R.L.Narayanan – 360 Degree Group [email_address]

Founder / Director for 360 Degree Interactive & 360 Degree Consulting Avid Market Watcher, Financial Strategist & Capital advisor Part of The Knowledge Foundation with events like Proto.in, Barcamps & Elements 5 Blogger, Tweeter, Columnist Graduation in Economics, Finance & Advertising 14 years of experience in sales & marketing, financial control and top level management R.L.Narayanan | narain@gmail.com

Founder / Director for 360 Degree Interactive & 360 Degree Consulting

Avid Market Watcher, Financial Strategist & Capital advisor

Part of The Knowledge Foundation with events like Proto.in, Barcamps & Elements 5

Blogger, Tweeter, Columnist

Graduation in Economics, Finance & Advertising

14 years of experience in sales & marketing, financial control and top level management

Why you need to structure? Story of a “Pottikadai” Ownership Management Risk Management Scaling of Operation Strategic Thinking R.L.Narayanan | narain@gmail.com

Why you need to structure?

Story of a “Pottikadai”

Ownership

Management

Risk Management

Scaling of Operation

Strategic Thinking

Legal Structuring Its about the place you live & operate abiding to the law of the land. Team Structuring Building a team from scratch. Moving from an one man idea to a diversified team R.L.Narayanan | narain@gmail.com

Legal Structuring

Its about the place you live & operate abiding to the law of the land.

Team Structuring

Building a team from scratch. Moving from an one man idea to a diversified team

One man army – Sole Proprietorship Individual driven Individual Ownership & Liability Personal attachment for Liabilities No greater legal validity No external investment opportunity Very narrowed Scaling Possibility R.L.Narayanan | narain@gmail.com

One man army – Sole Proprietorship

Individual driven

Individual Ownership & Liability

Personal attachment for Liabilities

No greater legal validity

No external investment opportunity

Very narrowed Scaling Possibility

Partnership – 2+ More Partners driven Partner Ownership & Liability Personal attachment for Liabilities for defaults No greater legal validity Limited, in-formal investment opportunity R.L.Narayanan | narain@gmail.com

Partnership – 2+ More

Partners driven

Partner Ownership & Liability

Personal attachment for Liabilities for defaults

No greater legal validity

Limited, in-formal investment opportunity

Private Limited – 2+ More Legal Entity Promoters absolved from individual liability Stipulated Laws of operation Greater audit control & Governess Easy for External Investments to flow in Greater unlisted Opportunity Liked very much by professional investors – Angels, VCs, PEs R.L.Narayanan | narain@gmail.com

Private Limited – 2+ More

Legal Entity

Promoters absolved from individual liability

Stipulated Laws of operation

Greater audit control & Governess

Easy for External Investments to flow in

Greater unlisted Opportunity

Liked very much by professional investors – Angels, VCs, PEs

LLP – Limited Liability Partnership (near future) Best of Both the worlds (Partnership & Pvt. Ltd) Legal validity with clear laws Flexible ownership for micro / small operations Greater unlisted Opportunity Less cost of Operation on compliance Very much in line for professionals (Chartered Accountants, Doctors, Lawyers, Architects ) R.L.Narayanan | narain@gmail.com

LLP – Limited Liability Partnership (near future)

Best of Both the worlds (Partnership & Pvt. Ltd)

Legal validity with clear laws

Flexible ownership for micro / small operations

Greater unlisted Opportunity

Less cost of Operation on compliance

Very much in line for professionals (Chartered Accountants, Doctors, Lawyers, Architects )

Essentials for a legal entity in India Memorandum & Articles of Association Incorporation Certificate Director Identification Number (DIN) Permanent Account Number (PAN) Tax Deduction Account Number (TAN) Service Tax Registration Professional Tax Registration An external Auditor to audit your accounts Current Account in a Bank R.L.Narayanan | narain@gmail.com

Essentials for a legal entity in India

Memorandum & Articles of Association

Incorporation Certificate

Director Identification Number (DIN)

Permanent Account Number (PAN)

Tax Deduction Account Number (TAN)

Service Tax Registration

Professional Tax Registration

An external Auditor to audit your accounts

Current Account in a Bank

The Birth of an Idea Friends / Relatives in the game Black Stories about Friends Horrible Stories on Relatives (Reliance, Bajaj) Personal Relationship Vs. Professional Relationship – the divider line Own Money Vs. Friends / Family’s money Need for structuring the finances R.L.Narayanan | narain@gmail.com

The Birth of an Idea

Friends / Relatives in the game

Black Stories about Friends

Horrible Stories on Relatives (Reliance, Bajaj)

Personal Relationship Vs. Professional Relationship – the divider line

Own Money Vs. Friends / Family’s money

Need for structuring the finances

Single Head Vs. Multiple Head Size of the founding team – Preferably 2-4 [Ex. Microsoft, Apple ] Its not mandatory. Infosys had around 8+ co-founders Why you Need for a Co-founder Complimentary skills Different PoV of the business idea Division of Work Contacts & Networks R.L.Narayanan | narain@gmail.com

Single Head Vs. Multiple Head

Size of the founding team – Preferably 2-4 [Ex. Microsoft, Apple ]

Its not mandatory. Infosys had around 8+ co-founders

Why you Need for a Co-founder

Complimentary skills

Different PoV of the business idea

Division of Work

Contacts & Networks

What qualities you need in a Co-founder ? Believing in the business idea Honesty & Transparency Willing to go the extra mile for the firm Flexibility in face of changing circumstances Is a friend / relative can be a co-founder? It depends Build the dividing line clearly Don’t mix personal & professional relationship R.L.Narayanan | narain@gmail.com

What qualities you need in a Co-founder ?

Believing in the business idea

Honesty & Transparency

Willing to go the extra mile for the firm

Flexibility in face of changing circumstances

Is a friend / relative can be a co-founder?

It depends

Build the dividing line clearly

Don’t mix personal & professional relationship

What qualities you need in a Co-founder ? Believing in the business idea Honesty & Transparency Willing to go the extra mile for the firm Flexibility in face of changing circumstances Is a friend / relative can be a co-founder? It depends (TVS Group, Murugappa Group, DLF, Google) Build the dividing line clearly Don’t mix personal & professional relationship R.L.Narayanan | narain@gmail.com

What qualities you need in a Co-founder ?

Believing in the business idea

Honesty & Transparency

Willing to go the extra mile for the firm

Flexibility in face of changing circumstances

Is a friend / relative can be a co-founder?

It depends (TVS Group, Murugappa Group, DLF, Google)

Build the dividing line clearly

Don’t mix personal & professional relationship

Building a team is essential in any entrepreneurial activity Every company is started with promoters and few first employees Scaling up slowly but effectively 5 Core Areas of a successful company – Strategy / Top level management Operations Sales & Marketing Finance HR & Administration R.L.Narayanan | narain@gmail.com

Building a team is essential in any entrepreneurial activity

Every company is started with promoters and few first employees

Scaling up slowly but effectively

5 Core Areas of a successful company –

Strategy / Top level management

Operations

Sales & Marketing

Finance

HR & Administration

Great businesses are built with sound advice & strong Board with absolute Corporate Governance (Ex. Enron, Tyco, Worldcom, Satyam) Considering a Mentor first Putting together a Board A Board is not an old boy’s club. It provides strategic direction & put forth goals for the management team to achieve R.L.Narayanan | narain@gmail.com

Great businesses are built with sound advice & strong Board with absolute Corporate Governance (Ex. Enron, Tyco, Worldcom, Satyam)

Considering a Mentor first

Putting together a Board

A Board is not an old boy’s club. It provides strategic direction & put forth goals for the management team to achieve

Without a destination, the journey is not complete Be clear with what you wanted to achieve eventually Are you for “Build to Last or Built to Flip”? Flipping is build a business and sell Lasting is to build a business for generations Both the models are right with its pros & cons Without a clear exit option, Investors won’t be interested in your business R.L.Narayanan | narain@gmail.com

Without a destination, the journey is not complete

Be clear with what you wanted to achieve eventually

Are you for “Build to Last or Built to Flip”?

Flipping is build a business and sell

Lasting is to build a business for generations

Both the models are right with its pros & cons

Without a clear exit option, Investors won’t be interested in your business

Without a destination, the journey is not complete Be clear with what you wanted to achieve eventually Are you for “Build to Last or Built to Flip”? Flipping is build a business and sell Lasting is to build a business for generations Both the models are right with its pros & cons Without a clear exit option, Investors won’t be interested in your business R.L.Narayanan | narain@gmail.com

Without a destination, the journey is not complete

Be clear with what you wanted to achieve eventually

Are you for “Build to Last or Built to Flip”?

Flipping is build a business and sell

Lasting is to build a business for generations

Both the models are right with its pros & cons

Without a clear exit option, Investors won’t be interested in your business

Be humble to your customers Be genuine to your vendors Be gentle with your employees Be straight with your investors Be clear with your team Be specific with your Board Be clean before the Law R.L.Narayanan | narain@gmail.com

Be humble to your customers

Be genuine to your vendors

Be gentle with your employees

Be straight with your investors

Be clear with your team

Be specific with your Board

Be clean before the Law

Disclaimer: I am not a chartered accountant or corporate lawyer. Do clarify any details with specialized professionals before taking your decision. R.L.Narayanan | [email_address] / [email_address] | +91-98401 08007 Its’ your turn to Drill me down! R.L.Narayanan | narain@gmail.com

Disclaimer: I am not a chartered accountant or corporate lawyer. Do clarify any details with specialized professionals before taking your decision.

R.L.Narayanan | [email_address] / [email_address] | +91-98401 08007

Its’ your turn to Drill me down!