How to start IT company from home in ₹20,000 (US$300)

Don’t want to leave home ? Want to work in IT ? How about your own technology company ? It’s estimated that around half of American workforce will be self employed in 2020. Closer home in India, I’m seeing a lot of startups emerging, particularly in non-IT hubs. And you don’t need a lot of money to have your own IT company.

When I talk about IT company then you need not think of creating the next Microsoft or Google; these companies became successful as they had access to world class engineers, capital investment and American ecosystem. It’s easier if you start a simple web development company. People with basic knowledge of software can do that as well. You just focus on adding value to your customers while being financially profitable and later you can think about venturing into comfort zone. You can do web development even if you have done bachelors in commerce or were into things like data analytics / artificial intelligence at an MNC in Bangalore/Noida/Pune/Hyderabad/Chennai etc. Don’t limit your vision of being an entrepreneur, if you don’t know how to make websites. Anyone can make a website, it’s easy to make them, but not overtly easy as they do come with their own challenges. If you want to target enterprise level clients then you’ll have to put in advanced features requiring expertise.

When I say that launch a web development company from anywhere, then what I’m saying is that everywhere people need websites. A doctor can have a website with services provided and timings, with SEO they can attract medical tourism patients. A roadside Golgappa seller can put their menu online with photos and special offers on it, highlighting their specialities. A pickle manufacturer can have website on products and infrastructure. The youth of today has gone online in a big way. Be it maids, rickshaw drivers, waiters, etc. the users often search on google to know about local businesses in their area, and a custom website offers more information than a yellow pages type of site. Back in 1998, I read in Chip magazine (now called digit) about a Paanwalla in Mumbai called “Muchchad” having his own website.

So if a Paanwalla is having his own website since 20+ years then why not you? It means there’s an audience for such things.

Here’s what you need to do to get your web development company up and running with minimal cost:

1.Learn the basics. There is Dynamic website and Static website. Learn to make them from scratch (you need to know programming in a language like PHP) or by using a CMS (you don’t need to know programming for basic tasks). Best is to learn a bit of PHP, then WordPress and see how you can use themes (mostly free) to make your own website. It’ll cost you ₹1000 if you search for right info on google and YouTube.

2.Make your own website. Book a domain and shared hosting using godaddy. Make it really attractive with information. Look at competitors’ websites for reference (you can do that with a google search on “web development company in <your district>”). Make sure you put original content and have royalty free photos with a blog that you’ll regularly update as it’ll help with SEO. If you have your own computer then fine else borrow it from college or friend but don’t purchase upfront. With 1 year domain, basic shared hosting and your own development it’ll cost you ₹3500 for this.

3.Go to your friends and family. Tell that you’ll make their website. If not free then do it dirt cheap so that you get contract. Don’t think about making profit right now. Focus on building a good portfolio. Since you’re doing it yourself, you’ll have to pay mainly for infrastructure and bills that can cost you ₹5500

4.Do a standard check of the work you’ve done. Make sure it’s mobile responsive (use inspect element on chrome browser), fast to load (use google page speed tool), and there are no broken links. Do rework if required, because now you’ll be showing your websites to others. This will cost you ₹2500

5.Update portfolio on your website. It will not take much time and effort to do so. See if you can get google reviews and testimonials from your friends. You can even get case studies done on your blog. Not good in English? Blog in your mother tongue, the audience for regional languages is on a rise. This will cost you ₹1000

6.Create social media pages. Facebook is very popular. So is Instagram. You can use free tools like Canva to create images on services you’re offering. Use tool like Buffer to schedule content in advance. Make sure these are adequately mentioned on your website. This will cost you ₹1500

7.Print visiting cards. Put your mobile number, website and social media names on it. Mention that you make websites. Share with your friends and neighbours. It’ll cost you ₹500

8.Remaining money you can use for growth. You can do Paid ads or free seminars for working people or travel to meet potential clients. Let people know you’re there. This won’t cost more than ₹4000

Now, with this money, wait until you start making profit, then use the money generated from that money and follow the below steps in order:

1.Register your company. I recommend Legal Dost, go to their website and drop them a message for getting your company registered. You can get your company registered before as well, reason I asked to do this later is if you want to control costs initially. So when you know that your business is getting income and you’re in it seriously, then get your company registered.

2.Create swag in your company’s name and distribute among people.

3.Expand your area. Venture into e commerce, digital marketing and mobile apps. Do this only when you have a steady income at one end and have the bandwidth to diversify. Also, try to be expert in at least one area first, and then master other domains. Do this slowly but steadily.

4.Increase your margins. When you have a good portfolio then you can dictate terms but do not do that initially. Because when you’ll contact prospective clients they’ll look at your body of work, which you’ve done earlier.

5.Implement HR policy as you hire people. Remember, hire those who’ll teach you new things and you can delegate your tasks to them. Make sure your IP remains with you, employees get salary on time and they’re utterly professional at work.

6.Be ethical. Sign contracts with detailed terms & conditions, that protect your rights well, with proper payment milestones. Use only licensed software, if Windows seems expensive then go for Linux.

7.Try to get work from abroad. It’s said that more than 95% IT companies in Chandigarh tricity rely mainly on freelance platforms like Upwork for projects and revenues. Some are immensely profitable doing purely SEO for American clients, without even touching the local market.

8.Don’t put your own money. Make sure your business will put in money for your business. If there’s a recession then you need to take few practical decisions but try not to put in your own money. I have observed what happens to health of people when they put all personal savings into failing businesses.

9.Sign up for a good CA. As your yearly revenues cross ₹20 Lakh, you’ll have to pay GST. Follow the law. Never let anyone misguide you that cheap is as good as expensive, when it comes to filing and compliance.

10.Take calculated risks. Make sure that at all times your company has enough money in the bank to pay for 6 months expenses or perhaps even more, and there are recurring sources of passive income such as SaaS or rental.

11.Think positive with a Plan B. Always think that you’re doing well. Yet, don’t overdo it. Try your best and remember that even if you don’t do well then it means god has something better in store for you. Never hesitate getting back to a job or doing something else. This will ensure that you’ll give your best shot at your venture, knowing you have nothing to lose.

Conclusion

I’ll conclude by saying that there’s nothing like good type of work or bad type of work in IT, it all depends on how good you’re at what you’re doing. If you try to ape Steve Jobs or Bill Gates then you won’t achieve your individuality. Just keep your intent right, protect your interests as well as your customers’, and the rest will automatically follow.