Do you need premises yet?
Decide whether to start from home, a shared space or your own premises, and what each one changes.
5 min read
Rent is the cost that never stops. It is due in the month you sell nothing, and it is usually signed for a year or more before you know whether the idea works. So before you look at a single shop, ask whether you need one yet.
Three ways to start
| Where | Good for | What it changes |
|---|---|---|
| From home | Services, online selling, home food, making in small batches | Almost no fixed cost; harder to be found and to look established |
| A shared or part-time space | Workshops, salons, classes, offices — anything that needs a place some of the time | Pay for what you use; less control over the space |
| Your own premises | Walk-in trade, larger production, staff who work on site | The biggest monthly cost, and the most visible business |
Many businesses that end up in a shop started at home, proved that people pay, and moved when the orders justified it. Moving later is easy. Getting out of a lease early often is not.
What customers need to see
Ask what your customer actually needs from a place:
- Do they walk in? A kirana, a pharmacy or a salon lives on footfall. Starting from home rarely works for them.
- Do they come by appointment? A tutor, a consultant or a tailor can see people at home or in a shared space at first.
- Do they never come at all? An online seller, a designer or a home baker delivering on order needs a workspace, not a shopfront.
If your customers never visit, paying for a place they can see is paying for something they will never use.
A good test: in your first month, how many customers will come to the premises? If the honest answer is a handful, start without one.
Registrations at a home address
Many registrations can be made with a home address, but they all ask you to prove you are allowed to use it:
- GST asks for proof of the business address — an electricity bill, property tax receipt or municipal khata — and, if the place is not yours, a rent agreement or a consent letter or NOC from the owner. That includes your parents' house.
- FSSAI asks for proof of the premises, and a home kitchen can be registered.
- Shop and establishment registration is a state law, and states treat homes differently. Your state's portal says whether you need it.
The registration checklists list the documents for each one.
Check your housing society's rules and your lease, if you rent your home, before customers start arriving at the door. Neighbours complaining about footfall, deliveries or noise can end a home business faster than any regulation.
When it is time to move
The signs that home has stopped working are usually clear:
- Orders are turned away because there is no room to make them.
- Customers ask where your shop is, and lose interest when there is none.
- You need staff who cannot work in your home.
- The business makes enough each month to pay the rent comfortably, and has for several months in a row.
When most of those are true, the next lesson is how to choose where to go.
Open the registration checklists below to see what each registration needs, including the address proofs, before you decide where the business will be registered.