Check out the latest Manual for Indian Start-ups

Check out the latest Manual for Indian Start-ups

Posted by M.Venkatesh on June 12th 2017

The “Manual for Indian Start-ups”, is a  new handy manual that is set in the Indian context and draws upon experiences from entrepreneurs. Written by Vijaya Kumar Ivaturi, founder and CTO of Crayon Data, a big data analytics firm, and Sriram Subramanya, Chairman and Managing Director, Integra Software Services, an entrepreneur and an angel investor,the book is relevant for entrepreneurs who are in the first three years of starting their ventures.

What started off as an exercise to draw up a tool-kit for entrepreneurs as part of the CII National Council on Innovation and Entrepreneurship, got transformed into a handy manual for start-ups in India, using Indian examples and the local context.
“It is like a living document targeting entrepreneurs in the first three years of their journey, something that they can refer to. It is not a substitute for a lawyer or a chartered accountant whom they will hire for advice,” says IVK.
What makes the book relevant is that it deals with issues right from the stage an entrepreneur getting an idea to starting a business to building the team to forming the actual venture to getting the help of mentors or advisers to protecting intellectual property rights to marketing to raising funds. For each of these issues, the authors have explained what needs to be done, given a template for some of the agreements and have spoken to entrepreneurs who have narrated their experiences. 
Founder’s Agreement
A key issue it deals with is the founders’ agreement, setting out in detail the roles and responsibilities of the founders as quite often more than one founder with equal rights leads to problems and their power equations determine how decisions are taken. Invariably, problems arise among founders when the venture is set to scale its business when each founder has a different view on how to do that.
He says that a large number of entrepreneurs, because they are performing multiple tasks, do not maintain any records. They just tend to jot down on a piece of paper how much they have invested and what they have spent without having any records. This will become a problem when they go in for a fund raise, even at the seed stage. 

Legal support
The Manual also talks about how founders should themselves go through the clauses of the various agreements and hire lawyers and chartered accountants to help them understand some of the clauses. For instance, investors in the ventures have something called affirmative voting rights, which are crucial.
Investment options
Entrepreneurs will be better off engaging an investment advisor and a corporate advisor, and the entrepreneurs should take a judicious decision based on their advice.
Fund raising, should not be the goal of the entrepreneurs. They should always focus on their vision and seek to achieve traction for this vision. They should look to achieve break even at the earliest and then scale, and once this happens, all other things will fall in place. Entrepreneurship is one way of generating jobs. The ecosystem in the country is falling in place. Source: The HinduBusinessLine


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