Whenever I hear about entrepreneur, Freedom, courage and passion are the terms that come to my mind. To start your own business, you can get inspired by a lot of things. maybe you are passionate about something and it’s your dream since your childhood.
Maybe you don’t want to work under someone and wish to be your own boss.
Maybe you got inspired by our Prime Minister’s words and wish to open your fritters’ shop. Reason could be anything, I will tell you everything from the start to end that you need to know to start your own business in this Artical and to become an entrepreneur in India.
So friends, the first step to start your business or start up is that you must know what exactly do you wish to do.
What is an entrepreneur?
An entrepreneur is the person who starts a new company, takes the most risk, and receives the most reward. The process of creating a company is known as entrepreneurship. The entrepreneur is usually seen as an innovator and a source of new ideas, products, services, and actions.
Entrepreneurs play an essential role in any economy, using the necessary skills and initiative to anticipate needs and bring good new ideas to market. Entrepreneurship that successfully takes on the risks of starting a startup is rewarded with profit, fame, and opportunities for continued growth. Unsuccessful entrepreneurship leads to losses and less market penetration for participants.
What’s your idea? Many people thinks that I need to think of an idea which no one has ever thought of.
But according to me, it’s a wrong thinking. There are two reasons for this, First is that there’s a very less chances of thinking of such idea which no one has ever thought about.
Because there are more than a billion people in the country ,hence there’s a very less chance of it. and the second and more important reason why you shouldn’t do this is that to start a business where there is no customer base established, no source of revenue and no one has done trial and error no experiment that to do this business, such kind of revenue comes or problems arises, then it’s a very new thing and a very risky work.
So I would recommend you to not think of an idea which no one has ever thought of. In fact you have to think that what do you yourself like to do.
Here I would recommend you to focus on two things first, what’s your passion, your interest what do you like to do. How can you give value to people from your work and how can you benefit people and give value that they will give you money in return When these two things are clear, you can see which business already exists which coincides with these two things.
Then study what kind of such businesses are already in the market and how do they run.
For example imagine if you love adventure sports like river rafting that’s the first thing then the second thing is how can you give benefits to people then here you can start an adventure sports company If this satisfies you then look what all kind of adventure sports company already exists in India.
How does entrepreneurship work?
Entrepreneurship is one of the resources that economists classify as an integral part of production, and the other three are land / natural resources, labor, and capital. The entrepreneur combines the first three of them to produce goods or provide services. They usually create a business plan, hire work, receive resources and funding, and provide leadership and business management.
Entrepreneurs usually face many obstacles in setting up their companies. Three, which many of them called the most difficult, are as follows:
- Overcome bureaucracy
- recruitment of talents
- Get funding
Economists have never had a consistent definition of entrepreneur or entrepreneurship (the word entrepreneur comes from the French verb entendre, meaning to undertake). Although the concept of the entrepreneur has existed and been known for centuries, the classical and neoclassical economists left entrepreneurs outside their formal models: they assumed that perfect information would be known to perfectly rational actors, leaving no room for risk or discovery. It was not until the mid-20th century that economists seriously attempted to incorporate entrepreneurship into their models.
There were three critical thinkers in the entrepreneurial community: Joseph Schumpeter, Frank Knight, and Israel Kerzner. Schumpeter suggested that entrepreneurs, not just companies, are responsible for creating new things searching for profit. Knight focused on entrepreneurs as bearers of uncertainty and believed they were liable for the risk premium in financial markets. Kerzner viewed entrepreneurship as a process that leads to discovery.
How do they function, study them, call and ask them about their business and study their business model.
Next step after this is to create a business plan. Suppose if you are staring your business from tomorrow, then prepare the budget report of full one year from tomorrow to the year end, that how much money will you need to start the business, how much capital and investment will be required?
And in the whole year how much will be the expenses and what will be the profit that you will gain. and where will you get the required capital and money that you will need?
will you borrow from your friends, ask your family or take a loan from the bank. start a business where you don’t need to take a loan from the bank or any third person.
Start a business where your family is able to afford the initial investment. because if you get into banks and your business fails then you will have to face a big loss and lots of problems.
So think of a business where you are able to invest yourself and you have the capital. or your family of friends are ready to give you that amount.
I’m suggesting this for the initial stage, once you business is established then you can think of taking loan to move it to the next step.
This will the risk can be minimized. You can borrow the money from anywhere friends but the business plan that you have made for the year should be as detailed as possible.
so that the investors will get convinced that this business will surely work and if we invest in this then we won’t incurr any loss. and will gain only profit from the business.
How to become an entrepreneur?
After leaving her professional dance shoes, Judy Shepard, Misset became an entrepreneur, teaching civic dance lessons to earn extra money. But she soon found out that the women who came to her studio were less interested in learning the minor steps than losing weight and building muscle. Sheppard Misset then trained coaches to train the masses in her routine, and Jazzercise was born. A franchise deal followed. today, the company has more than 8,300 offices around the world.
Following a mail-order ice cream course, two entrepreneurs, Jerry Greenfield and Ben Cohen, pooled $ 8,000 savings with a $ 4,000 loan, rented a gas station in Burlington, Wato, and purchased equipment to make a flavored ice cream unique to the local market today. They were generating millions of dollars in annual income for Ben & Jerry.
Although the “self-made man” (or woman) has always been a popular figure in American society, entrepreneurship has become quite romantic in the past few decades. In the 21st century, the example of Internet companies such as Alphabet and fka Google (GOOG) and Facebook (FB), which made their founders extremely wealthy, has got people excited about the idea of becoming an entrepreneur.
Unlike traditional careers, where there is often a particular path, entrepreneurship is bewildering to most people. What works for one entrepreneur may not work for another, and vice versa. However, there are seven general steps that most, if not all, successful entrepreneurs follow:
Ensure financial stability
This first step is not a strict requirement but is recommended. It’s time to work on building a successful business and not worry about making money fast.
Build a diverse set of skills
Once a person has substantial financial resources, it is essential to develop various skills and apply them in the real world. The beauty of the second step is that it can be done in conjunction with the first step.
You can build your skillset by learning and trying new challenges in real-world settings. For example, if a budding entrepreneur has a background in finance, they might move into a salesperson position at their current company to learn the soft skills they need to succeed. The set of diverse skills created gives the entrepreneur a set of tools to rely on when faced with the certainty of difficult situations.
There has been a lot of discussion about whether going to college is necessary to become a successful entrepreneur. Many famous entrepreneurs are known for dropping out of college: Steve Jobs, Mark Zuckerberg, Larry Ellison, and many more.
While going to college is not a prerequisite for building a successful business, it can teach young people a lot about the world around them and in many other ways. These famous college dropouts are the exception rather than the rule. College may not be for everyone, and the choice remains personal, but it is worth considering, especially given the high cost of college tuition in the United States.
It is not true that starting a business requires a degree in entrepreneurship. People who have built healthy companies specialize in many different topics, and this can open your eyes to a different mindset that will help you start your business.
Consume content across multiple channels
While it is essential to develop a diverse set of skills, consuming different content is equally important. This content can be in the form of podcasts, books, articles, or lectures. The important thing is that the content should differ in what it covers regardless of the channel. An aspiring entrepreneur should always be aware of the world around him to look at the industry from a new perspective, which allows him to build a business around a specific sector.
Identify the problem to be solved
By consuming content across multiple channels, an aspiring entrepreneur can identify various problems that need to be addressed. A business mandate says that a company’s product or service must solve a specific problem; Either for another business or a group of consumers. Having identified a problem, a novice entrepreneur can build a company based on its solution.
It is essential to combine the third and fourth steps to identify the problem to be solved by looking at different industries as an outside observer. This often allows the aspiring entrepreneur to see a problem that others may not notice.
Solve this problem
Successful startups solve a specific problem for other companies or the public. This is known as adding value to the problem. It is only by adding value to a particular issue or pain point that an entrepreneur becomes successful.
For example, suppose you determine that the dental appointment process is complicated for patients, and as a result, dentists are losing clients. The value may lie in creating an online appointment system that makes it easy to make an appointment.
Network like crazy
Most entrepreneurs cannot do this on their own. The business world is challenging, and with any help, you can always help you and shorten the time it takes to be successful in business. Networking is critical for any new entrepreneur. Meeting the right people who can introduce you to contacts in your field, such as suitable suppliers, financiers, and even mentors, can be the difference between success and failure.
Attending conferences, sending emails, chatting with people in the industry, and talking to your cousin friend’s brother who works in a similar field will help you get out into the world and find people to guide you. Once you meet the right people, doing business becomes much more accessible.
Now that you have made your one year business plan then we can move on to the next step.
Next step is to register your business with the Government. According to the type of your business there are different ways to register it these different ways are called as business entities I will not be able to tell you all, but I’ll tell you the main ways.
The First, the oldest and the easiest way to register your business is, “sole proprietorship proprietorship is a way to register your business where the business’ owner is you whatever will be the profit or loss of the business will be your own profit or loss.
So in a way you are personally liable for everything that’s happening with the business. small business owners like a shopkeeper use this way and register their shop as sole proprietor If you want to become a pakode wala then you will register your business as the proprietorship.
There are many benefits of proprietorship, here the government regulations are the minimum.
To register your business as the proprietorship you have to go to the local authority. If live in a city then you have to go to the municipality and if you stay in a village then to the Gram Panchayat.
This is available even online in few cities whereas not in some. This will cost around 1000 rs and 1-2 days to register.But also keep in mind that you maybe asked for bribe as you are visiting the local authority and you know the scenario of our country.
So be prepared for this. You can apply for proprietorship only if your company is a small scale and not more than 4 people are employed because it becomes very risky if it’s on a large scale.
Imagine your company is of crores and you have incurred a loss in crores then it will be your own loss of crores.
You would not want this hence in this case you should not do proprietorship and if you want to keep your profit and loss different from the profit and loss of the company and want to keep separate legal entities, in such case there are different ways to register so there’s another way called OPC, One person company here you are not personally liable if there’s something happening to the company.
So here they can’t come to your house and ask you to leave your house, car to repay against the failure of your company .
The registration cost of this is around 6000rs and more or less in different companies .
It will take 8-10 days to get registered and since this is a one person company you will have to be the director and share holder of this company.
Once you have done the registration of your company as OPC then if your company’s name is Chikara Pakodewala then it will be Chikara Pakodewala pvt ltd and OPC in the brackets.
Next way to register your company is pvt ltd company here a minimum of 2 share holders and 2 directors are required.
Maximum limit of share holders here is 200 and if you want more than that then you have to make a public limited company on digital marketing.
So as the name is private limited it is limited in the same way as one person company is limited.
There’s limited liability here, so the share holders have limited liability so if there’s a loss in the company then the share holders won’t have to pay for the loss personally.
It’s a very reputable and credible way to register your business. If you do so then the trust of customers and clients on your company and the trust of banks increases manifolds if your company has pvt ltd written Many starts up registers their company as pvt ltd or tries to do.
So as it’s easier to get loans from the banks and also the seeds funding, the investors investing in the company becomes easy.
The cost of this is around 7000rs and it takes between 5-10 days to register.
Its obvious as this is very trusted and hence the regulations by the government also increases but towards the end of this artical.
I will tell you an easy way to register your company. I would like to talk about another way to register your company and that is limited liability partnership.
This is useful when you are a professional in a field like doctors, engineers or chartered accountant. and this is useful when you are forming a company for a limited time and you are going to dissolve it afterwards.
For example you are a builder and you started a company to construct a building where you have employed the workers, engineers, architects but after the building is constructed you don’t need that company and so you dissolve that company.
Here this limited liability partnership comes into use. These four ways which I’ve told you are the main ways and most of you will require this, you need to know that if you want to deal with the corporate field or large companies then the preferrable way is pvt ltd only. and if you want to keep your own small business and don’t want to get into more regulations then proprietorship is the best way.
So friends, you have register the company and the next step is to do the tax registration.
GST registration is at number 1 here, if your company’s turnover is more than 20 lacs in a year then you have to register for GST.
In some of the North states the minimum turnover is 10 lacs and GST registration is also required if you deal with import- export even within the states. or if you have a business related to e-commerce.
If you have import-export business then you also need to get Import-Export Code Registration done. In some states there’s a different kind of tax called as Professional Tax Registration which you have to get done if you reside in such states.
If you have more than 10 employees in your company then you have to get Employee State Insurance Registration done and if you have more than 20 employees then you have to get even Provident Fund Registration done.
There’s an optional registration called MSME, this is not compulsory but you will get a lot of benefits if you do it.
It will be easier for you to get bank loans, you will get some tax subsidies, exemption schemes and many such benefits so it’s good to get it done. so, there are so many types of company registration and tax registration as well.
There’s a easier way to get it done together This way is ispeedbiz.com. It’s and easy way to get everything done together.
Jagdish Lade has made this website. He is an entrepreneur and he specializes in this. He looks after the registrations of different companies, tax registrations and he also offers free consultancy.
The special thing about this website is that according to Jagdish it charges the lowest fees in the country.
It can get your registration and company related work done Now I’ve told you about tax and company registration but if your business is about website related he can help you buy the domain name any consultancy required during this work, get your bank accounts open,
so all your work can be done by him for the lowest fees. The best thing is you can get your work done from any part of the country by log in to this website any where and your work will be done.
If you have any questions or doubts related to your business you can ask Jagdish at this phone number.
He has even helped me to make the script of this artical as he is an expert in this. As the last step friends, I would like to tell you that there are few things which a business has to do every year.
It is Yearly Mandatory Compliances, the first thing is Income Tax Returns, every business has to file income tax return at the end of the year. Second thing is Accounting and which you need to do and I would say that you must do it with care.
It’s a balance sheet where all your profit, loss, money received, etc is done on a balance sheet. You can hire an accountant for this or if your company is small then you can do it yourself.
If you are registered for GST then you have to file GST, It has monthly or quarterly compliance Next is secretarial compliance which you have to do if your company is OPC, LLP or PVTLTD Statutory Audit you will have to do if your company is OPC or LLP with the yearly turnover of 40 lacs or more than that.
So, friends now you are ready to become an entrepreneur and to start your own business.
I would like to give you some tips from my own personal experiences. Because somewhere even I’m an entrepreneur .
I give you value through my knowledge and the knowledge you gain after watching my artical.
A pakode wala gives you value from his pakode, how tasty it is and how much you like eating it.
So, all the businesses gives value and if you are going to focus on the value then your business will run good. and somewhere I fell value can be given only when you enjoy working.
So only do such business where your interest lies and you enjoy working. and lastly there’s no point of doing a business which runs in a unsustainable way which leads to a destruction I’ll give you an example of Adani’s business here, where he was making a coal mine on the great reef and affecting the natural resources there was no benefit of it, to say he said that it will generate employment and generate more electricity but due to such destruction who will like his company?
No one will respect such person, so stay away from such business. So I hope friends, you must have got a lot of knowledge and a lot to learn and a lot of value from this artical.