Last Updated on March 3, 2026
Entrepreneurship is on the rise, and many aspire to start and run their own businesses. India has become a hub of opportunities, making this a prime time for new ventures. Closely observing the market reveals a shift from traditional income-earning methods to more creative ones. Every opportunity can lead to a new business idea. For example, owning a van enables starting a food truck business, given the widespread demand for doorstep food delivery. Similarly, a workspace can be converted into a café, providing a space for people to connect over coffee.
Have an idea and a game plan? Thinking of starting a business? Well, is that enough? Definitely not. You need to add a few other things to this mix to run a profitable business in India. One must bear in mind before going in with the idea for their start-up. This blog will help you jot down a step-by-step procedure to start a business. Of course, let us stay positive that it will be a profitable business.
Why do many start-ups fail? Not for lack of plans, but poor execution. That’s where expert guidance helps. Our team supports you through setup and smooth daily operations. Let’s get started.
This blog is divided into three parts:
- Ideate
- Execute
- Run the business
1. Ideate
Generating and selecting business ideas is the first step. Take time to reflect and note your ideas. For each, conduct market research to understand demand and supply. Thorough research leads to informed decisions and smoother execution.
The following points will help you conduct the market research thoroughly:
- What is the current market trend?
- What are the pros and cons of starting the business? Do a SWOT ANALYSIS for your ideas.
- Is this product in demand? If yes, where do we get the raw materials from?
- Is there any supplier nearby, or do we need to import the product?
- Can I get the compliance sorted out easily?
- Are there any competitors for the business?
- Where do I start the business?
- Should I buy the property or rent a place?
- What would be the set-up cost?
- Can I make profits?
- Do I need to raise funds, or is my savings enough?
- Will anybody be interested in investing in the business? If yes, how would you attract the investors?
- What would my USP be?
2. Execute
This is the most crucial part of setting up the business. Most businesses fail because they don’t lay the right foundation. The equation is very simple:
Have a plan + not execute it properly = loss and failure.
But,
Have a plan + execute it properly = earning tentative profits.
The next step is to determine the target for your execution.
1. Identify your business type: food, tech, jewellery, or another – whether homemade, machine-made, traditional, or innovative, choose the niche first—everything else follows.
2. Identify the Business Formation – whether it is a partnership, sole proprietorship, LLP, company, or joint venture.
3. Draft all necessary agreements – this is where many businesses fail. They don’t give agreements the importance they deserve in the first place, and then later regret it. There are various necessary agreements one must enter into to avoid legal complexities. Here is a basic list of agreements one has to enter into:
- NDA
- Data privacy
- Employment agreement
- Purchase and sales agreement
- Franchise agreement
- Partnership deed
- Service agreements
- Consultancy agreement
- Master-service agreement
- Statement of work
- Memorandum of understanding
- Founders’ agreement
To know more about the start-up agreements, consult our expert team.
4. Understand Your Finances – very, very important. Every business demands investment, but the quantum of investment differs from business to business. You must determine how the funding will work before actually starting the business. Predetermination of the type of source and mode of funding, like retained earnings, savings, loans, or securing investment from others, is most important.
5. Legal consideration: If you want to run a successful business, go legal. Understand all legal complexities and adhere to them. To avoid future legal complications, it is essential to consider the following:
- Taxation laws
- Labor laws
- Intellectual Property Rights
- Business licenses/ Permits
- Registration/ Incorporation compliances.
The table below will help you understand the legal considerations in a better way:
| TAXATION | LABOUR LAWS | IPR | BUSINESS LICENSES OR
PERMITS |
INCORPORATION COMPLIANCES |
| Filing Income tax returns | Payment of wages | Trademark registration | Fire safety licenses | Registration of the company with the ROC and compliance under the Companies Act, 2013 |
| Filing GST returns | Payment of bonus and gratuity | Patents registration | Signage licenses | If shops, registration under the Shops and establishment |
| Submitting quarterly reports | Working hours | Copyrights – website, blogs, articles, artistic works, etc | Trade certificate/ licenses | MSME/ Udyog Aadhar |
| Attend show- cause hearings (if any) | Leave policy | Design registration | Import-export code | |
| Professional tax registration | Maternity benefits | Geographical indication registration (in case of handicraft/home-made products) | LiftLicenses | |
| EPF, TDS, etc. | ESI, CLRA, and POSH policy | Any other specific license based on the type of business |
6. Hire the right employees for the job: The right team helps you reach goals faster. A goal-oriented, dedicated, and resilient team forms a strong foundation. Hiring wisely is key to long-term success.
3. Run the Business
Having an idea and executing it is not enough; running the business is necessary for smooth operation. Keeping the business active and engaged is essential for making a profit. Several daily tasks are required to maintain momentum and growth.
- Keep your website updated: anyone looking to buy your products or services will likely search on Google. If your website is up to date and SEO-optimised, your brand is more likely to be recognised.
- Keep your marketing and branding strategies effective: Digital marketing, social media, content marketing, influencer collaborations, and traditional advertising are essential to making your business stand out in a competitive market.
- Scaling and Sustainability: As your business grows, it needs to expand and diversify to maintain top-notch performance. The business’s scalability and sustainability are highly important and cannot be neglected. One has to keep in mind that sustainability practices must align with evolving consumer preferences and contribute to environmental and social well-being.
- Keep updating your goals: Your mission and vision have to be constant, but your goals – say daily goals, weekly goals, monthly goals will keep changing, but yes, that has to be in alignment with the ultimate goal of the business. When you update your goals, your business keeps evolving, and that’s how your chances of making profits will also increase.
- Stay updated on social media: As important as an online presence is, social media also plays an equal role. Facebook, Instagram, WhatsApp, and Twitter ads also help reach the world at the lowest cost. In today’s world, collaborations and social media presence speak a lot. You can collaborate with different brands and lay a very good foundation for your business.
- Manage your expenses and stay consistent: Consistency is the key. There will be ups and downs in the business. To reach the break-even point, you will need to stay consistent and manage day-to-day expenses. Cut down unnecessary and repetitive expenses as much as you can, and that’s how you can scale up. Plan your expenses well so that you don’t fall short later.
For all your business needs and start-up advisory, contact Kanakkupillai today.
End Note:
The path to profitability requires persistence, innovation, and adaptability. Take action today to unlock the potential of your entrepreneurial journey in India.
FAQs
1. Do I need a business plan to start a business?
Yes. It is the road map to a successful and profitable business.
2. How do I finance my business?
You need to understand your source of income and repayment capacity. If it is a start-up, it is advisable to do it through your own money/savings/retained earnings.
3. What are the permits I require?
It varies from industry to industry and state to state. You need to carefully understand this.
4. What can I do to protect my business name/logo from competitors?
You have to legally protect your business name by securing trademark registration.
5. What are the biggest challenges when starting a business?
Employment, time management, check on compliance, cash flow management, diversification, staying up to date, and working more than you expected.
