Startups are the lifeblood of innovation; companies like FlipKart, OYO and PayTM have shown what can be achieved when one has a vision and the zeal to put their ideas out there in front of the world. Over the years, India has seen a spurt in the number of startups that have come into existence showcasing their groundbreaking products and making our lives a lot simpler.
Therefore, it’s no wonder that these success stories have given rise to a new breed of entrepreneurs, who have dreams and ambitions of introducing something radical that would disrupt the market. However, there are a few, who might have a vision, but little idea when it comes to the most important aspects of a startup. So how do you move forward? That’s often a confusing question, but you have bumped into the right place as we will lay down the most critical points to consider when it comes to starting your own company and how to get going.
Normally there are 3 classes under which you might want to register your business: Private Limited Company, Limited Liability Partnership and One Person Company. However, this ultimately depends on your long term vision, and goals and each one have separate sets of rules governing them. For example, if you wish to raise funding for your business, a Private Limited Company would be the best way forward.
Read: Partnership vs LLP vs Private Limited Company
Any business, be it an established name or just starting up, will need to pay taxes to local authorities, the state or the central government. Moreover, since taxes vary across states and products, you would need to take that into account.
Therefore, it’s best if you have some idea of accounting as that will help you figure out the taxes more efficiently. However, once the GST or the goods and services tax comes into play (For more on GST Read: “Goods and Services Tax: Its Impact on Businesses and Startups”) you will have less trouble figuring out the taxes, as they should be uniform across the country making tax calculations much faster and efficient.
In case your business has anything to do with coding, designing or research, it’s best to familiarize yourself with the common IP laws in the country. These rules will help you in the case of thefts. However, make sure that you perform timely IP audits and file the valid trademark, patent or copyright claims to prevent anyone from trying to steal your ideas.
Once your business is up and running, you are likely to make extensive use of cloud-based or proprietary software; you would also end up with a lot of customer data, and you would need to protect that data from theft.
Customer data is one of the most important pieces of information for any business and hackers are always on the lookout for getting their hands on this goldmine of information. Having hands-on knowledge of the IT laws can come in handy in protecting that information and building a high repute in the industry.
Once your business is up and running, you are likely to make extensive use of cloud-based or proprietary software;
How you manage your finances will either make or break your business. Ensuring that you keep a check on the inflow and outflow of your funds will go a long way in making sure that they are being used at the right place at the right time helping you avoid cash burn, which is one of the biggest concerns when it comes to startups.
If you prove yourself to be resourceful with your finances, investors would be more likely to invest in your idea as there are higher chances of you generating increased ROI in the long run.