We have covered some essential elements that you need before starting a business in our previous lessons, today we will learn the things you require to start a business in India. Let's see briefly about different processes when you start a business.
Selection of Product
The product is the first main thing in business when you start a business, so you have to study the product that you're selling, only then you will be able to work out ideas, how to move forward with your business, and get an understanding of what you are doing. What type of business you are going to do and what societal problem you are going to solve. This part is called the selection of the product.
Let's move on to the second thing is choosing the size of your business. The production rate defines the size of your business. For example, Let's assume you are making oil, and the size of your business depends on how much liters you produce in a day. It's crucial to keep track of your business size because that's how you will know whether your business grows or not grows. So when you start a business, you have to decide on what scale to build your company.
Select your audience
You have to find who your customers are and what do they need. By doing that, you can expect better outcomes for your business. You have to do some analysis and some research to find the right customers, and yes, this is a crucial thing for your business.
By this time, you have figured out what your product is, who the audience is. Before going into the market, you should conduct a survey or something more like a test-run before you start. Give out some free samples to your audience, a study with questions like how it is your product, how it differs from other products, do they like it, are there faults, or any improvements needed. If your product is something new, you must conduct market analysis before you go through other processes.
Now, you have to find out what platform you are going to use for your business. First, you have to decide between some platforms like retail, wholesale, manufacturing, or picking a retail or wholesale to sell your manufactured product, figure to whether it is business to consumer or business to business. You have to clear about choosing your platform so that your business will have a proper structure. Selecting the platform can be whether online nor offline.
Once you have everything ready, start spending on marketing. Before spending your money on newspaper ads, tv ads, or online ads make a good ad. It would be best if you made an aesthetically pleasing ad, spend some right amount of money on creating a better advertisement. Don't forget about the existing customer, send promotional SMS, email about your latest offers and keep them in the loop. You don't have to publish ads in every marketing platform, spend some time to figure out which marketing platform will reach your audience.
Create online accounts and make your business presence on social media. Which is the best possible way to interact will your customers. And be active on social media, respond to your customers as soon as they message you. Register your business on the Google Business website; this will help your customers to find your business quickly. Listen to customers' problems and respond to their ratings and reviews. Always be respectful when you answer to comments. Show customers how to use the products by making YouTube videos, write about business progress or share your knowledge by writing a blog.
The Legal Part
Without having figured out anything above, you should not register legally in a hurry because some of us might jump to conclusions before we understand entirely. Get legal advice before you plan, and after you have a plan, if required, make some changes and clarify everything before start signing documents.
Starting a Business in India
When you register, you'll have to create a company name, if possible, think of titles that relate to your business. For Example, A internet company that provides fibernet connections to homes names their business as "Skylink Fibernet Private Limited."
In India, there will be documents such as Certification of Registration, MoA, AoA, GST, etc. GST registration is the most important one, in whatever services or purchases you make for your business, you will be required to submit you GSTIN number. These registrations do not cost much, by spending a small amount, you will be able to register and avail benefits. Benefits such as You can claim tax credits for the purchases you make for your business or get priority services.
You will have to register for a trademark for your brand. It is your product's identity that could be engraved or printed on and used only by you. It is the authorization provided by the government for your product identity. You might also want to apply for copyright protection to protect your business.
Most businesses in India classifies into MSMEs. If your business is manufacturing, you might need the MSME registration certificate. Governments provide a lot of benefits under the MSME scheme, such as getting low-interest loans; there is also a specialized bank for MSME loans. For example, if your business uses high power consumption and results in an expensive electric bill, you can submit the MSME registration to receive government subsidies on the electric bill. It just costs around Rs.2500 to get an MSME certificate; this will give a lot of cost-cutting benefits from the government.
IEC (Import Export Code)
The IEC is not necessary for all businesses, but India has many exporters. So if you want to import or export for your business, you are required to get the IEC certificate.
There are many types of business registrations such as proprietary, private limited, Check out links to know more types of business registrations in India.
- Business registration in India: https://efilingportal.in/Proprietorsh...
- Types of GST: https://www.bankbazaar.com/tax/gst-re...
So we have learned the different processes in creating a business and some of the legal stuff in Indian business registration. We hope this was helpful. Thank you for reading, please share your thoughts in comments, Stay tuned for more business lessons.