Startups are the backbone of the Indian economy. They have been instrumental in bringing about a change in the way we do business and lead our lives.
Startups can be broadly classified into two categories – product-based startups and service-based startups.
former is concerned with developing a new product to meet an existing need, while the latter offers services that are not already available in the market.
In this article, we will look at how to grow startups in India.
The Indian Startup Ecosystem- Current State of Affairs
The Indian startup ecosystem is a very dynamic and ever-evolving ecosystem. We have seen many startups emerging in the last few years.
The startups are often led by a young entrepreneurial generation who want to disrupt the way things are done and create new solutions to solve old problems.
Some of the major sectors that have been disrupted by these startups are eCommerce, food delivery, healthcare, education, etc.
India is one of the fastest-growing economies in the world and this has seen an increase in investments into Indian startups as well as accelerators for them.
This has enabled more Indian entrepreneurs to start their own companies and also helped them get access to global markets which is something that was not possible earlier due to a lack of resources and opportunities for growth.
How to Grow Your Startup
Here are some of the best tips for growing startups in India
1). Make Sure the Market Needs Your Product
A startup must make sure that it is solving a problem for the market. They should have a clear understanding of the customer’s needs and what they are willing to pay for.
In order to make sure that the market needs their product, startups should put in the time and effort to conduct market research.
This includes conducting surveys with potential customers, talking with people in similar industries, and analyzing data from competitors.
It is important for startups to do this research before coming up with a solution because it would be wasteful if they spend time and money on something that nobody wants or needs.
2). Write Solid Business Plans
A business plan is a document that provides information about the company’s management, products, finances, and goals. It is a formal document that helps to provide investors with information about the company.
The plan should be written in a professional manner and should include all necessary information such as the company’s history, current situation, future plans, and forecasts.
The business plan should also include a section on risks that might affect the company and how these risks will be addressed.
Every startup needs to have a good business plan in order to be successful. It is important for startup founders to know how to write one before they start their venture.
The following are some tips for startups on how to create a solid business plan:
- Create an outline of your business plan and make sure you include all the necessary sections such as executive summary, marketing strategy, financial forecast, and management team.
- Include your vision for the company in this section and what you want it to become in the future.
- Research other companies who have been successful in your industry and include their strategies in this section so that investors can see what they need to do in order for their startup to be successful.
- Include key milestones that you need
3). Build a Strong Team
Startups are always looking for the right people to help them grow and succeed. But, how can you find these people?
There are a few ways that startups can find the right talent.
First, they can post their job openings on popular websites such as LinkedIn and Indeed. They could also post their opening on company-specific sites such as AngelList and Crunchbase.
Second, startups may want to attend startup events where they might find potential candidates in person.
Third, they may want to hire a recruitment agency that specializes in recruiting startup talent.
Finally, startups may want to contact people who have applied for jobs with them before or who have similar qualifications and ask them if they’re interested in applying again for a different position or role within the company.
4). Form strategic partnerships
A startup should think about forming strategic partnerships from the very beginning. This is because it will be difficult for the startup to grow without support from other companies.
It can be difficult for a startup to find these strategic partners, but there are a few ways that they can do this. One way is to find partners who have products and services that your startup needs in order to grow.
Another way is by looking at what other startups are doing, and identifying which ones are similar in size and industry to you.
The last thing that a startup should do when they are looking for partners is looking at their competitors.
A lot of companies will form partnerships with their competitors because they know that if one company does well, the other company will also do well.
A partnership is not just about the financials but also about how well you work with another company or individual. It is important that both parties are getting value out of the partnership and are happy with it.
5). Get your priorities straight
When you are a startup, it is very important to get your priorities right. You need to focus on the most important aspects of your business. You will have limited resources, so you need to make sure that they are used in the best way possible.
The first priority for startups should be making sure that they have a product that solves a problem.
The second priority should be marketing and sales because without customers there is no point in having a great product or service.
The third priority should be cash flow because without money you cannot do anything and the last priority should be operations and logistics.
What are the Challenges Faced by Indian Startups, and How Can They Be Overcome?
The Indian startup ecosystem is in a state of flux. In order to succeed, Indian startups need to understand the challenges they face and how they can overcome them.
Indian startups are facing a number of challenges, such as:
- The lack of funding
- Lack of talent
- Poor infrastructure
- Lack of innovation and creativity
- No access to global markets
a). Lack of funding
There are many ways a startup can solve this problem. One of the most popular and cost-effective options is crowdfunding. It has been proven to be successful in many cases and it is a great way to get started.
There are different types of crowdfunding, such as equity crowdfunding or rewards-based crowdfunding (e.g., Kickstarter).
Another way is to find investors that would provide the funding for your startup. The downside of this option is that it usually requires an equity stake in your company and you may end up selling your company before you even get started if the investor wants to exit too early on.
Another way startups can solve their lack of funding problem is by finding angel investors or venture capitalists who invest in startups with high growth potential, but it is more difficult than finding an investor.
b). Lack of Talent
This is a common problem for startups. They may have a great idea, but they can’t find the right talent to make it happen.
It is important for these startups to make sure that their idea will be able to stand out in the market and not just be another company with an average product.
One solution would be to set up a training program that teaches people how to do what you need them to do. This way, you will have a team of people who are qualified and capable of doing what your startup needs them to do.
Another solution is hiring freelancers. Freelancers can be hired for specific skillsets that are needed at the time of hiring them. This will help the company to focus on its core business without worrying about its lack of talent.
c). Poor infrastructure
Poor infrastructure is a big problem for startups. The lack of a good internet connection and the absence of electricity can make it difficult for them to get their work done.
One solution is to have an office in a different location where the environment is more conducive to work. This can be expensive and time-consuming, but it’s worth considering if you’re struggling with these problems.
Another option is to rent an office space that has all the resources you need, like the internet and electricity, which some companies offer at a monthly fee.
You might also consider joining forces with other entrepreneurs in your area if you’re having trouble with funding or finding space for your business: co-working spaces are becoming increasingly popular as they offer everything entrepreneurs need under one roof.
d). Lack of innovation and creativity
A startup needs to innovate and be creative in order to survive. Innovation is the only way for a startup to differentiate itself from its competitors, it also helps in scaling up the business.
The lack of innovation and creativity can be solved by:
- Creating an environment that fosters innovation and creativity. It means making time for ideation sessions and brainstorming sessions on a regular basis. It also means giving employees opportunities to work on side projects that they are passionate about, this will help them develop their creative skills.
- Hiring creative people at all levels of the company, like senior management, marketing team, or product team. This will help create a culture where everyone is encouraged to think out of the box and come up with new ideas.
e). No access to global markets
A startup needs to solve the problem of no access to global markets.
The first thing they need to do is identify the problem. The startup needs to find a way to get their product into new markets and they need to do it fast. They should consider going global as soon as possible, because the longer they wait, the more time they will lose on potential sales.
The next step is identifying the different ways that startups can go global and then selecting which one would work best for them. There are many options for startups:
- Developing a new product for a different market
- Partnering with an international company
- Conducting an ICO or Initial Coin Offering
- Expanding into a new market within their current region
Top 5 Resources for Indian Entrepreneurs Looking to Start or Grow a Business
There are many resources available for entrepreneurs in India who are looking to start or grow a business.
These resources can be divided into three categories – financial, legal, and educational.
- Angel investor networks
- Government grants and subsidies
- Microfinance institutions
- Incubators and accelerators like iCreate, Startup Village, TBI Startup Academy
Startup resources for entrepreneurs are usually online platforms that provide guidance and support for Indian entrepreneurs who are starting up their businesses.
These resources help them to find funding, find mentors and advisors, get legal advice and connect with other startups.
Conclusion: How To Be the Best Entrepreneur in India
As an entrepreneur, you need to be the best in everything you do. You are responsible for the success of your company and it is your duty to provide a good product or service.
The following tips will help you become the best entrepreneur in India.
- Research extensively about what you want to do, before making any decisions;
- Don’t try to do everything by yourself; ask for help from people who have more experience than you;
- Be honest with yourself and others; always follow through on your commitments;
- Give back to society, don’t think of yourself as better than anyone else.