FAQ For Pankaj Saini

The document contains answers to frequently asked questions about startups. It defines what a startup is, describes different types of startups including small businesses, lifestyle, buyable, social, and scalable startups. It also discusses how business entities can be registered, what capital funding and state funding mean, and examples of things that may receive government funding.

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FAQ For Pankaj Saini

Uploaded by

aakash

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FAQ for Pankaj saini

Q1 what is startup?
A startup company is an entrepreneurial venture which is typically a newly emerged,
fast-growing business that aims to meet a marketplace need by developing or
offering an innovative product, process or service.

Q2. What is an Internet startup company?

A startup company or startup is a business in the form of a company, a partnership
or temporary organization designed to search for a repeatable and scalable business
model. These companies, generally newly created, are in a phase of development and
research for markets.

Q3. What is a business venture?

A business venture is a start-up enterprise that is formed with the expectation and
plan that a financial gain will result. Many refer to this type of business as a small
business, since it normally starts out with an idea that begins with a small amount of
capital or finances.

Q4. What are the different types of startup?

1) SMALL BUSINESS STARTUPS

It is a fact that the vast majority of startups are still the same old small businesses.
Travel agents, plumber, electricians, carpenters, storefronts, consultants etc are
some of the types of startups that fall under this category. The purpose of these
startups is to earn enough money to feed their families. Small business entrepreneurs
rarely make it to the magazine cover but they do play a prominent role in the
economic development of the country.

2) LIFESTYLE STARTUPS
We are now seeing an increasing number of startup companies who are blurring the
line between passion and profession. For example, people, who are passionate about
drawing, are launching Animation startup companies as it gives them the perfect
opportunity to do what they do best. People who have some level of expertise in sky
jumping are now offering sky jumping training as well; this is another form of
lifestyle startup. Lifestyle Startup is all about pursuing ones passion and finding a
way to earn money through it.

3) BUYABLE STARTUPS
The cost of designing and developing a mobile based or web based app has
plummeted massively and this has given birth to the new breed of Startup Company
known as buyable startup. Some of these startup companies are not even looking for
traditional Venture Capitalists rather they are trying to raise money for their startups
by opting for angle finding or crowd funding. However, this type of startup is
generally sold to a third party after some time in return of a handsome amount of
profit. This type of startup is gaining traction and is most likely to become more
popular in coming years.

4) SOCIAL STARTUPS
Unlike other types of startups, social startups are not driven by profit rather they are
driven by a powerful cause. Just because social entrepreneurs are fighting for a cause
it does not mean that they are any less passionate about success or adverse to the
idea of making profit. Unlike traditional startup companies, the goal of most social
startups is to make the world a better place. However, there are some social startups
who are into wealth creation as well.

5) SCALABLE STARTUPS
Scalable Startups are vastly different from small business startups despite the fact
that they too have very humble beginnings. Unlike small business startups, scalable
startups aim high. They believe that their ideas can change the world and the perfect
examples are Facebook, Twitter, Skype and their likes. Scalable Startup revolves
around a simple but powerful concept and they always look for financial investors to
raise capital for their dream idea.

Q5. In how many ways can business entities startup be

registered?
There are following ways in which business entities startup can be registered.

1. Private Limited Company

It is one of the most sophisticated forms of business entities in India. Here, business
assets are separated from personal assets. Every shareholder is just responsible for
his share of the total capital. Pvt Ltd Companies need to maintain records of financial
transactions, board meetings, and annual reports and so on.
A Pvt Ltd company consists of a group of shareholders and the total capital of the
entity is made up of shares. These shares can be sold/transferred to another
individual who then also becomes one of the owners of the company.

Private Limited Company can be of three types:

i) Company limited by shares – A company having the liability of its members
limited by the memorandum to the amount, if any, unpaid on the shares respectively
held by them.
ii) Company limited by guarantee – A company having the liability of its members
limited by the memorandum to such amount as the members may respectively
undertake to contribute to the assets of the company in the event of its being wound-
up.
iii) Unlimited company – A company not having any limit on the liability of its
members.

Q6. What is Capital Funding?

Capital funding is the money that lenders and equity holders provide to a business. A
company's capital funding consists of both debt (bonds) and equity (stock). The
business uses this money for operating capital. The bond and equity holders expect
to earn a return on their investment in the form of interest, dividends and stock
appreciation.

Q7. What does state funding mean?

state funding is a process in which government provides money/ fund for
something.
Q8. What is government funding for?
Government funding refers to financial assistance received by non government
entities in the form of federal, state, or local government grants, loans, loan
guarantees, property, cooperative agreements, food commodities, direct
appropriations, or other assistance.