In today’s dynamic world, more young Indians are choosing startups over stable jobs, driven by passion, purpose, and the desire to create something of their own. With access to digital tools, government support, and global markets, it’s the best time to build a business—but the journey is full of challenges.
If you’re a young entrepreneur planning a startup, here’s a step-by-step guide to what you should (and shouldn’t) do—and how to raise funds smartly.
✅ The Do’s: What Every Young Entrepreneur Should Do
1. Start with a Real Problem
Your startup idea should solve a real problem—not just follow a trend. Start by asking:
- “Who is my target audience?”
- “What problem am I solving for them?”
- “Is my solution better, cheaper, or faster?”
2. Build a Minimum Viable Product (MVP)
Don’t wait to build a perfect product. Start small with an MVP that customers can use and give feedback on.
3. Understand Your Market
Do thorough market research—know your competition, pricing strategies, and industry trends. Use free tools like Google Trends, SEMrush, and Startup India’s database.
4. Choose the Right Co-Founder
If you plan to have a co-founder, make sure your skills complement each other (e.g., one tech, one business). Also, agree on roles and equity early.
5. Get Legal and Financial Basics Right
- Register your company (as LLP or Pvt. Ltd.)
- Open a business bank account
- Keep your personal and business finances separate
- Maintain proper documentation from Day 1
6. Validate Before You Scale
Before you pour money into growth, make sure your business model works. Get paying customers, even if it’s just a few.
7. Leverage Free Resources
Use free online tools, join incubators, attend startup events, and apply for government schemes like Startup India, MSME loans, and SIDBI support.
❌ The Don’ts: Mistakes to Avoid in the Startup Journey
1. Don’t Start Just to Raise Funds
Building a startup isn’t about impressing VCs; it’s about solving problems and creating value. Funding comes when you prove your idea works.
2. Don’t Ignore Feedback
Many startups fail because they don’t listen to users. Accept criticism, iterate quickly, and improve based on feedback.
3. Don’t Burn Cash Too Fast
Avoid spending on fancy offices, ads, or full-time hires too early. Keep a lean team and focus on sustainability.
4. Don’t Overvalue Your Startup
Avoid unrealistic valuations. Investors look at numbers—revenue, growth, traction—not just your idea.
5. Don’t Mix Emotions with Business
Friendship is great, but co-founders must be professional. Keep things transparent—especially regarding roles, money, and equity.
💰 How to Raise Funds for Your Startup
Funding is critical—but timing and method matter. Here are popular options:
1. Bootstrapping (Self-Funding)
Use personal savings or income from a job to start. This keeps control in your hands and shows commitment to investors later.
2. Friends and Family
Approach close connections for small investments. Be professional—give them clarity about risks and repayment (if any).
3. Angel Investors
These are early-stage individual investors who invest ₹5–₹50 lakhs in return for equity. Focus on getting a pitch deck, basic traction, and product clarity.
4. Startup Incubators/Accelerators
They provide funding, mentorship, and resources. Examples:
- NSRCEL (IIM-B)
- T-Hub (Telangana)
- Startup India Seed Fund Scheme
5. Venture Capital (VC)
VCs invest large sums but expect fast growth. Approach them only after proving your product-market fit.
6. Crowdfunding
Raise funds from the public via platforms like FuelADream or Ketto—great for product startups and social ventures.
7. Bank & Government Loans
Apply for schemes like:
- MUDRA Loan
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand Up India
📌 Bonus Tips for Young Founders
- Build a network: Attend events, pitch competitions, and meet other founders.
- Keep learning: Read books like The Lean Startup, Zero to One, and listen to podcasts.
- Focus on customer obsession, not investor attention.
- Don’t fear failure—it’s part of the journey.
✨ Final Thoughts
Starting up as a young entrepreneur is exciting but demanding. It’s not just about ideas; it’s about execution, consistency, and learning fast. With the right mindset, smart planning, and financial discipline, your startup dream can turn into a powerful success story.
At TheBankingTimes.in, we’re here to guide the next generation of innovators with practical advice, funding tips, and success strategies. Stay hungry. Stay humble. Start smart.