The Indian government has recently announced a big move for Start Up companies and many of us may be wondering what its all about.
So I would like to put all the facts in a simplified manner for better understanding.
Before you start
Ask yourself if you are cut out for business and are passionate about it. Once you decide, ask yourself in which field you want to do business as there are opportunities in many fields. According to your personality and interest choose one.
If you are CREATIVE – choose creative fields like arts, film, Technology, finance, science etc.
If you are a humanitarian person – They can choose non profit organisations, school, charity etc.
If you are a Safe Player – These people acquire already settled business.
If you are Fun loving – These people choose travel, adventure, restaurants, bar etc.
If you have idea or interest or money for setting up a business of your choice
Like any life cycle even start up has to go through three stages namely incubator, Escalator and Angel Investor.
- Incubator – In this stage, ideas are generated. Make sure your idea is something different than what is offered in the market or some specialised or different service. You should also evaluate your idea in terms of money and ask yourself if you would buy this product or put money in this business. After your idea, make a proper plan. Without proper planning even a great idea fails. Make sure you plan how you will produce or manufacture your product, money that will be needed. What will be your marketing strategy. What if idea doesn’t work. Exit policy.
- Escalator – Your idea is evaluated and escalated for further development. a Team is very much important in this stage. There are many companies who would help you in this stage to take the project further and they do charge some fees between – 3 to 5 Million INR (30-50 lakhs). They also help putting your project for Angel investment.
- Funding – There are various ways to get funding for your project. If you have a full proof idea then getting money is not difficult.Bank Loan, Partner, Angel Investor, Private Equity, Venture Capitalist are some of the popular medium to get your project funded.
Do’s and Don’t for your Start Up
- Be self confident
- Accept your mistakes
- Keep trying something new
- Make a good team
- Connect with your customer
- Take expert advise
- Starting business without proper research
- No networking
- No emergency planning
- Being a careless spender
- Not changing with situations
- No division of work
Some important things
Company Registration –
There are three ways to register a company in Indian law – Sole proprietorship , Private limited and public limited. In every form 2 persons are mandatory in the form of partner or director and must be below 50 years of age.
Microsoft Ventures – www.microsoftventures.com
Angel Investment network –
I hope the above article has solved your confusion and provided you much needed information. In my coming articles i will try to elaborate some of the topics in detail.