Restaurant Business Plan – Do’s and Don’ts

Restaurant Business Plan

Are you set for opening your restaurant? Is this the plan you had a long time back but 

could not implement it because you were afraid of risking your money and time into it?

Well now, this might be the right time to sit down and draw up an idea to open your own restaurant business.

Don’t worry, we are here to assist you to produce the right direction for achievement and grow your restaurant business without worrying about the risk factor.

No doubt it is a tough business which will consume much time and money but That’s Where we will guide you with a modernized restaurant 

business planning helps and makes your business a successful run in this restaurant market.

To know more about business planning you should read our this article- how to make a business plan ?

First lets know what are the drawbacks in failure of some restaurant business.

Hey, wait! We do not want you to discourage you or any aspiring restaurateurs out there, or to lower the morale of the Present ones,  however, we tend to believe that “An ounce of prevention is worth a pound of cure”.

So let’s go through it first:

Poor location planning and rent:

 Location is the key factor before you set-up your restaurant business

some restaurateur spend a lot in renting for the location inside the busy locality and end of being in loss because of high rent.

it is important not to overspend. Often good locations come at a high price, and restaurants are not able to cover their costs.

If Also they get the right location they fail to find their right audience also analysis the location properly before setting up your restaurant business.

Inexperience of owner:

Well it is said that anyone with financial support and time can open a restaurant business but it is very important for the owner to have

The right planning and idea for the restaurant business. lack of inexperience leads to failure in business.

Staff management problems: 

Untrained Staffs and thefts can lead the restaurant business down within some time.

Many restaurants fail because of poor staff management this will harm your business and be the major reason for failure because it’s all about customer satisfaction at the end.

Poor menu structure:

Some restaurants have a complicated menu which is not structured well and creates confusion in the customer’s mind and dissatisfaction of customers leads to a loss in business.

No involvement of the owner:

Often restaurateur does not have experience in this business market and end of depending on the manager of restaurants. they only think

investing money is enough for the long successful run for business, but this also leads to the breakdown of the business.

Lack of analyzing:

The main thing restaurant fails because of lack of analysis of the market which dish isn’t doing well to exclude those and to bring a new dish which will be liked by the customers and in trend dishes.

Also, it is the responsibility of the higher management to identify the loss of business and bring on solutions to sustain in restaurant business market.

At last, the main thing in today’s world is the marketing of your business to the right audiences.

All the things are done great location, well known trained staff, good menu structure but still, restaurants fail…. Why?

Well they forget the power of marketing in today’s generation. your business won’t make an impact in the restaurant market if it is not marketed properly in both online and offline.

So Now hopefully you understood Why some restaurant fails.

Now keeping this in mind let us guide you the business plan you should have before and after 

Market Analysis:

Before establishing your restaurant it is important to make the market research of what customer likes to have, What should be the proper location for your restaurant business 

what is the trend dishes for restaurant business all the reports from some successful and failed restaurant business 

and then have a conversation with the expert to make this business plan a success.

Branding of your Restaurant:

From the information of reports you can have a clear idea of how to step ahead in the process. It is important to make a presentation of your restaurant brand by introducing your goals some unique selling points of your restaurant your right ambiance of restaurants etc. 

In this stage, you have to also invest your time and money in marketing your restaurant business.

Proper Menu Structure:

Your Menu is the important element of your restaurant business a well-structured menu will drive customers and your customer won’t be confused

also, your menu design should be eye-catching and it would be great if the design matches the theme and ambiance of the restaurant then it will be very good for your business.

This means you are focused on every detail of the restaurant. the menu should contain every information of the dish in a summarized way so that customer should have an idea 

what he is ordering.

Staff Hiring:

It is important to hire a well-experienced staff in your restaurant business because these will be the people who will be interacting with the customer.

Customer Satisfaction should be the main goal of any kind of restaurant business. 

Restaurant design and ambiance:

The design of the restaurant will be the key attraction for the customers to drive them into your restaurant. Here you can show the customer

the creativity and thoughts you put in-to the restaurant mainly here you are showing the concept of the restaurant.

Right Location:

As we discussed before that location also plays a vital part in a successful restaurant business, it’s important that your targeted audience can come to your restaurant without facing any difficulty also analyze the location before setting up the restaurant business. 

Regular Audit:

This should be happening more often to analyze whether the restaurant is making profits or not and what steps should be taken to improves it, also 

analyze which dish is not selling and remove that dish which something new which will be liked by customers.

Marketing to and for:

Well Marketing your restaurant business to and fro is important so that to make customers know that your restaurant keeps on updating new dishes,

new offers, some festive offers, etc. It’s important that the Restaurant should be in constant presence in social networks to drive new customers.

So this is some of the guides you should be looking into before setting up a restaurant business…

Yes, it is a little long but it’s worth your time reading.






How Artificial Intelligence and Machine Learning are impacting modern business era?

How Artificial Intelligence and Machine Learning are impacting modern business era?

In the last few decades technology has become a very indispensable part of our day-to-day lives. It has taken over almost each and every section of our basic necessities. Individuals’ more than half life has been dependent on the technology. 

From our day to day life tour business environment, everything is rapidly becoming the user of Artificial Intelligence. We are somewhere among the most comfortable generation that we are witnessing the services and receiving the help of Artificial Intelligence to make our lives easier. 

Now every small and big entrepreneur wants to impart the technology in business to get a hype. The maximum part of our technology has been covered by Artificial Intelligence and machine learning. So, we are preferring them more to create a healthy and successive business graph.

But having said that every coin has two aspects, it also has. On one hand Artificial Intelligence and Machine Learning has made our lives and work easier than before at the same time on the other hand it is decimating our lives in some aspects. We are using the maximum part of AI in our business environment. So, definitely we will be going to get maximumly positive or negative results in our businesses. 

This article is all about how Artificial Intelligence (AI) and Machine Learning are impacting modern business era? So, before we start to learn, we all must know what is Artificial Intelligence?

What is Artificial Intelligence?

A part of computer science that helps human as a human. It works to makes things faster with the help of technology. It fusses-over to create more most intelligent machines of world. We can have some examples of AI that we use it on a daily basis, eg., Speech recognition, Cortana, Siri, Google Assistant are well utilized and known examples of Artificial Intelligence. 

Let’s learn the both aspects of Artificial Intelligence and machine learning’s impact on our business era.

POSITIVE IMPACTS 

  • Digital Assistants
  • New innovative businesses
  • Accuracy that helps in decision making
  • Economic Growth

Digital Assistants

Digital assistants have become so common that we don’t even realize that we are surrounded by it. It has created a huge scaled market in terms of users and sellers.

According to the survey so many facts have come in the light. 

According to the report of 2018 digital assistants’ popularity will cross 1.8 billion by 2021 worldwide. Out of them 54% have agreed that digital assistants have made their lives easier. Estimated size of Virtual Digital Assistants’ (VDA) market worldwide is 8.56 billion USD. It may go 15.79 billion USD by 2021.

We use digital assistants in making our work faster and easier like

  • To get to know about traffic conditions of a place where we need to go.
  • To get reminders of meetings and personal appointments.
  • To read out emails and messages.
  • To type something faster than a human typing speed of typing.
  • To order goods, foods, and so more.

Digital assistant seems fun in use and the language it speaks is so friendly and understandable. Through the help of digital assistants’ children also learn to speak clearly.

Estimated Size of the virtual digital assistant (VDA) market worldwide

YearSize (In Billion USD)
20173.00
20185.21
20198.56
202012.12
202115.79

New Innovative businesses

Artificial Intelligence begot a market of innovations. It forced humans to utilize their creativity and create some innovation that world actually need. Artificial Intelligence brought so many innovative business innovations. 

Google Assistants, Siri, Cortana, Robots are all the innovative begets of Artificial intelligence only. But we have been so much used to of all these besides robots that all have turned into common innovation.

If we talk about new recent innovation then you must be knowing about ‘Google Tulip’.

If you have heard about it then please let yourself know completely about it. If you haven’t heard yet then please go and google about google tulip. 

Google Tulip is a beget of google that communicates to flowers and fulfill their requirements of water, sunlight and etc. with the help of AI. It was tested in April 2019 and it was successful attempt have had by google. 

It was innovated for tulips in Netherland, a country which produces 12.5 billion flowers per year which is around 50% of all flowers in the world, Scientists believe that flowers communicate to each other by their roots and send signals to each other. Every other person of Netherland wants to keep tulips at home in vases. But it becomes so difficult to keep them fresh and alive.

Accuracy that helps in decision making

Machines takes decisions based on set of algorithms, previous records and data. So, the rooms for errors reduces so much. It creates an environment of accurate outcome with no error which helps in decision making.

When human takes a decision, he connects emotions in decision making and that may hamper business. But machines have no emotions. They work on set algorithms, not on human emotions so they work efficiently in less span of time.

Economic Growth

Artificial Intelligence has not only played a big role in business but it gives a good hype in our economic growth as well. With the induction of AI, its study and education has also needed to be getting started. That creates one more option for students. 

AI begets innovations and innovation is something that every country or nation wants to implement for the public. That brings economic growth.According to the market research firm Tractica, the global artificial intelligence software market is expected to experience massive growth in the coming years, with revenues increasing from around 9.5 billion U.S. dollars in 2018 to an expected 118.6 billion by 2025. (Information taken from google)

NEGATIVE IMPACTS 

  • Dependency 
  • Unemployability 
  • Expensive
  • No room for creativity

Dependency 

On one hand where AI is giving a very good impact on our businesses at the same time on the other hand, it is increasing our dependency on machines. For Artificial Intelligence and machine learning technologies we shall have to dependent of machines. That can hamper the productivity.

And at the same time humans are becoming lassitude by having all works done by being at the same place through google assistants like Alexa.

 Unemployability

At one place where Artificial Intelligence is saving our so much time at the other place it is giving big downfall to the employability graph. It is stealing lacks of people’s jobs what they do instead of Google assistants.

As machines can work for long 24*7 hours without a single break. So, in that case businesses would certainly prefer to appoint machines and would invest in them instead of humans. That may bring a huge sales unemployability. We can take a very practical and real example of this. In upcoming years driverless cars will be owing on roads. Thousands of drivers shall have to lose their jobs.

 Expensive

Though AI is giving helpful results in making lives easier, but it is a very expensive proposition. It is not going to be easy to implement in low economical fields. For example, driverless cars are going to be very expensive than normal cars. 

A middle-class man cannot afford it for his comfort. Its maintenance, proceedings are very expensive, we can simply see the robots, robots are highly maintained part of Artificial Intelligence. However, low fund industries and companies cannot entertain Artificial Intelligence.

No room for creativity

Artificial Intelligence works on algorithms, previous reports and data. It works and gives commands as we set machines to command. It doesn’t have a mind to think creatively. SO somewhere AI steals creativity from business. 

If your business is completely entertaining AI then it would be very difficult to keep it creative for a long time. Machines work efficiently not creatively. It performs as we command them to perform.

CONCLUSION

Definitely Artificial Intelligence can be the biggest change in mankind but at the same time damage that we’d face through this cannot be ignored. AI has power to eradicate maximum poverty of this world. It can explore new dimensions and if we use it precisely and in a useful way changes are adoptable and explorable.






What is a Joint Stock Company ? 10 Very Important Things to Know

What is a Joint Stock Company ?

Here we always talk about start-ups, businesses, companies,and investing in different businesses.

If a person doesn’t have enough money to form a company what should he do? well, that’s where the joint stock company kicks in.

Now lets know what is a joint-stock company?

A Joint Stock Company could be a voluntary association of a group of people to hold on the business.

It’s an association of more than one person who contributes investment into the organization i.e termed as “capital”. 

These people of this group are members of the corporate/organization. 

The partition of the capital of every member in the joint-stock company is known as “share” and each member holding such share is termed “shareholders” and therefore the capital of the corporate/organization is known as “share capital”.

Still, confused? 

Let’s breakdown this down-

In simple words, a joint-stock company is described as a business organization where more than one people are part of the organization or you can also say more than one person invested/owned the organization.

These people are called the shareholders of the joint-stock company. These shareholders own a certain amount of stock in the company known as their “share”.

Any joint-stock company involves shares, which also are encountered as public companies. The holders can either buy or sell the shares after their liking.

After understanding what’s a joint-stock company, it’s important to say that the shares in these sorts of organizations accompany obligations. 

Unlike ordinary or preferred stock, where there aren’t any obligations involved, joint-stock company shares require the holders to vote directly within the company’s management decisions.

Over that, the holders can intervene in how the company’s outstanding debts are handled.

Now that we have understood what is a joint-stock company lets go through some of the features of the joint-stock company there are many features but we will go through some of the important features-

1. Artificial Person: 

A joint-stock company is formed by the law-making body. It is viewed as an’ artificial human’ without any physical form.

Although a Joint Stock Company as a legal person is invisible and intangible, nearly all the rights of a natural person are enjoyed by a company.

It can sign contracts with other parties, buy and sell assets and properties, appoint people as Executives, and employee also an artificial legal person is controlled through the board members of the joint-stock company which give all its rights.

2. Separate Legal Entity: 

Joint stock company has separate legal identities and representatives relative to partnerships or ownership.

If a corporation is a joint stocked, as already stated, it receives a legal identity. There is no special responsibility for a member of a joint-stock company.

Therefore, in terms of financial or business activities, the joint-stock company will not rely on its members because they will be led by the Management Board.  

Its shareholders will not be held responsible for any conduct of the joint-stock company.

3. Limited Liability: 

In the joint-stock company, partners are generally limited throughout liabilities by assurance or shareholding. 

If a shareholder has paid the full amount owed for his stock previously, he will not be responsible for any further for the company’s debts. 

Nevertheless, the responsibility for sole ownership and association is infinite, and the latter is shared and multi-faceted in the latter situation.

4. Perpetual Existence: 

Unlike a corporation or single operating interest, the joint-stock company has a perpetual feature. 

Once an entity is created, it will operate until it is officially liquidated for an indefinite duration. In the case of the business, the slogan “men may come and men go but I go on forever”  But the demise of a sole trader concludes with a sole business issue and any members of the partnership must, in the case of merger, death, resignation or insolvency, split the firm.

5. Limited liability of shareholders: 

The responsibility of the owner reflects the disparity in a joint-stock company unlike other companies or a partnership. to pay the liability of the corporation, the properties belonging to the group owners can not be liquidated in a joint-stock company.

The liability of a creditor is restricted, and there is no position for the amount of debt here.

6. Common seal: 

Since a joint-stock company is an artificial legal entity, the board of directors controls its roles, meaning that approvals are common.

Standard seals are engraved and bear the name of the company, but the board of directors take its decisions. 

The only things that bind the organization to a contract are the standard seal and the signatures of the members.

7. Transferability of Shares:

In joint stock company representatives of a collective corporation shall be entitled to openly move their shares as provided for by the laws of the organization of the company.

The private company representatives do not, though, obtain this right.

8. Separation of Ownership from Management: 

In a joint-stock company the owners are held in a corporation, while the administration of the company’s operations is in the possession of the Management Board.

This is because a large group of owners distributed over a large area can not collaborate regularly for the corporation. Shareholders, therefore, appoint their representatives as managers to manage the affairs of the company.

9. A Large Number of Members: 

In a joint-stock company, the maximum number of members is not limited. Therefore, huge capital can be brought up.

Even an ordinary man can spend his money in a large company and benefit from it.

10. Distribution of Loss and profit:

There are large numbers of shareholders in a joint-stock company. A significant number of members are at risk for total losses and benefits in profits owing to a business.

Unlike a limited partner of a public company will accept a very small failure probability that is confined to its stock’s face value.

Let’s dive into some advantages and disadvantages of a joint stock company-

Advantages:


1. The main benefit of joint-stock corporations is the limited liability of all shareholders. 

2. The liability is restricted to the outstanding sum of your stock, which represents a major benefit. 

3. The shares are transferable from a joint-stock corporation. It ensures that if a person wishes to sell it on the market or in a public listing, he or she can do so and transform it into cash. 

4. The continuous succession of shared stocks can be perceived to be a great advantage because the assets can be exchanged. 

5. To manage all the activities, a company hires a board of directors. The Board is elected by highly qualified and talented people and this results in inefficient management. Furthermore, a company often has great resources, allowing them to employ the best talents and professionals. 

6. Joint-stock companies have huge budgets, and experts can be employed to carry out the activities associated with them.

Disadvantages:

1. The formation of a joint-stock company is a very long and time-consuming process.

2. It is a costly process and the main disadvantage of such enterprises. The usually long period lasts between a few weeks to a few months. 

3. The Company Act requires public records of all public companies. This implies a large lack of secrecy as the ownership of a joint-stock company is public. 

4. Joint stock firms comply with a variety of strict regulations and rules that greatly reduces their rights.There is also a restricted operation of joint-stock firms.

Now, let’s know how the joint stock company gets formed?

It happens mainly in 5 stages let’s get into details:

Promotion: 

Promoting a company applies generally to all operations that have to be embarked on to set up a new business entity to produce or distribute some goods or services to the public.

It starts by conceiving a business idea or finding a possibility to do business,evaluating its feasibility and starting the business unit with the necessary steps.

The problem is whether or not all the basic requirements including property, building, raw materials, equipment, machinery, etc. are usable.

A promoter could be identified by an individual or group of individuals who think of a new business, determines its viability and takes the required steps to coordinate the basic requirements to create a business unit such as a company and put it in action.

He designs the concept of a business enterprise, analyzes the potential, establishes a tentative organizational model, gets the requisite people, equipment, machinery, and money together, and launches the firm.

Incorporation:

To carry out its business without registering, a sole owner or partnership corporation may be formed.

Nevertheless,a corporation can not be founded or allowed to operate without registration.

In reality, only when registered with the Registrar of Companies a company comes into being. The promoter should take the following actions:

    a: Approval of Name: The name chosen for the organization will ensure that it does not suit any other company’s name. For this, the creator will fill in and forward to the Company Registrar the “Name Availability Form” together with the fees needed. At the top, the term will contain the

words ‘ Limited ‘ or ‘ private Limited. ‘When authorized, the promoter may continue with other incorporation formalities.

    b: Filing of Documents: Following the approval of the name, the promoter applies for registration 

to the Registrar of the Companies of the State in which the Registered Office of the company is located.

             The following documents must accompany the application for registration:

                 * Memorandum of Association (MOA)

                 * Articles of Association (AOA). 

                 * A list of members who have agreed to become Directors of the joint-stock company with their addresses etc.  

                 * Written consent of the proposed Directors to act in that capacity, duly signed by each Director. 

                 * A copy of the letter of authorization from the company registrar. 

    c: Payment of Filing and Registration Fees: The Registrar will also check all documents and if he finds them correctly he will issue a Certificate of Incorporation, which will be paid at the prescribed rate for a long term. The business is made available when the certificate is released.

So this certificate may be called as the Birth Certificate of a Joint Stock Company

Raising capital or subscription of capital:

After the company is incorporated, the next stage is to raise the necessary capital. 

In the case of a private limited company, funds are raised from the members or through arrangements from banks and other sources.

 In the case of a public limited company, the share capital has to be raised from the public. 

Commencement of business:

In case of a private limited company, it will automatically start its business as soon as it is registered. Nevertheless, 

in case of the public limited company a certificate, recognized as ‘ certificate of commencement of business’, must be received from the Registrar of 

Companies before starting their service. To that effect, a document shall be sent to the Registrar of Companies with the following declaration.

Now, this is the process to form a joint-stock company.

Let us know in the comment if you like the article or not.

Thanks for reading

Have a good day.












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Founder of Zomato Deepinder Goyal on its Growth, Zomato Gold, Food delivery and its Expansion – Zomato turns 11

Founder of zomato

Zomato started off as an online service platform that scanned and put restaurant menus back in the day. They have now diversified into a food delivery company. 

They have now expanded to 24 countries and serve almost 10,000 cities globally. 

On its 11th anniversary, CEO Deepinder Goyal said, “Every anniversary makes us proud of what we have achieved yet, acutely aware of how much there is left to do.”

Articles you must read – Restaurant Business Plan

Business Performance:

The burn rate of the company has reduced by 60% of what it was 6 months ago. However, it reported a loss of $294 million in FY 19. 

Deepinder said, “We achieved tremendous results in optimizing our costs, without affecting new product launches or innovation. We will shoot for market leadership, and simultaneously steer the business towards a more sustainable P&L”. 

Currently, Zomato has 3 main services, Food delivery, Dining out and Sustainability. 

Zomato currently offers food delivery in more than 500 cities across India. 

The order volumes in the top 15 cities have doubled in the last one year. The remaining cities contribute about 35% to the order volume.

Deepinder said that, “Our food @ work business is growing well, and some very large accounts are slated to go live soon. We are already doing 3 million orders a month for food @ work.

Zomato also claimed that its average monthly transacting users have increased by 211% to11.2 million users. While, the average monthly active restaurants have increased by 177% to 119K restaurants. 

Known as the “backbone” of Zomato’s services, by Deepinder, the average monthly active livery partners have increased by 308% in the first half of FY 2020. Currently there are more than 200K delivery partners associated with Zomato. 

Restaurant listing and Zomato Gold:

The restaurant listings on Zomato has gone up globally from 1.2 million in September 2018 to 1.5 million in September 2019. Half of the increase comes from India alone, said Deepinder. 

One of the primary products of Zomato, Zomato Gold, saw its users increase to 1.4 million. 

The cities in which Zomato Gold is applicable has increased by 34 cities to 54 as on September 2019 as compared to 20 cities in September 2018. 

From a restaurant owner point of view, gold is not for everyone, said Deepinder. He added, “We always encourage restaurants to determine if participating in Zomato Gold makes commercial sense for them. Some restaurant owners in India campaigned against Zomato Gold last month (#logout campaign); We engaged with the restaurant owner community and rolled out some changes to the program that were widely accepted by most restaurants, as well as users – Thus creating more balance in the program. A number of restaurants who have returned to Zomato Gold post these changes have seen a 100% increase in revenue.” 

In the last 6 months, Zomato has carried out over 65,000 orders for 2,200 restaurants across Delhi and Bengaluru. 

Zomato acquired Hyperpure in 2018. They provide fresh and good quality ingredients to its restaurant partners. They have projected a growth of 10x in the FY 20. 

In July, the food aggregator also started collecting used cooking oil from restaurants, processed it and then delivered it to biodiesel manufacturing plants. Zomato collects 130 tonnes of used oil per month from about 1000 kitchens in Delhi – NCR. They are planning to expand to 5 more cities from October. 

Useful Article –

Restaurant Business Plan 

Govt’s definition of startups just became more comprehensive. Here’s how:

Govt’s definition of startups just became more comprehensive. Here’s how:

The Department for Promotion of Industry and Internal Trade (DPIIT) released a gazette notification in February. 

The definition of startup is broader compared to the earlier definition under ‘Startup India, Standup India’ scheme.

According to the new definition, an entity will be considered a startup:

  1. Upto 10 years from the date of incorporation.
  2. If an entity’s turnover hasn’t exceeded INR 100 crore in any financial year from the date of incorporation.

In comparison to the definition of startups given earlier in DPIIT’s April 2018 gazette notification, An entity was considered a startup upto a period of 7 years from the year of incorporation and it’s annual turnover was not to exceed INR 25 crore in any of the financial years from the year of incorporation. 

Both the old and the new definitions require the entities to work on a business model with a high potential of innovation, development, employment and wealth generation. 

Minister of commerce and industry, civil aviation, Suresh Prabhu said they will simplify the process for startups to get an exemption on investments under Sec 52 (2) (viib) of Income Tax Act, 1961. This provision under this section is called angel tax. 

What is a Lean Startup ?

What is a Lean Startup?

  • Lean startup is a method used to build businesses based on the beliefs that the entrepreneurs must investigate experiment and test as they develop the products. 
  • It is basically Customer development + Product development. 

10 Important points about lean startup:

1. Lean startup uses validated methods and a hypothesis to assess consumer interest. This will help you to understand the needs and demand of the market. Hence, you can produce accordingly.

2. Lean startup gives a lot of importance to customer related information such as product popularity, Lifetime customer value (Profit attributed to the future relationship with a customer) and customer churn rate (Percentage of customers lost during a specific period).

3. In a Lean startup, experimentation is given more prominence than having a fixed plan. 

4. Lean startups will release their products in a small quantity in order to assess the customer reaction to the product. 

5. The Pivot – A pivot is not necessarily a failure. It means you will change one of the main hypotheses that you had implemented. There are different types of pivot. They are:

  • Zoom in pivot – A single feature in the product now becomes the whole product.
  • Zoom out pivot – It’s the opposite of zoom in pivot. A whole product becomes a single feature in something bigger. 
  • Customer segment pivot – The product was right but the customer segment targeted was not. Here, the product remains the same but the segment changes.
  • Value capture pivot – Changing how value is captured changes everything in the business. (Cost structure, product, marketing strategy, etc)
  • Technology pivot – A new technology can substantially reduce the cost, increase efficiency or performance and allow you to keep everything else the same. (value creation, customer segment, etc)

6. Small batches:

One of the biggest advantages of working in small batches is problems can be identified at a much lesser cost. 

For example – If there is a defect in the physical part, stopping the entire production line can be avoided. 

7. The Andon cord:

The key to the Andon cord is that it brings work to a stop if there is any big problem that requires it to be investigated. 

The activation can bring the production to stop if there is a big issue. This will help the management because it will help in reducing extra cost and increasing the quality too. 


8. Kanban:

Kanban is a visual system for managing work through a process. The goal of Kanban is to identify potential problems in your process and fix them so that work process can be smooth without any bottlenecks.

This is also helps in saving money as it helps in recognizing the problem at an initial stage.   

9. The 5 Whys:

Using the 5 Whys technique helps you get close to the root cause of the problem. It’s a simple and a powerful technique. 

This technique is particularly useful for startups, as it helps them to find the optimal time and speed for making improvements to the detected problems.

10. Minimum viable product:

A Minimum viable product is a product with just enough features to cater to needs of the early customers and this will help in providing feedback for future product development. 

These were some important points about lean startup. Hope you liked it. ☺  

Also read about startup india here-

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The Journey Of Zomato

The Journey Of Zomato

“Creative thinking lead to great business ideas”. One such similar story is of the online food delivery company Zomato. 

The restaurant search service started as Foodiebay and changed their name from Foodiebay to Zomato in 2010. 

Zomato started as a restaurant search platform. Now they also provide online food delivery service to its customers. 

  • Where did the idea of Zomato come from?

Deepinder Goyal and Pankaj Chaddah were working at Bain. They got the idea of starting a company like Zomato when they saw a long line in the office canteen for the menu card. 

They wanted to find a solution to this problem. This is how Foodiebay was born. Foodiebay scanned the menu of the restaurants and posted it on the private network of the company. 

Foodiebay started as an intranet facility. After the success at the office, they opened the service to the public. 

Foodiebay started gaining more popularity day by day. The number of users and clients also increased gradually. That’s when they decided to change the name from Foodiebay to Zomato as they wanted to avoid confusion with popular e-commerce company eBay.  

  • Zomato Funding:

The website of Zomato was getting a good amount of traffic. The website was doing well. But they had to keep up with the times and develop an app soon. Unfortunately they did not have enough funds to build a mobile application. 

Zomato needed funding and that’s when Sanjeev Bikhchandani of Naukri.com stepped in to save the company. He was fascinated with the company’s ideas and he invested around $ 1 million.  

Presently,  Zomato has raised a total of $755.6 million in funding over 13 rounds. Their latest funding was raised on March 1, 2019 from a corporate round. 

  • Zomato Business Model:

Key Activities of Zomato: 

  • Provides restaurant search service.
  • Online food delivery service.
  • Provides restaurant ratings and reviews. 
  • Collects data on food menus, contact and location of restaurants to provide relevant information to users. 

Value Proposition:

  • Bridges the gap between consumers and restaurants through efficient technology which saves time and cost.

Customer Segments:

  • Users who use the app to find restaurants and various cuisines.
  •  Customers who order home.
  • Restaurants who want to reach out to their target audience. 
  • Market research companies.
  • Database companies. 

Channels: 

  • Mobile App
  • Website

Revenue Streams:

  • Advertising – Advertising on their website and app generates a significant amount of revenue. 
  • Food delivery – Home delivery of food that is ordered online.
  • Subscription – Subscription of Zomato gold. 
  • Commission – Cut from online and offline orders from their side. They charge anywhere between 5% – 20% of the order value. 
  • Consulting – Provides business consulting and data analytics services to their clients. 

Zomato’s success did not happen overnight. They created a business model which played a major part in building the brand it is as of today. 

Zomato has grown extensively from 2008 and has come a far way. They have their presence in more than 500 + cities and aim to grow even bigger. 

Zomato has always catered to the needs of their customers. This is one of the main aspects that has helped them grow.

This is just the beginning of their success story. If they continue with this kind of hard work, dedication and innovation, the company has the potential to make it really big.   

10 Benefits of Working in a Startup

When you think of working in a startup, do you think it’s fun or long hours of slogging? There is no correct answer to this. Both of them could be true. But it’s important to not overlook the benefits of working in a startup. 

Before taking a final decision, don’t forget to consider these benefits of working in a startup. 

1. You’ll get to work with passionate entrepreneurs:

If you work in a startup, you’re going to be managed by passionate and talented entrepreneurs who have gambled everything for fulfilling their dream. Working under them will teach you more than you could have ever imagined and their guidance will take you places.

2. Wear many hats:

As a startup employee, you’ll be designated with many other roles outside of your job description. Although this could mean more stress and long hours, the experience and exposure gained from doing this is cannot be experienced in a corporate. 

3. A unique growth opportunity:

Best of the candidates are not motivated and driven by money. They are motivated by the opportunity to learn and grow. They understand that knowledge is money. In a startup, they can develop new skills and do things they wouldn’t have the opportunity to do elsewhere. 

4. Experience the startup culture:

The startup culture is more chill compared to the corporate culture in terms of dress code, rules and employee hierarchy. Have a problem that is not resolved? At a corporate office, you would have to go to your boss, and he would report to his boss and so on. But in a startup, ideas and problems can be discussed with the boss directly. 

5. Work that matters:

Working in a corporate in the initial stages of your career means you’ll probably be stuck doing some work that doesn’t really have any significant impact on the mission of the company.  But each startup employee is important and has a crucial role to play in the success of company. 

6. There will be ping pong and foosball: 

Obviously this is not guaranteed but usually the startup office atmosphere is a world away from the corporate office atmosphere. And if you happen to join a startup without a ping pong table, a few e-mails and a bit of money pooling among the colleagues can do the trick. 

7. Learn how to be an entrepreneur: 

Do you have a dream of starting your own company someday? Working at a startup will help you get closer to your goal because startup employees work together. This will help you understand and evaluate the decisions that are taken at the top level, middle level and lower level. Not only that, you also learn how to deal with all types of clients and understand how day to day business matters are handled. 

8. Working in a startup can be the equivalent of doing an MBA:

In MBA, you will be learning all the concepts but not implementing it practically. In a startup, you will be implementing it practically. You will be dealing with real money and real clients. Of course doing an MBA has its own perks but working in a startup can really increase your knowledge. 

9. Flexibility:

One of the main advantages of working in a startup is flexibility. The option of work from home, option to do their work on their own schedule and find a balance so that they can spend more time with their family, friends and their hobbies.   

10. Stock options:

Many startups offer stock options along with regular salary. This is a cool option because it will make you feel like an owner of the company. This can add as a motivational factor to work harder and learn more so that you can contribute to the growth of the company. 

So, these are some of the benefits of working in a startup. Hope you liked it.  


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10 Things You Shouldn’t Do in a Startup

10 Things You Shouldn’t Do in a Startup

There is no text book as such to run a startup in the right way. Founding and running a startup successfully is not easy. 

Almost 9 out of 10 startups don’t make it past the 5 year mark.

After conducting numerous researches, they state that experienced entrepreneurs are 3x more likely to succeed with a new startup than an inexperienced founder.

Below are some of the common mistakes startups make. Read carefully to not make the same mistakes! 

1. Stop hiring the wrong people:

When your startup is new, it is essential that you hire the right people for the right role. 

You can’t afford to waste time and money on someone who is not efficient.

This doesn’t mean they are useless. You can’t judge a fish by its ability to climb a tree. 

You need to hire people who match your passion and their mindset should align with the long term goals of your company. 

2. Stop assuming that you know your customers:

When was the last time you sent out a survey to your customers? Or did a poll? Or even talked to one of them? 

If you don’t remember doing any of these, you’re in deep trouble. 

You should understand that a customer is the king. You should give them what they want. Hence, it is very important to understand what exactly they want.

3. Don’t waste money on things you don’t need:

This also applies to your personal life and not just startups!

You don’t need a big swanky office in a prime area right now. Don’t compare your startup with other startups that have a foosball table or free lunches. 

All those things are cool when you can afford it. Offering them too soon could end your startup even before it takes off. 

4. Don’t try to serve everyone:

Don’t empty your plate by trying to serve everyone because you won’t have anything to eat then. 

Your target market is not everyone. So don’t try to be everywhere trying to solve everything for everyone.  

Concentrate on your target audience and cater only to their needs first. Once you know who your product is for, it becomes easier to market it to them. 

When you market the product to the right people, the chances of boosting up your sales is also higher. 

5. Stop raising capital if it is not working out:

If you are trying to raise capital for your company, make sure you are confident about your ideas. 

Investors will invest in your company once or maximum twice if there is no consistency. 

If they lose money multiple times, you will end up having a bad reputation in the market. This can also affect getting funds in the future.

6. Raising very less capital:

Most of the startups take funding at some point. They won’t have much runway left and they’ll need some extra funding to take off. 

Raising very less capital = Too less money = Unsuccessful take off. 

So if you take money from investors, you should take enough money to get to the next level. 

7. Things you think your startup needs but not immediately:

Here is a list of things you need but not immediately:

  • A good location
  • A CFO
  • A Receptionist
  • Many employees
  • An HR department
  • A conference room
  • Policies for everything. 

8. Stop having unnecessary meetings:

A study by Clarizen in 2015 found that 46% of employees would rather do something else rather than sit in a meeting. 

Some of the things they said they would rather do included having a root canal, watch paint dry or move to Antarctica. 

Fun fact: Most of the employees spend longer time preparing for a meeting than actually attending a meeting.

9. Slowness in launching: 

Several problems could be the reasons for slowness in launching.

Some of them are:

  • Working too slowly
  • Fear of dealing with clients
  • Fear of being judged
  • Working on too many things

It is important to not be very slow as this could send a bad message to the investors. Hence, it is essential to face all the odds and come out of that zone. 

10. Poor investment management:

Money is like the fuel that is used to take the business forward. If you don’t manage money properly, then you cannot take your business forward. 

Hence, it is very important to manage your investors. If you don’t allocate your funds properly, raising funds will be difficult in the future. 

When you’re starting out, you could be confused. You would want to make it big in a short span of time. But rushing too fast can backfire too. 

So make sure you note down the points mentioned above to avoid any hiccups in your business.

So these are the 10 things You Shouldn’t do in a startup. Hope you liked the article. ☺ 

If you find difficulties in making a business plan then please read our this post – How to make a Business Plan ?

What is Startup India?

Do you have an innovative idea that you want to pursue as a startup? Then Startup India is the right platform for you!

Startup India is a plan of action that is aimed at promoting and financing startups. It is an initiative of the Government of India. The campaign was first introduced by our Prime Minister Narendra Modi on 15th August, 2015. 

The Indian government has introduced over 50+ startup schemes in past few years. Each Startup scheme is aimed to promote the Indian startup ecosystem. 

India is expected to reach over 12,000 startups by 2020.

If you’re wondering “How Startup India is helping businesses?” Here is the answer to your question. 

  1. Easy access to funds

The Government of India has set aside Rs 10,000 crores to fund the startups as venture capital. 

The government is also giving guarantee to banks and other financial lenders for providing capital. 

2. Exemption from tax for 3 years

Startups will be exempted from income tax if they get a certification from the Inter Ministerial Board. 

3. Reduction in cost

Startups will enjoy 80% reduction in the cost of filing patents.

4. Easy process

Government of India has launched a website and a mobile app for registration of startups. Anyone interested in Starting a Startup (Provide link to How to start a startup) can fill a simple form on the website and upload the required documents. The full process can be completed online.

5. R&D Facilities and opportunities

New research centres will be set up to provide facilities and opportunities for startups in the R&D sector.

6. No time-consuming registrations

Numerous compliances have been simplified to save time and money for startups. 

7. Apply for tenders easily

Startups can apply for government tenders. They are exempted from the criteria of attaining a particular turnover. 

We have written a very interesting article about lean startup .

Follow the link to read that

http://liftmystartup.com/what-is-a-lean-startup/

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