CHANDRABALI SAHA ( 21PGDM027)

INTERNATIONAL MANAGEMENT INSTITUTE KOLKATA

ENTREPRENEURSHIP & INNOVATION

Q1) What are the benefits of registering firm into startupindia program?
The benefits are:-
The procedure is straightforward.
The Indian government has launched a mobile app and a website to make it easier for entrepreneurs to
register their businesses. Anyone interested in starting a business can fill out a simple form and upload
documents to the website. The entire procedure takes place entirely online.
Cost reductions
The government also publishes a list of patent and trademark facilitators. They will offer high-quality
Intellectual Property Rights services, such as patent examinations that are completed quickly and at a lesser
cost. All facilitator fees will be covered by the government, leaving just the statutory fees to be covered by
the startup. The cost of filing patents will be reduced by 80% for them.
Funds are easily accessible.
The government has established a fund of 10,000 crore rupees to provide venture financing to companies.
Three-year tax holiday
Startups will be free from paying income tax for three years if they obtain an Inter-Ministerial Board
certification (IMB).
Tenders can be applied for.
Government tenders are open to startups. They are exempt from the "previous experience/turnover"
requirements that apply to regular businesses responding to government tenders.
Research and development facilities
Seven additional Research Parks will be established to provide facilities for R&D startups.
There are no time-consuming regulations to comply with.
To save time and money, certain compliances have been streamlined for startups. Startups will be able to
self-certify compliance with nine labour and three environmental rules (through the Startup mobile app).
Investors can save money on taxes.
People who invest their capital profits in government-run venture funds will be exempt from capital gains
taxes.

Q2) What are stages involved in Tuckman's 4 stage model of team building?
According to Tuckman's model, as the team matures and becomes more capable, relationships form and the
leadership style shifts to more collaborative or shared leadership. Forming, Storming, Norming, Performing,
and Adjourning are the stages.
In the first stage, that is the Forming Stage the group will agree on the gaols and the work to be completed.
At this location, an orientation will be given to the group members.
In the Storming Stage People express their ideas and disagreements during a storm. At this point, most of
the power and stats are assigned.
In the Norming Stage There will be more intimacy and cooperation amongst the participants during the
norming process.
At the Performing Stage, the focus shifts to the achievement of goals and objectives. At this location, the
team will have more autonomy and decision-making ability.

Q3) What are the avenues of equity funding? Describe each briefly
Equity funding is a type of small business financing that involves raising capital from investors to help fund
your company. Equity funding is the process of generating funds by selling investors shares in your firm.
When a business owner takes out equity financing, they are selling a portion of their company's ownership.
There are various ways of equity funding :-
An initial public offering (IPO) occurs when a firm decides to "go public" and sells its first stock on a
publicly traded exchange like the New York Stock Exchange. Transitioning to a publicly traded corporation
is referred to as "going public." This sort of funding necessitates constructing the offering in accordance
with the Securities and Exchange Commission's criteria (SEC).

 Venture capital firms aggregate money from investors in order to invest in high-risk, start-up businesses.
Wealthy individuals, private pension funds, investment companies, and others may be among the investors.
Because a venture capital firm may have any number of firms and projects competing for money at any
given time, venture capital financing is a competitive type of funding.

Angel investors are high-net-worth individuals who invest large sums of money in enterprises. They are
wealthy individuals or groups seeking a high rate of return on their investments and are picky about the
companies in which they invest.

Royalty finance, often known as revenue-based financing, is an equity investment in a product's future
sales. Because you must be earning sales before being approved for royalty financing, it differs from angel
investors and venture capitalists.

Equity crowd funding Instead of using a platform to pre-sell your product to the community, equity crowd
fundraising involves selling shares of your firm to the audience. In this approach, the proprietors of a
privately owned corporation raise money by selling a piece of their ownership interest, or equity, to crowd
investors..

Q4) What are the benefits of standupupindia scheme of government of India?

The Financial Service Department of India has launched the Stand-Up India Scheme. This scheme is open to
anyone who belongs to the SC/ST minority groups or is a woman who wants to start a business in
manufacturing, personal services, or trade. The firm must be a greenfield venture.
The government helps these people by providing them with a loan for their business ranging from Rs.10
lakhs to Rs.1 crore. If a business endeavour requires finance but is controlled by numerous people, they can
still apply for a loan if one of the owners is a woman or belongs to the SC/ST category and owns 51 percent
of the company.
The benefits of Standupindia scheme of government of India are:-
The Stand-Up India Scheme offers a number of advantages that can make it easier for an entrepreneur to
start their own business. These advantages are:
 The bank's absolute lowest low-interest rate it can provide.
 Reimbursement for up to 3/4 of the project's total expenditures.
 Loan payback time is considerable, with a particularly extended moratorium period.
 Security is kept to a bare minimum.

Q5) What is the evergreening of Patents? In India, how consumers are protected from the practice of
evergreening of patent, in Pharma sector?
The term "patent" refers to a type of intellectual property. The owner of a patent has the exclusive right to
create, use, and sell the product. Evergreening is a term used to describe techniques for extending
monopolies linked with a specific commodity.
Evergreening is a term used in the pharmaceutical industry to describe when branded businesses patent "new
ideas" but are essentially merely minor tweaks of an existing drug. When a patent is evergreened, you are
not looking for a significant therapeutic benefit. You're interested in a company's financial advantage.
Patent evergreening has the following characteristics:
 Due to monopoly, the price of a product cannot be reduced if the patent is evergreened.
 It allows businesses to make more money.
 It's a social concept.
 Patents that are evergreened extend patent protection to their branded medicines.
In India, the patents have a set lifetime (usually 20 years) and after the expiration date anybody can use the
method/product to make their own copies or permitted versions and sell in the competitive market. The
Pharma industry has leveraged this particular attribute by utilizing the expired patents and manufacturing
generic medicines that are quite cost effective and helps Indian consumer be recipient of high quality
medicines at very low prices

Q6) What is the LTV/CAC ratio? What does it signify? What is the optimum ratio?
CAC stands for "customer acquisition cost" while LTV stands for "lifetime value" per client. The LTV/CAC
ratio compares the lifetime value of a client to the cost of acquisition.
One of the most important measures of a SaaS company's health and potential for growth and capital
infusion is the LTV:CAC ratio. It is one of the major computations used by investors to estimate valuation,
in addition to providing insights into resource allocation, customer success, and marketing efficiency. The
LTV:CAC ratio should be a top priority for SaaS leaders.
The optimal LTV:CAC ratio is 3:1. A customer's worth should be three times that of the expense of getting
them. If the ratio is close to one, you are overspending. If it's 5:1, you're not spending enough.
The LTV Ratio is also known as the Life Time Value Ratio.

Q7) How do you define Burn and Runway in financial management of a start-up company?
The burn rate is a term used to describe the rate at which a startup company spends its venture money on
overhead before generating positive cash flow from operations. It's a metric for cash flow that's negative.
The runway refers to the number of months your business can operate before it runs out of cash. This
number isn't just a ticking clock meant to keep startup CEOs awake at night. Throughout your organization's
lifecycle, a startup runway is an essential tool for budgeting, strategizing, forecasting, and fundraising.
Q8) What are the front and back end of a business process? How many stages should ideally be
present in Front end business process?
The ‘front end’ is the part of a company that outsiders frequently see and hear. The sales, marketing, and
public relations (PR) departments are part of the ‘front end.’ A successful business requires a functional,
clean and attractive website to appeal to clients and maintain their interest. Front end process involves
development  of a website is crucial to this concept. The wrong type of development not only creates an
unsightly appearance, but also drives away business. A website’s programming and layout needs to factor in
the business purpose, branding and customer needs to fully support the company itself.
The back end of a business is where the business's activities take place. To put it another way, it's the
component that customers and the general public rarely see or hear. The 'behind the scenes' operations are
referred to as the back end. The phrase refers to the commission paid to independent agents in network
marketing. Specifically, from the commissions earned by agents who hired independent agents.
The services that allow businesses to function are provided by back end departments or offices.
Administration, accounting, personnel (HR or human resources), document handling, and data processing in
communications are only a few examples.
Different stages in a front end process are :-
 Requirement Gathering
 Creating Prototype
 Development
 QA and Testing –
 Maintenance and Support –

Q9) What is an elevator pitch? How to design an elevator pitch? What is the ideal duration of such a
pitch?
A concise, clear, succinct, and precise sales pitch/proposition is known as an elevator pitch. Angel investors
are the intended audience, and one can propose your idea to them and acquire a buy-in for their investment.
An elevator pitch should be succinct, compelling, pique the audience's curiosity, and leave a lasting imprint
in their minds.
It should mirror one’s well-organized mental process and properly communicate one’s peace of mind. The
ideal elevator pitch is no longer than 30 seconds.
Identifying the objective, identifying the target audience, defining the value proposition, practising
sufficiently so that the language is precisely aligned to the message that you want to deliver, leaving room
for future engagement, and following up.
A minute long elevator pitch should suffice if the elevator pitch is intended to convey a B plan to an angel
investor. It should include the problem description, proposed solution, market size and potential, nature of
competition, due diligence and team, resource allocation and schedule, and financial analysis.
Q10) What are the essential component of a Pitch Deck?
The essential components of a pitch desk are :-
Company information- Discussing about the mission and vision of the company.
Issue- This slide examines the market as a possible open door. Perhaps it's a different perplexing issue, or
perhaps one that has already been resolved, but one approach it from a unique perspective. The key to
getting into this segment of one’s performance is to persuade potential financial backers of the issue's
legitimacy, as well as its power and recurrence.
Market Size- New businesses are all about growth. The risky nature of new businesses necessitates that
they have a significant profit potential. This way, the few winners in the startup financial supporter structure
may more than make up for it.
Approach or solution- Present the response as succinctly as one possibly can. It's a bad idea to talk about
the highlights. Talk about client benefits if everything else is equal.
Traction – The overall performance of the company till date
Team-Do the people involved have the requisite skills and knowledge to pull it off? This normally entails
having a specialised individual and an advertising individual with space knowledge and experience for tech
start-ups.
Validation- The thorny topic of item market fit lies at the heart of the startup's success. As a result, is your
response appropriate for the problem at hand?
Competitors- Competitors are frequently a good indicator for fledgling firms in the early stages. This
slide's purpose is to persuade financial backers that the individual’s solution is sufficiently distinct from
current arrangements.