KG REDDY College of Engineering ~ Tcchnolog}~

One-Day Workshop

On

~d~a ~ au~c

"Entrepreneurship Development and How to Raise Funds" KG Reddy College of Engineering and Technology, Moinabad, Hyderabad

On 26 Apri12019

Details of Resource Person

Name :Mr. Vijay Venkatesh Designation :Co-founder and Managing Director,

SYSCON Solutions Private Limited, Hyderabad

In today's world, business is one of the most efficient ways to earn money. The young entrepreneurs are coming with new technological ideas this makes the best practice to avoid unemployment. In contrast to this, the resource person explains the overview of being an entrepreneur and accordingly, getting funds and building up the startup is one of the crucial tasks to initiate the business. In consumer space, we have various Social Medias like instagram, facebook, youtube etc but what it has for businesses. There are researchers, which tells you, even with the small work it will improve and increases the sales convergence with some 50%. Leading to market consolidation and convergence of the market the development includes estimated through the demands on consumer products. Real time Price discovery for all users (sellers will be benefited by lower transaction cost). The 1%market share should be taken in to account. This talk was the continuation of the Entrepreneurship Awareness and Opportunities conducted last year in December 2018

The revenue model

1. Banks. You can raise funds by taking out a loan from a bank.

2. Venture Capital. If you cannot get funds from a bank, then you could try sourcing funds from venture capitalists.

3. Friends and Relatives.

4. Go Public

1) Bootstrapping your startup business:

KG REDDY College oC Engineering &z Technology

Self-funding, is also known as bootstrapping, is a successful method for startup financing, exceptionally when you are simply beginning your business. First-time business visionaries regularly experience difficulty getting Self-funding without first demonstrating some footing and an arrangement for potential achievement. You can contribute from your very own investment funds or can get your loved ones to contribute. This will be anything but difficult to raise because of less customs/compliances, in addition to less expenses of raising. By and large, loved ones are adaptable with the loan cost

2) Crowdfunding As A Funding Option:

Crowdfunding is one of the more up to date methods for financing a startup that has been picking up part of prevalence of late. It resembles taking an advance, pre-request, commitment or ventures from more than one individual simultaneously.

This is the way cowdfunding works — A business visionary will set up a point by point depiction of his business on a Crowdfunding stage. He will make reference to the objectives of his business, plans for making a benefit, how much subsidizing he needs and for what reasons, and so on and after that purchasers can find out about the business and give cash on the off chance that they like the thought. Those giving cash will make online vows with the guarantee of pre-purchasing the item or giving a gift. Anybody can contribute cash toward helping a business that they truly have faith in.

3) Get Angel Investment In Your Startup:

Angel messenger financial specialists are people with surplus money and an unmistakable fascination to put resources into forthcoming new businesses. They additionally work in gatherings of systems to by and large screen the proposition before contributing. They can likewise offer tutoring or exhortation close by capital.

Angel messenger financial specialists have fired up numerous noticeable organizations, including Google, Yahoo and Alibaba. This elective type of putting by and large happens in anorganization's beginning times of development, with speculators expecting an upto 30% value. They like to go for broke in venture for more significant yields.

Angel messenger Investment as a subsidizing alternative has its inadequacies as well. Angel attendant financial specialists contribute lesser sums than investors (shrouded in next point).

4) Get Venture Capital For Your Business:

This is the place you make the enormous wagers. Investments are expertly overseen reserves who put resources into organizations that have enormous potential. They normally put resources into a business against value and leave when there is an IPO or a procurement. VCs give skill, mentorship and goes about as a litmus trial of where the association is going, assessing the business from the maintainability and versatility perspective.

KG REDDY CullcKc of Enginccrin~ 6t Tcchnol~~;y

A funding venture might be fitting for independent companies that are past the startup stage and as of now producing incomes. Quick development organizations like Flipkart, Uber, and so on with a leave technique as of now set up can pick up to countless dollars that can be utilized to contribute, arrange and develop their organization rapidly.

In any case, there are a couple of drawbacks to Venture Capitalists as a subsidizing alternative. VCs have a short chain with regards to organization unwaveringness and frequently hope to recuperate their venture inside athree-to five-year time window. In the event that you have anitem that is taking longer than that to get the opportunity to showcase, at that point funding speculators may not be keen on you.

5) Get Funding From Business Incubators &Accelerators:

Early stage businesses can consider Incubator and Accelerator programs as a funding option. Found in almost every major city, these programs assist hundreds of startup businesses every year.

Though used interchangeably, there are few fundamental differences between the two terms. Incubators are like a parent to to a child, who nurture the business providing shelter tools and training and network to a business. Accelerators so more or less the same thing, but an incubator helps/assists/nurtures a business to walk, while accelerator helps to run/take a giant leap.

These programs normally run for 4-8 months and require time commitment from the business owners. You will also be able to make good connections with mentors, investors and other fellow startups using this platform.

6) Raise Funds By Winning Contests:

An expansion in the quantity of challenges has enormously boosted the open doors for raising money. It supports business people with business thoughts to set up their own organizations. In such rivalries, you either need to fabricate an item or set up a strategy.

You have to make your venture hang out so as to improve your achievement in these challenges. You can either show your thought face to face or pitch it through a marketable strategy. It should be exhaustive enough to persuade anybody that your thought merits putting resources into.

7) Raise Money Through Bank Loans:

Ordinarily, banks is the primary spot that business people go when pondering financing.

The bank gives two sorts of financing to organizations. One is working capital advance, and other is subsidizing. Working Capital credit is the advance required to run one complete cycle of income creating tasks, and the point of confinement is generally chosen by hypothecating stocks and account holders. Subsidizing from bank would include the typical procedure of sharing the

KG REDDY Coll~~e of Enginccrin~; &r Technology

I

:~

marketable strategy and the valuation subtleties, alongside the task report, in view of which the credit is authorized.

8) Get Business Loans From Microfinance Providers or NBFCs

What do you do when you can't qualify for a bank loan? There is still an option. Microfinance is basically access of financial services to those who would not have access to conventional banking services. It is increasingly becoming popular for those whose requirements are limited and credit ratings not favored by bank.

9) Govt Programs That Offer Startup Capital:

The Government of India has launched 10,000 Crore Startup Fund in Union budget 2014-15 to improve startup ecosystem in India. In order to boost innovative product companies, Government has launched `Bank Of Ideas and Innovations' program.

Government backed `Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA)` starts with an initial corpus of Rs. 20,000 crore to extend benefits to around 10 lakhs SMEs. You are supposed to submit your business plan and once approved, the loan gets sanctioned. You get a MUDRA Card, which is like a credit card, which you can use to purchase raw materials, other expenses etc. Shishu, Kishor and Tarun are three categories of loans available under the promising scheme. Learn more about MUDRA.

10) Quick Ways To Raise Money For Your Business

There are few more ways to raise funds for your business. However, these might not work for everyone. Still, check them out if you need quick funds.

Product Pre-sale: Selling your products before they launch is an often-overlooked and highly effective way to raise the money needed for financing your business. Remember how Apple & Samsung start pre-orders of their products well ahead of the official launch? Its a great way to improve cash flow and prepare yourself for the consumer demand.

Selling Assets: This might sound like a tough step to take but it can help you meet your short term fund requirements. Once you overcome the crisis situation, you can again buy back the assets.

Credit Cards: Business credit cards are among the most readily available ways to finance a startup and can be a quick way to get instant money. If you are a new business and don't have a tons of expenses, you can use a credit card and keep paying the minimum payment. However, keep in mind that the interest rates and costs on the cards can build very quickly, and carrying that debt can be detrimental to a business owner's credit.

KG RELY ~Y E. UEEC!~: vii 1_l ~ii7tt Fill

~CY }3n1)~il?~~' IloQerliUif Iq 1MtAAC

Mr. Vijay Venkatesh demonstrating about entrepreneurship development and the project funds

Students and Faculties Participated in the workshop on How to Raise Funds

Entrepreneur Development Cell (EDC) (Convener)

Principal'Sig~ature Dr. R. S. Jahagirdar

,{~: i:tri~lral KG Reddy College of Engirieerina 8 Te~hn~;v~_

t~hiikLr ('J}, 1Vloinabad (M}. la,,.irt.~ist., Teia~ga~a.