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/

Tagged : /

10 Ways Digital Marketing Can Help Startups

Digital Marketing for Startups

Digital marketing is one of the best and cost efficient ways to strengthen your startup. 

In this fast paced digitally driven world, you need to formulate a powerful digital marketing strategy to establish your brand name. 

Everything you do in the digital platform contributes to your online presence and puts your company on the map of the digital world.

It is very important to hire a dynamic Digital Marketing Agency (Provide link of Top Digital Marketing Firms) that takes care of your online activities.  

Here are 10 crucial digital marketing tips for startups:

  1. SEO Optimization

SEO optimization is one of the most reliable digital marketing strategies to get organic traffic to your website. It is not easy for a startup to rank on top initially. Due to competition and SEO technicalities, it is better to hire a good digital marketing agency to do your SEO. This will save you time and add value to your investment.

2. Relevant use of social media platforms

It is essential to be dynamic in nature as the social media platform keeps changing all the time. It is very important to keep up with the current trends. You need to stay updated and see how you can use the latest trends to increase your sales. 

The voice of your brand needs to be present on every social media channel. According to research, it is effective to put up 5 to 10 posts every week on Facebook, once a day for LinkedIn and 5 tweets daily on Twitter.  

In order to run a successful campaign, it is important to have a clear brand voice first. 

3.Constant site updating

Making sure that your website is ready and user friendly is very important. And constantly updating your website with new products that are introduced is essential. 

Your website should also be ready for conversions whenever a user decides to purchase something. The customer should not face any issues as this is one of the major parts of brand building and customer retention. 

4. Video Marketing

Video marketing is seeing an upward trend in the market nowadays. A majority of the current generation prefers to watch videos compared to reading things and this makes video marketing a powerful tool. 

You can consider video advertisements, Facebook live, Instagram stories and SnapChat stories to engage your audience. 

5. PPC Marketing

PPC stands for pay per click. This is a form of marketing in which the advertisers pay a fee each time their advertisement is clicked. It is a way of paying to get visits to your website rather than earning those visits organically. 

Google Ads is popular platform for this form of marketing. 

6. Educate your customers

Nobody likes only promotions. Customers will like your brand more if you are educating them and answering their queries. 

7. Engage your target audience

Your posts don’t always have to be general. Engaging your target audience is an important task. Tag them in curated content, conduct Q&A sessions for better interactions, ask interesting questions and conduct an audience poll. Basically keep the target audience engaged with your brand. This will make them feel like you care for their needs and their loyalty towards your brand will increase.

8. Concentrate on your target audience

This is one of the best strategies to convert your viewers into customers as they are looking for exactly what you are selling. It’s important to narrow down your market as they are the segment that’s likely to give you business.

It’s a smart move to segment your target customers according to gender, region, age and so on for maximum returns. 

9. Creative content

You will have to invest on a solid content writer and a good graphic designer. The content these people produce will primarily engage your audience. 

Creating content that is unique and relevant can have a strong impact on your target audience. 

10. Be Dedicated

Be dedicated with your digital marketing. You should invest time and put your best efforts for your campaigns to be successful. 

If you are dedicated and devoted to your startup, you can achieve your dreams in no time! Don’t hesitate to take calculated risks. No risk, no return.

Tagged : /

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. 

Tagged : / /

20 Future business ideas for 2020

Top 20 business ideas for 2020

Do you want to start a new startup or a business and profit from the upcoming trends? If yes, here are 20 future business ideas that are ideal for the future!

1.) Instagram consulting

Instagram is one of the most used social media applications as of today. According to reports, the social media app has about 1 billion users worldwide. Instagram has become the go to app for every marketer nowadays. Despite Instagram’s growing popularity, not all companies know what they are doing on the app.

2.) Smartphone repair services

In today’s digital world, almost everyone is dependent on a smartphone. Luckily, there are not many smart phone repairing service stations out there. This opens a wide opportunity to start the business now.

3. Web designing

It is essential for every business to establish their online presence in today’s digital world through websites. This has created a huge demand for web designers. Now is a right time to start a business in web design as it is the best time to tap the market. 

4. SEO Firm

This is related to web designing. There is a lot of demand for good SEO services as every business wants their website to rank on the first page of the search engine results page. 

5. Social media consulting

With the increase in the popularity of social networks like Facebook, Instagram and Twitter, every business is targeting them and trying to convert them into customers. This has led to a huge demand for social media consultants who advice and strategize on how to promote and market their products and services on social media. 

6. Data crunching

Without big data, you are blind and deaf in the middle of a highway. The challenge isn’t just crunching the data but to gather all the required information and gaining useful insights that can be converted into business profits.

7. Space hotel

This is a part of space tourism and is targeted towards the upper strata of the society. There are a number of companies working on going to the space but not many people that are concentrating on space hotels. Hence, this is an opportunity for you to grab and make the most out of it.

8. Mobile marketing consultants

The number of people who surf the internet using mobile phones is increasing every day. Businesses are now realizing that they need to adapt a marketing strategy specifically for mobile marketing as they can target the right set of audience accordingly. This has led to a huge demand for mobile marketing consultants and hence a huge opportunity for them. 

9. Marriage counselling and therapy

Mental health is as important as your physical health. Marriage counselling and therapy, helps you resolve your conflicts and helps you get mental peace. This will help you lead a happier life. Statistics suggest that this field will grow 41% by 2020.

10. Services for retirees

Who doesn’t want to lead a good life even after retirement? And it is expected that more than 80% of people born in North America will be older than 50 by 2020. This is a huge opportunity for businesses targeting people above the age of 50. Such businesses include retirement recreation services, counselling, nutrition counselling and real estate. 

11. Home care for senior citizens

Due to the ever-aging population, any business that can cater to the needs of the senior citizens with respect to cooking, cleaning, grocery shopping, taking them out, physical therapy etc will be a great opportunity for the years to come. 

12. Kids friendly apps

Children are our greatest treasure. They are our future. According to a study, three quarter of kids have access to gadgets. This is a big business opportunity for someone who can design apps just for kids. If it is promoting education or good health, you could win their parents too. This will make them more loyal to your brand. 

13. Outsourcing agency

Every business is looking for an opportunity to cut down on their expenses and this is an opportunity for outsourcing agencies to seize. Businesses are trying to outsource some of their services to freelance contractors which used to be in house functions; such as HR, IT and accounting. If you can set up an outsourcing agency, then there is a great potential in the market. 

14. Accounting firm

Regardless of the size and nature of the business, every business requires an accountant. So, if you are an accounting guru, then consider starting an accounting firm as it could become a profitable venture if you have a good cliental base.  

15. Privacy protection firms

The need for data protection is growing rapidly. From credit card numbers to photos, everything is available online. There are many people out there who want to steal this information. It is the responsibility of the company to protect their customer’s information. Companies are looking for people to write security plans to prevent data breach. 

16. Food trucking

A truck is a lesser investment compared to a brick and mortar restaurant. And the failure rate of food trucks is 10 to 20 percent compared to restaurants which is about 60 to 90 percent. With the right space and some great recipes, you can have your food truck running. 

17. Car sharing business

Car sharing business is a lucrative business to target tourists who make only occasional use of a vehicle. They can rent cars for a short period of time, often by the hour. 

18. Computer engineering

The need for high end computer experts will never go out of fashion. Big companies need fast and secure networks. Computer experts are able to get the systems together. 

19. Car charging stations

With the electric vehicles industry emerging in the market, thousands of charging stations have to be built to cater the increasing customers. With the concept of going green and protecting the environment, the demand for electric vehicles is increasing. Thus, there will high demand for car charging stations too. 

20. Pet care

Almost every alternate person loves pets and they are more popular than ever. Everyone loves to have them around but due to their busy lifestyle, most of them have no time to take care of their pets. This makes pet care to be one of the best businesses to start. It includes services like keeping your pet when you’re at work or out of town, pet grooming and pet training.



Tagged : / /

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. 

1
Value Proposition
2
Customer Segmentation
3
Distribution Channel
4
Relation with Customers
5
Cost Structure
6
Key Activities
7
Important Resources
8
Your Partners
9
Revenue Streams
10
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

1
Executive Summary
2
Company Summary
3
Detail about management
4
Overview of market size
5
Details of products or services
6
Sales and Marketing plans
7
Goals
8
Detailed Financial Projection
9
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

How to register a company in India

How to register a company

How to register a company in India_ - IODED

Registration of a startup in India is a very frequently asked question by the new generation entrepreneurs. With a population of more than one billion and still growing, India is a great potential market for entrepreneurs. But for the entrepreneurs to tap this opportunity and make the most out of it, they should first register their company. It is very important to establish your company’s legal presence. The last thing you want is to get penalized over a legal mistake that you were not even aware of! If you are here to understand the process of how to register a company, then you are at the right place!


1

Obtain a Digital Signature Certificate (DSC)
2


Obtain a Director Identification Number (DIN)

3

Registration on the MCA portal
4


Obtain a certificate of Incorporation

1. Obtain a Digital Signature Certificate (DSC):

Step one is to apply for the digital signature of the directors, also known as DSC.

  • What is a Digital Signature Certificate?

A Digital Signature Certificate (DSC) is the digital equivalent of physical or paper certificates.

  • How to get a Digital Signature Certificate done?
  • Digital Signature Certificate (DSC) Applicants can directly approach Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient in this case.
  • DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case.
  • A letter/certificate issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted. Such letter/certificate should be certified by the Bank Manager.
  • It normally takes 2 days to obtain DSC after submitting the documents. 

  • What are the documents required for DSC?

Identity Proof: (Any of the following documents)

  1. Passport
  2. PAN Card of the Applicant
  3. Driving License
  4. Post Office ID Card
  5. Bank Account Passbook containing the photograph and signed by an individual with attestation by the concerned Bank official
  6. Photo ID card issued by the Ministry of Home Affairs of Centre/State Governments
  7. Any Government issued photo ID card bearing the signatures of the individual

Address Proof: (Any of the following documents)

  1. AADHAAR Card
  2. Voter ID Card
  3. Driving License (DL)/Registration Certificate (RC)
  4. Water Bill (Not older than 3 Months).
  5. Electricity Bill (Not older than 3 Months)
  6. Latest Bank Statements signed by the bank (Not older than 3 Months)
  7. GST certificate
  8. Property Tax/ Corporation/ Municipal Corporation Receipt

  • Why is Digital Signature Certificate (DSC) required?

A digital signature can be presented electronically to prove one’s identity, to access information or services on the internet or to sign certain documents digitally. 

2. Obtain a Director Identification Number (DIN):

  • What is Director Identification Number?
  • Director Identification Number (DIN) is a unique 8-digit number that is allotted by Central Government to the individuals who intend to become a director in a company. 
  • DIN once allotted is valid for lifetime of a director until cancelled, surrendered or deactivated.
  • How to apply for DIN?
  1. SPICe Form:

Application of allotment of DIN’s to the proposed first directors in respect of new companies

      shall be made in SPICe Form.

  1. DIR-3 Form:

Any person intending to become a director in an already existing company shall have to make

an application in eForm DIR-3 for allotment of DIN.

  1. DIR-6 Form:

Any changes in the particulars of the directors shall be filed in form DIR-6.

To apply for DIN, the above forms are to be filed electronically. It has to be digitally signed

and then uploaded on the MCA21 portal.

3. Registration on the MCA Portal:

  1. Open your internet browser. (Google chrome, Internet explorer)
  2. Open the MCA website. ( http://www.mca.gov.in/ )
  3. At the top cetre
  4. , there is a register option as shown in the image below.
  1. Click on “Register” and the Registration tab will open.
  1. Fill all the details in the Registration form and your registration on the MCA portal is complete. The Registration form will look like the image attached below.

Registration form 

Registration form (Contd..)

4. Obtain a certificate of incorporation:

  • What is certificate of incorporation?

A certificate of incorporation is a legal document relating to the formation of a company or a corporation.

  • What information is required to prepare a Certificate of Incorporation?

A basic certificate of incorporation usually includes:

  • Name of the state
  • Business code where the entity is organized
  • Company name
  • Company legal address
  • Registered Agent name and address
  • Registered agent consent of appointment
  • Quantity of authorized shares of stock
  • Value of the shares of stock
  • Main purpose of the business
  • Name and address of the initial board of directors
  • Name and address of the Incorporator
  • Date
  • Signature of the Incorporator
  • How many days does it take to get the Certificate of Incorporation?

It takes about 8-10 working days to get the Certificate of Incorporation.

Once the RoC issues your Certificate of Incorporation, you are ready to start conducting business in India and start your journey as an entrepreneur in the diverse market of India!

So, what have you decided? What business are you planning to start? Let us know in the comments and we could help you with the digital marketing aspect of it!

How to Start A Startup in Bangalore?

How to start a startup in Bangalore_ - IODED

Why join the navy if you can be a pirate? Bangalore, the Silicon Valley of India, is known for fulfilling the dreams of new entrepreneurs. The IT hub has several opportunities for passionate entrepreneurs to kick start and run their enterprise. The startup policy launched by the Karnataka government aims to help and support startups to reach their full potential. With increasing opportunities and good support from the government, entrepreneurs can build strong business models that can significantly contribute to the economic development of our country.  

With such golden opportunities, entrepreneurs can start their start up journey from a city like Bangalore. However, many people don’t become entrepreneurs because they don’t know how to start a startup. This article will help you answer all your queries related to starting a startup, registration process and workspace selection.

Table of Content

1. Get an idea.
2. Understand the potential.
3. Collect the resources.
4. Register a company.
5. Select a workplace.

How to Start a Startup in Bangalore?

1.) Get an 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.

What is a business idea?

A business idea is a concept that can be used for financial and commercial gain. It typically centers around selling a product or service that can be sold for money in return. An idea is like the brain of a business. Right ideas implemented at the right time can lead to a very profitable business.

How to get a business idea?

You want to start a business? Awesome. There is no textbook answer to this question. But here are some tips:

  • Identify your biggest source of satisfaction:

I know it’s cliché but find something you love to do. Choose a job you love and you will never have to work a day in your life.

  • Identify your frustration: 

Don’t just lock yourself in a room trying to come up with an idea no one has ever thought of. Instead, live your life and find something that bothers you. Then, figure out how to fix that problem, and you have a business.

  • Think about the world’s biggest problems – (15 – 20 years from now):

 

 

People like Elon Musk and Richard Branson are forward thinking innovators. They brainstormed the solutions to future problems. This could help you think with a new perspective for getting new and innovative ideas.

2.) Understand the potential:

Potential markets are the most important part of a startup’s future growth. A potential market is a large group of consumers who have shown some level of interest in buying a particular product or service. It is essential to identify the potential market. To do this, you must look for people who are a certain age, certain gender, certain demography and then examine their needs. Understanding the potential market proves that you have a future. Once you’ve identified a potential market, the key element will be to get the right message to the right person at the right time. 

 

3.) Collect the resources:

  • Select a Name and Legal structure.

There are 5 choices while selecting a legal structure:

  • Sole Proprietorship
  • Partnership
  • One Person Company
  • Private limited company
  • Public limited company

  • Register a domain name for your startup’s website:

You can use platforms like Go Daddy, Big Rock or Hosting Raja to purchase a domain name.

(Can provide link for How to register a domain name for Startups)

  • Obtain a registration with ROC and GST.

  • Open a company bank account.

  • Lease office, Warehouse or Retail space.
  • Obtain licenses and Permits.

  • Hire employees (If required)

(Can provide link of People every startup needs with another article)

  • Obtain business insurance.

  • Start Marketing:

Use Social Media platforms like Facebook, Instagram, LinkedIn, Twitter and Snapchat to promote your company. You can also market the company using Search Engine Optimization (SEO), Email marketing, Google Ads, Facebook ads, LinkedIn ads and YouTube ads if there is more budget. 

(Can provide link of How digital marketing helps in the growth of a startup)

4.) Register a Company:

Now that you have selected all the schemes, you must be confused about the registration process. Well, Relax. The process has become very easy nowadays. You can register and start a startup company within 7 – 15 working days. All you have to do is fill some forms and get some signatures. 

(Can provide link of How to register a startup company)

 

5.) Select a workplace:

Selection of workplace is taken for granted by many people. But it is a very important element. 

There are many researches which prove a correlation between the quality of a workplace and the productivity of an employee. A startup can either use a coworking space or lease a serviced office. This depends on the space needs and budget. If you have a flexible budget and you need very less working space, then coworking space is the right choice for you. However, if you need an office space that is large, then a serviced office is the right choice for you.

An entrepreneur often wonders How to start a startup because of the numerous challenges it brings. It could be monetary and non-monetary challenges, quitting a regular job or coming up with new ideas. However, Success and growth only come through continuous effort and hard work. There are many Indian startups that have overcome all these challenges and are internationally recognized as of today. Some of the startups that we can take inspiration from are Flipkart, Ola cabs, OYO rooms, Cure fit, Paytm and Zomato.

Well, now that you know how to start a startup, you can start working on your dreams, Make your life a dream and dream a reality. Make sure you keep in mind all these suggestions to overcome the initial challenges that most entrepreneurs have. 

You must also read – 

10 Important Things To Consider Before Starting A Startup

10 Important Things To Consider Before Starting A Startup

10 Important Things To Consider Before Starting A Startup

Many people are thinking to start the start-up in the present world but not all people get success.

After helping more than 1000 businesses we have listed down these 10 most important points to consider before you start your own startup.

Point No. 10 will force you to think twice.

Table of content-

  1. Understand the scope
  2. Market Sizing
  3. Competition Analysis
  4. Finance Mapping
  5. Risk Analysis
  6. Timelines
  7. Testing
  8. Marketing Strategy
  9. Find Proper Talent
  10. Your Partners

1.Understand the scope-

Just having the brilliant Idea does not mean that business is going to be successful. 

No matter how unique your business idea is, you should understand the scope of business before you start it.

 Even the unique business ideas fail because of not having a scope in the market.

To understand the scope of the market you need to do the research. 

It is very important to deliver what your customer wants, not what you want.

2. Market sizing-

 Market sizing is another very important part of a startup. Market sizing is done to understand the potential of the market. 

To understand the market sizing we generally use the “bottoms-up-approach” – Breaking down a big number into smaller sets of numbers and then rolling them back to understand the size of the market

For example you can ask yourself these questions –

 How many water coolers can be sold in India in a  year?

 How many people will be needing morning breakfast in the office in Bangalore? 

How many people need bike repairing services on doorstep in Bangalore?

While answering  these types of questions, at the end you will get to know how much maximum revenue you can generate at the end of the year.

3. Competition analysis-

Before you start any business it is very important to understand your competition as well. 

Try to visit their stores or shops. 

If they don’t have any physical store and shop then call them and ask all the possible questions as a customer.

Visit the websites of all your competitors, understand their content strategy and get yourself signed up to their mailing lists. By doing this you’ll have an idea about their automation and email campaigns.

Click on their ads on Google, Facebook and other platforms to understand how do they retarget you.  

Understand their strength and weakness, & suppliers and customers. This will give a rough idea about your position in the market.

4. Finance Mapping-

Money is a big topic when it comes to starting a business. If you do not map the faniance before you start chances of your failure are very high.

Is it going to be a bootstrap business? 

Or are you going to take a small loan?

Should you look for investors in the beginning?

If you want the investment then how much is this?

You should have answers of these questions in the beginning itself.

Borrowing the money for no reason can sometimes lead to personal and professional conflicts.

If your company can grow only with the help of professional investors then start preparing the proper documents and balance sheets. These are going to help you further.

5. Risk analysis – 

It is important to analyse the risk before we start any business.We perform this risk analysis activity to identify the possible issues in any startup

It is not possible to forecast each and every risk in any business but If we recognise and analyse the potential risks then we can save a lot of time and energy later.

6. Timelines – 

It is very important for a new start-up to fix the deadline for every work. With every plan  you should also make a deadline for it to be executed.

 Every team member should know about your plans and the deadlines you have fixed.  

Not being able to execute the plan what you have conducted is one of the most common reasons of failure.

Time is equally important as money in startups and people don’t recognise it in the beginning.

7. Testing– 

Before you come to the conclusion to start a business you have to test your business model first  while you are a full time employee itself. 

 It is not good to quit your job just to do a business because you want to do it without testing it.

You have to verify and crosscheck the plans and the other parameters what you have decided for your startup.

As we know that business is the calculated risk and calculation should be on the basis of testing.

By doing this testing you will understand that what your customers like what your customers dislike, is it good to go with the same product and services what you have? or do you need to modify your plan a little bit?

Knowing the answers to these kinds of questions is also important before you start your startup.

8. Marketing strategy- 

To prepare a marketing strategy for a Startup you don’t need to be a very good marketer.  Rather you should have an understanding of your niche.

Keep yourself in feet of your customers and think about where you can find them.

One of the easiest ways to grow a business is digital marketing so you should be focusing on digital marketing more in the beginning depending upon the type of startup you are into.

Make sure that before starting the marketing you have achievable marketing goals that are aligned with the plans and targets.

Without a marketing goal you should never start marketing.

You must also read – 

10 Ways Digital Marketing Can Help Startups

 

9. Find  proper  talent- 

It is one of the very difficult tasks of a Startup to find the right talent.

 We have seen people hiring  anybody to complete the work because they are not finding  the right talent. 

By doing this you are harming your own business. 

Do not hire people who are not aligned to your company values and goals.

You have to  interview thousands of people just to get that Core Team of your startup.

 Startup definitely depends on the core team members in the beginning so do not compromise in hiring the core team.

  10.)  Your Partners-

Do not partner with somebody because you are not able to find a partner. 

Not everyone can be your startup partner remember this.

Many people boast about themselves and they do not have any proven track record to run a company or to do something great in their field.

 They will promise everything and when it comes to execution they won’t be able to do it.  That’s when you will suffer a lot.

Try to partner with the guy who has different skills than you so that  both of you can use your skills in developing the organisation and your skills will not be wasted in arguing and planning.

Always partner with the guy who wants to learn and doesn’t hesitate in asking for the help.

You shouldn’t be partnering with the people who are not having similar work ethics and lifestyle values like you.

 

Related Articles –

How to Start A Startup in Bangalore?