Definition of startups
A startup is a growing business founded by one or more entrepreneurs and aims to create and sell a new product or service. The top startups in India follow these criteria, for example:
- Initiative – A productive startup aims to address challenges at ground level rather than to produce money. It would aim to include a remedy that remains to be sought.
- Socially impactful- It will always have a socioeconomic impact, appealing to the broader masses of society.
- Creation of jobs- A future startup would be targeted at generating employment.
How did startups start in India?
The oldest startup in India is Flipkart. We all know the inspirational story of Sachin Bansal and Binny Bansal, who launched Flipkart as an online bookshop website. With a modest base, Flipkart is the largest e-commerce company in India today. What followed was a host of other enterprising concepts, such as Snapdeal, Myntra, Paytm, etc.
Types of startups in India
Bootstrap – Funds of this sort derive from individual and family savings and assets. Throughout India, these forms of startups constitute just 10%. Their primary aim is profit-making.
Investor Funded – Investor funds run venture-funded startup firms. Its main goal is growth regardless of profit or loss. This form of business accounts for almost 90% of all startup stories in India.
Who can start startups?
There are no restrictions on who can start a startup business, but you can see two types of people who establish it:
Students with an engineering or business mind bent are usually known to strive to start up. They have the vision of developing their own company. With the help of a prestigious organization such as the IIMs and IITs in India, they have the experience and technological know-how they need to see through it. Students will finance their startups with the support of their families or those searching for new investing ideas. Nonetheless, it is often known that they would quickly run out of money, and their startup would fall to a shortage of further financing. It is very unusual to see students in Class 10 or Class 12, succeeding in the startup industry.
The next group of people who dream about beginning a startup business is a professional community. These people are quickly dissatisfied with their boring 9-5 jobs and feel they have the technical skills to start their own company. They also have ample awareness of the business gathered from their job experience. Many companies in India are the brainchild of educated citizens.
Things you must know before starting a startup in India.
1. Idea – Choose between products and services.
2. Investment – A startup business requires a certain amount of money to be successful.
3. Workforce – It requires a team of at least 3-5 people to look at the finer details of the company. These people can be hired from Internshala.
4. Execution – Execution of the plan is essential.
5. Corporate governance – Transparency with the government is very crucial.