Frequently Asked Questions

1. What is a startup?
Answer:
Any business entity which depends on either product innovation or Process innovation to deliver products/services to customers can be termed as "Startup". It can be from any sector but should generate employment rather than an activity for self-sustenance.

2.What is a startup definition by Department of Industrial Policy and Promotion (DIPP)?
Answer:
An entity shall be considered as a start-up:

  • up to a period of 7 years from the date of incorporation/registration, if it is incorporated as a private limited company or registered as a registered partnership firm or a limited liability partnership in India. In the case of start-ups in the biotechnology sector, the period shall be up to 10 years from the date of its incorporation/ registration.
  • The turnover of the entity shall not exceed Rs.25 Crore.
  • The entity should be working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
However, an entity formed by splitting up or reconstruction of an existing business shall not be considered a 'start-up'.

3. How to get recognized as startup?
Answer:
Recognition certificate from any of the following:
a) DIPP
b) Startup cell, Manipur Startup
c) Incubators / accelerators sponsored by govt /Private
i. ex: DST Sponsored TBIs, Industry Sponsored Incubator/Accelerators
d) Research Institutes
i. ex: IIT, IIM, NIT, IISc, MIT, MTU
Incorporate:
Any startup is considered as MSME. To set up a Micro/Small / Medium Enterprise, the Entrepreneur has to register with concerned District Industries Centre of the District & obtain Acknowledgement.

4. How to apply for recognition by Manipur Startup Cell?
Answer: Apply online at https://apply.startupmanipur.in a revenue stage or idea stage.

5. What are the documents required for applying in revenue stage startup?
Answer:
i. Certificate of registration
ii. Audited Balance sheet
iii. Profit and loss statement
iv. Income Tax returns
v. PAN card of business entity
vi. AADHAR card of the applicant

6. What are the documents required for applying in idea stage startup?
Answer:
i. AADHAR card of the applicant
ii. PAN card (not mandatory)

7. What is founder?
Answer:
The entrepreneur who started a business. If multiple entrepreneurs were involved in the creation of the company, they are referred to as the founders. The origin of the word is that a founder originally meant a person who forges steel; similarly, the founder of a company is forging the new entity.

8. What are the five stages of your business lifecycle?
Answer:
Stage 1: Seed and Development (Idea Stage)
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.
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.
Stage 3: Growth and Establishment (Revenue Stage):
If you're at this stage, your business should now be generating a consistent source of 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.
Stage 4: 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.
Stage 5: Maturity and 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.

9. What are the different categories in the Manipur Startup application?
Answer:
(a) General (b) Women, and (c) Student

10. What is 'Business to Business - B to B'?
Answer:
Business to business, also called B to B or B2B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. Business to business stands in contrast to business to consumer (B2C) and business to government (B2G) transactions.

11. What are the B2B Examples?
Answer:
Business-to-business transactions and large corporate accounts are commonplace for firms in manufacturing. Samsung, for example, is one of Apple's largest suppliers in the production of the iPhone. Reports in late 2017 estimated that Samsung could pull in as much as $22 billion from the OLED displays it supplies for Apple's iPhones in 2018. Apple also holds B2B relationships with firms like Intel, Panasonic and semiconductor producer Micron Technology.

B2B transactions are also the backbone of the automobile industry. Many vehicle components are manufactured independently, and auto manufacturers purchase these parts to assemble automobiles. Tires, batteries, electronics, hoses and door locks, for example, are usually manufactured by various companies and sold directly to automobile manufacturers.

Service providers also engage in B2B transactions. Companies specializing in property management, housekeeping and industrial cleanup, for example, often sell these services exclusively to other businesses, rather than individual consumers.

12. What is 'Business to Consumer - B2C'?
Answer:
Business to consumer (B2C) refers to the transactions conducted directly between a company and consumers who are the end-users of its products or services. The business to consumer as a business model differs significantly from the business-to-business model, which refers to commerce between two or more businesses. While most companies that sell directly to consumers can be referred to as B2C companies, the term became immensely popular during the dotcom boom of the late 1990s, when it was used mainly to refer to online retailers, as well as other companies that sold products and services to consumers through the internet.

13. What is 'Business to Government - B2G'?
Answer:
Business-to-government or B2G refers to business conducted between private sector firms and governments.
An example of a business-to-government service would be a small business' providing IT consulting to a local government agency. The B2G category covers contracts of all sorts – for goods, services and information – between businesses of all sizes and government at all levels (state, local and central).

14. What is a 'Target Market'?
Answer:
A target market is the market a company wants to sell its products and services to, and it includes a targeted set of customers for whom it directs its marketing efforts. Identifying the target market is an essential step in the development of a marketing plan. A target market can be separated from the market as a whole by geography, buying power, demographics and psychographics.

15. What is an 'Investment'?
Answer:
An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

16. How solving problems is connected with successful entrepreneurs?
Answer:
"A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed," says Neil Blumenthal, cofounder and co-CEO of Warby Parker.
Becoming a successful entrepreneur isn't about being able to raise huge sums of cash or having the knowledge and skill to expertly apply the latest marketing strategies. It's about one thing: solving problems. True entrepreneurs know that the best companies are those that are founded to meet a demonstrated need amongst their markets.

17. What is 'Turnover'?
Answer:
Turnover is an accounting term that calculates how quickly a business collects cash from accounts receivable or how fast the company sells its inventory.

Two of the largest assets owned by a business are accounts receivable and inventory. Both of these accounts require a large cash investment, and it is important to measure how quickly a business collects cash. Turnover ratios calculate how quickly a business collects cash from its accounts receivable and inventory investments.

18. What is Net Profit?
Answer:
Often referred to as the bottom line, net profit is calculated by subtracting a company's total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time (usually one year). Also called net income or net earnings.

19. What is an 'Asset'?
Answer:
An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses or improve sales, regardless of whether it's manufacturing equipment or a patent.

20. What is 'Debt'?
Answer:
Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.

21. What is 'Return on Equity (ROE)'
Answer:
Return on equity (ROE) is the amount of net income returned as a percentage of shareholders' equity. Return on equity (also known as "return on net worth" [RONW]) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder's Equity

ROE is useful in comparing the profitability of a company to that of other firms in the same industry. It illustrates how effective the company is at turning the cash put into the business into greater gains and growth for the company and investors. The higher the return on equity, the more efficient the company's operations are making use of those funds.

22. What does Commercial Off-The-Shelf (COTS) mean?
Answer:
A COTS product is usually a computer hardware or software product tailored for specific uses and made available to the general public. Such products are designed to be readily available and user friendly. A typical example of a COTS product is Microsoft Office or antivirus software. A COTS product is generally any product available off-the-shelf and not requiring custom development before installation.

23. What does Modified Off-The-Shelf (MOTS) mean?
Answer:
Modified off-the- Shelf (MOTS) is a type of software solution that can be modified and customized after being purchased from the software vendor. MOTS is a software delivery concept that enables source code or programmatic customization of a standard prepackaged, market-available software.

MOTS is designed to be used for organizations that prefer predeveloped software, which can be slightly or substantially customized to meet business objectives. MOTS-based software solutions provide partial or complete access to the source code of the underlying software. The software buyer can review the code and product literature to modify the appearance, functionality and/or the business logic of the software.

24. What is GOTS?
Answer:
A GOTS (government off-the-shelf) product is typically developed by the technical staff of the government agency for which it is created. It is sometimes developed by an external entity, but with funding and specification from the agency. Because agencies can directly control all aspects of GOTS products, these are generally preferred for government purposes.

25. What does Proof of Concept (POC) mean?
Answer:
A proof of concept (POC) is a demonstration, the purpose of which is to verify that certain concepts or theories have the potential for real-world application. POC is therefore a prototype that is designed to determine feasibility, but does not represent deliverables.

Proof of concept is a term with various interpretations in different areas. POC in software development describes distinct processes with different objectives and participant roles. POC may also refer to partial solutions involving a small number of users acting in business roles to establish whether a system satisfies certain requirements. The overall objective of POC is to find solutions to technical problems, such as how systems can be integrated or throughput can be achieved through a given configuration.

In the business world, POC is how startups demonstrate that a product is financially viable. POC involves extensive research and review, and is submitted as a single package to concerned parties. It includes examination of the revenue model, in which companies show projected revenue from products and services, and indicate development cost, long-term finance projections and how much the service costs to maintain and market. It is an excellent way for a business to evaluate itself internally and at proposed acquisitions and projects.

26. What is business 'pitch'?
Answer:
A pitch is a presentation of a business idea to potential investors. People pitch a business because they need resources. If the goal is to raise startup cash, the target of the pitch is an investor. Other businesses pitch to potential customers to sell their product. Finally, some organizations pitch because they need a partner or resource to help them accomplish their mission.

It's important to remember that a pitch to an investor may not strictly seek startup capital. For example, a business may need an investment when it has an unexpected but very profitable order beyond its current capacity. Such a pitch is easier to make because investors feel far more secure with the purchase order in hand.

27. What are Elevator & Live Plan Pitches?
Answer:
The most important pitch to bring to your first meeting with a potential customer is the elevator pitch. The idea of an elevator pitch is that it's short, just like an elevator ride. If executed well, this short pitch will spark the curiosity of the client and encourage them to ask more questions. Because of its brevity, an elevator pitch works great when seeking investors.

Another type of pitch is the live plan pitch, which relies more on visual aids than on speaking. The general idea of this pitch is to hand all of the customer's representatives a neatly formatted single page containing relevant information such as a market summary, financial information, or related legislation. This type of pitch is particularly effective when meeting with individuals and organizations who value empirical data, such as accounting firms, financial planners, and banks. With a bit of customization, this type of pitch can be delivered to a variety of investors or customers.

28. What is innovation?
Answer:
Innovation generally refers to changing processes or creating more effective processes, products and ideas.

For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services. Innovation can be a catalyst for the growth and success of your business, and help you to adapt and grow in the marketplace.

Being innovative does not only mean inventing. Innovation can mean changing your business model and adapting to changes in your environment to deliver better products or services. Successful innovation should be an in-built part of your business strategy, where you create a culture of innovation and lead the way in innovative thinking and creative problem solving.

Innovation can increase the likelihood of your business succeeding. Businesses that innovate create more efficient work processes and have better productivity and performance.

29. What are the key steps towards business innovation?
Answer:
i. Find areas and ways to innovate in your business through research and planning:
ii. Conduct an analysis of the trends in the market environment, your customers' wants and needs and your competitors.
iii. Consult with customers and employees for ideas on improving processes, products and services both internally and externally. Find out more about connecting with customers for ideas.
iv. Seek advice. Use available resources such as business advisors, grants and assistance to drive innovation in your business. This may include seeking Intellectual Property (IP) protection to commercialise your ideas. Learn more about local collaboration and international collaboration with researchers.
v. Be open to new ideas and adaptive to change.
vi. Develop a strategic, responsive plan, which promotes innovation as a key business process across the entire business. Learn about creating an innovative business culture and developing a strategy for innovation.
vii. Train and empower your employees to think innovatively from the top down.

Remember, innovation is the key to competitive advantage for your business.

STARTUP MANIPUR

To make Manipur emerge as one of the top start-up destinations in the North East by providing the most enabling ecosystems to support and nurture start-up entrepreneurship in the State.