When it comes of starting business in India, many kinds of things come to mind.
Entrepreneurs have been complaining for a long time that while building a company one has to face bureaucracy and red tape.
Delay in getting approval, difficulties in getting taxes and land and challenges of sourcing goods were common.
But according to a report released by the World Bank, today it has become much easier to start business in India. India has jumped 14 places to 63rd in the Doing Business Index. Whereas three years ago, India was at number 130 on this list.
But how did this happen?
- India has made several reforms on the economic fronts and has been consistently ranked among the top ten countries in the world. This includes improvement in insolvency and bankruptcy reforms, construction permits, tax filing and cross-border trade.
- GST registration is compulsory for every business and now it has become very easy. This is done very easily in the government website.
- Business environment has improved a lot due to the government’s efforts to digitize registration.
- Many of the Indian government’s steps, such as simplification of the building permit process, the convenience of submitting documents via the Internet, will help improve the start-up ecosystem and boost India’s GDP growth rate.
But still there are some difficulties.
- The most difficult and futile thing is that every state has a separate GST process, which increases my expenses. And taxes are too high for any new business.
- There are many more expenses in starting a new business, so if the government cuts the tax for new businessmen or gives some relief in GST, electricity bill, then I think it will encourage the new startup.
- In many parts of the country, it is difficult to get electricity, water and the necessary infrastructure to run a business.
- The application process for government tenders was very slow and he had to visit many government offices to know the status. Because things happened very quickly after the application was approved.
If it is so easy to do business in India then why not invest?
- For India, it is necessary not only to attract foreign investment, but also to generate jobs and improve the purchasing power of the people and to deal with economic sluggishness.
- Foreign investment increases when there is stability and the laws are strictly enforced, the infrastructure needed to start, run the business and have a good tax framework. The Government of India needs all these norms
- there is still a need to improve the infrastructure to start and run the business.
Things to keep in mind while starting buisness in India
In India, the tide of small and medium enterprises is turning again. Today’s young generation of entrepreneurs are bringing new as well as unique businesses to the market.
The government is also encouraging more and more people to start their own startups. However, planning a business is not an easy task as you have to keep in mind a lot of factors like business structure, finance, location, products and much more.
You will have decided which area or which products or services to focus on. But just that is not enough. But it is important that you decide on a suitable business structure for yourself. Decisions like how many responsibilities you can carry and what you should register.
E.g. Do you want to market your company as a private limited company? It has been noted that Angel Investors and Venture Capitalists prefer to invest in a private limited company. A limited liability partnership works well if you have more than one partner.
you have to ask yourself some questions and yes, the honest answer really does matter. How much can you invest? Do you have enough funds for business as well as personal needs?
Do you have enough funds to withstand the risk if your business does not go as planned in the beginning? What about net-worth? Having a real answer to these questions will help you to plan your business and also help you make financial decisions.
You have to focus on effective but reasonably priced resource management. Once you determine the resources (human as well as machine), the next big question will be how you manage them.
Many companies start their business with small-scale ideas but the solid team.
E.g. 1-2 digital marketers, 1 finance manager, 1 HR and everything else according to your need. And then as the business grows and the need arises, they add to it. Some companies start with full sections. It is up to you to decide what is right for you.
It is important to understand the factors that can cause you to fail in your venture. Possible risks should be investigated and not planned in advance, with the attitude that it will happen when it happens. Ask yourself these questions.
If your business faces a certain departmental or market risk, how do you deal with it? Do you or your team have the talent to handle this challenge?
In such cases, who can you turn to for guidance or financial help? Who are your competitors? How can you justify the utility of your product / service?
There is an endless list of such questions, but you must have guessed. Your honest answers will make the picture much clearer.
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