Tea Exporters in India

1. Last year, India witnessed the birth of numerous Unicorns( companies with a valuation crossing 1 Billion USD ), and shows like Shark Tank India, brought created a considerable buzz amongst the masses. Thanks to the show, and some popular Youtube podcasts, a sizeable chunk of our nation's youth are very well aware about terms such as Startups, Funding, CAC( Customer Acquisition Costs ), Investors, Venture Capitalists, Bootstrapping etc. And after watching Shark Tank India, and checking out various types of content on how to start a business( we did something similar in one of our insights, where we explained the steps to start an Export Import Business ) hwo to raise funding , how to approach investors, etc, there was still a bit of confusion with as to should one go for a funding at first, or bootstrap the business? In today's insight, that is exactly what we will be discussing. Bootstrapping means starting a business venture, without any external investments. You might pitch in your own savings, or borrow from family or friends. Basically, you raise money without diluting any equity( ownership ) of the business. Tea Exporters in India Raising funds, refers to entrepreneurs seeking out investors to invest in their bsuiness in exchange for equity( ownership ) of their business. Now there are various types of investors: Angel Investors, Venture Capitalists, Incubators, etc. We are not diving too deep into that, not today. Petroleum Products Exporters in India Factors which mainly influence the decision: 1. Capital Requirement/Nature of the Business: This is the most crucial factor which one must ponder on, before making a decision. Different businesses require different amounts of money to stay liquid( functional ). Some industries are CAPEX( CAPital EXpenditure ) heavy while others are light on the coffers. Industries which have a high capex are those which require a robust spend on infrastructure, like machineries and plant, large workforce,extensive cashburns( amount spent on acquiring customers trhough ads, offers, discounts etc ), example: Automobile, Power, Energy, Manufacturing, and industries wth heavy competition, where you need to spend a lot of money to acquire customers. On the other hand there are businesses, such as IT companies, Marketing and Branding firms, certain SAAS( Software As A Service ) companies, which are asset light, and do not require heavy capital to be setup or run. So, according to your requirement, you need to make a call on the steps forward. Handicrafts Exporters in India 2. Autonomy: In an interview, Nithin Kamath the founder of Zerodha( India's Largest Stock Broker ), mentioned that out of the many reasons why they bootstrapped Zerodha( YES! India's Largest Stock Broker is a bootstrapped venture. Even we couldn't believe it until we checked out a lot of Nithin's interviews, and you should too! He is one of the finest entrepreneurs of our generation.) was due to the fact that he didn't want to have to call his investors to get the smallest of things tweaked or changed. And coming from someone like him, it holds some water. When someone gives you their hard-earned

2. money, in return for some equity in the business, the first thing they look for is Accountability, and more often than not, it leads to a subtle loss of autonomy for the founder, when the need for accountability changes into a need for Control . Whereas, this may not hold true for many investors such as Peter Thiel, who have built the businesses in which they have invested, with their experience and expertise, but many founders have faced a fate alike the one Nithin mentioned about. Hence, many entrepreneurs refrain from raising funds, until its absolutely necessary, because they are well acquainted with the fact that if they dilute too much equity or they end up oboarding an investor whose vision might not match theirs, then losing (control of) the company is not a farfetched notion. Importers of indian spices Well there may be many other factors which often influence this decision, but the above two remain the most significant. Now, whether or not to raise funds, is a decision which should be made on a case to case basis, and hence passing a blanket verdict would not only be inappropriate, but also a disservice done to the entire startup community. Hence we would draw the line here and hope to catch you reading our next Insight. Rice Importers in India