How to start a Startup in India | Step-by Step Process

 

Many millennials are obsessed with how to start a startup in India these days.

Many of them already have an idea in mind or are working on something that matches their passion and fills a market gap.

To be honest, there is a lot of competition, and to succeed, you must be extraordinarily competent at what you do.

So, if you're one of those entrepreneurs, this guide will walk you through the process of starting a startup firm in India.

Before You Begin Working on Your Startup Concept

There are a few things to consider before we go into the "how to start a startup in India" part.

You must ensure these three things are on priority:-

• Your startup 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 agree with these three points, let's look at the step-by-step procedure of forming a new company in India.

 

8 Steps for Starting a Business in India

In order for everything to go successfully, you'll need a plan and a procedure list.

To get started, you'll need to take the following nine actions.

 

Step 1 - Make sure your concept is feasible.

So, you've come up with a solution to a market problem.

That's intriguing, but how realistic is it?

Is it actually going to solve a problem that your target audience cares about?

And how much money do you plan to make in the beginning?

All of these should be evident to you and your team, and you should have a plan in place to move forward.

You can use things like to see if your proposal is feasible:

• Expert Advice 
• Market Research
• Previously conducted market research on a similar concept

 

Step 2 - Prepare your business plan.

You should have a business strategy ready before you start your operations.

It should, above all, include the following items.

• Company Description
• Opportunity and Market Descriptions 
• Company Strategy
• Management and Organization 
• Business Models
• Marketing Strategy 
• Plan your finances

A business plan will allow you to take a comprehensive look at how your entire business process will operate. It will also assist you when you need to present your business idea to others.

It will also offer you a general concept of how to get started and advance with your business.

 

Step 3 - Decide on the best business structure

The correct business structure can be chosen depending on how you wish to scale your business.

A sole proprietorship, a partnership, or a private limited company are all options.

A proprietorship business can be conducted 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 recruit good partners.

If you're starting up small and have little funds, a sole proprietorship or partnership may be the best option.

The process of forming a private limited corporation, on the other hand, is a little more complicated.

Private limited company registration online has the advantage of being treated as a separate entity, so any commercial liabilities will not affect your personal assets.

 

Step 4 - Seek out funds

To stay afloat as a startup, you'll need a lot of money to get started.

Searching for funding can be done in a variety of ways. Here are a few of the most significant ones to attempt.

Loans from a bank

Bank loans are a frequent way to receive money for your company. Because governments have recently implemented a slew of startup-friendly policies, getting a loan for an innovative firm is fairly simple.

Bank loans can help you get started, and if your company is up and operating, you can explore alternative sources of intermediate finance.

Angel Investors

Angel Investors are individuals who invest in small businesses.

Individuals that are willing to invest in your startup in exchange for a share of equity in the company are known as angel investors.

Many of these angel investors have prior industry knowledge and will be able to offer you helpful business advice.

However, you will frequently be required to demonstrate to these investors that your firm has a unique idea that is worth investing in.

VC (Venture Capital) 

Investors in high-potential enterprises are known as venture capitalists. They receive shares in the company in exchange for their investment. When a company goes public or is bought by another company, venture capitalists profit.

 

Step 5 - Get your business registered

The next step is to register your business using the business structures we covered earlier.

You can do this with the assistance of an Indian chartered accountant or a business service provider. 

They will assist you with the appropriate stages and procedures for company registration online.

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 a number of steps before you can begin operations.

 

Step 6 - Register with the Startup India Program

You can register your firm on the Startup India website and take advantage of many of the Indian government's programmes.

The definition of a startup was amended by the Indian government in 2017, and the total age limit for startups was raised from five to seven years.

Being a part of the Startup India programme would make it easier for you to secure funding and will also provide you with some tax benefits for your business.

 

Step 7 - 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 established and nourished 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 content, video, and other platforms to their full potential is really important in how to start a Startup in India.

You can select appropriate marketing channels based on the nature of your firm. Social media outlets such as Facebook, Instagram, and Twitter will be beneficial if you are in the B2C industry.

However, in the B2B sector, channels such as email marketing proves to be more effective.

 

Step 8 - Get a proper working environment

For any business, having office space is essential to start a Startup in India.

Depending on the type of your business, a home office may be appropriate if you are just starting out.

However, when your business grows, you can move into a coworking space or a business centre to receive a real workspace.

Make certain that the office space you rent has all of the necessary amenities and is in a decent business location.

Though it may not be a top priority when you first start out, having a nice office location can help your business in a variety of ways.

An impressive office in a renowned business district will be beneficial, especially if you have clients who come to your office.