From Idea to Launch: A Step-by-Step Guide on How to Start a Start-up Company in India

February 9, 2024
how to start a startup in india

Quick Summary


  • Start-ups are thriving in India due to the growing economy, increased purchasing power, and government initiatives like the ‘Digital Saksharta Abhiyan’.
  • To start a successful start-up in India, you need to focus on idea generation, prototype development, business planning, revenue model finalization, operations management, fundraising, team building, and legal compliance.
  • Key steps include identifying market needs, developing prototypes, planning business models, securing funding, assembling teams, and complying with legal requirements.

Table of Contents

Are you wondering how to start a start-up in India? With the growing technology and digital revolution, many start-ups are being formed. India is a growing economy, as the economy is growing, the purchasing power and income are also increasing. This encouraged the development of new businesses in the market. As of 2018, start-ups have created about 2.64% of the jobs in the market. And with the ‘Digital Saksharta Abhiyan’, a government of India initiative, we saw a new rise in the start-up business in India.

To start a startup business, all you have to do is invest in your idea. But it should be strategic and have long-term goals to make it successful.

Here are some important steps on how to start a startup in India.

How to Start a Startup Company in India

If you are wondering, how to start a business in India. Here are the major steps you need to take to become a start-up owner:

7 Steps to Start a Startup Company in India

1. Idea Generation

If you want to learn how to start a startup in India, idea generation is the first and foremost step. So, what exactly is start up ideas in India? Whatever problem exists has some solution and that solution will be resolved by 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. The idea of Rebus came after this incident. Rebus acts as a solution in finding easy bus service.

Now you must be clear with the concept of problems and solutions, which is very important to know how to start a startup in India. There are other ways to generate ideas to identify problems, which are as follows.

  • Market research is one of the best methods for idea generation. This will help you to know what kind of products or services are in the current market. Also, it will identify the needs of consumers.
  • An innovative idea is the best idea you can choose. However, if you have something that will help modify any existing idea, it would also be helpful.
  • Idea generation should focus on consumer studies. You should develop the product which is required according to the taste of the customer. Furthermore, consumer-centric products and services have great potential for success.

Recommended read: 50+ Incredible Small Business Ideas For 2024 And Beyond

2. 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.
  • Any product prototype is shown to experts, and business consultants to take their expertise. Hence, it can 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 commercial product and it will help you to identify those problems.

These are the importance of prototyping in any business. Also, the prototype will be different for different businesses. If you are involved in a product-based business, you will need to R&D the product. It will also include various tests. However, you’ll need to work on a basic network or your medium of service model for a service-based business.

3. Business Planning

After you have a prototype of the product, now you have to plan your business. It is a considerable step you must know how to start a start-up in India. Any similar product can have many operating companies or a start-up, but every company’s business model will be different. You must first decide about your service and product whether you sell the product online or offline. So, it is the most crucial factor to start a business where the competition is great.

4. Finalise 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 to make your business grow.

5. Streamline 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 also included.

6. 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.

If you are wondering how to start a startup in India with no money? Then you have to rely on your capital, family, friends, bank loans, and moneylenders for the initial funding stage because securing funds is necessary. After you successfully raise funds, you can start your startup.

Initially, you should invest the capital wisely. You can then do more funding rounds again and even approach angel investors, VCs, and banks.

7. Build 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. That is why an initiative startup team is necessary. After all, entrepreneurship requires a good team and management skills.

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.

  • Decide the size and the operation level of your business. If there is a chain of operations, you will need a huge team.
  • Is your startup 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 or accountant for finance, and a good consultant.
  • The position of CEO, CFO, CTO, and CMO must be clarified. And you have to choose co-founders in the company for the proper division of work.

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

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Essential Legal Aspects to Start a Startup

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


Many startups require different licenses that you need to obtain. For example, any food business would require an FSSAI license. You cannot start your own company unless you have a license. Likewise, other businesses will require a license that you must obtain.

Business Registration

To start a business in India, you have to register your startup 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 by protecting your intellectual property.

Establishing the Market

This is the most important step that will help you launch a startup and sustain it in the market. You have to spend a huge amount studying the market and creating a good marketing plan. Here are the steps you can use in marketing.

Target AudienceYou have to identify your target audience according to your product and service. The target audience should be pre-determined before product development.
Market SegmentationYou will need to segregate the market as per your target audience. Whatever market has the best response will be your priority.
Consumer SatisfactionThe 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 PromotionA fair amount of investment must be in advertising and promotion. You can advertise your product from an advertising firm or use other methods like social media advertising.
Market AnalysisAlways check your product performance in the market. If the analysis is positive, follow up the method. And if it is negative, change your strategies.

You have to follow all these aspects to start a startup company in India. Also, these aspects have to be flexible, which you can change at any moment according to business requirements.

How to do Startup in India – Key Takeaways

By now you must have learned how to start a successful startup in India.

Before starting your business, you should keep in mind how your product or service solves an existing problem.

The Indian market is very diverse, and consumers change their preferences very easily, so you have to create a monopoly and maintain it. Also, you must have backup and alternative plans and strategies to stay afloat in the market.

No startup gets success easily. Only your hard work, dedication and self-discipline will make your startup successful in the long run.

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Frequently Asked Questions (FAQ)

How to start a startup in India alone?

If you have any idea about the business and you are confident about your product or services then you can easily start your own startup. Initially, you have to be a multi-tasker. You have to manage marketing, sales, research, and management of funds from a single hand. You can also hire experienced interns who can help you with your project.

Which startup is best to start?

This is the question you have to find the answer to. If you are wondering how to start a startup in India and which startup is best, then do market research. This will help you understand which products and services are in high demand. And which existing service can be made better. After analysing the market and customer demand you can start your business.

Can anyone start a startup in India?

Yes, anyone can start a startup in India. However, it would be best if you have some skills to be successful in the same business idea. This will help you to easily understand the market needs and set objectives. You can also take advice from consultants who can guide you and make your journey easier.

What does a startup founder do?

There are some major responsibilities of a startup founder. If you are thinking of starting a startup then you have to do these things.

1. Raise Funding
2. Making business plan
3. Networking
4. Vision formation
5. Market Leading
6. Bringing Resources
7. Decision-Making
8. Dealing with Investors

However, Founder’s role doesn’t stop there. They have to constantly plan and set goals to make the business effective in the long run.

Who are eligible for startup India program?

Following are the criteria to fulfill as per the Startup India scheme:

1. Startups should not rebuild from an existing business.
2. Your company should be a private limited or registered as a partnership firm.
3. The startup did not complete ten years from the date of registration.
4. The annual turnover should be less than INR 100 Crores.
5. Startups should create jobs and work towards innovation, development.

How can a beginner start a startup?

If you are wondering how to start a startup in India as a beginner. You just start with a great idea. Your business cannot succeed without a powerful idea. After that, you can start working on a business plan and how you will fund your startup. Motivation and dedication are essentially there throughout the process. Also, make sure that you have taken all the legal steps before starting your startup.

How much money is needed for a startup in India?

It is essential to decide how much money your startup will need to bear any unseen losses in the future. How much investment does your startup require whether your company is small with an individual or a group of people? But apart from the fund, you will also have to bear the cost of registration fees for your startup. This fee ranges from INR 2000 to INR 2 Lakh.

Which business has the highest profit margin in India?

Many industries in India have high-profit margins in India. Most small businesses today have high-profit margins. One such industry is the interior designing industry. 

Some other small industries are:

1. Incense Stick Manufacturing
2. Fitness Businesses
3. Food Trucks
4. Bookkeeping
5. Delivery Businesses
6. Virtual Assistant
7. Home Improvement Equipment
8. Travel Agency Business
9. Organic Farm
10. App Development

Here are some useful resources:

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