What is a startup?
You have envisaged a business idea and visualized its potential, but you have stumbled up on how to proceed forward from there. You are running some loose thoughts about a business venture and you want to give them a proper shape. You have prepared a business plan and you want to make a beginning. Or are you looking for inspirational stories of recent business successes. Then read the following on “What is a Startup?” To know some latest in the business startup triumphs, step by step approach to setting up a new business and some places where you can source for the products or services for a business start up if you do not have planned one.
Latest in the startup business achievements
Once in a while we keep hearing about Young Turk s making big in the business arena. They are just like you and me but thought differently and went on to accomplish what they perceived. Let us look at some of the recent budding entrepreneurs who achieved the unbelievable.
It was all started with a very small idea of setting up online bookstore in the year 2007 and Rupees four hundred thousand and today FLIPKART incorporated by Sachin and Binny Bansals churned out Rupees seven hundred million business through e-Commerce in the year 2011 – 2012 and targets itself US $ One billion by 2015. The story is no different either with Kashyap Dalal and Navneet Rai of inkfruit.com who started off with Rs 250,000 and now with business revenue of Rs over five crores.
A small, out of the box idea of catering to youngsters’ imaginative clothing desire resulted in setting up a business enterprise of Tee shirt making with funky designs and eye catching colour combinations. The innovation has come from sourcing the designs from the public through competitions made inkfruit an entirely different entity among the competitors.
Julie Uhrman of OUYA took inspiration from the Kickstarter success to bring about a low cost universal gaming console based on Android platform to get affordable games to home television built on standard interchangeable components. Again an innovative idea of involving the users and developers brought the success. Originally slated to raise US $ 950,000 has already raked up $ 5.7 million and still going. OUYA platform is set to be released in March 2013.
Starting a Business
A business venture is typically an enterprise broadly comprising of Industry, either product or service and a commerce platform where the product or service is marketed and sold to prospective customers. An enthusiastic entrepreneur envisages business opportunity, prepares a business plan and initiates the new business enterprise as followed.
The process starts with making a business plan which is key to a good startup. Typically a business plan consists of description of details of the exact business planned, business organization required for managing the business, market analysis and plans on how to market the product or service, appropriate business procedures for the operation of business, then understanding the product or service and production of the same, financial requirements of the business and finally the request for funding.
Seeking prior counseling and training is a great support especially for startups. There are several online courses either free or paid available for startup seekers in the areas starting from writing a business plan to managing, seeking finance and contracting.
The next step is to decide the product choice and select the location. There are several support systems available to choose the product or service for a startup in the form of complete package. Depending on the need, you should select a location keeping in the mind the competition, manpower and technical skills availability, proximity to the suppliers and buyers last but not the least the safety compliance.
Your next target shall be financing the business and setting up of infrastructure. Several funding agencies usually tie up with innovators especially from the organized set up to fund the business. Once the funds are sanctioned it is imperative for you to finalize the infrastructure requirements.
Having made the product choice, location and infrastructure you should decide on the legal structure of your business on whether it should be sole proprietorship, private limited company or non-profit societal oriented and register your company with the local government.
Once you register your business it is very important to comply with taxation requirements by registering for central or state taxes, tax identification number (TIN), registration for service tax, employee insurance like ESI and employee provident fund (EPF).
Once you complete the statutory formalities in respect of taxation and employer responsibilities the local state government will give you necessary licenses and permits on your application.
With all permissions and infrastructure in place you should source raw materials and human resources and you would start producing the product or services and establishing yourself in the business map.