- Step 1: Ideation and Market Research
- Step 2: Create a Business Plan
- Step 3: Legal Registration & Compliance
- Step 4: Funding Your Startup in India
- Step 5: Build Your Team & Tech Stack
- Step 6: Launch & Marketing
- Step 7: Scaling & Growth
- Common Challenges & Solutions
- Conclusion
- Frequently Asked Questions (FAQs)
India is now the second-largest startup ecosystem in the whole world, and with 100+ unicorns (startups with valuations over $1 billion) like Flipkart, Zomato, and Paytm, there is no slowing down. The government’s Startup India initiative, tax benefits, and growing digital adoption have made it easier for entrepreneurs to launch a startup in India.
However, everything is not sunshine and rainbows. Many startups fail due to poor planning, lack of funding, or legal hurdles. This blog will break down 7 essential steps that you can follow to start your own startup—from validating your idea to scaling your business.
Step 1: Ideation and Market Research
Find a Problem Worth Solving
Every successful startup begins with a problem that is pertinent to society. The other way is trying to find a solution to the problem you are currently facing and analyzing whether it is the same for many in society.
For example:
- Paytm solved the payment difficulty in a cash-heavy economy.
- Swiggy/Zomato addressed the inefficiencies in food delivery.
Validate Your Idea
- Before you fully invest your time and money, ask these questions of yourself:
- Is there a demand? (You can use Google Trends, surveys, and competitor analysis)
- Who are your competitors? (Analyze their strengths/weaknesses)
- Who is your target audience? (Age, income, location, pain points)
Here is a tip: Build an MVP (Minimum Viable Product) for your startup in India—a basic version of the product to test the current demand before going full-scale development.
Step 2: Create a Business Plan
You need to make a solid business plan to secure funding from investors for setting up a startup in India. This business plan will also guide you in strategy making. The key sections in a business plan are:
Executive Summary: Mission, vision, and objectives (e.g., “To make online education affordable”)
Business Model: Here, you need to mention how your business is going to make money. For example,
- Subscription (Netflix)
- Freemium (Zoom)
- Marketplace (Amazon)
Financial Projections: Mention the key areas where you will incur expenses.
- Startup costs (website, hiring, legal fees)
- Revenue forecasts (1-3 years)
- Break-even analysis
Example: Ola started with ride-hailing but expanded into electric vehicles and financial services.
Step 3: Legal Registration & Compliance
Choose a Business Structure
Register Your Business
- Company incorporation (via MCA/ROC)
- GST registration (mandatory if turnover > ₹40 lakh)
- Startup India recognition (DPIIT registration for tax benefits)
Protect Intellectual Property
- Trademark (brand name/logo)
- Patent (unique inventions)
Pro tip: Use ClearTax or LegalZoom for hassle-free registrations.
Step 4: Funding Your Startup in India
Bootstrapping (self-funding)
Use savings or revenue (eg. Zerodha grew without VC funding).
External Funding Options
Crowdfunding & Pitch Competitions
- Kickstarter (product-based startups)
- Shark Tank (media exposure + finding)
Pro tip: Prepare a pitch deck with
- Problem & solution
- Market size
- Revenue model
- Traction (users, sales)
Step 5: Build Your Team & Tech Stack
Hiring the Right People
- Co-founders (complementary skills)
- Remote teams (use LinkedIn, AngelList)
Essential Tech Tools
- Website: WordPress, Wix
- CRM: HubSpot, Zoho
- Accounting: Tally, QuickBooks
Example: Flipkart’s early success relied on strong tech talent.
Step 6: Launch & Marketing
Go-to-Market Strategy
Digital Marketing: SEO, Facebook/Google Ads
Influencer Marketing (Mamaearth used Instagram moms)
Offline Tactics: Local partnerships, events
Track Key Metrics
CAC (Customer Acquisition Cost)
LTV (Lifetime Value)
Example: CRED grew via exclusive referrals & viral campaigns. It is now a successful startup in India.
Step 7: Scaling & Growth
Expand Geographically
Target Tier 2/3 cities (Meesho succeeded here)
Diversify Products/Services
Amazon expanded from books to AWS (cloud computing)
Continuous Innovation
Collect feedback, improve products
Common Challenges & Solutions
Conclusion
A startup is something that provides a solution to the current problem in society. You are the entrepreneur who brings the services or products for which people will pay, and for that, you need a proper plan.
Starting a startup in India needs planning, funding, and execution. Follow these steps:
- Validate your idea
- Register legally
- Secure funding
- Build a strong team
- Launch & market smartly
- Sale sustainably
Ready to start? Check out the Startup India Portal (www.startupindia.gov.in) for more resources!
Frequently Asked Questions (FAQs)
What is a 20 lakh grant for startups?
It is a seed fund given to an eligible startup by the incubator. It shall be disbursed as follows: Up to ₹20 lakhs as a grant for validation of proof of concept, prototype development, or your product trials.
How much does it cost to start a startup in India?
If you want to start your own private limited business, you need to pay the following:
Registration fee
Professional fee
Initial paid-up capital around ₹13,000/-
Additional annual compliance around ₹13,000/-
The actual cost can vary depending on the state, the type of business, the scale of the business, your location, and the operational needs.
What is the PM Startup India Scheme?
It is a flagship initiative of the Indian government. It was launched in 2016 to foster a strong ecosystem for innovation and entrepreneurship. It provides various programs and incentives to support startups, including financial assistance, tax benefits, and easier compliance. The goal is to transform India into a country of job creators, rather than job seekers.
Who is eligible for a startup in India?
Age: Any Indian citizen aged 18 or above can apply.
Original entity: The company or entity should have been formed initially by the promoters and not by splitting up or reconstructing an existing business.
Who is eligible for a startup in India?
Age: Any Indian citizen aged 18 or above can apply.
Original entity: The company or entity should have been formed initially by the promoters and not by splitting up or reconstructing an existing business.
Which company type is best for a startup?
Usually, a private limited company (Pvt Ltd) is generally considered the best type. It offers you limited liability and a separate legal entity and makes it effortless to raise funds from investors, which is an important factor for a startup to grow and succeed.
How much funding can a startup get?
The initial funding, or seed funding, is what startups get in their initial phase. You will receive seed funding between $500,000 and $2 million, but it may vary depending on your company. The typical valuation for a company raising a seed round is between $1 million and $6 million.
Nivin Chandran is a seasoned Sr. Copywriter at Digital Nest School of Business with over 5 years of experience in writing about education, technology, business, science, and more. He has authored over 500 blogs across various industries, including IT, FMCG, F&B, Real Estate, and IoT. Nivin’s expertise and versatile writing skills make him a valuable asset in the content creation field.