With increasing efforts of the Indian government to promote entrepreneurship to boost the economy, the startup culture in India has grown in significance in recent years. With such government efforts, it has become very easy to follow the process of starting a business.
India has been the third largest startup ecosystem in the world, and as of March 2022, more than 65000 startups have been established in India as per the Ministry of commerce data. With such exposure, many youngsters question how to do startup in India. Let’s get started.
How can I start a startup in India?
Here are a few basic steps to keep in mind while considering a startup in India.
Check the feasibility of your startup idea
As you know, doing a startup is no piece of the cake, so checking if your idea is feasible for a longer-running business model is a good step to start this journey. Even though you feel that the business idea is relevant to the current market gap, one needs to dig deep to understand the market better and address the identified market gap for the proposed business model.
To take it further, one can consider the following questions.
Is the idea going to solve the identified problem, and is it addressing a significant group of people?
What is the startup’s expected revenue for the beginning period?
Is there any platform or customer group for the products or services the startup will provide?
One needs to research current markets with surveys of competitors and market patterns to understand the feasibility of the startup idea in detail.
Creating a business plan
Once one is sure about the idea’s feasibility, the next step to building a startup is creating a business model to run the startup step by step. This is usually an overall perspective on the entire business, which can consist of the following things.
Size of the market / available opportunities
Identified problems to resolve
Plan of operating the business
Organization and management of business
Arranging enough funds for the startup
Funding is an integral part of the business; without proper planning, it can go haywire. There are a few ways to secure funding to start your business.
If you had a working career of several years with savings of a significant amount, it could go towards the funds of your startup company. This is a great way to get funds, as it does not require debt. But even if you don’t have savings, do not get disheartened; with an attractive business idea, you can pitch it to investors to fund your idea.
One can also approach angel investors for particular business types for investments in terms of share of equities in business. In such a case, one needs to pitch the idea in a way that seems liable to investors for worth investing their money in.
The idea of partnership with investors in the starting years can also bring troubles for many individuals. In such early stages, one can get help from startups promoting bank loans. Once the startup is up and running with proper structure or the entrepreneur becomes sure of the basic understanding of running the startup, the startup can proceed to secure other methods of investments.
Selecting the right legal business type
The next important thing is the company has to select the right business type that best fits the products or services that it is providing. There are a few types to select from, such as:
Proprietorship for individuals that are willing to run a startup with limited resources
Partnership for individuals who want to start a startup with a partnership
Private limited company for businesses that shows the potential to scale up with further external investments
Getting your company registered
Depending on the best suitable legal business model, one must register their company under a proper government portal. This can be done with the help of a professional like a chartered accountant or can be done individually if one knows the proper steps.
Registering your company in the startup India scheme
The Indian government has started an initiative to promote startups in India under the Startup India scheme. It will help startup companies get recognized as startups by the government sector Department for Promotion of Industry and Internal Trade or DPIIT. It will expose the companies to benefits such as easier compliance, tax benefits, and fast-tracking IPR.
Applying for Intellectual property rights
Every business has its unique brand name, logo, and other specific assets for its identity. Unless the company secures these assets legally, anyone else can use the same specifications for commercial purposes, which impacts the company negatively. Hence, it is advisable to have all the necessary rights to the firm’s intellectual properties. That suggests acquiring a trademark for the company logo, name, domain name for the startup, and so on.
Building the digital presence of the company
In the current age of technology, almost everyone has access to the Internet; thus, having a presence on the Internet will allow the consumer segment easy access to explore products and services provided. There are many ways to do this, including an attractive website reflecting the identity of the brand or social media handles on popular platforms. According to the nature of business, one can select the right mixture of marketing techniques and can promote brand visibility more and more.
Which startup is best in India to start?
India has been filled with amazing startups in recent years, while some of the best startups include BoAt, Paytm, Meesho, OLA, Udaan, CRED, and so on.
Which place is best for a startup?
A startup can be founded almost anywhere; however, Bengaluru and Delhi NCR are among the top two places holding the base for most startup companies.
Which startup is best for the future?
It depends on the current market trends, and one needs to do detailed market research to formulate the idea. Some recent business ideas are the Internet of things(IoT) industry, co-working spaces, 3d printing, etc.
Which age is best for a startup?
The best part about running a business is it can start anytime. But many consider the ideal age for starting a business from 34-45, while 45 is the median age for startup runners.
Which city has the highest number of startups in India?
According to the data, Delhi NCR and Bengaluru are India’s startup capitals.
Initiating a startup in India from a foundation is not as simple a task as it seems. Thus, it is very necessary to prepare everything before the beginning of the actual operations of the startup company. While the startup mindset is all you need to get started, patience would become a key factor to cover all the basic legal and above-described steps to full-proof your startup business with amazing results.
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