Venturing Into Business

INTRODUCTION

WHAT IS A STARTUP?

A startup company or startup or start-up is an entrepreneurial venture or a new business in the form of a company, a partnership or temporary organization designed to search for a repeatable and scalable business model.

These companies, generally newly created, are innovation in a process of development, validation and research for target market.

DO YOU HAVE WHAT IT TAKES TO BE AN ENTREPRENEUR?

Are you Santa or an elf? What's your relationship with money? Are you comfortable flying blind? Are you ready to commit? We're you born for business?

ANALYSING THE IDEA

Analyzing “THE IDEA”

• BUILDING A STARTUP IS LIKE FALLING IN LOVE, EITHER YOU ARE RIGHT OR YOU ARE WRONG

• IDEA IS 5%, EXECUTION IS 95%• YOU NEED TO BE CONFIDENT THAN

ANYBODY ELSE ABOUT YOUR IDEA• CONSIDER THE FUNDS REQUIRED

NEED• There needs to be

a want for what you are thinking, if not, you are on a wrong track

• Prioritize your efforts

• Execute a market survey

Where the Demand isAccessibility ofthe product tothe masses Checking outthe statistics of related popularstartups

DEMAND

CONSIDERATIONSPROS

You are your own boss You can imagine and

dream what you think Execute the plan as

envisioned It can turn out to be a good

business venture

CONS 90% startups fail, so there are

chances of failing, consider that aspect

While analyzing you need to think of the financial loss and time that you could end up losing

You are new at it, so failure can be depressing

Identifying the Feasibility

ASK QUESTIONS TO YOURSELF

a) Will my product survive the competition?b) Will the crowd accept it?c) Have I selected the correct target audience?d) Have I selected the right team?

FEW POINTS WHILE ANALYZING

FINANCING THE CORE TEAM BACKUP OPTION BE OPEN TO OPTIONS CAN BE RISKY, CAN

BACKFIRE

FINAL ANALYSIS

CONSIDERING THE IDEA PLANNING ACCORDINGLY EXECUTING THE PLANS ACTING TOWARDS WHAT

YOU HAD THOUGHT

ANALYSING THE MARKET

The main goal of Market Analysis is to determine the attractiveness of the market and to understand its evolving opportunities and threats as they relate to strengths and weakness of any firm.

The market analysis is one of the most important parts of any startup strategy. Do it right, and you will have a clear idea of the path down which you are headed. A good market analysis will enable you to lure investors, sidestep pitfalls, and most importantly, attract customers.

What is market Analysis?

MARKET ANALYSIS

Through all of these analyses the strengths, weaknesses, opportunities and threats (SWOT) of a company can be identified. Finally, with the help of a SWOT Analysis, adequate business strategies of a company will be defined.

A thorough understanding of:

Domestic and global market trends. Models to predict purchase and consumption Communication methods to reach target markets most effectively

SITUATION ANALYSIS

Process Of Analyzing SWOT Analysis

SWOT: Core Strengths? Current Weaknesses? What Opportunities exist? What Threats do we face?

The process of analyzing: Consumers, characteristics &

trends. Resources of the Company . Current and potential

Competitors. Current and potential

Collaborators The Context or environmental

factors.

Process of Analysis

Company Competitors

What are the Strengths? What are the Weaknesses? Resources: Finances,

Employees, Production, Development and Design, Research, Facilities, Marketing/Advertising

Which Companies are operating on similar genre?

Who are they? What are their

advantages/disadvantages? Who are the Key players in the

market?

Consumers Collaborators

Who are our current and potential customers?

What are the needs of customer?

Are they satisfied with the available products in the market?

How should we make them buy our products?

How will each partner benefit from a strategic alliance?

What are risks of collaboration with another company?

Whose strengths will best complement ours?

A firm needs to:• Analyze the market with the help of 5C’s(Context,

Company, Collaborators, Competitors, Customers)• Do proper SWOT Analysis(Strength, Weakness,

Opportunities, Threats)• Develop a strategic plan beginning with Segmentation,

Targeting and positioning.

SUMMARY:

VALUING THE BUSINESS

Getting your finances in shape

• Setting up proper accounting, book keeping and tax records up front.

• Hiring an accountant to get finances in shape.

How to get your finances in shape?

Fund your startup yourself. These days, the costs to start a business are at an all-time low, and over

90 percent of startups are self funded (also called bootstrapping). It may take a bit longer to save some money before you start and grow organically, but the advantage is that you don’t have to give up any equity or control. Your business is yours alone.

You can see that all of these options require work and commitment on your part, so there is no magic or free money. Every funding decision is a complex tradeoff between near-term and longer-term costs and paybacks, as well as overall ownership and control.

With the many options available, there is no excuse for not living your dream, rather than dreaming about living.

Negotiate an advance from a strategic partner or customer.

Find a major customer, or a complimentary business, who sees such

value in your idea that they are willing to give you an advance on royalty payments to complete your development. Variations on this theme include early licensing or white-labeling agreements.

Gathering needed resources

Planning for the future when scaling the business.

Creating a list of essentials needed and its approximate cost and deduction of expenses with the help of the accountants.

After business is running, keeping track of regular tasks that keep it running, like payroll, etc to ensure smooth running of business on housekeeping task front.

ADOPTING A CONSTITUTIONA Legal Standpoint

Company Registration

Proprietorship

Partnership LLP Private

LimitedPublic

Limited

PROPREITORSHIP

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debts, loans, loss etc.

ADVANTAGES Ease of Formation Tax Benefits Employment Decision making

DISADVANTAGES: Liability Taxes Lack of Continuity Difficulty in raising Capital

PARTNERSHIP

A Partnership is an arrangement where parties, known as Partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combination organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach.

ADVANTAGES Larger Resources Flexibility in Operation Better Management Sharing risks

DISADVANTAGES: Instability Unlimited Liability Lack of Harmony

LIMITED LIABILITY PARTNERSHIP(LLP) A limited liability partnership (LLP) is a partnership

in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from the traditional unlimited partnership under the Partnership Act 1890, in which each partner has joint and several liability.

ADVANTAGES Liability protection Tax advantages Flexibility

DISADVANTAGES: Additional Taxes Less Creditability

PRIVATE LIMITED( PVT LTD) A private company limited by shares, usually called

a private limited company (Ltd.)(though this can theoretically also refer to a private company limited by guarantee). A private limited company's disclosure requirements are lighter, but for this reason its shares may not be offered to the general public (and therefore cannot be traded on a public stock exchange). This is the major distinguishing feature between a private limited company and a public limited company. Most companies, particularly small companies, are private.

ADVANTAGES Limited Liability Continuity of Existence Scope of Expansion More Capital

DISADVANTAGES Growth is limited Transfer of Shares Risk of loss

PUBLIC LIMITED COMPANY(PLC)

A public limited company( legally abbreviated PLC) is a type of pubic company( Publicly held company). It is a limited (Liability) company whose shares my be freely sold and traded to the public (although a ‘PLC’ may also be privately held, often by another ‘PLC’). A PLC can be either an unlisted or listed company on the Stock Exchanges.

ADVANTAGES: No limit of Shareholders Freely transferable

shares Separate legal Entity

DISADVANTAGES Legal formalities Loss of control by

owners Management problems Strict Controls and

regulations

THE BUSINESS PLAN

WHAT IS A BUSINESS PLAN ? A written document describing the nature of the

business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement .

EXECUTIVE SUMMARY The executive summary is the most important section of a

business plan. This section briefly tells your reader where your company is,

where you want to take it, and why your business idea will be successful.

If you are seeking financing, the executive summary is also your first opportunity to grab a potential investor’s interest.

The executive summary should highlight the strengths of your overall plan and therefore be the last section you write. However, it usually appears first in your business plan document.

WHAT TO INCLUDE: The mission statement Your experience, background and reasoning Company Information Growth highlights Products/Services Financial Information Summary Of future plans

HOW TO NAME THE COMPANY:

What's in a name? A lot, when it comes to small-business success. The right

name can make your company the talk of the town. The wrong one can doom it to obscurity and failure. Ideally, your name should convey the expertise, value and uniqueness of the product or service you have developed.

POINTERS: Choose a name that appeals not only to you but also to

the kind of customers you are trying to attract. Choose a comforting or familiar name that conjures up

pleasant memories so customers respond to your business on an emotional level.

Don't pick a name that is long or confusing. Get Creative Test your name Final analysis

DESIGNING YOUR LOGO:

Your logo is a visual representation of everything your company stands for.

The logo enhances potential customers and partners' crucial first impression of your business.

A good logo can build loyalty between your business and your customers, establish a brand identity, and provide the professional look of an established enterprise.

PRIMARY FUNCTION OF LOGO:

Boost recognition Create memorability Create trust Enhance admiration

TYPES OF LOGOS:

Illustrative logos

Font based logos

Abstract graphic symbols

MARKETING AND SALES STRATEGY:

A sales strategy sets out in detail how you will get or service in front of people who need it.

It is not the same as marketing strategy. Marketing strategy is about getting your name out there

and tempting new customers or rekindling interest in your business.

Sales strategy is more about how you close the deal.

STRATEGIES TO CONSIDER:

Think big and audit your time Be different and stand out from the competition Build relationships with your customers Collect e-mail addresses Hire top sales people Put a shopping cart on your website Pay-per-click advertising Use customer service commandments to create good

habits

CASE STUDY:

FINANCIAL PROJECTIONS:

Definition: Estimates of the future financial performance of a business.

Strategic planning allows you to "come up for air" from the daily problems of running the company, take stock of where your company is, and establish a clear course to follow.

By constantly reevaluating your company's strengths, markets and competition, you're better able to recognize problems and opportunities.

REASONS TO PROJECT YOUR FINANCIALS:

First, financial plan translates your company's goals into specific targets.

Second, the plan provides you with a vital feedback and control tool.

Third, the plan can anticipate problems.

FINDING THE RIGHT LOCATIONS

If you are in the process of starting a business and getting a good location then below are 10 factors you must consider before choosing a business location.

1. Availability of raw materials:If you intend running a manufacturing or production business, then the nearness or availability of raw materials is a factor you must consider when choosing your business location.If your business is not sited close to these raw materials, then sourcing and transportation will reduce your profit margin.

2. Proximity to market:The next important factor to consider is the nearness of your business to its customers. Are your customers resellers or end users? Answering this question will help you determine the best area to locate your business. Remember that for your business to succeed, you must make it easy for customers to find your product.

3. Availability of basic infrastructure: Amenities and infrastructure such as water supply, power supply, good road network and security are things to consider when locating your business.

4.Economic policy:Some economy favor capitalists and others are driven by socialism; where the government controls all businesses. Other sub-factors to consider are government’s policy, fiscal and monetary policy, exchange rates, taxes, levies and duties.

5. Demographics:Demographics as a factor can have a big influence on your choice of business location. The type of product or service your business offers and the status of the customers will play a vital in your choice of small business location. I will share an example:Suppose you are into the business of selling stationeries. That means your demographics should be made up of students, so your best bet of location should be within school vicinity.

6. Psychographics: For example; if you site your business in a region

where tribalism thrives, then you are doomed if you are not a member of the tribe.

7. Industrial Clusters / areas: These areas are sometimes given special attention such as good road network, constant power supply, etc. In some certain regions, heavy duty manufacturers are forced by the government to site their companies in these industrial areas.

8. Export processing zones:Locating your business in such regions means a reduction in transportation cost, faster inspection and clearance of your products by custom officials and so on

9. Free trade zones:International free trade zones and trade fair centers are also good places to site your business because it is accessible and normally receives wide publicity.

10. Distributive channel:If your business don’t deal directly with end users or final consumers, then it’s wise to put your distributive channel into consideration when choosing a location for your small business.The more you make it easier for your distributors to access your products, the better for your business.

REGISTERING THE BRAND NAME

What is Registration of a Brand ?

Trademark registration of a brand name means nothing but brand name registration. It basically means, “this brand name is ours! And if you use it to sell your products, we can sue you!”

Types of trademarks available Names, including your own name or surname. An invented word or any arbitrary dictionary word or words. Letters or numerals or any combination. Symbols Monograms Combination of colours or even a single colour in

combination with a word or device. Shape of goods or their packaging. Marks constituting a 3-dimensional sign. Sound marks when represented in conventional notation or

described in words by being graphically represented.

Step 1: Search for a brand name

Come up with a whacky and quirky brand name, because all the generic ones are any which way taken. Before zeroing in on one name, you might want to do a quick search to make sure that no one else is already using the name. And your best bet would be to use invented or coined words, in a combination with generic words.

Step 2: Making the trademark application

Now that your name is finalized upon, fill in the trademark application i.e. Form- TM 1. The application costs INR 3500 and is a one time fee.

Along with the application, you will need to submit a couple of supporting documents:

A Business registration concern: Depending on what type of a registered business you have, say sole proprietorship, etc. you will need to submit an identity proof of the directors of the company and an address proof.

An image of your brand logo in a standard size of 9 x 5 cms If applicable, proof of claim of the proposed mark being used

before in another country.

Step 3: Filling the brand name registration application

There are 2 ways to file the registration – manual filing or e-filling. In case of manual filing, you will need to personally walk down and

submit the application for registration to any one of the offices of the Registrar of Trade Marks located in Mumbai, Delhi, Kolkata, Chennai and Ahmedabad. After which you receive the acknowledgement of the application and the receipt, usually within 15-20 days of the filing.

But in e-filing system, the acknowledgement of the application is issued immediately.

And after you receive the acknowledgement, you can start using the (TM) symbol next to the brand name!

Step 4: Examining the brand name registration application

After receiving the application, the Registrar checks whether the brand name complies with the law and does not conflict or dispute with other existing registered or pending brands.

Step 5: Publication in the Indian Trade Mark Journals

After examination, the logo or brand name is published in the Indian Trade Mark Journal. If no one raises an opposition within 3 months i.e. 90 days or in some cases 120 days, from the date of publication, the brand name proceeds to acceptance.

Step 6: Issuance of the trademark registration certificate

If no one raises any opposition, within the stipulated 90 days period, the Registrar accepts the trademark application, and issues a Certificate of Registration under the seal of Trademark Registry.

You may now be allowed to use the registered trademark symbol (®) next to your brand name, once the certificate has been issued.

Costs for trademark transactions

To file a new application there are set forms depending on the nature of your application. The forms are numbered as TM-1, TM-2, TM-3, TM-8, TM-51 etc: Rs 2,500

To file a notice of opposition to oppose an application published in the Trade Marks Journal a (FormTM-5): Rs 2,500

For Renewal of a registered trademark (Form TM-12): 5,000 Surcharge for late renewal (Form -10): Rs 3,000 Restoration of removed mark (Form TM-13): Rs 5,000 Application for rectification of a registered trademark (Form

TM-26): Rs 3,000

The whole process of registration of a brand name usually takes anything between 15-18 months. The trademark once accepted, is valid for a period of 10 years from the date of issuance of the Certificate of Registration. After the end of 10 years, the trademark will need to be renewed.

A lawyer will be able to help you wade through all this legal jargon. Although the process of registering a trademark is lengthy and a little

heavy on the pocket, it is definitely worth the investment of legally protecting your brand.

However, if you are just starting out, investing in a trademark may not be absolutely essential. What matters most is creating awesome products and putting in all the time and effort into building your brand, from ground up. But, there still is another cheaper alternative to lend you lawful protection against being copied – an unregistered trademark.

BUSINESS MARKETING

BASIC CONCEPT

Business marketing is a marketing practice of individuals or organizations (including commercial businesses, governments and institutions). It allows them to sell products or services to other companies or organizations that resell them, use them in their products or services or use them to support their works.

Business marketing is also known as industrial marketing or business-to-business (B2B) marketing. Despite sharing dynamics of organizational marketing with marketing to governments , business-to-government marketing is different.

TYPES OF ONLINE MARKETING

• EMAIL MARKETING • SOCIAL MEDIA MARKETING • BLOGGING • PAY PER CLICK (PPC) MARKETING • DIGITAL MARKETING

EMAIL-MARKETING Email marketing is directly marketing a commercial message to a

group of people using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either sold lists or a current customer database. Broadly, the term is usually used to refer to sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and adding advertisements to email messages sent by other companies to their customers

SOCIAL MEDIA MARKETING Social media marketing is the process of gaining website traffic

or attention through social media sites.[1]

Social media marketing programs usually centre on efforts to create content that attracts attention and encourages readers to share it across their social networks. The resulting electronic word of mouth (eWoM) refers to any statement consumers share via the Internet (e.g., web sites, social networks, instant messages, news feeds) about an event, product, service, brand or company.[2] When the underlying message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself,[3] this form of marketing results in earned media rather than paid media.[4]

Social networking websites allow individuals and businesses to interact with one another and build relationships and communities online. When companies join these social channels, consumers can interact with them directly. That interaction can be more personal to users than traditional methods of outbound marketing & advertising.[5]

Social networking sites also include a vast amount of information about what products and services prospective clients might be interested in. Through the use of new Semantic Analysis technologies, marketers can detect buying signals, such as content shared by people and questions posted online. Understanding of buying signals can help sales people target relevant prospects and marketers run micro-targeted campaigns.

ADVANTAGES

An advantage of marketing is the promotion of your business; getting the recognition and attention of your target audience across a wide ranging or specific market.

Going hand-in-hand with this is the enhanced brand recognition. Over time potential customers and members of the public will begin to associate your logo and your brand with your business.

Cost-effective approach – A properly planned and effectively targeted marketing campaign can help your business reach target customers at a much lower cost compared to traditional marketing methods.

MAKE IT BIG

How do you actually make it BIG?

“KEEP CHALLENGING YOURSELF AND YOUR LIMITS”

• Set Future Goals• Work hard, work towards it.• Achieve it and don’t take it for granted• And most importantly, don’t stop just there…

A few who’ve gone up there and made it LARGE

They called him a ‘Chaiwala’ He didn’t give up, worked hard, took all the hate.. And today, his post and work speaks for itself.

Narendra Modi

STEVE JOBS

ALWAYS REMEMBER…

AND…

BECAUSE..