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14 June Startup

The document outlines a comprehensive guide on starting and scaling a startup, highlighting key reasons why 90% of startups fail, such as lack of market need and poor marketing. It emphasizes the importance of creating a Minimum Viable Product (MVP) and understanding essential financial terms like ROI and CAC. Additionally, it provides a step-by-step roadmap for validating business ideas through targeted survey questions.

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0% found this document useful (0 votes)
34 views26 pages

14 June Startup

The document outlines a comprehensive guide on starting and scaling a startup, highlighting key reasons why 90% of startups fail, such as lack of market need and poor marketing. It emphasizes the importance of creating a Minimum Viable Product (MVP) and understanding essential financial terms like ROI and CAC. Additionally, it provides a step-by-step roadmap for validating business ideas through targeted survey questions.

Uploaded by

worldakash42
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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HOW TO START

YOUR STARTUP
“From Idea to Impact:
Practical Path to Start & Scale
Your Business
1. Why Startups Fail
2. Important key point
3. Step-by-step startup road map

4. Company Setup & Legal Basics


5. Marketing & Branding
6. Mindset, Habits & Growth of a Founder
“90% of startups fail.”
Do you know why?
THE TOP REAL REASONS WHY 90% OF STARTUPS FAIL

1. No Market Need

They build something nobody really wants.

Example: A fancy tech product built without real customer pain.

2. Poor Marketing & Sales

Great product, but no one knows about it.

Example: A useful app without ads, SEO, or influencer outreach.


3. Running Out of Cash

Expenses > Income → Business dies


Example: Spending too much on team, office, tools, but no revenue.

4. Wrong Team

No alignment, weak execution, poor hiring.


Example: A tech startup with no full-time developer.

5. Ignoring Customer Feedback

Founders fall in love with the idea, not the user.


Example: Refusing to change features even after bad reviews.
6. Bad Unit Economics

Selling at a loss → Scaling increases losses.


Example: Product cost ₹300, but selling at ₹250 for discounts.

7. Competition Crushes Them

A bigger or faster startup enters with better funding or branding.


Example: Local delivery startup wiped out when Swiggy entered.

8. Legal / Compliance Issues

Missed GST, didn’t register company, got into lawsuits.


9. Lack of Clarity & Leadership

No vision, poor decision-making, unclear roadmap.


Example: Changing business model every month.

10. Founder Burnout / Conflict

Mental health, overwork, or fights between co-founders


startup and business
important key point
🔵 1. MVP – Minimum Viable Product
The first, basic version of your product/service that is good enough
to test with real users and collect feedback.
🔹 Example:

1. Amazon – MVP Example


Startup Idea: Sell books online

MVP (1994-95):
• Amazon started as a simple website that sold only books.
• When someone placed an order, Bezos would manually purchase the
book from a distributor and ship it.
• There was no complex tech, no massive warehouse, no app — just a
working website.

Lesson:

Start simple. Focus on one product. Validate online shopping behaviour.


2. Zomato – MVP Example

Founders: Deepinder Goyal & Pankaj Chaddah


Startup Idea: Make restaurant menus accessible online

MVP (2008-09):
• Started as “Foodiebay”, a basic website where they uploaded scanned
PDFs of restaurant menus in Delhi NCR.
• Users could simply search restaurants and see menus — no ordering,
no app, no payments.
• It was a menu discovery tool, not a food delivery service initially.

Lesson:

Don’t try to be a full solution at Day 1. Start with one pain-point and
solve it really well.
🔵 2. ROI – Return on Investment
How much return you earned on the money you invested.
🔹 Formula: (Profit ÷ Investment) × 100
🔵 3. USP – Unique Selling Proposition
The one unique thing that makes your product/service stand
out from others.
🔹 Example:
🔵 4. CAC – Customer Acquisition Cost
How much it cost you to get a new customer.
🔹 Formula: Total marketing cost ÷ No. of new customers
🔵 5. R&D – Research and Development
The process of testing, researching, and improving a
product/service before full launch.

🔵 6. VC – Venture Capitalist
ऐसे investors जो early-stage startups में पैसा लगाते हैं और equity
लेते हैं।
🔵 7. Equity
The percentage of ownership in a business or startup.
🔹 Example: 20% equity का मतलब 20% company आपकी।
🔵 8. Bootstrapping
Starting a business with your own money or support from
friends/family — without outside investors.

🔵 9. Burn Rate
How much money your startup is spending every month.
🔹 High burn rate = Risk zone for startups
10. Pivot

To completely change your business model or product


direction based on customer or market feedback.
🔹 Example: BookMyShow started as a ticketing software
and later pivoted to B2C.
Finance & Growth Terms
🟡 11. Revenue
Your total income from sales — before subtracting any expenses.
🔹 Example: ₹1,00,000 in total sales = ₹1,00,000 revenue
12. There are 4 Main Types of Profit (in business):

🔵 1. Gross Profit (बेसिक प्रॉफिट)


What is it?
This is your profit after removing only product costs (like raw
material, delivery, etc.) — before rent, salaries, marketing.

💡 Formula: Gross Profit = Revenue – Cost of Goods Sold (COGS)


🔹 Example:
You sell 1 cake for ₹1,000
Ingredients + delivery cost = ₹400
👉 Gross Profit = ₹1,000 – ₹400 = ₹600
🔵 2. Operating Profit / EBITDA
(Earnings Before Interest, Tax, Depreciation, Amortization)

What is it?

This is your business performance profit – after subtracting operating


costs like rent, staff salary, electricity — but before loan interest, tax,
depreciation.
EBITDA = Gross Profit – Operating Expenses
💡 Formula:
🔹 Example:
Gross Profit = ₹600
Kitchen Rent = ₹100
Salary = ₹150
Electricity = ₹50
👉 EBITDA = ₹600 – ₹300 = ₹300
🔵 3. Net Profit (सब खर्चा हटाकर जो बचा)
What is it?

This is your final profit — after subtracting everything:

• Product cost • Rent, salary, electricity • Tax, loan interest, depreciation

💡 Formula:
Net Profit = Revenue – All Expenses (including tax, interest, etc.)
🔹 Example:
EBITDA = ₹300
Loan Interest = ₹50
Tax = ₹30
👉 Net Profit = ₹300 – ₹80 = ₹220
🔵 4. Profit Margin (Percentage में Profit)
What is it?

This shows how much profit you make per ₹100 of sales.

💡 Formula: Profit Margin = (Net Profit ÷ Revenue) × 100

🔹 Example:
Net Profit = ₹220
Revenue = ₹1,000
👉 Profit Margin = (220 ÷ 1000) × 100 = 22%
🟡 13. Cash Flow
The movement of money — how much cash is coming in and going out of your
business.

🟡 14. Working Capital


Cash and resources needed for day-to-day business operations.
🔹 Formula: Current Assets – Current Liabilities
🟡 15. Assets & Liabilities
• Assets: What you own (cash, equipment, stock)
• Liabilities: What you owe (loans, bills)

🟡 16. P&L Statement


Profit and Loss Statement — shows if your company made a profit or loss over a
specific time period.
🟡 19. Valuation
The market value of your company — based on
revenue, brand strength, profit, and future
potential.

🔹 Basic Formula: Assets – Liabilities = Net Worth


Step-by-step
startup road map
TOP 10 SURVEY QUESTIONS TO VALIDATE A PRODUCT OR BUSINESS IDEA

🔹 1. What is your biggest challenge related to [problem area]?


👉 This helps you understand the real pain point your customer is facing.
🔹 2. Have you ever tried to solve this problem before?
👉 Reveals whether they are actively looking for a solution.
🔹 3. How are you currently dealing with this problem?
👉 Tells you what alternatives they are using — competition, jugaad, or nothing at all.
🔹 4. Would you be interested in trying a new product/service that solves this issue?
👉 Helps you measure initial interest in your idea.
🔹 5. What are your expectations from such a product/service?
👉 Understand what features or benefits matter most to them.
🔹 6. How much would you be willing to pay for a solution like this?
👉 Helps you plan your pricing and estimate willingness to pay.
🔹 7. What is most important to you when choosing a product/service?
(Price / Quality / Time-saving / Customer support / Trust)
👉 Helps you define your USP and positioning.
🔹 8. If we launched this product/service, would you like to try it?
👉 Filters potential early adopters.
🔹 9. Would you recommend this to someone you know? Why or why not?
👉 Measures shareability and brand trust potential.
🔹 10. Can we contact you again for feedback or updates?
👉 Builds a follow-up list and potential lead database.
START SMALL
THINK BIG
ACT NOW
Keep fighting in building your
dream business
THANK
YOU

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