1.

Decide on a business idea

• India has opened doors to various

sectors for small businesses, including
defence and aerospace, for MSMEs.
There are also opportunities in
hospitality and tourism,
manufacturing industries and
agriculture, under ‘Make In India.’
• Any such small businesses can be
launched by Indian citizens, Non
Resident Indians, Overseas Citizens of
India/ Person of Indian Origin and
foreign nationals in partnership with
locals. Investments by foreign
companies and nationals are governed
by India’s Foreign Exchange and
Monetary Act (FEMA) is subject
to Reserve Bank Of India regulations.
 2. Get more training, experience
• Launch your small business according
to your expertise. Remember, your
skills will decide success of your
business. Try to learn as many tricks
of the trade as possible.
• You may opt for a specialized or
vocational training course, offered by
various recognized institutes of the
Indian government. Additional skills
can also be gained by working with
other established businesses in the
field. It is best to commence as
beginner, forgetting all past knowledge
and experience.
 3. Writing it down: The Project Report
• Uniqueness decides a venture’s
success. Study domestic and
international market for products,
services compatible to yours. Find
every detail related to your business.
Read as many success and failure
stories about similar businesses.
• The first step to any business begins
with feasibility studies and a project
report. This can be done by yourself or
with the help of experts, based on
nature of business and funds.
• A project report must contain details
including name, age and qualification
of the owner or partners. Attach
experience certificates relevant to the
trade: They help boost prospects of
getting finance.
 4. Finalize your source of funds
• Most small businesses in India are self-financed
or launched with funds from family and friends.
You will require astute estimates about how much
money you will require to launch the business.
• Also calculate finances you will require to keep
the business afloat till it becomes profitable.
Entrepreneurs launching micro, small and
medium enterprises can seek funding from
• Banks: Check with various banks for start-up
capital offers.
• Cooperative credit societies: These
offer loans for small businesses if you buy their
shares.
• Community development funds: Focused
on welfare of specific communities, they offer
small business loans.
• Venture capitalists/ angel investors: These have
sprung up in India over the last three years and
offer excellent funding opportunities for small,
innovative businesses.
 5. Decide on your location
• Starting a small business in India
requires spare at home or a shop, stall,
workshop or office. Registering your
business with local municipality/ village
administration is mandatory under
Indian laws.

• The civic body or gram panchayat will

give permits to operate your business
from area under its jurisdiction. Utilities
providers ask for municipal/ village
panchayat registration before giving
electricity and water connections to the
premises. It serves as proof of physical
address of the business. Taxes levied on
businesses in rural areas are lower.
 6. Business registration and legalization
• This is a messy, daunting job for every
entrepreneur. Registering a business in
India can be lengthy and perplexing.
Thanks to direct instructions from Prime
Minister Narendra Modi, the Ministry of
Corporate Affairs now registers new
companies within one working day.
• All formalities for registering a company
can be completed online. Details about
documentation required and other FAQs
are listed on the ministry’s website.
Licenses from various state and Central
governments are mandatory when
launching a small business.
 7. Get yourself tax registered
• Setting up a small business entails you to
procure a Permanent Account Number
(PAN) and Taxpayers Identification
Number (TIN). These are issued by the
Income Tax Department. Getting a PAN
and TIN number is relatively easy.

• You can approach any PAN and TIN

service centre authorized by National
Securities Depository Ltd, submit
completed forms by attaching required
documents and paying a nominal fee. PAN
and TIN numbers are allotted within 30
working days from date of application.

• PAN and TIN numbers are useful when

paying taxes to the government every year.
 8. Launch your own website
• Based upon their nature, small
businesses in India can be established in
three categories:
1 Online
2 Online and physical
3 Physical (store/ office/ workshop)
• Trends demand every business to
maintain online presence. This can be
done by creating a website or social
media page like Facebook, depending
upon budget and type of product/
services offered.
 9. Grab a market position
• Use all your creativity while launching a
small business. Give your venture a great,
easy-to-remember name. Company logos
are brand ambassadors of the business.
Hire a professional designer to create
unique logo for your small business.
• This logo will someday herald your
superior products and services
worldwide. All successful businesses
retain the logo or at least the version,
they used at launch.
• Print official stationery depicting the
logo, brand, company name and contact
details. This includes letterheads,
envelopes, invoice books, payment
vouchers and other stuff required for
official transactions.
 10. More money matters with banks
• Armed with company and municipal
registration, PAN number, the bank of
your choice will open a current account.
Before rushing to open a bank account,
check a few details. Ask about overdraft
facilities.
• This is important to ensure your cheques
do not bounce due to scarce funds. A
bounced cheque indicates financial
instability of a company or business.
Negotiate how many free cheques you
are entitled for annually.
• Check for loan and other facilities given
to small businessmen such as instant
credit on deposited and outstation
cheques. If you need imported raw
material, check for Letter of Credit
facilities.
 11. Getting staffed with low wages
• This is one prime area of your small
business. Usually most entrepreneurs
launch a proverbial one-man-show.
Some enlist assistance of family
members including spouse, grown-up
kids, siblings or parents.

• This may not always be possible. The

best way to get qualified staff at
beginner salaries is educational
institutes or websites. Almost every
training centre provides job placement
assurance.
 12. Publicize your small business
• Intense competition demands you publicize
your small business well. Advertising can
cost a fortune and eat heavily into your
capital. Using micro-blogging sites such as
Twitter to introduce your company
combined with a good presence on
Facebook serve this purpose.
• You can also launch videos of your
company, products and its services, salient
features and other information on YouTube
and upload relevant pictures on Instagram.
A great profile on LinkedIn for your
business will ensure you reach the right
audience.
• You can also use traditional ways to
promote your business like advertise in
newspaper, local radio, distributing
pamphlets etc.