How to start a Business by Dhruv Rathee | Being an Entrepreneur in India

Summary

This video guides aspiring entrepreneurs through the process of starting a business in India. It covers essential steps such as identifying your business idea, creating a detailed business plan, choosing the right business entity, and registering with the government. The video also discusses tax registrations, yearly compliances, and offers tips on sustaining a profitable business. With practical advice on minimizing risk, avoiding unnecessary loans, and ensuring long-term success, the video equips viewers with the knowledge to become successful entrepreneurs.

Takeaways

• 😀 Focus on your passion and interests when starting a business, rather than trying to come up with a completely unique idea.
• 😀 Don't worry about inventing something no one has thought of; instead, find existing businesses that align with your interests and learn from them.
• 😀 Create a detailed one-year business plan covering capital requirements, expenses, profits, and potential funding sources.
• 😀 Avoid taking loans from banks during the initial stages. Try to raise capital from personal savings, family, or friends to minimize risk.
• 😀 Register your business under an appropriate entity: Sole Proprietorship for small businesses, OPC for solo ventures, or Pvt Ltd for more formal operations.
• 😀 Understand the government registration processes and be prepared for some bureaucratic challenges, such as bribes or delays.
• 😀 Depending on your business size, choose between Sole Proprietorship, One Person Company (OPC), or Private Limited Company (Pvt Ltd).
• 😀 GST registration is mandatory for businesses with annual turnover exceeding ₹20 lakhs. Additional registrations like Import-Export Code or Professional Tax might be required depending on your business.
• 😀 Ensure yearly compliance by filing income tax returns, keeping accounting records, and managing GST filings. Larger businesses may also need statutory audits and secretarial compliance.
• 😀 Always focus on providing value to your customers. A successful business is one that benefits people and is built on solving problems or improving lives.

Q & A

What are the initial steps to start your own business?

The first step is to clarify your business idea and identify what you are passionate about. Focus on what you like to do and how you can provide value to people. After that, study existing businesses in the same domain to understand the market and business models.

Is it necessary to come up with a completely unique business idea?

No, it is not necessary to come up with an entirely unique idea. Instead, focus on your passion and interests, and look for existing businesses that align with them. Building on established ideas is less risky and more practical.

What should be included in a business plan?

A business plan should include a detailed budget report for the first year, estimating how much capital is needed, the expenses, and the projected profit. It should also outline how to acquire the necessary capital, whether through personal funds, family support, or a bank loan.

What is the best way to minimize risk when starting a business?

To minimize risk, start a business where you don't need to take loans from banks or third parties in the initial stage. It's better to invest your own money or seek financial support from family and friends. Once the business is established, you can consider external funding.

What are the different ways to register a business in India?

There are several ways to register a business: Sole Proprietorship, One Person Company (OPC), Private Limited Company (Pvt Ltd), and Limited Liability Partnership (LLP). Each has different legal and financial implications, so you should choose based on your business size and goals.

What is the simplest form of business registration?

The simplest form of business registration is Sole Proprietorship, where the business owner is personally liable for the profits and losses. It is easy to set up, with minimal government regulations and costs.

What are the benefits of registering a business as a Private Limited Company?

Registering as a Private Limited Company offers limited liability, meaning shareholders are not personally liable for the company's debts. It increases credibility, makes it easier to secure loans and funding, and builds trust with customers and investors.

What are the tax registrations required for a business?

Key tax registrations include GST registration (if turnover exceeds 20 lakhs), Import-Export Code registration (if dealing with international trade), Professional Tax (in certain states), Employee State Insurance (if employing more than 10 people), and Provident Fund (if employing more than 20 people).

What are the yearly mandatory compliances for a business?

Yearly mandatory compliances include filing Income Tax Returns, maintaining proper accounting records, filing GST returns (if registered), conducting secretarial audits (for OPC, LLP, or Pvt Ltd), and statutory audits (for companies with turnover above 40 lakhs).

What personal tips are given for success in business?

Focus on providing value to customers, enjoy the work you do, and ensure your business is sustainable. Avoid businesses that cause harm or destruction, as these will not gain respect or lasting success.