Read on to find out how to start a small business in India and ideas for different small businesses that you can start in India with little investment.
Every big step starts with an inch and keeping that in mind we must realize that India’s multi-crore companies such as eCraftIndia.com, Rolls Mania, Chamundi Agarbatthi, and many more started with little or no investment.
Starting your own business comes with great planning, vision, and purpose. A business thrives only when it caters to the market condition, demography, and demand.
Read on to find out how to start a small business in India and ideas for different small businesses that you can start in India with little investment.
STEPS TO BE TAKEN WHILE STARTING A SMALL BUSINESS IN INDIA:
1) Selecting a business plan
Choosing a business idea can be very difficult and frustrating but one should never stop. Start the process by concentrating on your facilities, expertise, and passion. Make a note of what your long-term visions are, what you want out of this business, your goals, and how to plan to achieve them by designing a business plan.
Various small business sectors such as defence, aerospace, hospitality, tourism, manufacturing, and agriculture are available under various government schemes.
2) Sharpening skills through training
Without sharpening your weapons, standing on a battlefield would not increase your chance of winning.
Starting a business calls for competition and possession of more skills and expertise with increased perspective makes you a better entrepreneur in terms of understanding, communication, and negotiation.
Always try to increase your ability and understanding by opting for various vocational and training courses. Learning provides you with multiple opportunities and exposure to fresh, unconventional, and original perspectives. Furthermore, these educational certificates are required by banks, financers, and licensing authorities for legitimizing your business.
3) The Project Report
A project report is a record that holds personal details such as name, age, and qualifications of the owner/partner. Apart from that, it mainly provides the overall picture of the proposed business. It contains information on economic, technological, commercial, managerial, and production perspectives. This report boosts the possibility of getting finance from prospective partners.
4) Source of Funds
Family and friends make a viable option for financial funds in India but the establishment of various economic institutions has made the money lending process easier for young entrepreneurs. Here’s a list of alternative business finance a fledging businessman can explore:
- Banks
- Co-operative Credit Societies
- Community development funds
- Venture capitalists
- Angel capitalists
- P2P
- Crowdfunding
- Government Schemes
5) Hunt for a strategic location
Selecting the right location becomes very crucial as determines the cost of inputs, customer base, demand, and government incentives for any businessman. In terms of state, here’s a list of the top 5 favourable options a young businessman should explore:
- Bengaluru: With Wipro and Infosys, it goes without saying that Bengaluru provides everything a start-up business will ever need such as logistics and human resources without additional efforts.
- Hyderabad: It is almost at par with Bengaluru because of the setting up of institutions like ISB and Incubation centres. As India’s first hi-tech city, it has full government support for new initiatives, infrastructures, growth, and motivations.
- Ahmedabad: It is suitable for small business that deals with clothing and textile as it is the hub of India’s textile industry.
- Bhubaneswar: As the growing trading and commercial hub of India, Bhubaneshwar is a prime location for setting up of small IT companies. It holds many incentives and benefits for young entrepreneurs since it is the home for start-ups like Mindtree.
- Coimbatore: The establishment of two Special Economic Zones (SEZs) makes Coimbatore a beneficial location for setting up a start-up business. Moreover, with the launch of Indus Entrepreneurs for women, it is a major boost and support for aspiring women entrepreneurs.
6) Registration and legalization
In India, any work involving legalization can be exhausting and time-consuming but because of the introduction of new reforms in the Ministry of Corporate Affairs, registration of any new business is completed within a day.
7) Tax registration
A Permanent Account Number (PAN), as well as a Taxpayers Identification Number (TIN) is required. The Tax Department issues both of these, and it can be issued by submitting the forms and attaching the necessary information and documents and paying a small fee. It can be done both online and offline.
8) Launch a website
Apart from the physical set-up of the market, an online platform is equally crucial for expanding the client base and increasing the demand for the product. Some may prefer online mode because it is convenient and less time-consuming. It allows direct ordering with multiple payment options.
9) Grab a company position:
Mark your business by giving it a catchy name and tag-line, and since the logo is the most crucial part of branding hire a professional to design a snappy logo for you. Moreover, print everything or your business with the logo, brand, company name and contact details on it.
10) Financial matters with banks:
Now that most of the documentations are completed, you can proceed with opening a current account for your business. Make sure that the cheque does not bounce, bounced cheque indicates financial instability.
11) Getting started with low cost of production:
To earn more profits most of the entrepreneurs involve their family members, siblings and friends. The lesser the production cost in the first few years, the better. In case this doesn’t work out, ensure that you employ people who are looking for job at the beginner’s level.
12) Publicizing and advertising:
Publicizing and advertising are the essential to inform people about your business. Proper media advertising can be very expensive for a small business start-up; therefore, it is suggested that you opt for social media such as Facebook, Twitter, Instagram and many more to make people aware about your company’s presence and establishment. You can also opt for traditional methods such as posters and newspaper announcements.
TOP 5 IDEAS FOR SETTING UP SMALL BUSINESSES IN INDIA WITH LITTLE INVESTMENT
Now that you have an idea about how you can set up a small business in India, here’s a list of top 5 businesses with little investments can be taken into consideration:
- Blogging: It would rather be an understatement if I say that blogging is the number one option to earn money with little or no investments. Sticking to writing high quality articles daily and getting paid by AdSense, promotions and collaborations can fetch you up to Rs 756k per month.
- Bakery: Is baking your specialty? Here’s how you can put your talent to use. Bakery business has the potential to attract large customers since people are always looking for better taste and presentation when it comes to cakes.
- Travel Agency: Travel agency is a thriving business idea in India. If you are capable of planning the perfect vacation and can provide services and accommodation at reasonable rates, you are the absolute fit!
- Courier Services: Courier services include picking up and dropping off packages, in times like this, courier services is the most thriving business. People across the country are availing such services to deliver baked goods and thrift shopping delivery. If you have a vehicle and are willing to invest in a small-scale business, this should be it.
- Airbnb: If you have an extra room in your building which is not in use, put it to use and earn money by giving it on rent. All you have to do is rent your space on Airbnb, negotiate with the potential clients and get paid!
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