The Vault reality show and my expectations!

the-vault-and-my-expectationsWhat is ‘The Vault’ reality show about? And, what is that you think that I’m expecting from the show? Firstly, The Vault is a massive platform blessed for Small and medium businesses, Household businesses and nascent Startups  in India, powered by Times group, which helps to unleash ingenious startup ideas from aspiring Entrepreneurs. Those ideas can be limitless and reflect as a perfect opportunity to bridge the gap of talented innovative ventures and funding team, with a vision to build a better startup ecosystem in India. In fact, there will be multitudinous genres covered on single platform -Technology, Infrastructure, Health care, Apps, Games, Consulting, Banking and Financial services and more.

The Vault is  a reality show aired on India’s No.1 Business Channel – ET Now at 7.30 Pm on October 8th onwards  (every Saturday), which leaves a chance for ambitious entrepreneurs to meet five business moguls , yet reveal their interest to invest in distinctive business pursuits and products presented by wannabe-Entrepreneurs.

There are thousands of applications received and only 50 Entrepreneurs get a chance to pitch astounding ideas to these astute investors –

  1. Mohit Goel – A 27 Year old, CEO and Promoter of OMAXE Ltd, who is leading the real estate OMAXE enterprise and emerged as the second largest group with a valuation of INR 5000 Crores in North India. He is the recipient of – ‘Young Male Entrepreneur of the Year’ by Mr. Nitin Gadkari at Infra & Realty Sutra Awards 2014; Young Achiever’s award by ABP real estate awards 2014
  2. Sudip Bandyopadhyay -Promoter of Inditrade Capital- JRG, Bima Direct, Dining Plus, Klug Tech and other Fintech initiatives, has 28 years of expertise in various areas of finance and financial services.Companies like has succeeded ITC, Reliance Securities (Reliance Money), ICI, HLL and Destimoney Securities under his leadership through strategic investment acquisition strategies.
  3. Ameera Shah – Promoter, MD and CEO of Metropolis Healthcare Limited – It’s her leadership that changed the growth map of Metropolis  from single pathology laboratory  (2002) to a multinational chain of over 125 diagnostic and more than 800 collection centres across seven countries. She has listed in Asia’s Power Business Women 2015 by Forbes Asia and honoured as The Young Global Leader by World Economic Forum 2014. Besides  managing Metropolis dynasty, she extends her leadership abilities as a secretary of the Indian Association Pathology Laboratories and co-chairperson of Federation of Indian Chambers of Commerce and Industry (FICCI) Healthcare committee.
  4. Rahul Singh – Founder and CEO of The Beer Cafe . From being a Textile engineer to being a focused Entrepreneur has made him to reach a milestone and then become an active angel investor and Mentor to food startups such as Biryani Blues, Burger Singh and Yumcheck . He is the awardee of TiE-Lumis  Partners Entrepreneurial Excellence awards 2014 and Entrepreneur India 2015 award in Food and Beverages service. He extends his mentorship as the honorary secretary of the NRAI  (National Restaurant Association of India) , is the SIG (Special Interest Group) leader at TiE for food sector.
  5. Vivek Bhargava – CEO of IProspectCommunicate 2 , is a Digital marketing Expert with 17 years spent guiding  digital strategies of brands like MTV, Newscorp, Citi bank, TCS, HDFC Bank, ClearTrip, and Reliance in both Indian and Global Markets. He has shrewd interest in data science, artificial intelligence, virtual reality, augmented reality and machine learning. He has been esteemed as the Marketer of the year and dominates digital advertising in India with his expertise.

These ground-breaking leaders are the Keepers of ‘The Vault’ who hold a crucial decision making to say Yes or No instantly. If ‘Yes’ is their answer and that will be a lucky venture, receiving as much as funding up to INR 5 Crores.

I’m so impressed to know about the genius team, who revolutionised the concept of doing business is to dive deep with passion and reach sky with their visionary thoughts .

What is expected from the newbie-entrepreneurs?

It is not about few points aspiring entrepreneurs learn from this brilliant show, but, there will be measureless case studies, experiences, in-depth project knowledge, financials, what to care for , how to penetrate into the market with a better partnership that are to be learnt and taught trough every episode. From every idea that is inclined, I get to know many insightful topics of individual businesses and their purpose , which enhances my scope of knowledge from the perception of every member thoroughly .Every single idea or topic or venture pitched before the big shots prove a thought-provoking scenario and understand the striving entrepreneurs thirst to solve common man’s paint points in daily life chaos.

What will be the most significant part would be to know the answers from the Keepers. Any outcome forms as a befitting opportunity to progress further , but not let the ventures to stop their journey to succeed. If ‘Yes’ is the result, certainly, you will know better what happens next. There’s nothing much reliance required on how a venture advances from all grounds with the help of these investors. But, if they say ‘No’, this is the time to accept the greatest challenge and make toughest changes and act upon with more energy to excel in the pursuit to reach destination of your startup vision. Now, at this juncture, it is very much necessary to learn and implement any piece of advice or a suggestion or an intriguing question posed by the team. Don’t let your spirits go down just for the purpose to ‘Win’ the show, but, try to ‘Win’ the big hearts through their collaboration of thoughts about your startup mission. And, next, try to find more interesting methodology or process or approach to turn your venture as a next big thing in the market while engaging with them. Also, give a focus on fellow startup aspirants and grasp key insights while they pitch ideas and understand what is magnificent in their proposal or what is that missing? So, here you can have an exchange of words and start a mutual support to each of your proposals . This in time develops a network of aspiring team , whom might help your project somewhere  or sometime in future. In crux, don’t make yourself to get prepared with ‘Yes’ as a welcome sign, but , think again, you can’t miss any single moment and turn it as your greatest strength to you and as well to your startup.

Now, I’m very eager and excited to watch the series to be aired on ET Now  and experience the taste of Entrepreneurial spirit from all participants and know the motivation behind their Startup ventures. For more details, one can subscribe to The Vault show on Youtube channel or to their newsletters.

So do let me know your expectations and views from The Vault or what more you want to learn from these kind of Entrepreneurial reality shows.

@StartupsFormula – Learn, Share and Grow

 

 

Top 7 points you should consider before pursuing a small business loan

Top 7 points you should consider before pursuing small business loan.pngEnhancing and moving your business to next stage is only the result of your sheer hard work, commitment and gaining customers loyalty. At this stage there will be millions of questions, plans, ideas , thoughts and deals that run in your brain right now. But, one point you ponder  – is your Financial position. Let me put in right terminology, it is the working capital that is needed right now that upgrades your business, in terms of – product features, infrastructure development, purchasing more equipment to meet more customer needs, arranging for a new dedicated office, developing brand penetration, launch marketing campaign and other related stuff. There are bunch of good Financial institutions that offer various solutions to meet your current financial situations.

7-points-you-should-consider-before-pursuing-a-small-biz-loan

1. Ask these questions :Before, pursuing loan for your Startup or small business, it is significant to observe and find answers to following questions:

  1. Firstly, decide on how much amount is required for the next level of business goals?
  2. What type of loan you will need to cater your business needs?
  3.  How long will you need it ?
  4. Will your business has the capacity to repay the loan, interest and any one-off or on-going fees that come with the loan in future?
  5. What security you are ready to offer to the lender and how it affects your interest rate?

2.Always do check the following risk factors of your Startup or Small business:

  1. Financial, Business management and market risks
  2. Lack of Collateral or security
  3. Business growth history
  4. Industry sector barriers (entry and exit)
  5. Current micro and macro economic conditions
  6. Type of industry sector – factors that affect the levels of competition of your product, profitability growth
  7. Planning capability, product knowledge and finance skills – of your business
  8. To check your credit rating and assess your repayment capacity of loans

3.What type of funds to access: 

Semi-regular basis: It is applicable when your business need a cashflow to continue its operation while waiting for your customers to pay for goods, it is, where, at-call loans come into picture, such as – overdraft or line of credit created for this purpose.

Up-front basis: It is one-time payment solution provided to set-up a new venture or buy a new equipment.

Loan Terms: Your loan repayment is a total of actual loan plus interest on the loan. The repayment amount is proportional to the term period of loan repayment. Always, calculate the amount that is to be repaid after fixing the amount of working capital ,you would need, using financial calculators available online. Remember,the more number of years you choose to repay the more interest burden you’re  holding .

4.What other channels you can fund for ongoing expenses?

Overdraft or Line of credit is your another channel to get funds that cover your one-time expenses and fund ongoing expenses. This feature allows you to draw more than the amount in your checking amount, for which you’ll pay the interest on the overdraft amount. Fees charged is  -sometimes at each overdraft you draw; or annual fees. However, it contains inherently high interest rate associated with these type of loans.

5.If it is fixed or variable interest rate you want:

Fixed interest rate: It’s your interest rate that is fixed and you only pay fixed instalments through out your loan term.Further, fixed interest rate feature avoids any interest rate risks proportional to benchmark interest rate which is its merit.  And, its demerit is higher introductory interest rates compared to lower interest rate offered by variable rates or floating interest rates.

Benchmark interest rate explained: It is the base rate or prime rate that a central or Federal bank of a country determines a rate, which is charged by banks while lending loans and advances to its consumers (across various types of loans offered by individual banks), which controls the demand and supply of  nation’s currency and inflation of the economy. This base rate fluctuation does impact prime interest rates offered to consumers.

Variable interest rate: Clearly, it is the interest rate that fluctuates (over a period of time) in proportional to benchmark index or interest rates that change periodically. Its merit lies in its lower interest rates available once benchmark index rates fall and thus reflect on your repayments monthly. Conversely, it is same when base rate raises and interest rates certainly increase.

6.Security or Collateral backed by your assets: Banks do scrutinise the type of asset or property, you provide as security against borrowed amount. It is essential to classify your assets as secured or unsecured with your Financial advisor or Bank manager initially. A lender always seeks safest collateral backed by a consumer credibility, which mitigates the risk of default.

7.Fees or costs associated to your loan: There are additional costs or fees linked to process your loan application, like – credit score check, property or asset appraisal and basic administrative fees, establishment/application fees, exit/discharge fees. Next, research for business loan finder tools or lending fees and charges guide by particular financial institution to find more about set-up fees and ongoing fees associated to your monthly instalments.

More points to be considered: 

  1. Always seek advice from your accountant or financial planner before pursuing funds from financial institutions
  2. It is very significant to prepare your project proposal followed by an in-depth research and document appropriate profit and loss statement, cashflow projections (past,present and future). Lenders analyse your project with all adequate inputs put forward and reflect their decision which is ,indeed, dependent on your business potential , credit score, your business market share, customer base and more.
  3. Lenders do risk assessment – It is the level and  nature of security you’re offering to support your loan; your ability to repay loan regularly; and ability to repay total debt apart from other outstanding debts that to be paid. For which, there will be great emphasise focused on cashflow projections, as it shows cash remained after total expenses, which is an indicator of repaying capacity produced from your business.

From my recent research, I found that Entrepreneur media is extending its small business loan powered by CAN capital which is available to US businesses only ( Businesses in these states are not applicable for lending -CT, DE, MI, MN, MT, ND, NV, NJ, NY, RI, SD, TN and VT.California: loans made or arranged pursuant to a California Finance Lenders Law license by CAN Capital Asset Servicing, Inc. )   . CAN capital is the exclusive business finance provider for Entrepreneur media Lending.

There are three types of working capital loans available from CAN Capital – 1. Term Loan 2. TrakLoan  3. Instalment Loan

Term Loan : Term loan payment is not dependent on your fluctuated revenue where you get regular payments. And your business can use Term loan for- Inventory, Equipment, Taxes, Technology upgrade, expansion, renovation, payroll, marketing and staffing.

  • Funding amount : $2,500 – $150,000 amount per location
  • Payments method : Low fixed Daily
  • Loan Tenure: 3 – 36 months
  • Owner Credit rating: Fair to Excellent

TrakLoan: Trakloan payments are dependent on daily revenue percentage of your business. Your business can apply Trakloan for – Inventory, Equipment, Technology upgrade, Expansion, Payroll,marketing, Taxes, renovation and staffing.

  • Funding amount : $2,500 – $150,000 amount per location
  • Payments method : Low flexible Daily
  • Loan Tenure: 3 – 36 months Estimated term
  • Owner Credit rating: Fair to Excellent

Note: Estimated term is the period of time estimated, at underwriting, that it will take to collect the total repayment amount of the loan. TrakLoan term can only be an estimate because the dollar amount paid on the loan on any given day fluctuates with the business’ fluctuating card sales volumes, and Trakloan has no set term, maturity date or fixed or minimum payment amounts.

Instalment Loan: Your monthly payments are fixed which is independent to your business revenue. Your business can use Instalment loan for – Inventory, Technology upgrade, payroll, equipment, Expansion, Marketing, Renovation, Taxes and Staffing,

  • Funding amount : $50,000 – $100,000 amount per location
  • Payments method : Fixed monthly
  • Loan Tenure: 24, 36 or 48 months
  • Owner Credit rating: Good to Excellent

Credit Rating: They consider business owners with a FICO® credit score of at least 680 to have good credit. The FICO® credit score is based on data from Experian, Equifax and/or TransUnion and may be different from other credit scores. FICO is a registered trademark of the Fair Isaac Corporation.

In crux, it is important to have knowledge and reasearch on the type of loan you want to seek and know in-depth about all factors considering the loan.

So, let me know other types of loans offered by any leading financial institutions. And don’t forget to share this article which might be helpful to someone somewhere  in this world.

@startupsformula– Learn, Share and Grow