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How to start a business
So, friends, the first step for how to start a business or start up is that you must know what exactly do you wish to do. What’s your idea? There are two reasons for this, first is that there’s a very less chance 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 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, infect you have to think that what do you yourself like to do. Let’s understand how to start a business from beginning. These are some steps for understand the how to start a business.
Step 1: Idea and planning
Here I would recommend you to focus on two things. First, what’s your passion, your interest what do you like to do. And second most important thing 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 do they function, study them, call and ask them about their business and study their business model. How to start a business.
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 yearend 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? I recommend you start a business where you don’t need to take a loan from the bank or any third person, you 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. Let’s understand how to start a business from beginning.
Step 2: Register your business
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. Let’s understand how to start a business from beginning.
Step 3: Tax registrations
you have registered 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. 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 Employee Stat Registration done. How to start a business with mimprovement.
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. Let’s understand how to start a business from beginning.
Step 4: Yearly compliances
As the last step, 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. Let’s understand how to start a business from beginning.