30.08.2024
How to Start a Business in 2024: A Step-by-Step Guide
Thinking of starting your own business in 2024? This guide walks you through every step, from choosing the right type of business to launching. Simple, practical advice to help you succeed this year.
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Why Is 2024 a Great Year to Start a Business?
So, you’re thinking about starting a business in 2024? Brilliant! Entering the world of entrepreneurship this year is highly recommended, given the economic recovery from past downturns brought on by the pandemic, the rise of online businesses, and the technological advancements and artificial intelligence that are making it easier than ever to connect with customers. It’s a fantastic time to tap into niche markets and bring your innovative ideas to life.
But where do you begin? Starting your own business will be a tedious process, but with the right guidance, it’s entirely possible. This guide is here to walk you through every step of the process, from brainstorming ideas to launching your online presence.
But where do you begin? Starting your own business will be a tedious process, but with the right guidance, it’s entirely possible. This guide is here to walk you through every step of the process, from brainstorming ideas to launching your online presence.
Step 1: Choosing the Right Business Idea
Starting your own business kicks off with finding the right idea. It’s all about aligning your passions, skills, and what the market actually needs. You should be asking yourself, "What kind of business should I start?" Whether you’re leaning towards a traditional setup or exploring online options, your idea should match your interests and what people are looking for.
Some in-demand businesses right now include dropshipping, digital marketing agencies, and cleaning services. These areas are seeing significant growth as they meet the evolving needs of consumers. For more inspiration, check out our blog on top startup business ideas for 2024.
Some in-demand businesses right now include dropshipping, digital marketing agencies, and cleaning services. These areas are seeing significant growth as they meet the evolving needs of consumers. For more inspiration, check out our blog on top startup business ideas for 2024.
Key Considerations:
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- Market Demand
Research is your best friend here. According to the U.S. Small Business Administration (SBA), market research helps you get a grip on consumer behaviour and economic trends, which is vital for refining your business idea. Tools like Google Trends and Statista are great for spotting current market trends and understanding what people are interested in. -
- Skills and Experience
Your skills and experience play a crucial role. In fact, a study by the Global Entrepreneurship Monitor found that over half of entrepreneurs believe their skills are key to their success. Continuous learning is just as important, with 94% of business leaders saying that upskilling is crucial for the future. -
- Scalability
Think about the growth potential of your idea. A report by the Kauffman Foundation highlights that scalable startups are more likely to see significant growth, contributing nearly half of new job creation. Plus, investors are more inclined to back businesses with scalable models. According to FasterCapital, scalability is a critical factor in the decision-making process for venture capitalists. They look for businesses that can grow rapidly and efficiently, offering the potential for exponential growth and significant returns on investment.
Step 2: Conducting Market Research
Before you fully commit to your business idea, it’s important to carry out thorough market research. This step is all about validating your idea by getting a deep understanding of your target audience, competitors, and the overall market conditions. Doing this groundwork will help you fine-tune your business model and strategy.
Steps to Conduct Market Research:
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- Identify Your Target Audience
Knowing who your customers are is essential. According to a report by Qualtrics, 23% of organisations lack a clear market research strategy, which can make it difficult to understand customer needs and preferences. -
- Analyse Competitors
Studying your competitors can give you a real edge. Competitive analysis helps businesses identify gaps in the market and analyse competitor strengths and weaknesses. Crunchbase is an online resource that offers a large dataset and deep insights into competitive analysis. -
- Assess Market Conditions
You need to keep an eye on the current state of the market. The market research industry has seen a 7.29% compound annual growth rate, from $76.37 billion in 2021 to an expected $108.57 billion in 2026, reflecting the rising demand for market insights.
After conducting thorough market research, you’ll have a clearer understanding of your target audience, competitors, and market conditions. With this valuable information in hand, the next step is to develop your business plan.
Step 3: Developing a Business Plan
A business plan lays out your business objectives, strategies, and financial projections, helping you stay focused and organised. This plan is also crucial when seeking financing from investors or banks, as it demonstrates your business’s potential and viability.
There’s no standard format for a business plan, but certain components are commonly included to ensure it’s comprehensive and effective. Here are the key elements you should consider:
There’s no standard format for a business plan, but certain components are commonly included to ensure it’s comprehensive and effective. Here are the key elements you should consider:
Components of a Business Plan:
Executive Summary
This is a brief overview of your business and its goals, providing a snapshot of what your business is all about.
Business Description
Here, you’ll dive into the details of your business, including its mission and vision. This section explains what your business does and what it aims to achieve.
Market Analysis
In this section, you’ll provide insights into your target market and the competitive landscape. Understanding your market and competition is key to positioning your business effectively.
Organisation and Management
Outline the structure of your business and provide information about the management team. This helps clarify who’s in charge and how the business is organised.
Product Line or Services
Describe the products or services you plan to offer. This section explains what you’re selling and why it’s valuable to your customers.
Marketing and Sales Strategy
Detail how you plan to attract and retain customers. Your strategy should cover how you’ll market your products or services and the sales tactics you’ll use.
Financial Projections
Include revenue forecasts, budget details, and any funding requirements. This section is particularly important for investors, as it shows the financial health and potential growth of your business.
Step 4: Understanding the Legal Requirements
It is important to emphasize that navigating the legal landscape is a crucial aspect of launching a business, which you may need to go over in detail. From choosing the right business structure to obtaining the necessary permits and licences, ensuring that your business complies with all legal requirements is essential to avoid future issues.
Key Legal Considerations:
- Business StructureChoosing the right business structure is crucial as it impacts your personal liability, taxes, and ability to raise funds. The common structures include:
- Sole Proprietorship: Simple to set up, but it offers no personal liability protection.
- Partnership: Involves two or more people sharing profits, losses, and liabilities.
- Limited Liability Company (LLC): Provides liability protection without the complexity of a corporation.
- Corporation: Offers the most protection from personal liability but is more complex and costly to set up.
- Permits and LicencesDepending on your business type and location, you may need various permits and licences to operate legally. These can include:
- Local Business Licences: Required by most cities or counties.
- Health and Safety Permits: Necessary for businesses like restaurants or salons.
- Industry-Specific Permits: Such as liquor licences or construction permits.
- Tax ObligationsUnderstanding your tax responsibilities is essential. Key steps include:
- Registering for an Employer Identification Number (EIN): Required for most businesses, especially if you have employees.
- Understanding State and Local Taxes: These can vary significantly depending on your location.
- Sales Tax Permits: Necessary if you sell taxable goods or services.
Now that you are familiar with the fundamentals of business legalisation, let us get into the specifics.
Essential Legal Documents for Starting a Business in India
1.Memorandum of Association (MoA): Defines the company's structure, aims, and scope, protecting shareholders' rights.
2.Articles of Association (AOA): Outlines the company's internal governance and stakeholders' rights and responsibilities.
3.Director Identification Number (DIN): A mandatory unique ID for company directors, required for legal compliance.
4.Shareholder Agreement: Details the rights, obligations, and guidelines for shareholders, ensuring smooth decision-making.
5.Founders’ Agreement: Establishes the roles, ownership structure, and dispute resolution methods among company founders.
6.Certificate of Incorporation: Confirms the company's legal establishment, enabling it to operate as a separate entity.
7.Trademark Registration: Protects the company’s unique name, design, or symbol from unauthorised use.
8.No Objection Certificate (NOC): Ensures that there are no legal or contractual barriers to the business plan.
9.Company PAN Card: A unique number required for tax-related activities, promoting transparency and compliance.
10.TIN & GSTIN: Unique identifiers for tax filing and compliance under India's tax regime.
11.Non-Disclosure Agreement (NDA): Protects confidential information shared between parties during business operations.
12.Employee Offer Letter: Legally binding contracts outlining employment terms and conditions.
13.Incorporation Documents for Foreign Nationals: Additional documents required for foreign nationals to start a business in India.
14.Privacy Policy and Terms of Use: These documents ensure consumer trust and compliance with data protection laws.
While it may seem like a lot to handle, there’s no need to feel overwhelmed. You just need to go over the legal requirements step by step, and you'll ensure your business runs smoothly and stays compliant.
Step 5: Securing Financing
One of the most common questions is, "Can you start a business with limited money?" While it’s challenging, it’s not impossible. To give you some ideas, here are some effective ways to finance your business.
Funding Options:
- Personal SavingsThis is often the first source of funding for many entrepreneurs. Using your personal savings gives you full control over your business without the need to repay loans or give up equity.
- Bank LoansTraditional bank loans are a common way to finance a business. They typically require a solid business plan and good credit history. Interest rates and terms can vary, so it’s important to shop around for the best deal.
- Crowdfunding
- Platforms like Kickstarter and Indiegogo allow you to raise small amounts of money from a large number of people. Crowdfunding can also help validate your business idea and build a customer base before you even launch.
- Venture CapitalVenture capitalists provide funding in exchange for equity in your business. This option is great if you need a large amount of capital and are willing to share ownership. However, it often involves giving up some control over business decisions.
- Friends and FamilyInterestingly, 18% of small business owners receive financing from friends and family. This can be a valuable source of funding, but it’s essential to have clear agreements in place to avoid potential conflicts.
Step 6: Building Your Online Presence
Building an online presence is one of the most challenging parts of starting a business, so it’s always important to focus on this to thrive in the competition. To help you have a strong digital footprint, here are the key elements to consider:
Key Elements for Building Your Online Presence:
- Website Development92% of small business owners believe that a website is the most effective digital marketing strategy, making it a key component of your business plan. So, it’s highly advised to build a user-friendly and responsive website for your business. No need to worry if you don’t know how to build a website. You can visit our step-by-step guide on how to make a website with Wordpress.
- SEO (Search Engine Optimisation)Optimise your website content for search engines to increase visibility. Effective SEO can help your business appear in search results, driving more traffic to your site.
- Email MarketingBuild and maintain an email list to engage with your audience. Email marketing is a powerful tool for nurturing customer relationships and driving repeat business.
- Social MediaEstablish your presence on platforms like Facebook, Twitter, LinkedIn, and Instagram. Actively post content, engage with your audience, and consider using features like livestreaming to connect in real time.
- Content CreationRegularly produce valuable content such as blogs, videos, and infographics. High-quality content not only engages your audience but also boosts your SEO efforts.
- Online AdvertisingUse online ads to reach a broader audience. Platforms like Google Ads and social media advertising can help you target specific demographics and increase your brand’s visibility.
Step 7: Launching Your Business
Once all the groundwork is laid, it’s time to launch your business. This is the moment where all your planning and preparation come together. A strong launch strategy is crucial, as it can set the tone for your business's future success. Having a clear plan will help ensure your launch is effective and memorable.
Launch Strategies:
Plan a launch event to create buzz. This can be a physical event or a virtual one, depending on your business model and target audience. A well-planned event can leave a lasting impression and encourage word-of-mouth marketing.
Soft Launch
A soft launch involves a limited release of your product or service to test the waters and gather initial feedback. This approach allows you to make necessary adjustments before the full launch, ensuring that everything runs smoothly when you go live.
Grand Opening
A grand opening is a big event designed to attract attention and generate buzz. This can include special promotions, media coverage, and community involvement to create a memorable first impression. A well-executed grand opening can significantly boost your visibility and customer base right from the start.
Promotional Campaign
A promotional campaign is all about spreading the word about your business. This can include social media marketing, email campaigns, influencer partnerships, and more. Effective marketing efforts can drive traffic to your business and create excitement around your brand.
Additional Tips for a Successful Launch:
Teaser Campaign: Build excitement before the launch by dropping hints about your new business or product. This can be done through social media posts, email newsletters, or even a countdown on your website.
Influencer Marketing: Partner with influencers who can help spread the word about your launch to a broader audience. Influencer endorsements can lend credibility and attract more customers.
Pre-Orders and Waiting Lists: Allow customers to pre-order your product or sign up for a waiting list. This not only builds anticipation but also gives you an idea of the initial demand.
Customer Feedback: Use the soft launch phase to gather feedback from early users and make necessary adjustments. This can help ensure a smoother full launch and a better customer experience.
If you’re still worried about finally launching your business, remember that around 65% of small businesses are profitable. So take a deep breath, follow your plan, and step confidently into this exciting new chapter.
Setting Your Business Up for Success with Borzo
Selecting the appropriate partners early on in your entrepreneurial endeavors can have a big impact on how successful your business is. When it comes to delivering your products efficiently and reliably, Borzo is here to support you. As a leading courier service provider, Borzo understands the critical role that logistics plays in customer satisfaction and overall business growth.
Why Choose Borzo for Your Start-up Business?
- Reliable Delivery ServicesIn the early stages of your business, building a reputation for reliability is crucial. With Borzo, you can ensure that your products reach your customers on time, every time. Our fast and dependable delivery services help you meet your customers' expectations and maintain their trust.
- Scalable SolutionsAs your business grows, so do your logistical needs. Borzo offers scalable delivery solutions that can adapt to your business’s changing demands. Whether you’re just starting with a few orders or expanding to serve a larger customer base, Borzo’s flexible services can grow with you.
- Cost-Effective OptionsManaging expenses is essential for any new business. Borzo provides cost-effective delivery options that allow you to keep your overheads low while still providing top-notch service to your customers. With competitive rates and various service levels, you can choose the best options that fit your budget.
- Enhanced Customer ExperienceCustomer satisfaction is key to business success, and delivery is a major part of that experience. Borzo helps you offer a seamless delivery experience, which can enhance customer loyalty and encourage repeat business. A reliable courier partner like Borzo ensures that your customers have a positive experience from purchase to delivery.
- Easy IntegrationStarting a business involves juggling many tasks, so having a delivery partner that’s easy to integrate into your operations is vital. Borzo’s user-friendly platform allows you to manage and track deliveries with ease, so you can focus on growing your business while we handle the logistics.
To help you get started, use the promo code BORZOSAVE20 to enjoy a discount on your next order above ₹500. Partner with Borzo to give your business the reliable logistics support it needs to thrive from the start.
Frequently Asked Questions for Small Business Start-Ups
What Makes a Recognised Start-Up in India?
In India, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, recognises a start-up based on the following criteria, according to AcuityLaw:
1.Age of the Business: The business must be less than 10 years old from the date of its incorporation or registration, whether as a private limited company, partnership firm, or limited liability partnership.
2.Turnover: The company’s turnover must not have exceeded ₹1 billion in any of the financial years since its inception.
3.Innovation and Development: The business should be focused on innovating, developing, or improving products, processes, or services.
How Long Does It Typically Take to Obtain All the Required Documents?
According to Razorpay, the time required to obtain the necessary documents for your business can vary based on the type of document and processing speed. Here’s a general timeline:
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- Business Visa: Usually takes around 10 to 15 days.
- E-Visa: Typically takes between 3 to 5 days.
- Additional Registrations: Documents such as PAN, GST, and RoC registrations generally take around 10 to 30 days to process.
Keep in mind that these timelines can vary depending on the specific requirements and any potential delays.
Common Legal Pitfalls Startups in India Should Avoid
Starting a business in India requires caution, as there are a few legal missteps that can trip you up if you're not careful. According to Burgeon Law, here are some common pitfalls to watch out for:
1.Intellectual Property Infringement
Make sure you’re not stepping on anyone’s toes by using patented or trademarked ideas. Also, don’t forget to protect your own creations by securing the right intellectual property registrations.
2.Improper Business Structuring
Choose the right business structure—whether it’s a sole proprietorship, partnership, or company. Getting this wrong can lead to legal headaches and financial issues down the road.
3.Contractual Disputes
Clear and detailed contracts are your best friend. They help avoid disputes with clients, suppliers, and partners. Always make sure your contracts are legally sound and get them checked by a professional.
4.Employment Law Compliance
Follow the rules regarding wages, working conditions, and employee rights. Keeping on top of employment laws helps you avoid legal troubles and fines.
5.Data Privacy and Security
Protecting your customers' data is crucial. Implement strong security measures and make sure you’re following data protection regulations to prevent data breaches.
6.Regulatory Compliance
Stay on top of industry regulations and ensure your business meets all legal requirements. This helps you avoid penalties and keeps your operations running smoothly.
7.Investor Agreements
When dealing with investors, be clear about the terms of your agreements. Outline everything from equity distribution to decision-making powers to avoid future conflicts.
8.Failure to Protect Confidential Information
Keep your business’s sensitive information secure. Use non-disclosure agreements (NDAs) to protect your trade secrets and confidential data.
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