It’s not very rare that we hear how young adults are not satisfied with their desk jobs or how MBA graduates and engineers do not enjoy working on someone else’s terms. Hence, it is not very rare to hear about the same people resigning from their jobs to start their own companies. Companies which are called start-ups. However, not all of these startups sail, infact very few survive and all the others, unfortunately, bids goodbye either due to lack of funds or due to mismanagement.
1) A study by Forbes reveals that 90% of startups fail due to a lack in innovation
2) Various strict rules in India like 10 registrations and more than 7 labour and tax laws increase compliance cost and reduces time to focus on innovation and core company activities.
3) Lack of a Chief Financial Officer due to low funds or experience which hinders legal and financial operations of a Startup at an early stage.
It was due to these problems and the realization of the existence of these problems that four young adults left their jobs and started Business Setup.
Rohit Lohade, 31 was the first to realize the importance of a CFO in a startup when he was helping a friend procure funds for a startup and he spent his 60 hours just talking to CA’s and tax consultants.
Hence, later in March 2015, he joined hands with his friends, Khushboo Bhattad, Parinit Thated, and Ritesh Jain to create a Business setup. A company for providing Legal, CA and CS services where each partner invested only RS 11000 each.
The company looked after various things including fund acquisition, mergers, financial reporting, managing payroll, and business model formulation. Moreover, now they have added an India Entry services department to help foreign companies that are looking to have operations in India. Also, Business Setup partnered with IIM Ahmedabad, Startup India and Hyderabad’s T hub as their legal advisors and partners.
Well, the organization is a 45-member-based team working in Bengaluru, Mumbai, and Pune. The average age of workers in the organization is just 28 years. A young organization like Business setup makes it difficult for them to acquire clients and gain their trusts. However, thanks to its founders and core team given below
1) Khushboo manages the taxation department and it what the company calls it’s in house GST expert.
2) Pranit, 31 leads India Entry services and talks to foreign companies about establishing in India. He assists companies like Bajaj Finance.
3) Ritesh handles the financial department. He has been the virtual CFO for many companies.
4) Rohit is responsible for fundraising, mergers and acquisitions and business development.
The company now has a clientele base of 1000 clients out of which some include Schoolay, Rapawalk and Heelium.
The company doesn’t charge any service fee initially which helps in client acquisition as it saves clients around RS 15000 initially. While once they are on board with accounting, operational and compliance systems, there are charges involved. What is commendable is that there is a 90% conversion rate when it comes to clients of Business setup.
The company follows a procedure of assigning clients a project manager who acts as the point of contact between the client and services. The founders and senior managers play supervisory roles. The business setup has various packages designed ranging from tax filing to bookkeeping which serves the varied requirements of the clients. A major achievement is an in-house Artificial Intelligence tool which can calculate taxes on a particular product.
The company has been cash positive since it’s Advent and continues to grow even after facing stiff competition from companies like NearLaw and Vakilsearch. Reportedly last year they have generated Rs 5 crore and they also plan to expand and start operations in Singapore next year.