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Here’s What You Need To Know About the Business Mentoring Programme MSME Prerna

DU Desk — Wed, 04 Aug 2021 08:35:08 +0000

The MSME sector is now reliant and expectant of government initiatives that will rescue them from the throes of despair. Help from the government is the only way the sector can revive. The state of Telangana has been proactive in launching several initiatives for start-ups and MSMEs. MSME Prerna is one such newly launched event that will empower entrepreneurs in the MSME sector.

What is MSME Prerna?

MSME Prerna is a Business Mentoring Program recently launched by Indian Bank which is the first of its kind by the banking company. It’s an initiative aimed at empowering MSMEs (micro, small and medium sized enterprises ) by enabling them to drive greater business efficiency, optimise value and capacity. It offers training through a series of virtual programs to imbue a sense of confidence into budding or aspiring entrepreneurs.

Everything you need to know about MSME Prerna

The programme was launched in the State of Telangana in the Telugu language but caters to entrepreneurs across different Indian states. Launched in partnership with Poornatha & Co., a Business Management Consultant from Tamil Nadu, MSME Prerna is a web-based training programme that will communicate with users in simple, jargon-free terminologies. 10 virtual programmes have already concluded in the states of Uttar Pradesh, Tamil Nadu, Pondicherry and Uttarakhand. There are plans for phased, pan India programmes to reach maximum entrepreneurs who can benefit from the sessions.

Beneficiaries of the programme

The main beneficiaries of the MSME Prerna programme are budding entrepreneurs in the state of Telangana but will eventually cater to entrepreneurs across various states. The programme is specially interested in aiding women entrepreneurs in the country as well as entrepreneurs who are well versed in their local languages and dialects.

Benefits for MSMEs

MSMEs will develop managerial and financial capabilities through the programme. MSME Prerna will also generate awareness regarding initiatives by national and state governments and agencies for MSMEs. The parent organisation of the programme Indian Bank, is an MSME friendly institution that has provided financial support to 20 lakh MSMEs and provided credit exposure worth more than INR 70180 Cr. The Telangana State Finance Corporation (TSFC) will collaborate with Indian Bank to develop innovative mechanisms that will help MSMEs.

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Launched in partnership with Poornatha & Co., a Business Management Consultant from Tamil Nadu, MSME Prerna is a web-based training programme that will communicate with users in simple, jargon-free terminologies.

What’s in it for me?

MSMEs in Telangana and across the country have many avenues to participate in and avail benefits. Commercial banks like Indian Bank may collaborate with SME and start-up initiatives in the state like WE-Hub (Women Entrepreneurs Hub) and T-Hub (Technology hub) government initiatives. Indian Bank has already extended financial support to about 8.25 lakh MSME units amounting to INR 63,251 Cr in the state of Telangana. Their participation in other initiatives only spells good news for MSMEs and start-ups.

By participating in the programme, you will gain relevant knowledge, develop the confidence required to move forward as entrepreneurs, and gain better decision making abilities. There are skill development exercises and capacity building workshops to participate in. The entire programme is a hand holding exercise for entrepreneurs and a unique one as well. Indian Bank’s efforts will inspire more commercial banks to extend support to Indian MSMEs which are currently in dire need of all the help it can get.

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Blunders to Avoid When Relocating to US

Shalmoli Sarkar — Thu, 29 Jul 2021 10:30:09 +0000

India is home to around 38000 startups making it the third-largest in the world. Though it is giving birth to unicorn startups and there has been a significant development of incubators and monetary initiatives to help seed the entrepreneurial spirit, it still has to travel a long road to create a more startup-friendly ecosystem.

Why do startups want to relocate to the US?

The fuel of any venture to begin is to secure funding, where the path to get one is a bumpy one. This is because in the US the startups can receive funding based on a strong business proposition made without revenue or a set business model. Startups there atleast get the opportunity to prove their value proposition and test products before releasing them to the market. Whereas, on the contrary in India the access to funding is limited resulting in startups stressing on monetisation, revenue, and lean operations even though having an interesting business concept on hand.

Startups in India receive funding only when they have a working product and a proven business model with its proof being revenue. Without any cushion of funding, many Indian startups find it imperative to relocate their business to the USA. Moreover, the cost of customer acquisition for an Indian startup to operate on American soil is inexpensive, since the consumers’ loyalty and repeat business depends upon a simple mantra of superior customer service, this strategy will help to generate revenues first. The startups, especially those operating in enterprise tech, find it difficult to scale their business in India since several family-run businesses find it hard to trust the solutions of a young startup. Also India lacks funding for young technology startups in India that in the US is abundant.

Much said about the pros of relocating business to the US, here are some of the blunders you might make while relocating the business there.

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In the US startups can receive funding based on a strong business proposition made without revenue or a set business model.

The Top 5 Blunders to Avoid While Relocating Business to the USA

Insufficient Market knowledge: The presence of tech moguls and customers entices startup founders to bring something new to the market and makes it the largest playing ground. But the first mistake which Indian entrepreneurs tend to make is which city to choose? While entering a new market the entrepreneur is initially a salesperson and needs to meet with the customers and investors of that region to gain their early attention before relocating full time. For instance, If the startup is in enterprise tech then Silicon Valley is the city; if the startup is in health tech then North Carolina is a better city.
Not knowing the marketing methods: This goes without saying that cultural differences are significant and it is reflected in marketing content. The USA is a country of low context culture meaning that they communicate information indirect, explicit, and precise ways. Entrepreneurs need to research more and look at similar ads for products similar to yours. If we are opting for print marketing for a startup based in Silicon Valley, then the approach should be to connect with the tech publications and media.

Not Knowing about the costs and taxes involved: The cost of relocation from one country to another is a must to consider as there are several hidden or secondary costs involved. Relocating to a new location would also mean considering the overhead costs that will impact the routine business operations. Things like lease, mortgage payments, utilities, shipping and wages will impact the cost. When moving to new countries, it is important to assess the tax situation of your new location. Depending on where you are relocating, taxes could have a huge impact on the profitability of your organization.

Not considering the growth capabilities: The entrepreneurs must think about the long-term scenario of the business. For instance, if the business is on a growth path and has plans to increase the employee size in the next 3 yrs, then it is important to assess the labour pool to support the growth of the business. It is easy for an enterprise tech startup or an e-commerce startup to find developers, digital marketers, etc. but would be difficult to find professionals in farm science for agritech startups. Growth capabilities do not limit to human capital but also apply to the growth of the facility space or even the capacity of local shipping companies.
Not doing a check on the scope of products and services: Say here we take a SaaS-based enterprise tech startup where there can be two possibilities i.e. create a better product that is already available in the market like developing better CRM solutions or better accounting software or marketing automation tools. The second possibility lies in building something in a completely new category which can be risky with its pitfalls disguised as opportunities. The companies in the first possibility do not require to relocate, it can be started in India with local hires and talent and selling high-quality remote services to middle-sized companies around the globe. The second option is ideal for targeting the more advanced SaaS software market in the United States.

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What are the different types of business ownership?

Pranjal Pravin — Tue, 01 Jun 2021 11:35:04 +0000

Whenever we talk or discuss about business, we usually start with terminologies like the vision, the mission of the business, how they operate, what are the different levels involved and so on.

But before jumping into the land of starting a business or even owning one, we not only need to be aware of the above or even the geographic and political factors but also ask ourselves the main question, what are the different types of businesses?

The different types of businesses give an outline of a structure to the ownership world and without a structure, anything could be read like an open book ready to be disassembled like a rusty machine.

These businesses might be owned by a single person or a small group of people or even run by a large charitable organization with a notion to help. The point of differentiation is not just the amount of people but also the legalities that follow while being a part of them.

This legal and ownership structure of a business determines various factors- from the taxes that the business needs to pay to the profit distribution, the responsibilities that the owner or multiple owners have, ultimately determining the paperwork that the businesses have to go through to finally set up.

So, what are these different types of business ownership and how do you determine which is the right one for you?

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The different types of businesses give an outline of a structure to the ownership world and without a structure, anything could be read like an open book ready to be disassembled like a rusty machine.

Sole Proprietorship or Single Ownership

As the name suggests, the ownership of this kind of business falls in the hands of one single person, who is deemed as the sole or the final decision-making authority for the business. Here, the owner is the one responsible for all the assets and liabilities including both personal and professional ones.

With the profit or loss completely being handled by them, an advantage to being a sole proprietor is that these kinds of businesses are easy to set up since you’re the ultimate decision-maker but on the other hand you have to be responsible for all the liabilities and debts at any given point of time. Looking at the positives, the expenses to start a single ownership business is majorly minimal in the beginning and it is easier and flexible for the owner to operate.

Now, this does not mean that they should work alone. Like any other organization, they can always employ people to expand their businesses but any responsibilities from hiring to firing to giving profit to bearing the debt, to raising funds, everything falls on the head of the owner.

Examples of sole proprietorship or enterprises run by a single owner could be a small shop to sell handmade goods or an auto repair shop, a working plant to provide goods carved from wood, etc.

Given the above examples, the single ownership businesses have their fair share of ups and downs but given the advantages such as minimum legal restrictions, enjoying all the profit and also managing the raw materials and manufacturing methods to yourself, these assurances give a good deal of motivation and incentive to flourish.

Partnerships

Moving on to the next type of ownership we have Partnerships. These kinds of businesses involve two or more people as the owners of the business. When the time for the owner comes to realize that the potential for their business is much more than they could handle and they might not be in a position to hold all the responsibilities and duties that come to handle a business, then comes the entry for a co-owner or co-owners depending on the decision and situation.

Now, these partnerships could be of two types:

General partnerships

Running on a similar idea of single ownership, where two or more people with the same vision and mission come together through a legal contract to grow a business. Every partner here can act as a sole owner and have full control of the business along with owning full rights to all the profits and debts sustained by the business. The incentive for success becomes high as large capital is invested from both sides and the firm can hold better talents and skills.

Along with that, if the business goes into loss, there’s more than one person to handle the situation and also attach tax advantages with the business. Examples of a general partnership could be retail trade organizations, small engineering firms, law firms, medical clinics, etc.

Limited Partnerships

A form of the partnership business, here although the partners share the profit generated from the business they can’t interfere with the management or decision making of the firm. As the word suggests, limited partners have their authority limited to the amount of investment made into the business.

Depending on the type of situation and legal contracts, these types of business are easier and also less costly so all the investors and lenders who were earlier hesitating to invest in the business have now an incentive to go ahead without much of a risk.

Joint-stock organization/Companies

There are two different types of Joint-stock organizations:

Private limited companies

The number of members for this type of business ranges from 2 to 50 excluding any employee or ex-employee shareholders. The money or capital is collected from private partners where all of them might not be active but these types of organizations restrict the right to transfer shares and avoid the public to get ownership on shares or debentures.

Although there isn’t a need for consent of directors in these types of businesses and also, they don’t need any certificate from a registrar for the initiation of business but they do require to hold a general meeting at certain periods to discuss its profit and loss generation.

They also need to send a certificate to the registrar of the companies along with the returns stating that they don’t have more than 50 shareholders on their account.

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With a democratic form of ownership, these organizations promote cooperation and mutual belief and understanding of self-help.

Public Limited Companies

Unlike private ownership, the money in here is collected through the public in small amounts of shares having a low face value. The public limited companies have to file with the registrar of Joint Stock Companies several documents. Some of them involve the consent of directors, list of directors, director’s contract etc. where they can start the business only once they receive the certificate.

These businesses are responsible for holding a statutory meeting and issuing a statutory report to all the members and also the registrar within a given time. With no restriction on the transfer of shares, the company is liable to get its account audited every year by the registered auditors’ and also hold a general meeting every year.

Since the shares are transferable, public limited companies have a huge potential to raise a good sum of money and also acquire the services of specialists. Some examples of a public limited company would be Steel mills and Fertilizer factories.

Cooperative Societies or Organizations

Containing a mix of features from both the large partnerships and some from corporations, here the members of the cooperative societies buy shares on their own and then the amalgamated profit gets distributed among its members. Each member of the society is given the right to vote only one time so that the concentration of power does not fall into few hands.

These kinds of organizations aim to provide goods and services to their members at a cost and therefore it is deemed as a kind of voluntary, democratic ownership which is usually formed by a couple of motivated members who believe in obtaining necessities of everyday life at rates lower than those of the market.

With a democratic form of ownership, these organizations promote cooperation and mutual belief and understanding of self-help. With no one man making huge profits, the monetary help for these businesses can be secured even from the government.

Examples of Cooperative Societies include Consumer cooperatives in retail trade or producer cooperatives for buying and selling items such as dairy products, grains, fruits, etc.

Public Sector Companies

There are three different ways of managing a public enterprise:
Either they are owned by the state, or they are managed by the state or they are both owned as well as managed by the state. Here enterprises fall into the hands of the government as they are the ones to control and produce the supply of goods and services which are required by the society.

These public sector companies open the doors for those industries which are in dire need of a huge amount of capital and don’t have enough resources to flourish under the umbrella of the private sector.

The consumers get the befit of greater, better and cheaper goods and also encourage the growth and nourishment of the under-developed regions of the country. Although there could be sometimes too much interference by the government and also delay in the decision-making process, at the end of the day necessities like raw materials, fuel, power and transport get made easily available to them.

Private Sector Companies

Last but not the least, private sector companies. As the name suggests, private sector companies are exactly the opposite of how the public sector companies operate. One of the points that stand out for them is that they do not indulge themselves in businesses where profit margins are low or where there is a huge risk involved.

Run by various businessmen from various sectors who possess an in-depth knowledge of the sector they come from, the profitability factor along with efficiency is always focused on very high levels along with a quick decision-making capability as compared to the public sector companies.

As there is minimal to no interference from the government, sometimes the situation leads to having a concentration of profits only in a few hands and also over-exploitation of the labour involved which results in an unbalanced growth of industries.

While looking at all these kinds of businesses, choosing the right one depends on certain factors, such as how much capital you have, how you want to handle the profit and loss management of your organization, what legalities and paperwork would be involved, so and so forth. It is indeed a tough and scary step for any entrepreneur.

There are equally compelling benefits and also hindrances that could be worrisome but the first and foremost step for any budding entrepreneur should be to educate themselves and weigh the pros and cons before stepping onto the world or business ownership. Ultimately, it requires a good amount of knowledge, confidence and support to take the first step and then eventually figure out what could be the right type of business to go for.

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What is a speculative business?

Pranjal Pravin — Sun, 30 May 2021 10:35:04 +0000

Before jumping on to what a speculative business means, let’s try and understand our income tax provision. If you’re a serviceman/servicewoman or a businessman/businesswoman doing that 9 to 5 or putting your all to grow that business and earning your bread and butter through that organisation then the income that you earn has a liability of undergoing the cycle of taxing which is processed by the government. As a taxpayer, any kind of income taxed falls under five major categories.

5 Heads of Income

Income from Salary– The salary that you earn at the end of every month is taxed at a certain tax bracket depending on the level of income you earn.
Income from house properties– If you have a single or few houses in your name then be ready to not only shell out the monthly EMI or instalment but also a certain level of money for the tax slab. After all, you’re going to reap the benefits of the house as an asset and every asset holds a major value in the eyes of the government.
Profits or gains of business– There’s an unprecedented amount of income that you earn from running a business and with certain guidelines from the government of the country you operate that business in, your business income is liable to be taxed at the end of every financial year
Income from capital gains– This defines the tax that is operated on all the income that you earn from the investment you have done at various places including mutual funds, share markets or even bitcoins.
Income from other sources– Finally there might be an income that you might be earning from running an Instagram page and getting good deals or consulting a business apart from your daily job. As with any other income, this side hustle of yours also falls under the bracket of getting taxed.

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India’s income tax provision does not define what speculative business is but rather it defines what a speculative transaction is.

Now when we are through with the five different kinds of tax categories, it’s time to recall tax filing of which of the categories has been the easiest and which has accounted for a major brain as well as paperwork. When it comes to the classification of income from your business or profession, it is much easier for you to get the required paperwork for this category as compared to defining the income from capital gains.

Some say that the income earned on the capital gains must rely on the amount of investment and frequency of transactions or gains per transaction. And if the transactions fall under the category of business, then it’s further categorised into 2 different classifications of being speculative and non-speculative.

Understanding a speculative transaction

India’s income tax provision does not define what speculative business is but rather it defines what a speculative transaction is. According to Section 43(5) of the Income-tax Act, the term speculative transaction implies a transaction in which the contract which includes the purchase or sale of any commodity like stocks and shares is settled periodically or eventually settled otherwise than the actual delivery or transfer of the commodities or scripts.

Simplifying the above words, let’s take an example of Intra-day trading. Intra-day trading refers to the trading of shares within the same day. So, considering this example, there is no delivery as the shares enter and exit from a given trading account on the same date without getting a chance to enter the DEMAT account.

As the delivery does not take place, the above transaction falls under the category of speculative transactions. To further simplify you could call a speculative income or transaction the one where the outcome does not depend on your hard work or skills or your experience and the practice that you have. It rather completely depends on your luck or chance factors.

Intra-day trading might be a sophisticated way to term the speculative transaction, but to further understand you could also deem the speculative transaction as the one which gives you an income from gambling or casinos or sometimes even a coin toss for that matter.

Just like any business, there are always exceptions to playing this game. So, for your ease, to deem any transaction as speculative, you need to have a clear understanding of what is and what is not included while considering a transaction speculative.

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The task of calculating a speculative income and understanding the whereabouts of the business is no doubt risky and complex to fathom.

What cannot be termed as speculative business?

Hedging contract concerning raw materials or merchandise

If you’re a businessman/ businesswoman in possession of raw materials for manufacturing and merchandise to be sold, it is highly likely that with time, the value of the raw materials will fluctuate. So, to save the price fluctuation between the period at which you bought your raw materials and sold them, you get into a contract. This particular contract is for saving your goods and not a speculative transaction.

Hedging contract in the aspect of stocks and shares

In a similar fashion to the above example, there are a lot of price speculations which are expected when you hold a certain number of stocks and shares and to seal the loss incurred because of that with your dealer or investor you get in a contract. Reiterating the same, that this contract is not a part of the speculative transaction.

Forward Contract

Forward contract here refers to a situation in which a member enters into a forward market or stock exchange in the course of any transaction like jobbing (all transactions are squared off during the same day) or arbitrage (purchase of commodity or security in one market for immediate sale in another market) to guard against loss which may arise in the ordinary course of his/her business as such member. To ease the definition of a forward market, this typical market refers to an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. This again is not deemed as a speculative transaction.

Trading in derivatives

As the name suggests, when your transaction is carried out electronically by the recognized brokers as defined per relevant statutes, the given transaction is supported by a time stamped contract note. This note indicates a unique client identity number and PAN (Permanent Account Number). The given transaction in respect of trading in derivatives are referred to in Securities Contracts (Regulation) Act, 1956 and carried out in recognized stock exchanges and not deemed as a speculative transaction.

Trading in commodity derivatives

Finally, a type of transaction that follows the same rules like the one given above and is very much eligible is carried out in respect of trading commodity derivatives in a recognized association. This association is chargeable to commodities transaction tax mentioned under Chapter VII of the Finance Act, 2013.

What happens when a speculative transaction takes place?

Taking a scenario where a taxpayer is involved with a lot of businesses along with a speculative one, the speculative business of this taxpayer will be deemed as a separate entity from any other business carried out by the taxpayer.

This helps in calculating the loss incurred by the speculative business or transaction. Section 73 of the Income Tax Act states that the losses from speculation business can only be set off against the profits of the speculative business which is quite unlike the loss from any other business which can be set off against the profits of other businesses.

Noting further points, the losses from a speculative business can be carried forward to a subsequent year, can only be set-off against the profit and gains of any speculative business in the respective subsequent year. For this given condition, it becomes imperative for any taxpayer to distinguish between the gains or losses from a speculative business to that of other businesses.

Another important thing to note is that the loss from the speculative business cannot be carried forward for a period greater than four assessment years beyond the year in which the loss was incurred. Also, if there is any expenditure and depreciation involved in the process of scientific research, if the depreciation or capital expenditure is carried forward in the speculative business then it is required to be set off first.

Can a single transaction constitute speculative business?

Well according to explanation 2 of section 28, a single transaction is insufficient unless there is a systematic or organised course of activity or conduct on the part of the assessee, it is clear that a single transaction is not possible. A single transaction done instead of actual delivery is not sufficient to stand by the explanation 2 of section 28 of the Income Tax Act, 1961 and there should be a plural set of speculative transactions. So, given the rules again, a single transaction cannot be deemed as a speculative transaction.

The takeaways

If you have to calculate the turnover for a speculative transaction or business the simply add both the positives and the negative differences to get the final turnover
As the income earned from a speculation gain is majorly through intra-day trading, Income from your speculation gains is taxed at the given normal rates.
Speculative transaction or business no doubt involves very high risk, but if the luck is in your favour, it also gives an equal amount of great returns. All in all, the motive should be to gain the maximum advantage of the fluctuations that happen in the market.
Always take care of what is and what is not included in a speculative transaction or business. Examples like hedging contracts or trading derivatives could be tricky as sometimes they confuse you as a speculative transaction, but keeping a note of these points and further educating yourself about the same helps in the long run.

The task of calculating a speculative income and understanding the whereabouts of the business is no doubt risky and complex to fathom. The taxpayer involved with all these transactions has to take care of several things and rules and regulations to distinguish their income from a normal to a speculative one. Ultimately it depends that no matter what the business, the time and money invested in is bringing you a good return and profit given all the legalities.

There will be many times where mistakes will be made and given rules and regulations will be misunderstood or misinterpreted depending on the type of business and gains involved. To avoid this, one thing has to be kept in mind, that any taxpayer should always be well versed with the clauses and continuously educate themselves with the given rules or consult someone who deals with these transactions daily to not fix themselves in unwanted tax transactions.

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What Are the Key Factors Behind the Growth of Findeed, a Consumer-Focused Fintech Startup?

Anju Nambiar — Sat, 08 May 2021 03:35:04 +0000

Findeed, a Bengaluru-based, consumer-focused Fintech start-up raised an undisclosed amount in a seed funding round in April, backed by Venture Highway, Anicut Angel Fund, and First Cheque. Let’s decode their growth strategy.

Findeed: The Growth Strategy

Well-identified USP

The first factor that set their growth strategy into motion has been their Unique Selling Proposition (USP). Findeed observed the way money borrowing arrangements were conducted among social constructs. They quickly identified a high social capital in the exchange of money between friends and family. Their approach of identifying and following social capital differentiated them from their peers and competitors.

Adopting GTM strategy

In the early days, Findeed adopted a go-to market (GTM) approach wherein they got manufacturing institutions, retail employers with intrinsic member connections on board as partners. Their objective was to gain customers through these partnerships.

Leveraging Community Bonding

Findeed leveraged community bonding, social co-operation, and capital in their technology approach as well as in their GTM strategy. Their strategy is mainly aimed at unlocking access to financial services. They leveraged data analytics, technology and community partnerships.

Experienced Leadership: A Key Factor in Growth

The vast experience brought into the business by the co-founders of Findeed has been the key factor which propelled the company’s growth forward. Co-founder Srividya Ramarathnam has 20 years of experience in strategy and growth across multiple sectors like e-commerce, financial services and management consulting. She also was pivotal in leading the fintech initiatives of Flipkart. Srividya has been a business leader at Intuit.

Sriram Shankar, Co-founder, has largely been a leader in growth, business, operations, and customer experiences at e-commerce, Insurtech, and SaaS companies. He has leadership experiences at Myntra and Digital Insurance.

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Findeed has had a very unique approach of combining technology and data to offer instant credit.

What’s in it for me?

There is no longer any financial security to fall back on during the pandemic. Financial access is becoming tougher to achieve as stronger waves of Covid-19 sweep across the country. Fintech start-ups thus have a responsibility of bridging the gap between undeserved users and access to financial services.

Credit access has mainly been hampered. Fintech start-ups that can provide differentiated financial services to solve these problems will make a mark in the start-up space. Findeed has had a very unique approach of combining technology and data to offer instant credit. Start-ups can follow suit by coming up with new and innovative solutions to improve financial access.

Findeed is a modern start-up which has brought true disruption into microfinancing. Their fundraisers have been successful because investors recognized the value and potentiality of the owners’ background and deep domain expertise. Their determination to offer real value to customers in financial services has also contributed to their funding success.

If you are an entrepreneur, you can present your financial expertise up front to convince investors.

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What is a ‘Pivot’ in a Business?

Roopali Kotwal — Mon, 26 Apr 2021 11:35:04 +0000

What does Pivot mean?

Pivot means a modification in the business strategy. This shift is applied to test a new approach for the startup business model post receiving feedback. In simple words, change in the startup idea for the business to survive in the market is ‘pivot’.

Why a Startup Might Need to Pivot?

Charles Darwin’s Theory, ‘Survival of the fittest’ explains a ‘pivot’ in a business well. The primary reason for companies to ‘pivot’ is ‘survival.’ When the current products or services are not meeting the needs of the market, a change in the direction of the business to be visible in the market, improve the revenue and survive is a must. However, ‘pivot’ shall only be considered after exhausting all the possible options.

Warning Signs to Decide ‘When’ to Pivot

The immense competition, stagnant company progress or a change in the business perspective can result in a ‘pivot.’ As an entrepreneur, you must watch out for the below warning signs to decide when to ‘pivot:’

Customer is Unable to Understand the Value

If you repeatedly explain to your customers how your product is solving their issues but, they still do not understand product value on their own. It means a market for your product does not exist as of now.

Product is not Scalable

Scalability is important for business survival. Therefore, if the product is not scalable with the available finances you may or may not have, a new approach may be required.

Product is not competitive

Products or services provided by your startup are good but still not good enough to motivate a client to switch. So, it may be time to work on the competitive edge.

Only a Part of the Product is useful

If part of the product provides a solution to the client but the product as a whole does not, you shall consider a shift in the business idea.

Customer isn’t Promoting the Product

First customers’ vs Future customers’ expectations will vary. Your first customers may not think that your product really provides a solution to their problem or maybe are unaware of their problems leading to a lack of passion to promote the product. Hence, the time to make a shift.

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Charles Darwin’s Theory, ‘Survival of the fittest’ explains a ‘pivot’ in a business well. The primary reason for companies to ‘pivot’ is ‘survival.’

What’s in it for me?

Absence of agility and adaptability to the customer need will result in business failure in the long run. Start-ups will need to adjust to the fact that they must make progressive changes to improve the product. Twitter is a perfect example of a ‘pivot’. Twitter – a popular social media platform to send short instant messages and updates is a pivot from a podcasting company known as ‘Odeo’ that could not compete with Apple’s iTunes.

In today’s times, Pandemic due to the outbreak of coronavirus became the main reason for many start-ups to make a ‘pivot.’ A Bengaluru based Space Designers Startup, 10by10 builds sustainable and smart solutions for both customers and the environment. Inspired by Do It Yourself (DIY) methodology, they designed ISO.POD, an instant isolation portable room to protect people/consumers against further infection.

Many businesses and their solutions became irrelevant as the demand changed and the start-ups which saw the opportunity in the pandemic as a ‘blessing in disguise’ survived.

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Is it Better to Be an Entrepreneur Or a Venture Capitalist?

Anju Nambiar — Tue, 20 Apr 2021 05:30:08 +0000

The Indian start-up ecosystem is booming post 2020. Despite a raging pandemic, start-ups managed to break all odds and touched an absolute new high. New start-ups are cropping up and venture capitalists are also taking centre stage along with them.

India recorded 6 new unicorns in just first week in April. The total number of unicorns currently in 2021 is 10 and April is being hailed as the unicorn month.

In India, what is happening in the start-up world is very bizarre and very amazing at the same time. There are start-up unicorns in every corner of India right now.

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New-age start-ups and micro-VCs are a match made in heaven. It’s your choice what side you want to be on because both are the right choices currently.

Why you should become an Entrepreneur.

A healthy and productive exchange is occurring between entrepreneurs and VCs currently where entrepreneurs are communicating ideas very well and are getting immense funding from Venture Capitalists. A trickle-down effect is happening for the start-up community where investors are increasingly interested in seed and series A funding rounds.

2021 is the year of fundraising for entrepreneurs and this is the right time to look for early-stage Venture Capitalists since they have become more accessible.

There is a funding gold rush happening and as an entrepreneur, this is the opportunity to jump in and seize funding with just a solid idea.

It’s the right time to become a micro-Venture Capitalist.

In the investor space, a lot of angel investors are opening micro funds to support early-stage start-ups. As an investor, these micro funds are putting their money in the right place where the potential is high. That place is the Indian start-up ecosystem.

The number of micro-Venture Capitalist funds in India are drastically increasing because of the kind of start-ups coming out of the Indian start-up ecosystem. They are all new age start-ups, and they have products which are very cost effective but technologically powerful and advanced. These start-ups are targeting global markets worth billions.

Set up a fund with a corpus below $30 M and invest in pre-seed and seed stage start-ups.

Investing beyond seed funding like series A will be tough as a new Venture Capitalist because there is currently a lot of aggression in the market. Big corporate VCs are investing heavily in start-ups and the competition is very high.

In the last 3 years, micro-VC’s have invested a total of $341 M in the Indian start-up ecosystem. This money has gone to 566 start-ups and a total of 730 deals have been closed.

Even if you can’t afford a lot of capital, you can help and guide bubbling start-ups by supporting them and offering them valuable resources like unconditional network access, expert guidance, and by assisting in fundraising from other Venture Capotalistss.

In the Indian investors’ landscape, micro-VCs are new age VC’s, a perfect match for new age start-ups.

They are providing risk capital which bigger VCs possibly cannot provide.

Big Venture Capitalists are investing a lot of money. But fledgling start-ups are not eligible for such large funding. Also, the founders are probably very raw, they don’t have the right knowledge. Most probably their pitches get rejected. These start-ups are considered high risk but promise high returns since they are backed by new age, enthusiastic, solid ideas in the tech domain.

Micros VCs seed funding these start-ups have high possibility of good returns because it is the season of unicorns. Your capital will be small, but you will be writing seed fund checks for the next generation of innovative start-up owners. There is a high chance that your checks are going to a worthy place.

As an example, iSeed is a Micro Venture Capitalist fund started by Utsav Somani who was a part of AngelList. iSeed recently got its second fund, 50M $. Which will be invested in the Indian start-up ecosystem.

What’s in it for me?

There is tremendous funding opportunity for entrepreneurs in 2021. Also, the next 10 years will be the years for India’s tech entrepreneurs. So, if you want to become an entrepreneur, the tech domain is most lucrative at the moment.

If you want to become a Venture Capitalist, the time is right to become a micro-VC. As a micro-VC investor, you can invest in start-ups who are in the absolute fledgling stage. You could also act as a mentor or first investor. Capital will be low to invest in this stage.

New-age start-ups and micro-VCs are a match made in heaven. Its your choice which sides you want to be on because both are the right choices at the moment.

The post Is it Better to Be an Entrepreneur Or a Venture Capitalist? appeared first on Dutch Uncles.

Who are the Greatest Social Entrepreneurs in Bihar?

Anju Nambiar — Mon, 19 Apr 2021 12:35:05 +0000

Social issues are many and multiplying in the country everyday. There is a need for ventures that take initiatives to resolve societal challenges. Social Entrepreneurship is the need of the hour since companies that actively take on the responsibility to close gaps within systems and alleviate troubles of the common man will profit not only their own business but also the country at large. Social entrepreneurs in Bihar are many and this article highlights some of the greatest.

Successful social entrepreneurs of Bihar

Dr. Birbal Jha

Dr. Birbal Jha is a social entrepreneur and Etymologist from Bihar who has been working towards the upliftment of the downtrodden communities in India. The Managing Director of Lingua Multiservices Pvt. Ltd., he is driven by the idea of ‘English for all’. Also the Chairman of Mithilalok Foundation, a social organisation working towards socio economic development, Dr. Jha wrote an appeal letter to the Prime Minister of India in March 2020 asking for the ‘Padma’ Award to be conferred to Mrs. Asha Devi, the mother of ‘Nirbhaya’.

Soon to be awarded the title of ‘Mithila Vibhuti’, he is the first person from North Bihar’s Mithilanchal region who connected 4 crores of Mythili speaking people through his flagship ‘save the paag campaign’. Thanks to his efforts, 30,000 youths from the poorest sections of society became fluent in English speaking.

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In social entrepreneurship, the definition of success is very different from a typical enterprise. Financials and balance sheets don’t determine the success of social enterprises.

Sabahat Azim

The CEO and founder of Glocal healthcare which provides telemedicine, Sabahat Azim is a social entrepreneur who has done a lot of good work in Bihar. He catered to the rural poor with affordable healthcare and was named the Social Entrepreneur 2020 by the World Economic Forum’s (WEF) Schwabb Foundation for social enterprise for his extraordinary work in providing affordable healthcare and India’s rural works. Sabahat Azim has spent most of his time doing rural service in India.

Under his leadership, in 10 years, Glocal Healthcare built 10 fully functional 100 bed multi-specialty hospitals in Bihar, Uttar Pradesh, Odisha, and West Bengal. It has set up 250 digital dispensaries.

Glocal’s telemedicine platform ‘helloLyf’ partners with Governments, NGO’s, hospitals and other healthcare organisations.

Gunajit Brahma

Gunajit Brahma is a social entrepreneur who was born in Assam and runs multiple companies like Baati Energy, Jeevanksh, and Farmeasy Technologies, among many others. Jeevanksh promotes and markets farm produce of organic farmers in North East India. Baati Energy provides renewable energy sources to uplift the quality of life in society. It also initiated a Solar Water Pumping project in the city of Bodh Gaya in Bihar.

Gunajit’s company Farmeasy works to cut down the burden of small-scale Indian farmers. It provides assistance to farmers to easily acquire farming benefits including loans, and insurance. The company determines whether it’s making a difference by keeping a tab on the number of farmer families associated with it at any given time. Farmeasy improved market linkage for farmers, and drastically reduced cost of production by rolling out a number of training programmes. Gunajit aspires to change the world one project at a time, and he teaches entrepreneurship to the students of IIM Indore as a visiting faculty.

What’s in it for me?

If you are an aspiring social entrepreneur, you have a lot to learn from the success of these three great social entrepreneurs in Bihar. Following in their footsteps, you can create a venture that addresses societal challenges.

With the inspiration received from their stories, you can work hard to break social barriers and aim to create a sense of equality and balance in society. The products or services you offer can provide solutions to seemingly unfair systems.

In social entrepreneurship, the definition of success is very different from a typical enterprise. Financials and balance sheets don’t determine the success of social enterprises. Social impact and change determines your success. Reaching this level requires the right mindset which is seen in the lives of the social entrepreneurs mentioned in this article.

The post Who are the Greatest Social Entrepreneurs in Bihar? appeared first on Dutch Uncles.

Can an IRS Officer be a Businessman at the Same Time?

Aakash Sharma — Mon, 19 Apr 2021 06:35:08 +0000

Many people wonder what life is like in civil services. While millions of people dream of entering various Indian civil services like IAS, IPS, IRS and others, some are not happy with life in the system when they get to it. Because of this dissatisfaction, they often turn to the life of business, start-ups and companies.

Let’s see what motivates and allows an Indian Revenue Service (IRS) officer to enter the business world. And can they do it without any difficulties?

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Private companies and corporate start-ups open to having IRS officers on-board have great packages for those with experience in government.

Can an IRS officer be a businessman?

The Indian Revenue Services, often abbreviated to IRS, is a Group A federal government service under the Government of India. Government regulations prohibit IRS officials from personally engaging in direct business acts while serving as bureaucrats.

However, retired IRS employees are allowed to do business. The Code of Conduct prohibits IRS officers from doing any other full-time work while on active duty. There should be no dispute of interest, even for part-time appointments that an officer might have. Besides, any side-vocation of an IRS officer should be non-remunerative.

Why might an IRS officer quit her or his job as a government employee?

The prospect of earning more by vocations like business start-ups, consulting for multinational corporations or the Indian divisions of global accounting firms is attractive. India being a developing economy, the business opportunities and the wealth associated in the country are a large growing behemoth. And everyone wants a part of it.

Talented and experienced people such as IRS officers have great market value in multinationals and start-ups with substantial growth prospects. Consulting roles in these areas generate a much higher income for IRS officers than their public work with the government.

The power and positioning that comes with government posts might be absent in private employment, but higher wages adequately compensate for this. Private companies find government employees’ skills and experience unmatched, as no professional in any other segment is exposed to the experience a government employee faces.

Conditions under which IRS officers can run their business

There are certain conditions under which an incumbent IRS officer can do business, key of which are:

Retired IRS officers can participate directly in any gainful activity.

Active IRS officers can resign to run their business.

IRS officers can use their legal money to make legal investments and buy stock.

Alternative Business Routes

IRS employees can also ask family and friends to work as mentors and start a business for them while sharing their ideas. However, the government should be aware of this effort. IRS officers can engage in certain activities and occupations as long as they are paid only for charitable purposes.

A plurality of rules prohibiting IRS employees from doing personal business is meant to avoid the possibility of a conflict of interest, as IRS employees are primarily designated with the development and implementation of government policies.

The post Can an IRS Officer be a Businessman at the Same Time? appeared first on Dutch Uncles.

Upcoming Conferences and Expos in the Restaurant and Food Services Sector

Roopali Kotwal — Sat, 20 Mar 2021 08:35:06 +0000

The wait is over! Some of the biggest Expos, Business Conferences, Summits, Conclaves and Tradeshows in Food and Beverage are on its way. They may prove beneficial to you and your start-ups in India and help the ones who want to exhibit or participate in the show. For instance, use of Presentation Board, create Company name template, use of Video or Slide show to draw attention, Social Media use to promote the Booth, some trade show giveaways and having an assistant and welcoming the visitors are the best practises one can follow.

2021: Tradeshows/Fairs, Exhibitions/Expos and Conferences:

International Conference on Nutrition & Health | 21^stMarch | Mysuru

National Conference on Advances in Science, Agriculture, Environmental & Biotechnology | 31^stMarch | Bengaluru

AAHAR – International Food & Hospitality Fair | 6^th– 10^th April | New Delhi

Foodtech Kerala | 20^th– 22^nd May | Kochi

North East Foodtech | 21^st– 23^rd May | Guwahati

GLOBOIL India, Conference & Exhibition | 27^th– 29^th May | Mumbai

Sugar Summit | 28^th– 29^th May | Goa

Organic Food International Conclave | 29^thMay | Goa

Food & Hotel India | 2^nd– 4^thJune | Mumbai

MSME Innovation & Start-up Summit & Time2Leap Awards | 12^thJune | Bengaluru

Bakers Technology Fair | 2^nd– 4^th July | Coimbatore

Food Pack India Expo | 23^rd– 25^th July | Chennai

World Mithai & Namkeen Convention & Expo | 29^th-31^st July | Jaipur

India Foodex-Bangalore | 5^th– 7^th August | Bengaluru

Food Trade Asia | 11^th– 13^th August | New Delhi

Bakers Technology Fair | 2^nd– 4^th September | Hyderabad

Annapoorna ANUFOOD India | 6^th- 8^th September | Mumbai

International Conference on Pharma and Food | 15^th– 16^th September | New Delhi

Drink Technology India | 20^th– 22^nd October | Mumbai

BIOFACH India | 28^th– 30^th October | Greater Noida

Halal Show India | 17^th– 19^th December | Mumbai

2021: Virtual Conference and Virtual Trade Show:

Cannabis Beverages presented by Torking Manes LLP | 24^thMarch @10:30 PM Asia/Calcutta Time

The Big Krill Show | 20^th– 21^st April @ 12: 30 PM Asia/Calcutta Time

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Tradeshows, Exhibitions, Business Conferences and Expos provide an opportunity for small business owners and start-ups to meet the industry leaders and influencers to get inspired, add value and positive change in their life.

Benefits of attending the business conferences

Educational Prospects– Apart from teleconference lines, web conferring, live events can be helpful to watch and learn from visual cues and body language of the speakers

In-Person Networking – Face to face conversation are always better in maintaining the connections and networking

Awareness about Competitors – There is nothing better than facing your fears so why not gather information about the competitors who may seem unreal otherwise

Promotion to Potential Clients – The place provides a great avenue for promoting and advertising the business

Creativity and Innovation – Attending business conferences and expos can break the monotony and can be a good change from the day-today operations. Thus, enhancing the creativity and leading to Innovation

What’s in it for me?

The Business to Business or Business to Consumers networking events, tradeshows & conferences shall support the small business owners, start-ups and decisions makers to grow the business by conveying the value of your company. It will be a value add and shall give you an opportunity to meet the industry leaders/influencers to get inspire and for a positive change.

There are few things which one can do before attending any such event. For instance, the official website for the entry fee, booking the space on time as a participant or as an exhibitor. Also, you may want to research the trade show that you will be attending, plan your budget and book your space much ahead of time, advertise much in advance. Know your audience and plan your trade show displays accordingly.

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