Tag Archives: Fintech startups

Modi’s Boost to StartUps

startup india

Finally the start-up action plan has been revealed by prime minister of India Mr. Narendra Modi in the presence young entrepreneurs. this is good  encouragement for the people who seriously would like to choose entrepreneurship as a career.

Tax Exemption for first 3 years:

Great offer to the start-ups but big eCommerce giants are still posting losses. Usually it would take good amount of time to break even for the start-ups so no profits means no income tax, one out of thousand may get profits in the first three years. Is it an indication to be more innovative and get into profits mode from the year one instead of concentrating size of the business?

Reduction in patent fee:

This enables big number of intellectual property filing and it indicates governments need more IPs to be filed.

Exit in 90 days:

Exit in 90 days is good news so after exit the entrepreneurs can easily switch to other plans.

What’s happening: One out of twenty start-ups enjoying the success, how about the rest ? where are they going? can’t we leverage their skills? If we don’t have the plans to utilize that talent the ecosystem is not fulfilled.

startup india

Sector Specific incubators:

Sector specific incubators creates lot of resources at specific expertise. focused plan of action and specific skill pool can be created it would be easier to get the resources and the support.

A fund of Rs. 10,000 crore to back start-ups:

Great encouragement for the start-ups hopefully it should relax some policies which the traditional banks follow otherwise it is just another SIDBI no big difference.

Innovation programs for the students:

This is a good initiative which enables the entrepreneur mindset at school level and understand the dynamics of innovation and its value.

Rolling out mobile app:                                                                     

The registration process is going to be completed with one application in a mobile app, this is really a good move. every day is so precious for entrepreneurs this hassle free process could save a lot of time and efforts.

Entrepreneurship in biotechnology:

Big encouragement for biotechnology which would be an advantage to sped in research and development it contains 50 bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.

Relaxed norms for the procurement:

Down the track the norms will be relaxed for the start-ups when they participate in the tenders the government is going to consider though the start-ups doesn’t have prior experience and the turnover.

Start-up festival (startup India):

To encourage and showcase the talent, government is going to host one national and one international festivals.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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Check list before starting a start-up

Starting your own business may sound like an undertaking of epic proportions. The truth is, it’s not.

Yes, you’re going to have to work hard, and commit to working on it at all hours of the day, but actually getting set up is simply down to making sure you’ve “checked all the boxes,” which is exactly what this business startup checklist aims to help you do.

I’ve broken the tasks down into manageable categories and included links that will help you complete each stage of getting started.

If you’d like to put yourself through a fast-paced version of the starting a business checklist, be sure to check out our article on Getting a Business Started in 30 Days.

‘We are a Start Up’ is perhaps the most inspirational status to have in the society. Never ever has the world ever looked upon a person who has courage for innovation more than what this generation is seeing today.

Today StartUps are a phenomenon! The idea of startup has attracted youth across the globe in the last one decade and has resulted in an avalanche of new ideas. Startups or Entrepreneurship is perhaps an excellent means for self-employment which has not just widened the envelope of the professional ecosystem but has also given widely established companies means to smartly collaborate with young and vibrant startups so as to intelligently control cost and management.

Now the big question is how to start a start up. Are there any dos and don’ts or is there any manual description for a success story. The answer is there aren’t any hard and fast rules truly but yes, there are a few pointers to ensure the right things are done before you begin an auspicious journey.

As the word of caution goes, the idea of Startups can sometimes be a mirage, and one can easily be entrapped in the big idea. Smartness lies in differentiating the mirage and reality. And so here goes the list of 5 check-ins before you start a startup

1. Find a good business idea

A good business idea isn’t just one that turns a profit. It’s one that’s a good fit for you personally, for your target market, and for your location. You’re going to be in business for the long haul, so you really should pick something you can live and breathe.

    • Identify your strengths and weaknesses
      • Conduct a SWOT analysis on yourself
    • Come up with a business idea that caters to your strengths
    • How to start inventing things (or how to find something to invent)
    • Define what success looks like for you
    • Do your research: What are popular businesses today?

2. Test your business idea and do market research*

The adage goes, “ideas are a dime a dozen”—but what about good ideas? How do you really know you’ve hit upon something that’s going to work on all levels?

We use the lean planning methodology to figure this out. Of course, you may also want to start by getting out and talking to real people—do they really want a fancy Basque restaurant in their neighborhood or is another donut shop going to be more to their taste?

    • Define the “problem” your business is solving
    • Summarize the “solution” your business offers
      • How urgently do people need what you are selling?
      • Will your business continue to be relevant as time passes? How will you adapt?
    • Define your target market
      • Define your ideal customer
      • What’s your market size?
      • How easy is it to acquire a customer, and how much will it cost?
      • Figure out the best place to set up shop
    • What advantages does your solution have over your competitors?
      • How much money and effort will it cost to deliver value?
      • Do you know your industry?
    • Outline the team that will help you execute your idea
      • What key responsibilities will each team member have?
      • Will team members share ownership of the business?
    • Create a basic financial plan
      • What up-front investment will you need before you can begin?
      • Estimate your basic expenses and forecast sales to ensure that you can make a profit with your business
    • Map out business milestones or goals and when you plan to achieve them
      • How long will it take to get to market?
    • Validate your idea
      • Interview potential customers to ensure that they have the problem you are trying to solve
      • Interview potential customers to validate that your solution is something your customers will pay for
      • Determine if your initial price points will work for your customers

* While we advise students and new entrepreneurs to do market research before they start, we’d like to clarify that you should not let “doing market research” hold you up if you already know your market. The reality is, the vast majority of real startups are driven by people who know their market from experience and who are ready to bet the farm on it! Market research does not have to be a part of the business planning process. According to Tim Berry, “If you know your market, move on!”

3. If you’re seeking funding, you may need a formal business plan

While you don’t need a 40-page business plan in order to get your business up and running, if you’re seeking funding, institutions like banks may ask for one.

In this case, you can ask if a “one-page pitch” (also known as a one-page business plan) will suffice, or if they’d like a traditional business plan with a detailed financial section (this is the part they pay most attention to).

Complete each of the plan’s sections, as listed below:

    • Write your executive summary
    • Write the company overview
    • List your products and services and the problems they are solving or needs they are fulfilling
    • Flesh out your target market details
    • Create a marketing and sales plan
    • Outline key milestones and metrics
    • List your management team
    • Create a financial plan
    • Include an appendix
    • Create an elevator pitch

If you need a jump start on your plan, you can download our free business plan template or check out our library of business plan examples.

4. Brand your business

A strong brand is the key to customer loyalty and higher sales. If you think it’s just for big business, think again; a brand is critical for businesses of all shapes and sizes.

This is where all the hard work pays off. Now you know a bit more about your target audience, you’ve got the opportunity—through your brand—to grab their attention. And of course, to have fun doing it!

    • Choose a name for your business or choose a brand name you know you can trademark
    • Decide on your “brand message,” also known as your unique selling proposition or value proposition
      • Develop a tagline
      • Identify your brand’s “tone of voice”—the heart and soul of all your written communication, your voice is what you say and how you say it
    • Define what your brand looks like
      • Choose a color scheme
      • Choose your fonts
    • Create a logo

5. Make it legal

Before you can open shop and comfortably start doing business, you’ve got to make sure you’ve checked all the necessary boxes. Have you registered your business name? Applied for local and state licenses? Obtained an Employer Identification Number? You are going to have to do some things “by the book.”

    • Decide on a legal structure or business structure
    • Register your business name
    • Register for a domain name that matches your business name
    • File for trademark protection if you will use your business name to identify a product or service
    • Obtain any Central and state licenses or permits that you need
    • Find your Startup Consultant if you think you may need help

start up

6. What’s the Vision for start up:

start up

Most Startups begin with an idea and without a vision. It’s true. If one thought a vision statement of ‘being a world class company or a leading institution’ is a vision statement, then one has terribly got it wrong. Vision Statement is undoubtedly the larger picture but it is beyond.

It’s about having variable milestones. It has to be broken down into parts, like the 2-year vision. 5-year vision, 7-year vision, and the 10-year vision. And it’s important to write down the realistic number attached to each and one of those milestones. But remember to be realistic about the number which means one has to do sufficient background work in understanding if the business is scalable to that level or not. This can give you a reality check.

7. Who’s the Mentor:

Mentoring is one of the most important aspects which usually is undermined. The great author Napolean Hill speaks about the importance of Master Mind group, who are a group of individuals who can help you with your VISION statement. So get together a Master Mind Group, it can be someone with a technical expertise, someone from a Management experience, someone from an accounts background. Even if you have to pay them hourly for their consultancy, do it. Identify them and build a rapport and seek help.

8. What’s your Business Contributing to:

Now it’s essential to understand not just who will need your product or services but whose lives you change or influence or make a difference? We live in a very interdependent world; it doesn’t matter who you may be. So one needs to get together what VALUE one is adding with their products or services. The VALUE added can be at a business-level, emotional-level, basic-level or even luxury-level. Understanding of what use your product will be is of utmost importance.

9. What’s the Resource:

The resource is perhaps the last thing a startup looks at as most times a start up is on the hunt for prospective clients or opportunities which give them money or materialistic ends. A great opportunity without the right resource is like water surrounded on four sides without a drop to drink. There can be two kinds of resource – PEOPLE and TECHNOLOGY.

One has to ask oneself of who are the PEOPLE who are going to drive your business further and what’s the expertise level required.

Tip: Remember a committed and open-minded average skilled professional is any day a better asset than a lazy and arrogant talented professional.
Technology is solely dependent on the capital available and the investment.

Tip: Spend on the essentials and not on flamboyance.

10. What’s the Business Model:

start up

Finally after evaluation of your vision statement, advice from mentors and what your business is contributing to, one arrives at the Business Model. Yes! Before you start, you need to put on paper what your Business Model is. In fact, you can even be somebody with a fantastic business acumen, you still need to put on paper what your business flow is.

Divide your Business Model into touch points.

For example, a digital marketing company can have 6 touch points. Approach a client -> Get the Job -> Advance Collection -> Execute the Job -> Final Delivery -> Final Payment. And so one can write down n-number of touch points based on the nature of one’s business.

The aforementioned article is written to give you a sense of direction as it has been written with years of experience and experimentation. Neither the article nor the author enforces any of these views on you. It is most certainly to contribute to your success and prosperity.

Hearty Good Luck with your Start Up

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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Indian start-up economy has the potential to become one of the biggest tech markets in the world

India has the potential and infrastructure to become one of the biggest tech markets in the world!

With +4.500 tech startups, India is the third-largest tech startup hub in the world already. In our view the increase of quality startups and initiatives by the Indian government indicates that the time-to-market to get involved is just right.

The last 2 years were driven by consolidation and transition in India, where tech startups went from a gold rush-like mentality into an ecosystem with more quality instead of quantity. We saw the spectrum of innovation by startups expanded across many verticals of the Indian economy. We think India is in full speed to scale up the startup ecosystem, creating new ways for wealth and job creation.

On the one side through government support (i.e. startup hubs, incubators, grants for startups etc.) and on the other side boosted by collaborations with big and established companies and Venture Capital.

India has around 1.3 billion people and a huge human capital. From our experience young Indians become more and more educated and have a great work ethic and innovative mindset. They have the potential to not only create new innovative startups regarding Drones, Waste Management, Artificial Intelligence, AR and VR but also scale established business models i.e. in e-Commerce.

Still, we see that many of the startups lack a long-term vision and were created with the goal to have a quick exit to larger companies. In our opinion copycat ideas, poor strategy and lack of funding and scalability affect the startup ecosystem.

A lot of startups try to replicate Western business models that don’t have a market in the country. Also, early stage startup still have limited access to capital and getting an investment without a working product is difficult. Many startups that raise funds have the challenge to keep the cash burn rate low.

Altogether, India reached the point where the advantages outweigh the disadvantages and the development of the country ensures a sustainable value creation in the tech startup sector in the long-term. In the short-term it is still a high-risk but also high-reward industry.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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Union Budget 2017 for Startups

The much-awaited Union Budget 2017-18 seems to have maintained a right balance between populism and fiscal prudence. However, a few sectors like insurance and e-commerce felt disappointed as they hardly found a place in it.

The much-awaited Union Budget 2017-18 seems to have maintained a right balance between populism and fiscal prudence. However, a few sectors like insurance and e-commerce felt disappointed as they hardly found a place in it. With an agenda to Transform, Energize and Clean India, the budget of this year focused primarily on the long-term benefits of the country.

The formal inauguration of the “Startup India” campaign last year and the demonetization drive followed by an aggressive push towards digital economy made the start-ups and SMEs to expect highly from the upcoming budget. Though most of their expectations remained unfulfilled, a few measures have been taken, which can be quite beneficial for the startups.

Let’s see what the Union Budget 2017 has offered to incentivize and encourage start-ups in India.

Timeline for Tax Break Enhanced to 7 Years

Under tax concessions for startups, a new policy is implemented in which the profit-linked deductions are extended from 3 years out of 5 years to 3 years out of 7 years. Most startups struggle to earn profits in the first few years after coming into operation.

However, we expected that the tax exemption period should have been extended from current 3 years to at least 7 years. It is observed that startups begin to experience growth after the completion of initial 1000 days. So, if the government had lifted the tax burden for at least 7 years, it would have been beneficial for the startups to create room for more growth.

Timeline to Claim MAT Credit Extended to 15 Years

MAT (Minimum Alternate Tax) is the minimum amount of tax that a company has to pay irrespective of its size and turnover. The amount of MAT a company pays depends on the registered book profit of the company (20% of the book profit). However, a book profit may be different from the net profit of the company as it doesn’t take into account certain deductions or exemptions. Therefore, in many cases, even if a startup is making book profit, it may incur net losses too. So, we expected the government to exempt startups from the MAT at least for 5 years.

Contrary to our expectation, no measure to relax the MAT limit is taken by the government. Instead, the timeline to claim MAT credit has been extended to 15 years. Till now, the MAT credit could be carried forward up to the 10th assessment year. Though tax experts welcomed the move, but it would have been better for startups growth, had the government abolished or at least reduced the rate of Minimum Alternate Tax (MAT).

The Condition in Respect to Carry Forward of losses Relaxed

Currently, the startups must have a continuous holding of 51% voting rights in order to carry forward losses. This condition has been relaxed in the budget 2017. From now onwards, in order to carry forward losses, only the founder(s) need to hold shares.

A company is allowed to carry forward losses for up to 7 years and then set off against profit after 7 years. But the carry forward of losses was allowed only if there was 51% shareholding intact in the period of loss. However, recently, with an increase in investments and buy-outs, the startup ecosystem experienced significant changes. So, this measure taken by the government is indeed beneficial for the startups.

What Else We Expected but Didn’t Come True

Most startups provide ESOPs or Employee Stock Ownership Plan to their employees additionally with their salary. ESOPs are beneficial as the startups do not earn much profit in the initial years. Hence, ESOPs are provided to compensate for the low amount of salary the employees receive. But as the company grows and the employees want to liquidate the ESOP, a significant amount goes out as tax at the time of selling out the shares. Therefore, we expected that ESOPs will be made tax-free in the hand of employees. Unfortunately, no such measure is taken by the government to incentivize on the practice of giving ESOPs for the financial benefit of the startup employees.

Moreover, currently, any capital gain arising out of shares held more than a year is tax free, if STT is paid even at the time of selling shares. But in the budget, it was announced that Long Term Capital Gain benefit can only be claimed if STT is paid at the time of acquisition of shares. This will have a negative impact on the start-ups which are going to be listed in the coming years.


The finance minister also made an announcement in the budget to abolish FIPB. Instead, the government should have taken serious measures to strengthen FIPB in the direction of providing better funding to startups or new age companies.

Startups are the backbones of economic growth leading to more job creation in the country. Hence, more tax reforms and benefits were expected for the growth of startups in India.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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To support women founded start-ups, Facebook launches SheLeadsTech

Social networking site Facebook on March 1st launched a new initiative, SheLeadsTech, to support women-founded or co-founded startups and said it will also be expanding its SheMeansBusiness program that supports women-led small businesses. SheLeadsTech will give women-founded or co-founded start-ups access to a year-long program that provides tools, mentorship and resources.


The announcement which came ahead of Women’s Day aim to bring women on board India’s digital revolution in a bigger way.

“Technology is an enabler for entrepreneurship. It is small and medium business that will create growth if India has to grow along with jobs in the next few years…We want to ensure we help this growth,” said Ritesh Mehta, Facebook’s head of economic growth initiative,India and South Asia, told Mail Today. Facebook also said that India is missing out on a potential 15.5 million new businesses Uber Technologies CEO Travis Kalanick and 64 million additional jobs by not addressing the challenges facing women who want to start a business, quoting figures from a study it released on March 1st.

The study, conducted by Development Economics and YouGov on behalf of Facebook, reveals that at least four in five women in India would like to start a business. If 52 per cent were empowered to start a business today, the figures can be achieved by the end of 2021, it said.

Secretary to Ministry of electronics and information technology, Aruna Sundararajan, said India’s startup incubators are women unfriendly. “We are trying to put together a small startup programme for women in technology. I’m trying to see whether we can have women interfacing this so that you actually feel valued.” She also said the government is trying to forge deep partnerships with platforms like Facebook, Google, Intel and Cisco to see how women’s programmes can be bettered with technology.

As India’s economy expects to become a $5 trillion economy by 2025, a major impetus is being given to strengthen the backbone of India’s economy -the small businesses sector.

If we were to harness the still largely untapped potential of women’s entrepreneurship and provide them greater support, it could lead to more jobs being created, economic growth and more diverse and representative small business communities. We see amazing examples of how digital can be the equalizer on Facebook every day,” said Ankhi Das, Director of public policy, India, South and Central Asia.

India is among the largest user base for Facebook and its affiliate WhatsApp. The country contributes 168 million users to Facebook’s 1.86 billion global users, and 200 million to WhatsApp’s 1.2 billion monthly active users.

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SIDBI-CSFB pact to help MSMEs avail loans at cheaper rate

Lender to small industries SIDBI has signed an agreement whereby it will handhold the Capital Small Finance Bank (CSFB) to enable it to provide loans at a concessional rate to MSMEs.

The Memorandum of Understanding signed between the Small Industries Development Bank of India (SIDBI) and CSFB is aimed at promoting and strengthening the micro, small and medium enterprises (MSMEs) through a multi-pronged strategy comprising of concessional funding at MCLR of CSFB (presently 9.6 per cent) under refinance from SIDBI.

The MoU also envisages joint financing/co-financing of MSMEs for capital expenditure under ‘SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises’, popularly known as SMILE, at a concessional rate of 9.60 per cent by SIDBI along with working capital finance from CSFB at competitive rate, would be pursued proactively.

The resources and expertise of SIDBI in MSME financing and outreach of CSFB in MSME clusters of Punjab are proposed to be leveraged.

“This initiative of SIDBI and CSFB will go a long way in creating a conducive ecosystem for MSME desirous of accessing concessional/composite funding in the State of Punjab.

“Further, SIDBI and CSFB shall also explore ways and means to enhance reach and use of facilities provided under the Government of India’s Stand up India scheme and the Stand up India/Udyami Mitra portals,” SIDBI stated in a release.

Besides, the MoU also envisages that the promotional and developmental activities of SIDBI could be taken up jointly with CSFB for the benefit of MSMEs in the areas of skill development, technology and financial linkages, human resources development, energy saving, etc. and for promoting digital financial inclusion initiatives.

“CSFB has taken several steps in the last year to proactively reach out to the micro and small enterprises and has accordingly been expanding it branch network continuously. The MoU with SIDBI shall give a further boost to the MSE segment by reducing cost of credit for the small borrowers,” CSFB Managing Director SS Samra said.

Source: Times of India

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WhatsApp for Small Business & SMEs

WhatsApp has introduced its revamped Snapchat-esque Stories feature, but that’s not all the Facebook-owned messenger has up its sleeve.

The company has now announced it’s working on a new commercial messaging platform specifically for businesses

WhatsApp for Business is all about small and medium businesses, WhatsApp co-founder Brian Acton reportedly said, “where you have a small employee count and have a large customer count, and the goals are very different.”


The new app will reportedly launch first in India, where there are over 200 million WhatsApp users. Many US companies are looking to get a slice of India’s growing digital market — most recently, Microsoft launched Skype Lite in the country last week. Facebook has also tried its hand at penetrating India, last year attempting to bring its Free Basics imitative to the country.

WhatsApp, which has over a billion active users, is also the latest to take a play out of Snapchat’s playbook, last week introducing feature that lets you post photos and videos that disappear after 24 hours. Facebook, which bought WhatsApp for $19 billion, is trialling a similar feature over in Ireland.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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