While starting a new business appears to be a difficult task, it holds the opportunity to benefit both business owners and the overall economy.
However, when considering ways to start a new business in India with a low investment amount, you must ascertain various factors.
How to start a business with low investment in India?
Working at a 9 to 5 job in a corporate business environment may not be suitable for everyone. At times, coming up with low-cost business concepts can be difficult.
When you are genuinely enthusiastic about something, it can be hard to find the right path. So, here’s a 10-step plan for starting a low-cost business in India.
#1. Choose the best business concept
Any entrepreneur’s first step is to choose the right business idea. Always remain clear about the area in which you want to start a business and take the necessary steps in that direction.
Also, if you are not sure of your business concept, you can check out the MSME and make in India website for more information.
India’s MSME now has access to a wide range of industries, including defence and aviation. There are also prospects available in the travel & tourism industry and manufacturing and construction under the “Make in India” initiative.
Such small businesses can get started by Indian residents, non-resident Natives, Foreign Citizens or Persons of Indian Origin, and overseas visitors in cooperation with locals.
#2. Concentrate on honing your business abilities
Start a business that allows you to put your skills to the best use possible. Enhance your small business by focusing on your field of expertise. Keep in mind that the achievement of your company- is determined by your abilities.
Attempt to learn as many trade secrets as possible. Working with other players in the industry will also allow you to develop new skills. It’s best to start from the beginning, with no prior knowledge or expertise.
#3. Prepare a business plan
The success of a business is determined by its distinctiveness. Look for products and services that are comparable to yours in the domestic and international markets.
Discover everything you can about your organisation. The first stages in any business are feasibility studies and a business model.
The business plan should include the title, age, and credentials of the owner or partners. If you have any relevant job experience certificates, include them in your business plan, as they will help you get a loan.
Also, you can incorporate details such as cost and market price, levies, shipping fees, and other incidental fees in an income prediction model.
#4. Raising funds
The majority of small businesses in India are self-funded or launched with family and friends’ money. You will have to make educated guesses about how much funds you will need to get your company off the ground.
Determine how much capital you have and how much you require to keep the business afloat until it becomes lucrative. Once you determine this cost, you can move ahead with the process of raising funds for your business.
Also, you must note that a loan for MSME from any renowned financial institution is the most suitable way to fund your small business. In addition, crowdfunding and other funding sources are available to micro, small, and medium-sized businesses.
#5. Selecting the best location
Setting up a business in India necessitates space in one’s home, a showroom, a stall, a studio, or an office. You must register your business with your local council or village administration under Indian law.
Utility providers must register with the municipal or village panchayat before supplying water and power connections to the establishments. It serves as proof of the company’s physical location.
#6. Legal aspects and licensing
Once you gather the required funds and finalise a business location, the next step is to register your business and obtain a license. While many business owners earlier found licensing challenging, this entire licensing process has become seamless now.
The complete process of building a business can get conducted online. The MSME website has details on the required documents and answers to other commonly asked questions to help you quickly obtain licences from a different jurisdiction or the federal government when starting a small business.
#7. Company tax
You’ll need a Permanent Account Number (PAN) and a Taxpayer’s Identity Card when you start a small business and they are issued- by the Internal Revenue Service (IRS). PAN and TIN numbers are advantageous when it comes to reimbursing taxes to the federal government each year.
#8. Starting your own business
Every business in modern times must have an online presence to stay competitive in the industry. It can be achieved through creating a website or a Facebook page, depending on the budget and type of goods you provide.
Also, to compete and increase brand awareness, physical businesses must have an online presence. Establishing a website in India is comparatively cheap.
#9. Creating brand
Use all of your creativity when starting a small business. Give your company a captivating and catchy name. The company emblems act as brand ambassadors for the organisation.
Publish official stationery with the company logos, brand name, and contact details to promote superior goods and services across the globe. Letterheads, folders, invoice books, issue receipts, and other official transaction-related items are all included.
The intense competition requires aggressive small-business advertising. Advertising can be very costly and eat up a large portion of your budget. It can get accomplished by introducing your company to blogging platform sites such as Twitter and maintaining a robust presence on Facebook.
To sum up, we can say that when it comes to opening a small business, there are numerous ideas available.
You can readily plan to start a small business you find most lucrative based on your networking skills, knowledge in niche areas, and latent demand for the same in the market.
Also, if you are looking for a business loan to kickstart your new business, ZipLoan can be your perfect partner. We are a leading NBFC that helps you get a loan for MSME at the most affordable interest rates. Contact us to know about our financing options and more.
Frequently Asked Questions
Here are some profitable small businesses:
1) Personal wellness
2) Courses in other hobbies
3) Bookkeeping and accounting
5) Graphic design
6) Social media management
7) Marketing copywriter
8) Virtual assistant services
Starting a dropshipping store is one of the best low-cost business ideas. You could pick a niche or simply open a general store of products you’d like to sell, without having to stock up on inventory. Alternatively, you can also start selling your services like web designing, content writing, and others.
Here are some businesses you can start with Rs. 5000:
1) Tutoring or online courses
2) Make a product and sell it online
3) Open a consulting business
4) Create an app or game
5) Become a real estate mogul
Here are some offline and online business ideas for women:
1) Selling handicrafts online
2) Start an online gift store
3) Sell traditional sarees online
4) Custom jewellery business
5) Sell paintings and/or modern art
6) Become a freelance writer
7) Open a day-care for kids