Starting a business is probably the toughest thing, and no school or college teaches you that. You learn many new things once you have started the business. However, by the time you realize you are going wrong, you might have incurred a loss and can’t recover that. Apart from this, there are many legal things that you must know before starting a business; otherwise, you may end up wasting your valuable time in fighting the legal battle. Nevertheless, let’s have a look at the most critical things to do before starting a business in India.
The first thing you need to consider before starting a business is the structure of the business. You must be clear about the business type like a sole proprietorship, private limited partnership, etc. You must have clarity on this. Every business type has its legal requirements. You need to register your business with the ministry of corporate affairs accordingly.
Apply for Business License
Getting a license is an inevitable part of your business. You can set up a business out of the blue. If you start a business without a valid license, you may end up in jail as well. The business licenses vary from industry to industry. You should obtain a valid license before you put your hard-earned money into the business.
Understand the Taxation laws
Taxes are an integral part of every business. A business may have to deal with a variety of taxes like GST, corporate tax, local taxes, state taxes, excise duty, etc. Moreover, different businesses are entitled to different taxes. The government of India has announced a few tax reliefs for the startup. You should know about them to get the benefits.
Focus on Your Customers First
Businesses are all about the customers. You can’t make a profit unless your customers are happy. So focus on people, understand their needs, give value to them with your product and services. Make sure that you are giving the best product at the most affordable price. It will ensure you are earning the loyalty of your customers.
A Sound Business Model is Essential
Before you start any business, you choose a robust business model that can generate continuous cash flow. You must study the market and find out the demand for the product and service you are going to offer. Always try to find some unique product or service that solves the problem of your customers. Another critical thing you must consider is that your business is futuristic. Technology is changing fast, and you can’t survive in a business if your business is not future-oriented.
Maintain work-life balance
Managing a business is always demanding, and you need to invest a lot of time. Many entrepreneurs work for long hours, and as a result, they rarely find time for their family or friends. They eventually burn out, and their productivity gets affected badly. If you wish to be more productive, you should ensure you are spending enough time for yourself and with your family. It will keep your energy intact, and you will be more productive. You have to consider this before starting your business.
Make an Arrangement for Additional Fund
When you start a business, you may need some additional funds. You can opt for a business loan. However, it is not the only way you can raise a fund for your business. There are some other effective ways as well. You can look for an angel investor, raise funds through equity and business loans. These days even a startup can go for an IPO provided you fulfill SEBI guidelines. The govt. of India has come up with a Mudra loan to help small business owners. You can check that option as well.
Starting a business is challenging, but many people excel in it and establish a robust business that runs for generations. However, you must consider all the aspects of your business. The success of your business depends on how well you have planned it. You should also consider the future prospect of the business. You should also consider how much competition is there and how your product or service is better than your competitors. When you do all the homework, the chances of success become much higher.