StartupTalky

Tag: ✍️ Opinions

  • Barriers Faced by Rural Businesses | Different Ways to Sell the Products Made by Villagers

    The article is contributed by Mr. Mahesh Choudhary, Founder & Chairman, Saraswati Global.

    Selling a product is not an easier task. It is an art to convince people to buy their products. While selling the products the buyer has to face barriers, must know about the strategies to sell, and the most significant is to know the differences between selling a product in a rural market and in a global market.

    What is the global market? The goods and services and labor can move freely across the globe. To establish good marketing in the global market a good knowledge of business must be the expertise of the person. Being a good business person we must know how to get consumers hooked with the products. Although it is difficult for all to sell their products and make it a well-known brand. But for villagers it is a demanding practice for them. There are a lot of barriers which they have to face before and during selling their products.

    The Barriers Villagers Face in Selling Their Products

    Reach/Access

    Access is one of the major barriers for the Villagers. It is difficult for the small entrepreneur to reach the consumers, give the information and Sell their products. With the limited electricity and little access to mass media, it is a challenge to reach consumers.

    Transportation

    Rural business people face a lot of lags due to lack of support and services. One of them is transportation. Transportation helps in movement of goods and services which ensure access according to customers, and act as a link between the producers and consumers. Transportation challenge factors include, lack of road maintenance, hike in fuel prices and vehicle services.

    Capital

    Capital, the most mandatory for business, acts as a barrier. The investment, capital amount, and money are significant for the commencement of business. But for rural entrepreneurs, it is the first barrier that they have to face to execute any business idea. Insufficient profit to cover overhead expenses can result from a lack of capital.

    Technology

    Entrepreneurs in urban cities generally use technological methods two manufacture their goods, because it cuts cost and time and gives a complete finish to the goods. But lack of proper knowledge in rural entrepreneurs affects the growth of their entrepreneurship. So they are completely based on labour work and handmade products, which take a lot of time to manufacture.

    Digitalisation

    Along with the lack of technology knowledge, rural entrepreneurs also don’t have a proper understanding of digitalisation which is hitting the global market vigorously. But improper knowledge of digitalisation adversely affects their entrepreneurship development.

    Competition

    One of the key successes to be a good entrepreneur is to beat the competitors in the market. This is the toughest key for the rural entrepreneurs to face existing competitors for their establishment. The existing competitors have good quality of resources and rural competitors lack them.

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    Lack of knowledge creates excessive fuss for rural entrepreneurs. Selling their manufactured products is a challenging task for them. So how can they deal with these? To tackle them rural entrepreneurs need support from NGOs and government as they can help them to promote rural enterprise.

    NGOs can help entrepreneurs by counselling them. By consulting rural entrepreneurs we can get to know resources and the requirements they need for the procedural activities. NGOs can help with their sources by providing them with enough resources to use for their activities.

    Government can help by providing a capital amount to small rural entrepreneurs. So that they could afford the requirements they need. Rural consumers nor rural entrepreneurs are able to operate smartphones which ultimately affects rural entrepreneurs. A counselling program can help them to train in it. Government can also arrange a counselling program to train them in every aspect of entrepreneurship. This can also lead them to digital and technological literacy.

    Lack of support and services can cause no profit in selling the products in the global market.

    Let’s find out the different ways where we can sell the product made by the Villagers.

    Ways to Sell Products Made by Villagers

    Personal Selling

    Face-to-face interaction selling is the best method for the rural marketer. Consumers search for reliable marketers. Here the customers can trust completely because they buy the products with their personal checks. This can lead to gaining trust and the buyers can also become regular consumers.

    Fairs and Exhibitions

    Fairs and exhibitions are like the part of the rural people. This is a great opportunity for entrepreneurs to launch and sell their products. A Lot of people come for entertainment. Through the different entertainment selling methods, consumers can easily attract to watch. With this method sometimes they also get convinced to buy them.

    E-COMMERCE

    E-commerce is on the rise as the trend of online shopping has become a trend in the last few years. E-Commerce is the marketplace where anybody can sell and buy their products. The online platform is not restricted to urban or rural people. Amazon, Flipkart, Etsy, craftvilla, etc are one of the E-Commerce platforms for buying and selling goods and services.

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    Social Media

    Along with e-commerce social media such as Instagram and Facebook are the best marketplace to create, sell and grow a brand. People mostly spend their time on social media. Since these platforms would have a wider reach to consumers.

    Channel Sales

    By channel sales, we know that it is the process of distribution of products to the market. It means the person can sell the product through the collaboration of another company.

  • The Future Of D2C Industry – Trends Lean Towards Data Analytics and Research

    The article is contributed by Shashank Jain, Co-founder, Strawfit (Bourgeon Foods LLP)

    Owing to a decade of technological advancement and the last few years of the pandemic, there has been a fundamental change in the way businesses and customers engage with each other. After the jolt that the traditional retail sector faced, there’s a rise in India’s currently growing direct-to-consumer phase, with D2C brands thriving as online channels have become the go-to destinations for almost every consumer. For those still struggling with the concept, Direct-to-Consumer, or D2C, is an emerging business model of a customised shopping experience where the product is provided directly to the customer by a business, bypassing any sort of middleman in between, hence being cost-efficient.

    With an estimated 700-800 D2C brands valued at over USD 100 billion by 2025, India is expected to be a hotspot for startups. A plethora of emerging service providers in India indicates the total addressable D2C market growth by over 15 times from 2015 to 2025. According to research by Statista, this total addressable market was valued at 33.1 billion U.S. dollars in 2020, which by 2025 was forecasted to grow almost threefold, making India a hotspot for startups. Currently, the segments that are growing at an ever-increasing speed in the Indian D2C market include consumer electronics and FMCG, with an expected worth of USD 43.2 billion and USD 30.8 billion, respectively, by 2025.

    The popularity of the D2C industry is booming and will continue to expand. To increase buyer-seller interaction, making purchasing more engaging, pleasurable, and long-term, brands in this space leverage certain market trends.

    Some of these trends that we recommend entrepreneurs in their operations are:

    ● Sustainable Manufacturing: Consumers are increasingly sceptical of brands that generate revenue through unethical business practices. Brands that are transparent about their business practices, from sourcing raw materials to manufacturing and supplying, generate more goodwill. Transparency creates trust, and people are more likely to buy from brands they trust. Brands that fail to build sustainability into their business models risk becoming less relevant to this new generation of consumers.

    ● Data Analytics: Until recently, brands had little access to customer data beyond surveys or third-party data. D2C enables brands to understand customers and their demands like never before, thanks to their continual personal connection with their customers through their experiences or surveys. Brands have realised that customer data is a powerful instrument that, when combined with analytics and technology, can be utilised to provide personalised experiences for customers.

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    ● Leveraging Social Media: Social networking is a strong tool for new businesses. Platforms like Facebook, Instagram, and Twitter can assist you in reaching an untapped worldwide audience and assist in developing a brand image in the market with existing competitors. Influencers have a strong and tailored hold on specific audiences, making them one of the newest and most powerful marketing tools. A product like a milk flavouring straw for kids, for example, can’t be directly promoted to them and is instead marketed to mommy bloggers and health bloggers. More than just following these trends, it takes a lot of work to create a solid revenue model for your business. Running a business at any stage of development is not easy. For this, it is essential to have proper planning. Here are some of the key takeaways that we believe can help these entrepreneurs make more informed decisions and develop more refined products, especially in the early stages of a business.

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    ● Bring forward a solution: Consumers are smart these days, searching for products that solve their current problems. The most common reason for a startup’s failure is a lack of market demand. You have a market need if your product solves an unpleasant, common, and repeatable problem for a large number of people. If not, then it can be easily overlooked by the customers.

    ● Focus on the product: The product you create is what makes up the face value of your brand and it’s a crucial task to make your product stand out in the market. Your main focus should be to at least give your product a competitive edge over the current competitors, so it seems like a convenient and better choice.

    ● Detailed Research: Before starting a business, thorough market research is essential. You have to research current trends, learn about the product, and understand its potential market and what your customers need. It also allows you to visualise your competition by telling you what other products and services like yours are available, customer reactions to them, their prices; etc.

    ● Financial Modelling: Managing monetary resources can be a tricky part that needs close attention. It is essential to have a well-developed financial model. From funding operations to having precise financial projections for the next few years, having a robust financial model is crucial for a business to grow. Don’t mind taking professional guidance to help you out with these things to avoid any major setback to your business.

    ● Keep trying and learning: Starting a business requires being inspired, motivated and willing to take risks. While every successful entrepreneur makes many mistakes, that doesn’t stop them from experimenting with their concepts and learning from their own and others’ mistakes. With that said, care also needs to be taken so that there is no undue waste of resources due to this experimenting.

    Conclusion

    With more people choosing to be independent buyers due to fading technological barriers, we believe that D2C is here to stay. It is an exciting time for entrepreneurs in the country to enter the market, especially with the boom in the startup culture. The times demand that entrepreneurs rethink how they interact with customers and their relationships with them. If played well, D2C can be the most powerful weapon a retail-based entrepreneur can hold.

  • 10 Modest Tax Proposals to Consider for the Next Budget [Funny Take]

    Article to be attributed to Mr. Sanjay Dangi, Director – Authum Investment and Infrastructure Ltd., & Financial investor to many startups.

    Lately I have been reading about Pigovian taxes – the idea that carefully designed taxes can have an impact on people’s behavior. These are often sin taxes – pricing bad behavior (like smoking or gambling) out of the market making the overall social cost very high. Thinking about it, I make 10 tax proposals for next year’s budget here. I know that it’s a far-off thing and you are still recovering from the breathless media coverage of the budget presented in February. But a budget takes a lot of planning, and I want to get my ideas in early.

    1. A 10% Pakora Tax
    2. Doubling GST on Loudspeakers
    3. A 30% Stunt Bike Tax
    4. A 10% Suit and Tie Tax
    5. A 20% Congestion Taxes
    6. A 100% Great Indian Wedding Tax
    7. A 20% Glass Building Tax
    8. A 100% Fairness Cream Tax
    9. A 28% Dog-walking Tax
    10. A 15% Adjournment Tax

    A 10% Pakora Tax

    Fat and sugar taxes aim to make a society healthier by taxing fatty and sugary foods extra. They have been tried in many countries with various levels of success. In India, Kerala has been the first (and so far, only) state to introduce such a tax, at 14.5%. With some studies showing obesity and diabetes rising in India, it is time to introduce this tax countrywide. Weaning people off excessive fried foods will not only reduce medical bills, but also save foreign exchange on imported palm oil (prices of which have skyrocketed this year). Ditto for sugary drinks and festival sweets.

    Doubling GST on Loudspeakers

    Recently there has been a lot of noise pollution about the noise pollution caused by loudspeakers. But we Indians love our noise – from deafening DJs at weddings to raucous processions. Banning loudspeakers will only put additional burdens on the overworked police. I instead propose that the 28% GST and 40.8% customs duty on loudspeakers be doubled – or even raised to 100%. The extra money can be used to hire more police, making our streets safer.

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    A 30% Stunt Bike Tax

    3 AM on our roads attracts a certain class of idiot – who either on his baap ka paisa or on udhar, buys a premium bike for racing and doing stunts. Somehow, they think that waking everybody up will impress girls. A Hayabusa will cost them more than a kidney, while a perfectly useful bike like a CD100 is beneath their contempt. A 30% tax will probably not deter them, but might pay for the government to install sound barriers on major roads.

    A 10% Suit and Tie Tax

    In 2009, Bangladesh banned suits and ties. They are ridiculously unsuitable for tropical weather like ours. People who wear them have to keep the AC on all day, and pour liters of deodorant on themselves. Both increase our petroleum import bill. To make matters worse, most of these are ill-fitted to our paunches as well. A 10% tax will curb the wearing of these suits, and offices can spend less on electricity. Those who do pay the tax will contribute to paying our oil import bills.

    A 20% Congestion Taxes

    American cities have been built around the car – with wide roads and ample parking. European and Asian cities, many of which are centuries old, were built around pedestrians with narrow streets and congested buildings. With greater prosperity, Indians have filled their cities with cars, so even the smallest towns today have traffic jams.

    Many European cities have imposed congestion taxes and generally succeeded in freeing up the roads. We need to reclaim our cities for our communities and make travel easier for all. Congestion taxes also help pay for public transport – which we need a lot more of.

    A 100% Great Indian Wedding Tax

    Mehndi, sangeet, phere, reception, bidaai and countless other wedding-related functions keep our people away from workplaces for several days at a time. They also cause families to ratchet up huge expenses, often going into debt. This is simply because of peer pressure and keeping up with the Joneses.

    I propose a 100% tax on weddings that exceed INR 1 lakh in expenses. Those who can’t afford them will have simpler weddings which are good for us all. Those who can pay for them will enrich public coffers. Many states have schemes to help poor women get married, and these taxes can help fund those schemes.

    A 20% Glass Building Tax

    Studies have shown that buildings with glass facades increase local heat and are contributing to climate change. The sun’s heat is reflected off the glass, so the building itself is not heated. But on a street full of buildings like these, the heat is trapped on the street, making a summer day unnecessarily hotter. These buildings also need to be air-conditioned because of the lack of ventilation, which causes a huge increase in their carbon footprint. Lastly – and this is my subjective opinion – these buildings are ugly.

    A tax proportionate to their carbon footprint will make sure that the government has money to pay for offset measures. It can also help fund architectural research into alternatives that are more aesthetic and sustainable.

    A 100% Fairness Cream Tax

    I would daresay this is self-explanatory. Our daughters should not be hurting themselves because boys have been taught to expect gori-chitti brides.

    A 28% Dog-walking Tax

    More than dogs today, dog-walkers have become a status symbol. What productive employment this gives to young men and women, I have no idea. I propose that dog-walking be brought under GST at 28%, in the hope that it will make people walk their dogs themselves and thus get some exercise.

    A 15% Adjournment Tax

    Tareekh pe tareekh is how most people will describe our justice system. Here’s a small idea that may help to reduce the 44 million pending cases in India. Every time a lawyer asks for an adjournment, they must pay a tax on their fees, that they cannot pass on to their clients. Judges may waive the tax if they feel the adjournment requested is legitimate. This might incentivize both bar and bench to wrap up cases quickly – and help pay for hiring more judges in our understaffed courts.

    Conclusion

    Will taxation solve all the above problems? Not by itself. Daru-cigarette taxes have been around for decades – and work only partially. Governments have learned through multiple experiments that outright prohibition only cause people to buy tobacco and alcohol illegally – often causing ‘hooch tragedies’. However, such ‘bad behavior’ taxes are a more democratic way of bringing social change in a country that bans things at the drop of a hat, or enacts draconian laws that often backfire. Taxes preserve people’s ability to choose – even if it is bad for them. They make things look bad, but don’t criminalize the people who do these things. True social changes need public awareness and participation – and such taxes can help fund these campaigns.

    There’s another benefit – both state and union governments can wean themselves off fuel taxes and give some relief to the common man. This is at a time when oil is taking a keen interest in USD 200 per barrel, and the public is looking for some relief from inflation.

    Looking forward to budget 2023.

  • Homegrown Fashion Brands Being Embraced Outside of Metropolitan India

    The article is contributed by Shivaani Jain – Co-Founder, TAGGD

    In this age of ‘new kind of fashionable’, it’s no longer uncool to sport homegrown labels. Back in 1991, the Indian economy opened doors and flooded the market with foreign goods. These were mostly lifestyle brands that Indians had long heard about, but never got to sample. Liberalisation also created the conditions for—maybe even inspired—indigenous creators to later prosper at home and also abroad.

    More than 30 years later, from those watershed weeks and months, Indian fashion designers – to name just one creative niche – are now making waves, among local as well as international clients. Once restricted to those with money to spend, fashion has become democratised as it has penetrated non-metropolitan India. And because it is online, it is widely available, accessible and affordable. No wonder it is being endorsed and embraced by millions who reside off the beaten metro track, who crave the same apparel and attire – casual, formal and informal – as their megalopolis-living counterparts, and also the same comforts and indulgences.

    Indeed, the bigger transformation is happening outside of Delhi, Mumbai, and Bangalore. Today, it is small-town India – small in size but certainly not in aspiration – that is shaping the India of the future, in terms of what it buys and even the lifestyle trends to come. So, what a Moradabad, a Coimbatore, a Nasik and a Cuttack thinks today, India will likely think the same tomorrow.

    The changing face of lifestyle

    This is not entirely unexpected, but it has been hastened by COVID-19, a process quickened by families being confined indoors and thus relying on e-commerce to take care of their desires as much as their needs. The pandemic brought home to us that life indeed is short, and we might as well make the most of it while we’re at it. So, if wearing that funky outfit, or that sexy one-piece (designed by one of us) allows us to feel good, why not indulge?

    Unsurprisingly, it’s the digital revolution that has made e-commerce accessible to Tier 2 and Tier 3 markets, thanks to the government’s Digital India initiative. This has enabled fashion and other brands alike to target the country’s non-metro towns and cities as future growth areas while giving the clientele here options besides the tried-and-tested names, and the opportunity to stay in touch with the latest trends in the fashion domain.

    Because, when it comes to fashion, brands and collections are the same almost everywhere, and online shoppers are not guaranteed any exclusivity when they go looking to add to their wardrobes. Hence, now, they are more than willing to try out – and accept – labels that don’t come with the big-city tag, and to experiment with brands that are new to the market, and of which little is known.

    In fact, the very thought of helping homegrown brands from locations off the fashion radar, in towns and cities away from the major urban centers, has empowered patrons in these places to own and wear such labels with pride. And while the brands may lack the staying power and cachet of the top-of-the-line labels, they do understand the power and magic of digital. So, assisted by on-off lockdowns and a population habituated to virtual shopping, they are evolving by adapting to the digital savviness of the consumer as well as the changing face of the industry.

    The success of homegrown brands has been further driven by the ubiquity and high impact of influencers. Alongside, the rise of influencer marketing has given small-city youth a platform to leverage their presence on social media and earn a decent living. Fashion offers rewards as much as it lifts spirits and boosts confidence.

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    At home with fashion

    The well-heeled and well-travelled may still opt for high-street chains such as Zara, Marks & Spencer or H&M (among many others) but a growing number of Indians are much less hung up about the ‘name’ than their predecessors once were. And the reason behind this change is the fact that there are many more indigenous designers and labels out there, a majority of them boasting creations of great standards, and more than capable of giving British, European and American brands a good run for their money.

    Moreover, these made-in-India brands are nowhere near as overpriced as some of their international counterparts are. In fact, they are very reasonable on the average middle-class pocket, offering fashion and lifestyle that is affordable for you and me.

    The metros may be where all the action is, but hidden from the eyes of many metro denizens is what’s happening in India’s Tier 2 and Tier 3 cities. Already, girls and boys from these urban spaces form a sizeable chunk of service economy across the country. This is a demographic that is growing, and it is one that will constitute a greater part of the workforce of tomorrow’s India. And, as their profiles grow, so do their ambitions. These confident Indians seek nothing but the best—in clothes and accessories, in gadgets and cars, in holidays and experiences.

    There are e-commerce marketplaces and e-retailers successfully catering to and answering this swelling demand. Yet, while women’s wear and menswear might make up the bulk of the sales, Mrs and Mr are just as interested in jewellery, cosmetics and home décor—and when it comes to clothes, their junior or teen daughters and sons don’t want to be left behind.

    It really is a whole new ecosystem – of hip and homegrown fashion and lifestyle brands, and their customers who are looking to keep themselves up-to-date with the latest trends. And in this ecosystem, the fashion influencers are key facilitators, playing an important role by sharing styling ideas and tips—to bring out the best in you, to make you look good.

    Thankfully, gone are the days when fashion in India was a preserve of the elite and the wealthy, and that is surely for the better. Because its increasing inclusivity has exposed the majority of Indians to lifestyle choices they never had. It’s of little surprise, then, that homegrown brands are making a beeline for Tier 2 and Tier 3 cities, for it is here that cash registers are ringing at their loudest. When it comes to fashion, there’s no more happening place in the country than the small-town India of big dreams.

  • Why Artificial Intelligence May Need Regulation?

    The article is contributed by Biswajit Das, Founder – Brandintelle Services

    Businesses & governments cannot do without AI/ML. Yet if we take it too seriously we may be misled, sometimes with very serious effects. But the reality is that in future, both governments & corporations may have to appoint AI/ML ombudsmen to check & control AI/ML algorithms.

    We have all faced occasional inquiries from our respective Direct & Indirect Tax Departments pertaining to a past period – which suggest that we have evaded taxes. The notice further asks us to prove that we are not evaders by furnishing documents that we had already furnished years ago. These are the results of AI/ML algorithms which are run by Tax Departments on the vast amounts of data that they have aggregated. In most cases, they serve as irritants, forcing citizens to submit the same documents multiple times at their own time & cost.

    Apart from the stress that this generates on semi-literate or otherwise challenged taxpayers, there is the odd case where the allegation by the algorithm can be of a more serious nature – without any justification. Repercussions of such AI/ML “activism” can be far more serious in-patients medical records as the following case shows.

    In 2021, Wired magazine reported a case of a patient who was suffering from a chronic condition which caused her great pain. Although the situation was not critical, the medicines were clearly not working. And surgery was very risky. To alleviate her pain, her physician naturally regularly prescribed opiates as painkillers. for multiple years.

    After many years, her physician recommended a hospital visit – for a second opinion as well as a possible alternate treatment. The patient visited & was asked to register as an in-patient for some examinations. She was accommodated & tests were conducted. Meanwhile, she ran out of her opiate painkillers & asked for a fresh prescription. This was a normal request as far as the patient was concerned – but it resulted in a deadlock situation. The hospital did not prescribe the medicine & nor did it give any reason. As soon as the tests were completed, they requested her to leave the hospital as they could not treat her any longer. Upset & perplexed, the patient went home & asked for an appointment with her regular physician. But she was in for a rude shock! Her physician refused to treat her. After much pleading, she was able to extract the reason – her identity was “blacklisted” as a substance abuser and on the basis of this, the medical profession was practically asked to boycott her. It took her many months to reverse the situation.

    What had happened behind the scenes just before this period is interesting. The hospital had signed up to outsource its Hospital Management System along with Electronic Medical Records to a third party along with a group of regional hospitals & regional physicians. The third party managed to aggregate patient medical records from all the hospitals, & physicians into a data lake. And as is the custom today, built some “intelligence” into its Hospital Management System with AI/ML. The algorithm that was published had an inbuilt logic that apparently categorised all prescription opiate users as “substance abusers” if they used opiates for more than a certain (undisclosed) period! The Hospital Management software automatically “blacklisted” such patients & barred them from any medical treatment!

    Current & future generations may rely on AI/ML as the ultimate decision-making tool. But in reality, AI/ML simply points to signs, trends & predictions all based on applied statistics (from the eighties & earlier!) which are applied to available historical data. This was not possible till the price-availability of computing & storage power crossed a threshold level – which happened in the last 5 years.

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    But here’s the thing: both data & algorithms are prepared by human beings. Therefore both are imperfect. And to make it worse, both data & algorithms are ‘opaque’ to end-users, making some victims & others perpetrators!

    Yet we tend to treat the predictions & pointers as though they were the Gospel truth!

    While these nudges & prediction techniques work in general, it can be fatally wrong at times. As the adoption of AI/ML proliferates, there will be a need to appoint regulators & ombudsmen who will have the right to examine & override decisions taken based on AI/ML algorithms.

  • Insights Into Investment Journey of an Angel Investor

    StartupTalky interviewed Kunal Chowdhry, Global Angel Investor to know about his investment mantras, investment methodology, and how he judges founders and startups to make an investment decision. Get insights into his journey of Investment in Startups.

    Tell us about your background and how you got to where you are today. What keeps you motivated at whatever you do?

    I was born in India and spent the formative years of my life in Singapore. I graduated from the University of Cambridge and returned to Singapore after completing my MBA at Harvard University. I have worked in both consulting and the financial services industries and now run Apollo Singapore Investments, a multi-asset-oriented family office. Apollo invests in a range of different asset classes including startups in India and South-East Asia, particularly SaaS companies in the areas of HR Technology and Blockchain.

    I come from an entrepreneurial family, with my father being one of the founders of the HCL group so I have lived and breathed the ups and downs of an entrepreneurial journey since I was young with exposure to new technologies as they were being developed.

    I am married with three kids – a girl and two boys. I love keeping abreast of new trends and enjoy interacting with young people because they generally have their pulse on the ground and are able to offer a fresh perspective. Keeping this in mind, I believe in a mentorship-based model of investment, whereby I make mentoring a key component of my investment methodology. I also mentor University kids from the perspective of both career and life advice and I have to say that I find them very inspiring. The desire to constantly learn and refresh myself intellectually is what truly motivates me. For example, I spent the first year of the pandemic educating myself about crypto, an area I knew nothing about previously. I am inspired by a number of entrepreneurs who started companies in areas of business they knew nothing about but were able to learn on the job and ended up creating products and services that changed the world. You don’t have to look beyond Elon Musk as an example of such a visionary.

    I am passionate about travelling and collecting art. My wife and I have travelled to almost 45 countries and we usually pick up art pieces/souvenirs which are representative of the country. One of my favourite pieces is a small statue made of lapis lazuli, which is emblematic of the large statues on Easter Island, Chile. I also love tennis and you can usually find me at a Grand Slam tournament with my daughter as she is also a fan of the sport. Thanks to my kids, I am also a big fan of K-pop and have seen BTS, EXO and Blackpink in concert!

    How did you start your professional journey and what do you do now?

    I started my career as a consultant with Accenture in London and even spent a year in Spain which has been one of the highlights of my life thus far! I love Madrid and even learned Spanish during my time there as my entire team was Spanish and I had no choice!! After graduating from Harvard, I moved to Singapore to work directly for the CEO of DBS Bank on special projects in Singapore and around South-East Asia.

    I now run my family office from Singapore. As a full-time investor, I am responsible for obtaining good returns from all our investments across a range of asset classes and geographies. This allows me to take a macro view. It feels great doing what I do because I simply love to join the dots between macro events, politics and their impact on investing.

    Share any story on a tough day at work and how you pushed through.

    A tough day for me would be waking up to see that my portfolio returns have dropped significantly due to a major market event. I am currently living through this as we speak, as the combination of war in Ukraine, high inflation globally and monetary tightening by central banks globally has made things really tenuous from the point of view of an investor.

    The one and the only thing to do in such a situation is to stay calm. It’s important as an investor to plan for contingencies but you can’t always plan for ‘black swan’ events such as Covid. While it’s important to stick to a plan, it is also imperative to be able to pivot should the key assumptions underlying your strategy turns out to be invalid in a new market scenario.

    If one day I wake up and be you, what are the things that I will do?

    If you were to one day wake up and be me, you might have a bit of a shock as I am usually woken up by 3 large Labradors every morning who seem to know when my alarm is just about to go off! I generally wake up at 7 am to see my kids off the school. I spend the next several hours reviewing global news and responding to emails and reviewing business pitches and investor updates. I work out at least 3-4 times a week before lunch and generally schedule meetings post-lunch until early evening. I tend not to work between 7-9 PM as I eat dinner with my family and enjoy putting my kids down to bed. Post-dinner, I spend a couple of hours on calls with Europe/US before unwinding by watching Netflix before bed!

    How and when did you start your Investing Journey?

    I am passionate about startups, given my entrepreneurial upbringing and always knew that I would be part of the startup ecosystem. I have worked as an intern in start-ups while I was an undergrad in the UK and also during my MBA in the US but I always felt that my forte lay in investing. I have been an angel investor since my late 20s so almost 15 years now! When the Indian Angel network was first founded, I had the opportunity to join and it ended up becoming my first exposure to the world of startup investing. Since then, I have invested in close to 50 start-ups in India and South-East Asia. I am always on the lookout for new business opportunities and most recently invested in a coffee cart business in London.

    What kind of startup do you invest in? Are you a sector or geographic agnostic? What is your typical investment horizon, return expectation, and timeline?

    I am always on the lookout for that one idea than fulfils the need of any big community as a whole. An idea that can better the lives of many because of its practicality or its use. I primarily focus on HR tech and blockchain start-ups. However, that said, I also invest in other industries such as FinTech, Consumer retail, Internet, and deep-tech analytics. My typical investment horizon would be 5-7 years. My return expectation is to always aim for 3-4 times my initial investment but that’s easier said than done as an early-stage seed investor!

    What is your investment mantra? Please share the metrics you track and why those are key according to you. What do you look for in a founder?

    My investment mantra is simple – know the founders’ purpose and understand their motivations. Also, it matters to me whether the business philosophy can be easily explained to any layperson. As such, I don’t tend to invest in overly complicated businesses such as biotech as I don’t have a background in this industry. I would, however, not be opposed to investing in a biotech fund, run by experts who understand the space well.

    I have five metrics that I usually go by:

    • customer growth
    • top-line revenue
    • core operating expenses/cash burn
    • runway
    • alignment with the founders’ strategic vision.

    What and how do you judge the Founding team before writing a cheque? What are the key challenges you face as an investor before you sign the cheque?

    I love founders who are confident, focused, clear, strategic, and yet versatile enough to turn things around or pivot when their ideas are not working. Not just the founders, but the founding team is also very important. I look at the entire team to examine the competencies of senior leadership. As such, I always insist on meeting not just the founder but also the entire team before making any investment decision.

    What are a few signs which make you trust a founder and find him/her Competent? What are the signs? How much does a degree from Tier I college matter?

    Education is not as important as vision. Education definitely opens the door, but at the end of the day, it’s the founder’ innate strengths and vision which carry the day.

    I love founders who put their own money into their start-ups, no matter how small the amount is. This shows that the founders believe in themselves, which is a key criterion for success in my book!

    What is a warning sign for you when investing in a startup?

    Some red flags would be inflated expectations of performance without evidence to back it up. For example, a financial projection of $100M in revenue by Year 3 when the company is making $100,000 in Y1! And yes, I have seen many pitches with these numbers!

    Important Tips you know before Investing in Startups
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    Apart from Investment, how do you help startups?

    I believe in a mentorship-based model of investment, where I meet with the founding team on a monthly basis to review key metrics and discuss strategic decisions. I have often been asked to help vet potential candidates for senior leadership positions in some of my portfolio companies. Also, I have developed a strong network over my two decades of professional experience so I am able to make connections and warm introductions to other investors, potential customers or even potential partners in other markets.

    Please share a couple of learnings which make your professional life easy and productive.

    Learning from experience, I find things are easier if we just go directly to the top and not waste time with middle management. For example, earlier in my career, I would try and connect to someone at my level in a company so as to “not go over anyone’s head”. However, I have since found out that decisions are rarely taken by anyone in middle management and sometimes the message just gets lost in translation.

    This is especially relevant in the Asian context, where words from senior management carry more weight and gain more attention. If you can get a message sent down by the CEO, you’d be amazed how quickly action is taken!

    Another life hack which I learned a long time ago is to just ask because the worst that can happen is that you will be told “no”. But if you never ask, the answer will always be “no”. I learned this as a teenager whenever I would ask the check-in manager at the airport for an upgrade from economy to business class. Most of the time it wouldn’t work, but I did end up having a success ratio of almost 20% which is pretty good, especially as one of them was on a 17-hour flight from Santiago to London! This is equally valid in the business world. e.g. asking for more time to pay or asking for an additional discount.

    When do you think it is the right time to raise investment for a startup?

    In my experience, the fund-raising runway takes about 6 to 9 months. The best time to raise funds is when you have at least one year’s of runway left. In my opinion, if you leave it too close, you may end up securing financing at too high a cost – in terms of interest, equity or even loss of control of your company.

    How can we support/ enable entrepreneurs in Tier II and Tier III cities?

    We are seeing more and more startups from Tier II/III cities but they need the right platform to showcase their capabilities. We can tap into our collective networks and link them up to investors, customers and markets not just in India, but across the world.

    Some specific actions that can be taken include:

    1. Mentoring the founders thereby enabling them to better their businesses
    2. Organising pitch sessions for the startups to market their ideas to VC and angel investors
    3. Working with Govt bodies and private foundations with a vested interest in entrepreneurship to private grants to startups.

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    What are the things that can help the founder retain maximum equity while negotiating with an investor?

    I would suggest that in the early stages, particularly for seed rounds, founders should take investments in the form of convertible notes, rather than direct equity. This ensures that founders retain control for as long as possible, as usually in the later stages of funding, founders would have to give up a percentage of their equity stake.

    What is one thing you wish Indian founders and VCs understand which will make the Indian startup ecosystem a much better place for startups?

    I have seen inflated valuations in the ecosystem for some time, particularly in the last 5 years. Founders’ valuation expectations have become unrealistic. They are too eager to have a $ 20 million valuation based on 4 pages of a PowerPoint deck but there are insufficient revenue and customer numbers to back the valuation. I am of course referring to brand new startups which sometimes don’t even have an MVP (Minimal Viable Product) yet are asking for a $20 Million valuation!

    One learning that you would like to share with founders who are looking to raise funds?

    Raising funds in an economically volatile market is challenging. Investors are more cautious with where they put their funds and usually impose more stringent terms and conditions, compared to a bull market where financing is more readily available with fewer strings attached. Adverse economic conditions will have an impact on fund-raising initiatives. It not only takes longer but also entails several rounds of negotiations.

    What are a few sectors you think would be hot in the upcoming year?

    Web3 incorporating Metaverse, gaming and blockchain are some interesting sectors not only for the upcoming year but also for the next 3-5 years.

    How do you keep track of what you have to do? What are you currently reading, or what do you recommend?

    I like to stay abreast of current events because they provide crucial information for all my investment decisions. I read not only more traditional publications such as The Wall Street Journal, Financial Times and the Economist but also spend a lot of time on Twitter as it gives me access to information across a range of my areas of interest – from crypto analyst research to movie box office numbers, from macro data on the economy to the latest events in sports. I truly believe that the world of investing is very interconnected with lessons that can be drawn from a range of industries. And sometimes, it’s fascinating to realise that hype doesn’t always result in good business performance. Take a look at Netflix for example – just 8 months ago or so, everyone was talking about the TV show “Squid Game” and how it was proof that Netflix’s high-cost content acquisition strategy was working. But here we are a few months later and the share price is down 70%.

  • How to Get Global Clients for Your Business?

    Regardless of the industry you are serving or the product/services your business is offering, customers are crucial. Small-to mid-size business owners, all are quite excited to go global. Getting global clients is the first step to expanding your business globally. It is one of the milestones any startup founder aims at. Getting few overseas clients can helps you get to a wider audience and the business can grow globally. It gives a check to your business compatibility in global market.

    Here are some opinions shared by some entrepreneurs about how to get global clients for your business.

    Vicky Jain – Founder, uKnowva
    Sharan Goyal – Founder and Director, Crozzo
    Nitin Gupta – Co-Founder and Managing Director at TezMinds, QRCodeChimp
    Shrikant Pandey – Managing Director, Indiamanthan Publications

    Vicky Jain – Founder, uKnowva

    Vicky Jain - Founder, uKnowva
    Vicky Jain – Founder, uKnowva

    To reach out to the global audience, a business must have an online presence so that people are easily able to find and identify the business. Side by side, a strong social media presence can work wonders for a business trying to attract global clients.

    Businesses that wish to target different countries must provide their website in different languages so that people find it easier to search and learn about their products and/or services. Customer service must also be of the highest standards to create a good experience that can lead to repeat customers. Joining a trade association, the local chamber of commerce and networking organizations along with attending meetup events increases the chances of building a good network that in turn, can create new business opportunities.

    Sharan Goyal – Founder and Director, Crozzo

    Sharan Goyal - Founder and Director, Crozzo
    Sharan Goyal – Founder and Director, Crozzo

    We only serve in India since our product is perishable. However, being an e-commerce enthusiast, could tell you that good performance marketing and targeted advertising through social media get you good global exposure.

    Nitin Gupta – Co-Founder and Managing Director at TezMinds, QRCodeChimp

    Nitin Gupta - Co-Founder and Managing Director at TezMinds, QRCodeChimp
    Nitin Gupta – Co-Founder and Managing Director at TezMinds, QRCodeChimp

    If you’re an agency or service provider, getting more global clients is probably one of your key business objectives. More international clients mean higher revenue and improved reputation.

    However, getting global clients isn’t easy. The competition in the agency industry is fierce, with all agencies battling to get international, high-paying clients. How can you stand out from the crowd and get more global consumers?

    Keep reading to increase your chances of landing more foreign clients.

    Why should you focus on international clients?

    Agencies and service providers should always aim at going global. Global clients
    have bigger budgets, so you can charge more and increase your revenue.
    Suppose you’re a software development agency based in India. The software
    development rates in India are $20-45 per hour. Local clients are aware of these
    rates, and thus, they’d not pay more than that. On the other hand, software
    development rates in the USA are $70-150 per hour.

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    Shrikant Pandey – Managing Director, Indiamanthan Publications

    Shrikant Pandey - Managing Director, Indiamanthan Publications
    Shrikant Pandey – Managing Director, Indiamanthan Publications

    Bringing in new clients is a crucial skill for companies to get a steady stream of revenue and growth!

    Creating your website and social media accounts is just the initial step of this process. As a business owner, you need to invest enough time and resources to attract the target audience, build connections with potential clients, and convenience them to take the service while keeping the strategies consistent. Also, you need to come up with smart tactics if you wish to take your business globally.

    Fortunately, there is a whole wide world waiting for you with a target audience interested in what service or product you have to offer. Do not stay within your comfort zone anymore – your city, state, or country borders, be ready to forge new territories and take on the world. To help you navigate through this adventurous journey smoothly, I have listed below 7 actionable methods on how to get global clients for your business.

    1. Define Your Ideal Clients

    It is impossible to serve every industry equally whether you are working on a national level or international level. This is considered a wrong marketing tactic. Many businesses focus on targeting everyone using their resources in all directions which lead the company to fail.

    The right approach is first having a defined niche, then targeting clients based on their needs, industries, or company sizes to establish themselves as an expert. You can define an ideal client by understanding your experience or efficiency. Now, list down the clients you prefer working with and look for their demographic details like income level and industry. This way, you will have a good overview of your ideas for customers. It would help you to captivate the right audience and get more global clients for your business.

    2. Take Advantage of all Social Sites

    Social media is something you cannot miss! Make sure you have a strong presence on all the major platforms including Instagram, Facebook, Twitter, Snapchat, etc., and constantly update your social media accounts with interesting and insightful posts. You need to create you’re based on each side, even if some social sites work better for others. You may be surprised to see which kind of account works best for you.

    3. Capture Leads on Your Website

    Your website’s goal is to attract new clients. It is high time to maximize your site’s potential. No matter how big or small your business is, create an enticing pop-up that offers something valuable to your clients. It could be anything from a PDF guide to an eBook or a quiz that will catch your client’s attention and convince them to provide their contact details.

    Unlike a simple contact form, go for a uniquely designed pop-up with attractive content that can entice visitors and get them interested in a specific piece of content. The process on how to get global clients for your business is quite easy – create a piece of content that your customers find valuable, then create your site pop-up, and you are done. When each new lead comes in, make sure to give them a warm welcome.

    4. Host Virtual Events to Find Potential Clients

    Hosting a virtual event is a creative way to get new clients on a global and national level. With these techniques, you can collect attendees’ contact details, to whom you can send follow-up emails to, and provide an opportunity to work with a business partner.

    There are diverse types of virtual events like webinars, live streaming, online workshops, and trade shows. You can any of them depending on your target audience. Before the event begins, share the event details on all your marketing channels.

    5. Share Your Knowledge with the World

    When you are serving clients globally, your clients hardly get to meet you physically, here your valuable clients trust your knowledge and expertise to get the work done right and work as an authority in your field.

    There are numerous ways, you can follow to establish yourself as an authority, when you share your knowledge with the world, it helps you to build your reputation as an expert in the community.

    Offering a free online course is an effective way to establish your expertise. Another way of sharing your knowledge is to speak at events in your industry. Stay updated on what is happening in your industry and contact even organizers to share the topic you want to speak about.

    6. Consider the Currency Exchange Facility

    If you are looking at how to get global clients for your business, you need to first cater to their basic needs. Consider having a system where they can pay in their currency. When you first reach outside of your nation you do not need to have every single currency on there, being with just one destination.

    You can simplify the payment easy for US and European customers by allowing them to pay in dollars and euros. Here, the online payment system providers can help you through the process.

    7. Go for Ad Campaigns

    Another effective method of getting more global clients is to use paid advertising. With this marketing strategy, you get the opportunity to show ads on a platform by paying for keywords or ad space.

    There are three popular paid advertising channels – social media ads, search engine ads, and content promotion networks.

    By using these channels, you get to target a specific audience with a fixed budget. In some cases, paid ads have been proven to reach the target audience faster than organic approaches.

    Ready to get global clients for your business?

    The boundaries that once impeded our ability to work with global clients no longer exist. Present-day, it has become easier to do business with someone on the other side of the world.

    But there is no single formula tactic that will bring your global clients to your door. It is a combination of different techniques, and each method needs to be followed well.

    The ideas shared above are based on my personal experience and experiments. While growing my business ventures- The CEO Magazine & Startup City Magazine, we went through numerous hurdles especially while growing globally. But these tactics helped me to constantly grow and achieve milestones along the way. Hopefully, these techniques would empower your business growth too! All the best for your future endeavors. Keep growing, Keep shining!!

  • How to Calculate Valuation of Your Startup?

    In the competitive entrepreneurship world today, entrepreneurs are quite excited about adding value to their startups. It is one of the most essential things to do for founders as it helps in further equity and funding decisions. Quantifying the worth of a startup is the most complex task to do. There are several methodologies and approaches to determine the valuation of your startup. The worth of a startup depends on several factors:

    • The business idea of the Startup
    • Stage of the startup
    • Product Prototype
    • Market risks and competition
    • Technical Adaptability
    • Customer traction
    • Investors

    Let’s know about the approaches used by startup founders and entrepreneurs on how to calculate the valuation of your startup.

    Mehul Sharma – Founder & CEO, Signum Hotels & Resorts

    Mehul Sharma - Founder & CEO, Signum Hotels & Resorts
    Mehul Sharma – Founder & CEO, Signum Hotels & Resorts

    Pre-revenue start-up valuation may be a complicated endeavour. There are many factors to take into consideration, from the control group and marketplace traits to the call for the product and the advertising dangers involved. And a hard truth associated is that even after comparing everything, despite the only pre-revenue valuation formula, the first level you may get continues to be simply an ESTIMATE!

    The world of the start-up is a place full of enthusiasts. A start-up is initiated every 3 seconds around the world! Every big company you can think of started from a garage with a computer bought with savings money or some sort of gift. But not all start-ups share the same start.

    Business proprietors will wish for an excessive valuation, while pre-revenue investors might opt for a lower price that guarantees a larger go back on investment (ROI).

    So, how does pre-revenue start-up valuation evaluate with a mature commercial enterprise valuation?

    Unlike early-stage start-ups, a mature publicly-indexed commercial enterprise will have extra information and figures to head on. Regular circulation of sales and monetary statistics make it less difficult to calculate the price of the commercial enterprise. More often than not, early-stage startups are valued somewhere within the middle, which means founders don’t get quite the amount they anticipated, and investors pay higher than what they intended to invest.

    For most start-ups especially pre-revenue, Traction is one of the significant indicators for assessing the worth. The true story of a start-up can be brought into the daylight by taking a look at its effectiveness in the market, the number of users, and its growth rate.

    Estimating the actual worth of an unlisted startup before the seed funding is actually of equal importance to having a business idea while going in.

    There are various ways to estimate the current worth of a business, but only a few are used as a daily pill by entrepreneurs.

    The most basic method to assess the value is by analyzing the previous year’s Balance sheet. Under this method, the total debt and liabilities are subtracted from the aggregate value of assets owned by the business. This method is less complicated, easy to assess, and comes in handy.

    Although, the Balance sheet method does not provide the whole picture of the situation. The problem here is that this methodology considers the start-up in its current state and not how it’ll be in the future. Investors are inquisitive about the latter, and so, as an asset-based valuation doesn’t take that into account, this method has its drawbacks.

    Another method of assessing the valuation of a business is by calculating the EPS (Earnings Per Share). EPS is calculated by subtracting the Preferred dividends from the Net income and further dividing it by the average of outstanding common shares. For an individual investor, EPS shows the exact value of revenues and makes more sense.

    The valuation of a start-up is a complex task and there is no straight jacket solution or method to be put into use each time. Often, the valuation is calculated using a combination of ratios, and ordinal values.

    The angel capitalist Dave Berkus believes investors ought to be ready to envision the corporate breaking of $20M in 5 years. His technique assesses five important aspects of a start-up, namely, Concept, Prototype, Quality Management, Connections, and Launch plan. The Berkus technique is an easy estimation, typically used for IT start-ups. It is a good way to gauge value, however, because the market into account isn’t taken into account, it’s not going to provide the scope that some folks desire.

    Furthermore, a few more methods like EDITBA (Earnings before interest, taxes, depreciation, and amortization), top-line method, and GMV (Gross Merchandise Value) have been proven to provide significance for the estimations.

    EDITBA is another easy-to-use method that provides ordinal values by using the previous financial statements. Varied business segments face varied rates of tax payment based on the industry they fall into.  A business with a higher revenue may have an NPV (Net Present Value) lower than the one with lesser revenues due to the different industries they fall into.

    Another interesting method for assessing the value is the Top Line method, which is a reference to gross figures reported by a company, such as sales or revenue. This method gets the name because these are shown at the top of a company’s income statement and are kept aside for the reporting of revenue and or gross sales.

    GMV method ascertains the gross value of sales in the market. Under this, the gross value of the merchandise is calculated as the Sales price of goods with the number of goods sold. It shall be noticed that GMV is calculated in conjunction with net sales, which takes deductions into account.

    The first-time valuation of a start-up is bound to foresee at least a few mistakes. Hence, while evaluating the value of your start-up two big pitfalls one shall avoid are:

    1. Never assume a valuation is Permanent, i.e., after all, a startup is going to be valued at what investors are willing to speculate in it. Ultimately, it shall be kept in mind that the variables are at play, and perceive that no valuation, high or low, is ever permanent- or maybe even correct with certainty.

    2. A Valuation is never straightforward, i.e., even after getting a pre-revenue start-up valuation you’re happy with, it’s best to debate things in nice detail with potential investors simply to ascertain that everyone is on the same page regarding the way to proceed.

    It is rightly said that only a fool would make peace with the first valuation he gets of his business as there are complexities and human factors involved.

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    Vicky Jain – Founder, uKnowva

    Vicky Jain - Founder, uKnowva
    Vicky Jain – Founder, uKnowva

    Startup valuation is not an exact science. Factors can include the industry, the present market, the team’s credentials, and other forces that might be taken into account. The valuation of a start-up is the measure of how much investors think the company is worth right now. One of the simplest ways to measure the value of a startup is with the scorecard method. By weighing up parameters of success like team experience, competition, the strength of the product, etc.) subjectively, this method enables comparisons between a startup and other “average” startups within the industry and area. If the startup looks to have more than average qualities as per the calculations, then the chances of getting a higher valuation increases and so does the investment opportunity. There is another method known as the discounted cash flow method that approximates how much flow of cash a startup will produce over a long period of the term. By predicting this and calculating the expected return on the rate of investment, assumptions can be made about a start-up’s value.

    Sharan Goyal – Founder and Director, Crozzo

    Sharan Goyal - Founder and Director, Crozzo
    Sharan Goyal – Founder and Director, Crozzo

    Valuation in today’s day and age has taken a very sinister meaning. Valuations are through the roof, with no stopping in sight. I prefer to find a reasonable multiple of EBITDA or revenue (in the case of a cash flow negative company) and compare that to that of an existing business which has raised funds at a particular multiple. For example, a D2C business in the food space with a solid distribution network is often valued at 15-20 times forward revenue. It would be fair to assume that a company with a similar profile can be valued at a similar multiple.

  • How to Budget Your Finances in Startup?

    A budget is the most important step while planning for building a startup. It helps in knowing the breakdown of the capital investment in various aspects of business and deciding the future prospects accordingly. A startup budget not only helps in securing financing but becomes crucial while pitching to investors. So, entrepreneurs should know what cost it takes to run a startup smoothly and plan it well in advance to manage all the expenses in a business.

    Here are opinions shared by Entrepreneurs about how they manage to budget finance in their startup and how one should create a startup budget. Their tips can help you build a realistic budget for your startup so that you don’t run out of cash at any point in your business journey.

    Vicky Jain – Founder, uKnowva

    Vicky Jain - Founder, uKnowva
    Vicky Jain – Founder, uKnowva

    A start-up has to bear numerous expenses that all come from different directions. Whatever money it makes, the focus should always be to save as much as possible and lower the expenses while trying to do more. The idea should be to create a strong financial plan for the future by efficiently managing the cash flow. One needs to closely monitor the debt and savings, evaluate business operations to see where expenses can be cut and conduct financial forecasts to gain financial stability.

    Start-ups during the bootstrapped phase can sit with their team together using co-working spaces. There are plenty of co-working spaces available at affordable rates. Start-ups should also be aware of the support schemes provided by the government in their domain.

    Sharan Goyal – Founder and Director, Crozzo

    Sharan Goyal - Founder and Director, Crozzo
    Sharan Goyal – Founder and Director, Crozzo

    As a bootstrapped startup, it is paramount important to budget our finances. We use cloud-based petty cash software to help us manage everyday expenses, as doing this process without the help of technology gets extremely confusing and leads to a lot of errors. It is critical to managing your cash flows, as a single bad month can put you behind by about six months.

    Neeraj Sharma – Vice Chairman, The Lexicon Group | Director, Pune Times Mirror

    Creating an organizational budget is a difficult task. Alternatively, if your enterprise is new, when it pertains to financing, there are several aspects to consider. To remind you, every single penny counts in a start-up’s budget. To make matters worse, you may be attempting to attain maximum development with minimal cash flow.

    A precise and accurate budget is critical. It helps you to ensure that your organization covers its responsibilities, manages its cash flow, and grows sustainably. Creating and keeping to a company budget helps guarantee that you’re spending money wisely and efficiently.

    Budgets are supposed to be dynamic and straightforward. The finest budgets include projections with wiggle space in case market circumstances change or a profitable opportunity presents itself. A budget for your company will consider three months ago, the previous month, and the month ahead.

    Your income is the amount you intend to earn from the sale of products and services. This is the entire amount of money you intend to earn in a given time period, generally one month. Identify and total all of your revenue streams. If you own a cafeteria, for example, you may include sales from in-person dining, delivery, and curb side pickup. include sales from other revenue streams, such as prepared foods, if you sell them.

    Existing firms can predict revenue by reviewing previous sales information. To produce the best estimate, new firms might look at the competition, demand, and market trends and work on what is called ‘Zero Based Budgeting’.

    Who needs a start-up budget?

    A start-up cost estimate is a straightforward explanation of how you intend to spend your funds and meet anticipated company expenditures. A budget is essential, whether you are a pre-revenue or subsequent software firm.

    A budget is a definitive tool for estimating how much capital you’ll need to make it through the whole few months before your debut. At this point, it will be a reasonable prediction based on market analysis and your best guesses. Jumping in without a blueprint will put you at risk of running out of money too soon or spending it inefficiently.

    Your budget would become an evaluation resource once you’re up and going. You can examine how you’re distributing funds and if your company is investing and generating as you expected. This allows you to identify critical questions and possibilities for cost reductions and company investments early on.

    For instance, if sponsored content is your highest spending category, is each channel delivering high-quality leads? Is it necessary to negotiate longer payment terms to free up cash for sluggish months? Is your spending actually aligned with the key performance indicators (KPIs) of each team?

    Budgets that are well-crafted provide straightforward answers or guide you in the correct direction.

    How to create your start-up budget?

    Until you get further into building up your business finances, you should decide what sort of funds you’ll need to keep your firm running.

    In other words, you must develop a starting strategy.

    Consider your start-up budget to be a monetary blueprint; it outlines where you are, how you want your firm to go, and where to go financially.

    Set your total budget.

    How much money are you prepared to invest to have your company up and running?

    Identify your initial costs. Generate a checklist of all the expenditures you’ll incur in starting your own business, and then classify each of its expenses as indispensable (costs you totally must encounter in order to have your business started), non-essential (costs which will make beginning or operating your business smoother, but aren’t absolutely mandatory), and later (costs you’ll really have to incur eventually in order to develop a good business—but which can probably wait 6 months).

    Estimate your losses

    In practice, new enterprises might take a while to generate revenue—but throughout that time, you must still meet your obligations. Calculate the amount of time required to generate income, calculate your quarterly overhead expenditures, and determine how this will affect your budget.

    Tighten and pad your budget

    Then, when you’ve determined your spending and earnings, as well as how those figures relate to your overall budget, search for places in which you can cut down and thus save money (for example, by getting rid of a few non-essential expenses). Then, if possible, supplement your strategy with some additional dollars so that if you encounter an unanticipated expenditure (which is usual when establishing a business), you have had some wiggle space to operate with.

    Tips for Creating Your Business Start-Up Budget

    Create your budget with your financial software package so that you can use current payments and make changes more easily. If you don’t have an accounting information system, you can utilize a spreadsheet application instead.

    Most lenders want three years of monthly cash flow records as well as three years of monthly and quarterly financial statements (P & Ls).

    Personal taxes are a changeable expense, and you won’t know how much you’ll owe until you compute your net income. Incorporate taxes into a distinct category rather than into fixed or variable expenditures.

    Good budgeting for a better business

    A start-up fund is an early-stage company’s first bulwark. It’s an adaptable strategy plan that allows you to foresee financial shortages and adjust to changes. So, if you put in the effort to create a great budget, you’ll already be ahead of two-thirds of your competitors.

  • How‌ ‌to‌ ‌Prepare‌ ‌for‌ ‌Influencer‌ ‌Marketing‌ ‌in‌ 2022?

    This article is contributed by Mr. Maddie Amrutkar, Founder, Glad U Came. Glad U Came is a leading PR & Influencer Marketing agency in Mumbai.

    If you think it’s too early to plan Influencer Marketing strategies for 2021 then you’re wrong. The industry has grown leaps and bounds in the past few months and Influencer Marketing has played a huge role in it for businesses. With powerful tools like Instagram Reels, Shop, IGTV, Facebook pay and Instagram Live badges, social media has become a rich and engaging alternative tool to encounter the traditional form of media; to target consumers in a new manner.

    Influencer Marketing is the backbone of this and has helped brands map out their strategies and get ahead of their curve. Since companies plan marketing campaigns months in advance, now is the right time to prepare a strategic and advanced Influencer Marketing approach for 2021!

    In the past, brands would approach an influencer and pay them to create content promoting their products – new launches or talk about the service. The fees would vary as per the following range and engagement rate of the influencer. The influencer would then post the content and share it with their social media following – usually on Instagram, Facebook, Twitter, Snapchat, etc. The best part about Influencer marketing is that it can work for businesses of all shapes and sizes, whether you’re a startup looking to grow your awareness and following, or a big brand wanting to launch a new range or drive sales of a specific product. Isn’t that amazing? Considering the above, here’s how one can prepare for Influencer Marketing in 2022.

    Know Your Ultimate Goal
    Create a Breakthrough Influencer Marketing Plan
    Choose the Right Influencers
    Select the Right Social Media Platform
    Use the Art of Storytelling
    Influencer/ Celebrity Gifting Is the New Thing
    Engagement and Analytics

    Know Your Ultimate Goal

    Well, how will you aim if you have no goal to achieve? Your goal will be the driving force of your Influencer Marketing strategy. You need to know the 5 Whys behind your actions before beginning. There are certain crucial things one needs to keep in mind before setting your goals:

    • Be specific
    • Set attainable goals
    • Make sure that your goals are measurable

    Create a Breakthrough Influencer Marketing Plan

    The success of an Influencer Marketing plan relies on how well strategies are planned and executed.  The strategies can rapidly build brand awareness by generating premium content for the customers it’s designed to engage in. Executing a complete influencer marketing strategy that boosts your brand exposure and connects with your target audience sets the base of a successful plan.

    Choose the Right Influencers

    When there are too many creative influencers out there, it becomes difficult to choose the best one for your campaign. There could be various ways to choose influencers on the basis of their genre, engagement, content and lots more. The ideal way is to see which influencer is the best in their own niche and whether or not that fits well with your brand.

    Select the Right Social Media Platform

    Social Media Platforms
    Social Media Platforms

    Being on every social media platform is not necessary. What matters is to create an impact on the ones you are present. Your presence is what counts rather than being on all social media platforms. Putting out substandard content will only make things worse for you. Instead, research and plan your social media presence that aligns with your goals and appeals to your target audience. Focus on the platforms that are preferred by your targeted demographic.

    Use the Art of Storytelling

    It is the story that sells, not the product! Consumers are always driven by good and impactful stories. It is the emotional attachment that the brand builds with its audience that counts. They inspire ideas and create attachments.

    Influencer/ Celebrity Gifting Is the New Thing

    Influencer/ celebrity gifting can be one of the most effective ways to gain exposure for a client, particularly when they need to make an immediate impact. Although it’s not an easy service that can be accomplished effortlessly. Researching out to the right bloggers can take hours, and often your top choices don’t respond right away. You can go back and forth a dozen times just to finalize delivery details, and follow up for weeks after to ensure the post is published. Despite this, the good part is that influencer/ celebrity gifting is a super cool and effective way to reach out to your audience through top-notch celebrities and influencers.

    Engagement and Analytics

    Analytics help you understand your audience and learn what generates more traffic. Without them, you can’t make accurate sales forecasts and perfect your products. You can effectively use social media data to drive performance and analytics must be focused on. Review the analytics, and give attention to the stats like follower growth, page views, number of posts, likes, shares, impressions, clicks, etc.