Starting a small business in India? Here's your complete investment, execution plan

Many people dream of starting a business but struggle with the process. Let's explore how to start a small business in India, how to register it, and answer many other questions.

Key Points to Remember When Starting a Business for the First Time:

1) How to choose the right business idea

2) How to register a business

3) Obtain necessary licenses

4) Understand how to develop it from the initial stage to full scale.

Benefits of Starting a Small Business:

1) Financial Independence:

Controlling your income through your own business allows you to achieve financial freedom.

2) Passion-Based Career:

Turn your favorite activity into a business and earn money from it.

3) Start from Home:

You can start a business from home without a huge initial investment. Lower expenses result in higher profits. You can start a business with low investment.

4) Be Your Own Boss:

All decisions and establishment methods are in your hands. No one needs to give orders. This is the best option for those who want to stand on their own feet.

5) MSME Incentives:

You can get schemes, subsidies, loans, etc., provided by the government for small businesses under MSME.

6) Freedom:

There is an opportunity to introduce new ideas, products, and services in the market. This makes your business stand out.

7) Work-Life Balance

You can design your own working hours. You can maintain a balance between professional and personal life.

8) Autonomy:

With your own business, you don't have to depend on others. You get the opportunity to build your life.

9) Reach a Specific Market:

With a small business, you can target markets and provide valuable services to specific customers.

Important Things to Remember Before Starting a Business:

1) Have a Clear Vision and Mission:

Decide in advance what goals you want to achieve through your business. You should have clarity on how your business should be in the future. You should have an idea of ​​how to achieve that goal. If these two are clear, the business will move forward strongly in the direction of development.

2) Research Target Customers:

Who are the products or services you are selling for? What kind of problems are they suffering from? You must have a complete understanding of these. Analysis of market trends and customer behavior will result in a good response to the products you offer.

3) Focus on Financial Planning and Cash Flow:

Where does the investment required for the business come from? Are you going to use savings? Or will you take a loan? Will anyone else invest? Think about it in advance and prepare a budget. Set aside money for tax. Plan in advance for any money shortages.

4) Create a Business Model

How are you going to make money? What kind of products/services are you going to provide? How are you going to price them? How long will it take to become profitable?
This entire strategy is a business model. Make sure it is clear.

5) Build a Strong Team:

To start a business, make sure you have a strong team. Experienced people should be hired. It helps not only in completing projects but also in solving problems.

6) Assess Potential Risks:

Every business has some risks. Legal issues, financial changes, competition. Identify all these in advance and be prepared for any situation. Only then can you cope if something happens suddenly.

Follow These Tips Before Starting a Business:

Starting a business requires some planning, determination, and efforts in the right direction. These will help you start your business successfully:

1) Have a Clear Business Idea:

Choose a business idea that suits your interests and market needs. Research who the target customers are? Who are the competitors?
Find out in advance whether your idea has demand in the market.

2) Create a Detailed Business Plan:

There should be a clear plan on how your business should run, what are the goals, how to do marketing, how money comes in, and how to operate daily.

3) Choose the Right Business Structure:

Choose the right type of registration according to your needs:

Sole Proprietorship

Partnership

Private Limited Company

This affects your tax, liability, and operations.

4) Know Legal and Tax Requirements:

Register your business with the government. Obtain the necessary licenses (such as GST, FSSAI). Follow all the rules according to the tax law, so that problems can be avoided in the future.

5) Plan Ahead for Funding:

Estimate how much money is needed to run the business. Consider options such as own savings, loans, investors, or crowdfunding.

6)  Increase Digital Presence:

These days, a website and social media profiles are essential to promote a business. Tell about your products or services online, stay in contact with customers.

7) Focus on Marketing and Sales:

Plan clearly how to reach target customers. Use digital marketing and social media.

8) Be Prepared to Face Problems:

Starting a business is not easy. Some problems and mistakes are inevitable. Learn from them and move forward without fear of failure.

9) Be with People Who Have Strong Support:

If you have a mentor, business partner, or trusted employees, the business will grow well. Their advice and cooperation will help you work more confidently.

10) Be Patient:

Success does not come overnight. You have to work hard continuously and focus on your goals. Growing step by step, you have to build your business steadily.

Government Loans:

The government is offering many types of loan schemes to encourage those who want to start small businesses in India. These can be paid through low interest rates and easy EMIs. If you want to start a business, these schemes will be very useful.

1) Pradhan Mantri Mudra Yojana (PMMY):

A loan of up to Rs. 10 lakhs can be taken through this scheme. These are useful for small businesses and self-employed individuals. These are of three types in total.

Shishu: Up to ₹50,000

Kishore: From ₹50,000 to ₹5 lakhs

Tarun: From ₹5 lakhs to ₹10 lakhs

This amount can be used for working capital and purchase of machinery.

2) Stand-Up India Scheme

Under this scheme, every bank branch gets a loan of Rs. 10 lakhs to Rs. 1 crore to at least one woman entrepreneur and one SC/ST entrepreneur. This scheme is useful for new businesses in manufacturing, services, and trading sectors.

3) Pradhan Mantri Employment Generation Program:

This scheme provides financial assistance to new micro businesses.

For service businesses: Up to ₹10 lakhs

For manufacturing units: Up to ₹25 lakhs

Subsidy: 35% for general category and up to 50% for SC/ST/OBC/Minority.

4) Credit Guarantee Fund Scheme:

Under this scheme, a loan of up to Rs. 2 crores can be obtained without surety. The government guarantees that banks can lend without risk.

5) NSIC Loans and Subsidies (National Small Industries Corporation):

NSIC provides financial assistance to small industries for the purchase of raw materials, machinery, and infrastructure. It also gives access to government tenders.

6) Make in India Scheme:

The Make in India scheme provides loans and subsidies to promote businesses in the manufacturing sector. This scheme has been designed with the aim of making India a manufacturing hub.

7) Bank of Baroda MSME Loan Scheme:

Bank of Baroda is providing loans to MSMEs at low interest rates and easy repayment terms. This loan can be used for working capital, business expansion, and purchase of machinery.

8) SIDBI Loans (Small Industries Development Bank of India):

Small businesses can get term loans, working capital, and microfinance through SIDBI. There are also special schemes for certain sectors like agriculture and food processing.

9) Special Schemes of State Governments:

Some states are providing special loan schemes and subsidies for industrial development and employment opportunities in their state. These schemes are mostly available for women and young entrepreneurs.

How to Start a Business in India?

To start a small business in India, you need to follow some important steps. This will help you get legal permits and lay a strong foundation for running the business successfully.

1) Choose a Business Idea:

First, choose a business that you are interested in and that is needed in the market. Your idea should be unique. For this, examine the competitors and industry in the market.

2) Do Market Research:

Find out who your target customers are, what they want, and how the competition is for your business. This will give you clarity on whether the business is viable.

3) Prepare a Business Plan:

Prepare a clear plan in the form of your business goals, marketing plan, money needs, and working methods. This will help you in making decisions.

4) Identify the Target Market:

Who are your customers? What is their age, needs, and behavior? By knowing all this, you can design your products and services to suit them.

5) Raise Investment:

Strategically estimate the need for money and raise investment accordingly. You can look at ways like own savings, loans, investors, or crowdfunding.

6) Develop a Business Strategy:

How are you different from your competitors? How do you attract customers? There should be a clear strategy on such issues.

7) Choose the Right Name for the Business:

Choose a name that is easy to recognize and reflects your business goals. This is very important for brand recognition.

8) Decide on the Business Form:

Sole Proprietorship: A business undertaken by one person

Partnership: Two or more people together

LLP (Limited Liability Partnership): Partnership with limited liability

Private Limited Company: An organization registered as a company

One Person Company (OPC): Useful when one person wants to start a startup

9) Register the Business:

Registration should be done based on your business form:

RoC (Registrar of Companies): For companies

PAN & TAN: For taxes

Shop & Establishment Act: If there is a physical store or office

10) Open a Business Bank Account:

A separate business account is required to manage personal and business expenses separately.

11) Obtain Required Licenses and Permits:

Depending on which sector your business belongs to, you must obtain the necessary ones:

GST Registration

Trade License

Professional Tax License (in some states)

FSSAI License (if there are food products/supplies)

IEC Code (if importing/exporting)

12) Know Tax Information:

Find out how GST, Income Tax, and State Taxes are and file them on time accordingly.

13) Set Up an Accounting System:

Expenses, income, and employee salaries should be managed with the help of experts. Use accounting software if needed.

14) Establish Online Presence:

Create a website and social media accounts and attract customers through digital marketing.

15) Look for Funding Options:

Bank loans

Government grants

Investors, Venture Capital

16) Start the Business:

Start with hiring staff, implementing a marketing plan, and providing good service to customers.

17) Continue Legally:

Annual filings

License renewals

Tax payments must be managed

How to Get Investments?

1) Personal Savings:

If you start a business with your own money, you don't have to depend on anyone. There is no obligation to repay the loan.

2) Friends & Family:

You can take money from your relatives and friends. There should be clarity on whether you are taking it as a loan or taking it back to pay.

3) Bank Loans

Small business loans can be taken from banks. There are also government schemes like Pradhan Mantri Mudra Yojana (PMMY) in India.

4) Crowdfunding

You can put your business idea on websites like Kickstarter, Indiegogo, and raise funds from the public.

5) Angel Investors & Venture Capitalists:

If your business has growth opportunities, you can contact investors who invest money and take investment in the form of shares.

6) Microfinance & P2P Lending:

You can get money from peer-to-peer platforms like Faircent or microfinance institutions that give small loans.

7) Government Schemes & Grants

Money, training, and mentoring can be obtained through schemes like Startup India, Stand-Up India.

8) Bootstrapping

You can use the income from other jobs (freelance, part-time) for business.

9) Trade Credit

Negotiate with suppliers and ask for the opportunity to pay for goods late. This allows you to start with less investment.

How to Start a Business Without Money?

1) Rely on Your Skills:

Freelance work (content writing, graphic design, translation)

Online tuitions

Handicraft products

Consultancy services

These do not require much investment to start.

2) Use Free Tools:

For website: Wix, WordPress

For logo design: Canva

For promotion: Use Facebook, Instagram, WhatsApp, Telegram etc.

3) Work from Home:

This will save on rent and transportation costs.

4) Share Services with Others:

Exchange your services with others. For example: if you make a website for someone, they can help you with marketing.

5) Crowdfunding & Small Loans:

Share your business idea with the public and collect a small amount of money (through sites like Kickstarter, Milaap). Or get a micro loan through government schemes like Pradhan Mantri Mudra Yojana.

6) Start Small – Reinvest After Earning a Little Income:

Use every rupee carefully. Create a portfolio. Slowly grow the business with that money.

Note: Along with all these, if you have an idea to start any business, it is better to go directly to those who have achieved success in that field and ask for details. Through this, profits and losses can be estimated more accurately.