A startup is a young and a small company which is beginning to start its business. Generally, startups have small sizes and finances and they managed by one or few individuals. Usually, startups come up with new products/services which have not been offered in the past or are been offered in niche markets.
According to Merriam-Webster, start-up means “the act or an instance of setting in operation or motion” or “a fledgling business enterprise.” The American Heritage Dictionary suggests it is “a business or undertaking that has recently begun operation.” Therein lies the rub – to be a startup, you must have set up shop recently.
The worldwide trend of startups has been around for a long time. This trend arrived in late in India but today a lot of start-ups have come up in India. In the race for number of startups, India ranks on the third position after the United States and the United Kingdom
In 2015, there were 4200 startups in India and it is expected to increase to more than 11500 startups by 2020. Generation of start-ups have provided employment to 80,000-85,000 people and this figure is expected to increase to 2,50,000 people in 2020. By the end of 2015, the number of startups increased to 40% and the total worth of startup industry is around USD 5 billion.
How to start your small business?
Before you begin
Before starting your business there are some important things that you should focus on to make your life easy and to put your business on the successful path.
Market research
You should properly research the market to understand your target customers and competitors. Study your competitors and try to understand their tactics.
Develop a plan
It is very important to develop a proper plan. This will make sure that you have a clarified business idea, it will identify your problems and measure your business progress.
Choose a mentor
A mentor will guide you to properly handle your business and will offer you continuous his/her support.
Register your startup
After you have decided your business idea and have conducted market research the next step is registering your startup. Without this, you will not be able to conduct your business.
Choose a company structure
It is essential to choose your company structure. According to U.K. business statistics in the year 2014, 69% people were sole proprietors, 29% were a limited company and 9% were partnerships. There are 3 main types of company structure-
Sole proprietorship
Here you are the incharge of your business. You are entitled to all profits after the tax is paid. You alone will be liable for dealing with losses of the business.
Partnership
Here you and your partner/partners will together handle the business. Profits will be distributed among partners and each partner will pay taxes on their share.
Limited company
Here an organization is established to run the business. The organization itself takes all the responsibilities and your finances are totally separate from the organization’s finances.
Register your startup
After deciding your company structure you have to register your business. You just need to login on this website http://startupindia.gov.in/ and upload a certain document.
Recommendation/Support letter
A recommendation from an incubator established in the post graduate college in India, in a specified format by Department of Industrial Policy and Promotion or a support letter by incubator which is funded by the Indian government as a part of any specified scheme to promote innovation.
Incorporation certificate
You have to upload the certificate of incorporation of your partnership/company.
A brief description of the business- Here you need to completely explain the nature of your services/products.
Prepare your operations
After registering your startup you need to make plans to promote your business and concentrate more on practical ways of starting your business. To begin your operations certain things are needed.
Choose your business name
You need to come up with a solid name which is unique from other businesses and is very easy to remember. The name should also reflect the kind of business that you will do. For example Taj Sweets.
Develop your website
You need to develop your business website where you can display your products and services along with your contact details. The website will be treated as the shop window.
Get important licenses
According to the nature of your business, you need to obtain certain relevant licenses. For example, if you are starting a food business then you will require a food business registration license.
Open a company bank account
It is always better to open your company bank account so that you can easily differentiate your business expenses with your personal expenses.
Choose an office location
You should choose a proper office location to start your business. The chosen location should be convenient to you. For example, sole proprietors generally start their businesses from their home offices but nowadays coworking spaces are becoming popular as it provides various benefits such as flexibility, ease of commute etc.
Hire an accountant
Hiring an accountant will help you out in a lot of ways. From filing your tax returns to giving guidance on business plans, an accountant will make your easier.
Logo
You need to design an excellent logo for your business which is creative in design and easy to remember. For example logo of Apple.
Make your presence on social media
Social media is an amazing marketing tool. You need to make separate accounts on Facebook, Twitter etc so as to promote your goods/services. For example, One Plus is actively involved on facebook and twitter and the company continuously promotes its goods/services on social media.
Buy stationery and tools for your business
It is important to buy necessary stationery for your business such as business cards, letterheads etc. Also, certain tools are needed such as computers, telephones, furniture etc.
Hire staff
Every business is dependent on its employees. You need to hire best employees for your business. You can contact various recruitment agencies which will help you find best employees.
Start your company
Once the above formalities are complete you have a green light to start your business. If you want to make sure that your business remains successful then here are few ways that will help you out.
Promotion
Every business needs proper promotion. You should actively promote your products/services through word of mouth and social media. You can also use communication mix model for effective promotion. For example, One Plus actively promotes its products/services through social media, events etc.
Evaluate your business
Continuous evaluation of business is needed so as to make it successful. You should keep a close eye on various opportunities and threats in the market so as to effectively deal with them. Doing mistakes is ok but must learn from it as soon as possible.
Appreciate your work
You have done a lot of hard work to reach to this point and further more hard work is required in the future but it is important to appreciate your work and enjoy the positive results.
Startup India has motivated a lot of people to start their startups. If you are planning to start your small business the above-mentioned guide will surely help you out.