A Guide to Starting a Business
Entrepreneurship has gotten more popular over the years. Gone are the days when the general appeal was for a 9-5 job or working for a blue-chip company or a multinational. Nowadays, it is cool to announce that you’re starting your own business, even with all the risks that come with it. However, despite the risks and difficulties of starting a business, there are huge advantages to an individual and the economy.
India’s improvement on the ease of doing business index has made a good case for starting a business. Per World Bank’s ranking, India ranks 63rd among 190 countries in the ease of doing business index in 2020. Also, SMEs in India is growing at an annual rate of 10%. So there’s never a better time than now to start and grow a business in India.
What to Do Before You Start a Business
There are challenges to starting a business from scratch anywhere in the world, and India is no exception. But for the tenacious mind, the process is as rewarding as the end itself like it is with playing cricket games on parimatch.in/en/page/cricket-uae-t20-league. Of course, starting a business involves processes and technicalities, but more importantly, a business needs a solid structure and firm legal backing.
Before you conclude that you’re starting a business and narrowing down on the exact business, you’re going into:
- You may need to introspect to determine your strengths and weaknesses.
- You’ll need a starting plan and a growth plan.
- You’ll need to set goals for yourself and the aims and objectives of the business you’re starting.
Aside from all these, you need to;
● Conduct market research
One of the most important things to do when starting a business is to know what the market says about it. Is the business viable? How large is the market for your product? Who are the people operating in that sphere right now? How much are your goods or services?
● Determine your target audience
Who would be buying your products or services? It would help if you determined how people need what you’re offering. How easy would it be to convey your message to the people you think need what you have?
● Research your competition
Having competition is not a bad thing. If, for anything, it shows there’s a viable market for you. Who’s the competition? Who are those operating in the market you’re going into right now? Researching and learning so much about the competition will give you enough insight to make salient decisions.
● Validate your idea
Lastly, validate your idea. Take your product to your target audience and make them see first-hand what you’re offering. Speak to them to hear their opinion on your product.
How Should You Go About Registration and Licenses of Businesses?
It would help if you created a legal framework for your business. In India, this means getting a bunch of licenses and registrations. Generally, this starts with checking whether the chosen business name has not been used previously. You can do this online by running a search on the MCA’s website. After getting your business name registered, the following documents need to be obtained.
● Incorporation Certificate
This is provided by the Ministry of Corporate Affairs, proving that the company is a legal entity.
● Director Identification Number
A DIN is a special number provided to directors of incorporated companies. It can be obtained by filing a DIN-1 application form online.
● Digital Signature Certificate
A DSC is an issued electronic key that validates and identifies the certificate holder.
● Permanent Account Number
PAN is mandatory for opening bank accounts and filing income tax and TDS returns.
● Tax Account Number
The TAN is a number issued by the income-tax department to all entities required to deduct or collect tax at the source.
● GST Registration
Goods and Services Tax registration is mandatory for businesses involved in the intra-state supply of goods and services, irrespective of turnover rate.
● Professional Tax Certificate
A company files a form to the State Profession Tax Office to apply for the Profession Tax Certificate.
How Can You Get Funding for Your Business?
You may need to seek funding for your business, especially if the idea is way over what you can bootstrap. Most small businesses begin with loans and grants from family and friends. Other sources of funding are;
● Bank Loans
Once you’ve put together a good structure for your business, approaching a bank for a loan is possible and easy to get.
● Angel Investors
Big names in the Indian Angel Network can invest in your business if they verify your pedigree.
● Venture Capitalists
VCs normally look to invest in big businesses with huge prospects. So, if your idea fits the bill and you’re able to convince them, you might get funding.
You may also start a crowdfunding campaign online. But, again, you might be lucky to find lots of people willing to fund you with little money.
● Business Grants
There are several government aid and grants for startups and small businesses in India. Seek them out and get acquainted with the modalities.
Many things could go wrong in starting a business, and the entrepreneur’s job is to know how to put out many fires simultaneously. Therefore, you need to develop many skills as you progress in the journey of doing your business. You will learn much on the job, so brace up for a jolly ride.
Building a solid brand of followers who would love your brand and what you do is also vital to starting a business. These people would be your brand evangelists if you can grow and nurture them to love your brand.