How to Plan a Startup: In India, many millennials are enamoured with startups these days. Many of them already have a concept in mind or are working on something that fits their passion and fills a market gap. To be honest, there is a lot of competition, and to succeed, you must be very brilliant at what you do.
So, if you’re one of those entrepreneurs, this article will walk you through the process of starting a new firm in India.
Before You Begin Working on Your Startup Concept
Before we go into the “how to start a startup” part, there are a few things to consider. Before you begin working on any company concept, you must establish three things.
- Your company concept should excite you, and it should be useful enough to fill a market niche.
- You’ll have to put in a lot of effort, and it’ll probably be more difficult than you anticipate.
- Accept setbacks and don’t quit up when things don’t seem to be working.
If you accept these three points, let’s look at the step-by-step procedure of forming a new company in India.
What is the Best Way to Start a Startup in India?
For things to run well, you’ll need a plan and a procedure list. To get started, you’ll need to take the following nine steps.
#1 Determine The Viability Of Your Idea
So, you’ve come up with a solution to a market problem. That’s intriguing, but how realistic is it? Is it truly going to address a problem that your target audience cares about? And how much money do you anticipate making in the beginning? All of these should be apparent to you and your team, and you should have a plan in place to go forward. You may use things like market surveys, expert advice, and previous market research on a comparable idea to verify the viability of your proposal.
#2 Make A Business Plan
You should have a business strategy ready before you start your operations. It should, above all, include the following items. Strategy, Business Model, Management & Organization, Company Description, Opportunity and Market Description, Company Description, Opportunity and Market Description, Company Description, Opportunity and Market Description, Company Description, Opportunity and Market Description, Company Marketing, operational, and financial plans are all included in the marketing plan. A business plan will allow you to take a comprehensive look at how your whole business process will operate. It will also assist you when you need to showcase your company concept to others. This will also give you a general understanding of how to get started and develop your business.
#3 Identify The Suitable Business Structure
The proper company structure may be chosen depending on how you wish to expand your firm. A sole proprietorship, a partnership, or a private limited company are all options. A proprietorship business can be operated by a single person without the involvement of any other people. If you want to form a private limited company or a partnership, though, you’ll also need to locate appropriate partners. If you’re starting up small and have little funds, a sole proprietorship or partnership may be the best option. The procedure of forming a private limited corporation, on the other hand, is a little more complicated.
A private limited company has the advantage of being considered as a distinct entity, so any commercial liabilities will not impact your assets. A Business Consultant or a Chartered Accountant can assist you in getting things straight.
#4 Look For Funds
To stay afloat as a startup, you’ll need a lot of money to get started. Searching for financing may be done in a variety of ways. Here are a few of the most significant ones to attempt.
Bank loans are a typical way to acquire money for your company. Because governments have recently implemented a slew of startup-friendly policies, getting a loan for an innovative business is fairly simple. Bank loans can help you get started, and after your firm is up and going, you can search for alternative sources of interim finance.
Individuals that are willing to invest in your startup in exchange for a stake or ownership in the company are known as angel investors. Many of these angel investors have the prior industry knowledge and will be able to provide you with helpful business advice. However, you will frequently be required to demonstrate to these investors that your business has a unique idea that is worth investing in.
Investors in high-potential businesses are known as venture capitalists. They receive stock in the company in exchange for their investment. When a firm goes public or is purchased by another company, venture capitalists profit.
#5 Get Your Business Registered
The next step is to register your business using the business structures we described before. You may accomplish this with the assistance of an Indian chartered accountant. They will assist you with the essential stages and procedures. Setting up a sole proprietorship or partnership is quite simple and requires little paperwork. However, forming a private limited company takes longer, and you’ll have to go through several steps before you can begin operations.
#6 Enroll In The Startup India Program
You may register your business on the Startup India website and take advantage of several of the Indian government’s programmes. The definition of a startup was modified by the Indian government in 2017, and the general age limit for businesses was raised from five to seven years. Being a part of the Startup India programme will make it easier for you to secure funding and will also provide you with certain tax benefits for your business.
#7 Intellectual Property Rights
It is critical for your business to have a distinct name, logo, and other creative assets. Make sure you have all of the required intellectual property rights to protect them. Obtaining a trademark for your logo, as well as having a domain name for your brand, are examples of this. Investing in developing a strong brand identity for your company is a smart idea. Your logo, colours, slogan, and other branded information will be included in this.
#8 Create A Strong Online Presence
In this century, you can’t afford to ignore the need of establishing a strong internet presence. These days, brands are developed and maintained on digital channels. Most importantly, you must have a visually appealing website that portrays your business. It should also include sections that explain what you do and how it benefits your clients. Use social media, search engines, email, written material, video, and other platforms to their full potential. You can select appropriate marketing channels based on the type of your firm. Social media platforms such as Facebook, Instagram, and Twitter will be successful if you are in the B2C industry. But at the same time, if you are into the B2B sector, channels like email marketing are found to be more effective.
#9 Find A Suitable Workspace
For any business, having office space is essential. Depending on the type of your business, a home office may be appropriate if you are just starting. However, if your business grows, you may move into a coworking space or a business centre to acquire a professional workplace. Make certain that the office space you rent has all of the necessary facilities and is in a suitable business location. Though it may not be a top priority when you first start, having a nice office location may help your business in a variety of ways. An attractive office in a renowned business neighbourhood would be quite beneficial, especially when you have clients visiting your company.
In India today, many major corporations were founded as startups a few years ago. To get some ideas, look at the examples of Flipkart, Ola, Zomato, and Oyo Rooms, among others.
Remember that to succeed at this, you essentially need to have a startup mindset, and it will take a significant amount of time and work to see results.