How to Start a Small Business in India – 7 Step Guide to launch
Things are changing in India, more and more people are coming forward to fulfill their entrepreneurial dream and starting small businesses.
Different people have different reasons to start their business, and many have great business ideas, independent working and much more.
“One of my friend who is shifting from full-time job to business told that he does not want to put himself into the startup glamour thing but want me to advise him on how to start a small business.”
If you are looking for Process for registering a business in India, follow this link: How to Register a Company in India
If you had already made your mind to start your business in India, keep in mind the success or failure will depend upon how concrete the foundation of the company is.
Believe it or not, you do not need to think million, billion-dollar businesses at first. Just focus on tiny things so that you can successfully launch your small business.
7 step approach to start a small business in India
Putting down seven steps which will help you in starting your business in India. Go through these steps which will surely help to make your small business success.
What & Why
Most Important thing in starting a small business is what you want to start? What is your business idea?
Do you want to start a service based company or product?
Why do you want to start that? Is there a problem your potential customers are facing and you want to solve that problem.
When you are trying to find your WHAT, look around and try to observe things.
Is there anything that can solve a particular problem for the users.
Might be you can make better product or server than existing in the market.
However, Always remember that if you are not starting your business keeping customers pain point at the center, it is intended to fail soon.
Your business must solve a problem, fulfill a need or have something that market want.
Once you have the clear understanding of what exactly you want to start and why you are doing it, now time to move on to next step.
“You must be in love with what you are willing to do otherwise soon you will be quickly distracted. Money alone can not be the motivator to start a small business.”
Do Your Research:
Before you put any money or high resources into your business, you first need to validate that idea with real facts and figures.
” No product/service Need ” is among top reasons for small business failures.
Try to find
What will your target market? Which are the customers you will be focusing?
Who else is already on that market? How fierce is the competition?
What kind of resources will I need? If I am not making a product, who will be the suppliers.
Why people will choose you over the other already existing players in the market.
Ask all these questions to yourself and be fair with you.
Many time people in a hurry to start business ignore these essential things which make them fail in future.
Make a Business Plan:
I have everything in mind, why even I need a business plan to start my small business?
Trust me; the business plan will make the things more efficient and straightforward.
“Without a business plan, Ideas are just Wish.”
However, it is worth it. It will help you to put your vision on paper so that you can execute it and make it a reality.
In fact, it does not need to be lengthy paperwork but can be one-page plan to give clarity about your business and how you need to achieve it.
If you are willing to raise funds for your business, a proper business plan is must for investors including product, market, financials, team, marketing, revenue and much more.
Once you have your business plan ready, it is time to move on to next step.
Make it Legal:
Next step in setting your small business in India is ” Getting it registered and made it Legal ”
There are varies types of option available in India to set up a company, LLP and Private limited company are most common.
If you are looking to do a scalable business, which you are undoubtedly aiming. We will advise you to form a private limited company.
It is so easy to register a company that you can get it done in less than a week without going to any office and under 12,000 INR.
Get your Company registered now. We can help you to setup company anywhere in India without visiting any office.
Get your trademark and GST number registered as well at the start so that you can do business with ease.
Once the company is registered, open a current bank account, and you are ready to go.
Now, I have my legal entity setup, and everything is ready to acquire my first customers.
Budgeting & Finance:
For most of the small businesses, the budget is limited in the start, and we spend every rupee precisely.
Office: You must have heard that many of tech giants were started from apartments like Flipkart or Paytm.
If you are a tech entrepreneur and having a small team, try to lower down the cost to fancy office setup.
Co-Working spaces can be the excellent option to start like 91springboard, wework, etc. or you can choose serviced offices like Regus or similar.
Trust me. It will remove your hassle to manage the office, and you can just focus on your core service/product.
Team: Hiring the right people in the start is a difficult task and most important factor in the success of the business.
Make a team which shares the same vision with you for the business and have the right skill set.
Do not hire just for the sake of hiring, only recruit when you need it and make sure their skill set must not overlap with yours.
If you are a tech guy, try to hire someone from Sales.
You can hire some outstanding Interns in Start. You can reach out to colleges directly for intern hiring or try portals like Internshala.
Keep every other cost in start minimum, until you make money from the business.
Focus on Sales, not Scale in Start
The only thing that will make your small business success is revenue.
Focus on sales from the first day.
Trust me everything else is secondary, and you must keep this mindset.
Find your first paying customers with the resources you have. Once you have the paying customer, then every other thing will happen with ease.
Every rupee you spend on marketing must be sales focused in early days.
Make frameworks and processes so that you can efficiently run the business without getting busy.
Stay Focused and Keep Going:
Once you have your small business started, its time to make it prominent and successful.
Many small businesses fail because founders lose their focus and switch quickly.
My one piece advice is just to stay focused and keep going, do not get distracted.
In this competitive world, it is always tough to start businesses and challenges the existing one. However, you must also understand that if you can make it better for customers, you will surely get a win.
Hope this guide to starting a small business in India will help in launching your small business.
If there is anything you would like to share and can help readers, please share it via comments below.
Best of Luck for your venture.