Tips for starting your own Startup Company In India
How To Establish A Startup Company In India?
Thanks to the new-age Indian government, which has finally started promoting entrepreneurship and leadership to boost the economy. Over the last ten years, entrepreneurship has been a hot topic among youth, and this craze is growing significantly across the country. Whether it’s the new-age trend or something else, the new generation is quite interested in establishing their own startups, making this industry relatively popular.
According to official reports, India currently has the third-largest startup ecosystem, i.e., more than 65,000 startups are registered in the country. These startups have raised more than $40 billion from national and international investors. All these fascinating numbers catch the attention of young brains to follow the path of entrepreneurship.
If you’re also planning to establish your startup or want to execute your business idea, we’ll become a helping hand in your journey. Before you execute your business idea or look for the funds, you must know how to establish your startup in India. Here is our comprehensive guide on establishing your startup company in India (2022).
Evaluate whether your startup idea is achievable
To establish a startup, a unique yet feasible business idea is required. According to you, your startup idea may be practical, but it may not be for society. Or else society may need time to accept your business idea. You’re good to go if you believe your business idea is unique, can help society, or solves any problem. Besides this, you should dig deeper and study more about your startup idea. During this entire process, you can also think of the below-mentioned pointers.
Will your business idea solve problems faced by society?
Like many other famous startups, will you spend money on customer acquisition, marketing, and capturing the market? Or you’ll be able to generate revenue from the beginning?
Is there any kind of scope available in society for your product/service?
You should also conduct market surveys and research about your potential competitors to understand the practicality of your startup idea.
Forming your business plan
Once you have thoroughly checked the feasibility of your business idea, it’s time to create your business plan. Business planning requires comprehensive research and includes numerous factors, which are mentioned below:
Market research and scope
Company's vision, mission, and goals
Forming your business idea isn’t an easy job; you should have a holistic view to stay on the path of establishing your startup successfully.
Arranging capital for your startup
This is the most important step; without capital is like building a house without bricks. Luckily, there are many ways of arranging money for your company; please have a look at the below pointers.
Taking loans from financial institutions
At the earlier stage, investors most likely won’t invest in your startup because, here, your potential will be prioritized over other factors. Investors usually don’t invest in unestablished or newly-established companies because of the risk factor. As a result, the Indian government has launched various initiatives, such as Pradhan Mantri Mudra Yojana for new startups. On the other hand, many government-backed and private financial institutions also provide numerous loans to startups. Therefore, once you’ve researched your business plan, you should focus on financial planning and arranging capital.
Burn your savings
Undoubtedly, you may have some savings which you’ve saved over the years from your primary job and other sources. This money can be used to establish the foundation of your startup. This is one of the best ways to back up your company.
Reaching the angel investors
This is one of the best yet followed ways to gather capital for your startup company. You can exchange your company’s equity or assets for capital by reaching angel investors. Nevertheless, you must convince your investors to believe and invest in your startup idea.
Selecting the appropriate business type
The right business type would be chosen depending on your company’s vision, mission, and goals. The most common business types are private limited, proprietorship, and partnership.
Proprietorship means you’ll run your startup on your own without
The partnership means you’ll connect with individuals to build your
Opting for private limited is a bit more complicated and requires
huge capital. In private limited, you and your partners will scale the
company without third-party investments.
Registering your startup
According to your business type, you should further think about the company registration. You can get in touch with any experienced tax professional or chartered accountant to understand and follow the entire registration process.
Become and part of the Indian startup program
Once your startup is officially registered, take one extra step and join the Indian startup program. This initiative is backed by the Indian government. Becoming a part of this initiative, your startup company will be recognized by Department for Promotion of Industry and Internal Trade (DPI). Through this initiative, you’ll acquire numerous advantages such as IPR fast-tracking, hassle-free tax compliance, and much more.
Don’t forget about intellectual property.
Many budding entrepreneurs don’t know about intellectual property or skip this step. As you’re establishing your startup company, you should have a unique brand name, logo, motto, etc. Besides building these creative assets, you must protect them from other businesses using them for personal or commercial reasons. For this, you need to apply for intellectual property rights. In simpler words, you’re getting a permanent trademark for your company’s name, logo, domain, and other creative assets.
Establishing the digital presence of your company
If your startup doesn’t have a digital presence, competing with your competitors is nearly impossible. Nowadays, digital presence matters a lot more than your face value. Believe it or not, 90% of consumers prefer to research their desired products/services online before making the purchase decision. Hire a web designer to design your company’s website to get started. Your website is actually the internet face of the startup. The second step is creating business accounts for your startup on social media platforms such as Twitter, Facebook, and Instagram. Furthermore, according to your marketing team, you can run and invest in marketing campaigns to take your brand visibility to the next level.
Celebrate your new workspace
In the beginning, you can start your new workspace right from your bedroom or rent a small place; it all depends on your needs. In other words, there should be enough space for smoother operations. Later, you can change your workspace when your business kicks up, hire more employees, and invest in needful amenities. However, you shouldn’t invest much in your new workspace because you’ve limited capital. Although, your workspace should be decent enough to welcome your investors/clients anytime.
So here you have understood all the major steps to be followed for establishing your startup company in India. Honestly speaking, building a startup from scratch is far more complicated and time-consuming than it seems. Initially, you need to be patient; otherwise, you’ll derail yourself from the right path. You should invest your time in proper understanding and
execution of these steps. If you find our post helpful and informative, please share it on different platforms.
All the best for your upcoming startup!