Starting a new business requires a certain amount of capital. The amount of investment required to start a business would differ based on the business model and the business plan. However, the investment in the business has nothing to do with the success of the business or potential size of the business. For instance, Infosys started in 1981 with an investment of $250 (Rs.15000) is now an $8.64 billion (Rs.54000 crores) global company. Therefore, if you are an entrepreneur with a limited budget, you can follow the following steps to start a business.
LLP Registration with EMI Option
The first step in starting any business is to incorporate a new business entity. Incorporation of a business entity would facilitate the opening of bank account for the business, obtaining tax registrations and invoicing clients. LLP (Limited Liability Partnership) registration is the low-cost business registration .
Sell on Ecommerce Portals
Once the business is registered, becoming a seller on Flipkart or Snapdeal is easy. The articles on “How to become a seller on Flipkart” and “How to become a seller on Snapdeal” provide detailed information for becoming a seller on an established eCommerce platform. Becoming a seller on an established eCommerce portal like Flipkart or Snapdeal or Amazon provides easy access to potential customers. Further, as aspects relating to marketing, technology and logistics are taken care of by the eCommerce platform, you can easily start generating revenue.
Start providing Services
Starting a business that provides services oftentimes requires very little investment and can be scaled up easily. Businesses such as Digital Marketing Agency, Medical Transcription, Web Development, Tutoring, etc., require very little investment or infrastructure to start. Here are also some great Home Based Business Ideas. Further, the Government of India provides an exemption on Service Tax applicability until a business reaches an annual turnover of Rs.10 lakhs. Therefore, small businesses that provide services do not have to collect service tax from customers, giving an edge over established businesses. You can also find numerous clients for starting a service business on platforms like Elance and Freelancer.
Compile a Great Business Plan
If you have a great business idea but no funds to execute, then preparing a business plan would be the way to start. Today more than ever money is not required to start a business with plenty of private equity firms and angel investors looking to fund the next big idea. Therefore, it is important to prepare a good business plan and a pitch presentation to showcase the idea to friends, family and investors. Also, forums such as TieCon, CII, FICCI, etc., conduct regular pitch presentations wherein you can easily reach out to prospective investors. So make business plan and get ready to pitch – if you want to start a business with no money
Government Schemes
The Central Government and State Governments have a number of schemes to promote first-generation entrepreneurs. These schemes provide seed funding for the Entrepreneur to start a business along with the required bank loan. Some of the schemes that provide such funding are NEEDS Scheme in Tamil Nadu, Self-Employment and Talent Utilisation (SETU) Program (announced in 2015 Budget), etc., Entrepreneurs with limited funds can also contact the nearest MSME Office to enquire about seed funding schemes from the government to find ideas for starting a new business with no money.
FAQs
What are the key steps to start a business with minimum capital in India?
- Identify a viable business idea: Look for opportunities in sectors like service-based businesses, online ventures, or small-scale manufacturing that require minimal investment.
- Business registration: Register your business as a sole proprietorship or partnership to keep initial costs low. Consider opting for a Limited Liability Partnership (LLP) if you have a partner and want to limit personal liability.
- Create a business plan: Outline your business goals, target market, revenue streams, and strategies to operate efficiently with limited resources.
- Cost optimization: Focus on essential expenses only. Utilize low-cost marketing channels such as social media, networking, and word-of-mouth to promote your business.
- Bootstrap: Start small and reinvest profits to grow gradually. Avoid unnecessary expenses and seek cost-effective solutions for business operations.
How can I finance my business without a large capital investment?
- Bootstrapping: Use personal savings, funds from family and friends, or credit cards to cover initial expenses.
- Crowdfunding: Leverage crowdfunding platforms to raise capital from a large number of people who believe in your business idea.
- Grants and subsidies: Research government schemes, grants, and subsidies available for small businesses in India. These can provide financial assistance without requiring repayment.
- Angel investors and venture capitalists: Present your business idea to angel investors or venture capitalists who may be willing to invest in exchange for equity in your company.
How can I reduce operational costs for my business?
- Remote work: Utilize remote work options to reduce overhead costs associated with office space, utilities, and equipment.
- Outsourcing: Consider outsourcing non-core activities such as accounting, IT services, and customer support to freelancers or specialized firms.
- Negotiate with suppliers: Negotiate favorable terms with suppliers and seek discounts for bulk purchases to lower procurement costs.
- Use of technology: Implement cost-effective technology solutions to streamline processes, automate tasks, and reduce manual labor expenses.
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