Indian Start-up should never Depend on Government Benefited Schemes
In the last blog, I had written on technology implementation. In this blog, i am sharing a real experience that I feel and face. Final conclusion “if a startup wants to get success then focus on innovation – Key of success for startup ”
Here I am not talking about Startup where they have good Political Support where they have no liquidity problem, if you don’t have liquidity problem then you have several options where you can generate profit. For Example,
- Start Manufacturing Unit for Food Product
- Invest Money in Capital Market (I will Suggest Nifty 50 Stock where Risk can be minimized ).
and it is obvious it will help in increasing your balance sheet figure and credential. As a startup, i Realize that “Indian Start-up should never Depend on Government Benefited Schemes”. Some experiences are,
- Don’t Select Government Promoted Co-Working Space :
Startup having limited resources in term of Fund, resources etc I feel Real startup doesn’t have control of government officer and Government officer always keep his/her interest if they help you, so it will be wise decision if you decide to finalize co-working space then Select Private Co-working Space (Usually Available in metro city ).
My Experience: On the Verbal Commitment ( by Director -STPI Ranchi) that I will get 800 Sq Feet Well furnished space With Furnished Workstation, PC etc so I moved for STPI Registration I Pay 30000 INR as impalement fees Finally I realize it is wastage of Time, money and Energy. On Completion of Impalement Process, I got space inside STPI Ranchi, I recruited some new Team members. Suddenly I got a notice that STPI Ranchi doesn’t have space, It was terrible experience After due Diligence I found all startup in STPI Ranchi is very close to STPI Director. Below is the list of Startup in STPI Ranchi.
2 Don’t believe in Government Financial Help Scheme :
Yes, It is True! I Got Mudra Loan (Over Draft ) but every year Bank Charges i. e Processing and Renewal Charges are approx 5 % of the Loan Amount Annually Plus Interest. So you should Plan before moving inside the Government scheme! Even If do not have good relation with banker then you will not get Mudra Loan.
3. Don’t Go for Government Big Project :
Government Project & Tender Totally Depend on Government Officer If you are moving around the government Tender Then Below is the Hurdles for Startup.
- You are Paying EMD That will Block for Some Time
- Do not Know when Government Cancel Tender.
- In Big Project You Should have Fund Backup and I feel Startup usually work in Liquidity Crisis
- Startup should focus on Innovation.
- Startup Should focus on Outsource of services (You will Get GST Benefit).
- Always Plan as per Availability of resources and fund.
- Always focus on Quality & Customer Satisfaction.