Entrepreneurship and startup activity is on the rise in India. The Indian government also offers numerous incentives to motivate and promote startups. However, starting your own business takes more effort. Starting a business entails developing a business concept, obtaining the necessary legal permits, and marketing it. So, if you have been waiting for the right time to disclose your idea, this is the best time. So, how do you start a business? The following are the things you need to establish a business in any industry in India.
The first and fundamental step in establishing a company is determining what type of business you want to start. You must have a distinct business concept. Choose a business model in which you have a strong interest and passion and something at which you are good. However, investigate the business concept and learn about the competitors and the market.
Determine who might be engaged in your company's products or services. They will be your target market to whom your company will cater. Under the 'Make in India' initiative, numerous opportunities are available for entrepreneurs in the hospitality, manufacturing, tourism, and agriculture sectors.
The second foundational step in your business establishment is to make a business plan that includes the key business milestones, financials, and timelines. All of this serves as a blueprint for your company. The business plan should describe your company's values and mission statement, which will guide you through tricky projects or times in your company. An effective business plan must include the following essential components:
Description of the company
A summary of what the company sells
Includes the available products and services
Market research analytics
Implementation process and business strategy
Financial forecasts and plans
Every business necessitates funding. Entrepreneurs may start their firm with savings or borrow money from relatives or family. Small enterprises are typically self-funded. However, you can obtain funds from the following sources to establish and operate your business:
Banks provide loans to businesses (cash flow and term loans). Many banks have launched various loan programs for businesses.
Most cooperative societies provide loans to small businesses in exchange for the entrepreneur purchasing their shares.
Crowdfunding allows businesses to raise funds. Crowdfunding entails soliciting investments from family, friends, the community, neighbors, or the public at large in exchange for company stock.
Businesses can seek funding from venture capitalists and angel investors.
Upon deciding what business you want to start, choose a name for your company or organization. In India, a corporation or company should not have a similar name to that of another company or firm to avoid naming collisions. Failing to abide by the branding name and trademark rules, the Registrar of Companies will dismiss your company registration application.
As a result, you must choose a legally acceptable name for your company. For a smooth process, conduct name research before choosing your brand name because the name search will tell you if a company with a similar title to the one you want to use for your business already exists.
If a company with the same name already exists, you must come up with a new name for your business, and if it is not, you can happily go with it. One crucial aspect is to choose titles that are not difficult, long, or hard to remember. It must be distinct for your customers to memorize and refer your business to others.
A company or firm's office address is also required for business registration and other business communications. You can establish a company from home or in a rented space. Nevertheless, if your company is online, you can initiate it from home, making your home the main office address.
However, there are several factors you must consider when deciding whether to buy or rent a space for your business. The business headquarters should be located near major roads so that the customers can easily find it. However, if you want to establish an online business, developing e-commerce shops is ideal because it allows for multiple payment options and direct ordering.
After deciding on a business name and location, you must register your company to recognize it legally. You can establish your business using any of the following business structures:
Sole proprietorships and partnerships have unlimited personal liability and no legal personality apart from their shareholders or partners. However, they have fewer compliances and a lower registration cost compared to other business structures.
Members of LLPs, OPCs, and private and public companies have limited partnerships and are recognized as distinct legal entities. It is simple to raise funds because venture capitalists prefer to invest in corporations or limited liability partnerships. However, they must comply with numerous regulations.
Furthermore, businesses must obtain shop and establishment act registration, water connections or electricity, civic body permissions and municipality, and other particular licenses that vary depending on the type of business, such as GST registration, FSSAI license, trade license, and so on.
Customers can contact you quickly if you have an expert and active website with an email address. When your business is entirely online, you must have an active business site because it is the primary way for your customers to reach out to you. Ensure that our site includes contact information, the company's brief description, products or services list, prices, and other relevant data.
And you need a bank account in your company's name to perform the financial operations to differentiate between personal and business money transfers. However, before deciding on a bank with which to open an account, consider certain factors like the bank's overdraft facility and more.
Starting a business in India is simple, and anybody can do it. However, it is essential to consider a few factors before officially launching your business, such as naming collisions, funding, targeting the audience, market research, and many more.