Tag: Make in India

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Startup

5 Effective Ways To Raise Funds For Your Startups Without Investors in 2025

5 Effective Ways to Raise Funds for Your Startups Without Investors
5 Effective Ways to Raise Funds for Your Startups Without Investors

Establishing a business from the scratch is not so easy. It is quite difficult when it comes to strategizing, managing, and thinking about different segments of the business. And to build it without the initial capital investment from the investors can be even harder.

Though the process might seem time-consuming, starting a startup in India without the burden of investors can yield benefits that outweigh the cons. If you are an amateur, you can take help from a motivational speaker.

Here are 5 ways in which you can do fund-raising for a business without investors:

1. Keep Your Job as Side Hustle

Since starting a startup business in India without investors can leave you with a lack of funds, it is always a cool idea to continue with your day job. This will give you the advantage of saving your salary.

2. Make the Most of Government Loan Schemes

Whether you want to start your business without an investor or are unable to find one, you can still fulfill your entrepreneurial dream, thanks to government schemes. To focus on ‘Make in India’, the government has started a few loan schemes.

Schemes like CGTMSE, MUDRA, and Stand-up India can provide you with collateral-free debts and can get access to low-cost capital. To get expert guidance, you can work with the best motivational speaker of India.

3. Use your Revenue to do Fund Raising

Not all startups are pre-revenue generators. Many startups have customers and monthly revenue, so why not plan smartly and use that money to grow faster. A Revenue Based Loan can turn your revenues into growth capital and can help you to do fund-raising without an investor.  To know step by step process of fund raising, watch here:

4. Go for Crowd Funding

You can also raise money through crowd-funding. Crowd-funding refers to the funds from a large number of people who contribute with a small amount of cash. The process of crowd-funding is typically done via online platforms.

5. Do Everything for Your Business

A business is just like a baby! Hence, be ready to give all your time and attention. Not just that, you must be willing to make sacrifices to free up your time.

As an entrepreneur, you may want to taste success as soon as possible. However, patience is the virtue that makes any business successful. You may feel challenged at the initial stage of building a start-up. If not prepared, you may have to suffer losses too. Hence, get all the information and knowledge from the industry experts.

We know what you are thinking! 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 courses like Business Coaching Program, Problem Solving Courses (PSC) & Lifetime Membership (LTM).

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Business motivation

9 Things To Consider Before Starting A Small Export Business In India

9 Things to Consider Before Starting a Small Export Business in India
9 Things to Consider Before Starting a Small Export Business in India

Exporting a wide range of goods and services, India is the 14th largest exporter in the world. According to a recent report by HSBC, India is set to become one of the top 5 exporters in the world by the year 2030. As the country has embraced the concept of ‘Make in India’, exports from India are set to take a speedy course and will contribute to the GDP of the country.

The government of India has always been a great supporter of exports, but the pandemic has opened a new opportunity for aspiring small business owners who wish to start their ventures in small towns. The widespread use of the internet has also helped the export and import business to flourish.

If you are planning to start your own export business in India, you can attend our Free Masterclass by Dr. Ajay Sahai, Director General & CEO, FIEO. You can download the Bada Business Community APP to attend the class on February 22nd, 2022, Tuesday at 6:00 PM.

Here are nine things you must know if you are thinking about starting an export business:

1. Select Product

If you have already thought about the item you want to import-export then it is okay. Otherwise, some products are prohibited from being exported. So, ensure that your product is not one among them. India is known for mainly exporting agricultural products. You can also select a product in your area and export them by keeping the quality of the product into consideration. It is an important factor in receiving future orders and reviews from customers.

2. Analyze your Target Market

It is very important to understand your target audience when thinking about selecting an export business. Research the market size, quality requirements, competition, payment terms, etc. when you select an overseas market.

You can also enquire about a few export benefits available in the market for a few countries under the Foreign Trade Policy. Export promotion agencies, Indian Missions abroad, and your acquaintances can prove helpful in recognizing the initial market, as well as, expanding it.

3. Select Business Name & Logo

Before you decide to register and look for buyers for your products, you should select a name and logo for your business. You need to think about your business`s name so that you can register it.

4. Registration

Like any legitimate business run in India, you will need to get registered. It could be registered as a sole proprietorship, in partnership, private limited company, or LLP. Hire a lawyer for any legal advice and to help you with the legal proceedings of registering the business.

5. PAN

Businesses must obtain PAN (Permanent Account Number) from the Income Tax Department.

6. Bank Account

Open a current account at any commercial bank that is authorized to deal in Foreign Exchange.

7. Obtain Importer

Exporter Code (IEC) Number An exporter/importer in India is required to obtain an IEC number as per Foreign Trade Policy. It is a key business identification number that can be applied for online at www.dgft.gov.in. After the introduction of GST (goods and service tax), the IEC number is the same as the PAN of the firm.

8. Obtaining RCMC

RCMC (Registration Cum Membership Certificate) is a membership certificate issued for 5 years by Export Promotional Councils (EPCs) or Commodity Boards of India. It is proof that your business has been registered with the council/board and is useful when applying for any benefit or concession under Foreign Trade Policy like duty drawback, duty credit scripts, etc.

9. Get covered through ECGC

Dealing with an overseas client involves risks from the insolvency of the buyer/country. These payment risks can be covered by ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd), a company wholly owned by the Government of India which provides export credit insurance support to Indian exporters under the Ministry of Commerce.

To get in-depth knowledge and information, attend our Masterclass on the Bada Business community app for free.

The idea of managing the 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 courses like Problem Solving Courses (PSC) & Leadership Funnel Program (LFP Bada Business).

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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.

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MSME Startup

NTPC Power Plants to Offer Lands for Industrial Parks of MSMEs Under ‘Atmanirbhar Bharat’ Initiative

NTPC power plant. (Photo Credit: Facebook)
NTPC power plant. (Photo Credit: Facebook)

New Delhi, September 22: With an aim to boost to the government’s vision of ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives, National Thermal Power Corporation Limited (NTPC) has thrown open a vast land bank within its power plants to Indian firms willing to set up industrial parks and manufacturing facilities.

The country’s largest power producer has also invited expression of interest (EoI) from companies and MSMEs for setting up energy-intensive manufacturing plants. The plants for which the EoI has been issued include bulk chemicals, geopolymer, cooling & heating solutions, aluminium, mineral processing (ceramics, tiles, pottery, brick, glass etc), metallurgical and metal industries (foundries, forging, alloys, heat treatment, steel rerolling, etc).

The NTPC in its statement had stated that the pilots would be set up in the NTPC Thermal Power plants at Solapur (Maharashtra), Kudgi (Karnataka) and Gadarwara (Madhya Pradesh). Adding more, the company statement said, “These industrial parks will be subjected to requisite approvals from respective state and central government. NTPC will process these approvals based on responses received in the EoI.”

Apart from this, NTPC’s power plants across the country have evolved into economic centres with robust infrastructure system in place. With this, NOTC is exploring ideas to improve utilisation of land within its plant locations for enhancing economic activity.

NTPC, though it initiatives, will also provide reliable electricity supply at competitive prices to industrial parks. Along with this, adequate water supply, accessibility through road and rail network, robust connectivity with internet lease lines, accessibility to the township, medical facilities and the local market would also be provided to the SMEs. However, NTPC will enter into a separate agreement with prospective entities for allotment of spaces.

Categories
Finance MSME Startup

98% Exporters, Especially from MSMEs, to Benefit Under Merchandise Exports from India Scheme, Says Union Commerce and Industry Minister Piyush Goyal

Union Minister of Railways, Commerce and Industry Piyush Goyal. (Photo Credit: PIB)
Union Minister of Railways, Commerce and Industry Piyush Goyal. (Photo Credit: PIB)

New Delhi, September 2: The Union Minister of Railways, Commerce and Industry Piyush Goyal on Tuesday said that 98 per cent of the exporters — especially Micro, Small and Medium Enterprises (MSMEs) — will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs 2 crore per Importer Exporter Code (IEC) from September 1 to December 31, 2020.

Issuing a circular, the Union Minister took to Twitter and wrote, “98% of exporters esp MSMEs will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs. 2 Cr/ Importer Exporter Code from 1st Sep to 31 Dec 2020. This will remove uncertainty & protect genuine exporters while ensuring Make in India-Make for the World.”

Here’s what the Union Minister for Commerce and Industry said:

The notification stated, “In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, 2015-20 and the enabling para 3.13 of the FTP, the Central Government hereby makes the following amendments in the Foreign Trade Policy 2015-20 with immediate effect.”

The notification spoke about the insertion of two new paragraphs — 3.04A and 3.04B — in the Foreign Trade Policy. As per 3.04A, the total reward which may be granted to an IEC holder under the Merchandise Exports from India Scheme (MEIS) shall not exceed Rs 2 crore per IEC on exports made in the period September 1, 2020, to December 31, 2020.

Adding more, the para says those who have made any export with LEO date during the period September 1, 2019, to December August 31, 2020, will not be eligible for submitting any claim for benefits under MEIS for exports. However, para 3.04B says benefits under MEIS will not be available for exports made with effect from January 1, 2021.

Categories
Process & Business Expansion Sales Startup

Steps Taken by Modi Government to Give Relief to MSMEs, to Accelerate the Wheel of Economy That Slowed Down Due to Lockdown

Business in India | Representational Image Only (Photo Credits: Pexels)

The government has said that the recent steps that it has taken are aimed at giving relief to MSMEs which will in turn accelerate the wheel of economy in India. Union Minister for Micro, Small and Medium Enterprises Nitin Gadkari, during a webinar said that the changing the definition of MSMEs, Scheme of Fund of Funds, Champions portal, extended credits to MSMEs will certainly accelerate the wheels of economy which had slowed down due to lockdown in the wake of the coronavirus pandemic.

During his address, Gadkari informed that loans of about Rs 1,20,000 crore have been disbursed to MSMEs out of Rs 3 lakh crore announced in the relief package. Discussing about the problem of delayed payments, he said that instructions have been given to all Ministries, Departments and PSUs to clear pending bills of MSMEs within 45 days. He also urged all Chief Ministers to issue directions for clearing MSME dues by their State/UT Ministries/Deptts and PSUs on priority. The Minister added that we are closely monitoring the complaints lodged at SAMADHAN Portal also.

Gadkari said this while addressing a Virtual MSME Conclave organized by FICCI Karnataka State Council. The Minister further appealed to all the stakeholders to do away with all kinds of fear and negativity and assured that government is doing everything possible to make the country a super economic power. The Minister informed the participants of the webinar that we are working on the idea of a Land Bank and Social Micro Finance Institution which will be very helpful for entrepreneurs and persons who want to run small shops and businesses.

While discussing Atmanirbhar Bharat Abhiyan as envisaged by Prime Minister Narendra Modi, Gadkari said that handloom, handicrafts, khadi industries and agro-based industries should be encouraged especially in 115 aspirational districts in India. He said planning will be taken up for special policies for agricultural, rural and tribal sector because they have huge potential of creating employment.