9 Things Needed to Start a Business in 2024

Entrepreneurship and startups are increasing in India. The Government of India also provides many benefits to encourage and promote startups. However, establishing your own business requires a lot of work. Starting a business involves having a business idea, getting the legal requirements and marketing it. Below are the things needed to start a new business in India.

Have a Business Idea

The first step in starting a business is deciding what kind of business you want to establish. You need to have a unique business idea. Choose a business you are passionate about and interested in. However, research the business idea and find out the market and competitors. 

Determine what type of people might be interested in your business product or services. They will be your target audience to whom your business will cater. In India, there are many opportunities available for entrepreneurs in hospitality, manufacturing industries, tourism and agriculture under the ‘Make in India’ initiative.

Create Business Plan 

Next, create a business plan including key business milestones, financials and timelines. It acts as a blueprint of your business. The business plan should describe your company’s values and mission statement that guides you during difficult projects or times in your business. Some of the essential components that a business plan contains are as follows:

• Company description
• Executive summary
• Services and products available
• Market analysis
• Implementation process and business strategy
• Team management
• Financial projections and plans

Source of Funds

Every business requires funding. Sometimes the entrepreneurs start the business from their savings or by collecting funds from their relatives or family. Usually, small businesses are self-funded. However, you can also obtain funds from various sources mentioned below to establish and run your business:

• Banks offer loans (working capital and term loan) to businesses. Many banks have introduced various loan schemes for businesses.
• Most cooperative societies offer loans for small businesses when the entrepreneur purchases their shares.
• Businesses can raise capital through crowdfunding. Crowdfunding means attracting investment from relatives, friends, community, neighbours or the general public in exchange for the company stock.
• Businesses can approach venture capitalists and angel investors to obtain funds. They offer great funding opportunities for startups and small businesses.

Business Name 

You need to decide the name of your company or firm. In India, the company or firm name should not be similar to an already existing company or firm name. When the company name is similar to an existing company name or trademark, the Registrar of Companies will reject your company registration application. Thus, it is essential to select a name for your business which is legally acceptable.

You need to conduct a name search before deciding on the name. The name search will help you know if a company exists with a similar name that you are proposing to keep for your business. If a company already exists with the same name, you need to think of another name for your company. Think of names that are not difficult, long or hard to remember. It needs to be unique so your customers can remember and refer to others. A unique name not similar to other company names is also easy to register.

Business Office

An office address of your company or firm is required for registering your business and official business communications. You can start a business from your house or on rented premises. However, if your business is online, you can conduct the business from home; thus, your home will be the business office address.

You need to consider several factors while selecting a place to buy or rent for your office. The business office should be in an approachable area near the main roads as it will be easy for your customers to travel and locate it. However, if you start an online business, creating an e-commerce store is ideal as they have multiple payment choices and allow direct ordering.

Business Registration

After deciding on the business name and office location, you need to register your business for it to be legally recognised. You can choose any one of the following business structures for establishing your business:

• Sole proprietorship firm
• Partnership firm
• Limited Liability Partnership (LLP)
• One Person Company (OPC)
• Private limited company
• Public limited company

Sole proprietorship and partnership firms have unlimited liability and do not have a separate legal personality from their owners or partners. However, they have fewer compliances, and the registration cost is low compared to other types of business structures.

LLP, OPC, and private and public company members have limited liability and are recognised as separate legal entities. It is easy to raise funds as investors prefer to invest in companies or LLP. However, they need to adhere to many compliances.

Additionally, businesses also have to obtain the shop and establishment act registration, municipality or civic body permissions, electricity and water connections and other specific licenses applicable depending on the nature of business, such as GST registration, FSSAI license, trade license, etc.

Have a Website

Technology plays a significant role in the growth of a business. Listing the products or services of a business on the website helps the customers know your business better and avail of your services or buy your products. Many people prefer online shopping and services; thus, having a business website helps acquire more customers. 

A professional and active website and email address will allow customers to contact you quickly. When the business is entirely online, it needs to have an active business website since the website is the primary place where the customers can contact you. The website needs to have your contact information, a brief about your company, a list of products or services, prices and other important details.

Marketing Strategies

After registering your business, promotion plays a vital role in acquiring customers. You need to create marketing strategies to promote your business products and services. Promoting your business online is the fastest way to reach potential customers. Apart from having a business website, opening business accounts on social media pages like Facebook, Instagram and Youtube help to reach a large audience and grow your business.

You can launch videos of your business products and services, their salient features, upload relevant pictures, and other information on your business social media pages. You may also use traditional methods to promote your business, such as advertising on local radio, newspapers, distributing pamphlets, etc.

Open Bank Account

It is essential to have a bank account in the name of your business. All business transactions must be carried out through the business bank account since it ensures you do not mix your personal and business transactions. However, before choosing a bank to open an account, you need to consider certain details, such as bank overdraft facility, free cheque limit, loan facility, letter of credit facility, etc.