How to start business in India, 8 easy steps to follow.

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how to start business in india

Oh!! You want to start a business in India? Have you gone mad?

this could be the reaction of your parents, wife, relatives, friends when you first tell them about your decision to start a business, but trust me starting a business is not that difficult.but often we keeps wondering about how to start business in India.

This blog you reading is a form of online business that I have started for low investment with a lot of potentials to become my main earning source in the coming years.

People all around the world doing all sorts of businesses, be it online or offline to make a living for them, much more happily than doing a 9 to 6 job.

That is the reason I want to congratulate you on your Decision to Start your Business from anywhere in India.

But if you are thinking about how to start business in India?

then This post will guide you from start to end for starting a business with ease.

 

Many people think that doing and running a Profitable business is difficult and only certain people from a business background can do this.

Getting a good education and doing a great job is what we are supposed to do, but time is changing fast and getting a good enough job is becoming difficult due to tremendous growth of population and competition for the same.

In today’s world where there is a lot of information is available for us to study and quickly starting our business, it is definitely not a good choice to keep doing the same old jobs which are restricting our freedom.    

if you already decided about Product, Service you want to start your business with, you already took the 1st step to start a business.

if you are still thinking about what could be the best business opportunity in the world and just stuck in research mode than just pick the right business idea depending on your hobbies, interests, background.

you can start with low or no investment, service or manufacturing based business.

and if you have just thought about starting a business, then just follow along to understand.

 

How to start a business in India in just 8 easy steps.

start a business

0.The mindset required for business

1.Business idea

2.Evaluation of Business idea

3.Making project profile, plan

4.Registering your business

5.Raise money for business

6.Actual Setup of Business

7.Marketing Planning

8. Running and Managing your business

 

let’s imagine that Ashok wants to start a business for himself, he is constantly thinking about starting a business and finally joins an institute under pradhan mantri kaushal vikas yojana to complete his training, during this training he realizes the importance of proper planning to start a business.

He starts searching the internet and asks his friend for suggestions on this, His father recommends him to visit an organization called NIESBUD where he can learn further.

 

Ashok visits NIESBUD and there he meets an expert trainer who tells Ashok about above 8 steps to starting any business along with some important skills as below.

 

1. How will Ashok talk with his customers?

2. How He will establish a relationship with them?

3.How he is Plan to use the money for his business.

4. How many employees he want and how will he manage them?

5.How he is going to improve his overall leadership skills.

 

After this Ashok learns about the first step – Business Idea

business idea

Expert tells Ashok to start with people who are facing a problem with any product or service, he can generate business ideas from there.

For example, now we can book railway and flight tickets from the comforts of our home.

 This solved the problem of reservation for both railway staff and customers. you may also turn such a problem into a business idea.

Next, are people who face poor service quality of a certain service or product, an example is of OLA which started an online app to solve poor taxi service people are facing.

we can also improve such service to create our business.

then there is a gap between certain services which can be utilized to create our own service, product, for example, now electric bikes are coming in India to fulfill the gap of environment-friendly vehicles.

a business idea can also be taken by carefully improving exiting service, products by offering better service.

for example, Zomato improved all ready established food ordering service to the next level to create a big business.

this covers our 1st step, you must ask following questions after reviewing this step

we Got a Business idea from

a) solving problems

b)Poor service Replacement

c)filling a certain service Gap

d)Service Improvement

Now ask yourself.

1. What did I learn from this step?

2. How I am going to use it?

3. What will I do Next?

After this you should have your own service/product idea, you can also find HERE more than 81 business ideas.

Now as Ashok decided on which service/product he will start its time to move on to the next step.

 

2nd step – Evaluation of Business idea

Finding our Target Customers

target customers

to check our business ideas we must ask

a)Are My services/products are really sellable?

b)where, in which locality I will be selling this?

c)to whom and how I am going to sell?

d)Can I manage my business effectively by selling to said customers?

 

After answering these questions you will find about your target customers and their needs.

for example, if I come up with a unique idea of selling Hoarding/Advertisement spots all over India by coordinating between publishers and agencies that actually give this service, through an online portal, I must answer the above questions.

a)Are My services/products are really sellable?

Yes, this is a very unorganized business where many businesses need a one-stop service to display their Ads all over India.

 b)where, in which locality I will be selling this?

I can start this service initially with my city

c)to whom and how I am going to sell?

 I am going to sell this service to business who needs to display their advertisement hoardings, I will contact them and tell them about my one-click solution to their hoarding needs

d)Can I manage my business effectively by selling to said customers?

Being an online startup and I am going to improve an existing service, I can manage my business with ease.

Competitor Assessment

 

After this, it’s very important to make an assessment of competitors.

a)At what price they sell their Service/Product?

b)What are their visible strengths and weaknesses?

Answering the above questions will help in deciding the quality and price of service/Product, By doing this you will be able to serve your customers better than how your competitor delivers.

to become successful it is very important to provide a service/product of distinct and better quality.

At this point where you decide on the quality and price of service/product, you need to make an estimation of yearly sales for the next five years.

this will help you to guess the profits that you can make in the coming years. After the estimation of sales of service/Product, you must estimate the working capital need for your business.

working capital is money required for daily business expenses like rent, power, manpower salary, etc.

next, an estimation of startup cost, as the name suggests money required to start a business, also called as seed money completes business idea evaluation step.

In this step, we learn.

a)Target customers

b)competitors evaluation

c)Sales evaluation

d)Working Capital

e)Startup capital

 

3rd step – Making Project plan

After completing the above step Ashok moves on to the next important step and prepares a detailed project plan with the help of an agency.

 

4th step – Registration of business in India

For running a business legally in India we need some licenses, documents, and registration.

business can be registered in different types as required as below-

1.sole proprietor firm

sole proprietor firm is a type of firm which may be an unregistered business entity that is owned and controlled by one person, GST registration can be obtained in the name of a person who is controlling the business.

2.Partnership firm

This is a type of business in which two or more people agreed to run a business to earn a profit.

3.limited liability partnership firm

It is a type of firm where partners have limited liability in the firm that means personal assets of the partners are not used to paying off the debts of the company.

4.Private limited company

This is a type of business registration in which liability of members (min2, Max200) is limited to the number of shares respectively held by them which can not be traded publicly.

5. The public limited company

this type of company has limited liability and offers shares to the general public for trade.

6.Unlimited company

in this company members and shareholders are fully liable to cover company debts, even by using their personal assets.

7. Joint Hindu family business

this is a business as the name suggests involves only members of a family, and applicable only in India.

8.Co-operatives

This is a type of business that involves a minimum of 10 persons who join each other to form a business entity to serve their business interests.its primary motive is to serve members rather than earning profits.

 

Now that our fiend Ashok understood the different forms of business registrations, next he should decide about the business premises, that is the location and affordability of the office he will operate a business from.

to evaluate business premises location and its cost, he needs to know

office location business

1.whether he has a sufficient budget to open an office or not?

2.if yes, than where he plans to open and what facilities are available there?

3.is this location is customer-friendly?

4.is it suitable for the transport of goods for his business?

 

Next is Registration of tax

to start a new business Ashok needs 

1.New business PAN

2.TAN tax account number.

With the above business gets a legal identity, Service tax registration is required after annual business turn over crosses Rs10 lakhs.

After this apply for a license for commercial activity under shop and establishment act from the local authority.

similarly, you need to open a bank account and may need some other licenses as per your business category.

 

5th Step – Raise money for business

raise money india

 

1. choose the right source/Bank loan for a business start.

many banks have different schemes for a business loan with their terms and conditions.

a)loan for business in sbi

b)business loan hdfc bank

c)business loan axis bank.

2.Project report preparation and submission

to get a business loan quickly and without any problems, Ashok should approach banks with detailed project reports on our business which he intends to start.

business checklist

to make a good project report it must include

a)Cover Page

b)Table of Content

c)Executive Summary

d)Project Development and Production Details

e)total resources required for business

f)Presentation format

g) Likely income and expenses details

h)Final Summary

3. Identify and approach Guarantor for your bank loan

As you already know financial institutes need guarantors to approve your loan application with them.

it is a good idea to keep prepared and tell your known persons about this. banks also ask for collateral.

4.Taking loan

to raise money and to take a loan you may approach the following entities.

a)Various Banks

b)Non-banking finance companies

c)Relatives/Friends

d) microfinance institutes

e)Mudra Yojana (sbi mudra loan) – a government scheme to get the loan without guarantor

 

6th Step – Actual Setup of Business

 

office setup india

a)Office setup

to set up his business and office Ashok needs to invest in modern technology and various equipment’s, also every business needs basic to advance furniture, AC and interior fitting as needed.

it is very important to make office setup as pleasant as possible for customers. working staff also should have their space.

b) Product/Service Quality

Quality is the backbone of any profitable business.

if you want to grow business fast it is very important to keep quality standards very high and maintain the same.

this way your business will get repeat customers easily. it is a good practice to keep standard work procedures for your business.

c)Hire and train your employees/staff

you must plan to hire the right people and train them for the right job.

to get good applications from interested candidates you can use newspapers, the internet, manpower agencies, etc.

d)Customer feedback

Set up a system to get feedback for your product/service from your customer.

this is very important to maintain quality and customer satisfaction.

 

7th Step – Planning for sales

 

a) Marketing for business

there should be only one target for your business marketing and that is ‘Customer Satisfaction’.

your profits come after that. your marketing plan should base on this factor.

b)Business cards

Plan to print an attractive business card, this is the first impression of your business on customers.

you can print broachers, flyers, etc to give your business information in an effective way to the public.

c)Pamphlets  and posters

you should distribute pamphlets and posters through various channels like newspapers, a local cable networks. these can also be displayed at local shops, tea stalls.

d)Online marketing plan

Online marketing plays a major role in the success of a business. plan carefully about your facebook, google marketing strategies.

 

8th step – Running and Managing your business

 

Basic requirements

a)Order book

An order book is necessary to plan and schedule your work effectively.it is important to track all of your orders and give timely delivery to customers.

b)Receipt book

when customer purchases you must give a receipt to the customer.

it will help to know cash coming in your business through your selling efforts.

c)Payment book

similarly, you should maintain a payment book, to know all the payments you do to run your business.

d)Cashbook

Cashbook is where we make every entry of all financial transactions. this will include everything cash coming and going out of business.

e)Maintaining account

when starting a business, keep a watch on account every day, month and year.

it will help in completing business goals and setting new ones by doing necessary adjustments.

f)follow govt. rules

Never forget to register your business with the local authority and display your shop act license at an office or shop.

look carefully to deposit service tax and GST regularly to govt. to avoid future legal actions.

Conclusion

Finally, ask yourself

1. What did I learn from the above steps?

2. How I am going to use it?

3. What will I do Next?

if you are still confused then go to step 1 and read again carefully.

Starting a business is a very exciting and rewarding process if you do it properly.

I have listed above 8 basic steps for you to know and to answer question, how to start business in India?

Online business, on the other hand, is a totally different ball game, but the above steps also apply to it.

the only thing that is required is a business mindset and to remember two words ‘TAKE ACTION’.


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