The millennials obsession with the startup is not a new trend in India . Its been a decade it has started but to pin the exact year of the revolution is not possible
Many of the individual have an idea in mind to start a startup company already and others that are trying to come up with something of there interest that can fill a market gap.
Honestly speaking , there is a lot of competition in the market regarding a new startup as there are thousands of new idea mushrooming across the country every month, and you need to be extremely good at what you do to succeed in the startup field .
If you are one among those startup people, this blog will help you know all the details on how you can start a startup company in India, in a step by step manner.
What do you think are some of the few things needed to create a successful startup company in India?
The things needed to create a successful startup is
- to start with good people
- To be super passionate about your idea
- Startup need a lots of hard work
- to make something customers actually want
- to spend as little money as possible
- And be ready to accept failures
Most startups that fail do it big is because they fail at one of these. Its kind of exciting as all mentioned above points are doable ,hard but doable.
How to start a startup in India?
#1. Identify real life problem to cater the need for large population or to have an idea
In particular you do not need to worry if you don’t have a brilliant idea to start a startup company around . An idea to start a startup a startup is only a beginning step. A lot is to be done later and hence a lot of to-be startup founders think that this is the key to the whole process is to have the initial idea, and the next thing that you have to do is execute. . If you go to any venture capitalist firms with a brilliant idea of yours if they sign a nondisclosure agreement many will not take you seriously tell you to get lost. That shows that a mere idea is not worth it.
Many startups change their plan en route its the other sign that shows of how little the initial idea is worth it For Ex – Microsoft’s original plan was to make money selling programming languages, of all things and it is not there current business model .
An entrepreneur should think of Ideas that are always in demand and that can solve real life problems . If you look around at the successful startups in India in today’s date , they all have solved a real life problems that people faced
For example :startups like Ola, Zomato and Swiggy And solving just any problems aren’t enough. It idea should address some real issue that annoys your customers a lot.
#2. Plan your business ahead
You need to be ready with your business plan before you start your operations as it gives you clear idea about a lot of things.
The following things that need to be present are:
- Company Description
- Market Description
- Business Model
- Management and Organization
- Marketing Plan, operational plan and financial plan
#3. Choice of right business structure
We have 3 different types of business structure in India and the choice of right business structure from them is very important it depends on how you want to scale your business.
The 3 types of business structures are as followed
- Private limited company
- Sole proprietorship
- Partnership firms
If you have just started your business that is small with limited resources sole proprietorship is the right choice for you as it is run by individual without any partners unlike the other two , and setting up a private limited company is a complex process in itself .Besides choosing your business structure you need to choose your legal structure too that depends on the business you have started is alone or with other co founders and the stage and growth plan.
#4. What customers truly want
This question should not be addressed only by the startups. Most of the businesses that fail do it because they are not able to cater the needs of there . and it is not just the startups that has to worry about it. At start focus on the smaller customers.
For example: NOKIA was once a global leader of mobile phones , but later company saw its downfall as it overestimated the strength of its brand and didn’t innovated itself with the current trend but later when Nokia decided to launch the innovated product it was too late.
The only way to make something that customers want is to get a prototype in front of them and refine it based on their reactions. No matter what kind of startup you start from the ground I know it will probably be a stretch for you and the founders, to understand what users actually want.
How do you figure out what customers want?
By Watching them, getting there opinions through surveys. Analyzing and observing the current trend and the earlier untouched problem that will help you make your work easier . study your competitors , use social media , the existing data conduct market research .
The odds against succeeding are steeper if you are thinking to start a startup that is to be a big consumer brand .
Looking at the product needs functionality , price , experience , reliability , convenience , design, efficiency and compatibility matters .
And for the service needs empathy, transparency, control, options , information and accessibility matters .
In this process you might be able to find the strategies worth implementing and hence can be used to fill the gaps with your company’s service.
#5. Raising funds
To sustain as a startup you will need funds when you start off and also to cover the initial expenses and later to expand , grow and build inventory some startups are self funded but most are not.
Here are the few important ways you can try out to get the funding
- Angel investors- these are the individual ready to invest in your business in exchange for share or equity in your startup , many of them are with the industry experience and will provide you with valuable advice for your business .
- Venture capital – getting funds out of angels are easier than getting funds out of a venture capitalist .You get funds from a venture capitalist when your startup is of high potential .you also need to give equity in return of any investment you make .
- Bank loans – it is one of the common methods to start your startup company in India. The government has recently introduced many startup friendly schemes and thus it becomes easy to get a loan for your innovative idea of a startup. But this is helpful only in the first stage your business startup once you are on your on you can look for other sources as well . A startup in need different kinds of funding in different stages of its life.
Other than the above 3 mentioned ways you can also go for
- Friends and family loans
- Business loans
- Business grants
How to decide the value of the company
As such there is no rational way to it . As for buyers buying an existing enterprise can be easier and less risky than any startup company starting from the ground. In the initial stage the business is just a bet . The valuation should depend on the idea , type and size of the business
#6. Choosing a workspace
Having an attractive workspace and a work location is very beneficial for any kind of business you have started especially when you have clients to visit your office .Choosing An office space or an office location is very crucial for any business a home office might work if you have just started out which basically depending on the nature of your business.
And after scaling up, you can get a proper workspace . You need to make sure that your office space has all the basic and essential amenities and is located in a good business area.
#7. Registering your startup in the startup India program
Having your business registered in the startup India website https://www.startupindia.gov.in/ benefits you in many ways from helping you secure funds to getting benefits on tax for your startup
#8. Establish the startup brand
you need to build a brand identity for your brand . It doesn’t matter if you have made an awesome product, service or experience the customers are not going to show up on the door until and unless you let them know about what you have created and your startup
- Design a logo build awareness for your brand to help people remember your brand and trust you
- Build a business website to help get a higher rank in the search engine results.
#9. Create a social presence
Brands are built and nurtured on the social platform these days. After building a website you will likely need a great social media presence to help grow your startup and establish the brand identity . Choice of strategy and social media presence depends on the target customers and your product or service you are providing . Social media is a great way to engage and connect with the potential clients . You can choose relevant marketing channels depending on the nature of the business you choose for your startup.
These are the 9 most important points that needs to be followed step by step if you want to start a startup company in India .There are thousands of already existing startup in India and with this current wave of entrepreneurship some more numbers are going to add in this , that doesn’t mean it should scare you from starting what you like . Look up to all the famous unicorns as your inspiration and start your journey. Initially it might take you some time to get all these steps completed so keep a little bit of patience and knowledge to get through all the processes and then move ahead with your operations