Start Business India

Aspiring to become an entrepreneur or businessman and setting up businesses have been rising tremendously among the people. In India, everyone, especially the youth, is looking to develop unique business ideas and create opportunities to grow. This, in turn, is reaping benefits for both the business and the economy at large.

India is a land of opportunities, and to start and manage the business more straightforwardly, the country is equipped with proper methods and planned strategies that can make your dream come true. Though starting a business can be a challenging task, now, due to smooth work procedures and operations, things have turned easy.

the Indian business scenario, the business structure witnessed a paradigm shift over the years, providing immense opportunities for the upcoming and growing sectors of the economy.

There is no doubt that the Indian government played a vital role in transforming Indian businesses by opening doors to possibilities and encouraging them to take these to their best advantage.

With the changes in Macroeconomic reforms, finance reforms, tax reforms, and relaxing the market, India revamped the entire map of doing businesses in India.

As a result, the scope of doing business in India has grown in magnitude. With the Make in India campaign, more and more companies are entering the market, focusing on achieving their operational and business effectiveness and creating a brand in itself.

Now, doing business in India is not a tedious task. Instead, it is made simpler for everyone to access sources via the schemes and initiatives and expand the business globally.

With these facts, it is sure that Indian businesses have a very long way to go to leverage up to the best possible way.

What are the types of businesses to start in India?

Sole Proprietorship Firm
Partnership firm
Limited Liability Partnership
One Person Company (OPC)
Private Limited Company
Public Limited Company

1. Sole Proprietorship Firm

A sole proprietorship business is owned and managed by one single person. The small traders and merchants come under this category. Under this form of business, the registration is recognized through service or GST registration.

2. Partnership firm

A partnership firm is a form of business where two or more individuals agree to come together and manage the business’s operations, as mentioned in the partnership deed. The setting up of a partnership form is less complicated and is a viable option, especially for home businesses.

3. Limited Liability Partnership

A Limited Liability Partnership differs from an ordinary partnership in terms of the liabilities of the partners.

Under this, partners associated with the firm are protected from negligence, misdeeds, and incompetence by other partners that do not demolish the Partnership.

4. One Person Company (OPC)

Under One Person Company, the business owner enjoys twin benefits. First being a solopreneur, and second, being a promoter of the company. The person can enjoy the advantages of forming a company except Equity funding or offering employee stock option plans.

5. Private Limited Company

Companies are the most popular form of business structure that is practiced in India. By forming a company, you can take advantage of funding, limited liability, and attracting suitable acquisitions.

The company is bound to conduct meetings and file annual returns stated by government jurisdiction under the Ministry of Corporate Affairs.

6. Public Limited Company

A Public Limited Company certainly has more advantages than a Private Limited Company. These companies have the right to issue IPOs to the public, attract investors and enjoy flexibility. These companies are suitable for organizations that have a different perspective and higher growth possibilities. A few examples include SAIL, GAIL, BHEL, IOCL, and a few more.

Why is it good to start a business in India?

India is now at a very progressive stage. As a result, it is opening up to represent in the different markets across the globe. The Indian government provides a favorable business environment for all the organizations to come up and make most of their plans.

As a result, it is now more viable for businesses to set up their businesses in India to maintain their stability and growth in the market. Adding to it, the businesses can also get the opportunity to work and explore in the international market.

Let’s take a look at the primary five reasons highlighting the advantage of starting a business in India:

Ease of Doing Business
Increase in the Market Demand
Cost-Effectiveness
Provide Sustainable Business Environment
Scope of employment

1. Ease of Doing Business

As mentioned before, the government policies and market have made the procedure of starting a business easy. With the introduction of business-friendly laws, liberalizing the market, and reducing the procedures for registration, the government is providing a great deal to help people in business ease out the mode of starting the business.

I went back to those days of long queues because now the whole process has turned online.

2. Increase in the Market Demand

The demand of the Indian market has been consistently high. From essential items to luxury items, people in India need a variety of everything.

Keeping in mind the pace of population, the demand for the items has been rising high, encouraging the businesses to take the advantage to grow in the respective sectors and fulfill the demand accordingly.

3. Cost-Effectiveness

The process to start a business in India is much more affordable than compared to other countries. You can get the advantage of the accessibility of land, labor, electricity & infrastructure helping you scale the production level. At this point, you will be able to achieve economies of scale, resulting in a drop in the overall cost of production.

4. Provide Sustainable Business Environment

India is a developing nation, and being a host of business activities, the Indian market provides a sustainable environment for any type of business to maintain stability and flourish on a large scale.

India has turned a favorable table towards businesses by supporting the livelihood for the upcoming years.

5. Scope of employment

This reason is an effect of the previous one. By providing a sustainable business environment, the businesses offer employment opportunities to the people belonging to the sector and enhance their living standards.

Step guide to start and plan your business

Think and decide on a business idea
Conduct Market Research
Acquire Skills and Training
Document the Business Plan
Financing the business
Start with the Development of your Product or Service
Build your team
Decide on the location
Register yourself as a business
Create and Maintain a website
Start with getting sales
Level up and grow your business

1. Think and decide on a business idea

Before getting your hands over the business, it is crucial to think and decide on doing the business.

Since there are many lucrative business ideas available, break them down and create pointers, seek guidance, research ideas, and consider every factor before you push the button to start your business.

2. Conduct Market Research

After getting the business idea, the next step is to research within the market to break down the suitability of your objectives. You can start by examining your potential competitors and partners to understand the profound insights and information of the particular industry.

Market research is vital and should be at the topmost priority.

3. Acquire Skills and Training

After the initial steps, the third important step is to acquire the relevant skills, training & experience that can turn your business into a fortune. Before starting a business, it is crucial to learn specialized training courses or acquire the skills by working in different organizations and clients.

Your past knowledge and experience in the specific industry can help you to build fresh perspectives for your business because, after all, no one can understand your business better than you.

4. Document the Business Plan

With so much learning at different stages, it is essential to document your business plan’s evolving aspects like feasibility studies, project reports from start to end, and other details.

By having a full-proof document plan, you can present it better and give your thoughts and ideas a professional touch. This will also help boost the prospects interested in knowing your plan and preparing you for future conduct.

5. Financing the business

Finance is the lifeblood of the business. The businesses need to finalize the source of the funds necessary to start the business.

The step involves acquiring estimates, calculating finances, and figuring out reliable ways to fund the business.

Few of the major sources include banks, Financial institutions, Cooperatives, Crowdfunding, Angel Investors, Venture capitalists, or self-funding.

6. Start with the Development of your Product or Service

After covering the five significant steps, it is now the time to develop the product and service, setting the purpose of a business. While developing your product or service, it is essential to prepare a checklist of finding a manufacturer, setting the price strategies, crafting the product, creating the trial run of the service or product, etc.

7. Build your team

During the initial stages of development, it is only you who will be working for your business. Later, you will require a set of teams that can help you to scale a business. The team members are a partner, employee, or freelancer that best fits your needs.

8. Decide on the location.

Deciding your location is one of the crucial steps involved in starting a business. The factors of the area include your qualifications and the target market that best suits your business operations. Either it can be a small shop, stall, or a full-fledged office.

There should be no compromise on the location because your business is highly dependent on it.

9. Register yourself as a business

After finalizing the finances, product & location, it is now the time to register yourself as a business and mark your presence in the market.

You need to carry out all the formalities of starting a business and complete the registration process that is the first step towards the launch of your business.

10. Create and Maintain a website

The pandemic has already brought the world into an online saga. By having a website, you can maintain your brand’s online presence and allow direct ordering and payment processes of the products and services.

It will also help to create a brand in the market and enhance trust among your customers.

11. Start with getting sales.

This step is your business’s future. Even if you have started, it is crucial to generate revenues by applying different sales strategies and techniques to gather the customer’s attention.

Identifying the target market, growing the customer base, putting ads, creating sales funnels, sampling, sales promotion, or any other strategies that can convert your leads into revenue can help your business live by.

12. Level up and grow your business

Without a growth plan, no business can exist for a long time. As a result, the business needs to indulge in different ways to grow and expand for a better sustainable future.

By leveling up, the business can start a new target market, acquire other businesses, expand their offerings, plan out to market themselves, and create a good customer relationship.

FAQs

How to choose the form of a business organization?

There are various factors that one must keep in mind before deciding the form of business. The common characteristics include business structure, nature, members, types of product or service. After collectively looking at all the elements, you can decide which business to incorporate.

Which is the best form of business organization to incorporate for a short period?

A sole proprietorship is the best form of organization that you can choose to undertake your operations for a short period. The registration process is also simple and easy, suiting the requirements.

Practice area's of B K Goyal & Co LLP

Most read resources