INITIAL STAGES OF BUILDING A STARTUP IN 3 STEPS
Indians these days are obsessed with startups. Many of them already have an idea in mind or are trying to come up with something that matches their interest while addressing the market gap.
There is a lot of competition too. So it goes without saying that you need to be outstanding at what you do to succeed.
So, if you are one of those startup people, this guide will tell you how to start a startup in India in a step-by-step manner.
1. Use a feasibility check
You have an idea, a product that can fill a gap in the market.
Now, that might sound interesting, but-
- Is it feasible to implement it?
- Is it solving the problems of your target audience?
- What kind of revenue do you expect from it in the beginning?
To move forward, you and your team should clarify these questions and develop a plan. To assess the feasibility of your idea, you can take advantage of market surveys, expert advice, and previous market research on a similar idea.
2. Choose the right business structure
Choosing the right business structure depends on how you want to scale your business. Depending on the type of business, it can be a sole proprietorship, partnership, or private limited company.
An individual can run a proprietorship firm without any partners. But you need good partners if you are going for a private limited company or a partnership.
However, setting up a private limited company is a little more complicated. If you wish, you can take advice from a Business Consultant or a Chartered Accountant.
3. Look for funds
Funds are essentially what startup companies need to sustain themselves. The search for funding can take many forms. Here are a few to consider-
Bank loans are a common form of funding for many businesses. Since the introduction of various startup-friendly schemes, borrowing money for an innovative startup has been relatively easy. Bank loans can provide initial funding, and once your business is up and running, you can look at other options for intermediate financing.
Another option that you can pick is angel investors. Angel investors are people willing to invest in your startup in exchange for equity in the company. You can also get valuable business advice from these angel investors since many of them have industry experience. Though, you will often have to prove to these investors that your startup has a unique and innovative business model worth investing in.
A little different than angel investors are venture capitalists. Their investment focuses on high-potential startups, and they receive equity as part of the investment. The venture capitalist also makes money when the business becomes public or another company acquires it.
To move forward with your operations, you will need to be patient and thoroughly understand all these processes.
And to succeed, you need to have a startup mindset, and you will need to put in a lot of work and time.
Start working on your next big idea!
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