Tag: fundraising

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Startup

These 5 Fundamentals Of Business Will Help Your Startup Grow!

These 5 Fundamentals Of Business Will Help Your Startup Grow!
These 5 Fundamentals Of Business Will Help Your Startup Grow!

Doing multiple things at the same time and without having a solid business background, being in charge of a lot of things can feel overwhelming. Understanding how to read a balance sheet and a financial statement is just as vital as it is to understand how to make, launch and market the product or offer A-class customer service.

While many entrepreneurs and small business owners hire a business coach, others try to figure out the market trends on their own.

No matter what the nature of the business is, there are fundamentals that every entrepreneur must be aware of to keep their business thriving. Here are five fundamentals that you must know to grow your business startup:

1. Avoid Rushing

While business expansion is on every entrepreneur`s mind, growth and scalability are the product of consistency, persistence, effort, and hard work. However, doing multiple things in a bid to attain instant results can result in a disaster. If your business is in the early stages then do not try to market your product or service to everyone. Target a small niche of consumers first, and then focus on reaching out to a wider audience. Here is a very informative video that will tell you how you can scale up your business. Watch it here:

2. The Regulatory & Legal Framework

Every country has some laws and every business requires certain financial, economic, and legal frameworks in India. Adhering to all the regulatory and legal requirements is required to smooth the working of your business. Some of the legal aspects that your business must include are business structure (corporation, partnership, and sole proprietorship), business name (copyright issues), tax IDs, and permits & licenses.

Understanding the legalities also means managing your rights and maintaining the right to do business. Also, insurance is crucial to any business as the future is uncertain. Having insurance is essential to growing a business at any stage of development.

3. Cash Flow

Understanding the concept of cash flow projection is a vital step because budgeting is the first step that will take you on a successful entrepreneurial journey.  You must be well acquainted with information like how much money your startup can expect to earn. How much profit will be generated, and how much funds will be required to continue day-to-day operations? Set realistic goals and take a cold, hard, fact-based look at what you can reasonably expect in the future from your business.

Have a basic understanding of financing and fundraising options that include angel investors, venture capital, self-funding, crowdfunding, loans, grants, and more.

4. Forge Collaboration & Networking

Networking is one of the most crucial factors that can help a business to grow immensely. Topping the list, every entrepreneur must focus on building an online and offline network. Building an online network with some of the most important key influencers is a really powerful thing to do. This can lead to people sharing your brand with others.

If you don’t have a large circle, go out and meet new people to build meaningful connections. Create a profile on social media and be socially active with influential people. Follow their blogs, and leave comments on their social network profiles.

Engaging with influential people on social media can bring you to their notice. If you work with a business mentor he can also help you build strong connections through his network.

5. Marketing Strategies

Having deep marketing knowledge is a must-know thing for every entrepreneur. Marketing is essential for the growth and profit of any business.

For instance, you have created an amazing product. It can change the lives of your customers, but your customers are not aware that your product exists in the market. Would it be beneficial for your business or your customer? Not exactly! Hence, you will have to invest a considerable amount of time into marketing.

Also, people do not like to make purchasing decisions impulsively. They need to be persuaded, coaxed, and reassured. That’s what a good marketing strategy does. You will need to understand your customers and their buying behavior to sell your product or services in the market.

Entrepreneurs must keep these fundamentals in their mind that will help them to scale up their startup business. Put these to use and with your determination and perseverance, you will see some excellent results.

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses. To know more, visit: www.badabusiness.com

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Business motivation Startup

How PhysicsWallah Became India’s 101st Unicorn

How PhysicsWallah Became India's 101st Unicorn
How PhysicsWallah Became India's 101st Unicorn

Summary: From a free YouTube channel to raising a $100M fund in Series A, PhysicsWallah joins the unicorn club. Read the inspiring story.

“A dream does not become a reality through magic; it takes sweat, determination, and hard work,” said Colin Powell, and we couldn’t agree more.

Many people often complain despite having all the privileges in the world. They blame the situations, consequences, and sometimes people for their inability to achieve their goals.

But, there are people like Alakh Pandey (Founder and CEO, PhysicsWallah) who fulfill their dreams despite life’s challenges.

If you have been living under the rock, then let us tell you about Alakh Pandey and the success story of his Noida-based startup- PhysicsWallah. His Edtech startup PhysicsWallah has become India’s 101st Unicorn. He received funding in its Series A round from investors, including Westbridge and Funding.

Want to know how you can raise funds for your business? Watch this video: 

Many believe that the availability of financial resources makes a person successful. But nothing can be further from the truth. Having a solid financial background can help a person, but one has to walk the road to success on his own.

Born and raised in Allahabad, Alakh loved to learn as a child. He wanted to pursue engineering at the Indian Institute of Technology. But coming from a humble background, he couldn’t fulfill his dream of studying at IIT.

He was admitted to Harcourt Butler Technical University, Kanpur, to study mechanical engineering. To fund his education, Alakh’s father had to sell his house. To help his father, Alakh began teaching JEE/NEET courses at coaching centers during his graduation.

Soon Alakh realized that many students couldn’t afford expensive coaching classes. So in 2016, he started a YouTube channel offering free physics and chemistry lectures for JEE/NEET examinations. In 2019, he was joined by Prateek Maheshwari, an IIT BHU alumnus who founded startups like Night Panda, Pen Pencil, and Moon 2 Noon. They knew they would be fundraising for their startup in 2022.

After a few meetings, Alakh asked Prateek to join him as a co-founder, and in May 2020, they launched the PW app. The app crashed on day 1, not because of a technical glitch but because there were so many downloads. In seven days, there were three lakh downloads.

Born as a free YouTube channel in 2016 with just an investment of about INR 30,000 used to purchase a camera phone, tripod, whiteboard, and a few books, today it is a family of more than six million students and 1,500 staff, who aim to provide quality education at an affordable price.

PhysicsWallah got subscribed by 10,000 people in the first year and 50,000 in 2017. In May 2020, they developed an excellent tech idea for their business model and launched their Android version.

The course structure is divided into two categories: live classes and scheduled recorded lectures. They are further sub-divided into free (on YouTube) and paid batches (on the app).

“It is a very student-friendly app. More than 5.5 lakh students consume 90 minutes of educational content every day. The overall rating of the app on the Google Play Store is 4.8. Moreover, the PW app is probably the only one to conduct the largest live online class,” Prateek claims.

Students can access daily practice problems, one-to-one sessions with mentors, and live doubt sessions by top facilities, including PW founder Alakh Pandey.

From a free YouTube channel to becoming India’s 101st Unicorn, Alakh Pandey has had his shares of challenges. But he was determined to achieve something in his life by providing solutions to others, and he sure did!

Bada Business wishes Alakh Pandey more success in the future!

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Finance

5 Key Things Entrepreneur Should Know Before Applying For A Small Business Loan!

5 Key Things Entrepreneur Should Know Before Applying For A Small Business Loan!
5 Key Things Entrepreneur Should Know Before Applying For A Small Business Loan!

In a report published by Economic Times, “the Indian economy is expected to be a $5 trillion economy by 2025 and the MSME sector is expected to play a very crucial role in this growth story.” The MSME sector in our country has been the backbone of the economy. It contributes around 30 percent to the GDP and employment generation.

With the government`s ‘Make in India’ initiative, this sector is set to play an important role in supporting domestic companies and foreign multinationals to set up manufacturing units in India. Till now, 83 startups have entered the elite Unicorn club which has made India the third largest startup ecosystem in the world after the US and China.

But not every startup joins the Unicorn club. Some struggle to sustain themselves due to the lack of funds. And for an entrepreneur, the constant lookout for sources of working capital is like a nightmare, especially for those who run a small and medium-sized enterprise (MSMEs) with limited assets or collateral, finding different ways for fundraising.

So, if you are an entrepreneur and want to take a loan from a bank or a non-banking financial company, here are 5 things to improve your chances of getting a business loan from a bank or a non-banking financial company:

1. Maintain a Healthy Credit Score

A credit score symbolizes the creditworthiness of a person or business. It is assessed based on the payment history of the individual or business. So, the personal credit score of a person or a business is collected from the multiple institutions that maintain the records of the payments. These records can significantly affect the business’s eligibility for a loan.

If you pay your EMIs regularly and on time then you will have a healthy credit score which indicates that you are financially disciplined and are unlikely to default on repayment. Although the credit score that is required to take a loan varies and depends on the lender, a credit score above 700 will enhance your credibility.

2. Maintain Adequate Cash Flow in the Business

When you apply for a small business loan, the financial lender will investigate your business cash flow (past and future projections). An adequate cash flow will determine if the size of the loan that you are seeking is appropriate. Your previous loan history and existing debts will also be analyzed to determine whether you will be able to pay the loan`s monthly installments without defaulting. To ensure your loan approval, maintain the adequate cash flow in the business.

3. Keep all the Documents Required for Loan Application

One of the most important steps is you keep all the necessary documents ready when applying for a business loan. Keeping all the documents ready and in place will streamline the process and will make things smooth for you as well as the lender.

The following is the list of documents for verification:

  • Identity proof
  • PAN card
  • Address proof
  • Proof of business
  • Business and personal bank statements (last six months)
  • Business and personal tax return records
  • Business’s financial statements
  • Business’s legal documents such as commercial lease, and franchise agreement.

4. Be Insured

Being an entrepreneur involves a lot of risks. Hence, personal or business insurance is a must so that the loan can be paid off in case of any unfortunate event. Your probability of getting your loan approved is directly related to the risks associated with you and your business. The less risky your business is, the higher the chances of your loan getting approved.

5. Know the Best Time to Apply for a Loan

Many entrepreneurs often waste their time contemplating the ideal time to apply for a loan. However, there is no best time to apply for a loan, as the time of applying has minimal effect on the chances of your loan getting approved. Many business owners believe that the best time to apply for a loan is when your company is in the need of finances.

Many startups have to close their operations due to a lack of funds. But with a business loan, you can ensure that your business sustains in the market. There are many government schemes as well that offer business loans at nominal interest charges. So keep the above-mentioned points into consideration when applying for a small business loan.

Are you looking to find solutions for your burning problems? Get practical solutions easily with our problem solving course, action plan, frameworks that are designed to empower you with various business functions.

From finance to HR, Digital Marketing to IT & Sales, find creative solutions to prominent business problems easily. Click here to know how these courses will benefit you: https://www.badabusiness.com/psc

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Business motivation

How To Avoid 3 Common Fundraising Mistakes Entrepreneurs Make That Can Sink A Business!

How To Avoid 3 Common Fundraising Mistakes
How To Avoid 3 Common Fundraising Mistakes

Starting a startup might seem all exciting and there could be times that everything falls into its respective place. You think about starting a business and the customers come knocking at your door since day one.

You raise funds easily and your first pitch to your investors is a rip-roaring success. Everything goes according to the script, even if you didn’t think too much about it. But what happens when you couldn’t able to generate investment for the second round? What happens when things go wrong?

Watch everything that you need to know about Fundraising in this video:

The problem with effortless success is that it does not prepare you for the worst. Some so many entrepreneurs tasted early success in their entrepreneurial journey, but things got a little tricky when additional capital was required. Their numbers were bad and their business looked like a nightmare which put the investors off-board.

So what are those BIGGEST mistakes of fundraising that every entrepreneur must avoid? Here is a list:

1. Catastrophic Mistakes

There are plenty of crucial decisions to be made over the first few raises. Entrepreneurs must decide how to pick the right investor for their business, whether they should try crowdfunding, and how to evaluate their business. The important steps can help to take the business to successful heights. But these are the areas where people can make catastrophic mistakes.

How to avoid it?

The starting point is the exit! What many people don`t realize is that taking investments puts you on a path to exit. Every investor wants to get off in 6-10 years with a return. So looking at the stages to exit is the place from where entrepreneurs should think further than expected. Also, one can take professional help from the best business coach in India.

2. The Correct Numbers

Focusing on numbers is one of the most essential things if you want to ensure that your business sustains in the long run. Many start-up businesses fail to thrive ahead because the founders couldn’t raise a second tranche of money. Numbers are critical even at the pre-revenue stage and therefore it is vital to work on the financial plan. Most founders overestimate the cost and the period it will take to hit targets.

How to practice it in the real world?

So understanding the biggest gap that exists in the business models is between what is being projected and the actual cost bases is very important. Investors typically look for businesses that can understand their cohort financial analysis, customer acquisition drivers, and churn rates. Hence, an in-depth understanding of unit economics and how it can be improved can help any business to sustain itself for a longer time. However, hiring a business coach too can help you navigate the challenges of fundraising.

3. Unpicking Experience

To err is human. And one of the best qualities that humans are bestowed with is their ability to learn from them. But is the fact that someone has made mistakes and learned a valuable lesson from them is necessarily a reason to trust their judgment? Well, certainly not!

Unless humans make mistakes, their learning will never start. However, it is not advisable to carry the burden of past mistakes over their shoulders. Many entrepreneurs carry the weight of their past business mistakes to their present and future. But dwelling on past mistakes results in nothing more than unhelpful introspection.

How to avoid it?

Learning from past mistakes is something that every successful business leader must do. Also, if you take help from a business coach he or she can probably help you to learn from their professional mistakes which is probably every essential.

Fundraising is certainly not easy! Even if you find investors in the first round easily that does not guarantee for the next investment rounds to be that smooth. Hence, only by understanding both the thinking of investors and the pitfalls that may lie ahead, businesses can be better equipped to obtain the funding they need. And taking the professional expertise of a business coach can demystify the investment landscape for entrepreneurs.

To know more about fundraising and investment strategies, take our ‘Entrepreneurship Course’ which is a specialized online business course tailor-made for those who want to pursue their entrepreneurial goals!

Categories
Startup

4 Fund-Raising Mistakes Every Entrepreneur Should Avoid

fundraising

Like it or not, the entrepreneurial journey is not always easy. It also includes the not-so-pleasant step of fundraising. The reason why the journey is not so enjoyable is that it often takes months, if not longer. It also requires you to have resources that you may require to establish your startup company.

Fundraising for a startup is an involved process. There are no set rules or a manual to help you develop a startup funding plan. Every startup begins with a unique idea, vision, and promises that they make to their customers.

According to a report by IBM Institute for Business Value & Oxford Economics, over 90% of the Indian startups fail miserably within 5 years of inception. However, not much research is conducted to show the exact reason behind the failure of the startup.

A startup`s fundraising efforts depend on its ability to make itself and its business ideas appealing. Because it`s not the customer`s, but an investor`s perspective that is crucial.

Though the reason behind the failure varies, the pattern and the list of reasons seem to be repetitive.

To ensure that your startup runs smoothly, we have listed out a list of fundraising mistakes that every entrepreneur must avoid:

  1. Raising too Many Funds

Many startups make the mistake of raising too much money. Initially, they think they need as much money as they can get, but forget that this increases the liability, as well as the equity they will have to give up.

While a nice cushion of startup capital provides a comfortable start, too much money in the system can result in disaster. The expenses at the later stage will be too much, and you might have to go through firing staff, budget cuts, and closing office spaces.

  1. Not Raising Enough Funds

Some entrepreneurs ask for less funding than they require. It is the biggest fundraising mistake that can lead to the shutdown of the startup. Always ask for the amount by keeping your financial requirement as much realistic as possible. Don`t worry about scaring investors by asking for the amount of money you will require for your business.

  1. No Clear Funding Objectives

Having a clear goal in mind is essential to raise capital investment. Figuring out how much money you need to reach your next milestone is essential. From operational costs to essential professional services, determine how much capital you need. Not having a clear idea is another mistake that every entrepreneur must avoid.

  1. Giving up too Much of the Company

One of the worst fundraising mistakes that someone can make is giving up too much ownership in the company. While a deal that includes a good portion of your company might seem appealing, you could end up paying a much higher cost down the road.

Try to keep ownership within the company. Find out other ways to raise or access funds in any other way which is more feasible.