How to Write a Good Business Plan for Start-ups in India

India’s Growing Business & Entrepreneurial Landscape

India has become, one of the fastest-growing economy across the world. It is emerging as a global powerhouse with a GDP growth of 6.5%.  This creates a dynamic market presenting diverse opportunities for upcoming businesses and startups. 

The country has further positioned itself as a lucrative business destination driven by technological advancements, a young population, government impetus, large domestic consumer market and aspiring working professionals. Additionally, the rise in digitalization has made operations easy and efficient for businesses to thrive. 

The Indian business landscape is booming with a surge in sectors such as technology, healthcare, finance, agribusiness, renewable energy, etc. The Industrial and manufacturing sector is also thriving, with an expected market size of USD 1 trillion by 2026. Verticals like fintech, proptech, e-commerce, and cleantech have been attracting massive investments. 

The Indian market is witnessing a robust growth in new business ventures. The market is majorly driven by young Indian entrepreneurs and mid-career professionals shifting towards startups & self-run enterprises. A substantial portion of working professionals are coming up with innovative business plans catering to diverse needs and evolving consumer preferences.

Job dissatisfaction among many professionals is another factor attracting them towards entrepreneurship as a lucrative alternative. 

Government Support & Initiatives to Boost the Indian Start-up Sector:

GOI is aiding startups and new business ventures with the help of several initiatives and policy impetus. These schemes provide financial support and regulatory assistance to promote startup culture among entrepreneurs. It includes financial assistance, subsidies, tax rebates, easier regulations, infra support, etc. 

Initiatives like Startup India Seed Fund Scheme help enterprises in early stages like entering the market, developing rough versions of products, and testing the stereotypes.  Startup India, which came into existence in 2016 has introduced a fund of fund worth Inr 10,000 Crores to support new age entrepreneurs. 

Pradhan Mantri MUDRA Yojana (PMMY) established MUDRA Bank to support micro-startups with MFIs and provide loans to small/mid-sized businesses. Likewise, under the Standup India initiative, which was unveiled in 2016, entrepreneurs from the underprivileged sections of society get access to easy loans up to Inr 1 crores. Standup India is also available for women entrepreneurs in India.  

Furthermore, the department of Electronics & IT introduced Multiplier Grant Scheme (MGS) that provides collaboration between research institutions and industries to promote R&D. Additionally, the GOI will update MSME (Micro, Small, & Medium Enterprises) criteria to include more businesses, making them eligible for government support. 

 The Investor Ecosystem in India:

• Ø Venture Capital: VC firms provide funding to startups and small businesses that have a high growth potential. These firms aid new entrants by providing them with financial resources to develop products and expand their operations. These firms also mentor new ventures with industry expertise and strategic planning. In 2024, venture capitals in India funded startups and MSMEs with a staggering amount of USD 13.7 billion. 

• Ø Private Equity: PE firms generally provide investments to established players, often acquiring a significant portion of stake in the company. They further make decisions to restructure and improve the business operations. In recent times, investors have been attracted towards the B2B segment, e-commerce, and healthcare sector. The country witnessed a PE investment of USD 24.2 billion in 2024

How to Write a Good Business Plan for Start-ups in India

India’s Growing Business & Entrepreneurial Landscape

India has become, one of the fastest-growing economy across the world. It is emerging as a global powerhouse with a GDP growth of 6.5%.  This creates a dynamic market presenting diverse opportunities for upcoming businesses and startups. 

The country has further positioned itself as a lucrative business destination driven by technological advancements, a young population, government impetus, large domestic consumer market and aspiring working professionals. Additionally, the rise in digitalization has made operations easy and efficient for businesses to thrive. 

The Indian business landscape is booming with a surge in sectors such as technology, healthcare, finance, agribusiness, renewable energy, etc. The Industrial and manufacturing sector is also thriving, with an expected market size of USD 1 trillion by 2026. Verticals like fintech, proptech, e-commerce, and cleantech have been attracting massive investments. 

The Indian market is witnessing a robust growth in new business ventures. The market is majorly driven by young Indian entrepreneurs and mid-career professionals shifting towards startups & self-run enterprises. A substantial portion of working professionals are coming up with innovative business plans catering to diverse needs and evolving consumer preferences.

Job dissatisfaction among many professionals is another factor attracting them towards entrepreneurship as a lucrative alternative. 

Government Support & Initiatives to Boost the Indian Start-up Sector:

GOI is aiding startups and new business ventures with the help of several initiatives and policy impetus. These schemes provide financial support and regulatory assistance to promote startup culture among entrepreneurs. It includes financial assistance, subsidies, tax rebates, easier regulations, infra support, etc. 

Initiatives like Startup India Seed Fund Scheme help enterprises in early stages like entering the market, developing rough versions of products, and testing the stereotypes.  Startup India, which came into existence in 2016 has introduced a fund of fund worth Inr 10,000 Crores to support new age entrepreneurs. 

Pradhan Mantri MUDRA Yojana (PMMY) established MUDRA Bank to support micro-startups with MFIs and provide loans to small/mid-sized businesses. Likewise, under the Standup India initiative, which was unveiled in 2016, entrepreneurs from the underprivileged sections of society get access to easy loans up to Inr 1 crores. Standup India is also available for women entrepreneurs in India.  

Furthermore, the department of Electronics & IT introduced Multiplier Grant Scheme (MGS) that provides collaboration between research institutions and industries to promote R&D. Additionally, the GOI will update MSME (Micro, Small, & Medium Enterprises) criteria to include more businesses, making them eligible for government support. 

The Investor Ecosystem in India:

• Ø Venture Capital: VC firms provide funding to startups and small businesses that have a high growth potential. These firms aid new entrants by providing them with financial resources to develop products and expand their operations. These firms also mentor new ventures with industry expertise and strategic planning. In 2024, venture capitals in India funded startups and MSMEs with a staggering amount of USD 13.7 billion. 

• Ø Private Equity: PE firms generally provide investments to established players, often acquiring a significant portion of stake in the company. They further make decisions to restructure and improve the business operations. In recent times, investors have been attracted towards the B2B segment, e-commerce, and healthcare sector. The country witnessed a PE investment of USD 24.2 billion in 2024

• Ø Startup Accelerators: These are structured programs that support early-stage companies to grow their operations rapidly, providing them with financial support and mentorship. Accelerators provide a structured environment and accelerate growth for startups in return for equity. 

India boasts a vast network of accelerators and incubators reaching 875, with a combined portfolio of 6,300 companies. The top five startups that operated through accelerators raised a total funding of USD 2.76 billion in 2023.

What is a Business Plan and How it Can Help? 

In India, for a start-up to succeed, it is essential to have a business plan. A business plan is a detailed document that outlines the business objective, current activities and a detailed roadmap of a venture.  Any investor, VC or lending institution need a business plan before making any investment. 

Besides, fund raise, a business plan can also be helpful in numerous other activities. This includes assessing the viability of an idea, to understand risks in the market and to evaluate steps to mitigate them. Not just startups, but also well-established businesses need a business plan as it helps them to get a clear picture of their current activities and keep the entire team focused. 

There is no standard way to produce a business plan, as it can vary. It can be prepared either as a pdf report or a corporate presentation. Similarly, the size of a business plan can also vary. It can either be lean piece or a very detailed one, subject to the requirement of the client. 

How Can The India Watch can Help you with a Business Plan 

As discussed, for burgeoning Indian startups seeking funding and strategic partnerships, a well-structured business plan is crucial.

The India Watch offers specialized consultancy services to develop compelling business plans that resonate well with investors. The scope of a business plan can include but are not limited to the following: 

• Ø Business summary 
• Ø Product information 
• Ø Market & competition analysis
• Ø Market size estimation & total addressable market (TAM)
• Ø Key consumer segments
• Ø Growth strategy roadmap & positioning plans
• Ø Marketing & sales strategy
• Ø Revenue projection
• Ø In-depth regulatory & policy insights
• Ø SWOT Analysis
• Ø Financial projections and ROI 
• Ø Key success factors, growth enablers, risks & challenges

For any further query, feel free to drop us a mail at info@theindiawatch.com