What are the major models of financing for a startup business?

 Generally for most of the startup businesses, financing a major issues. Since start ups are generally laid by the entrepreneurs who are new in the field of business and thus most of the time, they run of capital and fund.

And, for establishing a successful start up, there is always need for a big amount of capital. As most of the entrepreneurs are not having sufficient capital, they requires to raise capital for their dream start up.  

Here in this guide, we are listing some of the major model of financing for start up businesses. These are:

  1. Bootstrapping
  2. Angel investor
  3. Vendor Capital funds


  1. Boot strapping

Boot strapping is the method where the entrepreneur manages or attempts to raise the fund required for the establishment of their start up by their own. In this method, the individual manages to build and establish their company using their personal finances or with the help of the operating revenue of the company.

The common mistake that most of the entrepreneur does is making unnecessary expenses in marketing, equipments, and offices which they actually do not afford. This is basically a wastage of the capital in the inception of the business which finally lead to wasteful and complacency expenditure.

By using the personal finance or saving for the establishment of the start up business will help the entrepreneur for the cautious approach. This method of boot strapping will curb the wasteful expenditure and will help in enabling the promoter to be on their own toes all the time.

Bootstrapping is further divided into following categories:

  1. Trade credit
  2. Factoring
  3. Leasing
  4. Trade credit

This is the method where the entrepreneur gets their first order/ raw material on credit in order to launch their venture. In general, most of the suppliers are reluctant to give trade credit to the start up businesses.

In this case, either the entrepreneur itself or the chief finance officer should pay direct visit to the office of the supplier. There they should explain their financial plan to the suppliers and convince them to give their first order on credit so that they can launch their start up venture.

In this system, the owner or the finance officer can also consider taking half of the first order on credit and the balance on delivery. The key in this method is to get the goods shipped and sell before paying for the raw material.

Another approach is to borrow for paying for the raw material, but it will include the interest cost as well. This is why the trade credit is one of the best approach for reducing the amount of requirement of the working capital. This approach is specially better for the retail operations.

  1. Factoring

Another bootstrapping financing model is Factoring where accounts receivable of the businesses organization is sold to a commercial finance company for raising the capital of the company. In general, factoring is perform on non notification basis where the customers are not notified that their account have been sold.

This method is having both of their merits as well as demerits. In the process of factoring, there will be reduction in the cost for the business operations, and it will also help in reducing the cost associated with the maintenance of the account receivable like book keeping, credit verification, and collections. When we compare the cost and payable to the factor, in most of the cases, this method proved to be fruitful.

This method also helps in reducing the internal cost of the company as it frees up the cost required to tied the receivables. It is great method for raising money and for keeping cash flow.  

  1. Leasing

It is another method to take the equipment on lease instead of actually buying it. This will help in reducing the purchase cost and thus the capital requirement and will also help the lessee to claim for the tax exemption.

This is a great idea to lease equipments like Van, or bus, orany photo copy machine or any other equipment instead of buying it which is often much expensive for the start up businesses.

  1. Angel Investor

  Angel investors are those who invest in the start up ideas of the entrepreneurs. In general, most of the time the angel investors are either somebody from the family or the close friend. But there are many investors also who might show interest in investing in new start up business with good and profitable looking business plan.

The angel investors are those who focuses on helping the entrepreneurs to take their first step instead of looking for the possible profit that they might get from the business. They are much different from the venture capitalist.

They are kind of informal investors, seed investors, business angels, or the private investors who inject capital for the start up businesses in exchange of the ownership equity or convertible debt.

There are some angel investors also who invest via the crowd funding platform and build a network of the angel investor to pool in capital. These investors are basically those who use their own personal saving unlike the venture capitalists who pool money from many other investors and place them in a strategically managed fund!

  1. Venture capital fund

These are basically the type of funds which are made available for the small businesses as well as the start up firms with exceptional growth potential. These are basically the money which are provided by the professionals who along side management invest in young and rapidly growing companies which are having the potential to develop in a significant economic contributors.

The bottom line

So these are some of the best financing model for the start up businesses!       

What are the risks for the operations in foreign exchange market?

 The operations in Foreign exchange markets are exposed to number of risks. Here in this guide, we are going to discuss the operations in foreign exchange markets which are exposed to number of risks. But before understanding the types of risks for the operation in foreign exchange market, first one should understand what are the operations in foreign exchange market.

The foreign exchange operations include buying and selling of different currencies against euro. The operations in foreign exchange market include the foreign exchange interventions, and other operations like sale of interests which are derived from commercial transaction and the foreign reserve assets.

The foreign exchange interventions includes the unilateral or the concerted actions, and centralized or decentralized actions.

Concerted or Unilateral action

In the case when any general guidelines or the formal agreements are absent, in that case, the euro systems will decides where the conduction of the foreign exchange intervention is necessary.

The euro system is allowed either to conduct such of the foreign exchange intervention on its own which is unilateral action or as the part of the coordinated intervention which also involves other central back as well which is known as concerted actions.

Centralized or decentralized action

In the centralized manners, the ECB will carry out the interventions while in the decentralized manners, the NCB on the behalf of ECB will carry out the interventions.

What are the risks for the operations in the foreign exchange market?

The foreign exchange risk exposure can be classified in three broad categories. And, these are:

  1. Transaction exposure
  2. Translation exposure
  3. Economic exposure

Transaction exposure

The transaction exposure risk on the operations in the foreign exchange market can be defines as the exchange rate on the outstanding obligations that existed before exchange rates changed but were settled after the exchange rates changes. This is the result why it deals with cash flow that is generated from the existing contractual obligations.

For example, In the case when any Indian exporter has a receivable of $10,000 due in six months. And, in the case when the value of the dollar depreciates relatively to the rupee, the exporter will need to face the cash loss. While in contrast the exporter can also exjoy benefit in the case when the value of the dollar appreciates in relative to the rupee.

With the above example, we can understand that wherever the company has firm foreign currency denominated receivable or payables, the company is subject to the transaction exposure and their settlements will directly impact on the cahsflow position of the company.

The transaction exposure measures the changes in the value of the outstanding financial obligation which are incurred prior to the changes in the exchange rates but due to be settles until after the change in the exchange rates. This is wy it deasl with the change in the cash flow which is arised from the existing contractual obligations.   

The transaction exposure is one of the most common kind among all the exposures. Another example explaining the transaction exposure in the company that exports to US, and the export receivables are also denominated in USD. While doing the budgeting, the company has assumed USDINR rate of 62 per USD. But by the time of the exchange, inward remittance arrives. USDINR can either move down to 57 which will ead to the wiping off the commercial profit for the exporter or can rise leading to the increase in the profit of the exposure as well.   

 These kind of transaction exposure can occur in the case when the firm is having foreign currency denominated receipts or payments.

Translation exposure

Another name for this exposure is Translation exposure. This kind of exposure refers to the gain or the losses which are caused by the translation of the foreign currencies assets and liabilities into the currency of the parent company for consolidation purposes.

The accounting exposure or we can say the translation exposure is significant for the accounting derived changes in the equity of the owner to occur because of the need for the translation of the foreign currency financial statement of foreign subsidiaries into a single reporting currency to prepare a worldwide consolidated financial statement.

The risk of the translation exposure arises because of the need for the translation of the foreign currency asset and liabilities into the home currency for the purpose of the finalization of the accounts for an given period. The best example to understand the translation exposure is the treatment of the foreign currency loan.

For example, consider a company who has taken a medium term loan in order to finance the import of the capital goods which worth 1 million dollars. And in the case when the import materialized, the exchange rates tat time was USD/ INR – 55. The imported asset was therefore capitalized that time in the books of the company at the rate of 550 lacs rs through the following accounting entry:

Debit Fixed  assets – 550 lacs Rs

Credit dollar loan – 550 lacs rs.

In the ordinary case where it is assumed that there is no change in the exchange rates, the company will have the provided depreciation on the asset valued at Rs 550 lacks for finalizing the account for the year in which the asset was purchased.  

But in the case, if the exchange rates at the time of finalization f theaccounts moved to USD/ INR – 58, now the dollar rate need to be translated at Rs 58which will lead to the translation loss of 30 lacs RS. This is translation loss which will reduce the profit of the company.

Economic exposure

This can be defined as the decline in the economic value of the company because of the change in the exchange rates.

The bottom line

So these are some risk that the Operations in foreign exchange market are exposed to!


How to establish mutual funds and what are the benefits of investing in mutual funds?

 In order to establish a mutual fund, there is need for the registration with the Securities and the Exchange Board of India before collecting the fund from the public. A similar set of regulations are governing the mutual funds and all the mutual funds are subject to inspection and monitoring by SEBI.

There is always a need for the sponsor in order to establish the mutual funds. The sponsor needs to be a corporate who either alone or after combining with another corporate can establish a mutual fund after completing all the formalities which are prescribed in the Mutual fund regulations by SEBI.

The role of sponsor in the process of the establishment of the mutual fund is like a promoter who provides the initial investment and helps in appointing the trustee. The sponsor for the establishment of the mutual fund requires being a corporate in the business of financial services for minimum 5 years and should be financially sound and be fit in the eyes of SEBI.

The mutual funds can be established either as a trustee or as a trust which lies under the Indian Trust act and the trust should be in the form of a deed. The deed shall be executed by the sponsor in favor of the trustee named in the instrument of trust. The trust deed needs to be duly registered under the provision of the Indian registration Act, 1908. It should contain the clauses which are specified in the third schedule of the regulations.

The SEBI approve the asset management company who further manage the affairs of the mutual funds and it requires operating the multiple schemes of such funds. One can establish the asset management company as a Limited Liability company with the minimum net worth of not less than 10 crores.

The sponsors need to contribute at least 40% to the net worth of the Asset Management Company. The Trustee requires holding the Mutual Fund’s property in trust for the benefits of the unit holders.

AS per the SEBI regulations, at least 2/ 3 of the board of Trustees or the directors of the Trustee Company should not be associated with the Sponsors. And, the 50% of the AMC also requires being independent.

Also, the mutual fund needs to appoint a custodian as well in order to hold the valid certificate of registration which is issued by SEBI for having the custody of the securities held by the mutual funds under different multiple schemes. And, in the case of dematerialized securities, this can be done by the Depository Participants. Also, the custodian requires being independent from the sponsors and the AMC.

What are the advantages of investing in the mutual funds?

Following are some of the advantages of investment in the mutual funds:

Professional management:

The best part of the mutual fund investment is that these funds are managed by top professionals and highly skilled managers along with the research team as well.

Mutual funds

There is feature of diversification in portfolio which helps in reduction of the risks.

Convenient administration

The mutual funds carries no risk associated with the administrations of the share transfers and also, many of the mutual funds provides the features of the services in the form of Demat which is helpful in saving much of the time as well as efforts of the investors.

Better returns

This is the main advantage of the mutual funds which inspires investors and many mores to invest in mutual funds. All the medium as well as the long term mutual fund investment plans often provides the investors with the high returns in compare to all other investment methods. And, from last multiple years, Mutual funds have been performing well and is providing the investors with the higher returns and better investment options.

However, despite of their general excellent performance, the investor’s needs to cautioned as more the chances of the returns, more will be the chances for the risk as well. Thus the investors require to be cautioned that these high returns riding on the IT boom should not be taken as regular returns. There is need that they should look at their average returns which are provided by the mutual funds particularly in the equity schemes during the last couple of years.

Low management cost

The mutual funds are not allowed to increase their cost beyond the prescribed limit which is 2.4% and any extra cost of management is to be borne by the AMC.


In most of the open ended funds, the liquidity is provided by the repurchase or the direct sales by the mutual funds. And, in the case of the close ended funds, the liquidity is provided by listing the units on the stock exchange.


As per the SEBI regulations, Mutual funds need to comply them and requires disclosing their entire portfolio on the half yearly basis. However, several mutual funds used to disclose their portfolio on the quarterly or even the monthly basis as well.

Highly regulated

All over the world, mutual funds are highly regulated, and in India, it is regulated by SEBI and as per the strict Mutual fund Regulation which is helpful in providing excellent protection to the investors.

Other benefits

Mutual funds are great option for the investment where the investors can get the regular withdrawal and the systemic investment plans as well as per the requirement of the investors. Also, the investors are allowed to switch from one scheme to another without any load.

The bottom line

So this is how to establish mutual funds and what are the advantages of investing in mutual funds!




What is the mechanism and obstacles in securitization?

 Securitization is defined as the process for the creation of asset’s pool with the help of marketable illiquid financial assets like as loans or receivables. Basically it is process of repackaging of illiquid marketable assets into the marketable securities. These kinds of assets include residential mortgages, credit card receivables, automobile loans, and all other kind of receivables.

But the question is what the mechanism of securitization is? Here is the guide to explain the full mechanism of securitization and the obstacles in the process of securitization. So let’s get started:

What is the mechanism of securitization?

Following are the brief steps for the mechanism of securitization:

Asset’s pool creation

The very first step in order for the securitization is the creation of the pool of assets. The process of securitization can only begin with the pool creation of the assets by segregating the assets which are backed by same kind of mortgages in terms of risk, interest rates, maturity, and also the concentration unit.

For example, all the illiquid marketable assets with similar mortgages units will be calculated in the single unit.

Transfer to SPV

Next step in the mechanism of securitization is transferring to Special purpose Vehicle. After getting the assets pooled, the next step in the securitization process is to transfer it to the special purpose vehicle which is especially created for this purpose only.

Sale of the securitized paper

The special purpose vehicle further helps in designing of a specialized instrument on the basis of their nature of tenure, interest rates, etc on the basis of asset’s pool. These instruments are eligible to Pay through Certificates or pass through certificates.

Administration of assets

The administration of assets in subcontracted returns back to originator. This further collects principal and interest from underlying assets and after this transfers it back to SPV which work as a conduct.      

Recourse of Originator

The performance of the securitized paper relies much on the performance of the underlying assets and unless specified in the case of default, they return back to the originator from SPV.

Repayment of the fund

SPV will get the power to repay for the funds in the form of principal and the interest which arises from the pool of the assets.  

Credit rating to instruments

Sometimes, it is possible to perform the credit rating can be done before the sale of the securitized instruments in order to assess the risk of the issuer.

So these are the steps for the mechanism of the securitization.

Now we will discuss on what kind of the issues or the obstacle that can rise in the process of securitization.

Obstacles in securitization

Following are the major obstacles that one can face in the growth of the securitization of the instrument especially in the context of India:

Stamp Duty

In India, Stamp duty is one of the major obstacles in the process of securitization of the instrument. Under the Act of Transfer of Property, 1882, the debt of mortgages stamp duty can go even up to 12% in some of the Indian states and this impeded the growth of the securitization in India. Also, one should keep in mind that since pass through certificate does not evidence any debt only able to receivables, they are exempted from stamp duty.

Also, India, recognizing the special nature of securitized instrument in multiple Indian states has reduced the stamp duty on them.


Another obstacle in the process of securitization in India is Taxation. This is also one of the major concerns for securitization in India. In the case of absence of any specific provision which is related to the securitized instruments in Income Tax Act, the opinion of experts in this case differs a lot.

Some experts believe that SPV as a trustee that need to be taxed in a representative capacity while others are having their view that instead of SPV, the investors should be taxed based on their share of income. There is also the need for the clarity on the issues of Capital gain implications on passing payment to the investors.


It is also a major obstacle to account and report the securitized assets in the book of originator. Reporting and accounting of the securitized assets in the originator book is specially a concern in India. Though Securitization is slated to an off balance sheet instrument still in reality, the receivables are removed from the balance sheet of the originator. This can give rise to the issues epically in the case when the assets are transferrable without recourse.

Lack of standardization

There is a need for a proper format or the standard of the securitizations. But in India, there is no proper standardization of the securitization. This is also an obstacle which is hampering the growth of the securitization. In India, all the originators are having their own format for the administration and the documentation, and thus it is lacking the sense of standardization.

Inadequate Debt market

Absence of well developed debt market is also a concern for the growth of the securitization in India. The lack of existence of the well established debt market hinder the growth of the secondary market of the assets backed securities or the securitized instruments.

Ineffective foreclosure laws

For last several years, there has been making efforts for the creation of the effective foreclosure laws still till now; there are no such foreclosure laws in order to support the lending institutions. This is what that makes the securitized instruments specially the mortgages backed securities to be less attractive as lenders faces much issues while in transferring the property in event of default by the borrower.

The bottom line

So this is the mechanisms and some obstacles in the growth of the Securitization in India!


What are the benefits of Securitization?

 There are multiple companies who are having involvement in sending money and making credit sales, these companies are having huge balance sheets containing huge receivable balance. Despite of having huge receivable balance sheets, these businesses can also face the liquidity crunch in order to run their business. In order to overcome this issues, a term was coined and it is Securitization.

Today in this guide, we are going to discuss on the benefits of securitization in business. But before understanding the multiple advantages of securitization, one should understand what securitization is?

What is securitization?

The securitization can be defined as the process for the creation of pool of assets from the illiquid financial assets including loans or receivables which are generally marketable.

Basically, securitization is the process of rebundling or repackaging of the illiquid assets into the marketable securities. These assets can be credit card receivables, automobile loans, residential mortgages or any other kind of future receivables.

 What are the features of securitization?

 Following we are listing some of the major features of securitization:

Financial instrument creations

The securitization process can be defined s the process for the creation of the additional financial products of securities in the market which are backed by collaterals.

Unbundling and bundling:

Combining of all assets in one pool is known as bundling while the breaking it into the instruments of fixed denomination is known as unbundling.

Tools for the management of risk

When the assets are securitized on the base of non recourse, then the process of the securitization act as the process for the management of risk as it helps in the shifting the default risks.

Structured finance

In securitization process, the financial structure is having a tailored structure helpful in meeting of the risk return trade of the profile of the investor and this is why the securitized instruments are known to be the perfect example for the structured finance.


There is splitting of portfolio of different loans and receivables, or assets in several parts on the basis of risk and returns and each part is known as Trenche. Each of the Trenche carries different level of return and risks.


Under every Trenche, the securities are of homogenous nature and they meant much for even the small investors who can afford to invest a little bit of the capital.

What are the benefits of securitization?

After understanding the definition and the major features of securitization, now comes the main point of this guide. Following are some of the major benefits associated with securitization:

From the angle of Originator

Originators are the entity that sells assets on collective basis to special purpose vehicle. Given below are some of the advantages of securitization for Originators:

OFF – Balance sheet Financing

In the case when the receivable or the loans are securitized, it helps in releasing the portion of capital which are tied up in the assets. This results in the off Balance sheet financing which is helpful in the improvement in the liquidity positions which is further helpful in the business expansion of the company.

Further specialization to the main business

After transferring the assets, the entity will be able more to concentrate on the main business point as the servicing of the loan will be transferred to SPV. And, in the case of non recourse arrangement, the burden of the default is even shifted.

Better financial ratios

In the case of banks or other Financial institutions, securitization is helpful in the effective management of the CAPITAL to Weighted assets ratio.

Reduction in the borrowing cost

As securitized papers are more rated because of the credit enhancement, they can be easily issued at the lower rates as of debts and hence is helpful for the originators to earn a spread which further leads to the reduction in the costs of the borrowing.

Cheaper Financing

With the help of securitization in order for the separation of the pool of the underlying loans or the receivables, the originator will get the option to get the financing at lower costs which is much lower from all the forms of borrowing. The reason behind the cheaper financing is that the receivables are having the power of providing the better credit quality in comparison to the originator itself.    

In the case when there is no securitization, the originator will be required to borrow for the finance which results in the additional debts.

Benefits for the balance sheets

With the help of the securitization, there will be acceleration in the cash receipts from the receivables along with the removal of the accounts receivables form the balance sheets of the originators. It is helpful in the reduction of the debt/ equity ratio of the originators and thus helpful for them in complying with the financial covenants in behalf of their on financials sheet borrowing. It will help them fpr more borrow as well as better returns on the capital.

From the Angle of the investors

Here are some benefits of the securitization for investors:

Diversification of the risk

Purchase of securities backed by different kind of assets is helpful in providing the tinge of diversification to the portfolio which is helpful in the reduction of the risks.

Regulatory requirements

Acquisition of the assets belonging to some particular industries like micro industry is helpful for the banks to meet their regulatory requirements of investments in the industry specific funds.

Protection against default

In the case of default by third party in recourse arrangement, the originator will get the chance to make good amount. And, this can be insurance arrangement for the compensation in the case of any suck kind of defaults.

  The bottom line

So these are some advantages of the Securitization!







What are the common types of risks that a company can face?

 Starting a business brings much opportunities in the life of the businessman. An entrepreneur can set up a unique business with an innovative and creative business plan in order to make much profit as well as reputation in the market.

Having own business advantageous as the person will be their own owner. Beside this, all the profit from the business will go to the owner only. They are having the right to choose the way they like to operate the business. They will be the one to enjoy all the profit from the business, and take business decision in order to maximize their profit.

But along with several advantages and profits, there are several risks as well that are associated with the business. The business owners along with enjoying the profits of the business need to be careful for all the risks that are associated with the businesses. Sometimes, these risks can lead to heavy loss to the company. And, in the case when the company is not having any strategy to deal with these risks or is not having any risk management strategy, the worst that can happen is the shut down of the business and heavy loss to the business.

Thus for a business, there is need that they all are having effective and efficient strategy for dealing with the risk that are associated with the business. But before making strategy to deal with risks in the business, one needs to understand the types of risks in the business, how to identify them, and how to evaluate them.

Following presents the types of the risks, and the way to evaluate the risks that are associated with the business.

Types of risks that are faced by an organization

A business organization can face several kinds of risks. Following we are listing some of the major kind of risks that a business owner can face. These are:

Strategic risks

For a successful business, there is need for a detailed and comprehensive business plan. All of the people with business minds are aware of the fact that for a successful business, there is a need for a thorough out and comprehensive business plan. But in the case of change in the situations, the best business plan also can fail. The evolution is the rule of the nature and sometimes situations changes fast and suddenly. In these cases, even the best laid business plan can also become outdated and fail. When the business owner fails to keep up pace with the changing trend, the business is more likely to fail. This is known as strategic risk where the best strategy for operating the business fails with the change in the industry.

Basically we can define strategic risk as a risk type where the best strategy of the business even fails because of the change in the market. This could occur because of the change in the technology, new kind of computer entering in the market, or in the case of any other large scale change. Any change in the industry can change the trend in the market and thus the old strategy can become ineffective or fails to achieve the goal of the company.

Compliance risk

For a business in order to survive in the market, they need to comply as per the rules and regulation of the market, the government, and the culture. But when the business fails to comply with any of the rule or regulation, it can lead to severe consequences for the business. They might need to pay the penalties or sometime even the shut down of the company.

Many times, when a company plans to open their branch in another state, they might not be aware for the rules and regulation in that area. For example, if a cement business plans to extend their organization in different state, they might function as per the rules and regulations of their old business state. Forgetting checking the rules and regulations of other state or fail to comply with any rule can lead to poor outcomes and penalties.

Operational risks

This is the most common type of risks that can occur in any organization while performing any business operation. It is a type of internal risk where the company fails to cope up with the day to day operational issues. It can relates to either people or the processes.

Financial risk

It is another kind of most common risk that occurs due to financial issues in the company. Unexpected changes in the financial conditions like hike in the price of the raw material, change in the exchange rates, interest rates, or the credit rates and many more can lead to the generation of the financial risk. It further include three types of risks that are political risks, Currency risks, and Counter party risks

Political risks are not a direct type of financial risks. However any political changes in other country can cause issues in the country and thus the ultimate loss to the finance.

Currency risks often impacts the companies that deals more with the foreign exchange as their cash flow changes with the change in the currency exchange rates.

Counter party risk occurs in the case when the company fails to deliver the good whose payment has already done in advance.

How to evaluate the financial risks?

The financial risk can be evaluated from different point of views:

From the stakeholder’s point of view, Financial gearing that is ratio of debt in capital structure as the major risk in the case of winding up of the company.

From company’s point of view, excessive borrowing or lending of money can force them to go into liquidation.

From the Government point of view, failure of any bank or other financial institution is major risk.

The bottom line

So these are all about the types of risk that can be faced in any business!



Pitch presentation for the business idea

 Most of the business ideas can propagate only when they get proper funding and capital. For the beginners and the start up entrepreneurs, they often run out of funds and capital in order to grow or start their business and implement their business idea for the betterment of the society and of course for their profit.

The best option for the start up financing is no doubt the personal finances. But it is often not possible for the beginners to arrange a big capital amount in order to implement their business idea and grow well in the industry.

When the option of the personal finances over, the next option left is to outsource for the investment. Lending or borrowing money for the start up finances is least preferred option as in the case of failure, it will cost the personal assets of the business owner. Thus one in order to implement their business plan for their start up business, requires to outsource for investment.

There are several websites and platforms where the start up or the small business owner can look for or find the investment for their business. But in order to convince the investor to invest in your business, you will need to be ready with a proper and well detailed, comprehensive business plan.

After creating the comprehensive and detailed business plan, the next step comes is to present your pitch to the investor. This is the most crucial step for convincing the investor for investing in your company.

Pitch presentation is basically a small or concise presentation of your business plan highlighting all the important aspects of the business plan within not more than 20 minutes. There is need to present all the prospects and the benefits of the business convincing the investors that why they should invest in your start up ideas.

It is basically a presentation on powerpoint in order to explain the investors the main aspects of the business plan in order to convince them to invest in your business.

The business owner can either present the pitch presentation online via some video conferencing apps or face to face in the meeting hall. It does not matter where you are presenting the pitch, how you are presenting matters the most.

So in order to make your pitch presentation more effective, here we are listing some points that you should high light in order to effectively explain your business plan and convince the investor to invest in your business.


To begin with the pitch presentation, the first thing you should do is to introduce yourself. You should give you sweet and short instruction about who you are? What do you do? Make sure, the introduction should be short. You can also use this opportunity to introduce your business idea as well like the most interesting facts about your business plan, what are the milestones that you may have achieved, etc.


A leader itself can not do anything without the help of their team. So after introducing yourself and the basics of your business plan, never forget to introduce all behind the scenes who also contributed in creating the business plan. This is essential to introduce your team as all the potential investors are interested in knowing the team members who are going to work on this project.

Problem and solution

There is never need of a project which do not solve any kind of problems. So, after the completion of all the introductions, now come to the problems that your project is going to solve. Also, explain the audience how your project or the product is going to solve the problem and will contribute in the betterment of the society along with making a good profit as well.

The investor is much interested in knowing, what is the use of the product or the project that you are planning to work on with them. Thus highlighting the problems that your product will solve and the method how it will solve the problem is very important during the pitch presentation.

Marketing and sales

Yes, this is the main point that the investors or the audience is most interested in. It is require to highlight the market size of the product. Include the target audience who the product is going to serve. Also, while explaining this, be prepared to highlight your business plan to attract more and more customers and how you are going to let people know about your product.

Projections and milestones

For a new business, it is quite difficult to make the financial projections and the milestones. Still, in the business plan, there is need to incorporate a educated guess on the base of knowledge. Projected financial statements helps much in giving the investor an idea that where the company is planning to head on. It also gives them a rough estimate that whether the company is going to make profit or loss.

The financial projection in the business plan should include the income statement that how much the company will generate the income, cash flow statement depicting how much cash will come and go out of the company, and the guess balance sheet depicting all the business finances including the liabilities, assets, and the equity.


For every business, competition is major suppressing factor that might hinders the company to survive well in the market. Thus in the business plan, there is need to add the competition and how the business is planning to deal with or over come it.   

Business model

It should depict the core aspects of the business like its purposes, offerings, target customers, infrastructures, strategies, organization structure, trading practices, sourcing, operational processes, and the policies including the culture.


Yes, it is also important to mention that how much the company has already raised money, who have invested in your business, including your personal finances as well.

The bottom line

So this is the way one should present their pitch for convincing the investors for your business!


A complete guide on Startup finance

 Start up financing can be defined as the initial infusion of the money which is required for turning the idea of starting a business into reality. While starting the business, just with ideas, most of the time, big lenders like bank or other organization often not convinced to lend money for the start up business.

This is the reason why the start up business owner needs to outsource or arrange some fund in order to turn their creative entrepreneur idea into start up business. As most of the big lenders like banks are mostly not the option to arrange money for the new businesses, asking money from family, or selling own assets, or borrowing money against home is kind of risky. That’s why most the entrepreneur while starting their business, have query how to arrange the finance for the start up.

In order to help the entrepreneurs and other business owners, here we are listing some of the ideas that can help you arrange start up finance.

How to arrange start up finance?

For starting and making any business successful, there is need to invest some money and time in it. The fund required for starting a business is known as start up finance. Here we are providing you some of the innovative ideas for arranging the start up finance. These are:

Personal financing

This idea of start up financing might not seems to be innovative, but is actually very important in order to start a business. It is important for those who want to be entrepreneur in their life to save some money for their business. If you are not investing any of your personal finance, no other investor will be ready to invest in your firm. In order to take help from other investors, there is need to contribute some amount of your personal finance as well in your business.

Personal credit card limit

Though this is not a option for large businesses, but can be a good option for small business. Depending on your past behavior of paying the credit card bills, you will have a credit limit for taking loan. Paying credit card bills on time will  help you extend your credit limit and this can help you take more loan from the credit card for starting the business.

Make sure, this is option only for the businesses with continues credit flow as there is need to re[ay the credit next month or on time.

Friends and family

Generally while starting the business, no outside will trust you only on the basis of a business plan. Your family and close friends are only those who can trust you and lend you money. But this is also not a appropriate option for startup financing.

Peer to peer lending

This is great idea for start up financing where the group of peoples come together and lends money to each others. There are several small and medium sized business groups that can have faith on you and can support you with money for your business.

Crowd funding

Crowd funding is an idea of collecting or arranging money for the business from a group of people. It is usually defined as the process of collecting small amount of funds from more number of peoples. This is a easy way for fund collection as more people can come together to raise fund and thus will not big burden on one person or investor. In this method, multiple small investors can come and together raise fund for the start up business.

Crowd funding can be done via the internet or from the social media network. There are several crowd funding websites as well that can help in collecting capital for the start up business. 

Micro loans

This start up financing method is also a kind of loaning method, but not by the banks. In this method, either individual or the aggregate group of people lend money to the business man at lower interest rates. The money for the start up business can either be lend by the single individual or more than one people can contribute in lending the total amount or the capital fund for the business.

Vendor Financing

Vendor financing is a kind of financing where the company itself lend money to one of the customer in order to buy the products or the goods form the company itself.

The facility of vendor financing is provided by several large or medium sized manufacturing s well as the wholesale companies. These companies provide the opportunity to their customers to buy goods or the products once and pay later after they sell all the products. 

Also, many times, the vendors are not having this facility, still good professional relationship can make them convince to defer the payment until all the goods by the new business are sold.

This is kind of financing where the business man can pay to the manufacturer or the distributor after the selling of their goods. It is basically a extending of the payment depending on the good image of the businessman or the amount of money.

Purchase order financing

 This Is another method of financing for the new businesses. Often the new businesses are not having the fund to work on large product orders. In this case, the advance payment from the client can help them complete the order and earn profit for the further growth of the business.

Finding Investors

So this is one more option for the start up companies to arrange finance. In the method, the business owner either can search for partner or just the investor to invest in their company. There are several platforms as well where the business owners can find the investors for their start ups.   

The bottom line

SO these are some ideas for arranging the start up finance for the new business!

How to make money from Amazon?

 Today where the ecommerce business is growing at faster pace, all the business man are thinking to go online in order to interact with customers from different part of the world. Out of all ecommerce platform, Amazon is considered as king for selling the product online. As per several reports, more than 49% of the online sale happen via Amazon only.

Also, in the pandemic time, Amazon provides a great opportunity to make money online. If we see the logs, more than 190 million peoples used to visit Amazon.com every month which is a way more statistics than any other ecommerce platform.

With Amazon, you will get the option to make money in different ways. Amazon also make it possible for people to make money even without investing a single penny.

If you are into to start earning online from Amazon, following are some ideas helpful in making money from Amazon that one can start without investing money.

How to make money from Amazon?

Following are some ideas helpful in making money online:

Be a merchant

Since Amazon is a retailer ecommerce websites, the best way to earn from it is being a merchant. But for being a merchant, you do not need to invest much on inventories, instead you can sell your design as well.

If you are god gifted with some creative mind, then Amazon is having great opportunity for you to make money. All you need is to create a unique design for a T shirt, or hoodie, or anything and upload it on the website. Now it is the responsibility of Amazon to sell your design on any T shirt, Sweat, or any hoodie and you will get your commission on every purchase.

Selling your design will be easy as you do not need to keep any inventory or there will be no pressure as well to fulfill the orders. All you need is a creative mind Just come up with you unique and creative design and make money in the form of commission when any merch with your design get purchased by the customer.

In order to join the Merch by Amazon, all you need is to sign up to Mech by Amazon. There create and upload your design on nay merchandise. The next step is to color your merch and then create the merch description.

Here you go and now the Amazon will take the responsibility to create the product page, printing the design on the merchandise, fulfillment of the order, and then the customer service.

On ever sale of your design, the Amazon will pay you the commission depending on the cost of the product.  

Dropshipping with Amazon

This is another great option to make money with Amazon without investing anything. For those who are willing to sell products on Amazon, but are less interested in investing, the dropshipping can be the best way for them to make money.

Dropshipping with Amazon is completely different from Amazon FBA where you will need to send the stock to the Amazon. While in dropshipping, you just need to upload the picture of the product from the suppliers and then earn money in the form of commission.

In order to start dropshipping with Amazon, you will need to opt for the option “Fulfillment by the merchant” and this will make you responsible for fulfilling the demand of the customer.

Amazon handmade

It is another great option for creative people to make money. If you are having some skill to create handmade items like craft, or even the T shirts or any thing, Amazon provides you the opportunity to sell your products and make money out of it.

It is more like Etsy, where you can sell your home made products and make money of it. You can create anything like jewelry, crafts, cloths, or anything you are good in and earn money by selling it.

Mechanical turk

Though this opportunity is not good for making a handsome amount of money but is good as a part time job. On Amazon turk, amazon post for several freelancing and part time work. Here you can find a virtual job for yourself. The nature of job in this section can be anything like filling survey forms, data validation, etc. It is great idea for students and those who are looking for parttime job to make money.    

Work from home

Other then Amazon turk, Amazon used to provide many more virtual or freelancing job that a individual can do right from their home virtually. Here in this section, you can find several kid of freelancing jobs like customer support job, technical support staff job, business development officer job, and many more. Most of the positions here are part time and seasonal. So if you are having extra time and talent, then why not apply here for making money.

Amazon Flex

Anybody with a car and license can make money with Amazon. It is  a money making program from drivers. This plan was launched by Amazon in order to fulfill the same delivery option for the prime users.

All you need is to have a legal car and a smart phone. After this, you can apply for the driver job in the Amazon flex and set you time for making deliveries. With this option, you can make up to 18 to 25 dollars per hour.


Anybody with RV can make handsome amount of money with Amazon. It will provide the individual with the opportunity to make some seasonal money. With this, you will need to apply for the seasonal task sin your location, and then amazon will assign you the work when the season arrive. As the part of job, you will need to pack the item, store It, and receive the packages from Amazon within the area in your RV.

The bottom line

So these are some options to make money with Amazon!          


How to increase the sale of your product on Amazon?

 Amazon is providing a great online and ecommerce platform for small and medium sized retailers as well. As we know, that the trend of online shopping and ecommerce store is increasing. And, thus there is requirement to interact with customers from different region online.

Amazon provides a great platform where the small or the medium sized as well as the large retailers can interact with their customers, and sell their products online.

For a retailer, there is need that they meet their customers on their preferred ecommerce site. Amazon is one of the most preferred site not only in India but outside India as well. Also, it also might not be possible for the small retailers to create their own ecommerce site and get it popular as Amazon instantly. So for the instant interaction with more customers and for instant profit in ecommerce business, Amazon is great option and platform for selling your products online.

But Amazon is very huge. Thousands of vendors from and outside our nation are selling their products online here. Thus in order to display your product on top and for increasing the sale of your product on Amazon, there is need for adopting some good strategies.

If we see the report, more than 49% of online sale occurs in Amazon platform. This leads both the vendors and the customers to prefer Amazon for online business and online shopping respectively. So the key is that, there is need for the retailers to approach the major section of the customers online via the Amazon platform and follow the strategy in order to maximize the sale and be in the top of the customer’s preference.

Now the question arises, how to boost the sale on Amazon? How to rank our product first n Amazon list? Here is a complete guide to solve all your issues. Today in this guide, we are listing you some strategies to increase the sale on Amazon and boost your income.

Turn your website into resource

The first step in order to boost your sale on Amazing is try e a resource. For being top in the Amazon, there is need that you are differentiating yourself from the competitors. There is need for boosting your brand awareness and attract more and more of the target audience.

The best way to build trust among is customers are by leveraging your brand as a resource. On an average, every customers want to know everything about the product before making purchase for it. If you are able to provide the reliable information relate to your brand, it will be easy for the customer to trust on you and thus will help you become a successful Amazon retailer.  

For this, you should create your own blog, and post all the relevant information regarding the product. Now send traffic on it by digital promotion and social media promotion. The guide should include all the information related to the product. And, it should also include the link for the product on the Amazon page where the customer can directly land from your page.

Take help from social media influencers

It is also reported that the customers prefers trusting on the products which have been used by any social media influencer or the celebrity or they recommend others for buying that product. Recommendation for your product by any celebrity or the social media influencer or any other industry leader can help you boost your sale on Amazon.    

Sponsored product campaign

The sponsored product on Amazon are more likely to be clicked by the customers and thus are having more chances for being purchased by the customers. This is why, you can create your sponsored product ad on Amazon and this will help in making your brand more visible to the customers.

More positive reviews…more will be positive impression

For a customers, what they see first? Yes! It is rating or the positive reviews on the product. When your product on Amazon is having more high rating and more positive reviews, it will ultimately lead to the development of trust among other customers for your product. So you should be having any strategy to increase the positive reviews in the comment section. In order to increase the positive reviews, you can follow up the customer via the email. Once your product is delivered, you can send your customer a email or the SMS having the link to feed back. Politely encourage customers to send their feedback. This is will not only increase the reviews on your product but will also help in development of trust among customers.

Optimize your product

In order to display your product on the top of the Amazon list, there is need that you should optimize your product with relevant keyword and SEO features. There is lot to learn for optimizing the product on Amazon.

Give the best buying experience to the customers

When your customers will be satisfied from the product, they will love and trust more on your brand. So the best way to provide the best buying experience to your customers, be transparent for the quality, interact more with your customers, respond to their feedback, their complaints, and compliments, let your customer know who you are, and try building the positive relationship with the customers.

Explain product

On Amazon also, one should explain all the benefit associated with the product, their features, and all the relevant information that a customer needs to know. Be transparent and honest for the information.

Leverage video

For further explaining and depicting the quality of the product, supplement the written content with video as well. This will increase the transparency and thus more trust building among customers.

The bottom line

So these are some strategies to increase the sale on Amazon!    



How to reduce the cost for the raw material required for the good production in business?

 For every manufacturing business, they require some kind of raw materials. The cost of the raw material is having the direct impact on the profit margin of the business and on the pricing of the product as well.

For example, if the raw material is expensive, the manufacturing cost for the product will be high and this will ultimately leads to the decrease in the profit margin of the organization and the increase in the price of the product.

 And, when the cost of the raw material is low, there will be more profit margin of the organization and also decrease in the price of the  product as well. Because when the cost of the raw material is low, there will be less manufacturing cost. This will ultimately lead the increase in the profit margin of the organization and thus they can manage to decrease the price for the good.

There are several benefit of getting the raw material at the low cost. Some of the major benefits of getting the raw material at low costs are as follows:

  • When the cost of the raw material is low, the manufacturing cost of the product will be low. Thus the profit margin of the organization will be high.
  • Since the low cost of the raw material will decrease the manufacturing cost and thus the company can manage to decrease the price of the product. This will help the customers to get the product at low cost.
  • When the price of the product is low, there will be increase in the sale and thus more profit for the organization.

Overall, low cost of the raw material is beneficial for the company. But the question is how to get the raw material at the reduced cost. Here in this guide, we are listing you some major points that will help the company in getting the raw material at low costs. Some of the tips for reducing the cost for the raw materials are as follows:

Use lower cost substitute material wherever possible

This is great idea to substitute the high cost raw material with the low cost raw material wherever possible. Generally, a product can utilize different kind of raw materials for the manufacturing of the final good. But make sure, if you are substituting any of the raw material, it should not hamper much the quality of the product. Otherwise it will reduce the value of the product which is not desirable. Also, changing the raw material that leads in increase of the manufacturing time as well as labor cost is also worthless. 

Also, change in technology can also help in reducing the manufacturing cost and thus the final profit to the organization.

Negotiation, Negotiation, Negotiation

It is very crucial factor to decrease the cost for the raw material. The level of the profit you can earn on your products depends majorly on the price of the raw material that what the best price for the raw material you can get. You should need to have the good negotiation skill while purchasing the raw material. Ask for discount every time when you purchase the raw material. Also, you should scroll multiple suppliers for the raw material, compare their price, ask for the discount, select the one who is providing more discount or try getting the best offer for the raw material purchase.

Purchase the raw material in off season time

In the case when the raw material can be store for long time, prefer purchasing them in bulk in off season time, when the cost for the raw material is low. For example, in the case, if the cost of any kind of raw material is low in winters, try purchasing them in winters only.

Purchase the raw material in bulk

Yes, this is also a good strategy to get the best price for the raw material. In the case when you are having facility to store the raw material for long time, it is preferred to purchase the raw material in bulk. Larger the volume of the raw material, more will be your cost saving on raw material purchase.

Grab all the opportunities

Time to time, many suppliers might appear in market with great offers on the raw material, grab that opportunity and get the raw material from them only. No matter if they are your regular supplier, just assure with the quality for the raw material and get it from them at lower cost and best price.

Offer for offer

In the case when any of your vendor is your supplier also, give them an offer on your end product for getting the offer on the raw material. For example, if any of your supplier also purchases the end product from you, you can provide them the goods at discounted rates and ask them for the discount on raw material as well.

Provide the facility of warehouse or the distribution service

If it is expensive for your supplier to supply their raw material in your locality, but are having great demand from your area. You can help your supplier with the extra warehouse (If you are having) allowing them to keep their incentives. This will help them in reduction in the delivery, transportation cost. In return, you can ask them for discounted price on the raw material.

Quick payment

Some of the suppliers can provide you best offer if you offer them for quick payment.

Long term agreement

You can also make agreement from the suppliers for long term professional relationship in return of the discounted price of the raw material.

Less wastages

This is the most important point to consider while manufacturing the product. When the wastages of the resources is less, there will be less manufacturing cost and thus the profit to the organization.


The bottom line

So these are some tips to reduce the cost of raw material! 




Best investment options

 Finding the best investment option is not only the issues for big investors, even normal people also need to find a good investment option for good returns and for saving money for the future.

The trading an stock investors do not mind investing risky funds as well. But the normal people prefer keeping their money safe and multiplying. They wants the investment option where their money remain safe and they can get a good returns as well without any risk of losing their money.

Because of looking for the risk free investment funds, most of the people prefers finding the investment plan with stable and good returns and no risk of losing money.

However, the returns are directly proportional to risks. More the risk, more the chances of the higher returns, but one can lose their money as well. In order to look for the risk free investment plan, one need to go for lower returns only.

Here in this guide, we are listing you some of the best investment options with stable returns and less risk. These are:

Unit Linked Insurance plan

This is one of the best investment plan in India providing two benefits of both the insurance as well as the investment with single plan. It is considered as bets investment plan for dual benefit with the feature f insurance as well. Along with these two benefit, another benefit associated with this investment plan is the tax exemption. This kind of investment plan generally comes with lock in period of 3 to 5 years. In ULIP plans, a particular part of the premium is used for the insurance coverage while the rest of the part is used for the investment in the market linked investments like bonds, shares, and many more.

With ULIP, one will get the feature for the long term investment and will get the option for reaping the maximum of the returns. Also, it allows for the tax free maturity.

Public Provident fund

Another secured investment option in this list if Public provident fund. It is long term investment plan where the person will get the feature of tax exemption as well. One is allowed to open the PPF account from any bank or the post office. The invested money will be locked for a particular tenure generally for 5 years. And, the best part of this investment plan is that one will get the option to earn the compound interest on the accumulated amount.

The only drawback associated with the PPF funds is that one is not allowed to withdraw their money before 6 years. All one can do is apply for the loan amount on the base of balance of the PPF funds.

Mutual funds

With time, the trend of the mutual funds are increasing in developing countries like India as well. People these days are more in investing mutual funds. Some of the mutual funds are good paying but are generally high risk investment plans. For those, who are looking for low risk investment plan, mutual funds are having plan for them as well but will low returns.

The low risk investment plans are good for keeping the money safe and providing the investor with the stable returns.

Bank fixed deposit

Most of the middle class people only believes in bank fixed deposits only. This is  the most safest investment option where one will get fixed returns over the complete tenure of the investment. In this investment plan, one will get the interest either month to month, quarterly to annually, or as per the rules of the bank.

On the basis of bank, the fixed deposits either provide cumulative or the non cumulative option for the investment. In the non cumulative option, the investor will get the interest while in the cumulative option, the interest will be add to the principle amount and the investor will get the total interest in the end of the tenure. 

Since, it is one of the most safest option for investment in India, it is most popular type of investment plan in India. With FDs, investors will get range of tenures and they can choose as per their choices.  

National pension scheme

It is government saving scheme option that offers the pension solutions. In this kid of investment plan, the money will be invested in the government securities. It also offers two type of option, one is auto and other is active. In the auto type option, the funds will be automatically invested in different kind of assets while in the active options, the investors will get the option to invest as per their choices. This scheme only mature when the person achieve the age of 60.

Senior citizen saving scheme

This is another risk free saving scheme only for the senior citizens who have crossed their 60years of age. It is best option for them in order to get the regular income.

Real estate investments

This is most common and preferred kind of investment plan where one invest their money in real estate properties, residential properties, as well as the commercial properties. In general, the return in this kind of investment is very high depending on the locality of the real estate property.

This investment is generally risk free and can double the investment amount in just few years. Also, the real estate property work as an asset and is best investment plan with high returns and low risk.

The only drawback with this investment option is that the investment amount will be more. But with more investment, one will get the option to earn more returns and that too at low risk.

The bottom line

So these are some best investment plans in India with low risks!