Are you planning on starting your own business? You’re not alone. India has always been a country of entrepreneurs. From making ‘jugaad’ motorbikes to opening large paan stalls next to offices, Indians are an innovative bunch. Starting your own business in India has never been easier due to the plethora of schemes launched by the government. So if you’re feeling stuck in your job or have a great business idea, there is no better time to get started.
Signs you should start a business:
1. You understand the local market and have identified a need for a product.
2. You have some capital saved up and would like to invest it in a business.
3. You have sales skills necessary to convince potential customers to buy your product.
4. You have tried your hand at small business ventures and can’t wait to jump in yet again.
When to start a business in India:
1. Right Opportunity: You should think of starting your own business when the timing is right. For example, a new road is being constructed and it is obvious that people will move into new apartments in that region. Setting up a laundry service in this region is a viable idea that will ensure success.
2. Innovative Idea: If you are convinced that there is a need in the market and a new product can fulfil the need then it is wise to launch such a product. For example, a local shopkeeper noticed that most of his buyers purchased loose rice from him in small quantities instead of large packets from the supermarket. The shopkeeper packaged his rice into small packets and sold them under his brand. His customers were willing to pay more because of his quality, packaging and pricing. You should be innovative if you’re planning on starting your own business.
Documents to Start a Business in India:
- Obtain a PAN Card
- Open a Current Account
- Register A Limited Liability Partnership as the first step to starting your own business.
- Register your company as a private or public limited company.
- Register for GST.
- Check Applicability for Excise if you’re starting your own business in the field of trade.
- Compliance with Shop and Establishment Act.
- File Entrepreneurship Memorandum at District Industries Centre- To avail incentives and subsidies.(Check beneficial govt. schemes if you are starting your own business.)
- Documents Required for Construction Permit: Click Here.
- Documents Required Post Construction: Click Here
- Employees Provident Fund: Applicable to an organization with more than 20 employees.
- Employees State Insurance Scheme: Applicable to a non-seasonal factory employing more than 10 people.
Steps to Start a Business in India: Follow these if you’re starting your own business
- Outline Your Business Idea: Your Business Idea is the first step to starting your own business. The idea must define the product or service you are offering. Some basic market research should also be incorporated to identify the niche where you will operate.
- Set up a Sales and Marketing Plan: A good sales and marketing plan will ensure profitability in the long run if you decide on starting your own business. Once your product and audience are well defined, it makes sense to sketch out a good marketing strategy. Digital Marketing is a crucial component of any marketing plan in today’s age. List your business in local web directories, write product descriptions and use social media to reach customers.
- Build a Team: A loyal and motivated team can help you achieve all major milestones when starting your own business. You can hire permanent or contractual employees as per your need. Freelancers can be brought in for specific projects. You should always build a good team before starting your own business.
- Raise Capital: One of the most challenging parts of starting your own business is to raise the capital necessary for operations. Generally, a business does not turn in a profit for the first year or two. Therefore, one must have sufficient funding to carry on operations during this period. One needs to build a scalable and sustainable model to attract VC/outside funding in the long run.
- Start Operations: Once the larger issues of starting your own business have been dealt with, you can focus on operations. A positive attitude and persistence are key attributes of any aspiring businessman.
If your business has been operational for at least 2 years you can avail a loan for business expansion. Click here to apply for a loan.