Starting a business is no small task; however, with a good idea, enough determination, and the right paperwork, anything is possible.

In fact, in India, the number of small businesses—defined as businesses with fewer than 250 employees—is over three lakhs, making up 0.5 per cent of all businesses, and  the number of micro-businesses—defined as businesses with fewer than 10 employees—is over 600 lakh, making up 99 per cent of all enterprises [1]. That is a stunningly significant portion of the country’s economy, highlighting how important it is for anyone to be able to go through the process of launching their own business.

Despite the hard work that goes into the process, becoming a business owner comes with a series of unique benefits. Business owners have autonomy over the way they conduct business, flexibility in their scheduling, and the freedom to create the work environment and culture that best suits them.

Explore the steps toward starting your own business, from coming up with the initial idea to preparing for launch.

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Entrepreneurship

Turn Your Idea into a Funded Business. Develop, launch, fund and grow your own business

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1. Choose your business idea.

Whether you are aiming to launch a disruptive global start-up or a cosy local establishment, every business starts with an idea. Knowing what you plan to offer and who you aim to serve is the first step toward starting your business.

2. Conduct market research.

Market research is an information-gathering process that is used to determine the likely success of your business. It incorporates data regarding economic trends, as well as consumer behaviour and identity, in an effort to forecast whether your business idea has a place in the current market—or if you should make some adjustments to your offerings.

Market research can provide you with insights into what other similar businesses are doing, how they’re performing, and how you might be able to better serve your target clientele. Ultimately, it can offer data that supports the need for your business and adds quantitative value to your idea—both of which will be important as you write your business plan and aim to secure funding.

You can conduct market research independently by doing things like looking into local competitors and surveying your target clientele, or you can hire a market research analyst to conduct a more thorough investigation.

3. Write a business plan.

Your business plan is a guiding document for how you’ll build, run, and grow your business.

As you write your plan, you’ll be able to envision what your business will become, workshop navigating potential roadblocks, and imagine what success will look like for you.

This document will help you and your potential partners, investors, or funders, so you can structure it however you see fit. Many business owners will create a traditional business plan, which is a highly detailed, multi-page document. Traditional business plans outline information such as the following:

• Executive summary

• Company overview

• Business goals

• Market research

• Internal organisation chart

• Services and product offerings

• Marketing and sales plan

• Funding requirements

• Financial projections

• Appendix

You can also opt to write a lean start-up business plan, which is a one-page document presenting a high-level overview of the information a traditional business plan would describe in detail. This formatting may be useful when you want to quickly present your business idea, although as you generate interest, potential partners or financial backers may ask for a more thorough presentation. 

4. Secure funding for your business.

While creating your business plan, you’ll get a strong idea of the amount of money, or overhead costs, you’ll realistically need in order to run your business. The next step would be to secure that necessary funding.

You may consider funding your business in a number of ways. Some common options include the following:

• Personal savings: Using your personal savings to fund your business, also called “bootstrapping,” is essentially investing in yourself. If you have a solid amount of savings built up, using your own money to start your business could allow you to maintain total control. However, it’s worth noting that self-funding also comes with the risk of your investment not panning out according to plan.

• Business loans: A business loan is a set amount of money given to you by a bank that you will eventually pay back. Business loans allow you to retain control over your business; however, you pay back the loan on a set schedule and with interest.

• Investors: Investors are people who will provide you with seed capital to start your business in exchange for some kind of return, often in the form of equity or a role in your company. Unlike a loan, investors typically do not expect direct payback for their investment, and you may lose some control over your business depending on the investor’s desired level of involvement.

• Grants: Business grants are sums of money given to businesses with no expectation of a return. Many grants list a series of qualifications, and if your business meets those qualifiers, you can apply for the grant. Not everyone who applies for a grant will get it, but if you do, it’s essentially free money for your business. Grants can come from the government, corporations, associations, or a number of other types of organisations. You can start your search for grants on the Startup Schemes website by the Indian government, or with an internet search for “small business grants.”

• Crowdfunding: Crowdfunding is a set of small donations from family, friends, and other people willing to contribute to the growth of your business. It’s a less traditional funding model that allows you to set the terms for repayment, if any, while retaining total control over your business. Some popular crowdfunding sites include Kickstarter, Fundable, IndieGoGo, or Ketto.

5. Choose your business structure.

A business structure is the first step in building your company’s legal set-up. In choosing your business structure, you determine how you’ll file taxes and your legal protections and liabilities.

Although several types of business structures exist, you commonly encounter the following four types:

• Sole proprietorship

• General partnership

• Companies

• Limited liability partnership (LLP)

Sole proprietorships

A sole proprietorship is a simple business structure in which one person is responsible for all daily operations. This structure does not create a separate business entity, meaning business assets and liabilities fall under your personal assets and liabilities.

Since this structure links business and personal assets, sole proprietorships are best if you are launching a low-risk business and will not be seeking outside funding.

General partnerships

A partnership is similar to a sole proprietorship but used when two or more business owners share responsibilities. In a partnership, the business assets and liabilities are part of the partners’ personal assets and liabilities.

Companies

A company creates a separate business entity from its owners. These are a bit more complex to establish but offer more legal distance between a business and its owners’ assets and liabilities. Additionally, the operation of a company is governed by more laws.

Many types of companies exist—including private limited companies, public limited companies, and nonprofits—and each type has its own legal requirements. Many people who start a company will consult a legal advisor to guide them through the process of establishing and running their business.

Limited liability partnerships (LLPs)

An LLP exists somewhere in the middle of a sole proprietorship/partnership and a corporation. This structure offers some protection of the owner’s assets and liabilities, while still limiting tax and legal requirements.

Still, people who start an LLP often hire legal support as they work through the set-up process to ensure compliance.

6. Register your business.

Registering your business is the step that makes it a real, legal entity. Registration requirements and processes will vary depending on where you’re located, as you’ll likely need to comply with a series of national, state, and local processes.

To register your business, you will have to make an application with the Ministry of Corporate Affairs. Through this organisation, you can register your business name and apply for a Director Identification Number if you want to be the director of your business. You can decipher the various registration needs for your business using guidance from the MCA website.

Registering your business will be important as you seek to open up bank accounts, apply for business licences and permits, and legally begin operations.

7. Apply for licenses and permits.

In order to launch certain businesses, you’ll need to acquire central and state licenses and permits.

Some businesses may require registration with the central government of India, such as the Food Safety and Standard Authority of India (FSSAI) license for starting any food-related business or the Import Export Code for businesses involved in the import and export of goods and services Check the government website to learn more about the necessary licenses and permits for your business.

More business licenses are provided at the state level, for example, if you need to set up a store or factory for your business or start an online business. Check your state’s website to learn more about the types of licenses and permits your business may need.

8. Open a bank account.

Opening a bank account for your business that is separate from your personal account can help keep your finances organised. With some accounts, you may also have the option to open a line of credit for your business, and if you plan to hire employees, you can authorise them to access the accounts, should they deal with your business finances.

Along with your business bank account, you may want to open a business credit card for larger purchases and regular business expenses.

9. Get business insurance.

Business insurance will protect you and your business in the event of any accidental or unexpected incidents, such as theft and damages. The type of protection you may require will depend largely on the type of business you are running and how you expect to run it.

In general, you’ll likely want to consult an insurance agent to help you assess risk, determine the type of insurance that would be most appropriate for your business, and find policies that will fit your budget and coverage needs.

Some common types of insurance for small businesses include:

• Commercial vehicle insurance

• General liability insurance

• Professional liability insurance

• Group or employee health insurance

• Commercial property insurance

• Workers’ compensation insurance

• Burglary and money insurance

10. Prepare for launch.

With your preliminary logistics settled, you are well on your way to starting your business. For additional insight into the process of launching your own business, check out the Entrepreneurship Specialisation from the Wharton School of Business. Through five courses, you can explore developing your idea, launching your business, applying proven growth strategies, and more.

specialization

Entrepreneurship

Turn Your Idea into a Funded Business. Develop, launch, fund and grow your own business

4.8

(5,121 ratings)

72,620 already enrolled

Beginner level

Learn More

Average time: 1 month(s)

Learn at your own pace

Skills you'll build:

Growth Strategies, Exit Strategy, Finance, Entrepreneurship, Venture Capital, Sales Presentation, Elevator Pitch, Strategic Management, Brand, Choosing Advisors, Brand Management, Discovery-Driven Planning, Planning, Marketing

As you approach your launch, you may find it helpful to organise your marketing efforts and start getting the word out about your business. Consider launching a website, advertising your services at local events, or turning to social media. You can learn and practise social media marketing skills with the Meta Social Media Marketing Professional Certificate programme.

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Meta Social Media Marketing

Launch your career as a Social Media Marketer. Build job-ready skills – and must-have AI skills – for an in-demand career. Earn a credential from Meta 5 months or less. No degree or prior experience required.

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Or, if you want to build additional skills in other areas of business, check out the range of other business professional certificate programmes available on Coursera. You can sharpen your bookkeeping skills with Intuit, practise project management with Google, or gain foundational sales operations knowledge with Salesforce.

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Google Project Management:

Get on the fast track to a career in project management. In this certificate program, you’ll learn in-demand skills, and get AI training from Google experts. Learn at your own pace, no degree or experience required.

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Salesforce Sales Operations

Launch Your Career in Salesforce. Learn the foundational skills in Salesforce needed to start a new career.

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Sales, Sales Operations, Salesforce, CRM, Salesforce Lightning, Opportunity Management, Lead Management, Reports and Dashboards, Customer Success, Salesforce Sales Cloud