Introduction to the STARTUP , and all the term related to the startup is describe in this document. It is pure theory of startup.

1. University Institute of Technology
Rajiv Gandhi Proudyogiki Vishwavidyalaya
Department of Computer Science & Engineering
Session 2017-2018
LAB Manual
Program : B.E.
Semester : V
Class : CSE-B
Lab Name : Startup / Industrial Awareness
Submittedby: Submittedto:
Ranu Bharadwaj Prof. Sanjay Teheria
Megha sahu Prof. Priyanka Dixit

2. Introduction to startup
A start-up is a newly established business.
A company that is built from scratch but designed to scale with an unnaturally
high pace
To quote Paul Graham – an essayist, computer programmer and what not – a
startup is a “companydesigned to grow fast”. With many people attempting to
define a startup, I suggest that instead of searching for a well framed definition,
it would do good to you if you understand what a startup is – and by that I
don’tmean understanding the definition; but inhaling the essenceof the idea.
Enterprise
The word enterprise describes the actions of someone who shows
some initiative by taking a risk by setting up, investing in and running a
business.
A person who takes the initiative is someone who "makes things happen". He
or she tends to be decisive. A business opportunity is identified and the person
does something about it. Showing initiative is about taking decisions and being
bold – not everyone is like that!
All business investments carry an element of risk – which is the chance or
probability that things will go wrong. At the worst, the risk of an enterprise
might mean the personmaking the investment loses all his/her money or
becomes personally liable for the debts of the business.
Entrepreneurship
Running your own business .
"Entrepreneurship is much broader than the creation of a new business venture,"
said Bruce Bachenheimer.
Successfulentrepreneurs are typically confident and self-motivated.
An entrepreneur is someone who can take any idea, whether it be a product
and/or service, and have the skillset, will, and courage to take extreme risk to do

3. whatever it takes to turn that conceptinto reality and not only bring it to market
but make it a viable productand/or service that people want or need
What is the difference between a startup and a regular
small business?
In comparison to traditional business ventures, startups are expected to grow
rapidly, at a rate of between 5% and 7% per week in their initial stage
How these entities think about growth
Startups are different from traditional businesses primarily because they are
designed to grow fast. By design, this means that they have something they can
sell to a very large market. Formost businesses, this is not the case.
Generally speaking, to operate a business, you don’tneed a big market. You just
need a market and you need to be able to reach and serve all of those within
your market.
The relationship with funding
tend to rely on capital that comes via angel investors or venture capital firms,
while small business operations may rely on loans and grants.
Planning for the “end,” or the exit strategy
Another thing you’ll want to keep in mind is your vision for your business. If
you’re pitching for VC funding without an exit strategy, you’re unlikely to get
it. you’re probably going to want to ensure that exit plan comes in the form of a
steady revenue stream that allows you to pay off investors.

4. Acquisition
An acquisition is the purchase of all or a portion of a corporate asset or target
company.
When a target company is acquired by another company, the target company
ceases to exist in a legal sense and becomes part of the purchasing company.
Acquisitions are commonly made by using cash or debt to purchase
outstanding stock, but companies can also use their own stockby exchanging it
for the target firm's stock. Acquisitions can be either hostile or friendly.
Companies acquire target companies as a growth strategy becauseit can create a
bigger, more competitive, and more cost-efficient entity.
Venture Capitalist
A venture capitalist is an investor who either provides capital to startup ventures
or supports small companies that wish to expand but do not have access
to equities markets. Venture capitalists are willing to invest in such companies
because they can earn a massive return on their investments if these companies
are a success.
Well-known venture capitalists include Jim Breyer, an early Facebook
(FB) investor, Peter Fenton, an investor in Twitter (TWTR), Peter Theil, the
co-founder of PayPal (PYPL) and Facebook'sfirst investor, Jeremy Levine, the
largest investor in Pinterest, and Chris Sacca, early investor in Twitter and ride-
share company Uber.
Structure
A Venture capital firm, along wealthy individuals, insurance
companies, pension funds, foundations, and corporatepension funds among
others poolmoney together into a fund to be controlled by a VC firm. All
partners have part ownership over the fund, but it is the VC firm that controls
where the fund is invested, usually into businesses or ventures that most banks
or capital markets would consider too risky for investment. The Venture capital
firm is the general partner, while the pension funds, insurance companies, etc.
are limited partners.

5. Angel Investor
Angel investors invest in small startups or entrepreneurs. Often, angel investors
are among an entrepreneur's family and friends. The capital angel investors
provide may be a one-time investment to help the business propelor an ongoing
injection of money to supportand carry the company through its difficult early
stages.
Origins of Angel Investors
The term "angel" came from the Broadway theater, when wealthy individuals
gave money to propeltheatrical productions. The term "angel investor" was first
used by the University of New Hampshire's William Wetzel, founder of the
Center for Venture Research. Wetzel completed a study on how entrepreneurs
gathered capital.
Business Incubator
An organization designed to accelerate the growth and success of
entrepreneurial companies through an array of business supportresources and
services that could include physical space, capital, coaching, common services,
and networking connections .
Business incubation programs are often sponsored byprivate companies or
municipal entities and public institutions, such as colleges and universities.
Their goal is to help create and grow young businesses by providing them with
necessary supportand financial and technical services. There are approximately
900 business incubators nationwide, according to the National Business
Incubation Association.
Business Evaluation
Business Evaluations are one of the services provided under the Business
Management element of the Entrepreneurs’ Programme.
Independent and skilled Business Advisers undertake an impartial Business
Evaluation. It is tailored to the applicant's business to provide strategies for
business growth and business improvement.

6. Copyright
Copyright refers to the legal right of the owner of intellectual property. In
simpler terms, copyright is the right to copy. This means that the original
creator of a productand anyone he gives authorization to are the only ones with
the exclusive right to reproducethe work. Copyright law gives creators of
original material, the exclusive right to further develop them for a given amount
of time, at which point the copyrighted item becomes public domain.
How Long Does Copyright Last?
In the US, an original owner is protected by copyright laws all his life until 70
years after his death. But copyright protection varies from country to country,
and can stand for 50 to 100 years after the individual’s death, depending on the
country. If the original author of the copyrighted material is a corporation, the
copyright protection period will be shorter.
Corporation
Firm that meets certain legal requirements to be recognized as having a legal
existence, as an entity separate and distinct from its owners. Corporations are
owned by their stockholders (shareholders) who share in profits and losses
generated through the firm's operations, and have three distinct characteristics
(1) Legal existence: a firm can (like a person) buy, sell, own, enter into a
contract, and sue other persons and firms, and be sued by them. It can do good
and be rewarded, and can commit offence and be punished.
(2) Limited liability: a firm and its owners are limited in their liability to the
creditors and other obligors only up to the resources of the firm, unless the
owners give personal-guaranties.
(3) Continuity of existence: a firm can live beyond the life spans and capacity of
its owners, because
 its ownership can be transferred through a sale or gift of shares.
 Municipal authority of a town or city.
 A very large, usually diversified, firm.
Due Diligence
Due diligence is an investigation or audit of a potential investment or productto
confirm all facts, such as reviewing all financial records, plus anything else

7. deemed material. It refers to the care a reasonable person should take before
entering into an agreement or a financial transaction with another party. Due
diligence can also refer to the investigation a seller does of a buyer; items that
may be considered are whether the buyer has adequate resources to complete
the purchase, as well as other elements that would affect the acquired entity or
the seller after the sale has been completed.
In the investment world, due diligence is performed by companies seeking to
make acquisitions, by equity research analysts, by fund managers, broker-
dealers, and of courseby investors. Forindividual investors, doing due
diligence on a security is voluntary, but recommended. Broker-dealers,
however, are legally obligated to conductdue diligence on a security before
selling it. This prevents them from being held liable for non-disclosure of
pertinent information.
Downline
In multi-level marketing, a downline refers to thepeople you have
recruited after you joined a program and whose sales or own referrals
generate income for you. A downline can thus provide multiple levels of
compensation(hence the designation Multi-Level Marketing) depending on the
compensation plan which differs according to each company. )
Some use the term “affiliate marketing” although the latter is a little too broad
(and incorrect) to apply the a “downline.” Adownline goes down on several
levels (in a pyramidal scheme) while affiliate marketing is up on only one level
of remuneration, which means you can not earn income on your referrals’
referrals (and so on).

8. STAGES OF A STARTUP LIFE
From the moment you make the decision to set up a business, you’re in the
“business lifecycle.” This will see you journey from idea to startup, and if
successful, through to the growth and maturity phases.
While it’s fair to say that business is never not challenging, a look at each of the
stages of the business lifecycle highlights a unique set of obstacles to deal with
and overcome. You will have to be flexible in your thinking and adapt your
strategy as you move along. Indeed, different approaches are required for
market penetration versus, for example, what may be required to achieve
growth or retain market share.
Stage 1: Seed And Development
This is the very beginning of the business lifecycle, before your startup is even
officially in existence. You’ve got your business idea and you are ready to take
the plunge. But first you must assess just how viable your startup is likely to be.
At this stage, you should garner advice and opinion as to the potential of your
business idea from as many sources as possible: friends, family, colleagues,
business associates, or any industry specialists you may have access to.
Ultimately the success ofyour business will come down to many factors–
including your own abilities, the readiness of the market you wish to enter and,
of course, the financial foundation in place (how are you going to finance your
launch?).
In some ways, this is the soul-searching phase. It’s where you take a step back
and consider the feasibility of your business idea, and also ask yourself if you
have what it takes to make it a success.
Stage 2: Startup
Once you have thoroughly canvassed and tested your business idea and are
satisfied that it is ready to go, it’s time to make it official and launch your
startup. Many believe this is the riskiest stage of the entire lifecycle. In fact, it is
believed that mistakes made at this stage impact the company years down the
line, and are the primary reason why 25% of startups do not reach their fifth
birthday.
Adaptability is key here, and much of your time in this stage will be spent
tweaking your products orservices based on the initial feedback of your first

9. customers. It can even get to the point where you are making so many changes
to your offering that you start to feel a bit of confusion. That’s just noise, and
the main advice here is to power through the blurriness, becauseextreme
iterations upfront will naturally seem confusing. Restassured the clarity will
once again come.
Stage 3: Growth And Establishment
If you’re at this stage, your business should now be generating a consistent
sourceof income and regularly taking on new customers. Cash flow should start
to improve as recurring revenues help to cover ongoing expenses, and you
should be looking forward to seeing your profits improve slowly and steadily.
The biggest challenge for entrepreneurs in this stage is dividing time between a
whole new range of demands requiring your attention– managing increasing
levels of revenue, attending to customers, dealing with the competition,
accommodating an expanding workforce, etc.
Hiring smart people with complementary skillsets is necessary to make the most
of your company’s potential during this phase, and so any good founder will be
spending a lot of time directly involved in the recruitment process.
It is essential that you start to come into your role as head of the company in
this stage. While you’ll still be on the front lines often enough, you need to be
aware of how your expanding and highly qualified team is going to be taking
over a great deal of the responsibilities that were previously tightly under your
control. It is your job now to start establishing real order and cohesion as you
mobilize the teams according to clearly defined and communicated goals.
Stage4: Expansion
At this stage you might feel there is almost a routine-like feel to running your
business. Staff is in place to handle the areas that you no longer have the time to
manage (nor should you be managing), and your business has now firmly
established its presence within the industry. Here you might start to think about
capitalizing on this certain level of stability by broadening your horizons with
expanded offerings and entry into new geographies.
Businesses in this stage often see rapid growth in both revenue and cash flow as
the blueprint has now been established, but be warned about getting too
comfortable. In business, if you are not moving forward you are moving
backwards, and without a constant, almost nervous itch or desire to expand,
complacency can set in, and you might get caught off guard.

10. There are, of course, two sides to this coin, with the other involving a risk of
expanding too carelessly. While there is no crystal ball and it is very hard to get
an idea of what will be the results of your undertakings, you can give yourself
the best possible chance of continued success through careful planning. Look at
your resources, be realistic about the effort and costand potential returns, and
always keep an expert eye on how expansion might impact the current quality
of service you provide your existing customers.
Remember, while having a successfulbusiness model behind you is
undoubtedly an advantage, it is not a guarantee that it will work elsewhere
within other markets, or that new offerings will result in the same success. The
business graveyard is littered with organizations that took on too much and
failed. Your task is indeed to take on new challenges as you look to constantly
expand, but measure your risk and do your best to secure the company for all
eventualities.
Stage5: MaturityAnd Possible Exit
Having navigated the expansion stage of the business lifecycle successfully,
your company should now be seeing stable profits year-on-year. While some
companies continue to grow the top line at a decent pace, others struggle to
enjoy those same high growth rates.
It could be said that entrepreneurs here are faced with two choices: push for
further expansion, or exit the business. If you decide to expand further, you will
need to ask yourself the same questions you did at the expansion stage: Can the
business sustain further growth? Are there enough opportunities out there for
expansion? Is your business financially stable enough to cover an unsuccessful
attempt at expansion?
And, perhaps most importantly, are you the type of leader who is up for the task
of further expansion at this stage? In fact, many companies change leadership
here, bringing in a seasoned CEO who is more fit to navigate the new
challenges.
Many at this stage also look to move on through a sale. This could be a partial
or full sale, and of coursedepending on the company type (for example, public
or private), the negotiation may be a whole new journey in itself.
Navigating TheBusinessLifecycle
Not all businesses will experience every stage of the business lifecycle, and
those that do may not necessarily experience them in chronological order. For

11. example, some businesses may see astronomical growth right after startup, and
the founders may decide to cash out right away, jumping straight to that “exit”
stage.
For many companies, though, there will be some sort of resemblance to the
stages defined above, and awareness may help you anticipate what is coming
next and how you can bestprepare yourself and your team to maximize your
chance of success.Making the right decisions at each stage is another thing
altogether, however, and that will require your usual mix of gut instinct and
practical business sense.

12. LAWS AND INITIATIVES
Startup means an entity, incorporatedor registeredin India :
 Not prior to seven years, however for Biotechnology Startups not prior to ten
years,
 With annual turnover not exceeding INR 25 crore in any preceding financial
year, and
 Working towards innovation, development or improvement of products or
processes orservices, or if it is a scalable business model with a high potential
of employment generation or wealth creation.
Provided that such entity is not formed by splitting up, or reconstruction, of a
business already in existence. Provided also that an entity shall cease to be a
Startup if its turnover for the previous financial years has exceeded INR 25
crore or it has completed 7 years and for biotechnology startups 10 years from
the date of incorporation/ registration. Provided further that a Startup shall be
eligible for tax benefits only after it has obtained certification from the Inter-
Ministerial Board, setup
Choosing a business type:
At the absolute beginning, when you set up your organization, you must brand
it as a 'private limited' or 'single proprietorship' or something else. While this
may seem unnecessary, it goes a long way to decide your company's visibility,
sustainability and profitability
Choosing your brand will depend on your long-term goals and vision. Every
type has a separate set of laws, and you have to decide keeping the existing
legal frameworks in mind.
Taxes:
Taxes can be taxing. Every company has to pay central, state and local taxes.
You will be in a better position if you know the basics of accounting and the
how taxation works. Tax laws are tricky. More importantly, taxes vary across
sectors, regions and products. Keep all that in mind .
Securities laws:
You'd want to list on the stockexchange at some point. The Securities and
Exchange Board of India (SEBI) reforms these laws periodically. Keep up with
these.

13. Business finance:
Business finance means the way you manage your startup's financial needs
across its life cycle. This includes everything from FDI (foreign direct
investment), angel investors, VCs (venture capitals) or even joint ventures. This
will take your business to the next level.
Labour laws:
It's obvious you'll have people working for you. You'll also need freelancers and
contractors. Thoseare all protected under labour laws. You must follow labour
laws. This will increase their productivity and morale as well.
Intellectual Property (IP) laws:
If you're doing anything new - with codes, designs or research, intellectual
property (IP) is with you. Timely IP audits are important. Also, it's critical that
you file the right patent/trademark/copyright claims. This will prevent theft.
Information Technology law:
IT laws include digital signatures and e-contracts. As you start using
proprietary software and cloud computing services, you'll get your hands on a
bulk of data collected from consumers.
You must protectyour client's privacy electronically. There will be hackers
who'd want to steal this data. That's where knowledge of IT laws come in
handy
Contract law:
When you can't always hire, so you hire contractors. Contracts are indispensable
to entrepreneurs. Hence, basic knowledge of fundamental principles of contracts
can help.
Settling disputes:
Disputes are inevitable. What's important is how you settle them. When disputes
arise, legalities do creep in and things do get messy.

14. INDUSTRIALISSUES RELATED TO STARTUPS
The Globalization of Companies and Industries
“Going global” is often described in incremental terms as a more or less gradual
process, starting with increased exports or global sourcing, followed by a
modest international presence, growing into a multinational organization, and
ultimately evolving into a global posture. This appearance of gradualism,
however, is deceptive. It obscures the key changes that globalization requires in
a company’s mission, core competencies, structure, processes, and culture. As a
consequence, it leads managers to underestimate the enormous differences that
exist between managing international operations, a multinational enterprise, and
managing a global corporation. Research by Diana Farrell of McKinsey &
Company shows that industries and companies both tend to globalize in stages,
and at each stage, there are different opportunities for and challenges associated
with creating value.
Entrepreneurship and Small and medium-sized
enterprises (SMEs)
Analysis also reveals that SMEs are less impacted from global melt down
during the last 3 years 2013-16 becausethe sales had increased in 81 percent
firms despite world faced the recession.
Small and Medium Enterprise (SME) business has a tremendous potential for
entrepreneurs as far as business opportunities are concerned. SME businesses
are the biggest contributor to the economy of any country and these small and
medium sized enterprises play a central role in the economy. They are a major
sourceof entrepreneurial skills, innovation and employment. SME is one of the
most crucial sectors as far as the number of employment generation is
concerned.
The purposeof the MSME is implicit in the very purposeof the MSME
Development Act, 2006. Every country has its own definition of “what is
considered” as a small and medium sized enterprise. In accordancewith the
provisions of Micro, Small & Medium Enterprises Development (MSMED)

15. International Investing
International investing is the strategy of selecting globally-based investment
instruments as part of an investment portfolio. International investing includes
such investment vehicles as mutual funds,
American Depository Receipts, exchange-traded funds (ETFs) or direct
investments in foreign markets. People often invest internationally for
diversification, to spread the investment risk among foreign companies and
markets; and for growth, to take advantage of emerging markets.
International investments can be included in an investment portfolio to
provide diversification and growth opportunities. All types of investments
involve risk, and international investing may present special risks, including:
-Fluctuations in currency exchange rates
-Changes in market value
-Significant political, economic and social events
-Low liquidity
-Less access to important information
-Foreign legal remedies
-Varying market operations and procedures