Starting a business is not that difficult, but sustaining it over a long period is definitely a formidable task. There are different reasons why people start their own business, such as some great business ideas, innovation or simply an overriding desire to be their own boss and work independently. However, the success of your venture depends, to a great extent, on the foundation of your company. You don’t necessarily have to think big when you start off, instead, focus on smaller aspects so that you can successfully launch your business.
There is a legal process of setting up a company in India, which involves various steps for its registration. With regard to starting a company, let’s also understand what a start-up is. A start-up is a new business that is fundamentally driven by innovation or a great business idea. It is different from any other business in the sense that it tries to fill a void in the market. It either offers a new product or service or redevelops something to provide a solution to an underlying problem in the target market. Start-ups have become very popular in the last 10 to 15 years, and the Government of India offers many incentives and concessions to encourage them under the start-up India initiative.
Starting a company requires meticulous planning and unimpaired implementation involving every aspect of the business, including legal requirements and compliance. This article discusses a few important steps for starting a company in India.
1- Business Idea
The most important ingredient of any new business is the business idea that’s behind it. Whether you want to offer a product or a service, and why you want to start the company are also important considerations. Usually, a start-up tries to offer a solution to a problem that the potential consumers might be facing. Look around and try to locate the pain points of the consumers and see if you can offer a remedy through a better product or service. If your business is not centered around the problem, or the pain point, the business may not taste success. You have to cater to the need of the consumers and your endeavor should be to fulfill that need. And yes, you have to be passionate about what you want to do and why you want to do it, or else, you may easily get distracted and lose focus, and that would spell disaster.
Before you invest your money into a business, you have to substantiate your business idea with facts and figures. The most common cause of failure of new businesses is that the costumers really do not need the product or service offered. It is, therefore, crucial that you do research on the following:
- The target market and the consumers to focus on.
- The competition.
- The resources required and your suppliers if aren’t making a product
- The reasons consumers would want to shift to you from the existing players.
These are important points you need to examine before you jump into the market.
3- Business Plan
Now that you have your business idea and have done the market research, the next step would be to make a detailed business plan. You may have everything in mind, but if you don’t pen it down in explicit detail you are very likely to falter. A business plan makes things easier to implement. Writing down your vision makes the execution efficient. Also, in case you need funding, a prospective investor would want to see your business plan before making a decision.
4- Legal Requirements
After you have taken care of the business aspects of the company, it’s time now to give it a legal status, and for that, you have to get your company registered. There are various options for setting up a company in India, the most preferred of which among small businesses are LLP and Private Limited Company. Registering a company in India is an easy online process where you have to complete the formalities of:
- Digital Signature Certificate
- Director Identification Number
- Name Reservation
- Partnership Agreement or Memorandum and Articles of Association
5- Budget and Expenses
When starting a company, you would probably have a limited budget, so you have to be frugal with your expenses. Keep your fixed cost, such as rentals, to the minimum. Shared offices can be a good option which will eliminate your office management expenses. Hire the right people, and only when it is necessary. Build a team with people who share the same vision and are equally committed. At the start, managing finance is paramount.
6- Be Sales Oriented
Your primary aim at the beginning should be to get your first customer. Do not think too far ahead, just focus on sales and ramping up revenue. Its sales and revenue that will keep your business going, so all your effort and resources should be directed at achieving your sales target.
When you start a company in India, the initial phase of the new business is going to be the most difficult time for you. Getting customers for a new product or service of an unknown company is not an easy job. You can easily to get frustrated and distracted, but you have to remain focussed, and sooner than later, your efforts will bear fruit.
Setting up a company in India is not that difficult, but sustaining it over a period of time and making it profitable requires a lot of effort and a passionate and single-minded approach towards it.