Until a few years ago, entrepreneurship was considered risky by most people. The focus was on stable jobs and regular paychecks rather letting one’s dreams take fruit. Fast forward to present times and more and more people are looking for opportunities to become their own boss and set up their own business.
Some of them are trying to create service-based firms while others want to set up manufacturing industries. Irrespective of which category you belong to, you need to start somewhere. Creating a start-up is the first phase of this process of having one’s own successful business.
If you are an entrepreneur who wants to start a startup in India, this article will help you understand the steps you need to take to realize your dreams.
1. Find Your Idea
Most budding entrepreneurs have a lot of ideas. It is important to pick one that has the biggest potential and then create a business plan. If you have many ideas, you can compare them with one another by checking out which one of them is addressing problems persisting in the current market. Monetary gains need to be taken into consideration as well as a business can succeed only if it makes a profit.
2. Build a Team
There are so many aspects of running a business such as technology, sales, marketing, etc. that you cannot do it all alone. You need to build a reliable team where each person has expertise in one or more key areas that are required to run a company. A founding team of 2 or 3 members is good enough. Make sure to only have people you trust on this team since you cannot waste time in monitoring strangers in a start-up. This will make all the difference between your company’s success or failure. Your energy needs to be focused on building a business that has the potential to grow.
If you want to work alone, you can decide to be a sole proprietor. However, do keep in mind that you and your business will not be separate entities, which means that in case of any unfortunate default, you will be liable to pay your debtors from your own assets.
Also read: How To Register A Startup Company In India
3. Register the Company: As a promoter of a startup, you need to present yourself as a serious player in the market. It helps if you register your business as a private company to start with. If you want to be a solo entrepreneur, you can register your company as a One Person Company. Some people have two or more friends or relatives who they can team up with to form a company. For them registering a Private Limited Company makes more sense.
Here are the steps you need to complete to register your company:
- Get a Digital Signature Certificate (DSC)
- Apply for a Director Identification Number (DIN)
- Submit application for company name approval to reserve a name for the company
- Create Memorandum of Association (MoA) and Articles of Association (AoA)
- Submit application for company registration with the relevant documents and forms
Once you have registered your company with the Registrar of Companies (RoC) and received approval, you need to apply for Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN) and Goods and Services Tax (GST) Number. Your company will then be a legal entity and you can use your company name to do business with your clients.
You can hire a CA or CS from Urban Company to help you register your company since you may find the process of company registration a bit difficult to handle.
4. Hire Staff: If you want to get bigger projects from your clients, you need to show them that you have a team that can handle the project. Hire people who are willing to go the extra mile and grow with the company. Keeping a screening or trial period before their employment is confirmed works well since you can let go of the person who is not performing well.
5. Raise Funding: There are plenty of investors in India who are interested in helping startups grow provided they see profit in the venture. You can get funding from them if you present your business or business idea as a profitable venture in front of them. If you do not want to spend your time in raising funds, you can ask friends and family members for funds by giving them an equity stake in the company. These days, you can also sign up with crowdfunding sites and run a campaign to raise money. Moreover, the government has come up with a slew of initiatives such as Startup India, Stand Up India, Made in India, Pradhan Mantri Mudra Yojana, etc. to help startups.
Build a business that you will be proud of and make sure that you have a solid business plan to expand in the future. An entrepreneur can only be successful if he/she is not afraid of taking risks and has the ability to look beyond the present.