Startup India: All You Need To Know To Get Advantage Of It

Prime Minister Narendra Modi on
Saturday launched the "Start-Up
India Action Plan" that aims to
enable an eco-system to promote
and nurse entrepreneurship across the country. What exactly is the plan and the details of the scheme?
So what exactly is Startup India?
Startup India in an action plan to
develop an ecosystem to promote
and nurture entrepreneurship
across the country. This is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation. The campaign was first announced by Prime Minister Modi in his 15 August 2015 address from the Red Fort.

*What is a startup?

A startup is an entity, private,
partnership or limited liability
partnership (LLP) firm that is
headquartered in India, which was
opened less than five years ago and have an annual turnover less than Rs25 crore. To be eligible for
considering as startup, the entity
should not be formed by splitting
up or reconstruction and its
turnover should not have crossed
Rs25 crore during its existence.

*What are the advantages?

Under the Scheme, no inspection
would be carried out on start-ups
for three years regarding labour
laws. In addition, environment law
compliance is required only post-
self certification.

*Are there financial benefits?

In patent costs, the startups can
claim an 80% rebate. That means, if a startup applies for a patent, the government will fund the defence of the patent, and give rebate of 80% in the fees. The government will also pay fees of the facilitator for helping the startup obtain the patent. Faster patent registration and protection for Intellectual Property Rights (IPRs) is provided under the Scheme. Patent filing procedures to be simplified.Significant reduction in fees for filing Patents.

*What are the advantages for
startups regarding registration?

The government is launching a
mobile app on 1 April 2016 and a
portal that will allow companies to
register in a day. In addition, there would be a single point of contact for Start-up India hub. In addition, there will be single window clearance for clearances, approvals,and registrations.

*What is the government’s role in
boosting start ups?

The Ministry of Human Resource
Development (HRD) and the
Department of Science and
Technology have agreed to partner
in an initiative to set up over 75
startup support hubs in the
National Institutes of Technology
(NITs), the Indian Institutes of
Information Technology (IIITs), the
Indian Institutes of Science
Education and Research (IISERs)
and National Institutes of
Pharmaceutical Education and
Research (NIPERs).

*What are the special benefits for
startups in public procurement?
Startups in the manufacturing
sector are exempted from the
criteria of prior ‘experience/
turnover’ without any relaxation in
quality standards or technical
parameters in public procurement
(by government).

*How much funding is available
for this scheme?
Rs10,000-crore fund for new
enterprises, equal opportunity in
government procurement, a Rs500- crore credit guarantee scheme and easier exit norms. Japanese Softbank, which had already invested $2 billion in Indian startups, has pledged total
investments of $10 billion.

*What are benefits under the
provision on Income Tax?

Under the Scheme, Income Tax
exemption is available for first
three years. However, the startup
will be eligible for tax benefits only after obtaining certificate from the Inter-Ministerial Board, setup for this purpose.

*Is there any exemption in capital
gains tax?

Yes. If the money is invested in
fund of funds recognised by the
government, the investor can claim capital gains tax exemptions. In addition, existing capital gain tax exemption for investment in newly formed MSMEs by individuals shall be extended to all startups.

*What is the eligibility for
startups?

To become eligible as a startup and get a green signal from the Inter- Ministerial Board, the entity should be the one which aims to develop and commercialise, a new product
or service or process or a
significantly improved existing
product or service or process that
will create or add value for
customers or workflow. Products,
services or process, which do not have potential for commercialisation or is undifferentiated or have no or
limited incremental value will not
be considered under the Scheme.
To be considered as eligible as
startup the entity, should be
supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post- graduate college in India an incubator, which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI or be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/Accelerator Angel Network duly registered with SEBI that endorses innovative nature of the business or be funded by GoI as part of any
specified scheme to promote
innovation or have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

Top 10 Reasons Small Businesses Fail

One of the least understood aspects of entrepreneurship
is why small businesses fail, and
there’s a simple reason for the
confusion: Most of the evidence
comes from the entrepreneurs
themselves.
I have had a close-up view of numerous business failures —
including a few start-ups of my
own. And from my observation, the reasons for failure cited by the
owners are frequently off point,
which kind of makes sense when
you think about it. If the owners
really knew what they were doing
wrong, they might have been able
to fix the problem. Often, it’s
simply a matter of denial or of not
knowing what you don’t know.
In many cases, the customers — or, I should say, ex-customers — have a better understanding than the owners of what wasn’t working.
The usual suspects that the owners
tend to blame are the bank, the
government or the idiot partner.
Rarely does the owner’s finger
point at the owner. Of course, there are cases where something out of the owner’s control has gone terribly wrong, but I have found those instances to be in the
minority. What follows, based on
my own experiences and
observations, are the top 10 reasons small businesses fail. The list is not pretty, it is not simple, and it does not contain any of those usual suspects (although they might come in at Nos. 11, 12 and 13).

1. The math just doesn’t work.

There is not enough demand for
the product or service at a price
that will produce a profit for the
company. This, for example, would
include a start-up trying to compete against Best Buy and its economies of scale.

2. Owners who cannot get out of
their own way.
They may be stubborn, risk averse, conflict averse — meaning they need to be liked by everyone (even employees
and vendors who can’t do their
jobs). They may be perfectionist,
greedy, self-righteous, paranoid,
indignant or insecure. You get the
idea. Sometimes, you can even tell these owners the problem, and they will recognize that you are right — but continue to make the same mistakes over and over.

3. Out-of-control growth.
This one might be the saddest of all reasons for failure — a successful business that is ruined by over-expansion.
This would include moving into markets that are not as profitable,
experiencing growing pains that
damage the business, or borrowing too much money in an attempt to keep growth at a particular rate. Sometimes less is more.

4. Poor accounting.
You cannot be in control of a business if you don’t know what is going on. With bad numbers, or no numbers, a company is flying blind, and it happens all of the time. Why? For one thing, it is a common — and
disastrous — misconception that an outside accounting firm hired
primarily to do the taxes will keep
watch over the business. In reality,
that is the job of the chief financial
officer, one of the many hats an
entrepreneur has to wear until a
real one is hired.

5. Lack of a cash cushion.
If we have learned anything from this recession (I know it’s “over” but my customers don’t seem to have gotten the memo), it’s that business is cyclical and that bad things can and will happen over time — the loss of an important customer or critical employee, the arrival of a new competitor, the filing of  lawsuit. These things can all stress the finances of a company. If that company is already out of cash (and borrowing potential), it may not be able to recover.

6. Operational mediocrity.
I have never met a business owner who described his or her operation as mediocre. But we can’t all be above average. Repeat and referral business is critical for most businesses, as is some degree of marketing (depending on the business).

7. Operational inefficiencies.

Paying too much for rent, labor, and materials. Now more than ever, the lean companies are at an
advantage. Not having the tenacity
or stomach to negotiate terms that are reflective of today’s economy may leave a company uncompetitive.

8. Dysfunctional management.

Lack of focus, vision, planning, standards and everything else that goes into good management. Throw fighting partners or unhappy relatives into the mix and you have a disaster.

9. The lack of a succession plan.

We’re talking nepotism, power
struggles, significant players being
replaced by people who are in over their heads — all reasons many family businesses do not make it to the next generation.

10. A declining market.
Book stores, music stores, printing businesses and many others are dealing with changes in technology, consumer demand, and competition from huge companies with more buying
power and advertising dollars.
In life, you may have forgiving
friends and relatives, but
entrepreneurship is rarely
forgiving. Eventually, everything
shows up in the soup. If people
don’t like the soup, employees stop working for you, and customers stop doing business with you. And that is why businesses fail.

M.P Govt would make you crorepati just to establishing ITI.

Government of Madhya Pradesh is giving golden opportunity to those entrepreneurs who wants to be part of skill India campaign.
The state government  to reimburse training fee for 50 percent seats.
Upto Rs. 3 crore subsidy will be
given to private investors for
opening ITI in unserviced
development blocks on capital
expenditure involving building
construction, equipments etc.

Besides, the state government will
reimburse training fee for 50 percent seats. Mission for skill development as envisaged in government’s Vision Document-2018 will impart skill
development training to 6-10 lakh
youths. These amendments have
been made in Technical Education
and Skill Development Policy-2012 to fulfil this objective.
Technical Education and Skill
Development Minister Shri
Umashankar Gupta informed that 5 acre free government land will also be provided for establishment of ITI.
He informed that the government
will also reimburse 50 percent
training cost. Skill Development
Centres will be established in rented buildings permanently.

Two new provisions have been
made in the policy to provide hostel facility to students. Lodging fee of Rs. 1000 per student per month will be provided to trainees living in state-sponsored hostels. Upto 50 percent cost of construction of hostel for trainees sponsored by state government.

Incentive money to be given on
trainees’ placement.

Additional incentive relief of Rs.
3000 per student will be given to
skill development providers who
ensure placement of 50 percent
trainees. Limit of subsidy for
purchase of equipments for skill
development centres has been
increased from Rs. 2 lakh 50
thousand to 25 percent of cost of
equipments upto a maximum of Rs. 10 lakh, whichever is less. Collectors will make efforts to help skill development centre get space in government/private educational institutions or other government buildings on the rent prescribed by collectors.

Things Vijay Mallya Did That You Should Not Be Doing in Your Business

‘The King of Good Times’ Vijay
Mallya seems to be going through
an ironic period in his life. Now
that his ‘good times’ appear to be
far-fetched, I’m sure he’ll welcome
‘mediocre, debt-free times’ with
open arms.
Once termed the Indian version of
Richard Branson is now a ‘willful
defaulter’. Vijay is being chased
by almost every institution in the
country — the banks, regulators
and, even the judiciary. What did
he do? Well, not much! As
everyone knows how big of a
collector he is, he just gathered  a
consortium of 17 loans for himself
from, mind you, state run banks,
and they all add up to a whopping
amount of Rs 9,000 crore. No
biggie, right? And when everyone
thought this would end, Mallya
thought to himself, “Hmm...
Wouldn’t this be a lovely time to
go for a spontaneous vacation to
my country house in London?
Except a couple of loans, I have
given people no reason to think
I’m an absconder. Might as well
pack 7 bags in case I don’t forget
anything.” Okay, jokes aside.

It’s not that Vijay Mallya was
always this bad at making
business decisions (or any
decisions for that matter). It was
his skills and money, which he
very conveniently inherited from
his father that made him the
flamboyant billionaire he is. His
good days include the launch of
Kingfisher Strong in 1999 that
changed the consumption of
alcohol nationally. He then
expanded his range by buying
brands like Royal Challengers,
Bagpiper whisky and Romanov
vodka. He launched Kingfisher
Airlines and bought IPL and F1
teams.
When everyone was busy getting
impressed by his unstoppable
shopping spree, no one
questioned where he was getting
the money for all this? We kind of
went along with him ‘being’ rich.
So how did his story take a 180
degree turn? He made some pretty terrible decisions along the way.
And we made a list so history
wouldn't repeat itself.
When your business
doesn’t make a profit for
8 years, take the hint
This goes completely above me.
Once the second-largest airline in
India, Kingfisher Airlines was
never once able to earn a profit
and it still went on for 8 years. In
2009, the net loss went from Rs
213 crore in 2008 to Rs 1,317
crore. And that didn’t stop Mallya
from continuing. His delusional
optimism of reviving the company
went to such extent that the
accumulated losses as of March
2013 stood at a whopping Rs
16,023 crore. He did cut flights
from 300 to 110-125, but it never
reached the skies Vijay was so
hopeful about.
Lesson- Know when to give up.
Hard work is appreciated but
when it doesn’t yield results, you
should know when to stop.
When bankrupt and you see some money coming your way, how about paying the employees
first Employees maketh the company.
Sure, employer will tell what work
to do but it’s the hard working
members of staff accumulated over the years that will make the work happen. At the end when
company gets a big profit, it’s the
owner that gets it. An employee
gets his regular salary.
Given that and how indebted
Mallya was by 2012, it was his
inability to pay salaries to 1500
employees that stopped the
beleaguered airline to continue
operating. When asked why he
couldn’t he simply answered, “I
don’t have money to pay your
salaries”. Okay, believable. But
then Diageo acquired 27% stake
in United Spirits Ltd. for Rs 6,500
crore in 2013, but no lender or
employee was given a single
penny, without any reasons
stated. Mallya had his own wish
list to fill. He spent Rs 9.5 crore
to get Australian all-rounder
Shane Watson to play for his Royal
Challengers Bangalore Indian
Premier League cricket team this
season. In December 2015, his
birthday became a gala with 200
people and featuring a firework
display and performances by Sonu
Nigam and Spanish pop star
Enrique Iglesias worth 3.5 crore.
The whole party cost him more
than $2 billion. Money well spent,
eh?
Lesson – If you’re in debt, a
monstrous one, and your
birthday is approaching and you
have no plans to give salaries to
your employees, it’s probably
better to take it down a notch.
Do not mess with the
banks If Mallya finds it hard to think in a reasonable business-like
manner, he should probably think
about the welfare of people as a
member of parliament. But how
dare we think about him thinking
about the welfare of people who
pay taxes to state run banks when
he can’t even pay his own
employees. Mallya owes Rs 9061
crore to 17 banks which include
State Bank of India, Punjab
National Bank, UCO, Central Bank,
Axis Bank, Bank of India, Bank of
Baroda, IDBI, United Bank
Corporation Bank, State Bank of
Mysore, Indian Overseas Bank,
Federal Bank and Punjab & Sind
Bank. Mallya claims to have paid
Rs 1,200 crore worth of loan
already.
Hoping that the airline would
revive sooner or later and pay
back the money, banks kept giving
loans and Mallya accepted them.
Finally, when things got out of
hand and banks panicked,
Kingfisher, was declared an NPA by most banks, including SBI, towards the end of 2011 and beginning of 2012.
The only hope for banks is if
Mallya has a change of mind and
decides to pay back banks from
his personal wealth (Mallya has
shares worth Rs 7000 crore in
various companies and lot more in
fixed assets). Chances of that
happening seems as minimal as
Trump leaving the 2016 Presidential debate.

Lesson – A stitch in time saves
nine. The banks, instead of
encouraging Mallya to take loans
even when he was in debt,
should have spent time on
making him understand how bad
debts can be.
Have the courage to face your mistakes Everybody makes mistake. Mallya’s happen to be worth Rs 9,000 crore. In any case, how is leaving the country with no prior notice the best idea he could come up with? We get that he messed up big time, but how about giving an explanation first. We don’t mind him taking all his extravagant vacations but expecting people to
believe that he wants to go to his
country home because he wants to
'see his children' is either him
considering people are stupid or a
bad excuse made in haste.

Lesson – Be smarter about your
mistakes. They’re going to be out
in the open at some point. The
better path will be to accept
them and save the drowning
boat. Right your wrongs always.

(Source:Entreprenuer India)

New Era Of Entreprenuership Through Bihar Entrepreneurship Summit (BES)

To foster entrepreneurship in
Bihar, Bihar Entrepreneurs
Association (BEA) is organising its
third Bihar Entrepreneurship
Summit (BES) in association with
Department of Industries, Govt. of
Bihar, Indo-American Chamber of
Commerce and other national and
international partners of BEA.
Bihar Entrepreneurs Association
(BEA) was founded by young
Entrepreneurs from the state in
2011 to provide a platform for new enterprise, start ups and potential entrepreneurs from the state to establish a successful business and with a holistic aim to make Bihar as an “Enterprising Bihar” by creating an industry and
entrepreneur friendly eco-system in state and building a pool of
entrepreneurs for future. BEA offers an excellent platform for the future entrepreneurs, where one prospect entrepreneur can get a single window service, from advisory services to fund raising support.
BEA’s flagship event BES, will be
organised on March 21, 2016, at
Adhiweshan Bhawan, Old
Secretariat, Bihar.The Summit aims to bring together more than 200 entrepreneurs and leaders of
entrepreneurial organisations from different countries to exchange innovative ideas and establish international networks and partnerships. Abhishek Kumar, Secretary General, Bihar
Entrepreneurs Association (BEA),
said, “ After the successful rejuvenation of dying.Entrepreneurship Ecosystem of Bihar in 2014 & 2015, we have
brought the third summit to boost
startups in the state. We are meeting different stakeholders,
Govt and Non-govt departments,
organisation, entrepreneurs,
investors, individuals for thinking it, designing it and making
it successful this year also. ” Carrying forward.with its last year’s theme of ‘Enterprising
Bihar’ and ‘Wealthy Bihar’, this year, BES is working on ‘Enterprising Bihar’ and ‘Make in
Bihar’ which is aligned to PM Narendra Modi’s ‘Make In India’. The event is estimated to cater to around 80 Mn (8 Cr) youth population of Bihar.BEA is creating
a strong network of entrepreneurs having interest in Bihar.
It is creating a repository of
resources, reports, business plan
that will be helpful for every
member of the association This
year, BES has planned a pre-event
‘BESTALK 2016’ – a small talk can
bring a big change, to bring in
new ideas, thoughts, investments,
technology and innovative
approach for the entrepreneurs of
Bihar.
The pre-event will be held in 10
cities across in India, US, UK and
Singapore. The event will see
participation from people of
diverse backgrounds from the
startup community. BES has
already had its three BESTALK
event at Delhi, Bangalore and
Mumbai. With a vision of Making
an Enterprising Bihar BEA(Bihar
Entrepreneurship Association) with
Nasscom 10,000 startups is
organizing a technical event Code-
A-Thon to aware youth towards
basics technical skills training on
Mobile App development. It is a
part of our Global Entrepreneurship Week
Celebration.On the way to
‘Enterprising Bihar’, the Bihar
government has also played an
important role by laying down the
Bihar Startup Policy, Incubation
Centres, INR 500 Cr State StartUp
Investment Fund, Bihar Startup
Yatra and more of such initiatives.
Register Here

How To Turn "ON" A Sexy & Talented Girl?

In today's prospective being sexy apparently means to be smart & talented as well.
Let's take a look what makes a sexy & talented girl "ON".

Most of the girls grow up dreaming of being famous senators, authors, directors, and
scientists and of marrying
geniuses who are kind and
loving and completely
supportive of their wives'
careers. (It doesn't hurt if
they're rich and handsome too.)

But when asked specifically to porn start turned bollywood actress sunny leone,about what makes smart & talented girls on she replied" There is nothing
sexier than a smart
businessmn. I love a man who is
smart and determined & you can't  find all these other than a smart
businessman.
Here 5 things girls loves about an entrepreneur.

1)Self confidence – a belief in their own abilities and ideas.
Being innovative/inventive – being
able to generate ideas, either for
new products/services or new ways of applying them.

2)Self motivation and determination – the drive to keep going and see things through.
Showing initiative – it is necessary
to have not only the ideas for the
business, but also the detailed
plans to achieve objectives (both
thinking and doing.

3)Analytical abilities – capable of
researching and evaluating each
aspect of the business, from
development, through finance,
production, to marketing and sales.

4)The ability to make decisions and to take (considered) risks.
A focus on results that ensures
products are sold for a profit.
The combination of many of these
skills and qualities, with the right
support, ensures ideas do not just
remain as dreams but become real, viable businesses.

5)The ability to learn from others-
entrepreneurs tend to be good at
networking. They benefit from being members of organisation like the IET where they can learn best practice ideas from others.

How To Be Crorepati In 6 Months?

Nothing is impossible but can
this be done, lets see.
Goal: 1 crore in 6 months
~Rs 16 Lakh in a month (~
means approximately)
~Rs 53 Thousand in a day
~Rs 2220 in an hour
You cannot make that much
money selling your time, that is
working for someone. You will
have to be selling something
great to thousands of people.
Lets say you make a product
named X priced at Rs 200.
(Decent enough I believe).
To make Rs 2220 in an hour
you need to sell X to around 23
people every hour which is
equal to selling to around 552
people in a day to make 53
thousand. If you are selling it
yourself you can only sell for 8
hours (you will be exhausted),
you need to keep selling 24/7.
So you need someone else too
selling it for you (Probably
multiple sellers).
If the market for your product
is just India, you cannot sell it
for 24 hours. When you go to
sleep most of India will already
be asleep. You need to sell X
globally so that your product
can be bought for 24 hours all
around the world.
At the price of Rs 200 you need
to sell around 50,000 units of X
to make 1 Crore. You cannot
make it yourself. You need
someone else to make it for
you. Making a tangible good
priced at 200 and 50,000 units
is a difficult task to achieve and
the production cost will be out
of your budget. You need to
build something intangible
something electronic like a
software or something that can
be sold in electronic form.
Now the question is what will
the product X be? Here are my
2 ideas.
1. Self publish a book. It
should be worth reading
otherwise it wont sell.
2. Write a software that 50,000
people need.
What can you do with the
25000 you have?
Use it for advertising and
marketing. You will need a lot
of it to sell to so many people
globally.
The price you put on your
product determines how many
units you need to sell and for
how many hours.
So your only goal should be to
make a product that
thousands of people need.
Money will follow.
EDIT: Please don't take the
numbers at its face value.
Making that much is not as
easy as it looks like. The
answer is only a plan of what is
possible and not a real
business plan. You need to
consider taxes, commissions,
salaries and so many more
other expenses that come in
between.
The above is not an
exaggeration either. A close
friend of mine has a small
team which builds software
products for Big Companies.
Their pricing is based on per
employee usage. It took them 2
years to build the software and
its been 6 months since they
first started acquiring
customers. They have 3 paid
customers and each customer
has about 200-700 employees.
Their monthly income as of now
is close to 1.5 Lakhs (Before
taxes and salaries). If they get
10 more customers with
200-1000 employees each they
will cross the revenue of 1
crore.

(Source: Quora)