Whether you are in a metro city or a tier 2 or 3 city, startup ideas have become a common discussion topic amongst friends or family. You might have a promising idea as well. However, the idea alone is insufficient; you need a strategic approach to convert your idea into a thriving startup. But how do you know the next step in your startup journey?
Worry not; we can help you with our step-by-step guide to starting a startup in India for 2025! We will discuss nine steps to help you create your startup and raise funds to raise revenue and profit.
9-Step Guide to Starting a Startup in India
The nine steps are to help you convert your idea into a startup and scale it for growth and better profits. This guide is also useful for starting a business in India.
1. Validate startup idea
So, do you have an idea that can help many? Good! But the real question is, do you know exactly what category of people will benefit from it? Or is your target audience willing to buy your product/services? According to CBInsights, 35% of startups fail because they have no market need. Therefore, validating your startup idea with customer research and product-market fit is critical for the longevity and success of your idea.
2. Develop prototype
Once you have validated your Startup business idea, you should create a minimum viable product (MVP) based on your market and target audience’s
insights. The MVP needs to have the core functionality of your idea and to do advanced market research for improvement. Testing your prototype can refine your final product’s quality to acquire customers and secure funding for business growth.
3. Create a scalable business model
Building a comprehensive, realistic, and scalable business model is essential for starting a startup in India. The business model includes information like how your startup will operate, the market you will target, how you’ll generate and manage revenue, utilize the resources, and the role of your partners and the team. The business model helps you keep the startup’s progress and growth on track. Furthermore, it is essential to raise funds from external sources. Start by creating a basic model and refine it as you secure more assets and diversify your business.
4. Choose the best revenue model
Revenue management is among the most critical factors for startups in India, especially for bootstrapped startups. The revenue model of your startup
depends on your product/service, market demand, and buyer persona. The popular revenue models are:
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full price for products
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subscriptions-based
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free+premium packages
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Marketplace commission
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Ad-supported platforms
You can experiment with a few of them or combine a few to secure the maximum revenue from your target audience.
5. Register your startup at the relevant authority.
So, you have validated your idea and created a comprehensive business model; what’s next? Registering your startup in India. The Startup India registration helps you legalize your startup to kickstart operations, access government aid, build trustworthiness in the market, and raise funds effortlessly.
Anyone starting a startup in India must register with the Ministry of Corporate Affairs (MCA) and get a DPIIT certificate by registering their startup company in the Startup India portal. Following are a few registrations and certifications you’ll need to legalize your startup:
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Startup India Registration
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GST at the GST portal
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MSME registration at Udyam registration
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Get Director Identification Number (DIN)
Check the necessary portals to understand what documents you’ll need to register your startup.
6. Build a reliable core team
Your team will be the determining factor of your startup’s success. So, first, find reliable co-founders if you need them to improve your offerings and bring in their expertise. Hire the core team members to build and refine your MVP and manage the operations. Focus on hiring expert employees for quality work and offer good incentives and positive work culture for better productivity.
7. Raise funds
Raising funds might be the most critical and confusing step when starting a startup in India. While bootstrapping is the equity dilution-free option, it might not work for many startups. Therefore, external funding options like Angel investors for pre-seed or seed funding and venture capital of large-scale financing.
These investors also offer expertise to improve your startup operations, marketing, and more for better revenue and returns. Before raising funds, ensure that you have a fund management plan to utilize the funds productively and avoid overspending. Startup events like the 21BY72 Global Startup Summit offer you the perfect opportunity to pitch your startup idea for seed funding or VC funding to diverse investors, exhibit your startup idea to secure deals and build your network.
8. Run your operations
Once you have secured enough funding, focus on managing and running your operations for the best productivity and efficiency. Track the fund usage in vital operations like product development, sourcing resources for manufacturing, and marketing to acquire customers. The growth of a startup with these operations helps you achieve more funding in the future.
9. Focus on marketing
Marketing is the core of creating the best startups in India and achieving the expected growth rate in a competitive market. Invest in a skilled marketing team to build a brand image in the market and customer acquisition. There are many paid and organic growth-focused marketing tools. You can use one of the few or all of the following marketing channels depending on where your target audience resides:
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Digital marketing (SEO and social media marketing)
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Influencer marketing
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Affiliate marketing
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Performance marketing (running Ads on Google and social media)
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Public Relations (PR)
Conclusion
Starting a startup in India requires a well-researched idea, strong execution, and strategic funding. We discussed the 9-step process to start a startup business in India, from validating your startup ideas and creating the MVP to securing the funds and marketing the brand. The Startup India initiative has simplified the startup registration process, making it easier for entrepreneurs to build and scale their businesses and learn about the startup ecosystem in India.
FAQs
1. How much money is required to start a startup in India?
The cost of starting a startup business in India varies based on the industry, scale of operations, business model, size of the core team, and the technology required to start the business. Furthermore, the area to which the startup belongs also influences the budget. Depending on product and operations requirements, it can start with 1-2 lakhs and range in crores. One may rely on bootstrapping or seek external funding through angel investors, VCs, or debts.
2. What are the basic steps for beginners to start a startup in India?
Starting a startup company as a first-generation entrepreneur (beginner) can be tricky and confusing. So, here are a few things you must do to kickstart your journey and keep your business afloat. Start by validating the need for your startup idea for better results and revenue. Develop a product, register your startup for better control over your operations, and raise funds. Creating a scalable business helps you organize operations, utilize the funds efficiently, and achieve sustainable growth. It also enables you to get tax benefits and financial support. Build your core team to manage your operations and market your startup product. Finally, once you start securing profits, expand your startup for better growth.
3. How does a startup company raise funding in India?
There are multiple ways for startups in India to raise funds. However, the type of investments varies based on the startup stage, equity dilution, and the scale of funding and expertise you need. Bootstrapping is for startups that can finance themselves without any external sources and equity dilution. Other equity-free options are debt loans, crowdfunding, and government schemes. Angel investors are individuals providing funding and knowledge in return for some equity. Venture capital firms offer funding at a large scale with equity dilution.
4. What is startup registration, and what are the benefits of registering startups in India?
Startup registration is essential to convert your idea into a legal business and conduct operations. A startup business in India must register in the Startup India portal to secure the DPIIT certificate and the Ministry of Corporate Affairs to start operations and trade. The benefits of registration are access to tax exemptions for eligible startups, access to resources like investors, incubators, and accelerators, a faster patent process, and legal assistance when necessary.
