The plan which your friends have are not bad. But for this you should have proper planning and sufficent funds as you should have to follow the legalities and get yourself registered at various places like you have get you company registered take pan ,tan, and has to go through the complexities of varous laws.
And as you know each and every fruitful business needs time to grow and give fruit so you should have patience too.
And last I want to say that having a business or work of your own and working for yourself will be much a good decision.
Had a great future ahead.
Take a step back, and do some research on this FIRST.
Start first with a thorough SWOT analysis of both yourself and the business idea. After that put together a very detailed and comprehensive Business Plan that sets out exactly how the business is going to be set up, what funding you have, how you will operate, how you will market, and where the clients will come from.
What is going to be different about you and your business?
How are you going to find clients, when all the other similar businesses around you are seeking the same clients?
How are you going to support yourself (and your family if applicable) while you try to establish the business and make it profitable to pay you a salary?
What capital and ongoing finance do you have to start this business, hire and pay staff, rent office accommodation, pay for marketing and advertising etc etc??
How many other similar businesses are there right now in your area that you will be competing with?
As a general rule of thumb, you need to work out what your total living expenses are for a year, and put that money to one side. That relieves the pressure to some extent while you try to establish the business. At least you can then maintain a roof over your head, continue to eat, and pay for all your living expenses, though of course, you may need to live more frugally.
Secondly you will need to work out what it is going to cost to set up the business from scratch, then how much money you will need to run the business for at least a year. Very very few businesses ever make any money in the first 12 months, so if you are counting on this generating income as soon as you open the doors, then I seriously advise you to rethink this idea NOW.
We have so many postings here on CiteHR of people who have started their own businesses, and are now desperately seeking clients etc, because the business is failing. I'll guarantee that none of these people did any research first, or made sure they had funds in place to live on.
FAILURE TO PLAN IS PLANNING TO FAIL.
I have just saved you a lot of money from making a wrong decision.
The most important thing about business in my mind is never start something which you are fully aware of.
You are asking details from basic level.
The nuts and bolts of the particular business should be known apart form knowing about what licenses,infrastructure,equipment is needed.
First prepare a business plan.
Second analyse the business environment as some one mentioned -SWOT analysis.
Do not hurry up,study the field and then invest.
get into proper legal agreement with your friends and be sure that these friends will remain together when initial teething troubles begin.
People sometimes join a business thinking that it is instant passport to riches,but the illusion fades out when people understand the difficulties,ups and downs and then resolve weakens.
You need to consult a good lawyer for documentation.
You need to consult a technical expert in the same field for the technical part of the business and the financial angle for ensuring fund flow.
Proper planning is the most important aspect while starting a business.