Vishrut Shah

Vishrut Shah Business Consultant, Business Strategiest, Legal Advisor, Startup Mentor

19/10/2020

Here is my take on farmers bill where i have explained impact of this bill on different stakeholders of the agriculture industry and opportunity lying with the startup and corporates in the field of agriculture

As a first part of series of addressing different challenges faced by various entrepreneurs and simplified approach towa...
14/07/2020

As a first part of series of addressing different challenges faced by various entrepreneurs and simplified approach toward it today will like to discuss about Wantrepreneur. They always keep struggling about clarity on basic questions for their entrepreneurship journey.

These questions mainly include

- Nature of Business
- Structure of Business
- How to kick start Journey

Selection of Products or Service, identification of segments is the most difficult part and the first step to Business. Let's understand what are the factors which must be considered to identify your line of business.

- Demographic Position
- Future Economy and Consumption Pattern
- No of Players in the Industry & Entry Barriers
- Individual Strength
- Approach of Regulatory Authority

Demographic Position

It is a crucial aspect when we are exploring a product or service since it largely affected by Age group of People, Gender Classification, Culture and Income Classification of Population we are targeting

If we take an example of India than 26% is population having less than 15 Years and 18% Population is between the age group of 15 – 24 Years making 44% of the Population under 25 creating huge base for the Products and Services for Children and Youth for next 10 Years.

So Products like Mobile Phones, Laptops, Textiles, Toys, etc. will see constant demand for coming years and similarly there will be a huge market for Services like Education, Entertainment, Dating Services, and Recruitment Services etc

One more such parameter can be urban and Rural Population, wherein India Presently has 65% of Rural Population creating scope for the demand for Agriculture, Dairy Farming, FMCG, Infrastructure etc in the coming years.

So this can be one of the bases to determine your product/ Services

Let’s share what industry or product/ Services do you think can be game changes considering demographic position presently or future. Comment your thoughts in message or any idea you have on the subject to make this series more interesting

There are different types of entrepreneurs and all of them have separate Challenges and support requirements.Let's under...
13/07/2020

There are different types of entrepreneurs and all of them have separate Challenges and support requirements.

Let's understand the types of entrepreneurs

a) Wantrepreneurs
b) Startupreneur
c) Buisnessprenuers

A) Wantrepreneurs

There are a set of people who have zeal and enthusiasm to run business but confuse to initiate their entrepreneurship journey and need clarity on different aspects of Business. They clear about what they want as end result but not clear about the path and often driven by other people influence.

B) Startupreneurs

These are people who are making big headlines today in the Indian Ecosystem and we recognise them as start-up owners. These are entrepreneurs into an early stage of their business life cycle having concept and idea and looking for technical and commercial validation. The best part of these entrepreneurs is their passion for their concepts and new edge entrepreneurship which is way forward and dynamic than traditional business entrepreneurs.

C) Businesspreneurs

These are entrepreneurs who have achieved the significant mark in setting up their business. They run successful business and always willing to take up new adventures to progress further or diversify their business empire. Their products and services may not be unique but have large commercial validation.

Let’s share what kind of entrepreneur you are or you want to be in the messages and will come back with more detailed posts on the real-time issues faced by entrepreneurs to find out the best possible solutions.

01/06/2020

Major Highlights of today’s Union Cabinet Meeting – 1st June,2020

a) MSME Definition applicable from 1st July,2020

Definition further relaxed than proposed under Atma Nirbhar Scheme with below classification:

Micro-Enterprise –

Investment up to Rs 1 crore investment and Turnover up to Rs 5 crore

Small Enterprise –

Investment up to Rs 10 crore investment and Turnover up to Rs 50 crore

Medium Enterprise –

Investment up to Rs 50 crore investment and Turnover up to Rs 250 crore

b) Special Support to assist for SME Listing

Government will take Private Equity in the MSME and then promote them to get listed on Exchange and fund of Rs. 50,000 Crore is allotted for the purpose

c) Stressed Fund of Rs 20,000 crore subordinated debt liquidity scheme for MSME is approved.

The scheme will be routed through CGTSME Mode.

d) PM Street Vendor Atma Nirbhar Nidhi Yojana (PM SVA Nidhi Yojana)

Special Scheme to Advance Rs. 10,000/- to street Vendors

e) Increase MSP by 50- 83% for Kharif crops

26/05/2020

Let’s understand how world leaders are addressing to COVID 19 implications through their stimulant package as compare to India. So first Country we are considering is USA

USA – Total Stimulant Package 2.3 Trillion US Dollars

Loans & Liquidity - $500 billion

$500 billion dollar fund to bailout failing corporates & distresses assets. This includes helping sectors of national importance.

Employment - $250 billion

Jobless insurance for 13 weeks and include a four-month enhancement of benefits. The program also includes freelancers, furloughed employees and gig workers, such as Uber drivers.

Direct Cash Transfer - $600 billion

$1,200 in direct payments to taxpayers with incomes up to $75,000 to $99,000.
Families would receive an additional $500 per child

Small Business - $349 billion

Federally guaranteed loans available at community banks to small businesses that pledge not to lay off their workers and will be forgiven if the employer continued to pay workers for the duration of the crisis A Special Pay check Protection Programme to help small businesses keep their employees on payroll.

Incentives to Promote Specific Industry & Business - $250 Billion

$100 billion for hospitals and health systems across the nation
$150 billion flows as direct aid to states
$75 billion would be available for industry-specific loans — including to airlines and hotels.

The government had announced an amount of Rs. 3 Lakh Crore Credit Extension to MSMEs under "Atma Nirbhar Bharat Abhiyan"...
25/05/2020

The government had announced an amount of Rs. 3 Lakh Crore Credit Extension to MSMEs under "Atma Nirbhar Bharat Abhiyan".

Please find its details and guideline issued by the authority to avail its benefit

Business owners often complain thata) We don’t have Fund so we cannot operate or scale-upb) We are not able to raise the...
24/05/2020

Business owners often complain that
a) We don’t have Fund so we cannot operate or scale-up
b) We are not able to raise the Funds due to Market & Economy Scenario
c) Our Business Valuation is Severely affected due to COVID 19 impact
d) We don’t want to sell the stake of company at this valuation

Well most of the time we believe that macro factors are affecting our business but it’s not always true. Economy Factor does affect but the core aspect of any business lies into its Business Modelling, Revenue Modelling and Market Positioning. If it’s done right than no circumstances can affect our business, and it can overcome any scenario more sharply than entire Industry.

One such Example is JIO PLATFORM.
- It has raised Rs. 78,562 Crore in last 30 Days by diluting 17% of its equity on hand
- Its Business Value have increased by 13% in last 30 Days making it Rs. 4.92 Lakh Crore Company

Yes it’s true that Market was favouring it’s product / service offering even during lockdown, Reliance Brand is attached to it, Strategic Equity stake selling to Facebook have trigged the further Stake Selling Opportunity.

But most important is constant effort. As per the Report Facebook deal was under pipeline since last 12 Months, so it’s not overnight success. It was all started when JIO was not having largest User Base in India, when JIO was not making Profit but a calculated market strategy and dedicated efforts make it all happen

- Developing sustainable visionary Model
- Right positioning of your product in the market &
- Positive Revenue for your Business and

It’s learning for all new business set up struggling with initial fund issue, focusing only on business valuation and feeling that with the right amount of funding only they can success.

Here comes the first detailed scheme of the announcement under the Atma Nirbhar Bharat Abhiyan for Micro Food Enterprise...
23/05/2020

Here comes the first detailed scheme of the announcement under the Atma Nirbhar Bharat Abhiyan for Micro Food Enterprise. Please find below a brief note on the same.

This scheme is aiming at helping Micro Enterprise, Self Help Groups, Farmer Producing Organisation & Co-operative societies working in the food processing segment

Any stimulant Package should have two major prime focusesa) Helping local people to have disposable income on hand to me...
22/05/2020

Any stimulant Package should have two major prime focuses

a) Helping local people to have disposable income on hand to meet their requirements
b) Helping industry to facilitate business operation in terms of Fiscal Incentives, Regulatory Relaxation & Liquidity Measures

However if we see in Indian package context than majority focus was on policy decision making and majority of fund under package is towards facilitating Liquidity only. Fiscal incentive is to the tune of less than Rs. 2.18 Lakh Crore which comes to less than 11% of total package size announced & comes to 1% of GDP of India

Major Fiscal Incentives announced by India in terms of major allocation is as under –

Agriculture Infrastructure Fund – Rs. 1,05,500 Crore
Labours & Workers – Rs. 52,750 Crore
Fisheries, Dairy & Animal Husbandry – Rs. 35,500 Crore
Micro Food Enterprise – Rs. 10,000 Crore
Healthcare Infrastructure – Rs. 8100 Crore
Housing – Rs. 5,750 Crore

If we see above allocation than there is no majority announcement for the Industries, maximum allocation is for farmers, labours and basic sectors which give no direct support to Industries except in the nature of reforms and loan availability.

Stimulant Package was essential for all the countries to support their people, business, and keep the economy flow going...
21/05/2020

Stimulant Package was essential for all the countries to support their people, business, and keep the economy flow going on. Government is the only authority which can pump in money into the market and facilitate the industries and business to revive their business as well as helping the labour and work force to have disposable income in their hand so that they can spend the money, contribute to demand generation and also can ensure their basic needs fulfilment.

Let’s understand how our stimulant package stands against such package announced by other countries in terms of Package size as % to GDP size of country.

India – 10%
Japan – 21%
USA – 13.3%
France – 9.3%
China – 5.7%
Italy – 5.7%
UK – 5%
Germany – 5%

Please find below an analysis of sector wise allocation made in the economic stimulant package announced by the central ...
19/05/2020

Please find below an analysis of sector wise allocation made in the economic stimulant package announced by the central government last week.

It’s clearly evident that the main focus was on ensign liquidity with the bankers and financial institutions which was long time requirement for the sector since more than a year due to increasing case of defaults. Also first time we can see that Reduction in Cash Reserve Ratio (CRR) & Reverse Repo Rate is treated as Stimulant Package.

The second prime focus area was agriculture wherein also around Rs. 2.30 Lakh Crore is in the nature of Farmer’s Loan and not real incentives and direct benefit in nature.

Financial Minister while computing breakdown of Rs. 20 Lakh Crore also consider the announcement made under Pradhan Mantri Garib Kalyan Scheme which was to the tune of Rs. 1.70 Lakh Crore to meet the requirements of the needy people during Lockdown 1.0, however as per the government press release on 23d April,2020 i.e. after 30 Days of announcement of Lock Down an amount of Rs. 34000 Crore (20% of total announcement) is only spent on the scheme out of fund allocated.

So it will be interesting how much time this rest of the announcement will take to reach out to the real beneficiary and it can generate results

18/05/2020

With the end of Last tale of 20 Lakh Crore Saga of Economic stimulant package, it is clearly evident that the core area of focus under this package were

a) Bank & Financial Sector – Rs. 6.5 Lakh Crore
b) MSME – Rs. 3.70 Lakh Crore
c) Agriculture & Agri Infra Sector – Rs. 3.60 Lakh Crore
d) Power Distribution Companies – Rs. 0.90 Lakh Crore
e) MGNREGS – Rs. 0.80 Lakh Crore
f) Power Sectors – Rs. 0.55 Lakh Crore
g) Migrant Labour (Food & Advance) – Rs. 0.47 Lakh Crore
h) Fisheries – Rs. 0.20 Lakh Crore
i) Animal Husbandry – Rs. 0.15 Lakh Crore
j) Health Sector – Rs. 0.231 Lakh Crore
k) Micro Food Enterprise – Rs. 0.10 Crore

Thus if we total all this scheme having majority fund allocation it will come to Rs. 17.20 Lakh Crore. Other announcements which were not covered above are mainly either economic estimates or reallocation of the existing budget which are as below :

a) Construction Sector – Rs. 0.70 Lakh Crore
(Its Industry Growth Estimated)

b) Revenue Deferment due to TDS – 0.50 Lakh Crore
(its Deferment of Revenue & Not Loss)

c) Housing Sector Construction Worker – Rs. 0.31 Lakh Crore
(It is to be used by the corpus available with the States generated till date)

d) Revenue loss to government Rs. 0.078 Lakh Crore
(Its only Deferment of Revenue)

Above Estimates total to Rs. 1.58 Lakh Crore.

Its just a fact check of the announcement made and we will do further detailing to understand better about how it can impact you and your business in this week.

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