10 Differences Between Entrepreneurs and Businessmen

Entrepreneurs and Businessmen

There are many differences between entrepreneurs and businessmen but a major difference is there, which should be known by everyone who wants to become a businessman or entrepreneur.

So that major difference is that entrepreneurs always have a big new idea. 

By this they want to make money by solving some problems in people’s lives and businessmen always work on ideas which are already existing in the market and businessmen always give preference to make money rather than solving problems.

Why It is Important to Know Differences Between Entrepreneur and Businessman :-

It is very important to know the differences between businessmen and entrepreneurs.

Because after getting the real meaning of these two words, a person can relate themselves to what they really want to become in their lives and then they can start their own journey towards their goals and dreams which can be anyone either businessman or entrepreneur.

Here is the short definition of a Businessman and an Entrepreneur.

A businessman makes his place in the market with his efforts and dedication, whereas an entrepreneur creates the market for his own business. 

The businessman is a market player while Entrepreneur is a market leader because he is the first to start such an enterprise.

Here I am giving the 10 differences between entrepreneurs and businessmen:

1. In Terms of Ideas:

This is one of the big differences between entrepreneur and businessman which is in terms of ideas because an entrepreneur always has an unique idea which originates by himself only and by this he always wants to solve a big problem of society  and make money too.

An entrepreneur is always the first creator of a product, he invests time, energy and money on his own idea. 

A businessman always chooses a profitable business idea whether it is his original idea or an already existing idea, that’s why a businessman always faces a big competition in the market because many other people are doing the same thing but a businessman is the only person who can make a success out of any idea.

2. In Terms of Risk Taking:

In terms of risk taking a businessman always takes pre planned risks they don’t want to lose money and suffer from insolvency. 

That is why they always calculate profit and loss when it comes to business. 

Entrepreneurs always take unbelievable risks, usually they don’t care about losing  time and money because they would always be very passionate about their dreams. 

And when they do this with zeal, zest and passion, most of the time they get extraordinary results and great success. 

An entrepreneur is always a risk taker without calculating profit but a businessman always calculates profit first and then takes risk.

3. In Terms of Working Style: 

A businessman always does work for making profit, and their name for this world whether they are enjoying their work or not they are to do only work for better results in income.

They always want to become a big man by their money and standard anyhow.

They want to gain profit by hook or crook, businessmen always see the world as an opportunity.  

Entrepreneurs always do work which they enjoy, they always prioritise the world first and they always see the world as duty.

They always give preference to comfortability while doing any work, and always be passionate about doing something good for the world. 

Entrepreneurs often go into business for their passions rather than for profits.

4. In Terms of Customer Relationship:

A businessman usually sees their customers as his source of sales and earnings, for a businessman customers are like oxygen to survive in their business and for gaining good income. 

An entrepreneur always takes their customers as his source of duty which he has to maintain for lifetime an entrepreneur believes in maintaining relationships for lifetime rather than gaining profit. 

For an entrepreneur, customers are his companions whom he wants to make happy and satisfied by his work so he will not be compelled to do any other things for keeping them in their touch.

5. In Terms of Keeping Eyes on Competitors:

A businessman always tries hard to beat his competitors and win the competition. 

Sometimes he also considers cooperation and collaboration rather than competition to achieve certain goals. 

Entrepreneurs always learn from their competitors, they handle their competition in an easy and calm way.

They review their competition on a regular basis and face the challenge as a learning experience. 

Competitors encourage them to do more and more good work for going ahead from their competitors.

6. In Terms of Employer Employee Relationships:

A businessman hires employees and workers to grow his business and gives them targets to be completed in a specific time period. 

And he pays them for their hard work only and a businessman always maintains a worker and owner relationship.

An entrepreneur treats their employees as a friend and a leader, entrepreneurs never treat their employees as workers only, he always gives them respect and suggestions to do work in a good manner and invites them to help them grow.

7. In Terms of Money Making Mindset:

In terms of money making mindset a businessman is always afraid of losing money, it is the one of the huge fears which every businessman has. 

Many businessmen trust in a good economy to start their work, they always work for gaining profit, especially in the retail, and financing industry. 

Entrepreneurs generally take more risks with money finance and circumstances  in comparison to businessmen. 

Almost all entrepreneurs believe in this line which has been said by a big personality that  “nothing ventured, nothing gained”.

It means you can’t expect to achieve anything if you never take any risks.

Entrepreneurs always believe in saying that It is fine to make mistakes and lose money If you make some fundamental mistakes, then only you will look at the reason why this has happened.

8. In Terms of Time Management: 

A businessman never wants to waste his time, he always does his work in the same specific time period which he has already planned for that.

He never wants to delay any work or commitment to be out of schedule. 

An entrepreneur works as an artist or a imaginator, only his imagination makes him an entrepreneur. 

An entrepreneur’s product is always his masterpiece, that is why he always does work in a calm way because in hurry we can never imagine things. 

And without imagination we can not make any unbelievable product or brand.

Entrepreneurs always work on the idea whether that idea will take much time but the outcome, which we will get that will surely surprise everyone. 

9. In Terms of Understanding The Success:

Businessmen always describe success in money and growth.

How much money they are getting from their business, what is the turnover of their business, how much growth they are gaining on a daily basis, how much people want to work with them and want to invest in their business, that is the real success for businessmen.

Entrepreneurs never describe success their work describes their success, they always believe in one thing that if we are talking about our success then it is not your success it is only money which you have gain from your work but if people are talking about yourself in a good way and because of your work then it is your success.

10. In Terms of Opportunity Understanding:

Businessmen always take money as an opportunity, if they are seeing any area where they can invest and make money in a huge amount then they will take that thing as an opportunity and they will never miss that opportunity.

Entrepreneurs always take their duty as an opportunity, entrepreneurs always want to solve problems of people by their idea.

And entrepreneurs take that work of solving problems of people as an opportunity which will be done by them.


I have talked about businessmen and entrepreneurs but by these things i don’t intend to offend anyone because both businessmen and entrepreneurs are important in today’s era we need both of them at some places.

So I hope this article will be helpful for you and give you the right vision towards your goals and dreams.

What is The Insolvency and Bankruptcy Board of India (IBBI )

Insolvency and Bankruptcy Board of India

What is The Insolvency and Bankruptcy Board of India:-

The IBBI, insolvency and bankruptcy board of india falls under Insolvency and Bankruptcy Code 2016, it is a regulator which regulates the profession as well as processes related to insolvency and bankruptcy. 

It regulates bad loan cases reported by various creditors, which are especially involved with banks in India. It works towards resolving any insolvency for corporates, individuals and partnership firms.

  • It was established on 1 October 2016  in New Delhi.
  • Parliament of India is the founder of Insolvency and Bankruptcy Board of India.
  • Dr. M. S. Sahoo is the Chairperson of the Insolvency and Bankruptcy Board of India.

To know what this department does, first let’s understand what Insolvency is –

What is Insolvency ?

Insolvency is a state of financial distress which describes a situation arises due to the inability to pay off the outstanding debts on time to the creditors because the assets are not enough to cover up the liabilities.  

In the case of companies insolvency caused due to the continuous fall in sales, and it doesn’t have enough cash to meet out it’s day to day expenses of the business for which it takes loans from the creditors and banks.

Insolvency can arise from poor cash management, a reduction in cash flow, or an increase in expenses.

IBBI deals with some of these proceedings:

  • Corporate Insolvency
  • Corporate Liquidation
  • Individual Bankruptcy

Functions of Insolvency and Bankruptcy Board of India 

Here we are going to discuss some functions of Insolvency and Bankruptcy Board of India:-

  • Corporate Insolvency resolution process (CIRP):-  The insolvency resolution process is a one under the Insolvency and Bankruptcy Code, 2016, where the National Company Law Tribunal (NCLT) initiates a corporate insolvency resolution process (CIRP).

When a company defaults on making payment to creditors then creditors can file an application in front of NCLT if creditors loss is minimum 1 lac, because  the minimum amount of default for initiation of CIRP is Rs.1,00,000. 

After that NCLT will initiate an IRP interim resolution professional, whose name will be given by the creditor, which can be anyone from the creditor side.

Under IRP, the Insolvency resolution process appointed professional will be having the power to take charge of the company which has defaulted. 

That professional’s main work is taking necessary steps to revive the company.

Appointed professionals would have the power to raise fresh funds to continue operations.

  • Corporate Liquidation:- Liquidation is a process through a company which is going to be shut down and its existence comes to an end, because it is unable to pay its creditors and need to sell off its assets to pay them.

Liquidation process can be initiated under the insolvency and bankruptcy code 2016:- If the IRP interim resolution professional fails to find a resolution on or before the expiry date of insolvency resolution period.Then the company becomes liquidated to pay the creditors by selling off its assets .

In starting of this process first a public announcement shall be made about the corporate debtor being liquidated.And then further process can be done.

  •  Individual Bankruptcy:- As per the IBC Insolvency and Bankruptcy Code, 2016, a creditor can file petition for individual bankruptcy for an amount exceeding as little as Rs 1000 as per the notification by the Central Government. It can be revised upto Rs.1,00,000.

The IBC does contain a chapter relating to insolvency and bankruptcy process for individuals and partnership firms, but the rules for individual bankruptcy are yet to be notified.

Insolvency and Bankruptcy Board of India recently started to promote the development and working and practices of insolvency professionals,insolvency professional agencies and information utilities so now we will talk about these points:-

  • Insolvency Professionals:- An Insolvency Professional is one who is registered with the Insolvency and Bankruptcy Board of India (IBBI). They work for the dissolution process of an insolvent individual, companies, or partnerships.

These professionals get authorization from the IBBI to do work on behalf of such insolvent individuals and companies. 

In the situation of bankruptcy, the insolvency professionals play a big role in liquidating the entity assets and other settlement processes.

  • Insolvency Professional Agencies:- Any registered agency with IBBI becomes insolvency professional agencies, the most important work of these agencies are to regulate the activities of insolvency professionals and ensure their development in the industry. 

These professional members of the agency are required to work as per the terms and conditions of the insolvency agency code. 

These agencies have the primary function of granting membership to insolvency professionals.

These agencies also enquire about the member’s grievances and take steps to resolve those.

  • Information Utilities:- An Information Utility becomes a professional organization after getting registered with IBBI under Section 210 of IBC, 2016.

It works for providing authenticated information about debts and defaults. 

Information Utility plays a big role in storing the financial information of the users.

And it helps the lenders in taking the informed decision about the credit transaction.

It would also make debtors attentive as the financial information is available with the utilities. 

It plays a vital role in the creation of evidence; the information can also be used as evidence in bankruptcy cases.

How do you declare Insolvency in India ?

Before going through this point we should have knowledge about the difference between insolvency and bankruptcy, there is a minor difference between insolvency and bankruptcy.

Insolvency is the state of being unable to pay the money owed, by a person or company on time and bankruptcy is a process of declaring insolvency in india.


When a person becomes insolvent and he wants to become debt free so he files an application to the relevant court where he declares himself as insolvent due to his inability to pay his debts and expenses, seeking to be declared as a bankrupt.

When court decides the appropriation of the personal property of the insolvent among his various creditors. It is the last stage of insolvency and gives a new lease to the insolvent to start a new fresh. 

It relieves the individuals or a company from all the debts and other disadvantages of insolvency.

By following this process people can declare their insolvency in india.

Structure of IBBI

IBBI has a total of 10 members committee which includes one chairperson, representatives from the Ministries of Finance, Law and corporate affairs, and the Reserve Bank of India.

  • Dr. M. S. Sahoo, Chairperson, Insolvency and Bankruptcy Board of India
  • The Insolvency and Bankruptcy Board of India has appointed three people as whole time members:
  1. Sh. Sudhakar Shukla
  2. Navrang Saini 
  3. Mrs. Mukulita Vijayawargiya 
  • The Insolvency and Bankruptcy Board of India has appointed 4 people as Ex-officio Members:
  1. Dr. Shashank Saksena, Adviser (Capital Markets), Department of Economic Affairs, Ministry of Finance
  2. Sh. Gyaneshwar Kumar Singh, Joint Secretary, Ministry of Corporate Affairs
  3. Dr. Rajiv Mani, Joint Secretary and Legal Adviser, Department of Legal Affairs, Ministry of Law & Justice
  4. Sh. Unnikrishnan A, Legal Adviser, Reserve Bank of India
  • The Insolvency and Bankruptcy Board of India has appointed 2 people as part time Members:
  1. Dr. Krishnamurthy Subramanian, Chief Economic Advisor
  2. Sh. B. Sriram, Former Managing Director & CEO of IDBI Bank Ltd.

So here I have given all the information about the IBBI insolvency and bankruptcy board of India and IBC Insolvency and Bankruptcy Code, 2016. 

Which was established to support the falling companies to stand again on their feet by restructuring their credits so that they can repay them easily and make a fresh start. 

I hope all this information will surely work for you and give you knowledge in an easy way which you will be able to understand very easily.

20 Functions of an Entrepreneur

Functions of an Entrepreneur

Are you planning to get into entrepreneurship? 

Or are you already an entrepreneur? 

If you jump into entrepreneurship without knowing what all you’ll have to do after taking it up, The chances of your failure are more than you becoming successful. 

Improper planning can lead you in the wrong direction too and can increase the chances of getting failure. Before entering into any entrepreneurship, you need to know some basic but indispensable functions that may prepare you for upcoming challenges in your venture.

To make your entrepreneurial journey successful here we have written down 20 functions of an entrepreneur – 

20 Functions of an Entrepreneur

  1. Responsibility towards the society
  2. Decisiveness
  3. Develop Inventiveness
  4. Experiments
  5. Be organized
  6. Spread the learnings
  7. Control of situations
  8. Recognizing the opportunities
  9. Riskiness for venture
  10. To manage the roles
  11. Make public relation
  12. Transfer of learning
  13. Transfer of  technology and its acclimatization
  14. Economical Development
  15. Division of incomings or earnings
  16. Acceptance
  17. Culture of contribution
  18. Clarity of target
  19. Finding niches
  20. Building networks

So let’s reed them in detail now

  1. Responsibility towards society –

When you start a venture in order to grow self economically and livingly, he owes the responsibility to develop society as well.

Your entrepreneurship must be the solution to the society’s problem, not the reason for their problems. It must be uplifting the economic condition of society too along with the entrepreneur. 

You need to make sure that your organization or venture is fulfilling the responsibility to develop the society to make it a better version.

It is helping in making a better living for people. Start the entrepreneurship that opens the doors for new opportunities for the society and for yourself too so that it aids you to maint your responsibility towards the society where you dwell-in.

2. Decisiveness – It is very much crucial to take some riskful decisions in order to grow. Everytime you can not make an accurate and correct decision which always will head you in the right direction.

You shall have to make some decisions to get the wrong or right out of it. Making decisions is important rather than making always right ones because that is practically not possible at all.

Calculate the risk factors of the decisions for entrepreneurship and work on it.Make some riskful decisions for your entrepreneurship which are much needed for the venture in order to give pace to its growth.

3. Develop Inventiveness – Sometimes a hand which doesn’t know to be an initiator becomes a very big loss for entrepreneurship.

Sometimes what your product needs is just the right initiative at the right time.The demand of the market can be supplied when you fulfill at the right time before anyone else does in the market.

You can see the instance of any industry, the initiator who brought-up the solutions of the problems of society and took initiatives, is still booming the market.  

4. Experiments – it is a very much needed element in entrepreneurship. You shall have to bring new methods in order to increase earnings and growth of the product.

Experiment with the innovations.Make the products innovative but before making it so, raise the demand of such innovation in market so the experiment can have more possibilities of getting success.Ba innovative with the techniques of the production, customer services and with your product.

A customer likes to be serviced with new better things. In order to stand still in this competitive market, you shall need to experiment with everything and to bring the innovations in entrepreneurship.

5. Be organized –  Keeping all the resources is very much important to run the venture smoothly. All kinds of resources that entrepreneurship requires- human and nonhuman resources are extremely important for the venture.

Availability of all needed resources at the right time avoids the obstacles of increasing the productivity of work. By being an organized entrepreneur only, you can satiate the purpose of increasing productivity at your venture.

6. Spread the learnings – When you start your entrepreneurship, you also learn by your mistakes and try to earn the experiences from those mistakes or try to learn from the other entrepreneurs’ experiences. In the same way, share your experience that you gain through  your learning and mistakes so that it will help future entrepreneurs in their learning phase.

This can easily be done by workshops, seminars, industrial visits and many more things. Share and read success stories, it will guide you a lot and will work as practical guidance for future entrepreneurs. That will help to increase the economical level of nations.

7. Control of situations – A venture just does not need the resources to keep it functioning, but it needs the team or people also who can deal in tactful conditions too. A venture gets loss and profit both but utilising the profit to double the productivity and dealing with the losses, is not an easy act to perform in the venture.

It needs a calm and decisive mind which can make some decisions while keeping the emotional part aside. You shall have to develop leadership qualities, interpersonal skills , skills which can handle disturbance through various things, skills which can manage the resources, develop the skills in the employees and can think for the utmost benefit of the venture.

8. Recognizing the opportunities – A venture value the works which bring social and economical increase in entrepreneurship.

For such opportunities you shall have to become the searcher who can figure-out the usual and unavoidable necessities of the people. Such opportunities will help you to create a beneficial prospect to your venture. 

9. Riskiness for venture – It is a major and indispensable function of entrepreneurship. An entrepreneur shall have to become a risk taker regarding the production, estimation of material consumption,  machinery, technology and many more things in the venture. Opportunities of the organization shall work when, calculated risk of needed elements will allow it to increase the production.

To bring innovation in the production, to maximize the productivity, to increase the demand, suh risks are very important to take. Even not just to increase entrepreneurship but sometimes to bear with the losses, risk is much needed. To cover the losses through theft, robbery, hooliganism or any natural or man-made misshappening risk becomes important.

10. To manage the roles – A venture demands multiple roles of the entrepreneur. An entrepreneur holds the command of multiple functioning like, planning, damage controlling, organizing, risk taking, leading and many more. An entrepreneur plays several roles in order to run the venture with proceeding graph.

The roles are categorised into interpersonal, informational, and decisional roles. Interpersonal roles include figurehead role, leader roles, liaison roles, Informational roles include monitor roles, spokesperson role,disseminator roles where as decisional roles include disturbance handler, resource allocator, negotiate role. All roles vary on the basis of work.

11. Form public relation -Every new venture needs organized relations with the public to develop credibility in the organization.

The productivity gets increased from the venture through public so it is so necessary to form relations with the public in order to keep the venture functioning.

You need to target your public as per your demand of the venture then accordingly you can step in the path to build terms with them. This function is very crucial especially in the initial phase of any venture. Because many ventures were discarded due to not having public relations that could- help them to transform their idea into reality.

12. Transfer of learning – When you join a venture you work as a beginner and try to learn from the knowledge which has been transferred by experienced entrepreneurs.

In the same way, your knowledge will also be beneficial for future and budding entrepreneurs and employees of the organization. Your transferred knowledge will help your new employees in adapting themselves in the aura of your organization as fast as possible. Such transfer brings maximum efficiency in work.

For such transfers you need to ensure to store employee’s key knowledge to share it with new ones in future.

13. Transfer of  technology and its acclimatization – The transfer of technology generally known as TOT. It disseminates the required technology to the different ventures or entrepreneurial arenas of the world from different corners of the world.

In such a way it plays a very big role in uniting the world and  helps in increasing the economy of the venture which holds this technology. Its adaptation or acclimatization is equally important to function the entrepreneurial activities in correct and progressive order.

Because you can own the technology with monetary terms but can not adapt it with the same, you shall have to be used to it along with your consumers shall also need to be. It is important to impart because it lessens the processing timing and saves a lot of money which we put in human resources.

14. Economical Development – To sustain the economy in entrepreneurship is necessary to keep the work throughout and keep it functioning properly.

Every organization helps in sustaining the work and the economy to balance it. It can be made possible by spreading the venture in different corners of the country and world.

15. Division of incomings or earnings – It is a very necessary function of business to make separate division of complete income.

Every part of the production requires a particular amount of income to function properly, so deciding the part of income for production’s different elements is the work of so much accuracy and efficiency.

Even in the time of losses some functions are mandatory to run, so keeping such expenses while dividing the income is also important. This the responsibility of the employer to keep everything in mind and make the accurate divisions to not to let work get hindered through such mishappenings.

16. Acceptance – This function of entrepreneurial arena will not affect the industrialization directly in its absence but gradually the deficiency of acceptance in the team of the venture may give a discard to the venture.

The ability to accept if something is not being known by the employer or employees of the organization and learning it can only help them to keep growing for longer visions.

When the employer or employees of the venture stop accepting the fact of having aspace to learn more then the gradually the venture starts working on its edge. A venture grows when the team has the will to become the learners throughout.

17. Culture of contribution – A fist is complete with the contribution of all 5 fingers of a hand as a venture is complete with the contribution of employer and each and every employee.

When you contribute while having a zeal in the heart to contribute not to the organization, not to the employer but to the nation,but to the whole world. This must be in the culture where you work, for who you work, by forcing it,one can not keep it for a long time.

This can only be developed in each and every member of the organization by having a thought to give contribution in making a better nation and world.

18. Clarity of target – Every person comes in entrepreneurship with a purpose and it varies person to person. But sometimes some work with no purpose, and there the problem starts happening.

You will need a purpose if you want to create a successful entrepreneurial kingdom. Some have purpose to earn money, some have purpose to earn status, some have purpose to influence others. There is no judgement happening on the purposes, it is an individual’s choice.But having a purpose is necessary to keep growing further.

19. Finding niches – A good entrepreneur never misses an opportunity where a great entrepreneur turns every  chance into an opportunity. You are great in your work when you are able to identify your niche where you are best in it.Knowing in  all spheres is good to work but having your own niche is necessary to grow.

Once you find your niche you can be better to solve others’ problems in your niche. You will have to keep working for it. So if you already know your niche, that’s good, if not, find it and work on it.

20. Building networks – Networking building is the last step of entrepreneurship where our whole production lies-on. Your production will be able to help to maximum consumers of it when your network will be enormous.As larger the network you have, more impact your product will create. Your larger network will bring the change on a huge scale. That you can get through by developing credibility.

When one enters into the business or entrepreneurial world, due to lack of knowledge, due to less ability of pre assuming the losses and many more unpredictable factors become the reason for a great failure of the venture. Then you just need proper guidance.

Here are some main functions that everyone must know before entering into entrepreneurship in order to avoid mistakes and to run it on a better scale. I hope this will help you and make your venture a success.

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.

Difference Between Self- Employment and Entrepreneurship

Difference Between Self- Employment and Entrepreneurship

Often, self – employment and entrepreneurship are confused to be the same. An entrepreneur and a self-employed person may share the similarity of owning a business but their mindset and approach are completely different. 

The distinction between self – employment and entrepreneurship are:

Self-employment: When one works for himself. Maybe as a contractor or running your business.

Entrepreneurship: Process of setting up a business, taking on financial risk, in hope of getting profits in return.

Here we have written 8 points to differentiate self-employment and entrepreneurship –

1. Being self-employed, you have people working for you. Being an entrepreneur, you have people working with you. 

2. As a self-employed person, you hire people to work for you. The vision and goal is set by you and it solely depends on you. As an entrepreneur, you have people working with you. You and your team work together on setting and achieving the company goals. 

3. Self-employed people are the face of their business. If their absenteeism is constant, their business will significantly go down. This is not the case for an entrepreneur. The business will keep running even if the boss is absent because the employees understand the vision of the business. 

4. For self-employed, if the business owner retires or passes away, the business will also die. But if the business owner passes away, the business will still continue. It is not dependent on him to exist.

For example: Even after the demise of Steve Jobs, Apple still continues its business. Or even after Jack Ma retired, Alibaba continues its operations. 

5. Self-employed is reserved in his thinking. He does not want to go big. He is just concerned about paying off bills. Entrepreneurs are open minded. They are global thinkers. They understand the advantages of catering to people’s needs on a large scale.

6. A self-employed person is not a risk taker. He fears change. An entrepreneur is a risk taker. He has the zest to explore new opportunities and believes that he can manage and control risk. They understand that with great risk comes great returns. 

7. A self-employed person tries to do everything on his own because he thinks he is the best and nobody is better than him. An entrepreneur on the other hand understands and accepts that he can’t everything on his own. He delegates the right work for the right people so that there is efficiency in the work done.

8. Self-employment does not have many requirements and restrictions. Entrepreneurs must deal with a wide range of legal requirements including business registration, insurance requirements and filing taxes.

From this, there is a fine distinction between self-employment and entrepreneurship.

With 8 aspects mentioned, where do you see yourself?

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Top 10 Reasons Why Startups Fail and How to Avoid Them

Starting a startup is not child’s play. The fact that a majority of them fail in the first 3 years makes it even more terrible. Smart entrepreneurs always learn from their past mistakes and learn from others mistakes too. This is what helps them to hustle! After analyzing and examining why startups fail, we identified the top 10 reasons why startups failed. 

Here is the list of reasons for failure and methods to avoid them:

1. No market need:

Startups fail when they are not delivering the goods and services that the market needs. 

It’s of no use if you have a lot of money, a good idea and good reputation but not fulfilling the needs of the people. 

How to avoid:

  • Essentially, customers should be interested in the model you are pitching. 

Lawyers want more clients. Not a swanky office.

2. Running out of cash:

Cash is like fuel to your business. If you are running out of cash, then your business is in trouble and you will not be able to take it any further. 

Cash flow helps in keeping the business alive. No matter how passionate you are or how great your idea is, you still need to pay your bills, clear your dues and pay your employees. 

Many startups run into problems when they have insufficient funds to run their operations resulting in loss for the company. Or the exact opposite scene is also possible, when a startup receives massive funding and they misallocate the funds. 

How to avoid:

  • Keeping a track of cash inflow and cash out flow. 
  • If funds are required, work well in advance to explore all the funding options and not delay it to the extent that it’s too late.  

3. Market problems:

Every company is driven by the market. It is essential to identify the correct market and find the right solutions for the needs of people. 

The success of a product also depends on the timing of it. 

The e-commerce industry wouldn’t be booming in the early 2000’s like today because the internet speed was really slow and the smartphone industry was still picking up. 

How to avoid:

  • Go out, talk to people and understand the market needs and demand before building a product. 
  • Research and understand your industry properly. It is easier to make changes in the initial level. This will help you save money too. 

4. Business model failure:

Business model is the backbone of every business and it contributes to the commercial and economical success of a business. 

Some companies are so involved in the idea implementation process, they overlook the business model.  

Lacking the skill to analyze and strategize business model is a major drawback. A bad business model can reduce the life span of a business drastically.  

How to avoid:

  • Analyze if your customer acquisition strategy is expandable. 
  • Analyze and estimate your sales and return on investment. 

5. Poor marketing:

Good marketing is understanding your target market and knowing how to get their attention. 

A great product can fail if it is not marketed well.

Knowing how to convert them to leads and ultimately into customers is very essential for the success of a business.

How to avoid:

  • Marketing should start at the initial stage of a product and not wait till it is completed.
  • Hire a good marketing agency that understands your vision. 

6. Poor management team:

Management is like the brain of the company. Having a diversely skilled group of people is essential for the success of a company.

Poor management can represent poor strategic decisions, communication gap between the top management and bottom level employees and bad hiring system.  

It is important for the team to be united and agree around a common vision and long term goals of a company.   

How to avoid: 

  • Communicate well with your employees.
  • Decisions should be backed by statistics and not experience always.

7. Loss of focus:

Founders are usually idea oriented and they mostly get carried away with ides. This could make them lose focus on the other key aspects of the business. 

There should be a fine balance between micro management and macro management as this could also be a reason for the employees to lose focus. 

How to avoid:

  • Don’t get carried away with new ideas. First concentrate on achieving the main goals of the business.  
  • Have a “To do list” and “To not do list”. This will help in eliminating the unnecessary things that are making you lose focus. 

8. Legal challenges:

Sometimes a startup could be doing really well but a legal complication could be the cause of shutting down the company. 

Every field can have different laws and it is important for startups to at least be aware of them. 

How to avoid:

  • Consult an experienced lawyer if required. This will save you a lot of time and money in the future.
  • Make sure your company and employees are compliant with the laws.

9. Disagreement among team members:

Conflict among team members is the last thing any startup would want to see. 

Everyone have their own opinions and their emotional behavior could lead to conflicts. This can destroy company culture and ultimately lead to the failure of a business. 

How to avoid:

  • When it comes to making a business decision, you should make decisions that are best for the growth of the business and rely on the collected data rather than going with the majority.   
  • Shareholder agreement and employee agreement should be in place to handle the matter professionally.

10 Burnouts:

Doing a startup is not easy. Even the most ambitious people burnout in the process. 

Because of the hectic schedule, they don’t have a good work-life balance. Hence, the risk of burning out is high.

Watching your buddies making good money in corporate jobs, posting pictures of family outings and parties could make you rethink about your decisions. 

A majority of the founders cannot take these burnouts and eventually quit.

How to avoid:

  • Make sure you have a good work-life balance.
  •  Health should be your first priority. 

Bad health = No peace of mind = Bad decisions = Downfall of company. 

A startup can experience several challenges presented above. However, it is better if the founders keep an open mind and learn from the failure of others. This can help them save a lot of money and time. 
So these are some of the reasons why startups fail. Hope you liked the article. ☺   

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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 ?

Balance Sheet – What is a Balance Sheet and how to maintain it?

What is a Balance Sheet and how to maintain it?

Definition of ‘Balance Sheet’

“A balance sheet is basically a summary of the financial balances of an individual or an organization. It reports a company’s assets, liabilities and shareholders’ equity. “

It is a financial statement that provides an overview of what a company owns and owes, as well as the amount invested by the shareholders. 

Formula used for a balance sheet

Formula used for a balance sheet

Source: https://www.nonprofitaccountingbasics.org/reporting-operations/statement-financial-position

How to maintain your balance sheet

1. Use the basic accounting equation to make the balance sheets:

The equation is, Assets = Liabilities + Shareholders’ equity. Assets are the resources owned by the company. Liabilities are the expenses of the company. Shareholders’ equity is the contribution of the shareholders to the company. This information is compulsory to make a balance sheet. 

In a balance sheet, the total sum of assets should be equal to the total sum of liabilities. 

2. Choose a date for the balance sheet:

A balance sheet is made to assess the financial position of a company. Companies usually prepare an official balance sheet every quarter (the last day of March, June, September and December) and at the end of the financial year (December 31 or March 31)

3. Give a heading for the balance sheet:

Use the title balance sheet on the top of a page. Below it, list the name of the company, and the date on which the balance sheet was made. 

4. Prepare the assets section:

A. List all the current assets – Current assets are basically cash and other assets that are expected to be converted to cash easily. 

Include a sub total of the current assets and label it “Total Current Assets”

Please refer to figure 1 to understand the items that come under current assets. 

B. List all the non-current assets – Non-current assets are determined by a company’s value of plant, property and equipment that can be used for more than a year (minus depreciation)

Include a sub total of the non-current assets and label it “Total Non-Current Assets”

Please refer to figure 1 to understand the items that come under non-current assets.

C. List all the intangible assets – Intangible assets are also considered to be non-current assets. They are assets that are not physical in nature and will last for more than 1 year. These include goodwill, patents, copyrights, trademarks and franchises.  

5. Add up all the current and non-current assets and label the total amount as “TOTAL ASSETS”.

6. Prepare a liabilities section:

A. List all the current liabilities- Current liabilities are liabilities that are due to be paid to creditors within one year of the balance sheet date. 

Include a sub total of the current liabilities and label it “Total Current Liabilities”

Please refer to figure 1 to understand the items that come under current liabilities.

B. List all the long-term liabilities- Long term liabilities include any liabilities that will not be settled within one year.

Include a sub total of the long-term liabilities and label it “Long Term Liabilities”

Please refer to figure 1 to understand the items that come under long term liabilities.

7. Add up all the current and long-term liabilities and label the total amount as “TOTAL LIABILITIES”.

8. Calculate Shareholders’ equity:

This includes the capital that is contributed by the shareholders to the company. 

9. Add the “Total Liabilities” and “Total Shareholders’ Equity” figures:

The balance sheet is correct if the “Total Assets” and “Total Liabilities and Total Shareholders’ Equity” are equal. 

If the balance sheet does not tally, then just check if you have missed or repeated any value.

10. If “Total Assets” is greater than “Total Liabilities”, then the company is making a profit. Otherwise, it’s under loss. 

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10 Elements of a Successful Business Idea

10 Elements of a Successful Business Idea

Ideas are the lifeblood of a business. Most successful startups always become big because of a good idea and not because of surplus funds. 

Value Proposition
Customer Segmentation
Distribution Channel
Relation with Customers
Cost Structure
Key Activities
Important Resources
Your Partners
Revenue Streams
Scalability and Potential for Automation

                  Table of Content

1. Value Proposition:

A value proposition is a promise of a value a company guarantees to deliver to its customers. It is basically a product, service or feature that makes the company attractive to the customers and investors. It summarizes why a customer should buy your product or use your services. A value proposition should be directly communicated to the customers via the company’s web site or other advertising mediums. 

2. Customer Segmentation: 

Customer segmentation is dividing the customers into different segments like age, gender, geography, interests and salary. 

Customer segmentation can help you:

  • Develop effective strategies.
  • Provide better customer experience.
  • Better Ad targeting. 

3. Distribution channel:

Distribution channel is the path through which goods and services travel from the vendor to the consumer level. 

The distribution channel should be minimal as far a possible because it helps in getting the goods faster and at a lesser cost as there will not be many middlemen involved. 

This will help in increasing the company’s profits and customer satisfaction. 

4. Relation with Customers:

Cash is king but the customer is God. A satisfied customer is the best business strategy of all. Building good relationships with your customers is very important as it helps in understanding your customers’ needs. 

Providing what your customer needs will increase the profits of your business. This will help you gain more returning customers, referrals and more profit in the process. 

5. Cost Structure:

Cost structure is the fixed costs and variable costs that are required to operate your business. 

To maximize profits, businesses should find every possible way to minimize costs. While some fixed costs are vital for keeping the business running, a financial analyst should always review the financial statements to identify expenses that do not provide any additional value to the core business activities. 

6. Key Activities:

Key activities are basically the activities that a company must perform to succeed. 

For example, if your business focuses on the production of a product, you should focus more about the customer needs and produce accordingly to satisfy the customer needs. This will also help in increasing the net income of your business.

7. Important Resources:

Key resources are basically describing the important assets of a company. They are required to make a business work. Every company needs them and it is only through them that companies generate income and value proposition. Key resources can be financial, human, physical or intellectual. 

8. Your partners:

Team work makes the dream work. It’s not all about the money that a partner brings in. Potential partners must be trust worthy. Good friends who share common values and responsibilities make good partners. 

Look out for partners who have the abilities that you don’t have. This will help in making better decisions as the knowledge base is more diverse.  Remember that the beautiful rainbow is made out of different colors and same colors. 

9. Revenue Streams:

A revenue stream is basically the income of a business. Your net revenue is calculated as the gross revenue minus discounts or returns you had during that year. 

In business, a revenue stream is generally made up of either recurring revenue, transactional based revenue, project revenue, or service revenue. 

 10. Scalability and Potential for Automation:

It is important to keep up with the times and work towards what is best for the business. Automation helps in higher production at lower costs, more efficiency, better quality, more safety, and it helps in reducing the unnecessary expenditure of the business. 

How to make a business plan?

How to Make A Business Plan?

How to make a business plan ? – This is a common question in the head of most of the new entrepreneurs and startup owners.

A goal without a plan is just a wish. It is essential for every business to have a business plan. It helps in providing direction and attracting potential investors.

A business plan is important for the success of your business. But, how do you make a business plan? Relax! This article will help you answer all your queries.

Firstly, What is a business plan?

A business plan is a document of your business’s future objectives and strategies for achieving them.

It is very important as it helps in understanding the vision of your business, it helps in analyzing your plans for finance, marketing, manufacturing, production, sales, etc. and this will increase your chances for success. 

We have written these 9 steps to help you develop a business plan for your business –

Table of Content

Executive Summary
Company Summary
Detail about management
Overview of market size
Details of products or services
Sales and Marketing plans
Detailed Financial Projection
Funding requests

1.) Executive Summary:

An executive summary is a short document that summarizes a long report or a proposal. It is an overview of your business and your business plans. When you’re trying to pitch your idea to a potential investor, you’ll need to craft a perfect executive summary.

Curious to know why you write one? Here’s why- Investors, lenders, CEO’s and managers are always busy. When you’re writing your business plan, your goal is to get into the door of the investor.

Assuming that your business plan is a good fit for the investor, a strong executive summary will get you a meeting with the investor. A poor executive summary will leave you standing in the cold. 

2.) Company Summary:

A company summary is an important part of the business plan. It is an overview of the major points about your company- your history, management team, number of employees, location, mission, vision and legal structure. 

  • Company history: Includes date of founding and the people involved.
  • Management team: Details about who runs the company and other key roles of the employees.
  • Location of the business: Details about the place of your workspace. 
  • Legal structure: There are several business structures like Sole proprietor, Partnership, One person company, Private limited company and Public limited company. The summary must include what structure you’ve decided and who owns what percentage of it. 
  • Mission statement: Is a short statement of who you are, what you do and what you desire to become. 

3.) Detail about management:

A management team consists of all the employees that work together and manage a company. These individuals manage the daily operations of a company to ensure efficiency and customer satisfaction. 

If you’re a startup or looking to expand, there may be team members you’re lacking. In that case, mention the roles and what your plans are to fill those job opportunities. 

If you plan to present your business plan to banks or potential investors, this is crucial data. 

It includes who is the CEO in your company? What qualifies employees for their respective positions? Work experience, Past success and their degrees can be referenced for each person. You want to showcase everyone in a good light as investors invest in people first and business second.

4.) Overview of market size:

Market size is the number of people in a certain market segment who are the potential buyers.

Companies should determine the market size before launching a new product or service.

Now, it’s time to focus towards your target market. Who are you selling to? Once you have identified your target market, you should discuss the trends for this market. Talk about the market’s evolving needs, tastes or other forthcoming changes in the market. 

5.) Details of products or services:

Your customers don’t care about you. They care about themselves. They care about their needs, their wants, their dreams and their goals. If you’re able to help them reach any one of it with the help of your products or services, your business has a great chance of making high profits. 

It’s certainly useful for you to include a paragraph about your products and services to show the investors what you offer.  

6.) Sales and Marketing plans:

Before you even think about writing your marketing and sales plan, you must have your target market well defined. Without truly understanding who you’re marketing to, it will not convert into a sale. 

The marketing and sales plan section of your business plan helps you strategize how you can reach your target audience, how you plan on selling it to them, what your pricing plan is, and what types of campaigns and partnerships you need to make your business a success. 

7.) Goals:

A goal describes where you want to be in the future. Business goals describes what a company expects or hopes to achieve over a specific period of time.

Not only whole companies have goals but also departments and employees usually set goals. If they achieve their goals, they get a promotion. The business goals and the employee’s goals usually go hand in hand. 

8.) Detailed Financial Projection:

Financial management is at the heart of any business. It is one area that can help drive it forward. A financial projection is an essential part of your business plan.

It is one of the main things the investors pay attention to. It is basically the projection of future revenues and expenses. The financial section of your business plan should include sales forecast, expenses budget, cash flow statement, balance sheet, and a profit and loss statement. 

9.) Funding requests:

If you’re planning to start your own business, you’ll need the funds to turn your vision into a reality. While some entrepreneurs have personal assets to fund their business, most require assistance from an outside source, in which case a funding request is required.

A funding request is basically a written request to obtain funding from a lender or an investor for your business. Whether you’re obtaining capital from a bank, private investor or an angel investor, you should create a funding request. It increases your chance of getting the funds approved.

Useful article –

Restaurant Business Plan