5 Stages of startup funding

For the past decade, India has seen a gradual development in the startup culture. Because of this entrepreneurial culture, India now boasts the world’s third-largest startup ecosystem, trailing only the United States and the United Kingdom.

Often, the minds behind these firms are either recent grads from schools and universities or someone who left a corporate position to follow their goal. Funding a company is a challenging endeavour for anyone. Many people try to fund their ideas on their own, while others seek external funding to meet their demands. Acquiring financing for a business in the Indian market is possible through a fundraising process that includes many stages of startup funding.

You need funding to keep the power on, the staff happy, and the pace moving no matter where you are in the startup journey. Raising capital may not have been your ideal when you first started the firm, but your capacity to do so will influence how far it can go. Understanding the various demands at each step of fundraising will give you the confidence to approach investors with a clear roadmap to what you will both receive out of the exchange. The five phases listed below will help you get started.

Stage 1: Pre-seed Funding

This is the initial stage of the fundraising process, sometimes known as the bootstrapping stage. This stage mostly entails the company owners utilising their own funds or borrowing from relatives and friends.

This level of funding is for the startup’s early stages when it has most likely not yet begun operations. The idea and its practicality are just being examined in the market testing stage. The expenditures would include cash for producing the prototype, planning a product launch strategy, and brainstorming ideas for different marketing and sales operations.

This early stage of seed funding is so soon that it is not often regarded as an initial investment phase. During this stage of a company, proprietors may need to stay on the job longer than required or acquire a second line of employment to supplement their income. At this moment, they normally operate with a fairly small staff.

      2: Phase of Seed Funding

“Seed Funding” is the initial step of startup grants. Almost 29 percent of new businesses fail due to a lack of funding when bootstrapping, which is the essential starting capital for launching and managing a firm.

Understand the seed funding stage to be analogous to planting a tree. In an ideal world, the underlying Funding would be the “seed” that would allow each firm to develop. When you supply enough water, for example, a lucrative commercial method, near to the dedication of the company visionary, the startup will grow into a “tree.”

3: Funding from Angel Investors

As your startup’s demands grow and you need to scale or boost funds for product design, marketing, or just expanding your staff to keep the momentum going, you may turn to angel investors for help. If your firm is currently raising funds, your conceptual framework should be validated.

According to the SEC, eligible angel investors are persons having a net value of at least one million dollars and an annual income of at least two hundred thousand dollars alone or three hundred thousand dollars jointly with a spouse.

Angels vary from other investing organisations such as venture capital companies in that they use their own funds and should be considered as such when seeking funding. They might invest individually or as part of a group. Investors will also demand a convincing and well-researched proposal because the money raised at this level might be much more than in the seed round.

4: The Venture Capital stage

Regardless of how their firm is going, the majority of businesses choose this startup funding stage. This method of generating cash entails many funding rounds or a series that is followed. Series A, B, C, and D are included. Each round, the business raises more money and improves its valuation.

  • Arrangement A phase

This is the initial round of funding in the venture capital stage. At this time, the firm should have developed a product or service and established a client base with a consistent revenue stream.

The funds generated should be used to generate income. This is an excellent opportunity for new businesses to grow in a variety of areas. Venture capital firms, angel investors, and even equity crowdsourcing provide investment at this level. In this round, funding is often provided by a single significant investor, who is then followed by the other investors.

It is critical to establish a long-term benefit agreement in the Series A grant round. This is a critical phase because many firms fail to acquire series A finance even after receiving seed capital. According to one survey, only roughly 46% of firms proceed with the following round of fundraising after receiving seed money.

  • Phase B of the arrangement

This startup discovery stage is the business’s development stage, in which not only the product or service is extended, but also the company’s client base, workers, and management staff. Speculators assist new organisations in broadening their perspectives by funding their market to conduct out exercises, extending their share of the sector in general, and constructing operational groupings such as advertising, company improvement, and client acquisition.

The Funding stage of agreement B enables new firms to flourish with the goal of satisfying the diverse demands of their clients while also competing in competitive marketplaces.

  • Arrangement C Funding Phase

New enterprises that reach stage C must be on the development route. These new businesses are searching for more investments to assist them to generate new goods, entering new markets, and even ensuring that others do not match the standards of comparable new company transactions. They may even consider acquiring other fresh underperforming firms.

Investors at this point understand that the firm is doing well and that the odds of it failing as a business are low. After this stage, firms have three options: go for round D of funding, start planning for an IPO, or not raise funds at all. C is the final round of funding for many firms.

  • Arrangement D Funding and beyond

Very few businesses see the need to proceed to this level, and those that do choose to proceed to this step do so for one of two reasons. The first explanation may be that the firm has discovered a fresh potential and wants to work on it before coming public.

Otherwise, the firm may want to remain private for a while longer before becoming public. Another reason for the firm to pursue this level of funding might be that they have failed to meet the goals that were set. This is a negative reason, often known as the ‘down round.’ It becomes tough to escape from this when the company’s stocks depreciate, and it is difficult to obtain funding in the following stage.

5: The First sale of shares (IPO)

The IPO, or Initial Public Offering, is the first time a corporation decides to sell corporate stock to the general public. This is the final round of startup funding, and it assists the business in growing and expanding.

IPOs, on the other hand, might be dangerous because the public has no idea how the shares will move in the market. On the other side, the firm may do really well, in which case investors could benefit significantly.


The many levels of startup funding in India enable entrepreneurs to expand their businesses at every step of their entrepreneurial journey. This sizing technique enables them to identify where their firm fits and which possible financial experts would invest resources in their company to help it grow and thrive.

Numerous startup entrepreneurs leave after opening their doors to the rest of the world, so bear in mind that in order to acquire funding, new firms must grow large enough to match all of the standards for a certain grant cycle. By calculating total assets, one may determine where their startup stands and then make a decision.


Which social media platforms do I use for my business?

There is no doubt that social media is an essential marketing tool for any company that wants to stay current and visible. In fact, 88 percent of marketers think social media has enabled them to boost exposure, while 77 percent say it has helped them generate traffic. This implies that if you’re not making use of social media to its maximum potential, you’re passing up a major opportunity.

However, getting started may be challenging, and even seemingly simple tasks like selecting a social network might be more sophisticated than you think. There are several social networks to choose from, and developing a plan might be difficult. However, the fact of the matter is that you may begin by limiting your search to the most prominent and extensively utilised platforms.

There is no simple answer to which social media platforms to use for business. The optimal platform is determined by the aims of your company, as well as the products and services it offers. You should also consider what target group you want to market your brand to, as well as how the network works and how it is effectively used.

Depending on the version and the depth of your interaction, social media marketing might take a significant amount of time. Different social media platforms can be tailored to specific types of information, functions, events, or people groupings. Understanding various platforms is required before selecting which one or more are best for you.

Narrowing the options to a few networks will help you to concentrate your actions and obtain the most impact on your time and effort. So, how do you pick the finest social networking platform for your company? Let’s narrow down the choices:

1) Identify the Target Groups:

Understand your average customer, their age, gender and other socio-economic factors about them. What are their needs and how can your product help them fulfil them efficiently? You need to be as thorough as possible as it will predict future outcomes. Use the responses to these questions to help you create a profile of your core demographic.

2) Define the goals:

Once you’ve identified your target audience, you’ll need to set goals for them. As an entrepreneur, your primary aim will almost certainly be to increase sales by engaging clients; but, there are other innovative goals for social media platforms. While some companies use social media to increase brand awareness and build positive connections with customers, others utilise it for customer assistance.

Netflix, for example, employs the Twitter account @Netflixhelps to address customer care difficulties. It allows happy consumers to promote their business while freeing them up from having to talk to them and wasting their time. When developing your social media objectives, make a list of both common and uncommon ways social media might benefit your company.

3) Decide on the content:

Different sorts of content perform better with different social media platforms, so it’s critical that you thoroughly assess the type of content you want to generate and share that would work best with your business.

Because Instagram is centred on images, it might not be the best place to post long content. The sort of content you publish will be determined by various factors, like your sector, brand, and key demographic.

Options available:

1) Facebook for business:

Facebook for Business: That’s the biggest platform at the moment, with over 2.89 billion users worldwide, with India and the United States leading the way in terms of nation use. Facebook is excellent for customer acquisition, and its advertising network allows for highly tailored targeting of certain populations.

Unless your company caters solely to older adults, Facebook should be a component of your social media plan due to the large number of individuals who use it. You may post videos to Facebook, share blog links, message people who have customer care issues, promote your business, and obtain online evaluations.

Facebook also has strong search engine features. According to Search Engine Watch, over 1.5 billion search results for local companies, services, and goods are conducted on Facebook every day. That equates to almost 40% of all Google searches, which is rather big. Because Facebook is used by a large portion of your target demographic, your firm should have a representation there.

2) Twitter:

Twitter is a wonderful medium for increasing brand recognition. Twitter makes use of the hashtag to arrange discussions around a string of words. You can discover what others are discussing by looking up hashtags, and then structure your tweets to participate in popular topics. Twitter is frequently utilised by news sources to identify articles since it provides insight into what subjects are trending. Many companies mix Twitter with offline interaction, such as events, because Twitter is frequently used to offer real-time information to an audience.

3) YouTube:
Although YouTube has 2.3 billion users, its impact stretches much beyond that figure. To see material on YouTube, you do not need to sign up as a user. As an outcome, YouTube has grown to become one of the most popular search engine networks. A large portion of these queries is for “How To” videos. This platform works effectively for service industry organisations that can provide this sort of content, as well as leisure and instructional videos.

4) Instagram:

Instagram is one of the most rapidly developing platforms, particularly among young people. Instagram, like Pinterest, depends on photographs or videos to spark debate. As a consequence, this platform is ideal for visual enterprises such as art, cuisine, retail, and beauty. Because it is a newer site, it has less noise than Facebook. This implies that the platform can help you generate leads since your reach is greater.

When you have a defined marketing and social media plan, you can utilise social media to promote your brand and expand your market reach. It may also assist you in attracting consumers, gathering client feedback, and developing customer loyalty.

You may require more resources to manage your internet presence, and you risk receiving bad criticism that must be handled. Whatever the dangers, having a social media strategy in place and pre-planning your policies and procedures may help you manage them and reap the benefits.

Online payment processors for small business owners

People have been urged to use contactless payments as a result of the worldwide epidemic. To accommodate client demand, various sorts of organisations are implementing online payment processing systems in their operations.
Aside from that, the government has promoted digital payments under the ‘Digital India initiative.’ The Finance Minister suggested an INR 1,500 Cr initiative to boost digital transactions in the country in the Union Budget 2021. The measure is intended to increase the use of digital payment methods.

There are still various sorts of payment gateways accessible for eCommerce enterprises. Different types of gates may have their own set of advantages and disadvantages. Choose one that is most suited to the demands of your site to ensure a seamless eCommerce operation. It is strongly advised to use an online payment gateway that supports several currencies, as well as fraud prevention and safe transactions. Check the company’s technological concerns as well, and ensure that it is suitable with your website technology.

Adopting online payments:

There are several small company payment processing solutions available, each with its own set of advantages:

    1. Customer happiness leads to increased sales, and today’s customers prefer digital payment methods.
    2. There are no cash management issues because payments are received immediately into the bank account.
    3. This also allows for faster payment processing in the bank account, making transactions easier.
    4. Secured transactions as a result of the payment processing techniques’ and the company’s built-in security.
    5. Transaction records, reporting, and their administration are generally supported by all sorts of digital processing technologies.
    6. The Indian government has taken a number of initiatives to promote digital payments.
    7. Owners may expand their business since there are no geographical boundaries and they can collect money from anywhere in the world.

    Small business payment processing options:

    Customers can make online payments using a variety of online payment modes that have been established. The most significant and practical approach for small firms to accept online payments is discussed towards the end of this blog. Before we get there, let’s have a look at the various possibilities.

    Mobile Payments:
    Smartphones have become an indispensable element of people’s lives. They use their phones for everything, including searching, buying, and, most significantly, making payments. People’s physical wallets have been replaced with mobile wallets. They may use their phone to make payments in a variety of ways.

    Mobile Wallets
    E-wallets are similar to physical wallets. It contains the wallet balance and may be used to make various forms of online payments such as bill payments, recharges, eCommerce purchases, in-store payments, and so on. You don’t need to install a card reader if you accept payments using mobile wallets.

    BHIM / UPI
    This is a preferred way of payment. It is both quick and safe. Small firms may make this bank-to-bank transfer possible by using a UPI ID or even a QR code.

    Mobile Banking Apps
    Banking apps can support bank transfers, UPI payments, QR code scanning, and other features. The mobile banking apps cover all of the basic banking tasks. This is something that small businesses may recommend to their clients.

    QR (Quick Response) code
    This is one of the easiest ways for small companies to take payments. Customers may simply scan the QR code and pay using their wallet or UPI.

    Internet Banking
    Customers can use NEFT, RTGS, or IMPS to conduct a quick fund transfer at any time. These are bank transfers that are done utilising account information.

    Different types of payment getaways:

    Payment gateways of many types are still available to eCommerce businesses. Different kinds of gateways each have their own set of benefits and drawbacks. To guarantee a smooth eCommerce operation, select one that is most appropriate to the needs of your site. It is strongly recommended that you utilise a digital payment gateway that enables several currencies, as well as fraud protection and secure transactions.

    1) Razorpay: Harshil Mathur has been the CEO and co-founder of Razorpay since December of 2014. Razorpay has risen to prominence as one of India’s leading payment gateways. This internet payment gateway receives consumer payments and automates payouts to vendors and workers. Razorpay supports debit cards, credit cards, online payments, UPI, and wallets such as JioMoney and Mobikwik. Razorpay is one of India’s most popular payment gateways, with end-to-end online transactions.
    In Razorpay, you may manage your companies as well as automate them. Razorpay also provides a Razorpay router API, which you can connect with Magento 2 and use to control money flow and distribute payments among partners or individuals.

    2) Insta mojo: Instamojo is one of the most comprehensive full-stack SME platforms. Instamojo is the simplest way to start an online business, with functioning online storefronts, built-in payments, marketing techniques, and more. Instamojo provides online storefronts and digital payment options to over 15 million Indian small companies.

    Instamojo is an online setting where you may create your own business with a simple payment gateway linked. Instamojo also manages your CRM, analytics, and logistics. You may begin your trip with a free plan from Instamojo and then upgrade your plan.

    3) Paypal: Paypal is a global financial services firm. It is also one of the most widely used online payment gateways in India 2021. In India, freelancers have additional options for being paid via PayPal.

    Paypal offers online security, fraud protection, PCI compliance, phishing and live customer service, as well as the ability to invoice and monitor transactions. Paypal is safe and protected, with 128-bit SLL encryption and no yearly setup fees. PayPal has an iOS app as well as an SDK for Android. It allows for simple collaboration with websites and accepts a variety of payment ways. PayPal also accepts payments using QR codes. It is a safe and quick payment gateway.

    Until lately, small businesses have preferred cash transactions. However, in order for the firm to flourish, it must change. It is critical that they make use of these modern technologies in order to stay up with the changing environment.

Indian start-ups that went global!

India has done exceptionally well in the start-up area, with several entrepreneurs finding success in the worldwide market. After thriving in their own country for many years, several Indian companies chose to go global and build a name for themselves on a worldwide scale.

Startups and unicorns have been in terms for a few years now, and it goes without saying that this decade has undoubtedly been the decade of startups. We’ve watched the birth and demise of several companies all across the world. The same may be said about India.

Evolution of startups in India:

Before we go into how India became a startup hotspot, let’s define what a startup is. A startup is a venture or a firm that is formed in order to give solutions to previously unanswered problems or to improve on current ones.

Before delving into how India came to be known as a startup hotspot, it’s important to understand what a startup is. A startup is a business or initiative that is formed in order to solve issues that have never been addressed previously, or to improve on existing ones.

  • Talent pool
  • Cost of setting up the business
  • Government boost
  • Increasing use of the internet
  • Increase in investments and funding options

Some of the startups that have made it to the international market and are still growing:

1) Ola cabs:

Countries Ola operates in India, the UK, Australia and New Zealand.

Ola Cabs, which was launched on December 3, 2010, in Mumbai by Bhavish Aggarwal and Ankit Bhati, is now headquartered in Bangalore. Ola provided rickshaw transportation in both India and, as of March 2019, the United Kingdom to meet the demands of their Indian clientele. Ola was estimated at $6.5 billion in October 2019, declaring it a unicorn startup.

FoodPanda was purchased by Ola in December 2017. Foodpanda was suffering at the time, and Ola was eager to expand its services to include food delivery as well. Ola’s second purchase was Ridlr (previously Traffline), a public transportation ticketing service, in April 2018. Vogo, a scooter rental company, received Series A financing from Ola in August 2018.

Services in other nations are quite identical to these. Ola has achieved global acclaim for its outstanding services. Ola continues to expand and bring new alternatives on a regular basis, demonstrating that they are constantly striving to improve.

2) Zomato:

Countries Zomato operates in: India, UAE, Sri Lanka, Qatar, The United Kingdom, Philippines, South Africa, New Zealand, Turkey, Brazil, Indonesia, Portugal, Canada, Lebanon, Ireland, United States, Australia and many more.

Deepinder Goyal and Pankaj Chaddah launched Zomato, an online meal delivery business. It was initially released in July of 2008. Its success story is extremely extraordinary, with over 5000 employees worldwide. Zomato was once known as Foodiebay before being renamed Zomato. Their adventure began when they learned how difficult it was for employees to order food. They saved time by uploading the restaurant menus online. However, these menus were only visible to the office personnel at first, but they eventually made them available to everyone online.

Zomato, the online meal delivery service, launched its worldwide presence in Dubai in 2012. Since then, the firm has risen to prominence in over 23 nations.

3) Cleartrip:

Countries Cleartrip operates in: India, Saudi Arabia, Egypt and UAE.>

Hrush Bhatt, Matthew Spacie, and Stuart Crighton established Cleartrip. Cleartrip, which has offices in Mumbai and Dubai, is a global online travel firm that offers services such as flight and train tickets, lodging, and holiday programs. It was formed in response to India’s weak travel sector, with the goal of making travel and tourism simple and straightforward.

Cleartrip, India’s second-biggest online travel agency, expanded internationally in 2012, beginning services in the UAE. Since then, the firm has come a long way, and it now controls more than 60% of the UAE ticketing industry. According to the company, Cleartrip’s development in the Middle East has proven to be highly successful.

4) OYO:

Countries OYO operates in: India, China, Indonesia, Malaysia, Nepal, UK, UAE

Ritesh Agarwal launched this unicorn business, which has formed its own personality and encouraged many young entrepreneurs. OYO is a hotel room and home service business that was created in 2013 in Gurgaon. Many people select it because of the cheaply cost hotel accommodations. Ritesh Agarwal created Oravel Stays in 2012, and it was rebranded as OYO in 2013.

Oyo, a highly popular hotel room booking platform, expanded into Nepal and Malaysia. In June 2019, the firm also began operations in China. The firm claims to have opened a thousand hotels throughout China’s 28 provinces.

5) Bira:

Countries Bira operates in: India, USA, UK, Singapore, Hong Kong, Thailand, and UAE.

Ankur Jain founded the company by importing artisan beers from breweries in Brooklyn, New York. Bira91, a contemporary beer brand, has become one of the fastest-growing global beers in just three years.

Founder Ankur wishes to stay in the beer business and keep his consumers happy while keeping consumer interest and needs in mind. Bira91’s motto is “Imagined in India,” and the company aspires to be a worldwide leader.

Bira, which debuted in 2015, quickly became India’s favourite artisan beer. While the firm is operating in the United States, it has also grown to Singapore and Nepal, with over $77 million in the capital.

6) Byjus:

Countries Byjus operates in: The Middle East, UK, South Africa, the US

Byju’s is an online learning firm and an ed-tech revolution, founded and led by Byju Raveendran. He earned flawless scores on all of the exams he took for admission to the Management Graduate Program at one of India’s most famous business colleges, but he never enrolled. He resolved to educate his friends, therefore he created Byju’s, a learning program, later that year. Byju’s is well-known worldwide and will continue to grow in the future.

With technology evolving at such a rapid speed, it would inevitably lead to the establishment of more startups in the country, and many individuals would be inspired as a result of the many government programs. So, for the time being, the path for startups appears to be headed in the right direction.

How to provide products and services in accordance with market demand?

Market demand describes the demand for a certain product as well as who is interested in acquiring it. This is determined by how keen individuals are to invest their money in a particular item or service. The price grows in lockstep with market demand. Prices fall when demand diminishes. Market demand is the total of what everyone in a certain industry wants, and it may assist businesses in developing an e-commerce site.

Types of market demands:

When doing market research, professionals divide market demand into seven groups. Learning about these sorts might help you prepare ahead for a product or service deployment. Here are some classifications and instances of various market demands:

Negative demand:

Economists describe negative demand as an instance in which good does not meet the firm’s expectations and instead is not goods or services that consumers desire or can afford. When this occurs, the company’s marketing campaign may be able to spread its effect, allowing more people to learn about the product. Businesses may increase demand by improving their advertising techniques, which show clients how the item might benefit them.

Negative demand may also be driven by the firm’s marketing strategy, which marketers may improve by launching branding efforts and asking feedback from customers on how to best serve them. Customer happiness and involvement have a positive influence on a company’s brand.

Healthcare is one of those services that are in short supply. Customers may choose to skip some services due to financial constraints, perceiving them as optional. As a result, companies are looking for innovative ways to offer healthcare or improve public opinion through the use of awareness initiatives.

Unhealthy demand:

Unhealthy demand arises when buyers require and can afford an item, yet it may be harmful to them. Businesses may help to protect their consumers by training them on how to properly use their products. Businesses can fulfil their obligations to produce items that better serve the public by adhering to safety regulations and government standards. Cigarettes are an example of an unwholesome commodity in high demand. As a result, companies routinely incorporate safeguards and give information about the health implications of cigarettes.

Non-existing demand:

Non-existent demand happens when customers do not intend to purchase any of a specific product. This might be due to customers’ limited expenditures or the arrival of new things. Companies may avoid this by undertaking thorough market research. Market research data may be utilised to personalise offerings for customers and to drive marketing strategy.

Initial phone models, which are still in production, are an example of a product with no apparent demand. Nowadays, consumers are more likely to acquire phones with advanced features.

Latent demand:

Latent demand is a situation in which people want a product that does not yet exist on the market. Technological advancements and advanced analytics technologies help in the prevention of such demand. Marketing teams may foresee trends and client wants by utilising a monitoring system that retains data on user activities such as online chats and transactions, which can aid in determining extra things they may require.

One example of unmet demand is renewable technology for consumer use. Although solar panels are becoming more readily available, many consumers’ affordability and geographic location prevent solar energy from being a feasible option.

Declining demand:

The decline occurs when a customer’s demand or requirement for a product progressively declines over time. Businesses can meet this type of demand by improving their products and staying current on market trends. A great strategy is to use customer feedback to manufacture items that meet market demand.

One example of declining demand is music CDs. To accommodate client demand, the music industry and technology companies have developed digital services and the ability to play music from devices such as mobile phones.

Irregular demand:

In economics, inconsistent demand occurs when a consumer’s spending power, interest in, and need for a product or service fluctuates. Although corporations may find it challenging to forecast changes in customer demand, experts may fulfil this sort of demand by modifying their market strategy. Marketing and customer acquisition tactics are part of the market strategy. Changes to these strategies can assist businesses in responding to shifting customer preferences while also creating their brand and extending their client base.

Seasonal goods, such as Christmas decorations, have erratic demand. Because consumers may not require particular commodities when they are not in season, firms must devise tactics to sell enough products at peak seasons to achieve objectives.

Full demand:

Full demand is great for businesses since it indicates that their supply is commensurate to their consumption. This implies that people are acquiring goods and services at the same pace as they become available. Businesses achieve maximum demand by analysing their target demography and designing a marketing strategy that connects and engages with their target audience.

Acts such as performances, films, or concerts, which routinely sell out as seats become available, are examples of high demand. Artists and managers build demand by offering a service that people want to utilise.

Methods to determine demand:

1) SEO tools: SEO tools can analyse user searches and forecast website traffic. This data may be utilised to determine what individuals are interested in. Businesses may use search optimization tools to input keywords that include their trademark or product and receive data on how frequently such phrases appear in searches, which can help them predict client demand.

2) Social listening skills: Social listening tools are types of software that monitor user behaviour on social media sites all over the internet to discover what consumers are talking about. A firm may utilise social listening technology to watch when their brand, product, or rival is referenced or interacts with on the internet. This assists businesses in determining which demography of people to sell to and where to market their goods or services.

3) Demand curve: The demand curve depicts the relationship between a product’s demand and price. A corporation can use the demand curve to compute product prices based on customer reactions to similar things. The demand curve is a forecasting technique for projecting demand for other things in the same marketplace since it shows client desires.

5 Pointers to Keep Check on Business Expenses

When you have the correct tools, tracking company spending becomes a lot less painful. These tools will assist you in making tracking company spending a regular habit. As a small company owner, this will allow you to keep a closer watch on how much you’re spending. Furthermore, greater expense management will enhance profitability.

Monitoring your company spending also simplifies tax season because many expenses may be reported as write-offs. If you keep track of your spending on a regular basis, you are less likely to overlook potential deductions. This implies you’ll have to pay less in taxes (or get more back).

1) Business account:

Self-employed people and small firms may discover that the distinction between personal and company funds is hazy. When it comes time to file your taxes, you may find yourself searching for business costs amid your groceries and apparel purchases.

Open business bank accounts to keep track of all business-related spending. Then, for all company purchases, utilise your business accounts. Using a budget tracker makes it easier to organise your finances, giving you more time to focus on the essential things.

It’s also a good idea to charge your company costs to a credit card that offers generous rewards. Some credit cards provide cashback on expenditures. Others allow you to accumulate and earn rewards for travel and accommodation. Forbes has compiled a list of some of the top business credit cards.

When feasible, experts advise avoiding the use of cash. Cash is too simple to spend, difficult to manage, which only has a receipt as a record, as opposed to a digital transaction, which has a record in your bank account as well as a receipt. Using debit and credit for transactions is beneficial for a business, better for tax purposes, and certainly much better when you are audited.

2) Save the receipts:

Here are some ideas for keeping your receipts organised:

For professional paper receipts, maintain a separate folder. If you can’t commit to organising the receipts on a regular basis, take some time once a week to do it. Prepare one per month at the start of the year and organise your receipts accordingly. With a separate file folder for each type – personal, business, etc. – recording receipts will be much simpler. Don’t forget to put the objective of your payment on the receipts. It’s a good idea to retain a thorough company calendar on either Google or Outlook as a backup.

3) Maintain a spreadsheet:

This option is appropriate if you want a low-tech approach to managing your spending or if your organisation is just getting started. However, when your firm expands, you’ll want to utilise a more complex tracking approach. One approach is cloud accounting software, which is discussed more in the next section.

Rather than using automatic expenditure trackers, creating your spreadsheet from start entails manually keeping a count of every expense you incur during the day. You’ll need to create your groups and organise them into different columns.

Spreadsheets are very simple to load into accounting software for bulk expenditure entry. Most accounting software will work with Excel or Google Sheets.

4) Cloud accounting software:

According to Accountex, by 2020, more than 90% of small firms will be using cloud accounting software. Owners desire to access their financial information on their cell phones, which is one of the main reasons for this high adoption rate.

Utilising bookkeeping/accounting software on the move is an appealing feature for active businessmen who may not be able to go into the office on a regular basis. You may access a network connection with the touch of a finger when using mobile cost tracking. Cloud accounting software also allows small company owners to enter costs while on the road, whether they’re on their way to a conference or meeting with a customer.

This software also links to the bank account and credit card, allowing you to quickly and regularly update your spending. This is a compelling argument to choose transactions online over cash transactions. Rather than having to print out invoices and memorise every purchase you make during the day, a good cost tracking tool will just record the crucial facts for you, allowing you to focus on the greater picture.

If you are ever audited, your tax documents will be more secure. Spreadsheets may be lost if your computer crashes. Paper receipts might be misplaced. Accounting data kept on the cloud, on the other hand, maintain all of your records in one secure location.

5) Maintain an Invoice template:

Create an invoice template, either in your accounting program or by downloading one online. Most service-based small businesses provide credit, which means they issue an invoice when a job is completed and allow the client to pay later.

Payment conditions must be specified on each invoice. This should contain your contact information, how to pay you, and when the invoice is due—a decent rule of thumb is 30 days after mailing the invoice. Payment processing information guarantees that no errors occur along the route and that funds are correctly deposited into your account. Setting up payment conditions ensures that you get paid on time and makes it obvious when you should be paid.

It is most important to develop fiscal prudence as a basic organisational value. Symbolic decisions you make or allow as a business owner will permeate your company’s culture. Sure, you may buy that flashy automobile or fly first class on the company’s cash, but keep in mind that your team is always following your lead.

Make an annual or semi-annual review of all your main vendors a normal procedure in your organisation. Also, make sure that any automatically renewing contracts are flagged so that they appear for evaluation and rebidding sixty to 90 days before their renewal.

The power of digital in the world of business and how it helps in growth

Adoption and adaptation to digital is no longer an option in companies. Companies must begin and advance their digitalization in order to remain profitable and relevant. Many firms are concerned that they have already lagged. In fact, digital speed may be up to five times quicker than typical business speed, and that speed is critical to being a leader.

Adapting to the disruption of operations and business networks has been critical, and most organisations have increased their efforts to address this unexpected upheaval. According to Dell’s Digital Transformation Index 2020, which questioned over 4000 company executives worldwide, eight out of ten organisations accelerated their digital transformation programmes in 2020. Furthermore, 89 per cent of respondents stated the pandemic underscored the need for a more flexible and scalable IT architecture.

Here are the top 5 reasons why the digital revolution is critical for every company that wants to expand and stay competitive in today’s digital-first environment.

1) Meeting high demands:

Today’s consumer, whether internal or external, deserves the same level of service in a professional setting as they do with technology in their personal life. However, for a firm, this might be difficult to do. There have never been more options for how and where to offer apps, as well as who to work within the delivery of services.

Businesses are rapidly demanding more agile hybrid IT services and agile networking capabilities, and delivering a positive user experience is a vital component of business transformation. This encompasses the experience of working with the IT staff and technologies, as well as the usability of applications for workers or external clients.

2) Making it easier for employees to be more productive:

Workforce involvement is a popular subject, particularly when combined with a scattered population that will never return to the office in its entirety. Employers are seeking innovative methods to boost productivity, and digital technology is playing an important role in assisting employees to become more productive in their core duties both in and out of the workplace.

Digital transformation offers a significant opportunity for basic company departments like finance and human resources to shift away from manual procedures and automate essential areas such as payroll, allowing executives to focus on larger business prospects.

The network’s role in fostering innovation – by allowing remote working and giving on-demand access to technology and services – is crucial to establishing an atmosphere that facilitates people to succeed.

3) Security at priority:

One of the most difficult challenges is figuring out how to deploy more information at the network’s edge while maintaining that data safe. This is an exceedingly challenging undertaking that necessitates stringent controls over accessibility, information adherence, and threat mitigation. Even the most strict security measures, however, are rendered ineffective if an underperforming network encourages employees to seek flexibility or better speeds elsewhere.

Forward-thinking firms must create a security plan that is uniform across all networks, apps, and data, regardless of the services or providers employed.

Up-to-date safety safeguards are especially important as we transition from pandemic-enforced distant working to blended working arrangements that incorporate people’ diverse lifestyle preferences. Administrators will need to strike a balance between security strategies that work for in-office people and measures that keep remote workers secure on private networks and devices.

To ensure that the benefits of digital transformation are truly transformative, companys should collaborate with both services and technology partners who understand the bigger corporate goals and can work regardless and honestly to achieve organisational objectives.

4) Strengthen partnerships:

Customer demand is increasing, and competition within industries is fierce. Firms are becoming increasingly reliant on one another, cooperating with distributors and retailers, contractors and professional advisors to deliver a diverse selection of popular commodities.

Coordination between various parties typically demands document-based communication, which has traditionally been regarded as a time-consuming hindrance to efficiency. The system, on the other hand, is incredibly efficient in rethinking this procedure. The use of an eSignature system can result in a more visible, rapid, and dependable workflow. By bridging the gap to mobile technology, can even help workers be more effective and productive on a regular basis.

When it comes to internal business changes, more visible business needs often take precedence, especially when IT departments become increasingly stretched and funding becomes limited. This, however, is a common misperception.

Businesses may stay ahead of the competition and become more accessible to potential partners by building a digital process early on and integrating it with the rest of the organisation. Internal procedures may be more effective and versatile, allowing them to scale as the company grows. Over time, digital transformation produces tools for saving time and resources, as well as increasing corporate partnerships.

5) Updates skill sets and knowledge:

As new technology advances, the demand for these specific talents will increase.

As per a report by Altimeter, 31% of organisations lack technological talent and experience within their staff and executives. Many businesses, paralysed by fear of change, see digital transformation as a huge expense rather than a wise investment.

Businesses that take on the challenge of change allow their staff to build skills for the future while also providing their company with the in-house knowledge needed to sustain development and a winning mentality in the digital era.

Businesses are being reinvented and distinctive competitive benefits are being captured as a result of digitalization, yet organisations are still hesitant to replace their current business models. In recent years, many senior executives have used digital transformation as a type of catchphrase. According to a Gartner report, 79 per cent of corporate strategists said they are digitising their firms to generate new revenue streams. However, progress has been gradual, with less than half of organisations claiming to have migrated putting digital projects at the centre of their strategy.

Furthermore, current tools like Artificial Intelligence and cross-device connection enable businesses to automate product customization and even conduct activities remotely. In this manner, critical facilities are kept operational, and manufacturing systems are practically controlled.

The new criteria for classification and registration of Micro, Small and Medium enterprises

Micro, small and medium enterprises (MSMEs) have a significant role to play in the growth of the economy and the future of our country. The MSME industry, which has been a key industry for a very long time, has been contributing immensely and there’s enough proof to substantiate this fact. As per recent statistics, MSMEs in India contributed to nearly 8% of the country’s GDP, around 45% of the manufacturing output, and approximately 40% of the country’s exports. And this is only a fragment of the entire contribution made by the industry which makes it pivotal for the Government of India and other private and public entities to support MSMEs in every way.

While those in the business are aware of the definition of an MSME and further aware of the benefits one can avail if registered as an MSME/SSI under MSME Act, it has been close to 14 years since that definition has changed. Ever since, business owners have been living in the fear of losing the title of an MSME and the myriad benefits that come with it, subject to growth of their existing business.

The need of the hour

In a crucial time like this when business owners were looking for a reform in the way an MSME is projected and avail more benefits, the AATMANIRBHAR BHARAT PACKAGE which was announced in the recent past, has been a welcome change. The Government, in the Ministry of Micro, Small and Medium Enterprises had issued a notification to bring a change in the MSME definition, in accordance with the Aatmanirbhar Bharat Package.

The new definition and criterion that have been notified and came into effect during the second half of the last year, is as follows:

The new definition

Guidelines for classification of MSMEs.

The definition of Micro manufacturing and services units was increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover. The limit of small unit was increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover. Similarly, the limit of medium unit was increased to Rs. 50 Crore of investment and Rs. 250 Crore of turnover.

Revised MSME Classification

Revised MSME Classification
Sr. No. Enterprises  Investment in and Turnover  Limit 
(i) A Micro Enterprises  Investment in plant and machinery or equipment; AND does not exceed one crore rupees

(<Rs. 1 crore)

Turnover does not exceed five crore rupees

(<Rs. 5 crore)

(ii) A Small Enterprise Investment in plant and machinery or equipment; AND does not exceed ten crore rupees

(<Rs. 10 crore)

Turnover does not exceed fifty crore rupees

(<Rs. 50 crore)

(iii) a Medium Enterprise Investment in plant and machinery or equipment; AND does not exceed fifty crore rupees

(<Rs. 50 crore)

Turnover does not exceed two hundred and fifty crore rupees

(<Rs. 250 crore)

Guidelines for registration.

In the context of registration for MSMEs, as per the said notification, an MSME will now be known as ‘Udyam’, and the registration process will be known as ‘Udyam Registration’.

Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online and upon registration, an enterprise will be assigned a permanent identity number to be known as “Udyam Registration Number”. Thereafter, an e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.

New registration process

1. The requisite form shall be provided in the Udyam Registration Portal, for which there will be no fee.

2. It is necessary for a person to have Aadhaar Number for Udaym Registration. The Aadhaar number shall be of the proprietor in the case of a proprietorship firm and of the managing partner in the case of a partnership firm and of a Karta in the case of a Hindu Undivided Family (HUF).

3. In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.

4. It is to be noted that no enterprise shall file more than one Udyam Registration. Any number of activities including manufacturing or service or both may be specified or
added in one Udyam Registration.

Registration of Existing Enterprises

1. All existing registered under EM-Part-II or UAM shall register again on the Udyam Registration portal on or after 1st July, 2020.

2. All enterprises registered till 30th June 2020, shall be re-classified in accordance with this notification.

3. The existing enterprises registered prior to 30th June 2020 shall continue to be valid only for a period upto the 31st March 2021.

4. An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

The announcement of the new classification and registration of MSMEs by the Government of India is a step into the right direction toward growth and development. The new guidelines and benefits will ensure MSMEs are equipped and this will catapult their performance and profits. Initiatives like these is what we need to ensure growth as individual businesses, as a sector and as an economy. It’s time to #Growkaro with such initiatives including the Walmart Vriddhi Training Program, a FREE online training program for MSMEs in association with two of the leading e-commence giants at a global level – Flipkart and Walmart, that helps MSMEs go digital and grow exponentially.

Start-ups that failed within 5 years of starting in India and why!

India has one of the largest ecosystems for startups, but the trend shows that about 80-90% of the startups fail according to an IBM study. According to the Startup India program, around 27,000 startups registered under the program till 2020. Almost all of the reasons why Indian businesses fail early are connected to innovation and leadership: inadequate business models, bad planning, flawed consumer insights, or a lack of unique ideas.

Let us look into some of the startups that failed in India within the 5 years of their inception and understand what the reasons were behind their folding up.

1) Cogxio: An online dating site that allows users to find others who share their interests and then meet and chat in person. DateIITians (former name) was founded in 2011 by Kinshuk Bairagi and Layak Singh. Within three months, the site claimed to have had five million hits and had over 10,000 verified users.
However, they were unable to gather finances and build things up.
The duo then decided to launch Cogxio. The plan was to employ location information to turn online dates into actual dates. Cogxio has just about 12,000 registered users a year after its introduction. Despite this, the company went out of business in 2016.

Why did the startup fail?

  • The product put forward failed to provide the needs of the market. Online dating was a very unknown concept for Indians and didn’t gain much attention. The expectations did not match in terms of growth because they didn’t put in much funding towards marketing. All the funding went towards the development of the product.
  • It took some time to get to the point where it could be launched as an Android app and go live on mobile. As a result, the app’s accessibility was severely limited.

2) Just Buy live: Just Buy Live gave clients access to a diverse choice of brands using simplified technology, boosting their purchasing experience. Alpha Capital provided $20 million in Series A investment to the startup in January 2016. Following that, Ali Cloud Investment invested $100 million in a Series B fundraising round. Despite large fundraising rounds into a B2B e-commerce firm, they shut down operations nine months after raising $100 million.

Why did the startup fail?

  • The traditional B2B supply model is built on credit. Following that, the company ventured into Religare to give merchants with non-secured credit on a 30-day return policy when ordering things through their online platform. Due to the impact of demonetization, several merchants did not pay back Religare, and Just Buy was forced to settle the remaining debts.
  • One of the biggest startup business mistakes is the absence of an effective business model can lead to a lot of factors eating into the finances and make it difficult to acquire customers.

3) Task bob: Task bob provided consumers with immediate, high-quality residential services while increasing servicemen’s efficiency. They were attempting to address three of the most vexing aspects of any residential service model: time efficiency, quality, and pricing transparency.
The Mumbai-based startup raised a total of $ 5.8 million in three investment rounds. Following the investment, the firm shifted its focus to acquisitions to strengthen its position. They purchased Zepper, a Bangalore-based firm with a service objective similar to Taskbob. The firm finally ceased operations in 2017.

Why did the startup fail?

  • Because the firm charged a small fee on orders, profit margins were poor.
  • If the service is not of quality, it leaves a bad impression in the minds of the consumers. Customers were dissatisfied with the services they received, resulting in a decrease in order frequency.

4) Peppertap: Pepper tap, founded by Milind Sharma and Navneet Singh, is a platform allowing individuals to acquire grocery products online at a lower cost. Furthermore, the business assures that the order will be delivered to the customer’s home within 2 hours.
Over four rounds of fundraising, the firm raised a total of $51.2 million. Unfortunately, PepperTap declared its closure in April 2016.

Why did the startup fail?

  • PepperTap invested a lot of money to get clients. The main cause behind PepperTap was its unrestricted marketing spending. Due to large discounts, the firm was losing money on every purchase, with no prospects of future profitability.
  • The PepperTap “zero inventory owned” strategy was another cause for the demise. They just gathered grocery store inventory and then updated their offerings. The product experienced inventory issues as a result of unpredictable supply, and many orders had to be rejected.

5) Zeb Pay: Zeb pay acted as a platform for people to acquire cryptocurrencies like Bitcoin, ethereum, etc.

Why did the startup fail?

  • In 2018, the RBI ordered all government-regulated exchange platforms and banks to cease trading with cryptocurrency-related entities and to prohibit such transactions. This made transactional work difficult for the corporation, its investors and its consumers.
  • Legal regulations and complexities like demonetization have directly affected the inception of startups that have caused cash crunch and directly affected the finances of the startup.

6) Card Back: CardBack, founded by Nidhi Gurnani and Nikhil Wason, allows credit, debit, and prepaid cardholders to access all offers and incentives on their cards without disclosing any critical information.
During its five-year journey, the firm raised $170,000. Cardback, for example, is backed by famous angel investors such as Rajan Anandan, Sunil Kalra, and Alok Mittal.

Why did the startup fail?

  • In 2017, the Indian market was not mature enough because the majority of individuals in the nation did not have numerous credit cards. The firm needed large resources of investors willing to spend money educating customers about product safety and security.
  • They even attempted to relocate its headquarters to Singapore, a country with a multi-credit card culture. However, the plans collapsed owing to a disagreement with a major investor.

The majority of the mistakes that caused start-ups to fail are frequently the consequence of a lack of knowledge about the industry, as well as the financial requirements and setup. Entrepreneurs must learn about prospects and make relationships in order to run a viable business. There are other free courses available, such as the Walmart Vriddhi programme, which assists entrepreneurs in learning as well as providing tools that they may utilise to maintain a sustainable business.

How to develop human resources?

Human resource development (HRD) refers to the broad area of coaching and development offered by firms to improve their employees’ expertise, abilities, and talents. Training and development in many firms begin with the employment of a new hire and extends throughout that individual’s stay with the organisation.

Many personnel enter a company with just rudimentary training and expertise and require training to accomplish their jobs. Some may already have the essential abilities to complete the job, but lack understanding of that specific company. HR development is intended to provide employees with the knowledge they need to adapt to the culture of their firm and accomplish their job efficiently.

Purpose of Human resource development:

In some aspects, human resource development may be compared to how a trainer perceives his sports team. While a trainer may bring in players who only have some talent and ability, the goal of practise is to enhance existing talents and capabilities and help athletes become even better athletes.

The purpose of HR development is the same: to produce better workers. The goal of HR development is to give the ‘instruction’ required to reinforce and expand an employee’s existing knowledge, skills, and talents. The purpose of training and development programmes is to improve employees’ abilities.

Benefits of Human resource development:

One of the things that employees seek when looking for a job is the ability to learn on the job. Providing employees with the ability and desire to continue growing their skills can aid in employee retention and inspiration. Employees who think they have received adequate training and help are more likely to remain with the company.
Human resource development also enables the identification and training of employees for advancement, ensuring that your company’s management is competent and well-trained.

Finally, a well-trained workforce performs better, and when individuals flourish, the company thrives. As a consequence, human resource development ensures that an organization’s performance increases, enabling it to meet its goals.

How to create a Human Resource strategy?

While there is no “right” or “wrong” way to develop a successful HR strategy, there are a few best practices to follow. This is especially true if your goal is to establish an HR strategy that goes beyond ‘tactical’ in order to change your organisation and its people. Because company methods regularly vary in response to a variety of social, cultural, financial, and cultural developments, how companies manage HR strategy today may be quite different from how they handled it a year or two ago.

1) Adapt to business requirements:

A business plan specifies how a company will achieve its objectives and thrive in the long term. An HR strategy supplements this by establishing the internal infrastructure necessary to successfully empower its team members in order to achieve those objectives.

It is frequently necessary to have dedicated staff on the ground to maintain and cultivate such connections in order to provide an excellent client experience. To ensure that nothing falls through the cracks, especially at such a turbulent time, this company may want to align its HR strategy to place a greater emphasis on staff retention in order to minimise and, ideally, avoid any interruptions in the user experience.

This is just one example of how HR strategy can be a true partner to growth strategy, and it emphasises how human resource planning can both inspire and influence an organization’s overall performance. That is when the HR strategy is well aligned with the overall goals of the company.

2) Identify and set a goal:

As with any goal or purpose, merely developing a strategy is only half the battle. By any measure of the imagination, it is not a straightforward task. In reality, everything you do has to create cumulative success until you reach, if not exceed, your stated objectives.

Once you’ve defined what progress looks like, you must establish how you’ll finally evaluate whether or not you’ve met your HR objectives. This simply refers to setting key performance indicators (KPIs) and routinely tracking success against them throughout the year.

To avoid becoming overwhelmed by what may appear to be massive strategic difficulties ahead, it may be prudent to divide the strategy into more manageable chunks, such as quarterly or annual strategic plans. This will also build a best practice of allocating time on a monthly or quarterly basis to revisit the goals, update the KPIs with the most recent measures, analyse what’s working, and course-correct as needed.

3) Emphasis on communication:

Even if you’ve taken the necessary steps to align the HR strategy with the larger aims of the company, you still need the support and approval of key stakeholders and other company colleagues throughout the organisation. After all, human resources is a support system for all divisions inside a company. How you reach your strategic goals will be heavily dependent on every area being an active participant in that endeavour.

In other words, collaborate with partners to identify priorities, determine what’s truly necessary or achievable in the coming year, and then outline a clear path to achieving those goals, as well as the KPIs you’ll use to measure performance toward specific goals.

Although human resource planning is commonly seen as a top-down responsibility, the fact is that it cannot be completely deployed without buy-in from the leaders and teams who will eventually be accountable for assisting HR in turning the plan into reality. Sure, everyone in a business may agree on the broad goals established by the HR strategy in theory, but various departments may have different approaches to achieving those goals. Deploying an HR strategy throughout a business necessitates an apples-to-apples implementation across every department and team.

Companies with great HR strategy:

  • Google is known for its dynamic culture, which is focused on ensuring the long-term success and contentment of its employees. And it has certainly done so, providing its employees all over the world with a structure and culture that includes cafés, sports facilities, health services, and other benefits, making it one of the most wanted places to work.
  • Nissan’s overall culture, which is based on the principle of Kaizen, encourages its employees to continue to innovate, develop their talents, and have a significant benefit to the organisation. This is the foundation of the company’s HR approach.
  • Cadbury is recognised for its profound devotion to its employees and their families. In truth, Cadbury’s HR approach is straightforward: it prioritises its people above all else, earning it one of the world’s most devoted workforces. What distinguishes Cadbury from the competition is that, from its inception in 1824, the business has kept its worker village and R&D plants.

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