How to Start a Startup in India in 8 Steps

Introduction

How to start a startup in India? It sounds fascinating. Almost every college student and millennial has thought to start a startup once in a lifetime. Startups are cool, aren’t they? Also, it attracts peers, but, in real life, it is not that simple. It is not easy if you are willing to start a startup in India. You only need to invest in your idea. But it should be a strategic and long-lasting startup that will help you increase your brand, and the vision must be your end goal. Here are some of the major steps to answer how to start a startup company in India. The highlights of this article are as follows.

  • Eight steps are necessary to start a startup company in India.
  • Answering all questions – How to start a startup in India?
  • Detailed analysis of every step.
How To Start A Startup In India
May 11, 2022
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Table of Contents

Necessary steps required to start a business

Every entrepreneur, before starting up any business, should be aware of a few of the essential things such as –

Idea Generation

If you want to learn how to start a startup in India or anywhere else, idea generation is the first and foremost step. So, what exactly is an idea of a business? It is simple: whatever problem exists has some solution; the solution is your idea.

For example, the Co-Founder of Rebus (Bangalore Based Startup) could not find a bus to go home at the festival time. It was due to unmanaged bus service by the operator. So, it was a big problem, and now Rebus came up with the solution, which ultimately managed it. Currently, the company is worth 85 million USD.

Now you must be clear with the concept of problem and solutions, which is very important to start a startup company in India. But there are other ways of idea generation identification of problems, as follows.

  • Market Research is one of the best ways for idea generation. Market research will help you know what kinds of products or services are in the current market. Also, it will identify the consumer needs, which could become your main idea.
  • An innovative idea that does not exist is the best idea you can choose. However, if you have something that will help modify any existing idea, it could be helpful too.
  • Idea generation should focus on the consumer study as well. You should develop the product that should be necessary as per customer taste. Moreover, these types of products have great chances of success.
  • These are the aspects you should keep in mind to generate an idea. Also, your final idea should be good to go for further process.

Prototype Development

After you come up with a good product idea, the next step is prototype development. In this stage, you will develop the base model of the product, and it is not your final product. But it is just a replica of the actual product and will resemble the features and quality. The main reasons for prototype development are as follows.

  • It will help you understand the product’s functionality and how it will work in the market. It will also help you to know how it is working.
  • The prototype of any product is shown to experts, and business consultants would provide their expertise. So, it could be helpful for early testing in the current market scenario.
  • The prototype is sometimes used in the early fundraising for the company too. Moreover, most banks and other debtors lend loans based on the prototype.
  • There will be many bugs and uncertainties in developing a new business product, which will help to tackle all these. And finally, you can land up in making a better version of the product through R&D involved in it.

These are the necessities or importance of the prototype in any business. Also, the prototype will vary for different businesses. If you are involved in a product-based business, you have to do R&D of the product. It will involve various testings as well. However, you have to work on a basic network or your medium of service model for a service-based business.

Business Planning

After you have a prototype of the product, now you have to plan your business. It is a considerable step you must follow to start a startup in India. Any similar product can have many operating companies or a startup, but every company’s business model will be different. So, it is the most crucial factor to start a startup in India, where the competition is great. The factors of business planning are as follows.

Revenue Model

If you have any startup idea, it must have a certain revenue model through which it can generate its revenue. The revenue model is simple for product-based businesses like Boohoo (Clothing Based Startup): you have to sell products. The higher product you sell, the higher revenue you will get. However, a service-based business revenue model is a bit difficult. For example, Tomato (Online Food Delivery App) has a complex revenue model. It is because there is no direct business from customers and no fixed revenue. So you have to come up with a good revenue model which is most suitable for your business. And the revenue model should be flexible, achievable, and simplified.

Operations

You have to develop your operations management before starting a startup in India. Operation management involves how you will conduct your day-to-day activities. Moreover, it will also include the various levels of operations you are going through. Under the operations, all other aspects of a startup will be included as well.

Fund Raising

If you have an idea, you have also made a prototype and a business model. Then it will be the right time to start raising funds for your company. However, it won’t be easy to get a satisfactory fund without entering the market. But you can try to raise try because getting into business funds is very important.

To start a startup in India, you have to rely on your capital, family, friends, bank loans, and moneylenders for the initial funding stage. Since you cannot run a business without any funds, you have to get it anyhow. And after you successfully raise funds, you can start your startup.

Initially, at the early stage before starting a startup in India, you should invest capital wisely, which could be bearable for you. Then you can again make more funding rounds and even approach angel investors, VCs, and Banks.

Building a Team

You cannot run the business alone, and if the business is on a large scale, it will be impossible to run the business alone. So, you will need a team with you even though you are in the initial stage to start a startup in India. While building a team, you have to consider the following aspects.

  • Size and the operation level of your business where you need a team. If there is a chain of operations, you will need a huge team.
  • Is your startup a Product Based or service-based? Service-based businesses may have different requirements, whereas product-based businesses require different skilled teams.
  • The team should also consist of a lawyer for legal matters, a CA/ accountant for finance, and a good consultant in the field.
  • The position of CEO, CFO, CTO, and CMO must be clarified. And you have to choose some co-founders in the company for the proper division of work.

You have to keep in mind all these aspects before starting a startup in India. Most importantly, you should make an energetic and passionate team and allow youth and freshers.

Legal Aspects required to start a Business

You have to look after many legal terms and conditions for starting a startup in India. Some legal aspects are as follows.

Licensing

Many startups require various licenses, which you need to get. For example, any food business will require FSSAI licenses. Unless you have the license, you cannot start your company. Similarly, other businesses will require a license that you have to get.

Business Registration

To start a startup in India, you have to register your business and get a GST registration. However, you will need an import and export license for international business.

Patent and Trademark

If you have any new and innovative business or idea, you should get a trademark and patent. It is not compulsory, but it will secure your business in the long run.

Establishing the Market

At this moment, you will have everything already set up. Now, it is time for you to cover your marketing area. It is the most crucial step that will help you become a startup in India and sustain itself in the market. Also, you have to spend a chunk of your capital on marketing. Similarly, marketing itself is a topic, but I will explain briefly the various steps you can use in marketing.

Target Audience You have to identify your target audience, which will connect to your products.

The target audience should be pre-determined before product development.

Market Segmentation You will need to segregate the market as per your target audience.

Whatever market has the best response will be your main priority.

Consumer Satisfaction The product must have the ability to satisfy consumer needs.

To satisfy your target audience, you have to use a mixed product, place, and price.

Advertisement and Promotion A fair amount of investment must be in advertisement and promotion

You can advertise your product from an advertising firm and other methods too.

Marketing Analysis After all these steps, you must check the expected and actual results.

If the analysis is positive, follow up the method. However, if the result is negative, you have to change your strategies.

You have to follow all these aspects to start a startup company in India or anywhere else. Also, these aspects are very flexible, which you can change at any moment as per your business requirement.

Also read about : 

How to Sell Products Online – High Profit Making

Entrepreneurship in India Detailed Analysis and its Roles

Without investment businesses of 2022 | Best zero investment business

Ready for Revolution

If you are going to start a startup in India, you should keep in mind that you will create a revolution in the market. The Indian market is very diverse, and consumers change their preferences very easily, so you have to create a monopoly and sustain it. Also, you must have a backup and alternative to remain in the market.

No startups get success easily. Only the long-lasting and someone who has fighting skills can survive. For example, Part was the first FinTech in India, and it has market shares. But Phonepe has the same qualities as Paytm is now leading the market.

Conclusion

These are the eight steps you have to follow for a successful startup company in India. However, there are other steps that you have to keep in mind. But these all are the most crucial ones that you have to keep in mind. If you can achieve these steps to a good extent, you can have the best Indian market startup company.

Frequently Asked Questions (FAQ) about How to Start a Startup in India

Q1. How to start a startup in India with no money?

Ans. These students and millennials mostly ask how to start a startup in India with no money. The answer is simple: get a kick-ass idea that is achievable and do the proper research. Also, you have to make a great business model which could attract investors instantly. So if you could do it, you would get investment at the initial stage, requiring no money from your pocket.

Q2. How to start a startup in India alone?

Ans. The simple answer to this question is to do all the work. You have an idea to make the product and start a startup in India. You have to be a multitasker, and many entrepreneurs may have done it. So you can also do it alone.

Q3. Which startup is best to start?

Ans. It is the question you have to find an answer to. You have to do your research and find out the most suitable startup available for you.

Q4. Can anyone start a startup in India?

Ans. Yes, anyone can start a startup in India. However, it would be best if you had some qualities to succeed in the same startup unless you will only have an unsuccessful startup.

Q5. What does a startup founder do?

Ans. There are some major responsibilities of a startup founder.

  • Raise Funding
  • Market Leading
  • Bringing Resources
  • Decision-Making
  • Dealing with Investors

 

 

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