209-Start-up-New-Venture-Management_PPT-.pptx

This document give description of various steps and characteristis to become an enterpreneur. The development of new technologies worldwide has given rise to
exponentially and technically growing companies known as startup. Startup
refers to launch a new business model. Its main objective is to open up a
new market for its products or services or both. There are two crucial
elements for establishing and success of a startup i.e. Planning and Research.
Startups need a strategic business plan that should be based on scientific and
thoughtful projections. It ensures the business model must be feasible,
adequate supplies and customer base, competitive prices, continuous flow of
funding and must provide an adequate return on investment. Entrepreneurs
come with innovative ideas and transforms them into startup. A startup
helps to prosper the economic growth of a nation by generating employment
and additions to GDP. The entrepreneurial path is somehow tedious and
very few firms prosper into larger corporations. Few entrepreneurs can go
against the tide and achieve success. The survival rate of startups is very
low. About 90% of startups fail in the first 5 years in the USA (Forbes
Magazine, 2015) and the rate of startup in India is also the same (Business
Line, 2017).
It requires nerves of steel, grim determination and precision planning.
Despite having all qualities of strong determination and precision planning,
20% of new businesses fail within the first year and 50% failed within four
years and 90% within five years. The impact of COVID has also made the
startups vulnerable. The value of investments in India have fallen to $0.33
billion in March 2020 from $1.73 billion in March 2019, which indicates a
fall of nearly 81.1% (Business Line, 2020). There has been a total fall of
50% in the number of companies funded - presently, 69 firms in March
2020, in contrast to 136 firms in March, 2019 (ibid).
The success of startup depends upon the excess of revenues over the costs,
but a startup failed to generate the revenues or its costs are increasing and it
leads to failure of startup. In a startup failure, micro and macro level factors
can be responsible.
OBJECTIVES OF THE STUDY
1. To identify and analyse the factors why startups donot succeed
2. To elaborate the reasons of failed startups in India in the last 3. To suggest solutions and recommendations for minimizing the risk
of failure.
MATERIAL AND METHODS
The data were collected from academic and scholarly work and 10 cases of
startups were chosen that includes Food Delivery, Grocery, Edutech and
Fintech startups. The research identified start-ups failure by using MICE
methodology. The study is based on secondary data which was collected
through websites, journals and newspapers.
THE MICE MODEL
The MICE model elaborates the four categories of startups failure:
1. M: Business Model - Most of the startup choose wrong business model.
If a startup company selects a business model without proper planning

1. S t a r t U p & N e w V e n t u r e Management U N I T – I : B E I N G A N E N T R E P R E N E U R

2. Profile Analysis of the Entrepreneur Knack of selling D i s r u p t o r / I nn o v a t o r Knowledge Determination Delegator Profitability Relationship R i s k t a k i n g Confidence Independent

3. Entrepreneurial Behaviour & Motivation Entrepreneurial behaviour is a result of e n t r e p r e n e u r i a l m o t i v a t i o n Motivation has been derived from the word ‘Motive’ which implies the inner state of mind that activates, provokes and directs our b e h a v i o u r t o w a r d s t h e g o a l . Motivation is a process that motivates a person into action and induces him to follow the course of action till the goals are finally achieved

4. Nature of Motivation I n t e r n a l f ee li n g o f a n i n d i v i d u a l T h e s e f ee li n g p r o m p t s o n e t o w o r k m o r e E n e r g i s e s t o w a r d s p r o d u c t i v e a c t i o n L i n k e d t o s a t i s f a c t i o n I n d i v i d u a l i s m o t i v a t e d i n t o t a li t y

5. Importance of Motivation  H i g h S a t i s f a c t i o n a n d M o r a l e I n c r e a s ed p r o d u c t i v i t y C o n t r i b u t i o n t o o r g a n i z a t i o n a l g o a l s C o n g e n i a l w o r k e n v i r o n m e n t R e d u c ed a b s e n t e e i s m a n d t u r n o v e r A c c e p t a n c e o f o r g a n i z a t i o n a l c h a n g e I m p r o v e s m o r a l e o f e m p l o y ee s . L o w e r l a b o u r t u r n o v e r . I m p r o v e s g o o d w il l o f o r g a n i s a t i o n . C r e a t e s c o r d i a l i n d u s t r i a l r e l a t i o n s . C h a n g e s a r e m o r e e a s i l y a c c e p t e d b y e m p l o y ee s

6. Types of Motivation Positive Motivation: Results in willing co- operation of workers by tempting them t o w a r d s r e w a r d s o r i n c e n t i v e s . Negative Motivation: Creates fear amongst workers by threatening them with d e m o t i o n s , p a y c u t s , l a y - o ff s , e t c .

7. Theories of Motivation Maslow Need Hierarchy Theory Physiological Needs: Water, Air, Shelter, Clothing Safety Needs: Job Security, Personal Future Security Social Needs: Love, Affection, Warmth, Friendship Esteem or Ego Needs: Self Respect, Confidence, Recognition, Prestige Self-Activation Needs: Development, Personal Achievement

8. Theories of Motivation M c C l e l l a n d ’ s T h r e e N e e d M o d e l N e e d f o r a c h i e v e m e n t : D r i v e t o e x c e l , a d v a n c e a n d g r o w . Desire to achieve something with own efforts. N e e d f o r P o w e r : Drive to influence others and situations. Desire to influence and dominate others through use of authority. N e e d f o r A f f ili a t i o n : Drive for friendly and close interpersonal relationships. Desire to establish and maintain friendly relationship with others. People possess the above needs in varying degrees and these needs may be simultaneously acting on an individual. In case of entrepreneurs the need for achievement is more dominating.

9. Theories of Motivation Alderfer’s ERG Theory E x i s t e n c e , R e l a t e d n e s s a n d G r o w t h T h e o r y . Existence Needs: Includes basic needs and safety needs. Relatedness Needs: Needs are satisfied by personal relations and s o c i a l i n t e r a c t i o n s . Growth Needs: Includes self-actualization needs. For the proper development of entrepreneurship, relatedness and growth needs a r e m o r e i m p o r t a n t .

10. Motivating Factors for Entrepreneur ( A ) I n t e r n a l F a c t o r s : E d u c a t i o n a l B a c k g r o u n d . O cc u p a t i o n a l E x p e r i e n c e . D e s i r e t o d o w o r k i n de p e n de n t l y . D e s i r e t o b r a n c h o u t t o m a n u f a c t u r i n g . F a m i l y B a c k g r o u n d .

11. Motivating Factors for Entrepreneur ( B ) E x t e r n a l F a c t o r s : A ss i s t a n c e f r o m G o v e r n m e n t . A ss i s t a n c e f r o m f i n a n c i a l i n s t i t u t i o n s . Availability of technology. A v a i l a b ili t y o f r a w m a t e r i a l . D e m a n d o f t h e p a r t i c u l a r p r o d u c t .

12. E n t r e p r e n e u r i a l T r a i t s o r Competencies  Initiative  Loo k i ng f o r O p p o r t u n i t y  Persistence  In for m a t i o n See k er  Q u a l i t y Co nsc io u s n e s s  Co mm i t m e nt t o w or k  Co mm i t m e nt t o E f f i c i e n cy  Pro p er P la nn i ng  S e l f C o n f i d e nce  Assertive  Persuasive  E f f ect i v e M o n i t ori ng  Em p l o y e e s We l f a r e  E f f ect i v e st r a t e gi s t

13. Developing Entrepreneurial Competencies a b o u t G a i n i n g f i r s t - h a n d k n o w l ed g e competencies Competency Recognition Self-Assessment C o m p a r i n g o f C o m p e t e n c i e s D e v e l o p i n g o f C o m p e t e n c i e s a n d f e e d b a c k

14. Lean startup W h a t I s L e a n S t a r t - u p ? A lean start up is a method used to found a new company or introduce a new product on behalf of an e x i s t i n g c o m p a n y . The lean start up method advocates developing products that consumers have already demonstrated they desire so that a market will already exist as soon as the product is launched. As opposed to developing a product and then hoping that demand will emerge

15. Lean startup principles Entrepreneurs are everywhere E n t r ep r e n e u r s h i p i s M a n a g e m e n t V a li d a t e d l e a r n i n g B u il d – M e a s u r e – L e a r n I nn o v a t i o n A c c o un t i n g https:// www.youtube.com/watch?v=RSaI OCHbuYw

16. W h a t i s s t a r t u p ? A human institution designed to deliver a new product or s e r v i c e u n d e r c o n d i t i o n s o f e x t r e m e u n c e r t a i n t y . It has nothing to do with the size of company, sector of t h e e c o n o m y o r i n d u s t r y . E n t r e p r e n e u r s h i p = E x p e r i m e n t Reason for Failure – Not building things inefficiently but b u i l d i n g t h i n g s v e r y e f f i c i e n t l y t h a t n o b o d y w a n t s . https:// www.youtube.com/watch?v=RSaIOCHbuYw

17. Gauging Consumer Interest By employing lean start up principles, product developers can gauge consumer interest in the product and determine how the product might need to be refined. This process is called validated learning and it can be utilized to avoid the unnecessary use of resources in product creation and development. Through lean start up, if an idea is likely to fail, it will fail quickly and cheaply instead of slowly and expensively, hence the term “fail-fast.” The lean start up method was developed by American entrepreneur Eric Ries , founder, and CEO of the Long-Term Stock Exchange (LTSE). He fully explains the method in his bestselling book, The Lean Start-up, which has been translated into 30 languages. Lean start up is an example of consumers dictating the type of products they are offered by their respective markets, rather than those markets dictating what products will be offered to them.

18. Lean Start-up vs. Traditional Businesses The lean start up method also differentiates itself from the traditional business model when it comes to hiring . Lean start-ups hire workers who can learn, adapt, and work quickly while traditional businesses hire workers based on experience and ability. Lean start-ups also use different financial reporting metrics ; instead of focusing on income statements, balance sheets , and cash flow statements , they focus on customer acquisition cost , lifetime customer value , customer churn rate , and how v i r a l t h e i r p r o d u c t c o u l d b e .

19. R e q u i r e m e n t s f o r L e a n S t a r t - u p u p m e t h o d c o n s i de r s b e m o r e v a l u a b l e t h a n The lean start e x p e r i m e n t a t i o n t o de t a i l e d p l a n n i n g . Five-year business plans built around unknowns are considered a waste of time, and customer r e a c t i o n i s p a r a m o u n t .

20. R e q u i r e m e n t s f o r L e a n S t a r t - u p Instead of business plans, lean start-ups use a business model based on hypotheses that are tested rapidly . Data does not need to be completed before proceeding; it just needs to be sufficient. When customers do not react as desired, the start up quickly adjusts to limit its losses and return to developing products c o n s u m e r s w a n t . F a il u r e is t h e r u l e , n o t t h e e x c e p t i o n .

21. R e q u i r e m e n t s f o r L e a n S t a r t - u p Entrepreneurs following this method test their hypotheses by engaging with potential customers, purchasers, and partners to gauge their reactions about product features, pricing, distribution, and customer acquisition. With the information, entrepreneurs make small adjustments called iterations to products, and large adjustments called pivots correct any major concerns. This testing phase might result in changing the target customer or modifying the product to better serve the c u r r e n t t a r g e t c u s t o m e r .

22. R e q u i r e m e n t s f o r L e a n S t a r t - u p The lean start up method first identifies a problem that needs to be solved . It then develops a minimum viable product or the smallest form of the product that allows entrepreneurs to introduce it to potential customers for feedback. This method is faster and less expensive than developing the final product for testing and reduces the risk that start-ups face by decreasing their typical high failure rate. Lean start up redefines a start-up as an organization that is searching for a scalable business model , not one that has an existing business plan that it is determined to execute.

23. Example of Lean Start-up For example, a healthy meal delivery service that is targeting busy, single 20-somethings in urban areas might learn that it has a better market in 30-something affluent mothers of new-borns in the suburbs. The company might then change its delivery schedule and the types of foods it serves to provide optimal nutrition for new mothers. It might also add on options for meals for spouses or partners and other children in the household. The lean start up method is not to be used exclusively by start-ups. Companies such as General Electric, Qualcomm, and Intuit have all used the lean start up method; GE used the method to develop a new battery for use by cell phone companies in developing c o u n t r i e s w h e r e e l e c t r i c i ty i s u n r e l i a b l e .

24. K E Y T A K E A W A Y S Lean start up is the process of developing a product or company b a s ed o n t h e e x p r e s s e d d e s i r e s o f t h e m a r k e t . The lean start up uses validated learning , which is a process by w h i c h c o m p a n i e s a ss e ss c o n s u m e r i n t e r e s t . Lean start up methods focus heavily on customer-related information such as customer churn rate, lifetime customer value, and product popularity. In lean start up practices, experimentation is favoured more than a d h e r e n c e t o a r i g i d p l a n . Lean start up standards will involve the release of a small form or early concept products in order to assess the customer reaction to the product.

25. T h e E n t r e p r e n e u r i a l E c o s y s t e m India ranked 46 th among 132 countries in GII (Global I nn o v a t i o n I n d e x ) India ranked 4 th in Global Entrepreneurship Monitor Index 2021/2022 (report unveiled at Dubai Expo) followed by Saudi Arabia, Netherlands & Sweden.

26. T h e E n t r e p r e n e u r i a l E c o s y s t e m

27. Domains of Entrepreneurial Ecosystem Policy: (a) Leadership U n e q u i v o c a l s u p p o r t S o c i a l l e g i t i m a c y O p e n d oo r f o r A d v o c a t e E n t r e p r e n e u rs h i p s t r a t e g y U r g e n c y , C r i s i s & C h a l l e n g e ( b ) G o v e r n m e n t Institutions (e.g. investment, support) Financial support (e.g. For R&D, Jump start funds) R e g u l a t o r y f r a m e w o r k i n c e n ti v e s ( e . g . T a x b e n e f i t s ) R e s e a r c h i n s ti t u t e s Venture-friendly legislation (e.g. bankruptcy, contract enforcement, property rights and labour)

28. Domains of Entrepreneurial Ecosystem Finance: (a) Financial Capital Micro-loans A n g e l i n v e s t o r s , f r i e n d s & f a m i l y Z e r o - s t a g e v e n t u r e c a p i t a l V e n t u r e c a p i t a l f u n d s P r i v a t e e q u i ty P u b li c C a p i t a l m a r k e t s Debt

29. Domains of Entrepreneurial Ecosystem Culture: (a) Success Stories V i s i b l e s u c c e s s e s W e a l t h g e n e r a t i o n f o r f o u n d e r s I n t e r n a t i o n a l r e p u t a t i o n (b) Societal norms T o l e r a n c e o f r i s k , m i s t a k e s , f a i l u r e I n n o v a t i o n , c r e a t i v i t y , e x p e r i m e n t a t i o n S o c i a l s t a t u s o f e n t r e p r e n e u r W e a l t h c r e a t i o n A m b i t i o n , d r i v e , h u n g e r

30. Domains of Entrepreneurial Ecosystem Supports: (a) Non-Government institutions E n t r ep r e n e u r s h i p p r o m o t i o n i n n o n - p r o f i t s B u s i n e s s p l a n c o n t e s t s Conferences Entrepreneur-friendly associations (b) Support professions Legal Accounting I n v e s t m e n t b a n k e rs T e c h n i c a l e x p e r t s , a d v i s o r s (c) Infrastructure Telecommunications Transportation and logistics Energy Z o n e s , i n c u b a ti o n c e n t e r s , c l u s t e rs

31. Domains of Entrepreneurial Ecosystem Human Capital: (a) Educational institutions G e n e r a l d e g r ee s ( p r o f e ss i o n a l & a c a d e m i c ) S p e c i f i c e n t r e p r e n e u r s h i p t r a i n i n g ( b ) L a b o u r S k i l l e d a n d u n s k i ll e d S e r i a l e n t r e p r e n e u r s L a t e r g e n e r a t i o n f a m il y

32. Domains of Entrepreneurial Ecosystem Markets: (a) Networks E n t r e p r e n e u r ’ s n e t w o r k s D i a s p o r a n e t w o r k s M u l t i n a t i o n a l c o r p o r a t i o n s ( b ) E a r l y c u s t o m e r s E a r l y a d o p t e r s f o r p r oo f - o f - c o n c e p t E x p e r t i s e i n p r o d u c t i z i n g R e f e r e n c e c u s t o m e r F i r s t r e v i e w s D i s t r i b u t i o n c h a nn e l s

33. Entrepreneurs and Strategic Decisions Decision making is a cognitive process C o g n i t i o n = T h i n k i n g Cognition involves individual decision making involving the selection of a specific course of action that is s u p p o s e d t o b r i n g a c e r t a i n r e s u l t .

34. Entrepreneurs and Strategic Decisions D e c i s i o n m a k i n g i m p li e s c h o i c e Alternatives are available in a decision making Exact outcomes are unknown albeit estimated

35. Entrepreneurs and Strategic Decisions Decision making process- R e c o g n i z i n g a p r o b l e m s i t u a t i o n G e n e r a t i n g a l t e r n a t i v e s Evaluating the various alternatives Selecting the alternative that best satisfies our evaluation criteria

36. Entrepreneurs and Strategic Decisions How does decisions of entrepreneurs differ from company managers? Operate with limited information M u s t b e a c t i o n o r i e n t e d a n d d e c i s i v e A c c e p t r i s k I nv o l v e m a j o r c o n s e q u e n c e s

37. Entrepreneurs and Strategic Decisions D e c i s i o n m a k i n g i s a s tr a t e g i c a c t i v i t y - Setting specific courses of action to reach strategic goals R e v e n u e a n d p r o f i t g o a l s M a r k e t s h a r e a n d c o m p e t i t i v e a d v a n t a g e Product superiority and technical advantage

38. Entrepreneurs and Strategic Decisions Strategic decisions share four fundamental characteristics- C o m p l e x i t y : f a c t s , v a r i a b l e s a n d c o n t i n g e n c i e s r e l e v a n t f o r t h e d e c i s i o n a t h a n d . Uncertainty: all possible outcomes are not known and are difficult to forecast. Rationality: a specific goal is intended by making a decision. Control: intentional and deliberate actions are made by decision- makers.

39. Entrepreneurs and Strategic Decisions Environment of entrepreneurs is uniquely challenging

40. Entrepreneurs and Strategic Decisions E n t r e p r e n e u r s a r e d o i n g n e w t h i n g s . Entrepreneurs are without the resources and relationships typical of e s t a b li s h e d c o m p a n i e s . Uncertainty and complexity levels are high - Consequences of failed decisions include failed businesses; significant f i n a n c i a l a n d e m o t i o n a l p a i n .

41. Entrepreneurs and Strategic Decisions

42. Entrepreneurs and Strategic Decisions M a j o r S t r a t e g i c D e c is i o n A r e a s f o r a n E n t r e p r e n e u r : G e n e r a t i o n o f n e w E n t r y o p p o r t u n it y A ss e s s i n g t h e a t t r a c t i v e n e s s o f a n e w e n t r y strategy Ex p l o i t i n g N e w E n t r y O p p o r t u n i t y R i s k r ed u c t i o n s t r a t e g i e s f o r n e w e n t r y exploitation

43. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : W h a t i s s u s t a i n a b l e e n tr e p r e n e u r s h i p ?

44. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : Sustainable innovations aimed at the mass market and providing b e n e f i t t o t h e l a r g e r p a r t o f s o c i e t y . Individuals or companies contributing substantially to sustainable development with their core business can be called sustainable entrepreneurs. A business strategy or approach focused on increasing value for s o c i e t y , t h e e n v i r o n m e n t a n d t h e c o m p a n y o r b u s i n e ss .

45. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : I nn o v a t i o n Entrepreneurship Sustainability

46. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : Sustainability: On one hand, a globalized and competitive market demands an increasingly strategic position, whereas companies are induced to establish defined strategies to maintain competitive advantage. On the other hand, consumers are pressing for quality, safety and d i ff e r e n t n e w p r o d u c t s .

47. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : Entrepreneurship: According to Schumpeter, the entrepreneur destroys the existing economic order by introducing new products & services, by creating new forms of organizations or by exploiting new resources and materials. According to him, the entrepreneur is an engine of the economic system who perceives the essence of entrepreneurship in the use of new business opportunities and by associating this concept with innovation.

48. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : Economic Dimension: E c o n o m i c s u s t a i n a b i l i ty h a s a pp e a r e d i n t h e d e v e l o p m e n t o f g r o w t h m o d e l s . E n v i r o n m e n t a l D i m e n si o n : A s p e c t s r e l a t e d t o r e n e w a b l e n a t u r a l r e s o u r c e s , i m p a c t o n t h e e nv i r o nm e n t , e nv i r o n m e n t a l a c t i o n s t a k e n b y t h e o r g a n i z a t i o n s . S o c i a l D i m e n s i o n : R e f e rr e d a s ‘ s o c i a l r e s p o n s i b i li t y ’ e m e r g e d a s a w a y f o r t h e w e a l t h i e s t t o h e l p t h e m o s t i n n e e d . Idea is to let the organizations route some ‘profit’ to invest in social d e v e l o p m e n t p r o j e c t s .

49. S u s t a i n a b ili t y o f E n t r e p r e n e u r s h i p : Innovation: Innovations pertaining to sustainable development. By commitment to sustainable development, entrepreneurs must necessarily change their way of acting in order to reduce their negative social impacts arising from a purely economic perspective. T h i s r e q u i r e s a n e w w a y o f l oo k i n g a t i nn o v a t i o n .

50. Handling Doubts on Survival of Business K n o w y o u a r e n o t a l o n e - First, acknowledge that everyone has doubts. It's isolating to believe that you're the only one suffering from a lack of confidence. You’ll sabotage your success if you feel like an outlier. S t o p w o r r y i n g a b o u t w h a t o t h e r s t h i n k - When you spend all your time and energy trying to manage other peoples’ perception of you, you'll get stuck in an inadequacy loop. There will always be someone who appears to be doing better, getting further or having more. Do not benchmark yourself against others’ a c c o m p li s h m e n t s a n d p o ss e ss i o n s .

51. Handling Doubts on Survival of Business S e t i mm e d i a t e g o a l s - In addition to adopting ambitious, long-term goals, remember to establish attainable, short-term ones. It's easy to let doubt creep in when your big goals aren’t immediately realized. By achieving smaller goals along the way, you can constantly bask in frequent wins. R e m i n d y o u r s e l f o f p r i o r s u c c e ss e s - When the uncertainty inevitably hits, instead of dwelling on negatives, reflect on what went right and recent achievements -- with each accomplishment being another step along the path toward reaching b i g g e r g o a l s . G i v e y o u r s e l f f u l l c r e d i t f o r y o u r t r i u m p h s .

52. Handling Doubts on Survival of Business S u rr o un d y o u r s e l f w i t h t h e r i g h t p e o p l e - No person is an island, as the saying goes, and that holds true for your business life as well. Keep the people who encourage you close and seek out their feedback on a regular basis. Distance yourself from individuals who are always pessimistic toward you, your business and y o u r f u t u r e p r o s p e c t s . Be selective- Always look for alternative interpretations of situations that didn't turn out the way you wanted. Things happen that are outside of your c o n t r o l , i r r e s p e c t i v e o f y o u r i n v o l v e m e n t .

53. Handling Doubts on Survival of Business R e m e m b e r t h e r e s t o f t h e w o r l d - It can be hard to separate yourself from bad experiences. You might d o e v e r y t h i n g e x a c t l y r i g h t a n d y e t s o m e t i m e s t h i n g s s i m p l y d o n ’ t w o r k out. Remind yourself of that when you begin to doubt your abilities. And it's important to take a step back and remember that you're not the center of the universe. Other people have their goals and achievements, troubles and interpretations of situations. Don’t hinge personal identity to instant success- Most people develop an idealistic image of themselves. When they fail to live up to that image at any point, doubt sinks in. Despite your best efforts and intentions, mistakes happen and it doesn't make sense to d w e l l o n t h e m . I n s t e a d , l e a r n f r o m e a c h b l u n d e r a n d a c t i v e l y d e v e l o p better habits.

54. Handling Doubts on Survival of Business Forgive yourself- A sure way to waste time is by beating yourself up and choosing to feel m i s e r a b l e . G i v e y o u r s e l f p e r m i ss i o n t o m o v e o n . Be decisive but don’t fear a change of mind- When the time comes to make a decision, do not over expend your energy dithering. In most cases, your first gut feeling is probably the right choice, so make a decision and move on. But do not be afraid to change course if, down the line, you realize it wasn’t the right choice after all. That might seem like a contradiction, but it is not.

55. Handling Doubts on Survival of Business D i s tr a c t y o u r s e l f - It's all too easy to become overly caught up in negative thoughts, which left unchecked can spread to all aspects of your life. Break the cycle immediately. A few ways to try to exit this self-destructive mental loop include taking a walk, moving on to another project or doing exercise. Experiment and find the technique that works best to quell p e s s i m i s m b e f o r e i t c o n s um e s y o u . Face your fears- Finally, do not let fear or self-doubt dictate how you lead your personal life or operate your business. Regularly evaluate the worst-case scenarios as well as the risk-reward ratio and face the things that scare you head-on.

56. S t r u g g l e & C a u s e s o f E n t r e p r e n e u r i a l F a il u r e Major reasons are related to: Product, Market, Finance, Managerial Resilience Not having enough money- Unpreparedness or lack of planning. Lack of money whether its self- f i n a n c e o r b a n k l o a n . Not knowing your market- W h o a r e y o u r c u s t o m e r s ? W h o i s y o u r c o m p e t i t i o n ? What is your target market willing to pay for your product or service?

57. S t r u g g l e & C a u s e s o f E n t r e p r e n e u r i a l F a il u r e Lack of vision- Businesses without well thought-out, long-term and short-term goals will fail because they don’t have clear success benchmark along the way. B i t i n g o ff m o r e t h a n y o u c a n c h e w - A s p e r t h e s a y i n g “ R o m e w a s n ’ t b u il t i n a d a y ” a n d n e i t h e r w a s A m a z o n , G oo g l e , G E , M i c r o s o f t o r T e s l a . T r y i n g t o b e e v e r y t h i n g t o e v e r y b o d y - Trying to be too quick to chase money or sale by adding products or services that they do not truly specializes in. L i k e j a c k o f a l l t r a d e s b u t m a s t e r o f n o n e .

58. S t r u g g l e & C a u s e s o f E n t r e p r e n e u r i a l F a il u r e Not enough marketing- Y o u c a n h a v e t h e b e s t p r o d u c t o r s e r v i c e d i n t h e w o r l d , b u t i f n o b o d y k n o w s a b o u t i t , y o u w o n ’ t s u c c e e d . Unless you reach your audience, you cannot find success. S o c i a l m e d i a , d i g i t a l , w o r d - o f - m o u t h m a r k e t i n g P o o r p l a nn i n g - Like “If you fail to plan, you plan to fail”. A good business plan need not be overly complicated. It is simply knowing and developing a strategy around your company, p r o d u c t a n d c o m p e t i t i o n .

59. S t r u g g l e & C a u s e s o f E n t r e p r e n e u r i a l F a il u r e Not accepting constructive criticism- Considering criticism as an opportunity to do better. N o t g e t t i n g o f f e n d e d b y c r i t i q u e b e c a u s e y o u a r e t o o e m o t i o n a l a b o u t y o u r b u s i n e s s . A tt i t u d e o f l e a r n i n g f r o m c r i t i c i s m . N o t d e l e g a t i n g - What doesn’t work in today’s context and scenario is: “ I f i t ’ s g o i n g t o b e , i t ’ s u p t o m e ” “ E n t r e p r e n e u r s a r e s e l f - m a d e ” “If you want things done right, do it yourself” It cannot be a ‘one-person show’, but needs a good team to help you b r i n g y o u r v i s i o n t o r e a l i t y .

60. S t r u g g l e & C a u s e s o f E n t r e p r e n e u r i a l F a il u r e L a c k o f s o f t s k ill s - Sometimes intangible and non-technical talents that entrepreneurs n ee d t o l e a d e ff e c t i v e l y . Include attitude, communication, empathy, motivation, team work, networking, leadership, decision making, problem-solving and conflict resolution. Burnout- If not delegating, entrepreneurs can quickly burn out and lose their d r i v e a n d p a ss i o n i f t h e y d o n o t g e t t h e r i g h t s u pp o r t . “Entrepreneurs are the only people who will work 80 hours a week to a v o i d w o r k i n g 4 h o u r s a w e e k .

61. Legal Fundamentals L e g a l F o r m s : Proprietorship Partnership LLP P L C

62. U N I T – II C U S T O M E R D I S C O V E R Y

63. C U S T O M E R D I S C O V E R Y E n tr e p r e n e u r i a l O pp o rt un i t y S e a r c h & I d e n t i f i c a t i o n I d e n t i f y m a r k e t i n e f f i c i e n c i e s R e m o v e k e y h a ss l e s C u s t o m e r s d e s i r e t o e x p e r i e n c e s o m e t h i n g n e w P i c k a g r o w i n g s e c t o r / i n d u s t r y P r o d u c t d i f f e r e n t i a t i o n C a s h f l o w c o n s i d e r a t i o n S e a s o n a b ili ty o f t h e b u s i n e ss

64. C U S T O M E R D I S C O V E R Y Analysis of Opportunity C o m m u n i c a t i o n w i t h p o t e n t i a l c u s t o m e r R e s e a r c h i n g p o t e n t i a l c o m p e t i t o r s I d e n t i f y t a r g e t m a r k e t s e g m e n t s Q u a n t i f y t a r g e t m a r k e t s e g m e n t D e v e l o p s a l e s p r o j e c t i o n s P r o j e c t p r o f i t / l o ss

65. C U S T O M E R D I S C O V E R Y P r o d u c t S e l e c t i o n Criteria for Product selection: S u pp l y G a p Fund A v a il a b i l i ty o f a c c e ss t o r a w m a t e r i a l T e c h n i c a l i m p l i c a t i o n s P r o f i t a b ili t y / m a r k e t a b i l i ty A v a il a b i l i ty o f q u a l i f i e d p e r s o nn e l G o v t . p o li c i e s C o r p o r a t e o b j e c t i v e s

66. C U S T O M E R D I S C O V E R Y P r o d u c t S e l e c t i o n S t e p s t o b e f o l l o w e d : Idea generation Evaluation Choice

67. Market Intelligence, Market Analysis & Market Research Market Research Market Intelligence Is used to evaluate the feasibility of a n e w p r o d u c t o r se r v i c e , t h r o u g h r ese a r c h c o n d u cted d i r e c t l y wi th p o tent ia l c o ns u me r s Is used to evaluate the functioning of the w h o l e b u s i n e s s , th r o u g h c o nt i n u e d a w a r en e s s o f al l the a s p e c ts o f the target market I s c o m p a ny s p e c i f i c I s m a r k e t s p e c i f i c Sc o p e i n c l u d es t o pi c s li k e c o n s u m e r preferences, customer perception, customer base, customer retention, trends, product features, styles, flavors etc. Sc o p e i n c l u d es t o pi c s li k e m a r k e t sh a r e , m o ney s o u r ces i n v ested i n t h e i n d u st r y , c o m p et i t o r s, m a rk et u n d e r st a n d i n g , m a rk et a n al y s i s, m ark et t r e n d s , c ust o m e r s p e n d i n g and suppliers I s a s u b set o f m a rk et i n te l lig e n c e I s a s u p e r s e t o f m ark et r e s e ar ch

68. Market Intelligence, Market Analysis & Market Research

69. Customer Validation t h e p r o d u c t C u s t o m e r v a l i d a t i o n i s a n e s s e n t i a l p h a s e o f d e v e l o p m e n t p r o c e s s i.e., the steps needed to take a product from concept to market availability. It tests assumptions and hypotheses about the customer problem, t a r g e t m a r k e t , a n d p r o d u c t

70. Customer Validation

71. Developing your Business Model

72. Crafting your Value Proposition Understand the value proposition creation process. Test your target customer assumptions. D e s c r i b e y o u r p r o d u c t v i s i o n . C r e a t e a n d t e s t t h e m i n i m u m v i a b l e p r o d u c t . Develop a value proposition statement.

73. Product Development Product development is the process of building a new product, from ideation all the way t h r o u g h l a u n c h .

74. Product Development Process

75. L o n g T a il M a r k e t s T e r m c o i n e d i n 200 4 B Y R e s e a r c h e r C h r i s A d e r s o n

76. L o n g T a il M a r k e t s The long tail is a business strategy that allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items.

77. L o n g T a il M a r k e t s The long tail concept takes into account less popular products that are in less demand. profitability of these products could increase as consumers move away from conventional markets. This theory is supported by the growing number of online marketplaces, which facilitate competition for shelf space and traditional distribution channels and enable the sale of many products, particularly over the internet.

78. L o n g T a il M a r k e t s It is a strategy that allows companies to make significant profits from products that are hard to find. Anderson found that less demand niche products or those that sell less in volume can potentially outperform top sellers as long as the d i s tr i b u t i o n c h a nn e l i s l a r g e e n o u g h . it means that consumers divert their attention from the main market a n d f o c u s o n l e ss p o p u l a r p r o d u c t s .

79. L o n g T a il M a r k e t s Examples: Amazon Netflix Meesho Microfinance companies

80. L o n g T a il M a r k e t s

81. Product Launch Goals Find a product-market fit Capture new customers Increase in revenue Build product awareness Build the company’s reputation in the industry

82. Go-to-Market Strategy A go-to-market strategy (GTM strategy) is an action plan that specifies how a company will reach target customers and achieve competitive advantage. The purpose of a GTM strategy is to provide a blueprint for delivering a product or service to the end customer, taking into account such factors as pricing and distribution.

83. Go-to-Market Strategy Organizations can use a GTM Strategy for launching new products or services introducing a current product to a new market relaunching the company or brand

84. Go-to-Market Strategy B e n e f i t s o f G T M S tr a t e g y A clearly defined plan and direction for all stakeholders R e d u c e d t i m e t o m a r k e t f o r p r o d u c t s a n d s e r v i c e s Increased chances of a successful product or service launch Decreased likelihood of extra costs generated by failed product or service launches

85. Go-to-Market Strategy Enhanced ability t o r e a c t t o c h a n g e s a n d customer desires Improved management of challenges A n e s t a b l i s h e d p a t h f o r g r o w t h customer E n s u r e d c r e a t i o n o f a n e ff e c t i v e experience Guaranteed regulatory compliance

86. Go-to-Market Strategy C o r e C o m p o n e n t s o f G T M S tr a t e g y : Market definition : Which markets will be targeted to sell the product or service? Customers : Who is the target audience within these markets? Distribution model : How will the product or service be delivered to t h e c u s t o m e r ? Product messaging and positioning : What is being sold and what is its unique value or primary difference when compared to other products or services in the market? Price : How much should the product or service cost for each c u s t o m e r g r o u p ?

87. Go-to-Market Strategy objectives of a go-to-market strategy Creating awareness of a specific product or service. Generating leads and converting leads into customers. i n c r e a s i n g M a x i m i z i n g m a r k e t s h a r e b y e n t e r i n g n e w m a r k e t s , customer engagement and outperforming competitors. Protecting the current market share against competitors. S tr e n g t h e n i n g b r a n d p o s i t i o n i n g . Reducing costs and optimize profits.

88. Go-to-Market Strategy

89. Role of Selling in a Start-Up H o w w i ll y o u a c q u i r e n e w c u s t o m e r s ? H o w w ill y o u e x p a n d / s t r e n g t h e n e x is t i n g relationships with customers? How will you sell more products and services?

90. Role of Selling in a Start-Up W h y s t a rt u p s n ee d a s a l e s s t r a t e g y A sales strategy allows you to address the needs of customers at every stage A s a l e s s t r a t e g y i m p r o v e s t h e R O I o f y o u r s a l e s t e a m A s a l e s s t r a t e g y e n a b l e s y o u t o h i r e t h e r i g h t p e o p l e

91. Role of Selling in a Start-Up Build your startup sales strategy: Step 1 : Chart the course of your customer journey, both before and after sales. Take time to understand what you are currently doing at each sales interval. Step 2 : Deconstruct the sales journey, research and brainstorm on how and where you can reduce the cost or improve the customer satisfaction. For example, maybe you should do more upselling, maybe you can shift to drip emails instead of phone calls to reach out to prospects, etc. Step 3 : Once you have a profitable sales process in mind, check to see if it i n t e g r a t e s w i t h y o u r m a r k e t i n g p l a n . Step 4 : Identify one key sales activity that will boost your business growth significantly. Step 5 : Define your method and process around this key sales activity. Allocate resources and build your process to maximize the impact of this activity.

92. S a l e s F o r e c a s t i n g f o r S t a r t - U p s Three reasons why startups should prepare sales forecasts Sales forecasts help you to understand and manage your cash flow Sales forecasting assists in planning your procurements, production and logistics capacity Sales forecasts help you to develop your medium-term revenue projections ( n e e d e d i f y o u s e e k e x t e r n a l f i n a n c i n g )

93. Mapping Buyer Response Modes It is key for start-ups to understand customer responses to sales propositions and to be able to map these buyers response modes. The term response modes describes a potential customer’s behaviour or reaction to a sales proposition.

94. Mapping Buyer Response Modes T h e f o u r r e s p o n s e m o d e s 1. Trouble Mode refers to a prospect who acknowledges he has a problem and is actively seeking a solution , in the form of a product or service, to his problem. The acknowledgment of a problem represents a negative event horizon . Before that event, their historic state matched their goal state. After the negative event, their current state is below their goal state. These prospects are actively engaged in a purchase decision which will return them to their goal state. Ex. Two- w h e e l e r o r C a r f o r d a il y c o mm u t e

95. Mapping Buyer Response Modes

96. Mapping Buyer Response Modes 2. Growth Mode refers to a prospect who acknowledges that her state could be improved , and that the improvement would require the purchase of a product or service. The acknowledgment of an opportunity to improve their state implies that, in their mind, they are performing below potential capability and that to reach their potential, they must take action . Like prospects in Trouble Mode, prospects in Growth Mode are actively engaged in a purchase d e c i s i o n . E x . M i c r o w a v e O v e n

97. Mapping Buyer Response Modes

98. Mapping Buyer Response Modes Even Keel refers to prospects who are satisfied with their current state , at least satisfied as it relates to the product or service being sold by the salesperson. It may not be that their current state is good, nor that it can’t be improved , but simply that improving on the current state in the area affected by that salesperson’s offerings isn’t a priority currently . These prospects are unengaged in the market currently, and are therefore unlikely to currently purchase . The emphasis is on “currently”. They may not purchase today, but at some point in the future they are likely to re-engage the market . For a salesperson, these Even Keel prospects should not be a high priority . Even Keel prospects are best managed by marketing communications until their response mode changes. Ex. Byju, Life I n s u r a n c e & T e r m I n s u r a n c e e t c .

99. Mapping Buyer Response Modes

100. Mapping Buyer Response Modes The fourth response mode is Oblivious. Oblivious prospects may be unaware of the trouble they are experiencing , or the growth opportunity before them . They need an education before they will enter the market. Like with Even Keel prospects, salespeople should not treat Oblivious prospects as a priority. Let marketing communications manage them until t h e i r r e s p o n s e m o de c h a n g e s . E x. M u t u a l F un d s

101. Mapping Buyer Response Modes

102. Social Media Promotion Tools F a c e b oo k & I n s t a g r a m Google+ P i n t r e s t Twitter LinkdIn Youtube Y e l p & F o u r s q u a r e Reddit

103. UNIT-III T H E F I N A N C I A L R O A D M A P

104. P l a nn i n g / B u d g e t i n g W h a t i s B u dg e t i n g ?

105. P l a nn i n g / B u d g e t i n g Budgeting is the process of creating a plan to spend your money . I t a ll o w s y o u t o d e t e r m i n e i n a d v a n c e w h e t h e r y o u will have enough money to do the things you need t o d o o r w o u l d l i k e t o d o . If you don't have enough money to do everything you would like to do, then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you.

106. P l a nn i n g / B u d g e t i n g

107. P l a nn i n g / B u d g e t i n g Budgeting is simply balancing your expenses with your income. If they don't balance and you spend more than you make, you will have a problem. Many people don't realize that t h e y s p e n d m o r e than they earn and slowly sink deeper into d e b t e v e r y y e a r .

108. P l a nn i n g / B u d g e t i n g Why is Budgeting so Important?

109. P l a nn i n g / B u d g e t i n g Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of d eb t i f y o u a r e c u rr e n t l y i n d eb t .

110. Developing a Financial Roadmap Stage Needs Plan Survival Bu r n -r a te M on it o r i n g C a sh Fl o w P r o j ec t i o n E a rly Revenu e Revenue Forecasting Marketing/Sales Funnel E a rly Gr o wth Cost Planning H i gh -l e v e l Budge t Growth Decentralization Operational Plans Scale Real-time Iteration Dynamic Planning

111. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s

112. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s 1 ) B a l a n c e S h ee t : The balance sheet reports the business’s financial position at a particular point in time. It is also known as the Statement of Financial Position or Statement of Financial Condition or Position Statement.

113. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s It shows the Assets owned by the business on one side and sources of funds used by the business to hold such assets in the form of Capital contribution and liabilities incurred by t h e b u s i n e s s o n t h e o t h e r s i d e . In a nutshell, the Balance Sheet shows how the money has been made available to the company’s business and how the company e m p l o y s t h e m o n e y .

114. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s B a l a n c e S h e e t C o n s i s t s o f 3 E l e m e n t s :

115. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s Assets: These are the resources controlled by the business. They can take the form of Tangible Asset or Intangible Assets and can also be classified based on Current Assets (which are to be converted into cash within a year) and Non- Current Assets (which are not converted into cash w i t h i n a y e a r ) .

116. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s Liabilities: These are the amounts owed to lenders and other creditors. Liabilities are further classified into Current Liabilities such as Bills Payable, Creditors, etc. (which are payable within a year) and Non- Current Liabilities such as Term Loans, Debentures, etc. (which are not payable within a year).

117. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s O w n e r ’ s E q u i t y : A l s o k n o w n a s C a p i t a l C o n t r i b u t i o n b y t h e O w n e r . I t s h o w s t h e r e s i d u a l interest in the Net Assets of an entity that remains after deducting its liabilities. It is also a sign of the promoter’s skin in the game (i.e., business). Assets = Liabilities + Owners Equity

118. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s 2 ) I n c o m e S t a t e m e n t : The Income Statement reports the financial performance of the business over some time and comprises Revenue (which comprises all cash inflows from the manufacturing of goods and rendering of services), Expenses (which comprise all cash outflows incurred in the manufacturing of goods and rendering of services) and also comprise of all gains and losses which are not attributable in the ordinary course of business. Excess of Revenues over Expenses results in Profit and vice versa, resulting in Loss for the business during that period.

119. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s 3 ) S t a t e m e n t o f c h a n g e s i n E q u i t y : This statement is one of the financial statement components, which reports the amount and sources of changes in Equity Shareholders’ I nv e s t m e n t i n t h e b u s i n e s s o v e r a w h il e . It summarizes the changes in the capital and reserves attributable to equity holders of the company over the accounting period. Accordingly, all the increases and decreases during the year, when adjusted with the Beginning balance, result in the ending balance.

120. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s T h e s t a t e m e n t i n c l u d e s t r a n s a c t i o n s w i t h shareholders and reconciles each equity account’s beginning and ending balance, including capital stock , additional paid-in capital , retained earnings , and accumulated other comprehensive income. The statement shows how the composition of equity (share capital, other reserves, and Retained Earnings) h a s c h a n g e d o v e r t h e y e a r s .

121. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s 4 ) C a s h F l o w S t a t e m e n t : T h i s s t a t e m e n t s h o w s t h e c h a n g e s i n t h e b u s i n e ss ’ s financial position from the perspective of the m o v e m e n t o f c a s h i n t o a n d f r o m t h e b u s i n e ss . T h e primary rationale behind preparing a cash flow statement is to supplement the Income Statement and Statement of Financial Position . These statements don’t provide sufficient insight into m o v e m e n t s i n c a s h b a l a n c e s .

122. F i n a n c i a l S t a t e m e n t s : F o u r C o m p o n e n t s The cash flow statement bridges that gap and helps various business stakeholders understand the sources of cash and utilization of cash. There are three sections to the cash flow statement, namely: Cash Flow from Operating Activities starts from Operating Profit and r e c o n c i l e s o p e r a t i n g p r o f i t t o c a s h . Cash Flow from Investing Activities – comprises all acquisition/purchase of long-term assets and disposal/sale of long-term Assets and other investments that are not included in cash equivalent. It also includes receipts of interest and dividends from investments. Cash Flow from Finance – It accounts for equity capital and borrowings changes. It comprises the payment of dividends to the shareholders cash flows arising from the repayment of loans, and fresh borrowing and issue of shares.

123. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 1 . S e t a t a r g e t M a k e u s e o f t o o l s s u c h a s G o o g l e S h e e t s , M S E x c e l , a c c o u n t i n g s o ft w a r e f o r i n t e g r a t ed f i n a n c i a l p l a nn i n g . set an upfront goal that will help you differentiate between the ‘must- h a v e s ’ a n d t h e ‘ w o u l d - b e - n i c e - t o - h a v e s . ’ Do not forget to factor in an emergency fund within your startup budget. This should include a minimum of 3 months’ expenses at any given time.

124. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 2 . L i s t i n c o m e s o u r c e s Always be mindful of being realistic when calculating potential revenue or funding sources such as loans, savings, or investment income.

125. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 3 . C a t e g o r i z e c o s t s i n t o r e v e nu e b u c k e t Divide your costs into Capital and Operational Expenditure. T h e f o r m e r i n c l u d e s a n y l a r g e i n v e s t m e n t s s u c h a s l a n d a r e a s , equipment, etc. These costs give you returns several times.

126. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 4 . D e t e r m i n e v a r i a b l e c o s t s R a w m a t e r i a l , A d v t . E x p e n d i t u r e , Shipping, F r ee l a n c e s e r v i c e s , U t il i t i e s e t c .

127. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 5 . A cc o m m o d a t e i n t e r e s t a n d t a x e s

128. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 6 . C r e a t e e s t i m a t e s f o r f i n a n c i a l s t a t e m e n t s

129. H o w t o b u dg e t f o r S t a r t - U p S u cc e ss ? 7 . I n t e g r a t e w i t h a ll d e p a rt m e n t s

130. Bootstrapping “Bootstrapping” is the act of building your business using your own funds and revenue from customers, instead of raising money from outsiders such as angel investors and venture capitalists. Most start-up companies use bootstrapping, or alternative sources of funding such as c r o w d f u n d i n g , t o b u i l d t h e i r v e n t u r e s .

131. Alternative sources of funding Crowdfunding: It’s like taking a loan, pre-order, contribution or investments from more t h a n o n e p e r s o n a t t h e s a m e t i m e . Those giving money will make online pledges with the promise of pre- b u y i n g t h e p r o d u c t o r g i v i n g a d o n a t i o n . Anyone can contribute money toward helping a business that they really believe in.

132. Alternative sources of funding Angel Investment A n g e l i n v e s t o r s a r e i n d i v i d u a l s w i t h s u r p l u s c a s h and a keen interest to invest in upcoming startups. They can also offer mentoring or advice alongside capital. T h e y p r e f e r t o t a k e m o r e r i s k s i n i nv e s t m e n t f o r h i g h e r r e t u r n s .

133. Alternative sources of funding Venture Capital Venture capitals are professionally managed funds who invest in companies that have huge potential. VCs provide expertise, mentorship and acts as a g o i n g , e v a l u a t i n g t h e b u s i n e ss f r o m li t m u s t e s t o f w h e r e t h e o r g a n i s a t i o n i s the sustainability and scalability point of view.

134. Alternative sources of funding P r i v a t e E q u i t y : Private equity is an alternative investment class and consists of capital that is n o t li s t ed o n a p u b l i c e x c h a n g e . Private equity is composed of funds and investors that directly invest in private companies or that engage in buyouts of public companies, resulting i n t h e d e l i s t i n g o f p u b l i c e q u i t y . Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions , expand working capital, and bolster and solidify a balance sheet.

135. Alternative sources of funding B u s i n e ss I n c u b a t o r s & A cc e l e r a t o r s Early stage businesses can consider Incubator and Accelerator p r o g r a m s a s a f u n d i n g o p t i o n . Found in almost every major city, these programs assist hundreds of s t a r t u p b u s i n e s s e s e v e r y y e a r . These programs normally run for 4-8 months and require time c o m m i t m e n t f r o m t h e b u s i n e ss o w n e r s .

136. Alternative sources of funding W i nn i n g C o n t e s t s An increase in the number of contests has tremendously helped to m a x i m i z e t h e o pp o r t u n i t i e s f o r f u n d r a i s i n g . It encourages entrepreneurs with business ideas to set up their own businesses. In such competitions, you either have to build a product or prepare a business plan.

137. Alternative sources of funding Bank Loans The bank provides two kinds of financing for businesses. One is working c a p i t a l l o a n , a n d o t h e r i s f u n d i n g . Working Capital loan is the loan required to run one complete cycle of revenue generating operations, and the limit is usually decided by h y p o t h e c a t i n g s t o c k s a n d d e b t o r s . Funding from bank would involve the usual process of sharing the business plan and the valuation details, along with the project report, b a s ed o n w h i c h t h e l o a n i s s a n c t i o n e d .

138. Alternative sources of funding M i c r o f i n a n c e P r o v i d e r s o r N B F C s Microfinance is basically access of financial services to those who would not have access to conventional banking services. It is increasingly becoming popular for those whose requirements are limited and credit ratings not favoured by bank.

139. Alternative sources of funding G o v t . P r o g r a m s T h a t O ff e r S t a r t u p C a p i t a l Government backed ‘Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA) ‘ starts with an initial corpus of Rs. 20,000 c r o r e t o e x t e n d b e n e f it s t o a r o u n d 1 l a k h s S M E s .

140. Alternative sources of funding Q u i c k W a y s T o R a i s e M o n e y P r o d u c t P r e - s a l e S e l l i n g A s s e t s C r e d i t C a r d s

141. Alternative sources of funding I n f o r m a l C a p i t a l – F r i e n d s & F a m il y It's a way to raise money at a very early stage in your business. You might not yet have a complete business plan or any proof of value , s u c h a s i n i t i a l o r d e r s f o r s t o c k . Most friends and family investors will be willing to put their trust in you to deliver on your business plan, no matter how concrete or vague it may currently be.

142. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s PMEGP P r i m e M i n i s t e r ’ s E m p l o y m e n t G e n e r a t i o n P r o g r a m m e https:// www.kviconline.gov.in/pmegpeportal/pmegphome/index.js p credit-linked subsidy programme introduced by the government of India in 2008. PMEGP is a merger of two schemes, namely, Prime Minister’s Rojgar Y o j n a a n d R u r a l E m p l o y m e n t G e n e r a t i o n P r o g r a mm e .

143. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s PMEGP This program focuses on generating self-employment opportunities through micro-enterprise establishments in the non-farm sector by helping unemployed youth and traditional artisans. The Ministry of MSME administers the Prime Minister’s Employment G e n e r a t i o n P r o g r a m m e ( P M E G P ) . The PMEGP Scheme is being implemented by Khadi and Village Industries Commission (KVIC) at the national level.

144. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s PMEGP At the State level, the Scheme is being implemented through State Khadi and Village Industries Commission Directorates, State Khadi and Village Industries Boards and District Industries Centres and banks.

145. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s Objectives of PMEGP: Generation of sustainable and continuous self-employment opportunities in urban and rural areas of the country. Providing sustainable and continuous employment to a large segment of rural and urban unemployed youth, traditional and p r o s p e c t i v e a r t i s a n s t h r o u g h t h e e s t a b li s h m e n t o f m i c r o - e n t e r p r i s e s . Facilitating the financial institution’s participation for higher credit f l o w t o t h e m i c r o s e c t o r .

146. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s E li g i b ili t y f o r P M E G P : I n d i v i d u a l s w i t h a g e o f 1 8 y e a r s o r m o r e Passing standard VIII is required for a project above Rs 5 lakh in the service sector and above Rs 10 lakh in the manufacturing sector Institutions registered under Societies Registration Act- 1860 Production based co-operative societies S e l f - h e l p g r o u p s a n d c h a r i t a b l e t r u s t

147. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s S a li e n t F e a t u r e s o f P M E G P : The Scheme is implemented through Khadi and Village Industries Commission, State Khadi and Village Industries Commission Directorates, State Khadi and Village Industries Boards and District Industries Centres and banks in Urban and Rural areas in the ratio of 30:30:40 between Khadi and Village Industries Commission / Khadi a n d V il l a g e I n d u s t r i e s B o a r d s / D I C r e s p e c t i v e l y .

148. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s S a li e n t F e a t u r e s o f P M E G P : Assistance under the PMEGP is only available to new units that are t o b e e s t a b li s h e d . There is no income ceiling for setting up projects. Existing units or units that are already availing any government s u b s i d y ( S t a t e o r C e n t r a l ) a r e i n e l i g i b l e .

149. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s S a li e n t F e a t u r e s o f P M E G P : A n y i n d u s t r y i n c l u d i n g c o i r b a s e d p r o j e c t s ( e x c l u d i n g t h o s e mentioned in the negative list) can take advantage of this scheme The per capita investment under the scheme should not exceed Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas. Maximum project cost Rs 10 lakh in the service sector and Rs 25 lakh i n t h e m a n u f a c t u r i n g s e c t o r i s t h i s li m i t .

150. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s S u b s i d y u n d e r P M E G P : Categories of beneficiaries under PMEGP Beneficiary’s own c o n tri bu ti o n ( o f p r o j e c t cost) R a t e o f S u b si d y Urban Rural G e n e r a l C a t e g o r y 10% 15% 25% Special Category ( in c l u d in g S C / S T / O B C / M in o r i t i e s/ W o m e n , E x- Se rv i c e m e n , P h y s i c a l l y h a n d i c a p p e d , N ER , H il l , a nd B o r d er a r e a s e t c ) 5% 25% 35%

151. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s  CGTMSE Credit Guarantee Fund Trust for Micro and Small Enterprises https:// www.cgtmse.in/ CGTMSE is an initiative of the Government of India in collaboration with the Ministry of Micro, Small and Medium Enterprises ( MSME ) and t h e S m a l l I n d u s t r i e s D e v e l o p m e n t B a n k o f I n d i a ( S I D B I ) l a u n c h e d o n 30 th August 2000. The basic aim of CGTMSE is to encourage first-time entrepreneurs to establish SMEs and MSME , considered to be the bulwark of the Indian economy by availing of collateral-free loans from eligible f i n a n c i a l i n s t i t u t i o n s .

152. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s t h e b o r r o w e r t o r e p a y t h e CGTMSE T h e g u a r a n t ee c o v e r s d e f a u l t b y advance. the CGTMSE scheme primarily envisages the provision of loans to first-generation entrepreneurs so that they can flourish in the competitive environment without the burden of security or third- party guarantees. In turn, the financial institutions are provided cover for the absence of security to fund SMEs and MSMEs promoted by small Indian b u s i n e s s m e n u p t o a c e r t a i n li m i t .

153. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s Features of the Credit Guarantee Scheme: Guaranteed repayment of 75% or 85% in some cases for the defaulted principal loan amount up to Rs.50 lakh. The maximum guarantee is 50% for loan amounts greater than Rs.50 l a k h b u t u n d e r R s . 1 c r o r e . Provides 85% repayment for loans up to Rs.5 lakhs to micro- enterprises. T h e g u a r a n t ee a m o u n t f o r r e p a y m e n t i s 80 % o f t h e l o a n a m o u n t i n case the MSME is promoted by a woman or the location of the unit i s i n t h e N o r t h E a s t R e g i o n ( N E R) .

154. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s Features of the Credit Guarantee Scheme: The repayment procedure or CGTMSE loan recovery covers the entire loan amount inclusive of the interest component for a period of 3 months and/ or the entire outstanding loan amount along with the accrued interest from the suit filed date or the day when the loan turns into an NPA, whichever is lower. Rehabilitation of business units if the failure is beyond the control of the management to the extent of Rs.1 crore as support to the lender f o r a ss i s t a n c e i n r e s u s c i t a t i n g t h e e n t e r p r i s e .

155. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s Maximum Guarantee Cover under CGTMSE: Category The maximum amount of credit facility Up to Rs. 5 lakh More than Rs. 5 lakh to Rs. 50 lakh More than Rs.50 lakh to Rs. 2 crores Micro Enterprises 85 percent of the default amount maximum of Rs. 4.25 lakhs. 75 percent of the default amount maximum of Rs. 37.50 lakhs. 75 percent of the default amount maximum Rs.1.5 crores W o m e n a n d U n i t s i n N E R 80 percent of the default amount maximum Rs.40 lakhs for credit facility up to Rs.50 lakhs. All others 75 percent of the default amount maximum Rs.40 lakhs for credit facility up to Rs.50 lakhs.

156. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s C G T M S E S c h e m e E li g i b i l i t y C r i t e r i a : Lending Institutions: It covers the whole gamut of scheduled commercial banks, specified Regional Rural Banks, SIDBI, NSIC , NEDFi, SFB and NBFCs who lend to the specific sector and have entered into an agreement with CGTMSE or the Trust for the purpose. These are designated as Member Lending Institutions (MLIs) and number 131 at present.

157. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s C G T M S E S c h e m e E li g i b i l i t y C r i t e r i a : Lending Borrowers: The CGTMSE coverage is conditional to all new a n d e x i s t i n g S M E s : The maximum credit facility is Rs.50 lakhs for a guarantee cover not e x c e e d i n g R s . 62 . 5 l a k h s / R s . 6 5 l a k h s . For credit facilities above Rs.50 lakhs, the guarantee cap is limited to Rs. 1 crore. Term credit for the entire outstanding amount on the date the loan is declared to be an NPA or on the date of filing a suit.

158. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s C G T M S E S c h e m e E li g i b i l i t y C r i t e r i a : Exclusions: Some entities are excluded from the CGTMSE coverage . They are: R e t a i l T r a d e . E d u c a t i o n a l I n s t i t u t i o n s . Agriculture. S e l f H e l p G r o u p s ( S H G ) . T r a i n i n g I n s t i t u t e s .

159. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s MPDA Market Promotion and Development Assistance Scheme https://msme.gov.in/sites/default/files/Khadi_MPDA_Guidelines.pdf In order to overcome the challenges faced by the entrepreneurs in promoting and marketing their khadi products, the Ministry of Micro, S m a l l a n d M e d i um E n t e r p r i s e s h a v e i m p l e m e n t e d ( M D A ) . Market Promotion and Development Assistance Scheme (MPDA) is a modified scheme of the MDA formulated and implemented by t h e K h a d i a n d V il l a g e I n d u s t r i e s C o m m i ss i o n ( K V I C ) .

160. G o v e rn m e n t R o l e – V a r i o u s S c h e m e s Objectives of MPDA: T o s u pp o r t t h e m a r k e t i n g d e v e l o p m e n t a c t i v i t i e s o f K h a d i entrepreneurs . T o p r o v i d e f i n a n c i a l a s s i s t a n c e a n d e q u a l d i s t r i b u t i o n o f s u b s i d y t o t h e k h a d i e n t r e p r e n e u r s . To enable market segmentation for Khadi and Village Industry products. To expand opportunities for Khadi and Village units in the national a n d i n t e r n a t i o n a l m a r k e t s .

161. G o v e rn m e n t R o l e – V a r i o u s S c h e m e s Objectives of MPDA: T o r e i n f o r c e m a r k e t i n g a c t i v i t i e s b y h o s t i n g a n d p a r t i c i p a t i n g i n exhibitions. To create demand for Khadi and Village Industry products. T o p r o m o t e t h e s c h e m e a n d t h e i n c e n t i v e o ff e r ed t o t h e e n t r e p r e n e u r s . T o e nh a n c e i n f r a s t r u c t u r e b y b u i l d i n g m o r e K h a d i P l a z a s .

162. Government R o l e – V a r i o u s S c h e m e s G u i d e li n e s o f M P D A : The producing institutions should submit their quarterly claims for the production achieved within 15 days of completion of the quarter, and it must be submitted through the Online MDA Processing System of KVIC. The claims that are not submitted within the stipulated time will be forfeited, and the assistance will then be given to other Khadi Institutions. Claims submitted to the State/Divisional Directors are processed daily, and a recommendation is later sent to the Directorate of K h a d i f o r t h e r e l e a s e o f s u b s i d y .

163. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s G u i d e li n e s o f M P D A : On examining the claims forwarded by the field offices, the Directorate of Khadi will advance the recommendations to the Directorate of Accounts within 7 working days. The Directorate of Accounts processes and releases the claims to the concerned institutes and entrepreneurs within 5 working days. T h e a ss i s t a n c e w il l b e c a l c u l a t e d a t 30 % o f t h e p r i m e c o s t

164. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s G u i d e li n e s o f M P D A : The prime cost for the calculation of assistance covers only the cost of raw materials and doesn’t include the establishment margin, t r a d e m a r g i n , i n s u r a n c e a n d b a n k i n t e r e s t . The Khadi Institutions applying for the assistance should submit the Utilisation Certificate (UC) rendered by the registered Chartered Accountant (CA). The registration number and address of the CAs s h o u l d b e m e n t i o n e d c l e a r l y i n t h e c e r t i f i c a t e .

165. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s B e n e f i t s o f M P D A : Production Institutions can indulge in activities that improve the production and quality of khadi products and also, To upgrade the existing technology and infrastructures T o s e t u p C o m m o n F a c il i t y C e n t e rs ( C F C s ) D e l e g a t e d e s i g n c o n s u l t a n t s t o b r i n g i n t h e l a t e s t d e s i g n s f r o m the fashion industry

166. Government Role – Various Schemes B e n e f i t s o f M P D A : Selling Institutions can make use of the assistance for their sales and promotional activities and for R e s t o r a t i o n o f s a l e s u n i t s Upgrading the outlets with the latest technologies that will increase the sales volume P a r t i c i p a t i n g i n n a t i o n a l a n d i n t e r n a t i o n a l f a i rs Employing experienced marketing professionals to promote and publicise the khadi products in digital and print media Increasing sales through different marketing channels such as e-commerce, franchisees etc. Promote Khadi products by offering them for discounted prices on occasion of national celebrations such as Gandhi Jayanthi, Independence day, Republic day etc. Training marketing and sales personnel with advanced marketing strategies

167. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s B e n e f i t s o f M P D A : The scheme benefits the entrepreneurs in, Initiating Aadhaar linked bank/post office account t h r o u g h w h i c h fu n d s a r e r o u t e d . Achieving targeted sales and increased production. To be engaged regularly with spinning, dyeing and weaving activities by the Khadi Institutions and not as a n ‘ o n - j o b ’ w o r k b a s i s .

168. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s Benefits of MPDA: Market Promotion The assistance is provided to the eligible entrepreneurs and the Khadi institutions to refurbish their sales outlet, construct more khadi p l a z a s , t o t a k e p a r t i n t h e I n t e r n a t i o n a l T r a d e F a i r s and establish connections with international buyers and sellers. While participating in the fair, the claim for the space rent, airfare and duty a ll o w a n c e s c a n b e o b t a i n e d un d e r t h e s c h e m e .

169. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s SFURTI https://sfurti.msme.gov.in/SFURTI/Home.aspx SFURTI is Scheme of Fund for Regeneration of Traditional Industries . SFURTI scheme was launched in 2005 by the Indian government’s Ministry of MSME to promote the development of clusters in India. The main motive of the SFURTI scheme is to ensure that the various traditional clusters of industries spread throughout the country of India are met with amenities and benefits that help them become more competitive in the industry and gain larger revenue in profits.

170. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s SFURTI The scheme targets several important sectors such as the bamboo industry, honey industry, and khadi industry . This assists traditional artisans, local workers, and local entrepreneurs by supporting their b u s i n e ss s u b s t a n t i a ll y .

171. Government Role – Various Schemes Objectives of SFURTI: Organizing the various clusters of traditional industry workers and artisans to ensure they are competitive and facilitate support and assistance for their livelihood. Providing economically sustained employment for the industry’s various workers, local business heads, and rural artisans. Advancing and enhancing the market value and advertising value of products provided by local clusters . This is done by providing economic and financial support for the worker or artisan’s new products, intervening in the design process and remedying it, improving the packaging of the product, and ensuring a sound marketing plan for the product.

172. Government Role – Various Schemes B e n e f i t s o f S F U R T I : The scheme helps the local and traditional artisans of the rural parts of India in the various associated clusters to improve their skills and manufacturing capabilities so that they achieve better employment and economic success. This is done via special training and several exposure visits. The SFURTI scheme initiates actual provisions for facilities as well as centers. It provides an improved set of equipment tools to artisans and workers to improve their product and service quality. Indirectly, the scheme ensures maximum utilization for various facilities available at an artisan’s disposal.

173. Government Role – Various Schemes B e n e f i t s o f S F U R T I : The system governing the clusters has active participation of its stakeholders. These stakeholders actively look for market opportunities in these clusters, which in turn ensures the economic growth of the respective clusters. The scheme helps generate cluster-based industries in the sub-divisional regions of a district. This helps local workers and rural artisans create helpful and innovative skills that help them create new business plans, improve the technologies involved, upgrade the level of processes, and give the workers a sense of market intelligence that helps them create n e w m a r k e t i n g p a r t n e r s h i p s .

174. Government Role – Various Schemes B e n e f i t s o f S F U R T I : The scheme helps create an economically sustainable business ecosystem that supplies a wide array of products featuring an integrated value chain of its own. The scheme also has a market catering approach to creating products and services that ensure the longevity of the cluster- based industries. The scheme ensures the integration of the various artisans and workers in the clusters to form united operations and business formations that f a c il i t a t e a t o t a l g r o w t h o f t h e r e g i o n a s a w h o l e .

175. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s B e n e f i t s o f S F U R T I : The scheme helps artisans and workers create and market products that target the actual current consumer market and serve their needs. This helps them organize their otherwise disorganized product lines into a cumulative product line that is unified with the cluster’s total artisan force t o c r e a t e p r o d u c t s w i t h m a x i m u m v a l u e . The scheme recognizes E-commerce as one of the best business channels for business growth and marketing for pitching the business and products of local artisans to a wider market. The scheme devises a meticulous plan especially to ensure that the local artisans have their products and services become well-known and reputed in the online s p a c e o f t h e E - c o m m e r c e i n d u s t r y .

176. G o v e r n m e n t R o l e – V a r i o u s S c h e m e s Industries are Covered by the SFURTI Scheme? Artisans A r t i s a n g u il d s c o o p e r a t i v e s Workers R a w m a t e r i a l p r o v i d e r s L o c a l e n t r e p r e n e u r s P D S p r o v i d e r s S e l f - H e l p G r o u p s ( S H G s ) M a c h i n e r y m a k e r s

177. Role of MSDE The Ministry of Skill Development & Entrepreneurship is responsible for co-ordination of all Skill Development efforts across the country , removal of disconnect between demand and supply of skilled manpower , building the vocational and technical training framework, skill up-gradation, building of new skills and innovative thinking not only for existing jobs but also jobs that are to be created. The Ministry aims to skill on a large scale with speed and high standards in order to achieve it's vision of a 'Skilled India'. https:// www.msde.gov.in/

178. Schemes of MSDE PMKVY Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE) implemented by N a t i o n a l S k il l D e v e l o p m e n t C o r p o r a t i o n . The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant skill training that will help them in s e c u r i n g a b e tt e r li v e l i h oo d .

179. Schemes of MSDE Key Features of PMKVY: Standards : The training will be done as per the standards (National Occupational Standards - NOS and Qualification Packs - QPs for specific job roles) that have been formulated by industry-driven bodies, namely t h e S e c t o r S k i ll s C o u n c i l s ( SS C s ) . Demand-driven targets: Based on the assessment of skill demand and the ‘Skill Gap Studies’, target for skill training would be allocated to sector skill councils by NSDC in consultation with the SSCs, States/UTs and the C e n t r a l M i n i s t r i e s / D e p a r t m e n t s u n d e r t h e o v e r s i g h t o f t h e S t ee r i n g C o m m i t t e e o f P M K V Y .

180. Schemes of MSDE Key Features of PMKVY: Target aligned to national flagship programmes and regions: Target for skill training will be aligned to the demand from the Central Government’s flagship programmes like the ‘Make in India’ ‘Swachh Bharat’, ‘Digital India’, ‘ N a t i o n a l S o l a r M i s s i o n ’ , a n d s o o n . Evaluation: Trainee feedback based on validated standard format verified at the time of assessment will become the key element of the evaluation framework to assess the effectiveness and scale-up of PMKVY in future. Grievance redressal: A proper grievance redressal mechanism will be put in place. Online Citizen’s Portal would be set up to disseminate information about PMKVY, and serve as a platform for redressal of grievances.

181. Schemes of MSDE SANKALP Skill Acquisition and Knowledge Awareness for Livelihood Promotion (“SANKALP”) is a programme of the Ministry of Skill Development with loan a ss i s t a n c e f r o m t h e W o r l d B a n k . It aims to improve short term skill training qualitatively and quantitatively through strengthening institutions, bring in better market connectivity and inclusion of marginalised sections of the society. SANKALP was launched on 19th January 2018 and has a tenure till March 2023. https://sankalp.msde.gov.in/#/web/web-home

182. Schemes of MSDE Sankalp scheme focuses on three main outcomes: institutional strengthening at the national, state, and d i s t r i c t l e v e l s ; q u a li t y a s s u r a n c e o f s k i l l de v e l o p m e n t p r o g r a m s ; and i n c l u s i o n o f m a r g i n a l i s e d p o p u l a t i o n s i n s k il l de v e l o p m e n t p r o g r a m s .

183. Schemes of MSDE Features of SANKALP: It has a certification organization that will assess the trainees’ c o m p e t e n c e t o s e t a s t a n d a r d f o r t h e s c h e m e . Because the plan will be overseen by a regulatory authority, it is e x p e c t e d t o r e i n f o r c e t h e n a t i o n a l a r c h i t e c t u r e . A national accrediting board will be developed to supervise the training activities and centers in order to give the program a standard. A research division will also be established to develop a team of researchers and thinkers.

184. Schemes of MSDE Features of SANKALP: The impartial research team will assess the skill’s efficiency as well as the labor market trend. The scheme’s framework has been universalized to m a k e i t m o r e a d a p t a b l e . The labor market’s information system is taken into account to make the plan functional. The skill development management will aid in the scheme’s ecosystem management. A platform named Kushal Mart was created to make the plan more effective. The platform will facilitate the e x c h a n g e o f s k i ll s , a ll o w i n g w o r k e r s t o b e n e f i t f r o m t h e s c h e m e .

185. Schemes of MSDE Features of SANKALP: A site has been established to track the training program’s operations. Takshila-National Portal is the name of the portal. The trainers use the site to keep track of the regular activities that take place in the training centers. The training institution must build capacity in order to develop entrepreneurship. This stage will provide funding to aspiring trainees so that they can concentrate on their training and create a profession. The initiative will address the issue of a shortage of qualified trainers, and t h e n o n - o p e r a t i o n a l i n s t i t u t i o n w il l r e o p e n .

186. Schemes of MSDE Features of SANKALP: The initiative would offer people with training to help them find work in other countries, and India International Skill Centers will be developed to help them do so. The initiative is being implemented in 16 facilities, and many trainees have been placed in foreign countries. In phase II of the project, the government is attempting to create 66 more facilities. The International Awarding Body will oversee the centers a s p a r t o f t h e s y s t e m .

187. Schemes of MSDE STAR Launched by the Ministry of Skill Development and Entrepreneurship , the main aim of the Standard Training Assessment & Reward (STAR) scheme is to encourage skill development among the youth. Under the scheme, monetary rewards are provided in case individuals successfully complete the approved training programmes.

188. Schemes of MSDE F e a t u r e s o f S T A R S c h e m e Implementation of the scheme is done via Public-Public and Public- Private partnerships. On completion of the programme, a STAR certificate will be provided by the Government of India. The certificate will be valid across India. On completion of the programme, incentives worth approximately Rs.10 lakh will be provided within one year from the date the scheme was launched.

189. Schemes of MSDE N a t u r e o f A ss i s t a n c e un d e r S T A R S c h e m e : Training bodies and assessment for all details of the scheme will be different. Therefore, there will be no overlap in the roles. The main aim of t h i s m o v e i s t o e n s u r e o b j e c t i v i t y a n d t r a n s p a r e n c y . Consideration will be provided to backward sections that are not financially sound. The Ministry of Finance, Government of India, will provide the monetary reward for the scheme . The reward will be provided via direct bank t r a n s f e r i n t o t h e a c c o u n t o f t h e b e n e f i c i a r y .

190. Schemes of MSDE E li g i b ili t y o f S T A R S c h e m e Only individuals who avail the skill development programme from an e li g i b l e p r o v i d e r c a n a v a i l t h e s c h e m e . In case the training provider does not have any previous affiliation with any NSDC or government institution, they must go through a pre- screening procedure. The pre-screening procedure will be as per an Affiliation Protocol that has been prepared by the NSDC. The individual must have completed 10th Class and must be at least 18 years old.

191. Financing Mix & Financing Continuum Shareholding Financing mix is the combination of the debt and equity structure of a company. It can also be referred to as the way a corporation finances its assets through some combination of equity, debt or hybrid securities ; that is the combination of both equity and debt.

192. Funding Continuum Creating a funding strategy is a challenging, yet crucial step for any business. Most experts agree that the key to a successful financing plan is understanding the different sources of funding , and pursuing those that are applicable to the company’s stage of growth.

193. Funding Continuum

194. C li ff – V e s t i n g S c h e d u l e Cliff vesting is a specified point of time or date when the employee becomes fully vested i.e. gains the right to receive full benefit from a r e t i r e m e n t p l a n , p r o v i d e d b y t h e e m p l o y e r s . It is different from normal vesting because normal vesting happens incrementally over time, while in cliff vesting employee becomes fully v e s t e d a t a s p e c i f i e d d a t e . Vesting is the legal term for having full entitlement or legal rights over b e n e f i t s p r o v i d e d b y e m p l o y e r s .

195. C li ff – V e s t i n g S c h e d u l e In most cases, vesting increases gradually over time, i.e., employee’s entitlement to the share of benefit plan will increase gradually over the period of time. While in cliff vesting, employees will have to complete a specified period of time in the organization to become fully vested and then will receive the employer’s contribution in the benefit according to a pre-defined schedule. It is preferred by employers as they think it as a way to retain employees in the organization at least for a specified period of time. They also use this type of vesting to incentivize and retain hard-working or important employees.

196. C li ff – V e s t i n g S c h e d u l e Types of Cliff Vesting Options: Time-Based In a time-based schedule, employee’s entitlement to an employer’s benefit will increase gradually over time, but the employee will have to spend a specified time say one year in the organization to receive any benefit at all.

197. C li ff – V e s t i n g S c h e d u l e Types of Cliff Vesting Options: Milestone-Based In a milestone-based schedule, employees are asked to achieve a specific business goal or complete a project, after which they become entitled to r e c e i v e f u l l b e n e f i t s f r o m t h e e m p l o y e r b e n e f i t p l a n .

198. C li ff – V e s t i n g S c h e d u l e Types of Cliff Vesting Options: Hybrid or Mix-Off In a Hybrid or mix off vesting schedule, the employee will have to complete a specified period of time as well as achieve a business goal or milestone to become fully vested to receive an employer’s contribution to benefit plan.

199. C li ff – V e s t i n g S c h e d u l e I m p o rt a n c e o f C li ff – V e s t i n g : Employers incentivize employees who add value to the organization through cliff vesting and help them become part-owner of the company. This embeds the environment of loyalty and reduces attrition in the organization. It also helps employers to vest or understand the value of the employee b e f o r e t h e y b e c o m e f u l l y v e s t e d . Where the cliff period is attached to the completion of the business goal, it encourages the employee to perform better as well as helps in the g r o w t h o f t h e o r g a n i z a t i o n a t t h e s a m e t i m e .

200. The Pitch for investor presentation 1. An attention-grabbing introduction Make investors pay attention by telling a story.

201. The Pitch for investor presentation 2 . A c l e a r v i s i o n o f a w o r l d w i t h y o u r c o m p a n y Your job is to show investors how your company will improve lives.

202. The Pitch for investor presentation 3. A solid plan to achieve your vision Every entrepreneur says he/she only needs to capture two percent of t h e m a r k e t . O k a y , t h a t ' s g r e a t , b u t i nv e s t o r s c a r e m o r e a b o u t h o w y o u are going to achieve that milestone. Your pitch should focus on the execution that makes your idea a sound investment. Show investors you have a legitimate plan to maximize the opportunity by proving an actionable plan.

203. The Pitch for investor presentation 4 . A c l e a r e x i t s tr a t e g y W h il e i t m a y b e l o o k e d d o w n u p o n i n t h e w o r l d o f s t a r t u p s t o b e thinking about exit strategy, that is not the case when you are pitching to investors. They want to see return and an exit strategy provides just that. A b i ll i o n - d o l l a r e x e c u t i o n p l a n a l o n e w o n ’ t c o nv i n c e i nv e s t o r s o f y o u r business’s potential to make them money. You must communicate a strategy for what will happen after you build it, including who will buy it. Make sure before you get in front of investors you research similar deals a n d h o w m u c h t h e y e a r n e d .

204. The Pitch for investor presentation 5 . B e p r e p a r e d a n d r e m a i n e n g a g i n g Y o u r s t a g e p r e s e n c e m a k e s i nv e s t o r s r e m e m b e r y o u , s o t r a i n y o u r voice. Perfect your carriage, confidence, passion and projection, yet, don't sound too stiff or scripted . One way to make sure you are prepared is to videotape yourself and watch the play-by-play to refine y o u r b o d y l a n g u a g e a n d d e l i v e r y . Once you are in a room full of investors, try to hold an individual’s eyes in the audience until you get a reaction from the person, then shift your gaze to another person. This creates a connection with the audience.

205. Elements of perfect investment pitch Grab their attention with a catchy cover slide! It should be pleasing to the eye and demonstrate what you are pitching. Get your p o t e n t i a l i n v e s t o r s i n t e r e s t e d f r o m t h e s t a r t ! ! Do an overview of your company! Have an elevator pitch that c o n v e y s c l a r i ty a n d p a ss i o n . Define the problem! What exactly is the problem that your company can solve with your product? What made you think of your product? Tell your story passionately so that your potential i n v e s t o r s w il l W A N T t o i n v e s t !

206. Elements of perfect investment pitch Show your solution! How is your company going to solve the problem at-hand in a way that no one else has tried? Be persuasive – y o u r p r o d u c t I S t h e s o l u t i o n a n d Y O U t h o u g h t o f i t ! ! Address who your customer is! Who will you be helping? Identify t h o s e w h o W I L L b u y y o u r p r o d u c t . Differentiate yourself from competitors! Sell yourself – show that you know everything there is to know about the industry you are breaking into and that YOUR product will be 10 TIMES BETTER than a n y c o m p e t i t o r i n t h e m a r k e t n o w .

207. U N I T - I V E N T R E P R E N E U R I A L LEADERSHIP

208. B u il d i n g & M a n a g i n g t h e f o un d e r team E s t a b li s h c o r e l e a d e r s h i p Emphasize director-level diversity Champion open communication and collaboration Do actual team-building exercises K n o w w h e n i t ’ s t i m e t o b r i n g o n a C E O

209. B u il d i n g & M a n a g i n g t h e f o un d e r team Important Factors while building a founding team: H o m o p h i l y / S i m i l a r i t y F u n c t i o n a l i t y / S k i l l d i v e r s i t y C u lt u r a l b i a s Social constraints / Network constraints E c o l o g i c a l / G e o g r a p h i c a l c o n s t r a i n t s

210. B u il d i n g & M a n a g i n g t h e f o un d e r team Elements of Founder Team B o a r d o f D i r e c t o r s B o a r d o f A d v i s o r s Management Team K e y E m p l o y ee s O t h e r P r o f e ss i o n a l s L e n d e r s & I n v e s t o r s

211. A t t r a c t i n g & R e t a i n i n g t h e R i g h t People 1. Know your company’s mission and values Identify the most important skills and values for your company. Then fill positions around those needs instead of just hiring one employee to r e p l a c e a n o t h e r . “Employees feel more engaged and are more likely to flourish when their values are aligned w i t h t h o s e o f t h e i r e m p l o y e r . ”

212. A t t r a c t i n g & R e t a i n i n g t h e R i g h t People 2. Build an employee-focused culture Consider what you can offer employees. Employees value work-life balance . They appreciate it when you offer flexible work schedules , for instance. Candidates and employees also appreciate career opportunities like on-the-job training and potential promotions . Today’s workers want to feel valued , too. Show your appreciation for them through employee-recognition programs, performance bonuses and comfortable work environments . Help them unwind as well. Activities like group yoga, friendly athletic competitions, and regular team-building activities outside the office p r o v i d e w e l c o m e b r e a k s . “A sense of rejuvenation and freedom is very crucial, or else it would become a traditional workplace of 9-5. In short, get away from the conventional working standards ,”

213. A t t r a c t i n g & R e t a i n i n g t h e R i g h t People 3 . I n v o l v e e m p l o y ee s i n r e c r u i t i n g Happy employees usually stay longer . They also help you attract top talent by showing the best potential hires that they also could be happy at y o u r b u s i n e ss . Referral incentives also encourage your employees to help you attract top talent. Consider rewards like gift cards, cash bonuses or extra time off .

214. A t t r a c t i n g & R e t a i n i n g t h e R i g h t People 4. Get out and meet people Meeting a potential hire in person is still the best way to establish a fit between them and your company. But it can be even better if you meet them before they apply for a position . They will be more likely to want to work with you in the future if they know the opportunity y o u o ff e r i n a d v a n c e . “ Tapping into a specific talent pool can yield great results-especially from candidates who aren't actively pursuing opportunities.” Campus recruiting also can provide a pipeline for future talent. Connect with candidates by attending job fairs, sponsoring events a n d p r o v i d i n g i n t e r n s h i p s , f o r e x a m p l e .

215. A t t r a c t i n g & R e t a i n i n g t h e R i g h t People 5 . C o n n e c t o n li n e Social media is a good place for business professionals to search and to be found. You can use keywords like job titles on LinkedIn to find candidates with the experience and skills you want. Then you can contact them directly to see if they would be interested in working for you. You also can attract top talent by sharing lots of information about your company , such as recruiting videos, photos from company events and testimonials from employees . Show what differentiates your company a n d m a k e s i t a g r e a t p l a c e t o w o r k . “ T h r o u g h s o c i a l m e d i a , c o m p a n i e s c a n n o w c o nn e c t w i t h c a n d i d a t e s i n ways that weren’t possible with traditional recruitment methods.” Post company announcements and industry news on social media pages to reach our customers — these updates are an organic way to attract p o t e n t i a l e m p l o y ee s , t oo . ”

216. A t t r a c t i n g & R e t a i n i n g t h e R i g h t People R e t a i n i n g t h e R i g h t P e o p l e : Leadership C a r ee r G r o w t h M i s s i o n & P u r p o s e C r e a t i v e T h i n k i n g G i v i n g B a c k P r o b l e m S o l v i n g P r o f e s s i o n a l D e v e l o p m e n t R e c o g n i t i o n & R e w a r d

217. B o a r d & G o v e r n a n c e V i s i o n : e n v i s i o n i n g f u t u r e & de v e l o p i n g m i s s i o n D i r e c t i o n : s e t t i n g g o a l s & p o li c i e s effective T r a n s p a r e n c y : i n f o r m a t i o n s h a r i n g , c o mm u n i c a ti o n & r e p o r t i n g G u i d a n c e : p r o v i d i n g a d v i c e & d i r e c t i o n D u e d ili g e n c e : j u d g i n g r i s k s i n v o l v e d C o mm i t m e n t : e m o t i o n a l & i n t e l l e c t u a l engagement in venture’s course of action.

218. Role of Successful Board F i n a n c i a l : o v e r s e e i n g f i n a n c i a l r e s u lt s , j u d g i n g forecasts, ensuring availability of lines of funding, fair allocation of earnings, financial security. V i s i o n a r y : d o i n g t h e r i g h t t h i n g s , p r o v i d i n g insight, vision & focus for strategic objectives, bring ideas with experience to assist in strategy implementation. Reinforcement: skill strengthening of board and s t a f f , p r i o r i t i z i n g t h e c h o i c e s , w a t c h i n g o v e r c o m p e n s a t i o n , a u t h o r i t y & r e s p o n s i b i l i t y .

219. Different Board Models for Different Ventures

220. D i ff e r e n t B o a r d M o d e ls f o r D i ff e r e n t Ventures Operational Board: manages and governs Management Board: management & governance functions separates at maturity stage of venture For-Profit Board: proven forms of governance & regulations, friends of CEO, experts or specialists NPO Board Social Enterprise Board: ensures venture is properly f un d e d t il l s u r p l u s i s a v a il a b l e f o r s o c i a l p u r p o s e

221. How to assemble board of advisors Have a purpose R e c r u i t d o u b t e r s Leverage the network W r i t e i t d o w n T i m e i s m o n e y K ee p i t i n t i m a t e Ma x i m i z e v a l u e Maintain ongoing communication

222. Legal Matters Organizational Forms  S o l e p r o p r i e t o r s h i p  Partnership  J o i n t S t o c k c o m p a n y  Co-operative Organization

223. D o c u m e n t s R e q u i r e d f o r s t a r t i n g a business P e r m a n e n t A cc o u n t N u m b e r ( P A N ) T a x A cc o u n t N u m b e r ( T A N ) D i g i t a l S i g n a t u r e C e r ti f i c a t e D i r e c t o r I n f o r m a t i o n N u m b e r ( D I N ) R e g i s t e r e d B u s i n e ss N a m e M O A & A O A C e r t i f i c a t e o f I n c o r p o r a t i o n R e g i s t r a t i o n o f t h e E s t a b l i s h m e n t

224. Types of Taxes I n c o m e T a x P r o f e s s i o n T a x Corporation Tax Capital gain Tax E x c i s e D u t y C u s t o m D u t y G o o d s & S e r v i c e T a x ( G S T )

225. Legal Expenses A d v e r t i s i n g & P r o m o t i o n B o rr o w i n g C o s t s E m p l o y ee E x pe n s e s E q u i p m e n t & S u pp li e s I n s u r a n c e , L i c e n s e & P e r m i t F ee s R e s e a r c h E x pe n s e s Technological Expenses

226. E m p l o y e e M a n a g e m e n t & L e a d e r s h i p i n the workforce Good workplace leadership & management to encourage goal achievement E ff e c t i v e l e a d e r s h i p t o d r a w a b ili t y o f e m p l o y ee s t o h e l p a c h i e v e t h e i r o b j e c t i v e s Facilitates participation, engagement, growth & retention E m p l o y ee i n v o l v e m e n t & e m p o w e r m e n t Allow employee to take control of their job and outcomes Help employee to serve customer for customer experience

227. R e c r u i t i n g , S e l e c t i o n & H i r i n g Recruitment Process R e c r u i t m e n t P l a nn i n g I de n t i f y r e c r u i t m e n t s o u r c e s C o n t a c ti n g s o u r c e s Ap p l i c a t i o n P oo l S e l e c ti o n P r o c e ss E v a l u a t i o n & C o n t r o l

228. R e c r u i t i n g , S e l e c t i o n & H i r i n g Selection Process S c r e e n i n g o f A p p l i c a n t s S e l e c ti o n T e s t s Interviews Medical Examination Reference Check & Background Verification H i r i n g D e c i s i o n s o r A p p r o v a l b y A p p r o p r i a t e Authority

229. H i r i n g t h e F i r s t E m p l o y e e P r e p a r e f o r t h e H i r i n g P r o c e ss : Decide what one can afford T a k e c a r e o f t h e l e g a l o b l i g a t i o n s A tt r a c t t h e R i g h t A pp li c a n t s : I m a g i n e t h e i d e a l c a n d i d a t e C r e a t e a c o m p e l li n g j o b de s c r i p t i o n

230. H i r i n g t h e F i r s t E m p l o y e e I d e n t i f y t h e t op c a n d i d a t e s : C o n d u c t p r e - e m p l o y m e n t s c r ee n i n g I n t e r v i e w p r o m i s i n g a p p l i c a n t s C h e c k t h e c a n d i d a t e s r e f e r e n c e s B r i n g i d e a l c a n d i d a t e o n b o a r d : S e n d a n o f f e r l e tt e r W e l c o m e n e w h i r e t o t h e t e a m

231. U N I T - V B U S I N E S S PLAN

232. N ee d & O b j e c t i v e s For identifying opportunities F o r e v a l u a t i n g p e r f o r m a n c e F o r g a u g i n g s t r a t e g i e s F o r o b t a i n i n g F i n a n c e

233. Business Plan as an Entrepreneurial Tool A tt r a c t s m o n e y t o p r o j e c t Communicates master plan to team members R e s o u r c e p l a nn i n g S e tt i n g b u dge t s A n a l y z i n g i de a s P r o v i d i n g S W O T a n a l y s i s Increases opportunity for success I n c r e a s e s t h e s t a k e h o l de r ’ s c o n f i de n c e I de n t i f i e s b a r r i e r s t o b u s i n e ss Performance tool

234. S e c t i o n s o f a B u s i n e s s P l a n Ex e c u ti v e S u m m a r y I n d u s t r y O v e r v i e w M a r k e t A n a l y s i s & C o m p e t i t i o n S a l e s & M a r k e ti n g P l a n M a n a g e m e n t P l a n O p e r a ti n g P l a n F i n a n c i a l P l a n Ap p e n d i c e s & E x h i b i t s

235. Contents of Business Plan C o v e r p a g e T a b l e o f c o n t e n t s E x e c u t i v e s u m m a r y T a r g e t A u d i e n c e C u rr e n t s i t u a t i o n D e s c r i p t i o n o f o p p o r t un i t y & m a r k e t B u s i n e ss M o d e l F i n a n c i n g y o u r v e n t u r e R i s k A n a ly s i s P o ss i b l e e x i t s t r a t e g i e s C o n c l u s i o n & A p p e n d i c e s