Tag: development

Different Types of Funding Optimization for Your Small Business

Introduction

A small business thrives on capital put into it by the founders. As each of them have some amount of remuneration paid to themselves, the business in this mode cannot deal with expansion.

These payroll distributions limit the company to a certain area of inception. It cannot move out of its present location and the founders have to deal with it until there is a considerable growth of the company- big enough to support their salary needs.

What are other modes of investment?

There are other diverse modes of investment for a small business. Let’s take a look at them:

  1. Friends and family This is the most popular mode of investment by start-ups. There can be considerable amount put forth by well wishers who have a common goal towards the success of the company. Even there is a better aspect in terms of interest paid to these kith and kin. They do not qualify for returning the amount with a specific interest annually. This consensus is not good for the intricacies of the bonhomie shared with them. The spat can turn ugly with them feeling cheated or the relationship can turn sour after not being paid their due for a long time. I know a person who bore the brunt of bitter relationships once his wife behaved rigid with his partner- the partner’s wife usurped the whole company and even runs it still. This is a drawback. But it is advisable to offer some interest to them that is competent in the market, just to keep peace.
  2. Angel investing This type of investment is quite popular as these investors engage with start-ups. Many people get benefited from these affluent individuals. But these people get a share in your business and the details of the investment should be checked carefully.

Conclusion There are quite a few benefits from various types of funding. But, the bigger picture is being buoyant in the industry with perseverance and dedication. A keen eye and professional guidance is the key to success. PrEver Consulting is doing a lot in these regard to equip start-ups through Helsinki Business Hub and strategies.

PrEver Consulting, along with Helsinki Business Hub and the Finnish Funding Agency for Innovation TEKES invite you to connect with the impressive R&D and product evolution opportunities Finland has to offer with a deep-dive into the Finnish innovation & support ecosystem.

For more information click on the link below:

Accelerate your business to a global success story from Finland

 

Can India create the next Google or Apple?

Can we create the next Google, Apple, Uber, Air bnb, Alibaba, Amazon or valuable product companies like SAP, Oracle etc.?

The answer is NO. Not by the way we are thinking today!5_hpheader_home-page-slider

From the turn of the millennium we have been very successful in exporting IT services across the globe and that mindset has kept us in a comfort zone for quite some time. We have created great companies in IT services companies from the nineties. Most Indian entrepreneurs today come out from these large companies who have been used to the easy way of leveraging on foreign billing, hence taking advantage of the sliding rupee.

Today we do have Start Ups, incubation and accelerator programs for college graduates and folks willing to be entrepreneurs, but we either create an app, e-commerce platform, market place or a solution for an industry that caters mainly to the local market only. Only a few entrepreneurs are creating the next big wave in information technology or any Sciences.

For sure the local market is huge. That’s a no brainer. Even Jeff Bezos, Amazon Founder plugged and played India. But, the need of the hour is to create something that is not just good for the promising local market, but also for the whole globe. Internet penetration across the globe is increasing in leaps and bounds.

There could be several reasons to this. One could be that follow the cash creating leaders like Flipkart, Red bus etc. These companies are promisingly catering to the local market. There could be several reasons why they chose to remain within India.  The con or buck is just passing hands and nor real revenues are visible to the discerning.

The other reason could be the existing venture capitalist and investor community within India. Based on casual interactions with few top partners from the community, it is very clear that they are investing a lot in companies and ideas that can penetrate the local market. Many a times, they are talking registrations and sales from Tier 1 and Tier 2 cities of India. Could this make the Indian Entrepreneur from restricting himself? Many great global ideas get shot down in the process. It seems as though the investor community has a mandate or there could be some global political agenda behind this, as majority of the investment for these activities comes from abroad which is beyond the entrepreneur’s understanding. Moreover, the investment groups have got a taste of the quick valuation game and ROI by investing in companies that have penetrated the Indian market. They are taking the easier route out.

During my consulting with good Indian companies with promising products, I always used to tell them, that creating a product only for the local market is a “crime”. With internet penetration and connectivity growing across the globe including remote parts of Africa, it actually seems like a crime creating a product and solution only for the local market. Yes, of course you have to start local, but the ultimate goal must be to “Go Global.”

Consulting across the globe, it is very clear that governments of several G20 nations and developed nations are encouraging their entrepreneurs to come up with big technological ideas for the global market. It is also evident that they have created eco-systems where funding for product development and other activities for global reach are available. This is not yet available in India in a structured manner. Time for a change in mindset!

Hopefully the answer to my question mentioned above will become a firm “Yes” in the near future and this can happen only if you and I together decide to genuinely “Go Global.”

All the best Indian Entrepreneurs!

 

Finland: Land of Innovation and Collaboration

istock_000011790889mediumFinland has the best ambiance for setting up a software business. This is possible because of the conducive atmosphere created by this country’s different government agencies. There are a lot of companies that have set up their research and development wings in Finland.

Such companies have greatly benefited from the highly divergent business atmosphere. There are a lot of verdant parks and lung space to be rejuvenated after working considerable hours.

The talent pool of engineers is also an asset for Finland. It has a technical talent pool of 116,000 skilled people. This is the same thing echoing from Timo Jokiaho, the ex-Vice President of the Finnish R&D Center, Huawei, when he says, “It is easier to find top class engineers in Finland than in many other countries today. We’re also very happy with the smooth cooperation with research institutes in Finland.”

There are varied reasons for this pleasant reaction from the management heads of acclaimed companies like Huawei. Government agencies like Helsinki Business Hub do a lot for the software companies the world over who want to enter the software business in Helsinki. They provide funding for them and create a healthy atmosphere among the players.

It has helped Helsinki to retain the number one spot in property rights, intellectual property protection, venture capital availability, patent specialization in software, internet penetration and considerable helping in the least number of documents to be furnished to register a firm. Such conducive environment among the players is always a good sign to invest and reap manifold.

The IT population in Helsinki has 53% of Master’s degree and 23% of them have a Bachelor’s degree. Finland has the third lowest labour costs of IT talent in Europe.

The preferred language being dominantly English, there cannot be difficulties for outsiders. The reason being that whenever the natives are asked questions in a broken Finnish accent, the response registered is in English.

This is greatly efficient for companies who like to accommodate, relocate or shift their talent base to the Helsinki region. The employees can have a blissful experience when greeted with a verdant atmosphere all round. There are a lot of exquisitely planned urban spaces which include a conveniently compact City-Center.

This sprawling City-Center can help make a walk to any utility buildings, parks, banks, schools and other everyday destinations easy. In the next 20 years, there can be 80,000 new resident walkers in Helsinki.

This makes Finland one of the most sought-after destinations in Europe for world-class engineers because of the innovative and collaborative atmosphere all round. This quality of Finland has put PrEver Consulting firm on its toes to bring quality service to this region and helping software companies to make use of the ample resources offered here.