Over the last two decades, the Indian startup ecosystem has grown rapidly. India added over 1,300 tech startups in the year 2022 alone, and had more than 65,000 startups (as of March 2022) totally as per the data from the Ministry of Commerce & Industry.
The Indian startup ecosystem ranks third globally, and also ranks thrid in terms of the number of unicorns.
To promote the startup culture in the country and to strengthen the Indian economy, the Government of India has also undertaken various measures and has set up schemes to help businesses.
If you’ve got an idea that will genuinely bring a change, you can build a startup yourself. Here’s a comprehensive guide on how to start a startup in India.
Things to consider before starting up
Before you start working on a startup idea, knowing a few key factors is important.
Uniqueness: Any small startup idea should differ from other companies. Although it is the strongest element of a startup in its initial stages, this will help you gain the attention of consumers and investors.
Demand: Calculating your product demand is a significant step. If your niche audience is small and not meant to solve problems, it is unlikely to survive in the market.
Scalability: Where do you want to see your business? How big do you want to grow your startup? Getting the answer to such questions will assist you in determining your scalability. Whether big or small, your startup goals should be clear from the very beginning.
8 steps to start a company:
Check if your startup idea is feasible
It is rather easy to find a startup idea, but it should be feasible. By this, we mean your business idea must be scalable in the long run and serve a market gap. In simple words, your startup has to solve a problem that will help a target audience. To know if your business idea is profitable or practical, you can use the following:
- Market research
- Unique selling point
- Professional advice
- Market surveys
Make an effective business plan
Now that you have an idea to start a company, it is time to make an effective business plan. Include the following in the list of schemes:
- Company description
- Market size and scalability
- Business model
- Operational plan
- Strategies and opportunities
- Marketing
- Business structure and management
- Financial framework
Keeping a business plan is always handy, especially when you want to pitch your ideas to everyone. It provides a comprehensive overview of your startup process and foundation.
Choose a suitable business structure
Another point to keep in mind is choosing a suitable business structure. This may sound like a boring task for new entrepreneurs, but it is rather easy when you calculate how much control you want, the number of investments you need, etc.
These are examples of reviewing the scale and vision of your newly formed startup. Different factors in business affect its structure. Here’s a list of some aspects that you should be aware of:
- Taxation structure
- The capability of attracting investors
- Reputation
- Number of owners
- Documents privacy
Find funds
As mentioned above, the capability of a business to attract investors is an important aspect of its structure. To help you understand this better, we will briefly review three types of investments your startup can bring in.
Venture Capital: Venture capital is a type of investment where people invest in a business they believe has good potential. In return, business owners must give some of their equity to the investors.
If your company goes public or gets acquired by another firm, venture capitalists will still profit from these transactions.
Angel Investors: Angel investors are known for investing in startups with innovative ideas. Akin to venture capitalists, they also get a share or some equity in return for funding the startup. However, an added advantage of angel investors is that they hold a good amount of experience and can guide on certain steps.
Crowdfunding: This is probably the most well-known and easy-to-understand investment. As the name suggests, you simply gather funds from a crowd. This means you don’t receive money from just one person or a team of investors but from thousands of investors worldwide.
Register your startup
Registering a business is not something that you should try doing alone. Professionals such as an accountant can help you register your business with your respective government.
Here’s a little tip: You’ll be able to register your company far more quickly if you have a sole proprietorship or partnership.
Be a part of government schemes
One of the best things for any startup in India is benefiting from schemes run by the government. You can enrol your company in the Startup India Program and gain exposure to investments while also receiving extra benefits with taxes.
Further, you can enlist your small business with the Department for Promotion of Industry and Internal Trade (DPIIT) for trademarking your patents, logo, etc.
Build a strong online presence
A business is bound to become stale if you’re not marketing it. If you know various social media platforms, understand their algorithms and have a knack for creating new content, you can handle the marketing yourself.
Once you build a good online presence, you’ll be able to gain more digital exposure and trust from customers globally.
Use a good workplace
Get yourself a good and flexible workspace. You may stay humble with a little office in your home, but don’t let that bring you down. Once you’ve shifted to a better office, you can make a good impression in front of clients during their visits. Good workplaces also enable your employees (if any) to have all the tools they need within reach.
The bottom line
In a nutshell, you can build your startup by having a unique product or idea that serves a large target audience. However, before starting a business, you must also consider some factors such as market competition. Once your business structure and plans are in place, you can head to find investors to fund your startup.
