THE GUIDE

ON HOW TO
START A
BUSINESS
BY ANAYA GOEL, HIGH SCHOOL STUDENT
 Content
1. Introduction
2. Idea identfication and assessment
3. Target segment
4. Market sizing
5. Analyzing Environment
6. Understanding Industry
7. Building Competitive advantage
8. Registrations
9. Proprietorship
10. Partnership
11. LLP
12. Company
13. Citations
INTRODUCTION All steps are in
English, therefore if
This guide acts as a step needed, please
All blue text are
translate in any other
by step guide to start a links to resources
language. This guide,
business in India from the that might be
or the creator is not
ground up. helpful to you for
responsible for any
thing that goes wrong
each step, you can
during your project click on each blue,
underlined text to
Along the guide, few be redirected to
helpful resources are the link
given to help for a
better understanding. All resources are
For privacy reasons no cited at the end
contact information is including this
given but if there is any template, these can
confusion please refer be referred to cross-
This guide was to the official check information and
created in reference government site- for copyright
to the StartUp India startupindia.gov.in purposes.
government website
with external help
from a professional
chartered accountant
 Idea To start a business

assessment one needs an idea to

build that start-up on.
This idea needs to be
Objective 01 assessed on different
What problem aspects.
First think of an Idea that
are you trying What drives
solves a problem that
to solve? you to solve
consumers may need
this problem?
solving for.
Objective 02
Ask yourself these Write down your Ex- redBus = Provides
questions after you have idea in one information about bus
a legible idea that sentence ticket options and allows
interests you. describing the seamless booking of
problem it tickets on its platform.
solves. Created by creator after
9 strategies to come up with ideas
personal experience in
How to come up with ideas- Ted Talk trying to book.a bus
Steps to come up with ideas- Article
RESOURCES
 Target segment in simple Target Segment Your target audience should
be specific in terms of
words is your target
audience; who will your geographic, demographic
business cater to? and behavioural traits when
you first start. This is so that
you can cater the best
Who are the people that face the problem defined
QUESTIONS

quality service. This will also

in the last slide?
help in marketing your
What benefits will you provide the customers that
product.
they be willing to pay for the service?
How large is this segment, and how fast is it
growing? Try and mention data (with sources) that Geographic factors (region, city, rural)
supports your claim.
Demographic factors ( age, family size,
Can entering this market segment allow you to
gender, income, occupation, education)
enter other segments in the future?
Behavioural factors (benefits, attitude)

How to identify Target Market

Definition and examples
Animation- Introduction to market segmentation RESOURCES
Article- Example and question-answers
 Size of the sales opportunities available to you when you get into
Market sizing a market. In layman’s language- How broad is the market that
you’re getting into?

RESOURCES
RESOURCES
Deeper explanation- article

Top-down approach and

bottom-up approach

For this part you will have

to research some data
based on your target
Formula to calculate- Number of target users x segment and the market
you’re entering according
purchases expected in a given period = market size or
to the formula given. make
volume sure this data is from
reliable sites.
 Analysing Environment These are the main
factors that will
Demographic factors impact your
When you start a business, you need to Technological factors business. Analyse
analyze wether the opportunity is how they might
substantial or will it last long? Things like Social-cultural factors
impact your
“Can AI take over what you will start?” Economic factors business and how
etc. you might come
Political factors
over the negative
impacts.

RESOURCES
RESOURCES
How to analyse- article

PESTLE analysis- Nike

example

PESTLE & SWOT analysis-

Zara example
Understanding Industry
Before entering a business, it’s important to understand
the industry you’re entering. It is part of analysing the
environment. We will do this using the Porter’s 5 forces
model.
How easy is it to enter this sector? What are some threats
you would face if a new business enters this market?
How much power do buyers hold? Is they switch to
competitors, would the cost for them be lower or higher?
Ex- if a Spotify premium user switches to YouTube
premium, the cost would be lower.
What potential do suppliers hold? Can they easily
increase costs? Do you have suppliers to switch to if this
happens?
Can consumers replace your product with another?
How much competition is there in your industry? What
threats do these competitors hold to your venture?
RESOURCES
RESOURCES
Porter’s 5 forces- explained
How to use the model- article
Explanation with examples
 There are 3 factors that can help
you build competitive advantage-
Building Competiitive advantage
The ability to provide better quality or cheaper goods or
Cost- Lowest price services than other competitors in the market is called
Differentiation- Superior quality competitive advantage. But how do you build competitive
advantage?
Specialization- Tailored to a focused market

RESOURCES
RESOURCES
Strategies
Deep explanation-Article

Competitive advantage-video
 Legalities and registration
For starting a firm you need to register it. At this point you can also appoint a CA.
There are 4 types of businesses in India-
Guidlines
Proprietorship Once your turnover reaches the following, you have to register for
Partnership GST-
LLP If you’re selling goods- 40 lakh rs. turnover
company If you’re providing services- 20 lakh rs. turnover

MSME Registration (Optional)

MSME registration is optional but can provide with a lot of benefits.

https://www.psbloansin59minutes.com/knowledge-hub/top-10-benefits-of-msme-
registration-in-india
 Proprietorship
Steps to open a proprietorship
Step 1: Decide on a name
Step 2: Using PAN and Adhaar card, open a bank
account.
A proprietorship is recommended when your
business is small-scale, like a home-business
or when you don’t plan to take it further. It
can also be applied when you’re not sure
about wether you will be successful. It is
also the easiest process out of all 4.

Benefits Disadvantage

Income tax rates In international

No registeration markets,
needed proprietorships are less
No certification reliable as they are not
required registered with
government authorities.
Partnership
A partnership is recommended when your business is
small-scale, like a home-business or when you don’t plan
to take it further. It is also easier to change structure
Steps to open a Partnership later.
Step 1: Decide on a name
Step 2: Create a partnership deed. How to create a partnership deed.
Step 3: Fill form 1 under partnership act. Partnership act
Step 4: You will get a PAN no. & certificate of
registration Form 1
Step 5: Open a bank account with your PAN no.

Guidlines
You need 2 people to register under a Benefits Disadvantage
partnership.
Easy to form
Income tax Companies act not Reliability from
applicable- easier to suppliers is not
Taxable at 30% operate adequate
No formalities
LLP- Limited Liability Partnership
A LLP is registered and is a formal partnership.

Steps to open a LLP How to create a partnership deed.

Step 1: Decide on a name
Partnership act
Step 2: Create a partnership deed.
Step 3: Fill forms given on the side Form 1- ROC
Step 4: You will get a PAN no. and Incorporation certification Fillip form
Step 5: Open a bank account with your PAN no.

Guidlines
You need 2 people to register under a LLP. Benefits Disadvantage

It follows partnership act.

Easy to form Formal
Income tax Companies act not Higher income tax rates
applicable- easier to High penalty for non-
Taxable at 30% operate compliance with
More reliable legalities
 "When you apply for company registration, it assures that your company

Company becomes a separate entity, and owns an official existence of its own. The
Corporate Affairs Ministry is responsible to handle your company
registration procedure.” (Benefits of Indian Company registration)

Steps to open a company Private limited or OPC.

Step 1: Get DIN no. if Pvt ltd.
Step 2: Fill out name application in RoC
Step 3: Submit company incorporation forms- INC32 , INC33 ,
INC34. and DIR-3 KYC Or if one person company- INC2 , INC3
Step 4: You will get a PAN no. and Incorporation certification
Step 5: Open a bank account with your PAN no.
Benefits Disadvantage
Guidlines
Follows company act. Formal
Higher income tax rates
Income tax High penalty for non-
More reliable
Taxable at 25% for domestic company compliance with
legalities
 Now that your business is
registered, you can start your
journey!
 Citations-
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