This step by step guide will help you in finding answers to some of the common and valid queries arising on how to start a New business, more specifically how to start a business in India. Before starting a new business, it is very important to cover the basics and do your research.
1. Discovering opportunities in Market
What product or service interests you? What made you think about entrepreneurship? What kind of market you have an exposure to?
These are some of the questions you must answer. Once you’ve decided on a product or service you’re going to focus, ask yourself this: Does is solve an actual problem? OR Is it a unique product? OR How much WOW factor does what you’re offering contain? Opportunities for products and services that more and more people will be willing to try or find useful are far more than a good idea that doesn’t actually do much for anyone. While it is difficult to always find unique ideas to execute, there are a lot of opportunities in market for tried and tested products and services which are always in demand. Researching what these opportunities are and how you can position your launch to reap maximum benefits is a crucial activity before starting up your business.
2. Study the competitors
The best teachers in the field are those who have already taken the path you’re taking. They have tried and learned from various successes and failures what works and what doesn’t. Studying your competitors’ practices closely and understanding the major reasons why they were able to gain success will give you valuable insights about starting your business. It is worth noting that some of the biggest organizations in India had a very humble start up beginning.
3. Understand the risks
Starting a new business from scratch is a stressful process and carries considerable risks. One must take into account that despite all preparations the business might not go as well as expected. The option of exploring opportunities in franchise business also exists for those who do not want to take a substantial risk in beginning.
4. Research your idea
Once you have decided on the route you want to take, market research plays an important role. Using search engines and various analytical tools to ascertain public interest, gathering relevant data from various published information, understanding the target customer and their needs, studying the competition and discovering loopholes left by them that you can explore, analyzing strengths and weaknesses of existing market leaders etc. fall under necessary market research for ensuring that your idea is indeed viable.
5. Decide the legal organizational structure
Once you’re ready to start your business, it is important to understand what kind of legal structure the organization is going to have. A partnership firm can prove to be a practical choice as the business is just getting started with fewer stake holders and it is still quite early to have a full-fledged organization. But once the firm starts doing business it is advisable to obtain company registration and operate as a private limited company, the India equivalent of LLC.
6. Decide on a name and Create Company’s identity
Your company’s name is the first impression that you’ll make so ensure to choose a sensible and professional name which leaves a lasting impression. Next is establishing company’s identity by getting company logo, business cards, letterheads, stationary etc. made.
7. Registration Process and legalities
For guidance of documentation required, various concerned agencies and time taken for said activities, please refer to our article Company Registration in India.
8. Financial preparation
Below are the various steps to follow in order to ensure your financial readiness for business start up in India:
- Creating a business plan to follow
- Estimation of start up costs and formulating timelines
- Analysing and executing various options available for minimizing the costs
- Understanding your financial requirements and preparing for the same
- Opening a company bank account for doing company transactions
- Hiring accounting and taxation specialist for managing company accounts
- Applying for loans
- Establishing a business line of credit to reduce prepay of products and services and establish credit history with vendors
9. Establish your workplace
The final step in starting up a business is to decide how many people will operate the business and from where. Various options like work from home, virtual office, office leasing, property purchase etc. can be explored for setting up of a work-space. Next step is to arrange for necessary facilities like furniture, internet, computers, electricity etc. for the workplace and hiring of mandatory office staff to carry out primary business activities.
Curoso Consulting – New Business Start up Consultants
The above guide covers basics of how to start a business in India. For detailed guide, consulting on various procedures and new business start up services, please feel free to get in touch with us by clicking the contact us button below. Curoso Consulting has a team of top Consultants with over 20 years of industry expertise in Indian Market. We’ve successfully helped many foreign and domestic start up businesses with their company formation procedures and provide End to End solutions to our clients. We offer below services for business start up in India:
- Company formation and registration
- Liaison and representation office
- Virtual head office, office space rent and sale
- Pre-launch events
- Market research and analysis
- Manpower outsourcing and payroll management
- New business start up consulting
- Operations management & Business Solutions