According to the Ministry of Commerce & Industry statistics;
- India has the second-largest ecosystem in the world.
- Year-on-year growth of 10-12%
- Out of 20,000 Startups in India- Approximately 4750 are related to technology & development
- With the launch of “STARTUP INDIA INITIATIVE” in 2016: 1400 new technology & development Startups in 2016 alone.
Therefore, we can say that on average 3-4 technology Startups are formed each day.
FACTORS CONSIDERED BEFORE YOU GO FOR FUNDING OF YOUR STARTUP:
- Cost of doing business
Before starting a new venture, every entrepreneur always considers the cost involved in it. Be it a capital intensive project (manufacturing), the working capital requirement (trading business) or a service provider (cab service, etc.); an initial cost is involved to set up the business.
Various costs involved: startup registration, land/building, machinery etc.
Who are your target customer & supplier? By answering this question to yourself one can go ahead and identify the demand for the product in your location. With the dawn of globalization, geographic boundaries are no more considered to be the barriers for any business. You just have to register your company online.
- Market Demographics
Demographics relate to the population and particular groups within it. This helps in identifying the target/potential customers and prepare strategy accordingly.
- Market Size
The actual size of the market is important for preparing a complete project analysis. This will display more accurate appropriations of your sales/revenue cycle.
a) Bangalore, Delhi (NCR) & Mumbai is considered to be the hotspots for these new business entrants with a share of 27%, 24% & 17% (appx.) share in total no. of startups in India.
b) According to Global startup ecosystem report 2019, Bangalore is in top 20 cities of world-leading startup destinations.
- Startup registration
Every entrepreneur who wants to start a business must be aware of various registration requirements which are required to be made before you start your trading. For example: getting your business name approved from Registrar of Companies (ROC).
a) Different business has different compliance norms related to it. Therefore, before starting your company, you should be well versed with all the compliance you have to comply with.
b) However, if you’re a startup then it is good to take some expert advice before you start your business.
- Competitors analysis
Competitors analysis is must which every business incorporate in their business strategy not only before starting a new venture but it is a continuous process to see what strategy your competitor is following and the basis on that prepare a roadmap for your business.
- Return on Investment (ROI)
After due consideration of all the above-mentioned points now you can analyse the approximate Return on investment (ROI) which is crucial for any business.
Read other blog: Private Limited Company