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How to Start a Business With No Money: A Step-by-Step Guide

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how to start a business

How to Start a Business: Be it a small business or a large-scale business, if you are planning to start a business, then it is extremely important for business owners to plan their business before executing it. If you are planning to start a business but are not sure where to start and how to get success out of it, then don’t worry. On this page, we have covered everything about getting started with a business, right from the business plan to the financial assistance required. So, all entrepreneurs who want to learn the fundamentals of starting a business can read this comprehensive article and get assistance in starting their own business venture. Scroll down to find out more.

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How to Start a Business in 11 Easy Steps?

Starting a business includes planning, making financial decisions, conducting market research, and learning about topics you never expected to learn about. To help you with this, we have devised 11 detailed steps that will help you start your business. However, it is important to note that there is no single strategy for beginning a new business, but these steps will assist you in arranging your thoughts and working out important aspects so that when you launch your company, you have addressed all of the crucial business queries. Here are the thirteen easy steps that tell you everything you need to know about how to start a business.

1. Generating Business Concepts

Finding a business idea that works for you is the first step toward becoming a successful entrepreneur. To get started with this, take out a piece of paper and simply write down 7 things that you like to do. For example, if you like to listen to music, enjoy taking care of children, enjoy food, and so on. Now turn the paper over and start writing seven things that you don’t like to do. For example, if you don’t like public speaking, don’t like travelling, and so on. Don’t think much when you are writing these points; just pour your heart into the paper.

Now the next thing is to start reading about yourself in the paper. You will get an overall idea of what suits you and what doesn’t fall under your bucket. Now choose the businesses that suit and fall under the particular business. For example, if you are fond of kids, then choose business ideas that are related to kids, such as e-learning. Playschool, daycare, coaching classes, and so on.

Once you get the business idea, start market research on existing companies with your business idea. If you think that is extremely suitable for you, then go to step 2. If you find the business idea chosen by you doesn’t fall under your category, then use your brain and come up with a new business idea.

Check 10 Small Profitable Business Ideas with Low Investment

2. Development of Business Plans

A business plan is a complete road map for the growth and development of your small business. It expresses who you are, what you want to do, and how you intend to do it. It also helps in attracting talent and investment.

Thus, make a rough sketch or outline of what you intend to include in each part of your business plan. Collect the facts and statistics that will help you with your business plan. For a basic business plan, the four most critical parts are a brief overview, marketing strategy, biographies of key executives, and budgeting. Fill in each part of your business plan using this information. If each component of your business plan fails, have it reviewed by a mentor, coworker, or friend to know whether it succeeded or not.

3. Establishing a Business Structure

Before you can register your business with the state, you must first decide on a business structure. Most businesses will also need to obtain a tax ID number and apply for the necessary licences and permissions. Choose your business structure carefully since you may be able to change your business structure in the future, but there may be limitations depending on your location. This might have tax implications as well as inadvertent dissolution, among other issues. Consulting with business advisors, attorneys, and accountants might be beneficial when choosing a business structure.

4. Formation of a Business Entity

In India, starting a business involves deciding on and selecting a business entity. To begin, you must incorporate your company as a private limited company, a partnership firm, or a limited liability partnership. You must follow all of the standard steps for registering a business, such as getting a Certificate of Incorporation or Partnership registration, a PAN, and other mandatory compliance.

5. Establishing a Bank Account

One of the first steps after the establishment of the company entity is to open a bank account in the name of the company. Corporate entities such as LLPs, private limited companies, one-person companies, and limited companies are permitted to create bank accounts in India by submitting a copy of the entity’s Certificate of Incorporation and PAN Card.

On the other hand, opening a bank account in the name of the business for a proprietorship entity may be more difficult, as one or more tax registrations may be necessary to confirm the identification of the proprietorship business.

6. Obtain Business Capital

A business loan is essentially a borrowed sum of money that is used to invest in a new or current business. It is critical for small and medium-sized enterprises (SMEs) and large businesses to understand how these loans function. In India, banking and NBFC finance continue to be the lifeline of small and medium-sized businesses. Business loans assist your small business in expanding by allowing you to invest in infrastructure, operations, equipment, and machinery. Furthermore, business loans may be a great way to keep your organisation running during important times.

There are various types of business loans in India. It is important for entrepreneurs to know which type of business loan is suitable for their business and to get started with it.

Business Loan in Mumbai Business Loan in Pune
Business Loan in Bangalore Business Loan in Delhi NCR
Business Loan in Hyderabad Business Loan in Chennai

7. Registration for Taxes

Depending on the sort of operation planned by the business, vendor criterion, or customer needs, the following tax registrations may be necessary for the company:

  • GST Registration: In most states, any individual or company with a turnover of more than Rs. 20 lakh is required to register for GST.
  • TAN Registration: TAN Registration is required in order to deduct taxes at the source (TDS). As a result, TAN registration may be necessary when recruiting personnel or doing business with specific customers or vendors.
  • ESI Registration: When the number of workers in a firm exceeds 20, ESI Registration becomes necessary. Proof of ESI Registration is often requested by businesses that outsource staffing.

8. Purchase Equipment and Create a Website

Once all the registration process is done, start buying the essentials that are required to run your business. If you need machinery and other physical products to run your business, then do purchase them and set them up for use. Similarly, if you are into a digital business, then build a website to help customers understand your business details and services.

9. Plan How You Will Pay Your Debts and Salaries

You are 80% of the way to launching a business. Now decide how you will pay your employees when you hire them, how many employees you will need to run your business, and how much you will earn through this business. Also, make a list of key parameters for how you intend to repay your debts by making profits. Once you get answers to all these questions, move to step 10.

10. Employ People

Employee hiring is a time-consuming and comprehensive procedure. If you do it correctly, you’ll be able to locate and attract high-quality people who will stick around and represent your business in the way you desire. If you don’t have expertise in human resources, as many small company owners do, you might not know where to start with hiring.

Thus, prepare the hiring procedure by analysing market hiring conditions and gathering all the necessary papers. When you begin the process, think about the specific job you’re looking for and how much you’re willing to negotiate once you’ve made an offer.

11. Pay Your Taxes On Time

What taxes you must pay and how you pay them are determined by the type of business you run. Make sure you pay your taxes on time and without interruptions to keep your business running.

Now that you have been provided with all the necessary information on how to run a business effectively in India if you have a business idea and are willing to get started with it, follow the 11 easy steps that are explained on this page to start your venture successfully.

Also, don’t forget to return to share your thoughts on how this article assisted you in launching your business with flying colours.

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