Set-up the Business Foundation from Scratch to Revenue Generation
- Admin indiancorpo.com
- Mar 18
- 4 min read
Updated: Mar 22
Setting up a business foundation from scratch in Bangalore, India's thriving startup and tech hub, involves a series of steps to ensure your venture is legally compliant, financially sound, and market-ready. Here’s a structured approach to help you set up your business in Bangalore.
1. Define Your Business Idea
Before anything, ensure you have a clear idea of:
What your business will do (product or service).
Your target market (who will be your customers).
Your unique selling proposition (USP) (what makes your business different from competitors).
Research: Study the Bangalore market to understand your competitors, industry trends, and customer needs. Conduct surveys, interviews, and competitor analysis to refine your business idea.
2. Draft a Business Plan
A solid business plan is crucial for success. It should include:
Executive Summary: Brief overview of the business, mission, and vision.
Market Research: Insights into your target audience, competitors, and market trends.
Revenue Model: How will your business make money (e.g., product sales, subscription fees)?
Marketing Strategy: How will you reach customers (digital marketing, word of mouth, partnerships)?
Financial Projections: Revenue forecast, expenses, break-even analysis, and cash flow projections.
Team and Operations Plan: Your team structure and day-to-day operations.
3. Choose the Right Legal Structure
Deciding on the business structure is essential as it will affect liability, taxes, and operations. Common structures include:
Sole Proprietorship: For solo entrepreneurs. Low compliance but no liability protection.
Partnership: Owned by two or more people. Limited liability protection, easy to manage.
Private Limited Company (Pvt Ltd): Best for scaling businesses. Limited liability and easier to raise capital.
Limited Liability Partnership (LLP): Similar to a partnership but with limited liability protection.
Public Limited Company: Suitable for larger businesses looking to raise funds from the public.
In Bangalore, many startups prefer the Private Limited Company for its benefits of limited liability and the ability to raise funds.
4. Legal and Registration Formalities
You’ll need to complete several registrations and compliance requirements:
Register Your Business:
Private Limited Company/LLP: Register on the Ministry of Corporate Affairs (MCA) portal. You'll need to apply for a Director Identification Number (DIN) and Digital Signature Certificate (DSC).
Sole Proprietorship/Partnership: Can be registered locally through the municipal corporation or the local business registrar.
Obtain a PAN and TAN:
Apply for a Permanent Account Number (PAN) for tax purposes.
Apply for a Tax Deduction and Collection Account Number (TAN) if your business is required to deduct taxes at source.
GST Registration:
If your business turnover exceeds ₹40 lakhs (₹20 lakhs for special category states) annually, you must register for GST.
Other Licenses:
Depending on your business, you may require additional licenses:
Food and Drug License (FSSAI) for food businesses.
Import/Export Code (IEC) for import/export businesses.
Shop and Establishment Act Registration for operating a retail or office space.
5. Financial Setup
Open a Business Bank Account: Once registered, open a business account to separate personal and business finances.
Funding: Identify how you will finance your business:
Self-funding: Using personal savings or assets.
Loans: Small business loans or government schemes like MUDRA.
Angel Investors/Venture Capital: If you’re aiming for growth and scalability, consider angel investors or venture capital.
Crowdfunding: Some startups opt for crowdfunding via platforms like Ketto or Kickstarter.
Accounting System: Set up an accounting system to track your revenues, expenses, and profits. You can either use software like Tally, QuickBooks, or hire an accountant.
6. Business Location and Infrastructure
Bangalore offers various options for office spaces, from dedicated commercial properties to coworking spaces that are ideal for startups:
Coworking Spaces: WeWork, IndiQube, 91Springboard offer flexible, cost-effective office solutions.
Permanent Office Space: If you prefer to have your own office, look for affordable spaces in growing business hubs like Koramangala, Indiranagar, Whitefield, or Hebbal.
7. Build Your Brand
Business Name and Logo: Choose a name that’s memorable, easy to spell, and relevant to your business. Design a professional logo.
Website: Create a user-friendly website that showcases your products/services, your contact details, and a brief about your business. Platforms like WordPress, Wix, or Shopify can help you set up your site.
Social Media Presence: Set up accounts on platforms like Facebook, Instagram, LinkedIn, and Twitter to build a community and engage with potential customers.
8. Marketing and Customer Acquisition
Develop a strategy to attract customers:
Digital Marketing: Run online ads on Google, Facebook, or Instagram. Implement SEO (Search Engine Optimization) to improve your website’s visibility.
Offline Marketing: Consider local advertising like flyers, pamphlets, and banners, or sponsoring events and networking groups.
Referral Programs: Offer discounts or rewards for customers who refer your product or service to others.
Networking: Join industry-specific groups in Bangalore, attend startup events, and seek opportunities for collaboration.
9. Hiring and Team Building
If your business requires additional help, start by:
Hiring Employees: Post job listings, screen resumes, and interview potential candidates. Use platforms like Naukri, LinkedIn, or Indeed to find talent.
Freelancers/Contract Workers: Alternatively, hire freelancers for specialized tasks (designers, developers, marketers) through platforms like Upwork or Fiverr.
Make sure you comply with labour laws regarding salaries, benefits, and employee rights.
10. Post-Launch Activities
Monitor Performance: Track your business’s performance with KPIs (key performance indicators) like sales, customer acquisition costs, and marketing ROI.
Customer Feedback: Collect customer feedback to improve your products or services.
Compliance: Ensure that you continue to file taxes, renew licenses, and maintain records in accordance with legal requirements.
As your business grows, consider expanding your team, diversifying your product offerings, and exploring new markets.
11. Helpful Resources in Bangalore for Startups
Startup Incubators and Accelerators:
NASSCOM 10,000 Startups
Bangalore Startup Hub
Atal Innovation Mission
TiE Bangalore
Mentors and Advisors: Seek mentorship from local business incubators and networks. TiE Bangalore and Headstart Network Foundation provide support to entrepreneurs.
Funding Networks: Platforms like LetsVenture, Venture Catalysts, and Indian Angel Network (IAN) help connect entrepreneurs to investors.
Conclusion
Setting up a business in Bangalore can be a great opportunity, given the city's strong entrepreneurial ecosystem, access to a talent pool, and supportive infrastructure. By following these steps, you can navigate the complexities of starting your own business, ensuring compliance, and scaling your venture successfully.
