The Best Advice You Could Ever Get About venture capital news

Posted by Star on January 18th, 2021

Every business wants to sell more and make more profit, and that is wholly understandable. However, the most important thing - particularly in this coronavirus pandemic - is to keep the customers that you have and keep everything ticking over as far as is humanly possible.

™

Certainly, a lot of businesses - mostly retail - are closing for the foreseeable future, and that is understandable. We have to get through this, and there is going to be a way to go until we do.

However, the good news is that we WILL get through it and come out the other side. Some companies may actually profit by increasing prices for supplies that are in demand but in short supply, but whether that is morally acceptable is another matter. With that said, the businesses that will succeed in the longer term are those which start planning ahead now.

This involves market research, which many businesses carry out on an ongoing basis since it is a fact that things change. Customers change the way they shop, and something that was very in fashion today may be out of fashion tomorrow and if you fail to keep up with the times you can be out of business very quickly. Take Blockbuster video stores for example. What a huge business that was. But it didn't see the companies offering TV shows, movies and Sports to view online will flourish, and when it did, it went about trying to overcome the problem in entirely the wrong way because its' managers didn't understand what customers wanted.

It is always necessary to keep an eye on what your competition is doing, but even more necessary to look out for additional opportunities. As an example, look at big giants, whose toothpaste was struggling in the late 1990s. The company move into adjacent areas in the same marketplace with teeth whitening and brushing. It used the same channels to reach the same customers and reached over 0 million in sales for each of the new products in less than a year. It achieved this by using market research to establish what sort of products those same customers would like to buy. This is one way of keeping an eye on the market and expanding your business by moving into areas outside the original.

You not only need to research your customers but also your competitors. What is it that they are working on? Are they planning a new product or service, and if they are, is it a viable one? This can help you decide whether or not expanding into a new area is going to be profitable for your company.

You need to assess the strengths and weaknesses of your competitors. If there are weaknesses, is there a way in which you can exploit them to your own advantage? Maybe there are ways in which you can differentiate your product/service from theirs. Perhaps you could undertake ethnographic analysis in order to see if your product/service could be aimed at a specific sector of the population.

However, simply assessing your customers and competitors is not enough. You need to have an overall understanding of the whole market and the potential of any new development. If not, you could fool yourself into believing that making a few thousand (million?) pounds a year more is as much as you can do, when in fact the potential could be considerably greater. A market research company can help you to see the overall picture and move away from limited thinking.

There are a lot of questions which need to be evaluated, not the least of which is what the overall size of the market, and is it expanding or shrinking? How many customers are there? How much competition is there? Are there any barriers to entry? Is there a possibility of new entrants increasing competition, or providing cheaper substitute products? All of these things need to be considered before you begin to invest in a new product or service. Bear in mind that this is similar to starting a business from scratch, even if it is in an adjacent market. Yes, you may have considerable ongoing income, but moving into a new area has its' costs, so you need to know whether or not it has sufficient potential before you do so.

There are other things to consider such as technological developments, changes in government rules, economic indicators, and so on, and today such things as the impact that coronavirus will have on your future business. All need to be taken into account, and a market research company can be of considerable help.

Six months ahead of her inaugural Union Budget address in the parliament July 2019, finance minister Nirmala Sitharaman had the unenviable responsibility of addressing some great news to both India Inc and the general folk.

The worsening position of the economics meant that the Union Budget of 2020 held expectations to concentrate on improving consumer interest, hoisting the flagging NBFC and investment sectors, support manufacturing, production and Business Entrepreneurship by tax reductions and export advantages, and address concerns of capital and liquidity in the economic market.

Similarly, a lot of the focus has been on expanding infrastructure and socio-economic pointers through mega allocation, as Sitharaman highlighted numerous times while addressing her Budget of 2020.

Themes And Focus Areas of Union Budget 2020.

For the financial year 2020-21, the focus of the Indian government has been on enhancing the comfort of living within 3 themes - Aspirational India, Economic Development and Caring Society.

On the subject of Aspirational India, Sitharaman's Union Budget 2020-21 converged on aspects such as farming, fertilization, and rural advancement; wellness, water, and hygiene; and education and skill advancement. Beneath Economic Development, the finance minister decided to designate budget to business, commerce, and finances; infrastructure and the new economy - driven by Entrepreneurship and Small Business and the technology ecosystem.

Lastly, to build a 'Caring Society', the budget concentrated on women and child well-being; culture and tourism; and environment and climate change. Inside these three themes, the Union Budget 2020 acquainted several variations. Thus, here are the significant takeaways and highlights from the longest-ever Budget address.

Principal Highlights Of The 2020 Union Budget

The headline-grabbing modifications have been concerning the rate cut for personal income tax that is obliged to deliver a lot of pleasure to middle-income India. But exceeding that, there have been several changes that seek to eradicate the hurdles in agreement, tax, and other administrative aspects.

Seed Fund For Startups

The ministry has proposed to accommodate early-life funding for Business Entrepreneurship and startups and founding a seed fund to promote ideation and expansion of early-stage startups.

Though, it is quite vague if this is the identical seed fund that the ruling party had offered in its pre-election manifesto. The NDA had declared strategies to produce an INR 20K Cr Seed Fund to go with the Startup India fund of funds as among its essential highlights in the pre-election season.

Presently, there are above 416 venture capitals that have a center on early-stage Business Entrepreneurship and startups in India. However, in 2019, the seed stage funding extended to fall over the major startup hearts in India. With 2 Mn in funding, the seed-stage contract value dropped by 44% (compared to 2018) as barely 306 seed funding agreements were registered.

Startups Get Tax Benefits, ESOP Reformations

The most necessitated modifications by the startup ecosystem have been in the ESOPs taxation plan, as this is a fundamental catalyst for business entrepreneurship and startups in pulling top talent. Sitharaman intimated this in her speech, "Through their developmental years, startups frequently use Employee Stock Option Plan (ESOP) to entice and engage highly skilled employees. ESOP is a vital component of compensation for such employees," "To boost the startup ecosystem, I recommend to relieve the hardship of taxation on the workers by suspending the tax payment by five years or till the time they leave the firm or when they trade their shares, whichever is earliest," the finance minister also added.

MSME Compliance Made Easier

Ms. Sitaraman announced that the app-based inventory funding platform for MSMEs will be launched so that Entrepreneurship and Small Business, as well as medium businesses, can avail the advantages from economic services providers on the grounds of these invoices.

Moreover, to decrease the compliance load on scanty retailers, dealers and the MSME sector as well as the evaluation challenges for the income tax department, the ministry has offered to boost the auditing threshold for MSMEs from INR 1 Cr in turnover to INR 5 Cr.

While that is an appreciated move, barely a few MSMEs would be able to avail of certain profits. The decreased compliance trouble would be relevant to only those MSMEs that transact less than 5% and that too in cash.

The amount of dealers using digital payment methods has expanded to over 10 Mn in a very brief span of two to three years. This transformation can be attributed to driving agents such as robust reimbursement infrastructure, the progression of form factors, availability of structured data, the venture capital news transformation in buyer behavior and the government's idea of reconstructing India into a cashless market.

Personal Income Tax Rate Slashed

Following the new obvious personal income tax regime, a person shall be obliged to pay a 10% tax on INR 5 Lakh - INR 7.5 Lakh of the current 20%, whereas the individuals owning income under INR 5 Lakh will no longer have to pay any tax.