India is home to numerous start-ups with research showing that 2-3 start-ups spring up each day in our country. We have around 38 start-ups each with a valuation of 1 billion USD calling them the unicorn club!
From a nascent start-up to a unicorn club member everyone has to go through the same procedures and steps to set up a business. Then let us dive straight into briefly understanding the costs involved to consider setting up a start-up.
For a business proof of concept (POC) to be developed, a thorough research regarding the business idea, consumer behaviour, market requirements and industry demands is essential. Bear in mind that the POC can be finalized only after all the research results are considered carefully. This can be daunting, so hiring a market research company could be beneficial.
Licensing Fees and Setup Costs
A start-up requires registration according to the law and procuring a trade license. This involves various steps and other procedures. Right from helping to choose the type of company – sole proprietorship, limited liability partnership, one-person company or private limited company; to GST registration and PF & ESI registration there are a number of procedures and steps to be followed.
There are companies now that offer CFO services to start-ups. A part of your financial undertakings can be handled by a CFO services company, like having the benefit of a shared CFO. These will reduce the costs of hiring top executives like a CFO and an entire finance department. All these can be easily done with the help of professionals at Pratique CFO services who are experienced and qualified to carry out all this.
Equipment and Supplies Costs
Every business requires minimum equipment in the form of computers, fax machines, or other heavy machines / assembly lines. An office space or a factory to start the business in. Before purchasing all these and adding it as an expense, consider leasing or renting them too. This will minimize the start-up costs and liability.
Advertising and Promotion
The new age marketing does not stop at placing a single advertisement. It requires an elaborate plan to create awareness and subsequent curiosity about the business or its products. A plan that can eventually convert the curiosity into purchasing. All these can be planned extensively with the help of a marketing company.
These are some of the basic costs that can cover the setting up of a start-up. For complete handholding and incorporation of your business contact Pratique CFO services.