How to Start a Small Business, The corporate giants of the world were not born overnight. Someone somewhere developed a concept, developed a plan, and started a small business. Outstanding dedication and excellent service nurtured it.
The quality and branding sustain it. Earning a living from the comfort of your home is no longer just a wish or a dream but a reality that many people across the world are realizing, it is thanks to the Internet that allows anyone to set up an online business.
start a business in India without registration you need a current account to operate a business without registration. Now the bank will ask you for any government registration to open a current account.
Once you have any of the above registration, you can open a current account and do business in India.
Reading into the history of any major corporation shows that this rule applies consistently. The same sequence is good for the industry of India.
Make in India is a highly visionary initiative by the government to facilitate and enhance India’s manufacturing industry.
It was launched on 25 September 2014. As a result of this initiative, India emerged as the top destination for foreign direct investment globally in 2015, surpassing the United States and China to receive a total foreign direct investment of $63 billion.
Make in India is a visionary step towards a better India, it still faces many challenges, and the biggest hurdle is the poor infrastructure and backward technology in our industries.
It encourages Indian manufacturers and service providers to strive for quality to meet and exceed global standards.
‘Make in India’ also encourages entrepreneurship among Indians through incentives and offers for setting up micro, small and medium enterprises.
how to start a small business in India
Here is a step-by-step plan to start any type of small business idea in India. I am sure you will be able to create a solid blueprint and start your own small business after reading this.
Deciding on a business idea
You will have your own small business idea. A large number of lucrative business ideas are available on MSME websites and Make in India websites.
India has opened doors to various sectors for small businesses including defense and aerospace for MSMEs. There are also opportunities in hospitality and tourism, manufacturing industry, and agriculture under ‘Make in India’.
Any such small business can be started by Indian citizens, NRIs, Overseas Citizens of India/Person of Indian Origin, and foreign nationals in partnership with local people.
Investments by foreign companies and citizens are governed by the Foreign Exchange and Monetary Act (FEMA) of India which is subject to the regulations of the Reserve Bank of India.
Get experience and more training
Start your own small business according to your expertise. Remember, your skills will decide the success of your business. Try to learn as many tricks of the trade as possible.
You can opt for a specialized or vocational training course offered by various recognized institutions of the Government of India. Additional skills can also be gained by working with other established businesses in the area.
It is best to start as a beginner, forgetting all previous knowledge and experience.
It will provide you opportunities to learn more with new perspectives. Technical education certificates may also be required by banks or financiers and licensing authorities to legitimize your business.
Create The Business Project
Uniqueness decides the success of an enterprise. Study domestic and international markets for products, services that are compatible with you.
Get every detail related to your business. Read as many success and failure stories as possible about similar businesses. The first step for any business starts with a feasibility study and a project report.
This can be done on its own or with the help of experts depending on the nature and funding of the business.
A project report should contain details including the name, age, and qualifications of the owner or partners.
Attach relevant experience certificates for the business: They help boost your chances of getting finance.
Include a revenue model with specific details including cost and sales price, taxes, delivery charges, and other miscellaneous expenses. Project estimated revenue for two to three years.
Finalize your source of funds
Most small businesses in India are self-financed or started with funds from family and friends. You will need to have a rough estimate of how much money you will need to start the business.
Also, calculate the finances you will need to keep the business running until it becomes profitable. Entrepreneurs starting micro, small and medium enterprises can demand funds
Banks: Contact various banks for start-up capital offers. Community Development Funds: Focused on the welfare of specific communities, they provide small business loans.
Co-operative Credit Societies: These provide loans to small businesses if you buy their shares.
Venture Capitalist/Angel Investors: These have emerged in India over the past three years and provide great funding opportunities for small, innovative businesses.
Crowdfunding: By attracting investment from a group of friends, neighbors, the community, or the general public in exchange for company stock.
Lending rates and other details can vary and depend on the type of enterprise, projected return on investment, risk factors, among other factors.
Decide your place
Starting a small business in India requires extra at home or shop, stall, workshop, or office.
It is mandatory under Indian laws to register your business with the local municipality/village administration. The civic body or gram panchayat will give a permit to conduct your business under its jurisdiction.
Utility providers ask for Municipal/Gram Panchayat registration before giving electricity and water connections to the premises.
It serves as proof of the physical address of the business. Taxes levied on businesses in rural areas are lower.
Business Registration and Legalization
This is a messy, tedious task for every entrepreneur. Registering a business in India can be lengthy and complicated. Thanks to the direct instructions of Prime Minister Narendra Modi, the Ministry of Corporate Affairs now registers new companies within a working day.
All the formalities of registering the company can be completed online. Details of required documentation and other frequently asked questions are listed on the website of the Ministry. Licenses from various state and central governments are mandatory when starting a small business.
Get yourself tax registered
To set up a small business you need to obtain a Permanent Account Number (PAN) and Taxpayer Identification Number (TIN). These are issued by the Income Tax Department. It is relatively easy to obtain PAN and TIN numbers.
You can approach any of the PAN and TIN service centers authorized by the National Securities Depository Limited by attaching required documents and paying a nominal fee and submitting the filled form.
PAN and TIN numbers are allotted within 30 working days from the date of application. PAN and TIN numbers are useful while paying taxes to the government every year.
Create your business website
Based on their nature, small businesses in India can be set up in three categories:
online and physical
Trends demand every business to maintain an online presence. This can be done by creating a website or social media page like Facebook, depending on the budget and the type of product/services to be offered.
E-commerce websites are ideal as they allow direct ordering and multiple payment options. Purely physical businesses also need an online presence to match competitors and reach a wider customer base. It is quite cheap to get your own website in India.
Hold market position
Use all your creativity when starting a small business. Give your enterprise a great, easy-to-remember name. The company logo is the brand ambassador of the business. Hire a professional designer to create a unique logo for your small business.
This logo will someday introduce your better products and services around the world. All successful businesses retain the logo, or at least the version, that they used at launch.
Print official stationery showing the logo, brand, company name, and contact details. This includes letterheads, envelopes, invoice books, payment vouchers, and other items required for official transactions.
Getting staffed with low wages
This is a major area of your small business. Typically, most entrepreneurs launch a proverbial one-man show. Some seek the help of family members, including spouses, grown children, siblings, or parents.
This may not always be possible. Educational institutes or websites are the best way to get qualified employees at starting salary. Almost every training center gives job assurance.
Register yourself with the job websites of institutes offering free practical training to fresh graduates on a stipend basis. It works to upgrade your skills while preparing the staff for your own small business.
Promote your small business
Intense competition demands that you promote your small business well. Advertising can cost a lot of money and cause a huge loss of your capital. A good presence on Facebook serves this purpose, along with using micro-blogging sites like Twitter to introduce your company.
You can also launch videos of your company, products and services, key features, and other information on YouTube, and upload relevant photos to Instagram. A great profile on LinkedIn for your business will ensure that you reach the right audience.
You can also use traditional methods to promote your business such as advertising in the newspaper, local radio, distributing pamphlets, etc.
How to start a business in India with low investment?
Here is a step-by-step plan to start any type of small business idea in India. Someone somewhere developed a concept, developed a plan, and started a small business.
How to start a business in India from home?
Earning a living from the comfort of your home is no longer just a wish or a dream but a reality that many people across the world are realizing, it is thanks to the Internet that allows anyone to set up an online business.
Cost of registering a startup in India
The cost of registration of a sole proprietor company is around Rs 2,500 while that of a partnership firm is around Rs 5,000.
Can I start a business without registering it in India?
You need a current account to operate a business without registration. Now the bank will ask you for any government registration to open a current account. Once you have any of the above registration, you can open a current account and do business in India.