Starting a business in India in 2023 can be a daunting task, especially with the current economic climate. However, with a little bit of planning, it is possible to start a successful business and a minimal investment.
When one thinks to start a business, the first problem they face is not having enough funds that could breathe life into their business idea. Thousands of business plans die at the idea stage itself because of a lack of funds.
However, there are ways to get your business started even when you don’t have the funds required to start the business.
When you think of starting a business with minimum capital, keep the following suggestions in mind:
- Ensure your business generates constant cash flow
- Be lean on your spending – keep a check on unexpected expenses
- Have a detailed growth that is practical
- Weed out customers who default on payments
- Once business picks up, start creating a six months runway money
- Always keep an eye on competitors – maybe learn from them
Businesses that can be run with minimal funding
When deciding how to start a business without money, you must think of a business idea that doesn’t inherently require large capital. For example, if you are looking to start a company that requires you to invest in manufacturing units or have physical outlets, chances are you will have to raise the appropriate amount of funds required for such a business. There is no other way about it.
To help you get started and motivate you to find a niche for you, we have come up with a list of 10 business ideas that do not require large capital for you to get started.
- Digital marketing
- Website design
- Digital products
- Dance or Yoga class
- Interior designing
- Human Resources
- Online tuition
So, while going through the strategy below, please keep in mind that your business idea should not require you to have high inventory, pay salaries to a big team, and be low capital intensive.
Tips on how to start a business with less money
We have compiled a list of actions you can take to ensure money is not the constraint for you to get started with the business idea.
- Register your business as a sole proprietorship
The smart way to start a business with minimum capital in India is to register your business as a sole proprietorship. It means, you will have minimal to no legal formalities or compliances to follow, which is true for other types of businesses. You can start your business with minimal investment and paperwork if you register it as a sole proprietorship.
Interesting Read: All You Need To Know About MSME Registration In India
If you run your business as a sole proprietorship, you can claim tax benefits. The income of a sole proprietorship is taxed as personal income, which means that you can claim deductions and exemptions. Additionally, your personal assets are not at risk because you are not liable for the debts of the business.
- Free resources or tools
Starting a business with low capital means you don’t spend money on anything unless you absolutely have to.
So, if your business requires you to have a physical space, stretch it as long as possible before renting out a place. Remember how the likes of Jeff Bezos and Bill Gates started their companies from their garages? That’s the spirit of entrepreneurship you will have to have to learn how to start a business with no money in India. Operate your business from home if you are running a food business like a bakery, etc.
Interesting Read: Some Must-Have Business Tools for Small Businesses and Startups
Even when you do get enough money to rent a place, find something in a neighbourhood that is known for economical rentals.
If you are starting an online business, there are hundreds of free resources available to get started. Right from no-code tools to get your website started without spending a lot, to free image resources to design your brand’s logo and free SEO tools, you can get almost everything done either free or at a very low cost.
- One-man army
When you don’t have large enough capital, you will have to carry a lot of weight on your own. In the initial days of running your business, you will have to do a lot of multi-tasking and do the jobs that you are not fully qualified to do. For example, the co-founders of Zomato collected menus from restaurants in the initial days of starting the company. They even created the early version of the website on their own.
However, this does not mean that you should not have a team in place. Rather, it means that you should hire people who are passionate, dedicated, and skilled in their respective fields. You should have a small and reliable team. This will help you achieve your goals and grow your business.
- Write a well-researched business plan
Planning your business strategies is a great way to not only start but also scale your company with minimum capital. You should have a thoroughly-researched plan that outlines your business objectives, marketing strategy, the money you will need, revenue projections, etc.
You should also plan how you can cut costs, ways to increase profit margin, and have a list of unexpected expenses and hurdles you might encounter while running the business.
Once you write a business plan you will be better prepared to execute them to ensure you don’t end up shutting down the business because of a lack of funds.
- Sell on e-commerce marketplaces
One of the cheapest ways to sell your product is by listing them on e-commerce platforms. You will have to pay a small listing fee but your product gets visibility to customers from around the country.
You can list your products on Paytm Mall, which gets thousands of customers every month. By listing your products on Paytm Mall you save money on creating a website and worrying about delivery logistics.
Interesting Read: A Complete Guide to Starting an E-Commerce Business in 2023
Alternatively, if you run a business that sells services you can utilise tools such as Paytm Payment Links offered by Paytm for Business to collect money from customers with ease. And if you offer a subscription service for your digital product, Paytm Subscription is an ideal solution.
- Apply for Startup India
The Indian government has a number of schemes for medium and small enterprises. If you want to benefit from the government schemes you should consider enrolling for the Startup India program.
However, to apply for Startup India, your company needs to be registered either as a partnership or a private limited company.
Interesting Read: Learn What is Startup India And 5 Benefits You Can Avail
Your company will benefit a lot if it gets registered in the Startup India program. A few benefits include:
- Tax exemption
- Relaxed norms
- Access to funding
Apart from Startup India, there are various schemes by state governments to promote startups. You should enrol for one of these schemes to benefit from them.
Starting a business is challenging and requires capital investment to ensure the company grows and does not shut down. In case you want to start a business with no capital in hand, you will have to be better prepared than others, get creative, and surround yourself with intelligent and hardworking people.
In conclusion, starting a business in India in 2023 with minimal investment is possible. By identifying your niche, creating a business plan, getting funding, utilising online platforms, and building a strong team, you can start a successful business in India. Remember to stay focused and stay true to your vision, and you will be able to achieve success.