How to start business in India?
Small Business in India HubMob weekly
Starting business in India
How to start a business in India?
Starting a business in India is easy, especially if it is a small business. India requires lesser formalities to start a small business than many other countries. Once you have decided to start a small business in India you have to complete some formalities, legal and statutory.
First of all, you have to choose a name for your business and open a bank account (Current account) with that name. You have to provide a genuine address of your business. Evidence of your business address must be supported by relevant documents such as ownership deeds (if you are the owner of the premises) or an agreement of rent or a rent receipt.
You can also furnish your electricity or telephone bill as supporting evidence. You must verify your identity by furnishing your identity verification documents such as passport, voter ID card, ration card, driving license etc to register your business in India.
You need a VAT/ Service tax registration to buy or sell your goods in India. Vat is for selling goods and Service tax is for providing services. You can sell your services legally without service tax registration if your annual earning is less than Rs. 1 million. You have to register with the department and pay tax regularly as soon as your business cross that limit. You can have a VAT/ Service tax registration for a state (province) and / or for Indian territory. You need to provide a bond of the small amount of security deposit.
If you are in manufacturing sector you may have to register for Excise duty. You have to be registered with RBI for import- export business and pay customs duty for importing goods from foreign countries.
Please do not forget to prepare a business and finance plan before starting your business. Success lies in proper planning and implementation of your business idea.
Customs, Central Excise & Service Tax
Plan and implement your business idea
Business is not just buying or selling your goods. Business is altogether a different thing than mere financial activities or transactions. Business is a system or a set of systems required to earn a profit by satisfying needs of your clients.
You have to make a plan for your business which is relevant to your business idea. Planning is the most important and vital part of your business. There is a well-said proverb that if you fail to plan you are planning to fail. So, plan your business well.
PDCA: Plan, do, check, act
PDCA is a good way of making your business effective and efficient. Plan your business and then do according to your plan. Check its suitability and viability. Change or modify your plan if necessary. Do it responsibly. Go with minute details while checking your plan. Act upon your checked plan.
Sky is the limit in Indian business
Building business credit
Your business needs credit. Build business credibility. It often starts from your personal credit. However, business credit is different from your personal credit. You may have your personal credit and personal credit ratings but you have to build your business credit and business credit rating gradually.
Business credit and business credit rating will help you getting finance from banks, financial institutes, and individuals. This will help you in expanding your business.
Your credit is not limited to financial aspects. You have to build your credibility among your clients, especially customers. Your business will grow with satisfied customers. Provide your customers with quality products and services. Maintain timeliness. Timely supply is a keyword to modern business.
Your business can not grow only with quality goods and services but your goods and services should have a competitive price. You have to remember that large numbers of other suppliers are also in the same business and you have to compete with them. Your efficiency will help you in growing your business.
This is true in India and anywhere else.
Listing local business in Google
Marketing and advertising
Marketing is another keyword of present days business. It is not enough to manufacture or procure quality goods in modern businesses. You have to market your products and services well. You have to find customers and convince them to buy you products and services. It is vital for your business. You have to know the taste of your clients and supply products and services according to their choice and needs. It is better to have an in-depth knowledge of social and cultural backgrounds of your customers. Often these affect customers' behavior along with their financial positions.
For example, if your business is related to food and beverages and you are working in north India, you can easily sell Gujiya or Rasogolla. However, it is difficult to sell these items in south India where people prefer Idli or Dosa.
It is better to know the financial position and budget of your niche customers. You can adjust rates of your products and services according to the budget of your clients.
Advertising is also a necessary item in your business plan. It is very difficult to run and grow a business without advertising in modern days. There are plenty of ways to advertise your business. You can advertise your business in India through print and electronic media. Internet advertising is also becoming popular in India. However, the advertisement is becoming expensive and it is difficult for a small business to cope up with a high budget of advertisement.
You can use several means of free advertising on the internet. One of these is registering in Yahoo and Google local businesses for free. There are several other sites which offer free listings. You can also advertise your small business through e-mail and SMS as the internet and mobile phones are popular tools of communication.
It is better to have an online presence. Your website can do the work easily and in a cost-effective way. A well designed and optimized website can attract visitors and make them stay there. Your website, representing your products and services in a user-friendly manner, can turn them into customers. This will promote your business and boost sales.
You can go with mouth publicity also. this is the best way of advertisement for small businesses with small or no budget for advertisement. Do not forget that satisfied customers are your best ambassadors. They bring maximum numbers of customers to your business.
Boosting Small Business Competitiveness in India
India in map
India is a developing country and emerging market. It is situated in South Asia. This is a very good place for business and business entrepreneurs.
Business and economy articles in Hub pages
- Education and examples of Business and business syst...
Business is a system. Business persons employ people to work for them and engage investors to invest. They get lion's share of profit. want to start a business? Build a business system and earn...
- How to make a business and finance plan: An entrepre...
How to make a business and finance plan? The most frequently asked question in the business world. Step by step guide to write business and financial plan for new entrepreneurs facing basic problem..
- How to build Business credit: Building business cre...
An entrepreneur has unique opportunity to build, maintain and acquire business credit as well as personal credit. How to build business credit? Ten steps......
More by this Author
Make in India is slogan of Narendra Modi to develop the nation in manufacturing sector. He wants "Made in India" to be a global brand and putting all his efforts towards.
Jaipur, Pink city, India is the gem and jewelry hub, especially for colored stones. Emerald, Ruby, Sapphires, Tanzanite..all types of color gemstones are cut polished and exported....
Dhirubhai Ambani, founder of Reliance industries had seven secrets in business. A must for all entrepreneurs. Learn to grow your business.