As the Indian government has pushed the idea of entrepreneurship to further boost the economy, the startup culture in India has grown significantly. Whether it is the amount received by the startup founders or a large amount of capital raised for business growth, there are a number of factors that encourage the next generation of entrepreneurs to start a startup company, making the startup space hot and happening.
According to data from the Ministry of Commerce and Industry, India has the world’s third largest startup ecosystem, with over 65000 startups. According to a credible report, Indian startups will have raised $42 billion in funding by 2021. All these numbers paint a bright picture for many startup enthusiasts to compete with their own startup companies.
Being home to the third largest startup ecosystem in the world, India has more than 65,000 startups, as per the data from the Ministry of Commerce and Industry. According to a credible report, Indian startups will have raised $42 billion in funding by 2021. These numbers paint a bright picture for many startup enthusiasts who want to come up with their own start-up companies.
If you are one of them, you might already have a startup idea in mind or be on the lookout for the best one that matches your interests while also addressing a market gap. Before you make the decision to join the league of startup companies in India, it is crucial to learn how to start a startup in India.
We’ve created a checklist for you to use to answer various questions and doubts you might have about how to start a startup company in India.
8 Steps to Start a Startup In India
In order to complete the process smoothly, you must have a plan and list the steps.
Here are 8 important steps you need to know to start a startup in India.
Step 1: Check for your idea’s feasibility
Let us assume you have an idea that can address a market gap. But, how feasible is that going to be? Will it actually provide a solution to a problem significant enough for your target audience? And how much money are you anticipating making at first? All of these should be understood by you and your team, and you should have a plan ready to move forward.
To check that your idea is feasible or not you can rely on things like:
- Market surveys
- Expert advice
- Previous market research on a similar idea
Step 2: Create a Business Plan
Before you commence your operations. you should have your business plan should be prepared.
It should importantly contain the following things.
- Company description
- Opportunity and Market Description
- Business model
- Management & organisation
- Marketing Plan
- Operational plan
- Financial plan
Your ability to examine your entire business process holistically will be made possible by having a business plan. Additionally, it will be useful when you need to pitch your business idea to others. Additionally, it will give you a general idea of how to launch and develop your business operation.
Step 3: Choosing the right business structure
The best business structure can be chosen based on how you want to grow your company. A sole proprietorship, partnership, or private limited company are all possible. A proprietorship business can be run solely by an individual. However, you also need to find good partners if you want to form a private limited company or a partnership. You can choose a proprietorship or a partnership if you are just getting started and have few resources. The process of setting up a private limited company, however, is a little more difficult. A private limited company has the benefit of being treated as a separate entity, meaning that any liabilities associated with your business will not have an impact on your personal assets. You can seek assistance from a business consultant or a chartered accountant to do things correctly.
Sep 4: Raise Fund for your Business
You will essentially need money to support yourself as a startup when you first start out. There are several methods for finding funding. You can read how startups get funding. Here are a few of the significant ones that you can test out.
- BANK LOANS
Lending from banks is a popular way to raise money for your company. As a result of the numerous startup-friendly programmes that governments have now put in place, getting a loan if you have an innovative startup is now comparatively simple.
Bank loans are a good place to start, and once your business is up and running, you can start looking for other sources of intermediate funding.
- ANGEL INVESTORS
Angel investors are people who are willing to contribute money to your startup in return for a stake or equity in your company. Many of these angel investors have experience in the industry, so they can give you insightful business counsel as well. However, you would frequently need to demonstrate to these investors that your startup has a ground-breaking concept and is worthwhile of their money.
- VENTURE CAPITALIST
Venture capitalists invest in high-potential startups. They receive ownership in the company as compensation for their investment. When a company is acquired by another business or goes public, venture capitalists profit as well.
Step 5: Get your Company Registered
The next step is to register your company in accordance with the business structures we discussed earlier. The Startup gig can assist you in registering your business. We will help assist you in completing the necessary steps and processes.
A sole proprietorship or partnership is relatively simple to establish and requires less paperwork. However, registering a private limited company takes more time and requires you to go through a number of procedures before you can begin operations.
Step 6: Register your Startup in Startup India Program
You can register your business on the Startup India website to take advantage of many government-run initiatives.
The age restriction for startups has been increased from five to seven years as of 2017, and the definition of a startup has changed as a result.
Being a part of the Startup India programme will make it easier for you to secure funding and will give your startup some tax advantages.
Step 7: Protect your Intellectual Properties
For your startup, it’s crucial to have a distinctive name, logo, and other creative materials. Get all necessary intellectual property rights to ensure that you are protecting them. This would entail registering your logo as a trademark and obtaining the domain name for your brand, among other things. Investing in creating a strong brand identity for your company is a good idea. This will involve other branded content as well as your logo, colours, and slogan.
Step 8: Build a Good Digital Presence for your Startup
Building a strong online presence is essential in the twenty-first century. Today, brands are developed and maintained on digital platforms. Importantly, you must have a stunning website that accurately represents your brand. Additionally, it ought to include pages that explain what you do and how it benefits your clients. Utilize channels like social media, search engines, email, written content, video, etc. to the fullest extent possible. You can select appropriate marketing channels based on the nature of your business. Social media platforms like Facebook, Instagram, and Twitter are useful if you work in the business-to-consumer sector. However, it is also true that B2B channels, like email marketing, are found to be more successful.
The eight essential steps you must take to establish a startup business in India are listed above. The completion of all these steps might take some time in the beginning. Therefore, you will need to exercise some patience. It is also advisable to have a thorough understanding of all of these procedures because they will be useful to you as you proceed with your operations. There are a lot of big businesses in India today that were once startups. To get some ideas, you can look at examples from companies like Flipkart, Ola, Zomato, and Oyo Rooms. To succeed in this, keep in mind that you essentially need to have a startup mindset, and it will take a lot of effort.