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Startup Guide
Have a big idea? Dreaming of �Kab Banega Crore pati�?
Driving down the road�and flash! You hit upon an idea that could change the world. An idea that will put you into the annals of history as a pioneer�but how and where do you start? I�ll help you find out.
Start-ups usually start off with
a big idea, but merely a 'great idea' is not enough to get a business
going. Without the backing of a sound venture capital, the business
may not even take off!
• The venture capital
The 'seed capital' is provided by a venture capitalist, which comes
in the form of first-stage financing for a start-up. They also provide
funding for expansion of firms with proven business potential.
It is essential that start-ups paint the right picture to the prospective
venture capitalist. The need to identify and fulfil the following criteria
becomes necessary.
• Identify the lead investor
When a company is on the lookout for venture capital subvention, one
of the first things that needs to be done is to identify a lead investor
who will pitch in 25-100% of the required investment. This saves the
company a lot of time spent in waiting for smaller investors who may
prove to be more burdensome than helpful. Small investors tend to be
less profitable as they make heavy demands on money and time in the
long run.
• Form an advisory board
A good way of tapping the right vein of investors is to constitute an
advisory board comprising of industry bigwigs and financial luminaries.
This will enhance your credibility and increase your chances of getting
the attention and the funds you need.
• Take care of legalities
Raising money always brings securities laws into play. For this
a lawyer's advice will prove to be invaluable. Hiring a lawyer, right
at the inception will save you from a lot of snags later on.
•Parley effectively
Rather than focussing on technical nitty-gritty and the market trends,
it is best to focus on the customer benefits while introducing the concept.
Don't work out a concept just to impress the VC, instead concentrate
on the workability of the idea.
•A viable business plan
The final step is the preparation of a comprehensive business plan.
This will have to be shown to the investors once the initial meeting
with the investors is successful. A Business model, Revenue model and
other details need to be explained in this stage.
Successful companies, banks and industrialists are ready to provide Venture Capital and incubation services.
An innovative idea, powered by a strong financial backing and services that are highly beneficial to the customer will ensure success to start-ups who are keen on making it big!
