October 17, 2024 | CA B K Goyal & Co LLP

What is a startup business?

learn / Shruti / October 17, 2024

The term “startup” refers to a company in the early stages of its operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand. These companies generally launch with high costs and limited revenue, which is why they look for capital from a variety of sources such as angel investors and venture capitalists. Startups typically require several years to make a profit, so significant, high-risk investments typically are needed to get one off the ground. What Is A Startup? The answer to the question, “What is a startup?” is that it is a new business venture providing services or products to an existing and growing market. A startup is in the first stage of operations and comprises one or more entrepreneurs. The primary aim is to answer market demand by creating new and innovative products or services. While most small businesses might intend to stay small, a startup focuses on fast growth in a designated market. Usually, such companies start as an idea and gradually grow into a viable product, service or platform.Startups begin with high costs and have limited revenue. Also, they do not have a developed business model and lacks adequate capital to move to the next phase. As a result, these companies seek funding from various sources, such as venture capitalists, angel investors and banks. Investors or lenders might offer additional funds for a share of future profits and partial ownership. Often, these companies use seed capital for investing in research and developing business plans. Research helps them determine the demand for a specific product and a business plan outlines the company’s goals and marketing strategies. Types Of Startups Scalable startups- Often, companies working in the technology domain belong to the scalable startup group and these companies work hard to rapidly grow and achieve a high return on investment (ROI). This type of startup requires extensive market research to determine untapped market opportunities. Some examples of this type of startup are consumer and business apps. This startup model requires external capital to generate demand and ensure company expansion. Scalable startups do this by raising capital from external investors.With the investment they receive, a startup can support growth initiatives and focus on grabbing the target market’s attention. A scalable startup is a right choice if a business product or service has an untapped market and offers vast growth potential. Small business startups-The purpose of a small business startup is longevity rather than scalability. While these businesses have an interest in growth, they grow at their own pace. Business owners usually bootstraps and self-finance these startups. This means that they have less pressure to scale. Some examples of small business startups include hairdressers, grocery stores, travel agents and bakers. Also, many of these startups are family-owned. A small business startup is a right choice if a business plans to hire locals and family members to operate a business or create a sustainable and long-lasting business. Social entrepreneurship startups- Unlike other types of startups, a social entrepreneurship startup does not focus on wealth generation for the founders. Instead, they build such a business to change the environment and society positively. Some examples of these companies include charities and non-profit organisations. These companies usually scale for doing philanthropy activities. Though they operate like other startups, they do it through donations and grants. A social startup is a right choice if a business plans to create a positive environmental or social impact or if the company has an idea of solving a widespread social problem. Large company startups-A large company or offshoot startup includes large companies that have been in operation for a long time. Companies that fit into this category start with revolutionary products and quickly become famous. As big businesses are self-sufficient, they grow along with new market demands and trends. For this reason, it is essential for these companies to keep up with changes to sustain themselves.Backed by support and capital, these offshoot startups focus on diversifying product offerings and plans to reach new audiences. An offshoot startup is a right choice if a business owns a large company or wants to penetrate a new market that is not the business’s primary focus. Lifestyle startups- People who have hobbies and want to pursue their passion can build a lifestyle startup. Often, these business owners desire independence and spend their energy, money and time building a startup. These business owners earn money by pursuing their favourite hobby or activity. Some examples of lifestyle startups include a dancer opening a dance school, an avid traveller starting a touring company or a software developer starting online coding classes.A lifestyle startup is a right choice if a business owner has a hobby they can pursue or is passionate and creative about starting a new business on their hobby. Buyable startups- Unlike other startups on this list, buyable startups do not aim to become large and successful. A business owner builds such a company from scratch to sell it to a big company. Usually, you are likely to find such companies in the technology and software industry. Many of these startup industries are in the mobile application development industry. A buyable startup is a right choice if a business owner wants to develop a company but do not want to operate it long term or if the business idea has tremendous growth potential. Main characteristics of a startup company Innovation – Startups are usually founded on a unique idea High Growth Potential – Startups are designed to proliferate, Scalability – Scalability refers to the ability of a company to overgrow while maintaining or increasing its efficiency and profitability. Problem-solving – startups are often focused on solving problems. Customer Focus – Startups are focused on creating value for their customers Pros and cons of a startup business Pros: Innovation: Startups are often founded with a new idea, technology, or product that disrupts an existing market. This innovative mindset often sets startups apart and can create a significant competitive advantage.

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Rajasthan Indira Mahila Shakti Training and Skill Development Scheme

The ‘Indira Mahila Shakti Training and Skill Promotion Scheme’ has been launched by the Rajasthan Government. It aims to provide computer and skill development training to girls and women from Rajasthan who are between 16 and 45 years. The Rajasthan government’s Women and Child Development Department offers a program called Indira Mahila Shakti Prashikshan Evam Koshal Sanvardhan Yojana (RS-CSEP). This free program helps women and girls improve their spoken English and communication skills, along with building their confidence. By learning new skills or sharpening existing ones, participants gain the tools they need to find better jobs, start their own businesses, and achieve financial independence. The program goes beyond just skills training, aiming to empower women by providing support and knowledge in areas like entrepreneurship, leadership, managing money, and personal growth. Indira Mahila Shakti Training and Skill Promotion Scheme The scheme welcomes applications from women of all categories, including housewives, adolescents, girls, self-help group members, college students, and women from economically disadvantaged minority groups. The course training will be provided through Rajasthan Knowledge Corporation Limited. The RS-CIT course has a training duration of 132 hours, which is equivalent to 3 months. Women between 16 and 40 years of age are eligible to apply for this course. Age of the applicants will be calculated from January 1, 2023. Applicants for the RS-CIT free course must have passed 10th standard . Priority will be given to widows, divorced individuals, abandoned women, and those affected by domestic violence. Candidates will be selected on the basis of merit list prepared by Rajasthan Knowledge Corporation Limited (RKCL). Selected candidates will receive training at IT knowledge centres chosen by the Rajasthan Knowledge Corporation Limited. Trainee attendance will be recorded using a biometric machine, and a minimum of 65% biometric attendance is mandatory for the trainees. To pass the RS-CIT exam, candidates must score a minimum of 40%. Selected trainees, chosen by the district-level committees, will receive training from Rajasthan Knowledge Corporation Limited based on their chosen IT knowledge domain. Of the allocated seats, 18% are reserved for Scheduled Castes (SC) and 14% for Scheduled Tribes (ST). Benefits of the scheme Beneficiary girls and women will be provided free training in computer and speaking English based courses. The beneficiary will be given free training in the following courses :- RS-CIT (Rajasthan State Certificate Course in Information Technology). RS-CFA (Rajasthan State Certificate in Financial Accounting). RS-CSEP(Spoken English and Personality Development). The beneficiary will also be given a certificate after completion of the training. Eligibility Syllabus Eligibility RS-CIT(Rajasthan State CertificateCourse in Information Technology) The applicant must be a native of Rajasthan. The age of the applicant should be between 16 years to 40 years. The applicant must have passed 10th class. RS-CFA(Rajasthan State Certificatein Financial Accounting) The applicant must be a native of Rajasthan. The age of the applicant should be between 16 years to 40 years. The applicant must have passed 12th class. RS-CSEP(Spoken English andPersonality Development) The applicant must be a native of Rajasthan. The age of the applicant should be between 16 years to 45 years. The applicant must have passed 12th class. Required Documents Proof of residence in Rajasthan/permanent certificate. Age certificate. Caste Certificate (if applicable) Educational certificate of 10th class. Educational certificate of 12th class. Aadhar card. Jan Aadhar Card. Mobile number. Passport size photo of the applicant. email id. The following documents are required to be submitted depending on the situation :- Death certificate of husband (for widowed woman) Talaqnama(on divorce) Proof of desertion(for deserted woman) FIR/Domestic Violence Report (for woman victim of violence) Indira Mahila Shakti Training and Skill Promotion Scheme – Application Process 1. Applicants should visit the official website of the scheme at www.myrkcl.com/wcdnew. 2. On the homepage, candidates must enter ‘Janadhaar Number’ and the ‘CAPTCHA code’. 3. After successfully adding the details, click on the ‘Get Details’ option. 4. An OTP (One-Time Password) will be sent to the applicant’s registered mobile number. 5. Applicants should enter the OTP number and click on the ‘Confirm’ option. 6. Subsequently, the application form for the scheme will become accessible. 7. Applicants should carefully complete the form by providing the required information according to the provided guidelines. 8. After uploading the necessary documents, submit the form. FAQs What is the Indira Mahila Shakti Training and Skill Promotion Scheme? The Indira Mahila Shakti Training and Skill Promotion Scheme is a government initiative. It is aimed at empowering women by providing them with training and skill development opportunities to enhance their employability and economic independence. Which type of skill sets are trained in the computer training courses offered under this scheme? The training courses typically cover basic to advanced computer skills, including MS Office applications, internet usage, and more.