Checklist for Starting Up

Here’s the list of things needed to start a business:

• Finding a good startup idea

A good business start-up idea is the foundation of success for any startup. Your idea should be such that it has market acceptability and the potential to become significant. Surprisingly, too many startups go into the market thinking they have an excellent service or product, failing to realise that the masses may not reflect the same sentiment.

Such startup ideas revolve around the preferences or sentiments of the founder—something they like or think others will like. But ideally, products and services must cater to the needs of the people, not the preferences of its founders. This is why the best startup ideas are the ones that cater to the pain points of the people.

For starters, you can begin with a significant problem you are facing or think many people face. If you have a solution to that problem that you feel can be converted into a good business opportunity, then you just need to know whether others are also facing the same problem. If the answer is yes, then you have got your product and market for your new business start-up.

• Market research

Testing the feasibility of your product or idea is important. This will let you know whether your idea is worth pursuing or not. Targeting the wrong target market is one of the reasons why many startups fail in a short time. Sometimes, what you feel is a great idea might not be welcomed by the market. Therefore, a good way out is to do thorough market research. This includes deciding the following:

1. What is the problem?
2. Does everyone face it?
3. Who are the target customers?
4. What is the market size?
5. Whether any alternative solution available to the problem?

• Prepare the financials and business plan

It is one of the most critical factors, i.e., studying the financial feasibility of your idea. Studies say that only 80% of startups don’t survive after one year, and finance is a critical determining factor. Businesses are for profits. If you have a great business start-up idea, but it does not have the potential to generate profits, then your business won’t sustain for long. 

• Deciding the constitution of your business

You need to establish your business legally. You need to decide on the constitution of your business. Creating a company is one of the most preferred options for startups. Apart from company startup, other constitutions include partnership firms and Limited Liability Partnership (LLP) firms. Whatever format you select, you need to incorporate your company formally.  

• Raise investments

It’s time for execution! So start finding the investors for your business and get on the ground! As per Times Now, startups raised a record $ 24.1 billion in 2021. Having an investor’s backing provides a financial assurance and helps the founders in terms of strategy, team building and network.

In a Nutshell

You can follow the above steps to start a small business and grow it into something big. It’s time to start planning and get on the grounds. You also need to plan for your mission-critical and operational stuff like:

• Renting your office space
• Hiring talents
• Deciding the domain name
• Creating a website
• Setting up social media accounts
• Marketing your product.

The key to a successful startup is delivering a superior customer experience. For instance, startups face difficulties when it comes to accepting international payments from their customers. What’s the solution then?

The solution lies in an ideal payment gateway that easily facilitates domestic and international payments.

PayU offers 150+ payment modes to customers along with the acceptance of payments in international currencies. This has enabled startups to expand across borders.  

Frequently Asked Questions

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Unicorn Meaning

Unicorn means a privately held startup company that has achieved a valuation of $ 1 billion. In Indian currency terms, that’s roughly around Rs. 7500 crores. That’s a huge valuation for any privately held company.

Becoming a unicorn is a dream for all the startups and a great milestone to achieve. InMobi, a mobile advertising startup, became the first unicorn startup in India back in 2011. After 11 years, India gets its 100^th unicorn with the neo banking fintech portal ‘Open’ entering the elite club.

How Are Unicorns Valued?

Now that we have understood the unicorn meaning in entrepreneurship, how is unicorn status achieved? How are such high valuations achieved by unicorns?

The valuation of unicorns is usually determined by the investors and venture capitalists that have participated in the financing rounds of the company. Several factors interplay while determining the valuation of the unicorn. One might wonder how is it possible for even the presently loss-making startups to attain such a high valuation?

The valuation of a unicorn is not solely based on its current performance and profitability.  It involves long-term forecasts and analysis of its financial model. Here are some of the reasons for unicorns achieving such high valuation:

• Fast Growth Strategy: Here, the investors invest a huge chunk of money in a bid to help the unicorn attain faster growth while also allowing investors to capture a higher share in the start-up. This leads to unicorns attaining a high valuation regardless of current performance and profitability. With each round of funding, the valuation of unicorns reaches newer heights.
• Better Innovations: Start-ups with better innovations often attract investments from multiple investors. If your idea has the capability to solve a real problem, then you are most likely to receive funding from multiple investors.
• Strong Network of Users: There are many startups that base their revenues on their network of users. While the services provided to the users are free, this creates an opportunity for brands to gain visibility. For instance, social media are free to use and have some of the most significant user engagement ratios. Therefore, this creates an opportunity for the brands to gain the users’ attention, further increasing their sales. This enables social media to earn through advertisement. Such models have done well in attracting investors.
• Market Competition: If you are new to the industry or have little to no competition, then you are most likely to attract investors. Being an early bird, you can access a vast unexplored market for your new product or offering. This is likely to shoot up your investments. Conversely, if a startup has just created a replica of an existing business or model or is entering a market with huge competition, then it will face a hard time wooing investors, adversely impacting valuations.
• Buyouts: More often than not, big players buy out startups to enter a new segment to diversify their business or own new technologies. This relieves the bigger players from building from scratch and gives them a head start.

Also read: How To Register A Startup Company In India?

Stages of Startup

While the meaning of unicorn in the startup ecosystem is prominent, the unicorn is only one of the many stages that a startup goes through. As the valuation of a startup increases, it climbs the ladder to the top. Here are the stages of a startup in terms of its valuation:

Do you need a payments partner for your startup? Partner with a reliable payments partner that’s powered over 5 lakh businesses so far – PayU

Frequently Asked Questions

The post What Is A Unicorn Startup? – Meaning, Valuation & Stages appeared first on PayU Blog.

• Network
• Participate
• Access

With better networking with various participants and access to a myriad of knowledge and support resources. It aims to create a supportive ecosystem for the continuous growth and development of these entities.

Steps to Register Your Startup with Startup India

Startup India Registration requires the following steps:

Incorporation and Eligibility Criteria

The first step towards getting the entity registered for the scheme and getting recognition is to incorporate the entity and check for the various eligibility parameters defined within the particulars of the scheme.

Account Creation

Once the entity is incorporated and the eligibility criteria are fulfilled, the next step is to create an account on the GOI start portal (www.startupindia.gov.in). A user can register the entity by browsing the portal and clicking the new user. Registration can be done by filling up the details or using any of the social media accounts. Once the OTP-based validation is done, an account is created for the entity.

DPIIT Recognition

Entities can access higher-level facilities, thanks to the Department for Industry Promotion and Internal Trade recognition. Existing and new users can get the DPIIT recognition through scrolling to get ‘DPIIT Recognition’ and ‘Get Recognition,’ respectively. The benefits of DPIIT recognition are,

• Self-Certification
• Tax Benefits
• Relaxed Public Procurement Norms
• Intellectual Property facilities
• Easy Winding-up
• Access to Funds of Funds

Recognition

A detailed form for entity recognition needs to be filled out. Here, the details for recognition can be accessed.

Document Submission

An entity has to furnish the required documents to complete the entity recognition process.

Self-certification

All the documents to be submitted for recognition have to be self-certified before filling.

Certificate of Recognition

The DPIIT certificate of recognition will be issued once all required documents have been submitted and the application has been reviewed. Once the entities are registered, they are permitted to use the DPIIT G2B portal. The portal provides options to file online applications, queries, pitch something, file an application, and history of filed applications and license obtained previously.

List of Documents required: 

• Proof of registration: Certificate of Incorporation 
• Director details 
• Questionnaire received 
• PAN 
• Entity Pitchbook: A pitchbook for startup registration, indicating how the entity fits the required parameters of the Startup India Initiative. 
• Reference Letter: 
• A letter of funding from the Indian government or a state government as part of a specific scheme to encourage innovation; OR 

• A reference from an Incubator as required by the Department of Industrial Policy and Promotion (DIPP); OR 
• A letter of support from a government-funded incubator mentioning innovation concerning the project; OR 
• A letter of recommendation from an Incubator indicating innovative nature of entity OR 
• A letter of funding and support from any SEBI registered approved entity indicating endorsement of business; OR 
• A patent was filed by the Indian Patent Office and published in the Journal in areas related to the nature of the business being promoted. 

Benefits of Signing up with Startup India

Tax Benefits

For the initial three years, registered Entities will be getting tax exemption so that revenues can be employed for further development. 

Self Certifications

Registered Entities get the ability to self-certify compliance for nine labor and environmental regulations, thus reducing the regulatory pressure. 

Patent

Registered entities will be entitled to fast-track application of patents, additionally will have the eligibility to 80% rebate on the patent fee. 

Going Public

Registered entities will have relaxed norms for going public to raise capital. 

Incubator Module

Registered entities will be enabled to use the knowledge and support of Incubators to have a conducive growth environment. 

Networking

With 49000 users registered on Startup India Portal, registered entities can broaden the range of networking possibilities. Registered entities also get networking opportunities through fest conducted under the scheme. It is done twice a year. 

Government Tenders

Registered entities get equal footing to obtain high-value government tenders with relaxed norms and incentives. 

Boost in Research and Development

Research parks are being set up to promote research and development for budding entrepreneurs and students. Registered entities will be able to exploit these resources to innovate and develop their products/services. 

How Do I Know My Registration is Complete?

Startup gets recognized after filling the application with duly required documentation. Subsequently, you can download a copy of your certificate of recognition from the portal. Certificate of recognition gets available for download in two working days after completion of forms. 

Conclusion: Register Your Entity Today

Startup India Statistics stands at: 

• 15475 recognized entities. 
• 148897 Jobs created. 
• 45% o these entities have women directors 

Examples of Startup India registered Success Stories: 

• 108 COUTURE LLP,  
• 21-century polymers Pvt ltd, 
• 360 DEGREE FOOD AND BEVERAGES PRIVATE LIMITED  

To see the complete list of registered entities, click here. 

There are many other schemes that the Government of India provides for entrepreneurs in India. Each of these schemes provides a unique kind of assistance to the entities. With a supportive environment and assistance from varied resources, the startup initiatives of India are indeed a boon to upcoming entrepreneurs. Here is the list of Government of India Schemes. 

Did you find this blog helpful? Check out more at PayU India Blog. 

The post A Quick Guide to Register Business Under Startup India Scheme appeared first on PayU Blog.

The millennial generation prefers to work in a field of their interest, where they feel challenged and satisfied. They are more inclined to work in startups and unicorns, hoping to change the world for the better. 

The startup culture has helped various young entrepreneurs start their businesses with small and unique ideas. The cultural transformation has accelerated the technological revolution, making a significant impact on the socio-economic situation in the country. Understanding the potential of startups, the Government of India launched the “Startup India” initiative. 

Now, let’s understand what exactly is a startup?

What Is A Startup?

Startups are new businesses set up by one or a group of individuals. There could be two reasons to create a startup: 

• To offer a new idea or product and no one else has the copyright/patent on it previously
• To redevelop existing products or facilities in innovative ways 

If you are planning to start your venture, these questions might bog you down: 

• Do you have to register the startup if it is in the nascent stage? 

• Is registration required for startups that offer legal, agricultural, or technological services? 

The answer to these questions is yes. As per India startup basic guidelines, you should register your venture under the “Startup India” scheme to avail various government benefits. These advantages include tax exemptions, easier compliance, and other types of assistance. 

Who can register for startup India? 

Under the “Startup India” initiative, an organization needs to meet certain prerequisites to be called a startup. To make your company considered as a startup by The Department for Promotion of Industry and Internal Trade (DPIIT), your organization: 

• Has got registration as a private limited company or a partnership firm. 
• Its total turnover is less than INR 100 crore for any of the financial year. 
• The entity is working towards innovation in products/services and has the potential to generate employment. 
• It will be considered a startup for only up to 10 years from the date of registration. 

If your venture meets the above criteria, register it with the DPIIT. 

How to get your startup registered? 

The Indian Government has simplified the process of startup registration. Below are the processes and steps involved in registering a startup with DPIIT: 

Integrate the business:  

Determine if the business will be integrated as a private limited company or a partnership firm. Once confirmed, gather relevant documents like certificate/partnership registration, PAN, etc. 

List with startup India:  

The registration process is entirely online on the Startup India website. Provide the relevant business details over there like operator, title, startup stage, etc., and start applying under the incubator and mentorship programs. That’s not enough post-approval, the startups will be entitled to various central government schemes, favorable state policies, and pro bono services. 

Acknowledgment from the Department for the Promotion of Industry and Internal Trade (DPIIT):  

On successful creation of profile, startups receive recognition from DPIIT. The recognition received is quite important as it allows startups to avail benefits like: 

• Access to quality intellectual property services and resources 
• Influence on procurement rules 
• Self-certification under labor and environmental law 
• Easy business closure 
• Tax exemption for three consecutive years 
• Tax exemption on investments above market value 
• Access to funds of funds 

These benefits help startups in charting a path towards success and value creation. 

Application for recognition:

For this, business owners can visit the “Startup India” website and toggle to the “recognition application detail” page. Here, they can fill in the required details in the “startup recognition form” and submit it. 

Documents Required:

If you want an organization acknowledged as a startup, then you need the following documents: 

• Startup registration certificate 
• Executive details 
• Concept evidence which can include internet site link/video  
• Details of patent and trademark, if any 
• PAN number of the registered organization 

Recognition number:  

The organization receives an acknowledgment number immediately on successfully registering online. Verification of all the official documents is complete within two days, and the organization receives a certificate of recognition if everything is in order. 

Note: It is vital to upload all the documents correctly and cautiously. Uploading false documents or forgetting to add documents may lead to a penalty of up to Rs 25,000. 

Self-certification: 

For organizations to self-certify, the conditions are as follows: 

• The organization holds the title of a private limited company, LLP or a partnership firm. 
• The business has got registration in India for a minimum of five years in operations.
• The business is innovative and improving the existing system.  
• At last, the annual turnover of the business is not more than INR 100 crores.

Conclusion 

The Government of India has pushed for the growth of startups in the past decade. Various business-friendly policies created by the government have led to the rise of startups in varied fields.  

These startups have helped to bridge the gap between people from different financial backgrounds through their innovative ideas. They have provided employment opportunities to thousands of people, making a big impact on society in the process. 

The registered startup can grow its business by collaborating with PayU India. We are a one-stop shop for your payment gateway solutions for websites and apps. We offer the best success rate for all payment options, along with 24*7 support and a custom checkout experience. Contact us today to write the next growth chapter of your journey. 

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