Starting a business anywhere in the world is always exciting and challenging, not just in India. But the customer persona in India is purely different from other countries. That is why you need to understand some important points if you are starting out a business in India. While you may have a great idea, turning it into a successful business requires careful planning, testing, and execution. Here in this blog, we’ll discuss 5 important tips for startups in India that should follow. We have explained each in simple terms with real-life examples to help you relate and learn.
Finding PMF: Ensure Product-Market Fit
The first step for any startup is to ensure that your product or service solves a real problem for your target audience. This process is called the testing phase, where you test your idea in the market to see if it works. You need to ask yourself:
- Is my product solving a problem?
- Are people willing to pay for it?
- Do customers need this now or later?
How to Test Product Market Fit Effectively:
Ask for Honest Feedback:
Start with your immediate circle like friends, family, and colleagues. Share your ideas and ask for their genuine feedback. Be open to criticism because these insights can help you improve before going public.
For example: If you’re launching a homemade food delivery service, ask your friends to order, taste, and share their honest opinion about pricing, quality, and packaging.
Launch on a Small Scale:
Test your product or service with a limited audience. For instance, if you’re selling handmade crafts, set up a small stall at a local market or run a limited-time offer online. Observe how people respond, track sales, and note what works and what doesn’t.
Example of PMF: Mamaearth
Mamaearth, a popular Indian skincare brand, started by introducing toxin-free baby care products to a small audience. By gathering feedback from young parents and improving based on their suggestions, the brand expanded to a larger market and became a household name.
Pro Tips for Startups in India:
Use platforms like WhatsApp groups, social media polls, or small events to gather early feedback. This will give you insights into what customers truly need and help you refine your product before scaling up.
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Create an Organization Chart (Even if You’re Alone)
Many startups skip this step, thinking it’s unnecessary, especially when they are running everything alone. However, having a basic organization chart helps you define roles and responsibilities clearly. It’s like creating a roadmap for your business.
Why It’s Important:
- Helps you track tasks and priorities (e.g., marketing, finance, sales).
- Prepares you for team expansion when your startup grows.
- Improves focus by letting you see all business functions.
Founder/CEO:
- You oversee every function, but categorizing tasks into departments gives clarity on what needs to be done.
Marketing Department:
- Includes responsibilities like content creation, social media management, and running campaigns. For example, managing Instagram ads or posting on LinkedIn falls here.
Operations Department:
- Focuses on delivering the product or service. Includes tasks like product development, managing customer inquiries, and ensuring customer satisfaction.
Finance/Admin Department:
- Tracks expenses, creates budgets, and ensures financial discipline. It may also include handling basic admin work like invoices or payments.
Example: Paytm
When Vijay Shekhar Sharma founded Paytm, he initially handled most operations himself. However, he created an organization structure to define roles like marketing, tech development, and customer service.
Over time, as Paytm grew, it became easier to delegate tasks because the foundation was already in place.
Pro Tip for Making an Organization Chart:
Use simple tools like Trello or Notion to organize tasks. Label different departments, even if you’re the one managing all of them right now.
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Focus on a Clear Revenue Model
It’s exciting to have a great idea, but you must know how to make money from it. A revenue model is the plan for generating income through your product or service. Without a clear revenue model, startups risk running out of funds quickly.
Common Revenue Models Tips for Startups in India:
- Subscription-based: Charging customers monthly or annually (e.g., Netflix).
- Pay-per-use: Customers pay only for what they use (e.g., Uber).
- Freemium: Offering a free version with premium features for a fee (e.g., Canva).
Example: Zerodha
Zerodha, India’s largest stock brokerage platform, disrupted the market by charging a flat fee of ₹20 per trade instead of high brokerage fees. This clear and customer-friendly revenue model attracted millions of traders. Today, Zerodha is a profitable startup because of its well-defined revenue structure.
Pro Tip for every startups in India:
Research your competitors’ revenue models and see what works best for your market. Test different pricing strategies with your early customers.
In India if you are selling anything with a lower price but offer almost the same quality. Obviously you will hit the market not just in India but anywhere in the world.
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Prioritize Customer Feedback
Your customers are your best advisors. Listening to them can help you improve your product, fix issues, and build long-term loyalty. Prioritizing customer feedback doesn’t just improve your business, it also helps you stand out from competitors.
How to Gather Feedback:
- Use online surveys like Google Forms.
- Ask for reviews on social media or platforms like Google My Business.
- Interact with customers directly via WhatsApp or email.
Example: Swiggy
Swiggy constantly collects customer feedback to enhance its app experience. For example, when customers complained about late deliveries, Swiggy launched features like live order tracking and priority delivery. By listening to its customers, Swiggy gained trust and increased user satisfaction.
Pro Tip:
Treat complaints as opportunities to improve. Respond quickly to negative reviews, and show customers you care about their experience.
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Maintain Financial Discipline:
Many startups fail because they run out of money before becoming profitable. Maintaining financial discipline is essential to survive and grow. Here’s what you can do:
- Track all expenses and income regularly.
- Avoid unnecessary spending in the early stages.
- Build an emergency fund to handle unexpected challenges.
Example: OYO Rooms
Ritesh Agarwal started OYO Rooms with a budget-friendly model. Instead of spending excessively on marketing, he focused on partnering with budget hotels and offering clean, affordable rooms. This disciplined approach helped OYO expand while keeping costs under control.
Tools to Help:
- Use apps like Zoho Books or Odoo to track finances.
- Plan your expenses weekly or monthly and stick to the budget.
Pro Tip: Keep at least 6-12 months of operating costs as an emergency fund. This ensures your startup can survive during tough times.
Final Thoughts
Starting a business is a journey filled with challenges and learning opportunities. These five tips, testing your product, creating an organization chart, focusing on revenue, listening to customers, and maintaining financial discipline. Serve as the foundation for building a sustainable and successful startup.
Remember, even the most successful startups in India began small and improved step by step.
Follow these tips, stay consistent, and adapt to the market as you grow. With the right mindset and strategies, your startup can thrive in India’s competitive landscape.
