You are certainly on the right track if you are planning to start your business. If you are passionate and dedicated, sooner or later you will be able to start and then run your business.
It’s always great to ditch your 9-5 job for something you can create.
Why this is the right time to start a business?
- India ranks no 3 for number of start-ups in the world
- Government has eased regulations of starting a business in India
- India has multiple sources for raising capital, considering enormous potential in our country
- Over 5 million students are graduating from B-schools every year.
- Indian society has evolved as they we are no more attached to taboos, even tea making business is not considered small today.
Identify objective of your business and document guidelines and strategies. It should consist of precise details of various elements which are to be taken into consideration before starting a new business.
This will help you attract investors for your business. A good business plan must have following components.
Mission Statement: In short, write about your company’s objective and simple plan. This needs to be very simple to understand.
Vision Statement: This should reflect your vision about your business which includes strategy to accomplish your objective.
Investment: Try to plan yourself or take help from external agencies to document this part. This will mention about the capital you would need to run your business and how will you garner money for it.
Return on Investment: You must have heard of this term, which is also called RoI. This will be the key element for your business plan and investors and lenders would keen on this part.
Distribution Plan: This is part of your strategy. It would be really great if you could write a brief about it before hands.
Future Projections: As an owner, it is imperative for you to chart the course of your business over a time span. You need to have a projections and short term objectives in sync with your strategy.
Fund your business
The foremost requirement for any business is Capital. The million dollar question here is where on earth could you find money to fund your business?
Most entrepreneurs begin by using their savings or borrow money from their relatives and friends. While, a few avail bank loans, wherever it’s possible.
Let’s discuss what are other sources available for funding?
Venture Capital: There are several Indian and foreign ‘angel investors’ or Venture Capitalists. On the promise of great returns, they will invest in your business.
Crowd Funding: This is one of the very common ways to raise fresh capital for your business. You simply need to join any one of the Crowd Funding platform and propose your business idea. Successful ideas get money from the platform which will be collected money from members on your behalf to set up a business.
MUDRA Bank: This is government’s facility offering short, medium and long-term loans to new and existing businesses under a scheme called Micro Units Development and Refinance Agency (MUDRA) Bank. It is a scheme under which participating banks and Non-Banking Finance Companies (NBFCs) lend you money on soft terms.
Cooperative Credit Societies: Cooperative societies are very common these days, they lend small amount ranging from Rs.50,000 to Rs. 100,000.
Other Requirements for Starting a Business
There are other requirements which are to be taken into consideration to start your own business. However, there are many agencies, who can assist with all the paper work, regulatory approval but you may need to know yourself to begin with.
1. Fire Safety Permit
2. Labor Permit
3. Accident Insurance
4. Employees State Insurance Scheme
5. Provident Fund