India secured the 63rd place in World Bank’s Ease of Doing Business (EoDB) report 2020, jumping from 77th in 2019. Even though economic hiccups have characterized the past few years, India’s ranking has improved in 79 places since 2015.
The parameters which India has successfully achieved include ‘resolving insolvency’, ‘dealing with construction permits’, ‘registering property’, ‘trading across borders’, and ‘paying taxes’.
It comes as a result of a slew of government measures and initiatives like ‘Make in India’ that have significantly promoted trade and commerce.
Some of the measures that have been instrumental in encouraging the scale of trade and new businesses are convenience in availing credit facilities like small business loans, infrastructural improvisations, etc.
Furthermore, amid an unprecedented economic crisis, the Government of India has initiated yet another drive of ‘Atmanirbhar’ under the flag of Make in India.
This drive aims to encourage businesspersons and laypeople alike to undertake self-employment and create a more dynamic commercial ecosystem in India that would allow it to be more self-reliant.
How to start a small business?
Here’s a step-by-step guide on how to materialise a small business in India –
The primary step in opening any business is to conduct thorough research of the market. Even with a concrete business idea, it is essential to perform a reality check about market conditions early on.
Further, you need to go over the aspects of your business, like export finance, and balance them with ground reality to learn where you stand.
Thorough research would significantly supplement your efforts going forward as you would have an adequate reckoning of steps to take.
It is crucial that through all the research, you learn about the genuine market requirements and place your product/service accordingly.
- Business plan
It is one of the most critical junctures in starting a new business. A business plan will help you chart your way forward much more effortlessly. You need to plan out at least until your company’s growth phase. If you are likely to seek traditional external investments like small business loans, it is essential to create a thorough blueprint of your business plan.
Even if you opt for creative ways to raise funds for small businesses like crowdfunding, a thorough blueprint is a must. Only in case, you plan to bootstrap can you go by with a general chalking down of the entire business plan.
- Financial planning
It is perhaps the most critical step in opening a business, even though it might be small-scale. Financial planning predominantly involves charting out how much you need to keep your business afloat for at least till you see it making profits with all necessary considerations like legalities, working capital requirements, export finance, etc.
You also need to consider the avenues you will utilise to raise funds for your business, like government schemes, investors, etc. Alongside those, you might also consider a small business loan to supplement your financial standing.
You can use such a credit facility to mitigate working capital requirements or meet other essential funding needs until your business’s profits can be used for that purpose.
NBFCs such as Bajaj Finserv also ensure a more convenient and straightforward process to avail finance by providing pre-approved offers on business loans along with other advances like personal loans.
- Conclude legalities
Once you have ironed out all the planning and are ready to start your business, conclude all legalities. It would involve choosing a business structure, registering your business, acquiring permits and licenses, etc.
- Set up your team
Lastly, you need to build a workforce. You must chalk out all the job positions that you’d need initially and their responsibilities in detail to build the right workforce for your small business.
That concludes the basics of opening a small business. Ensure to be thorough through each step to avoid any hiccups later.
Regardless, even though India is currently suffering from one of the worst economic phases due to an unprecedented situation, the economy itself is ripe with business opportunities. Combined with the wave of ‘Atmanirbhar Bharat’, it is an ideal period for you to capitalize on those opportunities and open a small business.