Did you know that 90% of Indian startups fail within 5 years of inception? This is research-proven data from IBM Institute for Business Value and Oxford Economics. The reasons for the failure are many, yet News18 mentioned “lack of innovation” as the primary one. Besides this ‘transformation’ factor, you must first know the fundamental aspects to successfully run your business, if you have plans for a startup
Launching a startup itself is a challenging process (owing to IBM’s data). But, when you have a clear picture of your business goals, functions, and processes, you are ready to show results in the market! But the following context may help you get an idea on:
- The best ways to start a business in Bangalore.
- The right pre-launch initiatives to take.
- The few legal structures and norms you must be knowledgeable about.
9 Steps to Launch Your Bangalore Startup
1. Perform a Feasibility Study:
Validate your idea with a Business Feasibility Study. The report from this study will give you data on industry present conditions, sales-revenue predictions, and other success-based quotients. You may avail of this data by networking with online experts, as well as your own market analytics and research strategies, work for this.
2. Sketch a B-Plan:
A B-Plan (Business Plan) is an official document, usually created by the founder (s) of a company. This document should include crisp, precise information on your financial, legal and operational backgrounds.
Considering the reason for a B-Plan, this document is what bank managers and even financing platforms like Angel Investments look into, before crediting the money. B-Plan is also a prerequisite for B2B operations, to offer a quick description of what, who, and how your company protocols take place.
3. Decide the Legal Structure:
You can open your startup in 5 different structures:
- Sole Proprietorship – Only 1 person is responsible for the business, and there is no legal differentiation between the company and the owner.
- Partnership – Formal agreement between 2 or more individuals.
- One Person Company [OPC] – Only 1 business owner exists.
- Private Limited Company [Pvt. Ltd.] – No public share trading and usually consists of 20 shareholders.
- Public Limited Company [PLC]- Traded on the stock exchange for the general public.
Contacting a business consultant to know the pros and cons of each structure and then choose your decision wisely.
4. Hire Funding Platforms:
There are numerous possibilities in getting a startup investment. A few advisable ways to receive cash include venture capital, bank loan, angel investment, bootstrapping, crowdfunding, or even you can request initial amounts from your friends and relatives.
5. Acquire Company Registration:
With the support of a Chartered Accountant, you must get an official company registration in Bangalore city, as per your budget estimates. The standard time to get your business registered is around 10 working days. And for this, collect your original documents such as MOA, CIN, AOA, DSC, ESIC, GST, and keep them ready.
6. Enroll for Startup India Initiative:
Launched in 2017, the Startup India project is seeing quite a success in recent times. Under the guidance of the Indian government, procedures have become easier and quicker for businesses with this initiative. Visit the official website and register your company to avail of the taxational and age-centric perks for your business.
7. Form Intellectual Properties:
Your company’s logo, domain name, color, slogan, brand appearance, and other tangible business aspects must hold intellectual property rights. This secures the uniqueness of your business and gives judicial rights over the trademarks, copyrights, patents, and other authorship-based factors relating to your company registration in Bangalore.
8. Establish an Online Presence:
With the increased use of digital tools and technologies, showcase your products/services online to web users. Online techniques such as White SEO, content marketing, social media presence, SEM, etc. are to be utilized best.
Note that the type of online platform you opt for depends on your startup’s objectives. Social Media management, email retailing, and more come at later stages as your business grows.
9. Hire the Right Workspace:
Where is your company headquarters? In what localities are the branches of your agency situated? These questions are certainly the least-spoken, significant aspects to consider when opening a startup. Find suitable geography, get land rights, sign bonds if any, and get your office launched legally right.
For small-scale companies and freelancing brands, lease office space or hire a co-working space in Bangalore.
Your Takeaway
Connecting to an experienced CA, Audit Assurance company, or a business Mentorship program can help you get the best deals and choices on how to start a business in Bangalore city.
FAQs
What are the requirements to register your company as an Indian startup?
To register your company as a startup in India, it should be 10 years or less from the DOI (date of inception) and the annual turnover should not exceed Rs. 100 crore. Moreover, your company (as a startup) should not be the reconstruction of a pre-existing brand and must be unique, innovative, and scalable on all terms.
What are the major factors to acknowledge before initiating a startup?
The most important factors to consider before initiating a startup include the business idea, funding, legal structure, location, market demand, staff, registration, innovation, consumer base, etc.