The Indian startup frenzy has greatly increased as a result of the Indian government’s promotion of entrepreneurship as a means of bolstering the country’s economy. Numerous variables influence the next generation of business owners to form a startup company in India, making the startup industry hot and happening. These factors may include the praise startup founders receive or the sizeable quantities of money gained for company expansion.
According to figures from the Ministry of Commerce & Industry, India has more than 65,000 businesses (as of March 2022), making it the third-largest startup ecosystem in the world. According to a reliable report, Indian entrepreneurs got $42 billion in funding in 2021. For many startup enthusiasts, these figures offer a positive picture that will inspire them to create their own startup businesses.
If you belong to this group, you might either have an idea for a business in mind or be searching for the finest one that piques your interest while also filling a market need. It is imperative to educate yourself on how to launch a firm in India before deciding to join the league of Indian startups.
To help you with any queries or concerns you might have about how to launch a startup company in India, we’ve produced a checklist.
Guide for Launching a Startup Company in India
The following steps will help you start your own startup company in India.
1. Check if your startup idea is feasible
In India, anyone can come up with a business idea for a startup, but not all of them are viable enough to be implemented. As part of learning how to launch a startup in India, it’s critical to delve further and examine your startup idea’s long-term viability if you think it can fill a market gap.
You must ask yourself the following queries to move forward:
- Will your solution actually address a pressing issue for a sizable population?
- How much initial revenue can you anticipate from your startup?
- Does the market exist for the kind of goods or services you wish to provide?
To further evaluate the viability of your business idea, you should examine relevant market studies and rivals.
2. Create a business plan
The next crucial stage is to create a business plan when you have determined whether your strategy to start a startup firm is feasible. This strategy should ideally serve as a summary of the entire company and contain information like:
- Company description
- Opportunities and market size
- Problems to be addressed
- Business model
- Management & organizational structure
- Operational plan
- Financial plan
- Marketing plan
An organized business plan will help you gain a comprehensive understanding of the complete company process and point you in the proper path as you research how to launch a startup in India.
3. Arrange funds to start a startup company
You need money for your firm to get started, which you can get in a variety of methods, including:
Your savings/earnings
You can use the money you have accumulated over the course of your working career to finance your beginning business. In fact, this is among the best strategies to lay the groundwork for your firm. If you’re wondering how to launch a startup in India on a shoestring budget, your business concept must be compelling enough to attract investors.
Angel investments
You can also approach angel investors in your industry for funding in exchange for stock in your company. You must, however, demonstrate to these financiers the viability of your business concept.
Bank loans
Many people in the early stages do not like the concept of ceding ownership of their firm to an investor. You can make use of bank loans for startups in this situation. Once you have mastered the fundamentals of starting a business in India and the enterprise is operational, you may go on to secure alternative forms of funding.
4. Select the right legal business type
The next crucial step in launching a new business is choosing the appropriate business category, which might be any of the following:
- Proprietorship – Those prepared to launch a firm with little funding
- Partnership – People who wish to work as partners in starting a business
- Private limited company – Businesses having the potential to grow more quickly with outside investment
5. Get your startup company registered
You must register your firm under the legal business category that best fits your needs. You can accomplish this with the aid of a chartered accountant or tax expert who will walk you through the appropriate procedures and methods.
6. Register the company in the Startup India program
Additionally, you can gain by enrolling your startup business in the Startup India program administered by the Indian government. As a result, the Department for Promotion of Industry and Internal Trade (DPIIT) will be more likely to recognize your business as a startup, which will grant you a number of advantages such as simpler compliance, tax savings, and expedited IPR processing.
7. Apply for the intellectual property rights
You should discover how to create a startup business in India and have a distinctive brand name, logo, and other creative assets for your enterprise. If you don’t lawfully safeguard these assets, any other company may utilize your brand or trademark for commercial gain. Consequently, obtaining all appropriate intellectual property rights is crucial. This entails registering your fledgling company’s domain name and business name as trademarks, among other things.
8. Build the digital presence of your business
It would be smart to avoid skipping out on creating a strong web presence for your startup business given that practically every consumer segment is now researching items and services online. There are several ways to do this, including:
- A consumer-friendly website that accurately represents your brand
- Brand pages on various well-known social media networks
You can move forward with choosing the ideal blend of marketing strategies based on the type of your firm to further increase brand visibility.
9. Rent a workspace to get started
To house your key team members and run the business initially, a home office or a modest rental office space would be sufficient. As you grow, you might invest in a suitable office in a prime commercial area and get all the amenities you require.
Having an appealing office space makes sense when you have clients and investors visiting your business location, even though this won’t be an immediate worry in the early phases of your fledgling company.
Related Article: The Best Small Business Ideas in India for 2023
Conclusion
As you can see, it’s not as simple as it may seem to create a startup from scratch in India. Prior to starting your new company’s activities, you must get everything in order. You need to have a startup attitude as well as be patient when taking the procedures outlined above in order to get notable results.
