Tag: startup cost

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Business motivation

Restaurant Startup: Does it Really Burn A Hole In Your Pocket?

Aspiring restaurateurs are often faced with the question as to how much it really costs to open a restaurant. The question is very important because fulfilling your passion for owning a restaurant does involve some serious money which depends on basically your location and the scale of the restaurant. 

This article is going to revolve around the various costs and expenses that you may face while trying to set up your dream restaurant. Costs that vary from renting a place/buying a place to paying the salary of the staff. If opening a restaurant business has been on the cards, then this guide to calculate your expenses will prove to be a godsend for your business.

Let’s Talk Money

How much do you think the average cost of opening and setting up a restaurant is? Can’t figure it out? Let’s bifurcate it together and proceed step by step.

Owning/Renting A Place

The most difficult part is to finalize the locality where you would want to set up your restaurant. Then comes the size of the restaurant which will have you decide if it is going to be a cozy, small, and casual setup, or is it destined to be a high-end posh restaurant. These two factors will affect your finances hugely. The better the area, the costlier the place. Doesn’t matter if you have a generous budget or a stretched one, there is always a place that you can find accordingly. If you are thinking of renting a place, the average cost would be somewhere between Rs 30,000 – Rs 1,00,000. However, if you are looking to buy out a place, you will have to spend a much higher amount that will vary from Rs 50 lacs to Rs 1 cr.

The Cost Of Acquiring Licenses

The most tedious task and equally time-consuming task is to get all the necessary permits and licenses to run a restaurant business without any hassles. You will be required to have a

FSSAI License: It will cost you around  7500/- for the central license and Rs. 2000- Rs.5000 for the state license. 

Health/Trade license: This license will cost you Rs. 500 – Rs. 50,000 depending on the requirements of your restaurant.

Eating house license: On average Rs. 300 will be the cost to get it and it’s valid for three years.

Shop and Establishment License: The cost ranges from Rs. 200 to Rs. 4,000 per year. The number of employees and the location of the restaurant plays a big role in this license.

Music License: The annual fees range between Rs. 3,500 – Rs. 10,000. This license is issued by the Phonographic Performance Limited (PPL).

Operational Costs And Staffing Costs

You will always want your restaurant to run as smoothly as possible without any glitches. However, to ensure that you need to get good quality equipment for your kitchen so that the operations are never halted due to the quality of the equipment such as grills, stove, mixers, etc. The appliances would cost you an average of 5 Lcs. Also, the staff you intend to hire to run your restaurant will take up to 20-30% of the total revenue you generate.

Raw Material Costs

Please keep it in mind that the salary of your staff and the raw materials costs are recurring expenses, The raw materials will cost you around 30-40% of the total revenue that your restaurant generates. Getting good quality and fresh material will cost you even higher, hence, plan accordingly.

Marketing and Maintenance

If you do not market your business in the best possible manner, you will cost it its potential customers. If you have built something for a particular type of audience or crowd, it becomes your duty to let the prospect know that you are open to business. Depending on how much and what way you promote your business, the cost will vary.

We hope this gives you a clear idea of how much it actually costs to build a restaurant from scratch. It is important to know that there will always be some random expenses that will raise their heads occasionally and you need to be prepared. Nonetheless, based on the above details, we wish you luck chalking out your business plan. 

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Startup

BYJU’s, Medlife, Big Basket And More; Start-Ups That Bloomed During COVID-19

The pandemic unfavourably affected small, medium, and micro-enterprises across the world. India, known as the third-largest start-up ecosystem of the world, hasn’t been saved from it either. In this crisis time, start-ups are facing an umpteen number of challenges to sustain their business in terms of cash flow, resources, etc.

During this downbeat scenario, a few Indian start-ups are blooming well. These companies are rapidly growing and making a benchmark for other start-ups who are struggling during this time. As per a survey done in February in 2020, many Indian start-ups had made growth as a priority over profitability, but thanks to COVID-19 this strategy had taken a back seat.

But few start-ups in some sectors have bloomed well during this period. Here are the top three sectors which flourished during this pandemic time.

Growth of E-learning Platforms

We all know e-learning platforms were flourishing before the COVID -19 hit us, but after the first phase of lockdown in March 2020 it gained 3 times surge. Platforms like BYJU’s, Whitehat Jr, Unacademy, Toppr, Vedantu have flourished to a great extent. Due to schools, college shuts digital platforms seem to be the best option for a source of education, therefore, the usage of digital education increased. As per the reports that e-learning firms, which have seen monthly visits increased from 102.2 million to 128.8 million in April.

This is one sector that continues to see great growth in these unprecedented times. As lockdown started, these platforms made a smart move by making free access to students, which lead them to new users at a double rate. BYJU’s saw 7.5 million new users since it started free access to content. Similarly, Unacademy, Toppr, and Vedantu noted similar growth in March itself.

Booming E-pharmacy Startups

In current times E- pharmacy has become the backbone of our country under lockdown to stand against the pandemic. Online delivering pharmacies like Medlife, 1mg, and PharmEasy is making for a significant role in providing contact-less medicine delivery.
As people trying to avoid going out, therefore, more and more people are buying medicines and essential supplements from these platforms. Referring to the high demand for online pharmacies, they have store consumer data, which helps in planning various public health policies.

With the aid of the onset of the technological era, consumers buy medicines form E-pharmacies like Medlife, 1mg, and PharmEasy have their app, which sends frequent reminders for medicines too.

Flourishing Grocery Startups

When pandemic limited us in our homes, there were only a few industries that were expected to grow. One of them is grocery delivery companies like Big Basket, Grofers, and now many new players have also come into the picture like Amazon, Flipkart, Snapdeal, Zomato few others have entered the grocery delivery space. As more consumers are trusting buying essential items online rather than stepping out of the home, which made the doubled the demand of the consumer.

Grocery delivering apps Big Basket and Grofers have admitted that they have already duplicated the number of daily deliveries compared to before the pandemic hit us. Due to the high requirement for online grocery startups are ramping up with brands and manufacturing partners to meet consumer demands. The high demand for supplies made a high demand for a workforce which leads to new job openings.

It’s true that the future is a little foggy for many but, few startups are shining even in the cloudiest of weather. Once the storm of COVID-19 storm passes these startups, will be standing tall on the grounds. These are the top three sectors that are surviving during this time, and our government of India has been developing new strategies and action plans for startups.

It’s true that the future is a little foggy for many but, few startups are shining even in the cloudiest of weather. Once the storm of COVID-19 storm passes these startups, will be standing tall on the grounds. These are the top three sectors that are surviving during this time, and our government of India has been developing new strategies and action plans for startups.

 

 

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Startup

Vedantu to Nykaa; 5 Startups That Raised Amid COVID-19

The new normal in today’s world is with the least physical contact, thanks to the COVID-19 pandemic, when everything is unpredictable similarly, seeing the change in consumer behavior is natural. Fighting with odds, many Indian startups continued to raise funds in tough times.

That’s true, the pandemic has unquestionably changed the funding scene in India, but truly has created many new possibilities for those startups that can adapt to the current environment. There are some startups that have already shown a trend- defying growth, which created a benchmark and ray of hope to many startups.

In current time two situations were going on in the startup ecosystem, one where a handful of startup able to raise funds, and the other hands a few startups is still struggling. Hence, we are going to list a few startups which successfully raised millions of funds and blooming in their sector.

Vedantu

The ed-tech sector has come into the spotlight since the lockdown started. Vedantu is one of the online class venture, founded in 2014 by Pulkit Jain, Anand Prakash, and Vamsi Krishna. They provide online tutoring classes from class 1st to 12th and even for medical and engineering exams.

As per this ed-tech startup has raised $100 million and valuing the company at 600 million. The startup owner claimed they have recorded growth of 220% in the period of lockdown, with 2 million students subscribed.

InCred

Mumbai based NBFC InCred, founded in 2016 by Bhupinder Singh, which started with operations with consumer lending then expanded into small business lending in 2017. As per the company stated, they have a loan book over Rs 2,000 crore.
As per the latest reports of April 2019, the digital lending platform has successfully raised Rs 600 crore in led by the Dutch development finance institution FMO.

Dunzo

Dunzo is a hyperlocal delivery app founded in 2015 by Kabeer Biswas currently, Dunzo has a firm place in the hyperlocal delivery space their services available in eight cities Bengaluru, Mumbai, Delhi, Hyderabad, Chennai, Gurugram, Pune, and Jaipur. Initially, they started with delivering individual sources, but with time they expanded in categories like groceries, fruits, and vegetables, fish and meat, etc.
In the current scenario, Dunzo has raised $28 million, and their funding round led by Google and Lightstone Fund. If we speak about an existing investor in the company is Google, and it was their first investment in an Indian start-up in 2017.

Nykaa

Mumbai – based e-commerce platform of fashion and beauty, founded by Falguni Nayar in 2012. They have played an instrumental purpose in shaping the beauty and lifestyle industry through its curated product in The Indian market in a great price range.
As per the latest reports in may Nykaa raised Rs 66.64 crore from their primary investor Steadview Capital. Later on, this round of investment company became valued at $1.2 billion, therefore, entering the startup unicorn club.

Unacademy

Another Ed-tech platform Unacademy founded by Gaurav Munjal, Hemesh Singh, and Roman Saini in the year of 2015. The platform was built for educators and new-age learners by focusing on producing educational videos and providing interactive classes to students. During the outbreak of pandemic and complete lockdown, they bulged with 20,000 Free Live Classes on their platform.

Recently, Unacdemy entered the Unicorn club by raising $150 million by Japanese conglomerate SoftBank valuing it at $1.45 billion, in just six months. Which got to them the second Ed-tech startup in the country after Byju’s.

In the gloomy sky, these startups’ growth acted as the silver lining as in these difficult times, not only these, but many more startups from Delhi, Mumbai, Banglore, and other cities were able to raise funds through hard work. We believe after reading the article you find motivation and see the silver lining in these puzzling times.

 

 

Categories
Startup

Checklist for Your Dream Restaurant!

If you are planning to get into the food business in India, you should start by acknowledging major factors like time, efforts required, and of course, the capital and the market research. Above these, you have so many options for you to enter into the food and restaurant business.

Beyond these, you have so many options for you to inscribe into the food and restaurant business. Simply start preparing the checklist of the requirements and the resources needed for any restaurant idea to go on the floor. Once you make your mind to get into this business, you require to keep a close eye on the next basic steps.

Let’s have a look at the top 4 steps required to be on the top list of your checklist.

Legal requirements
Any commercial enterprise, first and foremost, requires to have legal documentation. For opening restaurants, you need to take in the right knowledge regarding the licenses you need. For opening restaurants, you need to get permission from the local bodies and a license for the area where you want to set up your restaurant.

Along with this, you need to have an FSSAI license for making food safer for the customers, a GST registration, and a business registration to file the ITRs.

Cost to Evaluation
While setting up a restaurant, you need to look at the cost as it is a major factor when it comes to opening a restaurant. These costs are to be further divided into food costs where you need to make an inventory of raw material daily.

Another most significant factor for evaluating cost is infrastructure costs, this is one time during or periodical an investment like rent, interiors, kitchen equipment, and engineering cost.

Fixing Technology Requirements

Technology is your best friend in this fast-paced world. When you open a restaurant, you will need some or the other kind of software which will facilitate you to ease your operations and management process. Careful investment in technology will help you add meaningful value to your job.

Technology not just helps to manage or operate a business; it also helps you connect with your customers in the best possible ways. Therefore, make technology the most significant factor to work on while building your restaurant.


Marketing is important

To gain traction for your restaurant, online or offline, you need your marketing and promotion game stronger than ever as it will bring cash flow in your business. Invest your hard work in marketing your restaurant and menu in the best possible way.

In terms of digital promotion, you need to register your business with all websites where you can attract your customer. This will not only increase visibility but also will give an option to your customers to order online. Don’t forget to be your most active self on social media and run as many campaigns as possible. When you think about offline promotions, you need to have posters and pamphlets with some attractive offers and discounts on them.

When moving forward with any business, you need to have a checklist that could facilitate you to ease out this mammoth of a task. We hope after reading this article, you can be one step closer to your dream restaurant. Start creating a checklist to give wings to dream restaurant.

 

 

 

 

 

 

Categories
Startup

What is a Startup? How Do Investors Add Value To Startups? All You Need To Know

Startups | Representational Image (Photo Credits: Pexels)

India is now becoming the world’s fastest growing startup ecosystem. In order to understand a startup ecosystem, one needs to know what a startup means! A startup is a young company that is usually founded by one or more entrepreneurs to develop a new and unique product. These entrepreneurs launch a service and bring it to market for people to use and benefit out of it. Startup, as the name suggests, begins with initial funding from the founders, their friends, families, relatives, among others.

Startups are becoming very popular in India. A start-up is basically a company or project begun by an entrepreneur to seek, develop, and validate a scalable business model. Startups face high uncertainty but some of them do go on to be successful and influential and become unicorns. The startup process can take a really long period of time and can go up to years to be successful. Hence, sustaining effort is required.

Over the long term, sustaining effort is especially challenging because of the high failure rates and uncertain outcomes. One needs to understand the basic concept that an entrepreneur is an individual while startup is an entrepreneurial team, and needs to work accordingly to achieve the desired goals.

How do Investors add value to Startups?

According to Startup India Portal, which is India’s largest online entrepreneurship, the investors, particularly venture capitalists (VCs) add value to startups in a number of ways. The Startup India Portal platform allows startups to network, access free tools & resources and participate in programs & challenges.

  1. Stakeholder Management: Investors play a key role in building up the startup. They help by managing the company board and leadership to facilitate smooth operations of the newly started firm. In addition, their functional experience and domain knowledge of working and investing with startups imparts vision and direction to the company.
  2. Raising Funds: Investors are best guides for the startup to raise subsequent rounds of funding on the basis of stage, maturity, sector focus etc. and aid in networking and connection for the founders to pitch their business to other investors.
  3. Recruiting Right set of people: Sourcing high-quality and best-fit human capital is critical for startups, especially when it comes to recruiting senior executives to manage and drive business goals. The venture capitalists, with their extensive network can help bridge the talent gap by recruiting the right set of people at the right time.
  4. Proper Marketing of the Product: VCs assist with marketing strategy for your product/service.
  5. Merger and acquisition opportunities: The venture capitalists should be alert about the merger and acquisition opportunities in the local entrepreneurial ecosystem to enable greater value addition to the business through inorganic growth.
  6. Organizational Restructuring: As a young startup matures into an full-fledged established company, the venture capitalists help with the right organizational structuring and introduce processes to increase capital efficiency, lower costs and scale efficiently.

In India, the Government, under the leadership of PM Narendra Modi, has started and promoted Startup India initiative to recognize and promote startups. This initiate is aimed to develop Indian economy and attract talented entrepreneurs.

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Startup

12 Costs That Every Small Business Startup Has to Incur

स्टार्टअप
स्टार्टअप

Know all the Costs involved in Starting Up?

In India, many entrepreneurs underestimate the costs associated with starting-up a business. So apart from having a great idea or a product, one integral part of setting up a startup is planning regarding all the costs involved. These costs should are an integral part of financial planning. Cost of equipment’s, company registration, software, staff, website building, business cards, etc. play a key role while starting up the business. 

Here are 12 different types of start-up costs you need to address before you start a business:-

1. Registration cost/Legal entity

  • First and foremost, you need to register your business as a legal entity with the state you are operating in.
  • Registration of your company can vary upon the states, so before taking any legal step, you need to know the costing of all the procedures.
  • To register your business, you can visit the state’s official business registration site to get an estimate or you can also hire a legal service company to work out the business start-up cost. If you want to fast track the procedure, such agencies can help you out with that too with an extra cost involved.  

2. Equipment

  • In any business, equipment plays an important role. Almost every business needs some sort of equipment in the starting phase. For example; if you have opened a restaurant then you need a stove, dishwasher, cooking utensils, furniture etc.
  • You can always get financing options for these types of equipment. You can also opt for a business loan by your bank or a local lender.
  • If your equipment or machinery needs regular maintenance then add that cost too on a half-yearly or yearly basis. 

3. Office space

  • Having a store or office space can get pretty expensive, whether you buy it or take it on rent, it is a hefty part of your small business start-up cost.
  • If possible, you should try to work from home or work out of a co-working space in the beginning. This is much cheaper than renting or buying an office space. It is also a good way to connect with other people and exchange ideas.
  • If you are a retailer or you have more employees than renting a space can be a better option.

4. Inventory

  • If you are in manufacturing, distribution, wholesale or the retail industry than you need inventory to sell.
  • Stocking your business with sufficient products before launching is very important to meet the potential customer’s demand.
  • Inventory start-up costs can vary on the size and type of your business.
  • Before opening your business, try to have price quotes from multiple vendors which will help you bargain the price and lower your inventory start-up cost.

5. Marketing

  • According to a research, a new business spends at least 5% of its budget on marketing.
  • Marketing might include banners, business cards, brochures, postcards, signage, hoarding, newspaper ads, etc. This helps you in bringing more publicity but also increases your expenses at the same time.
  • It is good that we live in the age of social media; so many advertisements can be done there for free.
  • You can use Facebook, Twitter, Pinterest, LinkedIn and other social media platforms to advertise your start-up at a very low cost. 

6. Website building

  • It is always important to have a website for your business that looks professional.
  • Most of the buyers start searching for a product on the internet which can lead them to your website which means more business for you.
  • Nowadays, it is very easy to build a website, thanks to services like WordPress and GoDaddy.
  • You just need to register your website or domain name that demands a small fee yearly.
  • After getting yourself registered, now you need to have a CMS (Content management system), to build your site which also includes a monthly or yearly subscription.

7. Furniture and Office supplies

  • For office structure, you usually need computers, chairs, desks, and landline connections for your employees.
  • But apart from the basic furniture mentioned above, add in printer, ink, cabinets, water cooler, air conditioner, and other supplies in your start-up cost.
  • Try to avoid special perks like coffee and snacks which is an additional cost although the cost varies on the number of employees you have and the business structure you are operating in.

8. Utilities

  • When you start a business, your customers might come in late but your bill payments start even before you can imagine. You are also responsible for paying the internet, landline, water, gas, and electricity bills apart from the rent and furniture cost.
  • Include the installation cost of these services as well in your start-up cost.

9. Hiring and Payroll

  • 25%-45% of your budget goes in salaries even if they are not bringing in much revenue in the beginning.
  • Payroll also includes other benefits like; stipends, commissions, overtime payment, travel allowance, and bonuses.
  • Always remember that your employees will also grow over the time as your business starts growing or picking up.

10. Insurance

  • Just like the way you protect your health, your house and car with an insurance policy, you need to protect your business too.
  • There are many business insurances in the market, analyze your business type to take the right insurance plan. 

11. Taxes

  • While you are planning for all the costs that are involved in running a business, it is important to keep the taxes in account too.
  • Apart from the taxes, you need a charted accountant to handle your finances. The CA can either be hired or outsourced depending on your budget, but his fees also will be a part of the expenses.

12. Travel and shipping

  • If you are in a consulting business or you need to travel a lot then this expense should also be a part of your small business startup cost.
  • If you are in the shipping business which includes packaging, postage and other shipping costs than you have to be very careful with your budget.
  • In this case, you can always take the help of a third party or a governing party to ship your product. Try to get a quotation from multiple vendors to eliminate the extra start-up cost. 

Budgeting is the most stressful part of starting a business, but having a realistic idea of costs and how much money you need to build a cash reserve will help you in the long run. So, Good luck and start with a bang!