Did you know that there are over 92,683 companies in India that are recognized as startups by the Indian Government under the Startup India initiative started in 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT)? In 2022 alone, the initiative recognized 26,542 companies as startups. The rapid ascent of startups in India over the past few years is mind-blowing. Let’s look at how to start a startup in India.
In this article, we will provide you with actionable tips and strategies on how to start a startup in India and help you embark on your entrepreneurial journey. This article will cover the following topics:
- What are the key steps involved in starting a startup in India?
- What are the industries with high growth potential for startups in India?
- How can an entrepreneur identify a viable startup idea in the Indian market?
- What funding options are available for startups in India?
- Are there any legal and regulatory considerations for starting a startup in India?
How to Start a Startup in India?
1. Do Your Research
The first step of how to start a startup in India is to conduct thorough research to determine the scalability of your business idea. Perform market research and surveys, seek expert advice, and gather relevant data to assess the feasibility of your concept. Get in touch with potential customers from your target market and ask them if they would be willing to pay for the service or product you offer. Understanding your business’s potential in the long run will help you make informed decisions and set realistic goals.
2. Make a Business Plan
Creating a comprehensive business plan is highly essential when starting a startup. It provides a roadmap for starting a company in India and helps you secure funding. A business plan should include the following key elements:
- Company Overview
- Market opportunity, size, and scalability
- Business Model
- Operations plan
- Details of product and service
- Management and organization
- Marketing Plan
- Competition analysis
- Financial plan
- Future goals and projections
3. Select the Right Business Structure
Choose the business structure that fits your startup’s needs best. Consider factors such as the type of business, the investment required, the level of control you desire, and its growth potential. Each business structure comes with its own set of benefits and legal implications. It’s essential to carefully assess which aligns best with your startup’s goals and future aspirations.
4. Look for Funding
Your choice of funding should depend on your business’s specific needs and goals. Here are some funding options you should know about:
- Venture capital: Venture capital investment involves professional investors providing funding to startups with high growth potential, despite being considered high-risk ventures
- Bootstrapping: Bootstrapping is a self-funding approach where entrepreneurs finance the startup using personal savings, side jobs, customer revenue, or from friends and family
- Angel investors: Angel investors are typically high-net-worth individuals interested in making investments in startups in the hope of good return on investment
- Crowdfunding: Crowdfunding is a method of raising funds by appealing to a large number of people, usually through online platforms
5. Register Your Startup
Get your startup registered to ensure the legality and protection of your business. Register your startup with the Indian government’s Startup India Program. This will also help you gain various benefits and incentives the program offers. Furthermore, enlist your business with DPIIT to safeguard your intellectual property from potential infringement.
6. Create a Strong Digital Presence
Establish a strong digital presence for your startup based on the nature of your business. This can include websites and social media platforms. A strong digital presence is essential to reach a wider audience, build brand credibility, and drive growth for your startup.
7. Get an Office Space
A well-suited office environment can play a significant role in driving the success and growth of your business. Furthermore, office space will provide your employees with an efficient workspace and help make a good impression on potential clients.
What are the Industries With High Growth Potential for Startups in India?
Now that you know how to start a startup company in India, let’s explore four industries that are currently experiencing significant growth in the country:
In recent years, many businesses have transitioned to the online space, leading to substantial growth in the e-commerce sector in India. E-commerce presents lucrative opportunities for various startups to tap into this expanding market.
2. Artificial Intelligence (AI)
AI is currently experiencing a boom, and its potential in the future is even more promising. In 2022, India’s AI market size was estimated at ₹5,526 crores. Between 2023 and 2029, it is projected to grow at a Compound Annual Growth Rate (CAGR) of 32.26%, reaching ₹32,901 crores by 2029. Furthermore, AI-driven startups can cater to various sectors, opening a wide range of opportunities for innovative startups.
3. Healthcare Tech
The healthcare market in India has witnessed significant growth in recent years. In 2022, it reached a valuation of ₹72,365 crores and is projected to continue expanding at an impressive CAGR of 19.29% from 2023 to 2030. This remarkable growth presents an excellent advantage for startups aiming to thrive in the healthcare tech sector.
India is the second-largest market for e-learning globally, second only to the U.S. With a market size of ₹49,346 crores, it is projected to witness significant growth and reach a size of ₹82,244 crores by 2025. Consequently, this exponential growth in the EdTech sector presents an incredible opportunity for startups to capitalize on the growing demand for online educational platforms, digital learning solutions, and personalized learning tools.
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How to Start a Startup in India With a Viable Idea?
Here are 10 steps on how to start up a startup in India that is viable and successful:
- First, identify pain points or challenges individuals or businesses face in the Indian market.
- Conduct thorough market research to understand your idea’s demand, competition, and potential target audience.
- Test your business idea by gathering feedback from a small target audience by conducting surveys.
- Identify the unique selling points that set your startup idea apart from existing solutions.
- Evaluate the financial viability of your startup idea. Also, estimate the initial investment required, potential revenue streams, and projected profitability.
- Ensure that your startup idea aligns with current market trends and demands.
- If possible, pursue a startup idea that aligns with your passion and expertise.
- Ensure your startup complies with all relevant laws and regulations.
- Stay updated with the latest industry and technology trends to identify emerging opportunities.
- Seek feedback from experienced mentors, industry experts, or potential investors to refine your idea further.
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What Funding Options are Available for Startups in India?
. You can explore various funding options for startups in India, including:
- Angel investors
- Venture capital funding
- Seed funding
- Bank Loans
- Family and Friends
Additionally, Indian entrepreneurs can seek government funding under the Startup India initiative, which offers funding, tax benefits, and other incentives to qualifying startups.
Are There Any Legal and Regulatory Considerations for Starting a Startup in India?
Several legal and regulatory considerations must be explored when navigating how to start a startup in India. These include choosing the right business structure, registering with relevant government authorities, obtaining necessary licenses and permits, complying with taxation laws, protecting intellectual property, adhering to labor laws, and complying with foreign investment regulations for foreign investors. Entrepreneurs should always seek professional legal advice to ensure their startup complies with all applicable laws and regulations.
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Emeritus Courses: Go Big, Go Bold – Your Journey to Startup Success in India
Now that you know how to start a startup in India, take the first step toward realizing your entrepreneurial dreams. If you want to enhance your knowledge and skills in entrepreneurship further, consider exploring the wide range of online courses Emeritus offers.
By Krati Joshi
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