Many Millennials in India are obsessed with startups these days.
Many of them already have an idea in mind or are trying to start something that matches their interests and can fill a gap in the market.
Granted, the competition is fierce, and you must be outstanding to succeed.
So, if you are one of those founders, this guide will tell you how to create a startup company in India step by step.
Before You Start to Work on Your Startup Idea
A couple of things before we jump into the ‘how-to-start a startup’ section.
You must ensure 3 things before you start working on any startup idea.
- Be passionate about your startup idea; it should be valuable enough to address a market gap.
- You will need to work hard, which is often much harder than you think.
- Be ready to accept failures, and don’t give up when you see things not working.
If you think these three things make sense, let’s see the step-by-step process of starting a startup company in India.
How to Start a Startup Company in India
You must plan and list the process to go through everything smoothly.
Here are 9 essential steps that you need to follow to get started.
#1 Check the feasibility of your idea.
So, you have an idea that can address a market gap.
Interesting, but how feasible is that going to be?
Is it going to solve a problem that is big enough for your target audience?
And how much revenue are you expecting out of it in the beginning?
You and your team should be clear on all this and have a plan ready.
To check the feasibility of your idea, you can rely on things like;
- market surveys,
- expert advice,
- and previous market research on a similar idea
#2 Have your business plan ready
Before you commence your operations, you should have your business plan ready.
It should importantly contain the following things.
- Company Description
- Opportunity and Market Description
- Strategy
- Business Model
- Management & Organisation
- Marketing Plan
- Operational Plan
- Financial Plan
Having a business plan will enable you to look at how your whole business process will work. It will also help you when you must present a business idea in front of someone else.
This will also give you a broad idea of starting and progressing your business operations.
#3 Choose the proper business structure
The proper business structure can be chosen depending on how you want to scale your business.
It can be a proprietorship, partnership, or a private limited company.
An individual can run a proprietorship firm without any partners. But if you are going for a private limited company or a partnership, you must also find suitable partners.
If you are starting small and only have limited resources, you can choose a proprietorship or a partnership.
But when you go for a private limited company, the setting up process is a little more complex.
The advantage of a private limited company is that it will be treated as a separate entity, and any liabilities related to your business will not affect your assets.
To get things right, you can avail help from a Business Consultant or a Chartered Accountant.
#4 Look for funds
To start, you will need funds to sustain a startup.
There are multiple ways to look for funding. Below are some of the important ones you can try out.
Bank Loans
Bank loans are a standard method of getting funds for your business. As governments have now introduced many startup-friendly schemes, it is comparatively easy to get loans if you have an innovative startup.
You can rely on bank loans initially, and once your company is set up and running, you can look for other ways of intermediate funding.
Angel Investors
Angel investors are individuals who are ready to invest in your startup in exchange for a share or equity in your business.
Many of these angel investors are people with industry experience, and they will also be able to provide you with valuable business advice.
However, you would often need to prove before these investors that your startup has an innovative idea and it is worth investing in.
Venture Capital
Venture Capitalists invest in startups that are of high potential. In return for the investment, they get equity in the business. Venture Capitalists also make money when the trade goes public or gets acquired by another company.
#5 Get company registration
The next step is to register your company as per the business structure discussed above.
You can do this with the help of a chartered accountant in India. They will help you with the necessary steps and processes that you need to go through.
A proprietorship or partnership is comparatively easy to set up and involves less paperwork. But registering a private limited company takes more time, and you will need to go through many processes before starting your operations.
#6 Register in Startup India Program
You can register your startup on the Startup India website and benefit from many programs run by the Indian government.
In 2017, the Government of India changed the definition of a startup, and the overall age limit of startups was raised from five years to seven years.
Being a part of the Startup India program will help you secure funds quickly and get you some tax benefits for your startup.
#7 Intellectual properties
It is essential to have a unique name, logo, and other creative assets for your startup. Ensure you are protecting them with all necessary intellectual property rights.
This would involve getting a trademark for your logo, owning your brand’s domain name, and so on.
Building a good brand identity for your business is good practice. This will involve your logo, colors, slogans, and other branded content.
#8 Build an excellent digital presence
You cannot miss out on building a solid digital presence this century.
Brands are built and nurtured on digital platforms these days.
Importantly, you need to have an attractive website that reflects your brand. It should also have pages that describe what you do and how it is helping your customers.
Make the best use of channels like social media, search engines, email, written content, video, etc.
Depending on the nature of your business, you can choose relevant marketing channels. If you are into the B2C sector, social media channels like Facebook, Instagram, and Twitter will be effective.
But at the same time, if you are into the B2B sector, channels like email marketing are found to be more effective.
#9 Get a good workspace
Office space is something crucial for any business.
If you are starting, a home office might work depending on the nature of your business.
But when you scale up, you can get a proper workspace by moving into a coworking space or a business center.
Make sure the office space you get has all the essential amenities and is located in a good business area.
Though this might not be an immediate concern when you start, getting an attractive office location can benefit your business in many ways.
Especially when you have clients who visit your office, an impressive office located in a famous business district will be helpful.
Final Words
What we saw above are the 9 essential steps you need to follow to set up a startup company in India.
It might take some time to complete all these steps in the beginning. So, it would help if you were a little patient, and also, it is good to have a thorough knowledge of all these processes as they will help you move ahead with your operations.
Today, many large companies in India started as startups some years ago. You can look at the examples of Flipkart, Ola, Zomato, Oyo Rooms, etc., to find some inspiration.
Remember, you need that startup mindset to succeed in this, and it will take a reasonable amount of time and effort to see results.
If you find this article helpful, share it with your friends looking to materialize their startup ideas.
And don’t forget to comment below if you have any queries or feedback.