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Whoa! You are an entrepreneur? So are we! You are from India? Hey, so are we! Okay now, why did I do this short shout-out? You will know it soon. But first of all, tell me. Isn’t it awesome to build something of your own from scratch and to see it solve a specific problem in society? Yes, I am talking about building a startup, duh!

I know, right! Entrepreneurship can be an exhilarating journey. You are your own boss. You choose who to work with. And best of all, you get to make a living by doing what you love. A win-win, for sure!   

But here’s the thing – you can’t ignore the challenges that come with entrepreneurship. Entrepreneurs all over the world face some common challenges like scaling issues, funding concerns, management snags, etc. 

But there are some problems that are unique to building a startup in India. So if you are planning to do the same, this article is for you.

Dig in and get to know about the problems of building a startup in India and also how TheCodeWork’s zero-equity Startup Ecosystem will be the ultimate rescue!

So, let’s look at some of the biggest challenges that Indian startups and entrepreneurs experience.  

Here we go!

Problems you may face while building a startup In India

Now the question is – if we already know that there are challenges in building something from scratch, then why do they still catch us off guard? Well, it’s because either we didn’t expect them at that point, or we were unsure how to respond. Or simply because we do not yet possess the tools to deal with them properly. I know we are on the same page here!

Going in a step-by-step manner. We need to understand the problems before making an attempt to solve them. Correct?  So let’s help you identify the challenges first.

Here are some of the major issues you’ll need to look out for when starting a business in India. So you can think ahead and know what to do if they do arise. 

➡ Managing finances and cash flow

They say that money can solve 99% of all your (business) problems. But let me tell you something. Getting and managing that money for your startup is going to be one of the major roadblocks that you’ll face. 

Managing finances and cash flow

While you may have saved up some cash to start your company (bootstrapping), it may not be the best thing if you are not generating healthy revenue. And you can’t just depend on the next big sales revenue to pay your bills, I believe!

So what can you do to manage your finances more efficiently? 

Well, for starters, you should:

  • Get in touch with investors to fund your idea or MVP if your idea is brand new.
  • Minutely document all your income and expenditure.
  • Strategize your finances so that there are no delays in invoicing.
  • Keep a thorough business plan in place, including funds set aside to endure the worst-case scenarios.
  • Prepare a solid pitch to draw in investors. This is probably going to be the toughest task of all. 

Finding potential investors is no cakewalk, let me tell you! You have to make the investors understand your product idea, your business model, your revenue model, and so on. 

But wait! I have good news! What if I were to tell you that TheCodeWork can make your investor hunt much much easier? Now that’s some good news when you are building a startup, I believe.

Yes, you heard that right! TheCodeWork’s Startup Ecosystem can help you identify and connect with potential investors to get you that funding you want. Cool, right?

➡ Understanding the target market

India is a land of diversity. It is a cultural melting pot with huge variations in almost everything— be it language or food or clothing. Similarly, there are bound to be a lot of differences in customer demands and expectations. 

I’m sure you agree with me on this!

Before you build a startup in India, make sure to conduct in-depth research of your target consumers also called – Market Analysis

Take a lesson from Dunkin’ Donuts who (unsuccessfully) tried to incorporate donuts into the Indian breakfast menu. Let’s just say…it wasn’t the greatest idea ever.

Understanding the target market

So, it’s crucial that you study the culture and understand your customers’ beliefs and habits before producing and deploying your product. 

Or you can always launch the most basic version of your product to test the market. A minimum viable product, so to speak. It is one of the best ways to know your customers’ wants and needs without shelling out a million bucks. Plus, you will also get some valuable feedback and advice on how to improve your product. Doesn’t that sound just great? 

Want to know more about Minimum Viable Products and their many uses

➡ Marketing (Forever and always!)

They say that all publicity is good publicity. But is it really? In this era of social media and cancel culture, you–as a startup– cannot afford any marketing fails. And marketing is a tricky business even on a good day. Bring in India’s multicultural society and diverse population, and you have got a massive challenge on your hands.

For example, Tanishq was recently criticized for violating ethical marketing norms and offending people’s religious feelings with their video ad. This kind of backlash can be absolutely fatal for a fledgling business. 


Does that mean you should avoid marketing altogether and just rely on word-of-mouth advertising? Definitely not!  

As a startup, it is critical to establish consumer visibility. You must learn how to create successful marketing strategies within a limited budget. 

Of course, TheCodeWork’s Startup Ecosystem can help with that! Reach out to us for any and all your marketing-related concerns. Let’s talk it out!

➡ Hiring and retaining talent

According to a recent Statista report, hiring good talent was the biggest challenge that most people faced while building a startup experienced in India. A bit surprising, isn’t it?

But it is what it is. 

As I am sure you already know, hiring the right employees is crucial for your startup. Not only will they form the backbone of your business, but they will also help to drive it forward.

Hiring and retaining talent

So make sure you have an efficient hiring system in place

  • Define job roles. Make sure the job description is clear and concise
  • Leverage social media for recruitment marketing 
  • Get creative with your interviewing process
  • If you are an online business, get the correct tech team to do the work for you. Outsource if needed. See, quality>>quantity.

Lastly and most importantly, do not rush the process. Take your time to find the right candidate who shares your vision. 

Until you build the perfect team, you can always outsource!

Still, looking for the right technical and marketing assistance? What is TheCodeWork here for!

➡ Legal issues

Now comes the ultimate challenge: legal issues! As a startup owner, you will have to wade through a sea of legalities to establish your company

Beware: even a small mishap can be lethal!

legal issues

Here are some common legal aspects you should look into:

  • Licenses and permits: You will need numerous licenses, authorizations, and permits to implement your ideas. And this can vary a lot depending on the type of business. Some examples include registration certificates, import and export codes, GST registration, FSSAI license, and many more. A lot to remember, isn’t it? 
  • Zonal Laws about Infrastructure: Did you know that local municipal bodies can introduce laws prohibiting the use of any property for business purposes in a residential area? Furthermore, you will need extra permissions from local authorities if you want to operate your startup from home. There are many more such local rules that you need to adhere to. So keep that in mind. 
  • Managing contracts: As a startup owner, you will go through various contracts—with employees, suppliers, and others. So here’s a pro tip: be careful when drafting and signing a contract. For reference, you can always go through sample contracts available online, which may help you draw up a good contract.

Or better still, ask for expert advice. TheCodeWork’s Startup Ecosystem is here to provide you with legal support should you need it. 

Summing it Up

Creating a startup is hard everywhere. But especially in India, where the market is as diverse as it is huge. But cheer up! This could actually be a blessing in disguise! Because you have many options for business ideas and a huge market to explore, don’t you agree?

And with the Indian government’s renewed interest in accelerating the Indian startup culture, you now have opportunities galore. 

So this is the perfect time to roll up your sleeves and get in there.  And if you have a startup idea you’d like to sound out, TheCodeWork’s team is at your disposal! Get solutions to every startup-related question under one roof with TheCodeWork’s Startup Ecosystem

Reach out to us now! Let’s talk business! 

TheCodeWork Team

Our Content Team at TheCodeWork believes in quality content. We write everything related to startups and products at large. We publish our blog every alternate Wednesday. Subscribe to our newsletter to get notified of our awesome content.

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