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Startup Incubators in Bangalore, India.

Bangalore is chosen above all places in India for startups as it’s now the startup capital of India. The question arises that why only Bangalore is chosen as an incubating city for startups? It is because there are few advantages over other cities in Bangalore like rent cost is low as compared to other big cities in India. Hiring talent is cheap as compared to global market and availability of incubators in the city is most important aspect of the city. This makes your efforts for fundraising easier and you have very conducive environment for incubating your startup.

For entrepreneurs looking for support, you might consider the below options.

S No.

Company Name Description Website to apply
1. Oracle Cloud Startup Accelerator Oracle is focused on cloud based solutions https://www.oracle.com/in/
2. K-Start K-Start is a seed funding program started by Kalaari Capital which provides sees funding along with mentor-ship for startups.

 

http://kstart.in
3. T-Labs T-Labs are funded by Times Internet a behemoth from the stable of the Bennett, Coleman and Company Limited.

 

http://tlabs.in
4. 91 springboard They offer co-working spaces while also serving as an Incubator. It is part of the 10,000 startups program supported by the Government of Karnataka located in Koramangla.

 

http://www.91springboard.com
5. NUMA Bangalore The French based startup opened its first branch in Bangalore. India by entering into a partnership with Cobalt Co-Working Spaces.

 

https://bengaluru.numa.co

 

6. 10,000 startups 10,000 startups is an incubation program funded by NASSCOM, the premier association of IT companies in India. It operated through a large startup warehouse in Diamond District off HAL Airport Road. Startups have to apply for this program and are screened before being admitted.

 

http://10000startups.com
7. Microsoft ventures accelerators  

One of the top startup Accelerators in the country, startups from all across India with each other to get selected.

 

http://www.microsoftventures.com
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10 Tips to find funding for a startup

10 Tips to find funding for a startup

One question that frequently arises among budding entrepreneurs is that from where one can could get funding for their startup. But the thing is that there is no perfect answer to it even if you have the most workable or brilliant business idea. And having said that there are creative ways and options that are available for starting a business. If you desire to be an entrepreneur, I encourage you to think of all possible pros and cons before jumping into the business. Of course, every alternative has its own advantages and disadvantages, so think before you opt one.

For example, professional investors are only keen to invest when you already have a previous experience in building a business. They also might ask for holding a portion of the business equity and control for the funds they do provide. Thus it will always be a question of what you decide will be best for you. Here is the list of 10 tips that would help you in gaining venture for your startup to be funded. If the things work out for the best then you are on your way to become a successful entrepreneur.

  1. Fund your startup yourself: The best answer to find funding for your startup is to self fund it. Over 90 percent of startups are self funded (also called bootstrapping). It may take a bit longer to save some money before you start and grow. The advantage you get from boot strapping is that you don’t have to give up any equity or control to anybody. You are the whole sole owner of your business.
  2. Pitch your needs to friends and family: Another safe bet is to ask your family and friends to fund your venture. It is safe because you don’t have to share any equity with them and also there is no obligation to pay the interest on the loan. As there is another general rule, to prove your credibility to the professional investors funding from family and friends will impress them, because you already have people that believe in your idea.
  3. Request a small-business grant/government funds: There many government schemes that gives funds for promotion of business ideas that are focused on social causes or work on developing employment for people. Recently India has seen launch of PM Modi’s startup India which has planned to fund 1000 crore corpus funds to support the startups. The process is very easy you could sign up on the official site (http://startupindia.gov.in/registration.php) by just filling a form or download app to file for startup funding. The best thing about government funding is that you don’t share equity and you also learn through other peers.

(Read here to know more about startup India campaign)

  1. Start a crowdfunding campaign online: This one is the newest source of funding, where anyone could participate. For example (https://www.ketto.org/) is the site that helps you in crowd funding. It works on the basis of pledges to your startup during a campaign, these pledges are done to your startup during a campaign, and some may pledges to buy the product for later delivery, give donations or qualify for a reward, such as a T-shirt.
  2. Apply to local angel-investor groups:  An angel investor is a wealthy individual  who is willing to invest in a growing company in lieu of shares in the company. There are groups of such high-net individuals in most metropolitan areas. You could also find individuals other than these groups which could be found in your area according to your startup profile. To find Indian Investor look into this website (https://bizztor.com/).
  3. Solicit venture-capital investors: These are professional investors; they have institutional money in qualified startups, usually with a proven business model, ready to scale. They are the sharks who look for big opportunities, Give them a warm introduction to make it work.
  4. Join a startup incubator or accelerator: These are organizations, and are very common and popular these days, and are often associated with major universities, community development organizations. Many provide seed funding as well including office facilities and consulting.

(Read here to know more about incubators.)

  1. Negotiate an advance from a strategic partner or customer: Find a strategic partner, a strategic partner might be a complimentary business or a major customer. The idea behind finding a strategic partner is search for someone that sees value in your idea and provide funds for royalty payments to complete your development.
  2. Trade equity or services for startup help: It is same like the bartering system from the old ages. You bartend your skills or something you have for something you need. An example would be negotiating free office space by agreeing support for the computer systems. For all the other office tenants.
  3. Seek a bank loan: There are banks which provide funds to new startups with legal formalities like normal backup requirements. In such a case you could put some assets that you are willing to put as a behalf of security.

Conclusion:

There are many other creative ideas that are available to fulfill your dream. There is no point in waiting and not living your dream. Other than funding requirement your startup requires work and commitment on your part, so there is no magic in just getting the funding.

 

 

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5 Tip On How To Successfully Target Your Customer Base?

Marketing allows you to place your service or product in front of your customers in a way that the customer is motivated to take it. But how you can motivate a human being to make that purchase. For your business to survive you need to know about your customer. There is a little thing that is called “segmentation” in the marketing world. Segmentation helps you sort out the segment of human beings your business will cater to. The key question is why you want to segment your customers? Here is an example, if you sell luxury cars; you already know that only a certain segment of the population will buy luxury cars, simply because not everyone could afford such luxurious automobiles.

Once you have the segment in front of you, then you can easily ask questions like, where do these customers live?  When do they shop? What media attracts them the most etc. Doing a detailed business market analysis to find the most appropriate customer segment.

  1. Find about who your customer is?

You are just starting your business for a product or a service; you cannot just go about chasing everyone, because everybody has their own needs and will not be interested in your business. This will help you recognize your present and future customers. You have to be as detailed as possible, it might be possible that you do not have access to big marketing data but there are few strategies that will help you in profiling the customers. You could always rely on old strategies of surveying, asking questions, visiting other business houses and reaching out through internet. These are all time tested strategies that will help you design your marketing campaign. Learn and apply the knowledge you have gained from profiling.

  1. Find out what motivates your target customer base?

There are two things to remember “What” and “When”, the “What” will tell you the trigger that motivates the client to attract towards your business and “When” will tell exactly the time the client has its wallet out. Sometimes gaining insights will help you decide the location of your business. For example you are a book seller; you may decide to open a store near a university or near a school. You have a touring agency you want to sell cruise plans; you may target the corporate workers, as they are more stressed and needs some quality and fun time out from their busy life. The stress in their life is the trigger that will give an opportunity to sell you your luxurious cruise plan.

  1. Find out are they repeat, steady or one-time customers?

If your business has a continuum that is offering a service which will engage the customers for a long time, then plan ahead for the up-gradation of the services you will offer. You may be in a software business where you plan to upgrade the software each year with newer versions and more facilities. Sometimes you may be selling a product that is used for daily good then you may plan ahead of keeping the inventory to the fulfill the demand.

  1. Know ahead how long you want to stay in this business?

If you think selling to your friends and family is enough to keeps the revenue coming then think again. Give it a thought and research, how will you survive in the longer run, how are you going to find new customers to keep the business floating. Answer to these questions will help you design marketing campaign, search for new locations for your business, advertising etc. Is your service or a product seasonal? Which will last only at a specific period of time? Sometimes in the excitement we forget about ourselves and the survival of our family, we need food, shelter and clothing. Till the time the business is ready to sustain ourselves, we may want to cut down on some luxuries.

  1. How you stand out?

How do you plan to standout in the market which is imitating and competitive, even if your product is  unique, soon you will have competitors, who will imitate your service and you’ll be facing competition in your own business. Are you planning to compete on value or on cost? This will make a difference in your business and when you will face the real competition then you have something to hold on too. A combination of both experience and research will help sustain in any circumstances.

Conclusion

Establishing a business is all about planning, research and resilience. There are no magic pills or magic cures. However with conscious choices and experience you can build your business upon.

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Startup India: Key highlights of PM Modi’s action plan

“While addressing the first conference of start-up entrepreneurs, Modi announced an action plan to boost ventures for entrepreneurs who have ideas and are seeking support. He emphasized that it will also generate employment and wealth.”

Here are the top highlights & takeaways from Modi’s speech.

  1. Compliance regime based on self certification: The primary objective of compliance regime is based on self certification, which is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, employee’s provident fund, contract labor, water and pollution acts.
  2. Startup India hub: A startup India hub shall be created as a single point of contact for the entire startup system to encourage knowledge exchange and access to funding.
  3. Simplifying the startup process: A mobile has been launched on April 1st using which the startups could be registered in a day. The process is further simplified by just filling up a short form through the mobile app or uses the online portal.
  4. Patent protection: The Modi government is also working on a legal support for fast tracking patent examination and has also controlled the cost. This will promote awareness and adoption of Intellectuals Property Rights (IPRs) by startups and support them by helping in protecting and commercialization of IPRs.
  5. Funds of funds with a corpus of Rs. 10,000 crore: The Startup India action plan includes investment of government funds with an initial corpus of Rs. 2,500 and a total corpus of Rs. 10000 crore in coming four years. It is planned that the funds would be managed by private professionals drawn from the industry while LIC will be a co-investor in the corpus funds. The credit guarantee fund for startups will make sure standing guarantee against risks and at the same time the fund would help flow of venture debt from the banking system.
  6. Credit Guarantee Fund: A national Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs. 500 crore per year for the next four years.
  7. Exemption from Capital Gains Tax: At present the investments by venture capital funds in startups are exempted for this law. Now, the same is being extended to investments made by incubators in startups.
  8. Tax Exemption for startups: Income tax exemption to startups announced for three years.
  9. Launch of Atal Innovation Mission: Atal Innovation Mission started to encourage the talent among the people by giving impetuous on innovation.
  10. Startup Fests: This will encourage innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators.
  11. Setting up of 35 new incubators in institutions: PPP model being considered for 35 new incubators, 31 innovation centers at national institutes.
  12. Promote Entrepreneurship in biotechnology: The action for promoting entrepreneurship in biotechnology includes a five new bio clusters, 50 new bio incubators, 150 technology transfers offices and 20 bio connect offices will be established.
  13. Setting up of 7 new research parks: Government shall set up seven new research parks- with an initial investment of Rs. 100 crore each.
  14. Other key highlights were: Panel of facilitators to provide legal support and assist in filing of patent application. And also there will be 80% per cent rebate on filing patent applications by startups.

 

Here is the Prime Minister Modi’s speech at the launch of Startup India.

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11 Things To Know Before Starting A Business

Starting your business, check out things to know before you head on.

The fact is that many startup die in the first three years and some of them die by the wayside in the first six months. It is not because their idea was not good enough but there were things that were not considered beforehand. To give the best chance of surviving the incubation period we have compiled 21 things to research before you take the leap.

  1. Registering your company: The way you register your startup is very important as it will define the legal and financial status your startup, In India there are 5 types of company that could be registered. 1.) Sole partnership 2.) Partnership Company 3.) One Person Company 4.) Limited liability Partnership. 5.) Private Limited company. There are both pros and cons to in the registration of the company. Go what will suit your business in the long run.

  1. Size up the competition: Research the competition well in the market, study your competitors, how they are doing their business. The product you are planning to launch might already be in the market but you could always sell your product with a difference. Even a small change in the packaging could attract buyers. If your startup is service oriented then how your service is going to make a difference in the life of others. Entrepreneurship is not about winning but rather it’s about making a difference. Even though there will be big giants in your competition, however there will be people who are left out the service and that is your chance.

 

  1. Defining your target audience: If you know your customers then you know what to do. Appealing to everyone appeals to no one. When you funnel your target audience then you can design and style everything around it, from the packaging of your product to marketing campaigns, it will be easy to design everything. Connect with your audience, involve them in the business, send questionnaires, and reach out through social media. Involving clients will breed loyalty. There words for you to others will bring in more clients.

  1. Paying yourself: How will you survive during the incubation of your startup? This question has to be answered. You might have best intentions of putting profits straight back into the business, but the fact is, you have to going to eat, drink and put a roof over your head. Plan ahead to how much you are going to pay yourself, cut back on luxuries till there the business rises to certain level.

  1. Impact of business name: Brainstorm on your business name, the brand identity that you are going to develop, should also have an available web domain name. It is the first thing that your customers will see will know you by the name. Consider things like what your name need to say about your business.

  1. Marketing Planning: Every successful business is based upon marketing planning. You are just starting off so no need to plan a big marketing campaign. Start with increasing a small network with social media like Facebook and Twitter. Start a blog, host guest meetings, and reach out to suppliers, fellow retailers, and local business organizations. Be as creative as possible but don’t be a loud mouth. Sometimes exaggerating about product could hamper its image.

  1. Look for Funding: In an ideal situation you would have enough money to self fund your startup, but for the majority of us that would not an option. First try and ask from family and friends before applying for bank loans. Bank loans charge hefty interests, so keep it as your last option. Another way to is to start with a small amount, grow your business into something and get back to others, showing them that your business works.

  1. Develop USP: Build upon the USP (Unique selling preposition) of your product and service. This could deicide your fate as an entrepreneur. Without a USP you will not survive the market. Why people will come to you as they have other options available. Unless and until you are offering something others are not providing. Again remember how your service or product will make a difference in others life. The best USP takes a unique quality and explain how that quality will benefit your customer.

 

  1. Licensing and Legal issues: There are host of legal obligations you need to consider and its best to get at least one session of legal advice. Pre check with local authorities if there is a need to procure a special license before you head with your venture. If your service requires a legal agreement with you and your client then prepare a document that protects the rights for both parties. Dealing with it later may end your business in a graveyard.

  1. When to start: Timing is everything, don’t rush into things and quit your day job. You could use that salary in the short term. Start piecing your business together after office hours and only make that leap when your business could sustain you and cooked enough that you could give it full-time attention.