To become a corporate giant, you have to start small. That’s the edict you learn after reading the history of the most well-known companies in the world. Begin with a concept, develop a plan, gather the funds and get registered. Those are the necessary steps for launching a business. Once the venture is off the ground, dedication and incomparable service that focuses on quality will do the rest (and, of course, marketing).
With these basics in mind, we explain in detail the steps required to initiate a small or medium-sized business in India.
· Find A Profitable Idea
For MSMEs, India has opened the doors of opportunity. Under the Make in India initiative and Udyog Aadhaar, a business in almost any niche is possible. From tourism to hospitality, from defence to manufacture, from aerospace to agriculture, the possibilities are endless. All you need is an idea that will be profitable in the long run.
Currently, the following can start a small business in the country:
- Indian citizen
- Non-Resident Indian
- Overseas Citizen India/ Person of Indian Origin
- Foreign nationals in partnership with a local
Create A Project Report
The first concrete step to a business is doing feasibility studies to find out how practical the business idea is and based on it, a project report is created. The survey and report can be done by the businessperson or with the aid of experts. Access to funds and the nature of the business define whether experts will be needed or not.
The project report includes:
- The details of the business owner and any partner such as name, age and qualification.
- Experience certificates of owners and partners to help get funds for the business.
- The revenue model of the business. This includes the cost prices, taxes, delivery charges, sales price and all other expenses. It also comprises the predicted revenue generation for next year or two.
- Accumulate The Funds
Without financial backing, even the best business idea is useless. Therefore, find a source of funds. Earlier most small companies were self-financed. Today, the government offers many schemes, plans and programs to MSME to kickstart their company. In case you choose investment from foreign nationals or companies, do keep the rules created by the Foreign Exchange and Monetary Act of India. These regulations are set by RBI and change from time to time.
· Register The Company
Legalising and getting a licence under the Central or State government is necessary for a small business in India.
At one point in time, registering a business in India was a daunting task because the process was lengthy and perplexing. Thankfully, under the Udyog registration and the Ministry of Corporate Affairs, one can get a company registered in just 24 hours. Most of the paperwork is done online and doesn’t take much effort.
· Register For GST Return
This is a crucial step for any small business. From the Income Tax department, get the following for your business:
- Permanent Account Number (PAN)
- Taxpayers Identification Number (TIN)
The two are mandatory when you file the GST Return for your business. To get them, submit an application along with the required documents to any PAN or TIN service centre. After you pay a nominal fee, the numbers will be allotted within a month.
· Market The Product or Service
The final step to starting a business in India is marketing and publicising it. The competition is fierce in the market. If you don’t get the word about your product or service out there, you will get lost in the sea. Besides traditional methods of promotion such as radio ads, tv ads, newspaper prints and hoardings need to be used, and utilise social media platforms and websites to increase awareness. The current customer is entirely online, any business that forgoes promotion on the internet does so at its peril.
These were the six essential steps to planting the seed of a small business in India. In the past four years, the process has been simplified to a great extent. If you have an incredible idea and are ready to do the hard work, anyone can become profitably self-employed in the country. Use the steps as a blueprint and then build upon it.
