money from the account at his will and by any means without notice to the bank.
The functions of NBFCs are limited to the extent that they are allowed to accept/renew public deposits for a minimum period of 12 months and a maximum period of 60 months. The maximum rate of interest an NBFC can offer is 12.5%. Also, keep in mind that the repayment of deposits by NBFCs is not guaranteed by RBI, unlike banks. Since NBFCs doesn’t form a part of the payment and settlement system, it cannot issue a cheque to its customers.
In fact, both institutions offer attractive deals to customers with different needs of borrowings. NBFCs are typically divided into three categories –Asset, Loan and Investment Companies.
In recent times Indian banks’ are struggling with bad loans which has given way to NBFCs which are not as strictly regulated as banks. MSMEs still find access to formal credit a big challenge with nearly 40 per cent of lending happening through informal sources, according to a new report by the Omidyar Network and BCG. To avail a small business loan, NBFCs can offer a better deal than traditional banks. Here are some of the reasons.
Bank loans are typically linked to the MCLR, the minimum interest rate below which a bank is not permitted to lend. It is further linked to macro-economic factors such as RBI lending rates, international market, etc. On the other hand, NBFCs offer loans on the basis of the prime lending rate (PLR) which is not regulated by RBI. As a result, NBFCs can exercise some amount of freedom to increase or decrease loan rates as per their requirements. It benefits the customers and provides them more options, especially when they fail to meet the loan eligibility criteria of banks. It gives an edge to NBFCs over banks who can’t lend below MCLR slab. It is seen that cases, where owners easily meet the criteria may end up paying higher interest rates compared to a loan from banks.
The eligibility of a loan can differ between a bank and NBFC. Since it is not regulated as tightly as banks, NBFCs can sanction amount higher than banks. Also, most banks don’t fund the entire credit requirement and fund only a certain portion and the rest has to be paid by the borrower. However, NBFCs can find out ways to help borrowers and sanction the entire business loan. While some NBFCs offer business loans with a pre-approved loan limit which means if you are a business owner you can withdraw funds from the pre-approved loan limit. The most interesting factor is that businesses need to pay interest only on the amount used and not on the entire loan limit, unlike term loans, where EMIs are on the entire amount. The interest is charged only on the amount utilized which can help in reducing the monthly business loan EMIs. Such pre-approved loan limit comes to the rescue of business and ensures they are never devoid of capital. Moreover, there is no need to apply for multiple applications for procuring loan at any point in time.
NBFCs have a good share of small business loans in their books because of the above reasons. Most people turn towards business loan from NBFCs because of less documentation and paperwork while banks can be stringent when it comes to approval of the documents. If you are unable to provide requisite documents, banks may not process the loan and refuse the application. However, NBFCs have minimum documentation and the business loans are processed much faster than a bank.
Banks follow strict guidelines and ensure that the borrower has a good credit score because business with a poor credit score is deemed risky. NBFCs may offer and accept SME business loan even if the credit score is not too good. However, keep in mind in such a scenario you may have to pay a higher interest rate to balance out the default risk. As the capital need is of prime importance for small business it is imperative that you evaluate all the options available. In 2017, the Reserve Bank of India in its financial stability report found that the NBFCs are performing better than banks and their balance sheet expanded 15.5%.
Both lending institutions have their pros and cons. As a business owner, you should carefully read the offer documents, calculate EMIs with the help of business loan calculator and consider the benefits mentioned above before approaching to either of the two for a small business loan.
Transforming an idea into a full-fledged business which is up and running is intimidating, especially if you are a young entrepreneur with no prior experience. It is when you start, you realize that there are several aspects to running a business. Credit score is one such aspect which assumes significance when you are trying to borrow capital for business. Most lenders decide on a loan application based on this score. Before we delve into this aspect, let us first understand the concept of credit score.
A personal credit score is a summary of an individual’s payments of loan taken from banks and other financial institutions. The credit score is generated by credit rating agencies and typically ranges between 300 and 900. You should have a minimum score of 750 to be considered for a business loan.
It remains one of the important eligibility criteria and most banks, NBFCs, and financial institutions consider the credit score during the review of the borrower’s business loan application form.
A bad credit score can ruin your chances of loan approval and you might have to turn to alternate sources for raising money. Even after a lot of running around you may get that loan, but a bad credit score puts you on the category of risky applicants and increases the rate of interest. In fact a good credit score for loans give you a bargaining power in terms of interest rate.
Just like your personal credit score, there is a company credit report (CCR) which is a record of a company’s credit history. CCR is created based on the data submitted by banks and financial institutions across the country. Remember, CCR is not a credit rating but a report which is evaluated by banks and institutions before processing loan applications.
You may have struggled to get a business loan based on your personal credit score, but a bad business loan credit score can have a bearing on your personal credit score as well. Your professional and personal identities are believed to be separate. However, the founder of a small business owner is often recognized as the face of the business and their personal credit scores are closely scrutinised.
Most banks and lenders are inquisitive about your personal credit profile whether your business is small or big. In absence of any relationship with the bank it becomes all the more important for lenders to check on your personal score. It is because if the personal credit score is good it will offer some assurance to the lender besides reflecting upon your financial responsibility as a borrower.
While in some cases lenders specifically want to know the track record of the business owner, thereby putting the company and founder on equal footing. It is therefore crucial to understand which forms of business can impact your personal score.
If you run a sole proprietorship business, your personal credit score is considered your business credit score. Such a business doesn’t have much difference between the business and the owner. According to the law, sole proprietors are liable for the debt of their business, hence if you default on your business loan it will directly impact your personal credit score.
In case of a partnership business, it is almost the same as a sole proprietorship and your personal credit score is considered important. For businesses like a limited liability partnership, partners are liable for only a certain extent of debt. Lenders often enquire about credit details of all the partners involved in the business.
Lastly, a limited company has its own corporate identity and the liability of the company is not the liability of the shareholders, but it does not prevent lenders from asking for the personal credit details of the directors and the business owner.
The comparisons above state whether small or big business, there is no breather because your personal credit profile is linked to that of your business. It is hence critical for a small business owner to maintain a good personal credit score and businesses credit score.
Don’t default on payment: Your personal credit score depends on whether you are paying interest and EMIs on time or before the due dates. Make sure that your credit score for loans don’t get affected and you don’t have payments pending.
The reality is most people do not know what a credit score is. Let’s not get into individual/personal scores or SMEs. Both are sailing on the same boat. A credit score is like a birth certificate. You know you have one, you even know the importance, but have you seen it off late? We know you must have not unless you have to submit it as a proof for some activity.
A credit score is a 3-digit number ranging from 300-900, 900 being the obvious highest. When you apply for a loans or credit card, your credit score is checked by the lender in order to ensure that you have the ability to repay. A higher credit score makes you reliable in the eyes of the lender, making it easy for loan approvals. The Credit Reference Agency (CRA) generates this score/number to indicate how reliable you have been with the past payments. Maintaining a credit score is important on individual basis, but is to be done by SMEs also, so that it becomes easy for them to avail SME loan.
We discussed about credit score and stated its importance in order to share information on the vitality of the subject. An individual can easily work on improving his credit score as he’s aware of his financial story.
We would talk nothing like the appalling website popups which make you believe in them, there’s no magic potion to improve your credit rating overnight. It is a process and you can work towards improving your credit score gradually. So, it’s in your own interest that you maintain a good credit score to make it smooth and maybe less expensive to obtain small business loan whenever needed.
The SME sector in India is huge. 42.50 million, both registered and unregistered together is the number of SME businesses in India. Collectively, it comes up to a jaw-dropping 95% of the total industrial units in India. It employs a huge workforce and hence considered as the backbone on Indian economy. Most of these organisations face shortage of funds, and they seek monetary aid from financial institutions. These lenders, primarily consider their credit score to determine whether loan should be sanctioned or not, also to decide the offer to be made to applicants.
Following are some effective tips on how you can maintain a good credit score for your SME.
Pay all your dues on time:
You score is determined on the basis of your payment history. Credit bureaus check all your previously made payments to assess or give you a credit score. All your payments are to be paid before the due date, whether they’re credit card bills or loan EMIs. Dues paid before leave a positive impact on your score. Similarly, late or payments done after the due date leave a negative impact on your score. A default can ruin your credit score for a longer period of time & you can face a lot of trouble getting out of it. Even if you manage to get out, a default stays forever.
Your business information should be regularly updated:
We previously discussed on how important it is for a business owner to keep a check on the credit score. The credit bureaus can check any reports; one cannot track or be sure about any of them. Apart from this, as a business owner you also have to make sure that all your reports reflect the correct information of your business so that you get a good score during the assessment. Information such as bank statements, balance sheets, no. of years of operation, size of the company, etc. should be regularly updated as an up-to-date profile gets a higher score. There are multiple credit bureaus so it is suggested that you monitor your scores by different bureaus to take action in time.
Not all lender report to credit bureaus, partner with the ones who do:
All your efforts may be wasted if the payments you do on time aren’t reported to credit bureaus. This will not help you improve score. In order to make sure, lenders report to the credit bureaus, partner with the bureaus who do this activity. Before you enter into an agreement with your lender or creditor, make sure they report your payment history and habits to the credit bureaus.
Monitor credit utilization:
The utilization of the available credit also impacts the assessment of the credit score. Over utilization gives an impression that your business is facing trouble in profit-making. The higher the utilization of credit goes, the lower your score will go. Limiting credit applications can also help.
Personal credit matters too:
Business and personal credit is recommended to be kept separate, but repayments for both are to be kept clean. As the business is in its initial stage, the business has less or no credit history, in that case, loans or credit cards are sanctioned on your personal credit score.
Achieving a credit score will take time, you will have to work for it by keeping your finances under observation. Once you achieve a decent score, it is vital to maintain it as your future credibility is dependent on it. In the initial stage of maintaining a credit score for your business identity or on personal level, things may seem difficult. Don’t give up, go ahead with discipline. Achieving a high credit score is possible, with a strong credit score; you can make your business achieve heights.
If You’re looking for Working Capital Loan, Visit LendingKart.com. Checkout our infographic on How a Working Capital Loan can help your Business.
Copyright © 2019: This infographic is a part of Lendingkart.com
Business loan has garnered rapid popularity and has made significant developments in India. As per a research, 64% of all loans disbursed in 2018 were SME loans. Despite their huge contributions, SMEs are unable to access funds for reasons like lack of credit history, inadequate financial records and more.
However, just like a coin has two sides, even a business has a profit-making and a loss-making side as every business goes through ups and downs before becoming an established one. The business performance can be a criterion when a lender signs off a loan for you. There are very high chances that you might face a downfall and incur losses even after giving you the best to make things work out. Losses can not only affect the financial side of your business but also hamper the productivity of your business.
When availing a loan, a person hardly thinks about what would happen if the business hits a rough patch and what happens to the availed business loan in this situation. The trouble begins when you have availed a business loan and the first thing that you come across is how to go ahead with the repayment of the business loan after incurring a loss? One must be aware of the consequences impacting the business loan if a business goes through a bad phase during its run.
Let’s think of the other side, the lender also faces consequences when there is a non-repayment of a business loan by a borrower. This adds on to their non-performing assets (NPAs) and turns into a loss. In such cases, the lenders assist the borrowers in repayment of business loans as much as they can by relieving some terms and conditions of the loan. This way of business loan settlements not only come as a relief to the borrower, but also is the right of borrowers imparted by the lenders for all those who default on their loans. If you have defaulted your loan, you can talk to your lender before the situation turns extreme or else the lender then unwillingly takes it ahead with the available legal procedures. In general, no lender goes the legal way on immediate basis and tries to settle it mutually & rectify the situation.
Here’s how you can deal with the EMI schedule of your business loan in case you are not able to repay –
Reschedule the date of repayment/EMI date
If you are sure that you can recover from the incurred loss soon, you can ask your lender to postpone or reschedule the business loan repayment date. The lenders don’t even charge an interest rate during the deferment period. This period of no interest is a bonus time span for you to get your business back on track and possibly arrange for funds.
Extend the tenure of repayment
Increasing or extending the repayment tenure is another possibility for managing the business loan. The extension in the repayment tenure results in reduction of EMI. Reduced EMIs are of temporary benefit as increase in the tenure also means incurring more interest payments, but the idea behind this is to refrain from shelling out high EMIs during the struggle period.
Restructuring of the business loan
You can request your lender to restructure the loan, which means changing the terms and conditions on which the loan was offered at the first instance. This restructuring may or may not be approved by the lender. The highlights of restructuring a business loan would include reduction in the interest rate, a grant of moratorium period on interest payments, etc.
Opt for one-time settlement
This is the last expedient for settling a business loan settlement post in which the lender seeks legal action for recovery of the loan. Under the one-time settlement option, you can pay off the outstanding loan amount at once, either fully or partially. On exercising this option, the loan is considered as repaid. In most of the cases, partial loan settlement is done, wherein the lender faces a financial loss.
Barring the extreme cases wherein there is a need for legal action, lenders usually accept any of the above-mentioned business loan settlement methods.
Availing a business loan from Lendingkart is straightforward as there are no hidden costs. The process of ‘getting a business loan’ is not taxing and is designed to provide fast and efficient results. Services like flexible repayments, extended loan tenure, fair interest rates and more are offered to the borrower to have a hassle-free business growth.
It takes a lot of courage and conviction to venture into an unknown territory leaving behind a comfortable job and an attractive package to start a business. Your business idea can turn into a reality provided you have the right vision and the financial capacity to achieve the same. Firstly a business owner has to ensure there is enough capital to run a business because it is a significant component before any investment is made.
Let us understand the aspect of working capital in a business. A business owner has to keep working capital intact to manage costs like payroll, rent and debt payments. All businesses are different in terms of their operations. Some businesses have cyclical sales and may not have predictable revenue generation throughout the year. For instance, some manufacturing companies with cyclical sales depend on the requirements from retailers. If a retailer sells at a particular time of the year then the manufacturer will supply goods during that period. However, once the sale period is over the demand from the manufacturer also ends. During this period, the manufacturer will need working capital to pay wages to labourers. Besides the cyclical nature of the business, there are occasions when business needs are unpredictable, and there is little control over situations. The business owner may not be able to deal with such situations in the absence of working capital. It is when business owners reach out to banks and financial institutions for working capital loan for new business in India.
Get the basic of working capital
It is better to be prepared by setting up an emergency fund through the management of short-term assets and liabilities. Working capital includes short term assets of the company used for its operations on a daily basis. It is an indicator of measuring the liquidity in terms of cash required to meet the company’s obligations. The working capital management has implications on the firm’s profitability and risk as well as its value. It is a sensitive area in the field of financial management because it can affect the firm’s success. You should be able to maintain optimal levels of working capital through various components including cash receivables, inventory and payables etc.
The working capital management should remain a higher priority for any business because shareholder’s wealth and firm’s profitability is a lot dependant on it. If you fail to manage the working capital you will default on bills on the maturity date. The best way is to ensure that the money coming in is more than the money going out of the firm. Typically working capital can be defined as the level of inventory held, where under-utilised excess inventory could become a cause of worry and shortage may restrict you from meeting the business targets. However, you can tide over the crises through a business working capital loan which is easy to acquire.
Most importantly, the ability to maintain business operations depends on the level of investment made in the working capital. An ideal working capital can be achieved through a balance between profitability and liquidity. Remember, excessive investment in working capital may reduce the profitability of the firm but the shortage may put you in a risk where you are unable to meet obligations. Hence, working capital is deemed as an effective management technique to guarantee long-term success. Here are few ways in which effective working capital management can ensure profitability:
Managing allocation of resources
The most important aspect in working capital management is proper allocation of resources. As a business owner, you need to analyse and come out with allocation of existing resources to various areas of business deemed appropriate. This kind of analysis determines shortage or surplus in resources, and help you take desired action to bring it back to the desired ratio. This also means efficiently managing stocks so that the firm has sufficient resources to meet production or supply needs.
Maintain transparency in dealings with suppliers and creditors
One of the requisites in business is to main a cordial relationship with suppliers. With an effective working capital management system, you can ensure transparency in dealing with suppliers and creditors. If you have managed to create goodwill with your business partners, it can help you get access to easy working capital loans faster, compared to others in the market. A working capital loan for your business can be easily approved if you have a good track record with your suppliers and creditor. It also simplifies the process of availing finance.
Create a sound investment portfolio
A successful business always intends to invest in resources effectively either for expansion or achieving better standards in executing the existing projects. With effective working capital management, the business can release funds into new areas of business or enhance existing investments. Effective working capital management also ensures better maintenance of records. A clean book maintained through various working capital ratios can help financial experts and analysts get a clear picture of your business.
Impact on operational efficiency
An effective working capital management system can help in controlling resources and finances as these aspects are crucial in functioning of the business. This reflects on the operational efficiencies which lead to better performance of the entity over a longer time. This also saves on financial costs, time, effort and energies spent in managing short-term assets and liabilities. If you have a proficient working capital management it will have a positive impact on the profitability of any business organisation.
SMEs in India employ 40% of India’s workforce, employing about 106 million people. 42.50 million, both registered and unregistered together is the number of SMEs businesses in India. Collectively, it comes up to a jaw-dropping 95% of the total industrial units in India. These numbers are from the most trusted sources operating under the government. With our country developing in terms of technology through digitization, increasing FDI boosting opportunities, the last five decades have seen a remarkable change in the SME sector.
SME sector is growing rapidly and with this swift growth, we ought to address the challenges that are faced by the SMEs in India. A business needs everything from finance to manpower to administration and much more in order to start, survive and ultimately succeed in the market. Some vital obstacles the business owners face are unavailability or shortage of finance, lack of skilled/talented manpower. There are a number of challenges faced by SMEs in India, but for now we would filter down to the top 3 and most important ones.
Coping with the technological advancements:
It becomes difficult for us to manage inventory, staff, accounts, etc. all at once, and that is why humans came up with advanced software for managing business activities. Whether it is ERP or inventory or accounting software, all these are a boon to a business owner. Adapting or encouraging use of these systems can make a business run longer. Businesses nowadays rely on such software or advanced AI-equipped machines and tools. However, it is a task for SMEs to get access to new technology due to lack of capital and awareness. As per a research, about 20% of prevailing SMEs operate from rural and backward areas, this justifies the point that why there is no awareness to technological advancements. You can opt for SME loans in India; many banks, financial institutions, NBFCs have come ahead to offer loans to SMEs.
Depending too much on acquired clients:
Acquiring some big clients should not just stunt your business growth. In India, businesses or their owners have a thought process that let the business run as it is post they acquire a handful of big clients. This can limit your business & profit and the growth slows down and ultimately comes to a point where it stops. But this dependency can prove fatal if existing clients stop doing business with you for whatsoever reasons. In order to stop this from happening, try to market your products and business activities to more and more people. Spend a good budget on marketing and customer retention. Avail quick SME loans to do so as it has become easy to get loans for running your business. Get into print media, use social networks for promotions, and more such methods to add client to your existing clientele.
Grow, but do not deteriorate quality:
Any or in fact all SMEs should make sure that during the process of growth or in the times when the business is growing, the quality shouldn’t deteriorate. Remember, it was the quality that got you the clients you currently have. Your Quality is your USP, so do not compromise on it. In order to do this, you need to hire the right people who know how to keep your product quality even when they have not introduced it. Outsource HR recruiters; spend on technology in order to do so. This definitely requires finance, but it is worthy enough to grow your business.
To make your business prosper and grow in the market in today’s competitive world, you need to have a strong financial backup. Do not hit the floors when it comes to financing your business. NBFCs today provide loans to SMEs. These loans fall under the unsecured category but there are only a few eligibility criteria which a business owner has to meet which are laid down to cut down the risk on the lender’s side. Lendingkart is one such NBFC which provides MSME loans exclusively for startup owners, small business owners, women entrepreneurs on a short-term basis. The range starts from Rs. 50,000 to a whopping 1 crore. The process is quick and online, the disbursement is usually done within 3 days, depending on the completion of procedures and clearing the eligibility requirements.
Other features of the loan offers – flexible repayment tenure, zero prepayment charges, no requirement of collateral/security. The loan offers vary from lender to lender. So, availing a quick SME loan is worthy to run and grow your business in today’s competitive world.
“Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations,” said Steve Jobs. Such inspiring quotations of Steve Jobs have become business mantras for start-up founders. Steve Jobs and Steve Wozniak who founded Apple from a garage in 1976 are inspirations for budding entrepreneurs and alike. The first Apple prototype was developed in that garage and later the founders build 50 computers for a local electronics store.
It was a small beginning, but today the company has grown exponentially to change the face of personal computing industry with its cutting edge hardware and programmes. It now ranks as one of the most profitable companies in the world, in the field of wearables, personal computers, and mobile phones.
The business ethos of the Apple founders’ resonates among entrepreneurs who like to aspire and imitate their success formulas. However, there is no fixed set of success formula for small businesses as the success of any business is dependent on proper planning and execution. Here are the first few steps that you should take to ensure that your business starts on a strong foot.
Believe in your service/product
Your business is usually born out of your experience with a product or service which is absent in the market or can be given a new twist. Entrepreneurs devote a lot of time and energy in developing that product or service which can truly make a difference in the lives of people or customers. It doesn’t matter whether the business is small or big, but as an entrepreneur you should always believe in your product. It may also happen that a certain product or service which you think would make a difference may not lead to profitably. It is always crucial to believe in your product and service and deeply analyse the impact that it will have once launched. It may not immediately yield results, but the idea should be strong enough to gain eyeballs from investors and venture capitalist. It is always great to analyse the market potential of the product and gain specific insights related to the product success. With clarity about the potential market, the next step is to focus on execution of the same. Most start-ups scale the business after evaluating success of the product with a limited customer.
Get the financials right
Once you have the right product and service, it is time to devise ways and secure capital to set up the business. You can easily start or expand a business today with small business loans from banks and financial institutions. There is no dearth of business funding options in the market today. We all know MSMEs form the backbone of the Indian economy and the government has made efforts to ease lending for SMEs so that they can flourish. With quick business loan and relaxation in the business loan eligibility have made accessing capital much easier for small businesses. One can easily apply for business loan to meet the capital need at any stage in the business. After finalizing the business idea it is good to find out requirement of loan, your eligibility and prepare for documentation. When you apply for business loan make sure you have a good credit score as it helps in getting a quick approval for loan. Also, you should consider the rate of interest and decide on the financial institution before you take a loan. If you’re lucky, your business loan can be easily approved within a day. Once the loan is approved you can expand or improve the existing business opportunities.
Execution is the key
It doesn’t matter whether your idea is small or big. Success of a business depends a lot on the execution which is dependent on factors like talent, product quality and customer focus. The culture of your organisation will dictate how your team executes the idea and service with discipline. It is important to hire the right candidate for the assigned jobs and create a culture which is rewarding for employees. Besides that you also have to make sure that the customer feedback is taken into account for launching the product and service. You can achieve the desired results in business only if you have set the right strategy and ensure that it is executed in a timely manner. You have to devise effective business model which is executed in the manner which rakes in profit and also create the desired impact.
Count your customer
As you know that ‘customer is king, hence running a business should be rewarding for the founder as well as its customers. You cannot underestimate the success of your business without taking into account the customer satisfaction. It forms the basis of your business, and hence you should find ways to incorporate customers’ feedback and improve your offerings at each step.
Always measure the success
At every step in the business you should be able to gauge the success of business. You cannot ignore any one aspect of the business and focus on the other. Every aspect of the business will require attention from marketing, human resources, sales to public relations. If you want to scale up then you ought to look for resources to back it up. One of the important requirements is finance to grow the business. Also, calculate how the investment will create a return on the capital before you apply for any loan.
Like Rome was not built in a day, a business also needs time, hence it is important that you embrace perseverance and continue to believe that your idea can truly be a success.