Visit us at www.ca4you.in
In my last blog we discussed e-Commerce valuations which, in my humble,
opinion does not make much business sense (http://ca4you.in/blog/2016/06/22/the-curious-case-of-e-commerce-valuations-and-online-business-registration/)
Start-Ups are finding real difficult to raise funds and
entrepreneurs are facing the heat. Now this can be a blessing in disguise for
start-ups by serious entrepreneurs and they can focus on building a sustainable
business rather than whiling their time running behind VCs who run behind herds
Start-Up is end of the day a Business and any business can only
be run as a business The best (and only) way to run any venture is to make it
sustainable (and yes, Scalability and Sustainability can go hand in hand). Let
us evaluate 5 basic principles to run a venture successfully.
1- 2 Years Rule: Start the plan with funds for 2 years atleast (Cash, Cash
Receivables, Sure Shot Contracts, Firm commitment on funding etc . Expected business growth, a passing
commitment by a friend won’t count). Make your budgeting, hiring plan
accordingly and the moment the buffer comes to 1 year, go looking again for fund.
2- Sustainability before Scalability: Focus first on creating
a sustainable business before targeting scale. The stronger the foundation, the
stronger the monument. Lot of people do the mistake of opening a new branch or
launch a new product line before ensuring their existing product line is breaking
even.
3- Marketing ROI: Lot of Start-Ups start
spending on every mode of marketing (and when it fails, they justify it by
christening it as ‘branding exercise’!!!), In nutshell Spray and Pray policy
does not work with Marketing for Start-Ups
4- Hiring at Right Time: There is no dearth of talent in India and so always hire someone
when you have fixed KPIs defined for the employee. Not doing this is unfair to
your business, new employee and existing employee
5- Bottom-line: Business is done to create value for all the Stakeholders and profit
generation should always be the Top priority. Everything else would follow.
Get update on not only Accounting/Book-Keeping/Government
Compliances but also about all new rules and regulations/opportunities for funds which will be your industry specific
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We are available on Call
@844-7265-465 or at vivek@rrs-group.in
www.ca4you.in (Company Registration
Services/Company Formation Services/Company Registration Consultants in Delhi)
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