Starting a business in India can sometimes be tricky as many things we can consider before starting a new business. Many business owners look to fulfil their dream of building, creating, and innovating a good business idea without realising that a profitable business will eventually pool in the bountiful once it has secured a place in the market.
Various factors influence the decision to start your own small business. To start thinking about your new business, you may advise others to get positive responses and a few secret formulas.
Starting a new business without investment isn't possible. There are often times when small business owners face a financial crunch. Although there are banks that help companies get capital, several restrictions may restrict small businesses' growth.
In the technologically advanced era, business owners can get flexible loans to emerge as an entrepreneur.
Here are a few platforms to enable financing quickly to small scale enterprises:
One of India's best loan apps is money Tap offers from Rs.3000 to Rs.5,00,000 without any extra interest charge. The customer can pay the exact amount of withdrawing from the MoneyTap balance account and repay the EMI within two months to three years.
It is easy to connect with the bank account securely, giving a customer instant approval for a loan, depending on a person's credit history.
If you need a quick business loan, then a Flexi loan can help to start your business. It provides loans without any collateral for small and medium enterprises in India to grow their business. The platform has used online market technology to meet the financial requirements of small business owners.
NeoGrowth is an RBI registered platform for SME leading platform that offers unsecured loans up to 75lakhs. It has helped more than 13000 small business owners to grow. It provides quick loan disbursement, door-step service for document collection, and repays hassle-free. It includes innovative technology and a digital payment ecosystem along with a flexible repayment option.
Zip loan is an NBFC registered under RBI has a tech-enabled option to provide loans to small businesses. The platform directly addresses the need for small and medium businesses to meet the needs and requirements. It generates ZipScores that are unique for each loan applicant by developing automated underwriting algorithms.
Shubh Loans are a new fintech startup that has tried up with 400 small businesses to strengthen their growth. It offers a financial loan starting from Rs. 25,000 and up to Rs. 5 lakh to fulfil the various needs of small business owners. The smart credit model is different from the traditional model that avails additional funds to customers after completing half of the original tenure.
Coin Tribe is a leading market platform for small Enterprises and individual borrowers to apply for a loan and get it instantly. The marketplace model makes the process easy to originate and credit assessment through CoinTribe before sharing with banks.
Importance of Small Business Owners for economic growth
Small business plays a vital role in the economic growth of the country. As a small business owner, not only are you working hard but also providing others employment. Startup companies are the most dynamic economic organisations in the market, as they provide additional competitiveness to the national economy. Here is how they add value to the country's economy.
Small scale enterprises use intensive labor techniques, hence create job opportunities for job seekers. Thus, it reduces unemployment to a great extent. It provides an opportunity for qualified persons and professionals and people engaged in traditional arts in India. The kind of job creation by new and existing businesses is one of the essential economic development goals.
Wealth creation and sharing
By establishing a business, entrepreneurs invest resources and attract capital from other investors, lenders, and business owners. It helps to mobilise the money and allows people to benefit from the success of entrepreneurs. The process of pooled capital leads to wealth creation and distribution, one of the essential economic development goals.
Balance Regional development
Small enterprises decentralised development as most of the industries are set up in rural areas. It removes disparities through industrialisation in the rural and the backward regions and balances regional development. It promotes employment and reduces congestion, slums, sanitation, and pollution in rural areas. It helps to improve the standard of living in the country.
Improved standard of living
An improved standard of living is another key goal of economic development. Therefore, small enterprises play an essential role in increasing society's quality as they don't merely provide jobs and develop and adopt innovations that enhance the lives of employees, customers, and other stakeholders in the community.
Mobilisation of local resources
It helps to mobilise local resources, entrepreneurial talent, which may otherwise remain idle and un-utilised. It also paves the way for promoting traditional skills and handicrafts. It improves the growth of local public and self-employed professionals in small towns and villages in India.
Build a support network
Starting a solo business is not easy, especially when you have no idea where to start and what to do. The first and essential thing an entrepreneur can do is stay connected with a large business community. That means meeting experienced business people can help you get a better idea about the market and business ideas. It will help a businessman walk away with clarity and an action plan to move forward. Belonging to a big networking group also helps discuss the problems and solutions that are tough to find.
Be a solution provider
Instead of thinking about what to sell and how to sell, think about what product or service can solve. Remember, the startup should fill a space in the market. When a business helps fix a problem, it is easier to think of why you want to start your own business about reasons you want to create your own business. Understanding the motive behind will help you devise your marketing strategy. India is a very price-sensitive market; therefore, it keeps the cost down to as low as possible to succeed in your business.
Calculate the cost involved
After developing a business plan, the next step is to compute all the expenses a business person may incur to launch a business. These expenses incorporate rentals, supply, marketing, advertising, overheads, working capital, and so on.
In case of unexpected business costs, it is smarter to be ready for that possibility of low on money when you need it most. It is better to be prepared and take into personal account expenses. Make a list of the things necessary to start a business; a person needs a loan. Explore all the options before investing the money.
Be ready for the worst
No matter how better you plan for your business, there is a possibility that it may not succeed. Research has shown 50% of new enterprises in India had to shut down within five years. Therefore, it is essential to plan for the worst-case scenario. A new business takes time to settle before a steady income starts to come.
Starting a new business is exciting but make sure the business is registered under the law that governs it. There are many legal formalities to complete before starting a business- registration, license, permits, etc. Know about the law and ensure that there is no violation. Every business in India must follow the rules and regulations laid down in the Companies Act.
Opening a home-based travel agency is the most cost-effective way to start a new business with a few amounts of money. Tying up with the host-agency can benefit small business owners in earning higher commissions and keeping costs low.
If you love cooking and thinking of starting a business soon, then a breakfast joint is a great idea. People leaving for offices, schools, and other workplaces need breakfast in a hurry. Opening a joint breakfast, one can easily earn within a few periods.
Teaching is a noble profession and the most influential business to launch. It doesn't require any capital to start, and a person can take classes at home. The only effect it needs is to put time as a tuition teacher to advertise yourself on social media and other related fields.
Fashion is changing, and people love wearing new styles every day. Big cities have good demand for garment tailors due to the increasing popularity of self-made designs. The business needs only a small space, either a corner of the house or a rented place, and electricity.
These are a few tips that may help you start a business and help the economy as a whole. Do comment below and share your thoughts after reading the article.
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Q. What business should I choose?
A. The best business one can start with low capital in which you are skilled and interested. If you love to bake, you can start a small bakery store or deliver online.
Q. What is a business plan, and why do I need it?
A. A business plan is the set of goals and strategies you want to achieve through your business. It helps you to allocate resources properly, handle any complications, make the right decisions.
Q. How to apply for a loan to start a business?
A. To start a business, you need documents and requirements.
· Bank statement for six to twelve months.
· Proof of business registration certificate, GST filing, drug license, TIN or VAT registration
· Copy of PAN card
· Copy of Aadhar Card
· Copy of the Partnership Deed
Q. What KYC documents business needs?
A. · Proof of identification
· Proof of address
· VAT registration certificate
· Commercial tax registration certificate
· Turnover tax registration certificate
- Small Scale Industries registration certificate / Entrepreneurs Memorandum (Part II)
· Gumasta License