In India, starting a small business becomes very easy with the assistance of the government of India. There are multiple programs as well as schemes of the government that help and promote small businesses. One such scheme is the Make in India scheme of the government. Small businesses are an intrinsic part of the Indian economy because they help in its growth and development. They are helping the Indian economy by producing various opportunities. The current write-up will discuss the 17 steps that can help in starting a small business. If you are a new entrepreneur or one who is thinking about starting your own business, then you must read this blog till the end. This will give you a complete idea about the do’s and don’ts of a new entrepreneur.
What are Small Businesses?
Businesses that are started with less investment or self-funded running on a small level with a single or fewer people are known as small businesses. Such kinds of businesses are having less number of employees. There are many types of small businesses in India, out of which startups and MSMEs are the most prevalent ones. These are not only popular among the common masses but also in the government. These two kinds of small businesses have been promoted by the government as well, and it’s very easy starting a small business like them. This is because their contribution towards the Indian economy is noticeable. Two types of small businesses are given below:
- Startups under the Startup India Scheme of the government. To get the benefits of the government, such businesses need to take Startup India registration.
- Micro, small and medium enterprises are the next ones. With respect to the growth of the Indian economy, these are on the top. As per the law, to be recognised as MSMEs and get the benefit of government schemes, it is necessary or mandatory for them to get MSME registration, which is commonly known as Udyam registration among the masses.
What are the 17 steps to Start a Small Business in India?
Starting a small business is not that difficult if one gets the proper guidance to start such a business in India. Given below are the 17 steps that can help you establish your business lawfully in India:
Research About the Business
The very first step to starting a small business is to have proper research regarding the business because without having the proper research regarding the business, there are high chances of failure of a business. Research about both the market as well as consumers. Research can be done in two ways which include research on the primary level and research on the secondary level. Both are equally important to start a small business.
Proper Business Plan
A business plan is one of the very important documents that one must possess or prepare before starting or implementing any idea of business. It will not only get investors but also help you out while fundraising for your business. Therefore, one must have a proper business plan that is well-defined and well-drafted.
Proper Business Structure
If you have everything but not a proper business structure, there are chances that your business may not last for a long period of time. Not having the proper structure of business will ultimately result in mismanagement or micromanagement inside the company, which will cause loss to your business either directly or indirectly. And that loss may result in failure of your business. Hence one must maintain a proper structure for his or her business.
Choose a Unique Name
Attracting customers towards the business is very necessary for a small business. In doing so, the name of the entity helps a lot. People get attracted by the name of the entity hence, one must choose the name of the business very wisely. Also, one must take care that the name must be unique and not similar to the already existing entity because, in that case, it will be really difficult to protect the name of your entity.
Choose a Business Location
The next very basic thing that has great importance in the success and failure of the business is the location of the business. Wherever you are registering your business or starting a small business, you must put some effort into choosing that place. One thing that can help you out while choosing a proper business place your business is proper research about the market.
Choose a Type of Entity
One of the most crucial things while starting a small business is choosing a suitable entity. One can choose the entity that can be best for his or her business among the various available entities. Some of the key types of entities in India are:
- Private Limited Company
- Public Limited Company
- One Person Company
- Limited Liability Partnership Firm
- Partnership Firm
- Proprietorship Firm
Registration of Business
There is no such restriction on the type of entity, but it is really important to register it. Business registration can be done through many laws like the Company Act of 2013, the LLP Act of 2008, Partnership Act etc. There are two main bodies before which one can register the entity before starting a small business, and they are the registrar of companies, which is also known as ROC and the general registrar. It depends on the type of entity where one should go for the registration.
Open an Account for your Entity
Among the various important formalities, opening an account in the name of your entity is equally important. As a business owner, you must be aware of this formality regarding the business account of your entity. This needs to be done just after getting the incorporation certificate, and after that, all the transactions are supposed to be done through this business account with respect to the business of the entity.
Maintain Proper Documents
Documentation is a very crucial part of any kind of business, hence if you are starting a small business in India, you must be conscious about the proper documentation. There are certain kinds of documentation that must be there with the business owner. The list of some such key documents is given below:
- Identity proof of the key person of the entity
- Address proof of the key individuals of the company
- E-mail as well as contact details of the key person
- Business address proof of the entity
- Documents of the incorporation of the entity
- Shop and establishment certificate of your business is also necessary
Website of the business
With the help of a professional, make a website regarding your business that will show everything regarding your business to the customers. Nowadays, digital presence is very important because it not only dignifies your business but also gives the customer the presumption that this is a good business and he or she can opt for the goods and services of the respective business. Hence, make sure that your business is active digitally.
Obtain Necessary Permissions
If you are starting a small business, it is advisable to get permission to run the business from the competent authorities. These permissions have been given in the form of various legal registrations and licences. Some of the examples of permissions given by the government in the form of registrations and licences are given below:
- PSARA License to do the business of private security in India
- FSSAI License is mandatory to do business related to food in India
- A Drug License is necessary to do any kind of business related to sell or purchase of drugs
- Insurance Web Aggregator License to do the business of IWA in India
Obtain Beneficial Registrations
There are certain licences and registrations that are not mandatory to get for the entity, but as an expert, it is suggested to get them if they are necessary or mandatory to get the various benefits or advantages of the government. Some of such registrations are mentioned below:
- MSME Registration
- Startup India Registration
- Trademark Registration
- Business Registration
Hiring for the Business
A business is not successful only because of a good business plan, structure of business, registrations, licence, business registration, etc. One of the key factors that makes the business successful is its employees. One must hire people very wisely for its entity because, ultimately, they are going to make your business successful. Without good employees, a company cannot survive in the long term. Honest, loyal and wise employees make a small business successful in the market among the competitors.
Advertisement of Business
Marketing with the help of advertisement in any way is a crucial factor of any kind of business. If you see the competitors, you come to know that there are a lot of people who are doing similar kinds of business in the industry, but to make your business different from them, it is necessary to advertise your business wisely so that it can attract more and more customers. And that will help you to gain profit.
Collaborations
If you are starting a small business, think about the collaboration for its promotion. The new era has begun with many new things which play a very important role in the success of any kind of business. Collaboration is one of them. We are living in the era of social media platforms like Instagram, where many people have millions of followers. By giving them little money or with the help of barter, you can promote your goods and services.
Social Media Presence
In the current time, social media platforms are the best to promote your business. Because the young generation is using social media platforms a lot. Therefore, it is suggested to all businesses to make sure that they are available on all social media platforms. Some of such social media platforms are:
- Snapchat
- Youtube
- Thread
Networking of Your Business
In simple language, networking means connections. The more the connection, the more the business. Hence, try to build as many connections as you can. One can make connections in various ways:
- Attending seminars
- Through friends
- Through collaborations
- Through social media presence
- Attending business conferences
Conclusion
Starting a small business in India is a journey that involves careful planning and adherence to legal procedures. These 17 steps outlined above provide a comprehensive guide to aspiring entrepreneurs. From conducting thorough research and crafting a solid business plan to obtaining the necessary licences and registrations, each step plays a crucial role in ensuring the success and legitimacy of the venture. In today’s digital age, a strong online presence and strategic marketing are essential, as is the importance of building a reliable team and fostering valuable connections. By following these steps diligently, entrepreneurs can pave the way for their small businesses to thrive and contribute positively to India’s economy.
