Introduction
Privatization and globalization have exposed people to a lot of innovative ideas and products. Consequently, with the onset of the Pandemic, more people have shifted towards starting their start-ups. Entrepreneurship has become one of the Indian economy’s necessary components. The government of India is also encouraging new businesses and entrepreneurs with various schemes. The schemes include the “Start-up India Scheme”, ” Make in India”, etc. However, starting and running a profitable business in India can be competitive due to the market size and numerous business ventures.
Entrepreneurs should calculate their investment based on the economy, demands in the market, the culture of the local audience, experience, and competitors. Notwithstanding the size of the business, whether it is small scale or large scale, every business comes with some amount of risk. Therefore, this blog lists some of the necessary steps to manage a profitable business in India.
Necessary steps followed to manage a profitable business
1) Deciding a business idea
New business owners need to come up with a fresh and unique business idea. Pandemic has opened many new fields such as e-learning, protective equipment manufacturing, pharmaceuticals, e-tourism, etc. Thus, entrepreneurs can use the business ideas available online on various websites. Moreover, the business idea should also cater to the demands of the local and targeted customers. It should also be something within the expertise and interest of the business owner. Some of the tested methods in coming up with profitable business in India are
- Running a survey within a selective crowd
- Brainstorming with some experienced businesspeople
- Discussing with your employees
- Building a focus group
The first step to starting a profitable business in India could be tricky and time-consuming. But it is the most crucial step in building a valuable entity in the future. Still, this is the mere beginning of the journey of building a good business entity and organization in the country
2) Planning the business
The next step to building a business is planning. It is a major course of action for every business. The entrepreneur should decide on the team of employees, location of the business, marketing of the business, and finance. Accordingly, it is better to have a step-by-step plan for every stage of the business. This process helps in planning and preparing for worst-case scenarios as well. It also allows the business owner to identify the long-term and short-term goals of the business and the impact the company is expected to create in the market. Many successful businessmen have planned day-to-day operations in their organizations. Additionally, planning provides more control over the business and finances by the entrepreneur. Some of the advantages of planning are
- Increase in flexibility
- Setting standards for the business
- Boost confidence and commitment among the employees
- Guiding the actions and decisions of the business
- Enhancing the utilization of manpower and capital
In general, planning sets the vision and mission of the business. In a chaotic business environment, planning can be very beneficial and favourable for a profitable business in India. This helps visualize the goals, working model, and impacts of the business in the forthcoming years of operation.
3) Sourcing the required funds and capital
Funding is the main aspect of every business. Unlike experienced businesspeople, beginners struggle in this stage of the process. As a result, the Government of India is providing funding for Medium, small and micro enterprises with lower interests under many schemes. Furthermore, many nationalized banks are willing to provide funds for new businesses. It is also possible to get funds from community groups, cooperative societies, crowdfunding, and credit societies. The business owner can also utilize the subsidies provided by the government and personal investments. Some of the funding schemes by the government are
- Start-up India seed fund
- Start-up India initiative
- Multiplier Grants Scheme
- SAMRIDH Scheme
- The Venture Capital Assistance scheme
- New Gen Innovation and Entrepreneurship Development centre
- The detailed descriptions of other schemes are provided in the Government Schemes (startupindia.gov.in)
On the other hand, individuals who are not ready to invest a huge sum of money in business can start with zero or minimal investment businesses. Some examples of the most profitable businesses in India with low investment are
- Blogging
- YouTube video creators
- Home-based catering services
- Home bakery and cloud kitchen
- Graphic designers
- Mobile app developers
- Dropshipping
- Organic farming
- Event management
There are many of zero investment businesses that are profitable. For instance, many bloggers and YouTubers earn and lead a decent living with their zero investment business models. The main advantage of these business models is the limited workforce. These businesses can also serve as a great source of experience for beginners in gaining initial customers and market for their products.
4) Registering and legalizing the business
One of the lengthiest and most exhausting processes in business is registering and legalizing. But in recent days, with technologies registering takes only one week. Additionally, all the formalities for registering a business can be done online. Registering and legalizing a business can be very helpful because of the following reasons.
- Registering a business provides limited liability protection to the company. This enables the business owner to claim the eligible losses incurred in the business with required supporting documents.
- It makes the transfer of ownership transfer and sharing of the organization easier.
- Legalized companies can easily open a proprietorship bank account for the company with almost all the banks in India.
- This also helps the business owner in getting the funds required faster for the entity. Besides, registering a business is mandatory for getting equity and debt funds.
Many customers in India prefer to do their business with registered and legalized entities only. So, this step in starting a business is key to turning it into a profitable business in India. Steps involved in this process include
- Obtaining a Digital Signature Certificate
- Getting Director Identification Number
- Account creation in the MCA portal under the government of India
- Attaching the necessary supporting documents to the portal
5) Building a website for the business
Based on recent surveys, businesses with a pleasing website and online presence gain more customers than those that don’t have a website. There are a lot of software available online for launching a website for your business. These software are both free and subscription-based. So, business owners should select website builders according to their needs. Apart from that, having an online profile on social media platforms such as Facebook, Instagram and Twitter can also be very useful. These profiles enable direct contact with the customers. Beyond that, websites and social media profiles can increase brand visibility and recognition. Some of the other pros of having a website are
- Suggesting customized products and services by using the customer’s website activity
- Accessibility to the products and services 24/7
- Attracting customers worldwide
- Online promotion and branding
- Expansion of market to other regions as well
- Exchanging information such as restocking and launching new products and services
- Getting customer feedback directly
Other than that, having a website can also gain customer loyalty and confidence in the business. Regardless of the cost involved in creating a website, it is very rewarding for the most profitable business in India.
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6) Marketing the business
This is the prime process in building a profitable business in India. Establishing a unique and innovative business is merely the beginning. But marketing creates demand for the business in the market. It also spreads the word about your business worldwide. Marketing plays a pivotal role in informing about the business, builds trust among customers, increases the reputation of the brand, and it grows the business. Some of the most popular ways of promoting a business are
- Direct mails
- Digital advertising
- Social media advertising
- Press advertising
- Email marketing
Among all the strategies, social media marketing and digital marketing are more fruitful. These methods help the business to reach more audiences worldwide. Posting engaging and catchy content about the business online can attract more customers. Large and medium businesses can also hire media relations experts to gain more visibility in the business. Search engine optimization (SEO) is also a great way to market your business. Similarly, the advantages of email marketing are that they are cost-effective, immediate, and efficient.
Some of the effective marketing strategies for new business are
- Providing coupons
- Selling products at a discounted rate
- Providing free samples
- Providing subscription and customer loyalty programs
- Availing offers for the customers
Marketing also allows the customer to take an informed decision after comparing various brands. Thus, marketing is very crucial for the most profitable businesses in India.
Once the entrepreneur completes the above-mentioned steps, they are good to go with the actual launch of their enterprise. They should periodically check and evaluate their goals, targets, sales, profits, management, and other decisions to make it a profitable business in India.
Key Takeaways
Starting a business with all the above steps is critical for building a lucrative business. Moreover, trust and a good working environment are also important for a good business. Most profitable businesses in India are built with determination and hard work. In the changing scenario, entrepreneurship is a great strength of the Indian Economy. In summary, the business owner, both experienced and beginners, should evaluate their business and adapt to new technologies. They should always be willing to listen to new ideas and adapt to new technologies. Likewise, entrepreneurs should be aware of their social responsibility while introducing new products and services. This will make their entity one of the most profitable businesses in India.
Frequently asked questions
Q.1 What is the most profitable business in India?
Ans. India’s growing population demands more and more new businesses. Some of the most profitable businesses in India are Auto repair, food industries, electronics and hardware, and Information technologies. During pandemics, e-learning services such as online tutoring, online courses selling, etc., have also earned a lot of profit. Similarly, e-commerce websites are yielding more profit in recent years. Some other profitable businesses in India are online wellness courses, personal coaches, graphic designing, consulting, social media marketing, and social media strategist.
Q.2 Which industries are likely to grow in the future in India?
Ans. Some famous industries with great growth potential are Information technology, social media marketing, Finance and accounting, education, healthcare, automobile, and infrastructure. The big market size of India makes it a great country for business investments. Other than that, zero investment businesses such as blog writing, YouTube video making, virtual assistants, content development, and graphic designing are also growing at a fast pace. Additionally, real estate has been a booming business sector in India in the past few years.
Q.3 What business can I start with an investment of 10 Lakhs?
Ans. 10 Lakhs is a good capital for starting small-scale industries. For example, catering services, fitness centres, spas, and wellness centres need a maximum of 10 Lakhs as capital. Other businesses are travel services, event and wedding management, online stores, pet stores, organic farming, website designing, and children’s stores. You can also buy some successful franchises with 10 lakhs as an investment.
Q.4 What are all the Government of India’s initiatives to encourage entrepreneurship in the country?
Ans. India has a lot of successful businessmen. Even in the past, there have been many businessmen in India. However, in recent years, the Government of India has taken many initiatives such as Make in India to promote Indian entrepreneurs. The government has also introduced many schemes to fund and support local businesses. Some schemes are PM Mudra Yojana, Financial support to medium-small and micro enterprises through the ZED Certification scheme, credit-linked capital subsidy for technology up-gradation, etc. Banks in India are providing loans and credits for new businesses as well.
Q.5 What makes a business successful?
Ans. The success of a business lies in more than one factor. From planning a business to customer satisfaction, every aspect of a business is necessary for its growth. Creating a unique and innovative product or service and having a good and trustworthy workforce are other key factors in running an entity. Good customer service and affordability of a product are important for a profitable business in India.
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