NMIMS BBA – B.Com Start your Startup Solved Answer Assignment

Start your Startup

Question 1: As said by Shri Dhirubhai Ambani, “The success of the young entrepreneur will be the key to India’s transformation in the new millennium.” Infact, several big companies today are startups of yesterday. Understanding the same, it is important to focus on the first step of startup’s journey and it is called as Bootstrapping. List down the reasons why according to you every startup should do bootstrap?

Introduction

 

One of the most significant benefits that can be acquired by utilizing the bootstrapping strategy is the chance for the creators of a company to maintain complete control over the instructions that their company will absorb in the future. This is one of the most substantial advantages that can be obtained. This is just one of the most important advantages that may be obtained if one so picks.

Concept and Application

Bootstrapping describes growing service and starting with minimal outside funding or funding. Bootstrapping entails using individual savings, income produced from the industry, and inexpensive resources to expand the business and launch. Below are some reasons every startup ought to consider bootstrapping:

1. Better control over the business: When a startup is bootstrapped, the owners have complete control over the company’s instructions. They can choose without the disturbance of financiers that may have various goals and objectives.

2. Lower risk: When a startup is bootstrapped, there is no stress to satisfy investor expectations or repay findings, which minimizes the risk of bankruptcy or failure.

Conclusion

Self-financing a company through the build-up of revenue and revenues is generally a strategy that can be effective for companies that are prepared to put in a significant amount of effort, are resourceful, and prioritize getting the job done as rapidly as possible can.

Question 2: “Most startups fail because they try to solve a problem which is not even there in the first place.” Understanding the reason at times startups do fail and fails wholesomely. List down based on the same what according to you are the reasons for start up’s getting failed?

 

Introduction

 

It is important to remember that failures can frequently function as instructional learning experiences. Suppose business owners are aware of the aspects that add to the loss of new businesses and ensure they do not make the same mistakes as other entrepreneurs. In that case, they may be more likely to achieve economic and professional success in their ventures.

Concept and Application

 

Startups have a high failing price, with some research studies suggesting that approximately 90% of startups fall short. There are numerous reasons that startups fail short, and here are some usual reasons:

1. Lack of market demand: Among the most common reasons for startup failure is a lack of market demand. Startups may have excellent products and services, yet if there is no demand for them, they will struggle to produce profits and scale their business.

2. Insufficient funding: Numerous startups stop working because they need more funding to sustain their procedures and scale their company. Startups need adequate resources to cover their expenditures and buy growth, marketing and research, and other growth efforts.

Conclusion

In conclusion, although the failure of new organizations happens very frequently, it is crucial for individuals who wish to begin their organizations to have a durable and adaptable mindset.

Question 3. a:Every financial decision should be driven by what we value. Considering the fact, identify what are different techniques available for raising capital available with start-ups?

 

Introduction

 

According to Leon Musk has said, when it involves founding and developing an organization, it is not just about the product but also regarding individuals behind it.

Concept and Application

“Bootstrapping” refers to self-funding that company proprietors use to fund their new firm by utilizing their money or assets. This technique is helpful because it permits local business owners to prevent the dilution of their shares and exposure to financial obligations while maintaining control over their company.

Conclusion

To conclude, gathering initial cash is an important stage in producing a new organization, and new ventures have several choices to pick from to accomplish this objective.

Question 3. b:“Successful investing is about managing risk, not avoiding it.”, Associating with the quote, bring about the factors that affect the investors interest?

Introduction

The expression “Successful investing has to do with managing threat, not preventing it” highlights that financial investment is naturally hazardous and that investors need to discover how to take care of and minimize these dangers instead of trying to avoid them altogether.

Concept and Application

Return on investment: While searching for opportunities to spend their cash, potential investors are most curious about those that assure a high return on investment. One crucial factor that drives people to invest is the opportunity to make substantial cash returns.

Conclusion

In conclusion, efficient threat management is among the essential facets of rewarding investing, and capitalists analyze various components when considering possibilities to make financial investments.

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