Not a single company in the world were born in a single day. Even the giant corporates also were planned and developed by someone. Hard work, dedication & determination help it to come in existence.
Obviously, it is a very challenging to start a new business, you can start a business which will be benefited for the company as well as the economy of the country. There is no criteria or restrictions who can start business or not. The thing is needed is that a drive, a proper plan and a certain goal.
If you have intention to start any business, then go for it. But, before proceeding you have to consider few things that is necessary to start a business in India.
Step by Step Guide to Start a Business in India
1. Business Idea
The most important thing to start a business is you should have a business idea of your own choice. There are many profitable business ideas that is mention on the website of the MSME and ‘Make in India’ websites.
India has opened its areas of business from small to large industries of various sectors which includes defence and aerospace, and MSMEs. Other than this you can start of Hospitality and Tourism, manufacturing and agriculture industries under the scheme of ‘Make in India’.
There is no limitations or restrictions who can start small business and anyone can plan for this kind of business such as Indian citizens, Non Resident Indians, Overseas Citizens of India/ Person of Indian Origin and foreign nationals together with the locals in partnership.
If any kind of investment is done by foreign companies and nationals, then it will be governed by Indian’s Foreign Exchange and Monetary Act (FEMA) and it is a subject under the regulations of Reserve Bank India.
2. Become more Experienced and Trained
Try to start a small business on which you are expert. You should keep it in mind that your skills play an important role for your business. Get or learn all the fundamental knowledge and tricks which helpful for the business.
You can do specialization or a sort-term training to be more skilled from any recognized institution. To get more knowledge and experience you can join some related established organizations.
It will be better for you to start as a beginner ignoring all of your past experience and knowledge. This will help you to get in-depth knowledge in the related field. Most of the banks or financers asked the technical education certifications and licence for the legitimacy of your business.
3. Prepare a Project Report
Hard work, determination and uniqueness of your business one of the deciding factors of your success. Collect all the related information in detail. Do a detail study on domestic and international market about products, services which is compatible for your business.
To do this, your first step should be feasible studies and prepare a project report. You can do it by yourself or you can take help from expert depending on the type of business and required funds.
In your project, you must have such as Name, age and qualification of you and your partners. Also, add your other experience certificate which is relevant to your business. It will be helpful to you to get financial support.
Prepare a revenue model that must contain cost and sale price, taxes, delivery charges and other expenses. You should also have project anticipated revenue at least for a period of two or three years.
4. Make a list of Fund Sources
Most of the small size business are generally self-funded or help taken from family members and friends. Before launching your business, you should have an estimation of how much money you need to start your business in India.
Also consider the expenses that you may borrow to keep running your business till it makes some profit for you. You can avail funding from the following sources:
- Banks: Contact with banks in your locality as they offer start-up capitals under different schemes.
- Cooperative credit societies: If your business is small in size, then you can get loan from here.
- Community development funds: There are welfare organizations for different communities and offer loans for small business.
- Crowd funding: You can arrange funds from your friends, neighbors, general public by offering them the stock pf your company.
5. Select Location
To start a small business, you need spare at workshop, home, stall. It is mandatory to register your business in the nearby municipality or village administration according to Indian laws related to business.
You will get permission from the civic body or gram panchayat to launch your business which is under their jurisdiction. To get connections of electricity and water to your organization, you must show them the registration of municipal or village panchayat.
It will work as physical address of your company. You may consider that the taxes levied in the rural areas is lower on business.
6. Do Registration and Legalization of your Business
It is one of the crucial and daunting work for any every business man. It is a very lengthy and perplexed process to get registered in a country like India. But, now this problem become easy as instructions are directed by the Prime Minister Narendra Modi, the Ministry of Corporate Affairs and the process is done within a working day.
You are able to register all the required formalities through online. For further information regarding required documents, you may visit ministry’s website. It is mandatory to have all the required licenses from the various departments of state and central government to launch any kind of small business.
7. Do Tax Registration
You must procure a Permanent Account Number (PAN) and Taxpayers Identification Number (TIN) launching small business. You can get it from Income Tax Department easily through service center authorized by National Securities Depository Ltd.
You need to submit the required documents along with a nominal fee. It takes maximum of 30 working days to allot Permanent Account Number (PAN) and Taxpayers Identification Number (TIN) from the date of application.
It will be easy for you to pay your annual tax every year to the government if you have PAN and TIN numbers.
8. Establish a Website of your own
According to the nature of your small business, you can start three types such as (i) Online (ii) Online and Physical (iii) Physical (Office/Store/Workshop). In recent trends, it is very good for the business to have online appearance.
You can use social media pages such as Facebook or can create a website if you have sufficient budget and the kind of offered services/ products.
If you want direct order and multiple payment options, then it is ideal for you to start e-commerce websites. To have your own website for every kind of business takes you ahead from your rivals and also helps to get more clients.
9. Make a Grip on Market
Use all the effort and tricks you have while launching your business. Give a simple and easy-to-remember name of your organization. Logo is the identity of your company so prepare a unique one from a professional designer.
Almost every successful business has their own logo at starting that represents products and services globally in future.
Prepare printed official stationary that included logo, brand, name of your company and contact details.
10. Facilities required from Bank
Till now you have company and municipal registration, PAN number, current account in any bank. Prior to open your bank account in any bank, you should check about some facilities that are provided by the bank or not such as overdraft facilities.
You must confirm from the bank authorities that cheques will not be bounce due to scarce of funds. The bounce cheques represents that company or business is not financially stable and also confirm, no of free cheques you will be entitled in a year.
You should also check the availability of loan for small business and other facilities like instant credit on deposited and outstation cheques. In case, you are intended to import raw material Letter of Credit facilities is required.
Also Read: Best Money Transfer Apps 2021
11. Get Cheap Staff
This is one of the important factor for a small business. You may get some assistance from family member such as spouse, siblings or parents. But this is not possible in every case so you required a good quality staff with cheap salary. You can get it from various educational institutions or websites easily.
12. Do Publicity of your Business
Almost in every sector, competition is very high so have to do publicity of your business though it is small in size. To do advertisement of your business, you need some capital for it. You can do it with the help of micro- blogging sites like Twitter along with Facebook.
You can use YouTube and Instagram for this purpose. Create a video of your company explaining products, services, salient features and other related information with relevant pictures and upload it on YouTube and Instagram. This kind of digital marketing of your company will definitely be beneficial.
You are also advised to use traditional method to make publicity of your business by advertising through newspaper, local radio, distributing pamphlets etc.
Make in India
Prime Minister Narendra Modi Inaugurates one of the great initiative ‘Make in India’, in the history of India on September 25, 2014. Under this initiative i.e. in ‘Make in India’ scheme contain three-pronged.
It aims to meet the products and services according to the global standard, and to do so it encourages the small organizations. They offer incentives and encourage to set-up micro, small and medium enterprises through ‘Make in India’.
Ministry of Micro, Small and Medium Industries
Ministry of MSME in India is given special emphasis on the development of small businesses. Throughout India, it has offices in each states and Union Territories. This ministry also controls and regulates the licensing process, rules and regulations related to MSME.
It is always working on the development of small business, and launches and programs for it. In this schemes, small companies are offered funds on soft terms to the needy business organizations on regular basis.
You can avail all the about current funding schemes, opportunities of investment in different states in India, training programs, current rules and regulations which are in force by visiting the websites of Ministry of MSME.
Prime minister Narendra Modi inaugurates the Pradhan Mantri Mudra Yojana and Micro Units Development and Refinance Agency Bank On April 8, 2015.
You can get funds from Mundra Bank whether it is start-up or existing business or even a street vendors are eligible. Mundra bank schemes are available in Public Sector Bank, cooperative banks and authorized financial institutions.
Having all the documents, before starting your business is a good sign. Current policies for investors has now become easy. Read news regularly related to your business will help you to be aware of different policies and regulations.