Most companies that begin as start-ups end up failing during the initial few years due to various reasons like poor management or less investment. But with the right set of products and services, efficient operation and execution as well as strong leadership, few of them set a benchmark and go on to become the next big success story. Take for example – Ola, Oyo, Paytm – all of which have blossomed into industry leaders in their own segment.
So, it brings us to the most important question, which is the trickiest element that all start-ups face and manage to fully control? Is it the product or the timing? Or maybe both? Well, the answer to this is getting the right product out at the right time.
Reduction in corporate tax
Presenting the budget on July 5, Finance Minister Nirmala Sitharaman announced a cut in corporate tax for companies from 30 per cent to 25 per cent, making it the perfect time for start-ups to grab the opportunity. For companies that don’t avail of any other incentive or commission, the effective tax rate would be 22%.
In the year 2018 alone, entrepreneurs were able to attract around $4.3 billion in investments and this number has already surpassed in the first seven months of 2019 with investments worth $4.7 billion.
Increase in funding and investment
The funding landscape and investments have substantially matured with most global VC firms from all over the world like China, Japan, the USA, and Korea setting up shop in India. According to a report by Venture Intelligence, VCs in India invested $8.5 billion in Indian start-ups in the year 2018.
Women entrepreneurs and environmental start-ups are highly promoted in the industry with
respect to their idea and innovation. Also, when these start-ups are provided with the necessary support, it contributes to the growth of the economy. With upgrading technology, startups have the privilege to join accelerator programs that help then upscale their business by providing seed capital and also mentorship.
The Indian government has also relaxed its policies on giving loans and investing in different start-ups to encourage entrepreneurs to start their own business. It also provides start-ups with great value on tax returns and also benefits you with several schemes. There are various schemes like Stand-up India and Venture Capital Assistance that focus on providing them with the much-needed capital for investment at subsidized interest rates.
If I’m being honest, there is never a wrong time to launch your startup, all you need is an idea and the zeal to take it ahead. It is futile trying to wait for the right time to launch your product or service because you need to attract customers by showcasing what you have to offer. With a lot of options to choose from, the target audience is now smarter, and they know what they want. And if you wait for the right time, then you might just be left behind because someone else came up with the same idea.
Now, if these reasons seem valid to you, now is the correct time to begin working on your start-up and take it all the way to the top. As they say, there is no better time than today.