What to avoid in an investors pitch deck?


An Investors Pitch Deck is a brief presentation created to provide a brief overview of the business plans and strategies to potential investors, partners or customers. These are especially of help to the startups, professionals and corporations who are interested in financial aid from external sources in form of investments.
The key feature of an Investors Pitch Deck is its uniqueness. What sets this pitch apart from the others which the investor is considering? How does the pitch excel in convincing the investor? Does the pitch fall on the same length as the investor’s ideas?
There are many guidelines that are provided for what must be included in an Investor’s Pitch Deckbut what are the points that must be avoided in a pitch at all cost? Let us look at some pointers which will help you break the monotonous streak of Investors Pitch Deck without compromising on your vision:
1.       Most important is not to make the Investors Pitch Deck too long? The powerpoint presentation should not be more than 25-30 slides, and in no way exceeding 35, after which the investor shall start losing his attention and interest. 
2.       Avoid a text rich presentation. The Investor Pitch Deck must be more communicative and only an aid toyour words. The visuals keep the audience engaged and the interaction feels more personal. Avoid long words, sentences, and paragraphs, but do not overdo on the images. Keep it crisp.
3.       Don’t be repetitive. Praising your product in every slide shall give the impression that you are not confident in your strategies.
4.       The Investor Pitch Deck must not waste time on irrelevant or flattery information. Any information that has no direct relevance to your product, business plans and the investment must be removed.
5.       Too many numbers can be toxic. The key financial data to be presented in the Investors Pitch Deck can be presented in form of graphs or pie charts with a summary so that the numbers do not kill the attention of the audience.
6.       In an attempt to impress the investors, one may exaggerate the figures- big mistake. Do not take your investors for being fools. They have their own experts to verify the facts and data being supplied. Keep it simple and keep it correct.
7.       The Investors Pitch Deck does not require mentioning every single detail or development of the product; it is not a progress report. Present the big picture with the important details which shall showcase your confidence in your product.
8.       Before an Investor’s Pitch Deck is prepared, one must have clarity about the product, expansion strategies and business plans. Lack of clarity helps to elaborate on the central idea with precision.
9.       Dedicate few slides to marketing yourself as an asset to the investor. Be subtle and don’t glorify yourself. Instead, make the investor feel that investment in your product must become his priority. Give him something to think for next few days.
10.   Do not present unrealistic goals. Keep your approach, methodand plans pragmatic and workable.
11.   Keep your Investors Pitch Deck grammatically correct and scan the pitch to avoid spelling mistakes.
12.   Do not copy your pitch from any sources. Take inspiration but be original. Tailor your Investor’s Pitch Deck for your product, need, and your investors. 
13.   And at all cost avoid following, they have no place in an Investors Pitch Deck:
a.      Your or anyone’s philosophical phrases;
b.      Pep talk;
c.       Slangs;
d.      Industry abbreviations and jargon;
e.      Pessimistic and negative statements;
f.        Contradicting information;
g.      Foreign language words, phrases, even if they are popular.
By considering the above suggestions, you can improve the quality of your Investors Pitch Deck and take it up a notch. It should be noted that a pitch manifestsyour hard work and belief in your product.

Elements of Consulting Agreement & its Relevance


Consulting Agreement
Sometimes in place of hiring in house experts on various areas of operation organizations plan to hire consultants with expert knowledge and expertise in particular fields for a set period of time or for any particular task. These consultants can either be individuals or organizations. The agreement executed between the organization and consultants defining the rights and obligations of both such parties is known as Consultancy Agreement.
Benefits of a Consulting Agreement
Now, that we are clear to the meaning of consulting agreement let us try and understand the requirement of such writer agreement from a business perspective. Following are the benefits of a consultancy agreement:
·         It’s the best choice if the requirement is not of regular nature i.e. it is an event based requirement or only for limited period of time. In such a case it is better not to hire a full time in house expert but an individual expert for the same.
·         If the requirement is for critical analysis and expert opinion then hiring a consultant is a wise decision. They are experts and have better understanding of the market and economy. Thus they can provide better guidance and extensive reports based on the requirements.
·         The work of consultants in unbiased and thus provides better results and solutions to critical business issues.
·         Another major benefit is flexibility in business practice. They provide custom made solutions to their clients and if the services are not satisfactory, one can switch the consultants.
·         Lastly, hiring a consultant is a cost effective solution. If a permanent employee is hired then it will incur a regular cost in the form of salary.
Elements of Consultancy Agreement
While executing a consulting agreement some key factors must be kept in mind. Following elements must be included in a consultancy agreement to make it more efficient and effective:
1.     Description of Parties
In the beginning of the contract complete details of both the parties must be mentioned in the. Details like name address and authorized representatives shall form part of it.
2.     Date of Execution
The effective date of the contact stating the start of their work relationship must be clearly mentioned. The period of the contract is calculated from this date onward.
3.     Term of Contract
Along with the effective start date the agreement shall also mention the duration of contract. Or in case the contract is event based that shall also form part of it.
4.     Details of Services
The contract must include details of the nature of services the consultant will be providing. This will help eradicate any kind of ambiguity.
5.     Payment Information
The agreement shall clearly mention the payment related details like amount of payment, time and mode of payment.
6.     Restriction and Non-disclosure Clause
Because of the nature of work, the consultant has access to confidential information, thus the contract shall also include non-disclosure clause and restrict them from sharing such information from third party.
7.     Rights to Intellectual Property
The agreement shall clearly define the ownership details for any kind of intellectual property created during the course of the business.
8.     Liability Clause
In case of any kind of loss to either of the parties, the liability and indemnity clause shall form part of it. Such loss can be due to defective products, untimely or delayed results etc.
9.     Termination Clause
This clause shall state the conditions which will result in termination of the contract.
10.                       Signing
To make the agreement valid and enforceable in the eyes of law, it must duly dated and signed by all the parties to the contract.


All about Investment Term Sheet for Startups


A non binding agreement consisting terms & conditions for the investment is known as Investment Term Sheet. An Investment Term Sheet is a non binding document except clauses related to confidentiality and governing law. It is a type of principle agreement which consist valuation. It mainly consist discussions on which parties have agreed informally. After preparation of terms sheet, a due diligence process shall be carried out. Eventually parties will sign the agreement. No contractual obligation has been created by the term sheet on investor to make investment and on the company as well as to issue shares to the investor. Under this, details of the investors are given, valuation of the company, and the amount of investment.
Every type of investment requires proper negotiations for which such type of document is required.  Investment Term Sheet is a non binding document under which terms & conditions are defined which are mutually agreed between the parties in relation to investment. Terms sheet is a non binding document thus do not have legal value and it cannot be enforced. It is drafted in a manner that no misunderstanding will occur in future. It will be treated as a reference document for drafting of legally binding contract.
Now let’s understand some of the features of term sheet.
1.      Ample time is there for parties for better negotiations.
2.      It helps in eliminating the possibility of misunderstanding among the parties involved.
3.      It gives the clear description of the major aspects of the deal.
4.      It helps in removing the possibility of unnecessary disputes between the parties.
5.      A term sheet helps in ensuring that the expenses of legal charges which are involved under the drafting of legally binding contract have not incurred in the initial stage.
6.      It enables the parties to focus on business issues involved in transaction at the initial stage.
7.      In long run of the company it is always beneficial to invest time and resource in drafting term sheet for the company.
Elements of Term Sheet
1.      Details of the investor and the entity under which the investment is being made shall be mentioned under term sheet.
2.      Details of the mode of investment and the time period as decided.
3.      Details of Voting Right of parties
4.      Maintain proportionate ownership
5.      Draft Share purchase agreement, if required.
6.      Warranties & Representations,
7.      Terms related to Non-Competition & Non-Disclosure,
8.      Other Provisions
Above mentioned terms may be included in terms sheet as per requirement of transaction as well as on the basis of requirement of the parties.
Things to be considered by the parties in term sheet
An investment term sheet gives a base to future formation of legally binding agreements. At the time of making term sheet each & every clause and required provisions must be carefully analyzed, and proper discussion and negotiation should take place while preparing this. Every aspect and future impact should be considered while making.
While making investment terms sheet and during negotiations, professionals may be hired or consulted for experience outlook and also for unbiased approach. By this, an unambiguous and exhaustive document can be made.   You can contact us for the preparation of Investment term sheet as we have a team of professionals and we can assist you accordingly.

Does memorandum of understanding is legally binding in India?


Memorandum of Understanding (MOU) is a type of agreement which is executed between two or more parties describing the rights and obligations of the parties. Generally it is executed for initial discussions. Hence it consist the features of oral discussion among the parties.
Memorandum of Understanding is a non binding contract which reflects the intention of the parties involved in an agreement. It is also known as letter of intent in India.
Here are the following features of Memorandum of Understanding:
  • A very simplified document which consist the initial discussions between the parties involved in an agreement.
  • Clauses regarding common understanding among the parties.
  • Base to make a formal contract later on.
Now let’s understand the major components of Memorandum of Understanding.
1.      Parties Identification
Description of the parties involved in Memorandum of understanding.
2.      Purpose/ Object
Clear description of the object for which agreement has been executed.
3.      Time Duration
Time duration of the agreement should be specified i.e starting and ending date of agreement. There should also be a provision regarding circumstances under which an agreement will get terminated.
4.      Meetings of the parties and Reporting
A proper plan should be there for the meeting between the parties. They can meet once in quarter.
5.      Financial Consideration
Capital contribution should be clearly specified in agreement. Name of the person should be clearly mentioned who is authorized to take major financial decisions. Proper record keeping should be maintained.
6.      Proper Management
Under MOU, roles, responsibilities and remuneration should be clearly mentioned. A person may be appointed for day to day operations.
7.      Signing
After preparation of MOU, it is signed and dated by the parties.
Memorandum of Understanding consist the provisions regarding understanding between the parties in respect of particular project which they would like to undertake. We cannot conclude that mere existence of a document for understanding between the parties is a contract.
Every agreement is not a contract according to Indian Contract Act 1872. Agreements which are enforceable by the court of law are contracts.
Now the question is whether the MOUs are legally binding in India?
The essential requirements of a contract haven been specified under section 10 of Indian contract act 1982.  
·         There must be an existence of offer and acceptance.
·         There must be a consent of the parties which is not affected by fraud, coercion, or undue influence. 
·         Parties involved in agreement must be competent to enter into a contract.
They must be older than 18 years old, sound mind, and not insolvent/bankrupt.
·         There must be a proper lawful consideration and lawful object and intention to create legal relations.
In India, MOU fulfill the above mentioned requirements however in case intention is not present to create legal relation then it will not be considered as contract.
Contents of the MOU describe the intention of the parties involved. Rights, duties and obligations created among the parties explain the legal nature of a MOU. Therefore the most important element is to understand the nature of relationship created among the parties involved under the legally binding MOU.
Intention of the parties must be clearly distinguished on the basis of complete contract & informal agreement such as if the agreement is executed merely to agree then it is an informal agreement or it is a contract if the parties are bind to perform.

How to Apply for Import Export Code Registration


Importer Exporter Code (IEC) is basically import export license granted by the Directorate General of Foreign Trade (DGFT). Any person or body corporate who is willing to expand their business and explore the international market, are required to acquire IEC.
Anyone can make an application to the DGFT directly along with the necessary documents or one can apply for IEC code online and digitally attached all the required documents there.
It is a very basic registration and government fee charged for IEC is also very minimal. As one is only required to pay 500 rupees for the same.
Who can apply for IEC
Anyone engaged in any business, agriculture, manufacturing etc. can apply for Importer Exporter Code. Such person can be any of the following:
-          Individual / Proprietor
-          Partnership Firm
-          LLP
-          Private/ Public Limited Company, or any other entity.
Features of IEC
1.      It is mandatory to apply for IEC before initiating import/Export. There is no concept of provisional registration for Importer Expo
2.      IEC has lifetime validity, it does not have an expiry date unless surrendered.
3.      IEC will be valid for all the divisions / units/ factories/ branches which are mentioned at the time of application. There is no need to acquire different IEC for different units or branches.
Is IEC mandatory for import/export
No, it is not a mandatory requirement to apply for IEC, there are certain exemptions to the same. Following are a few scenarios when it is not mandatory to get IEC registration:
Scenario 1: When we say that before importing and exporting you are required to apply for Import Export Code, it does not mean that all kinds of import / export attract this requirement. If the import or export is of personal nature and is not associated to any business, agriculture, manufacturing activity etc. then in such cases there is no liability to apply for IEC beforehand.
Scenario 2: If any import or export is affected by any government departments, ministries or any other notified charitable organizations, then they are not required to apply for IEC registration.

Follow the Procedural Steps for MSME Registration in India


In this article we will discuss what MSME Registration is, why you should do MSME Registration, the types of MSME Registrations and how can you do your MSME Registration. So let’s begin by knowing firstly what MSME is all about?
MSME stands for micro small medium enterprises. In the same category there’s another term i.e SSI which stands for small scale industries. Both fall under the same category. Now these businesses come under Udyog Aadhaar and are the foundation of economic growth and development making them the back bone of Indian economy.
The Indian government hence gives an array of benefits to them to encourage their number and progress. The benefits include things like lower rates of interests, some favouring rules regarding settlement of disputes with the distributors or promoters, more tax rebates etc. But to avail for these attractive benefits, all you need is an MSME Registration Process. The MSME Registration is not mandatory but it’s a good idea to get the Registration just to avail the benefits.
The laws related to MSME Registration.
The MSME Registration application is done under the MSMED act and the MSME businesses could be in both the sectors, either manufacturing or service. The MSME Registration has three categories depending on the type of work and the annual turnover or investments are put forth into that business.
Following are the three categories: -
Types of MSME Registration based on their size, Investment and turnovers
·         Micro Enterprises- This micro enterprise Registration category is the smallest of all three categories of MSME Registration. And the criteria for getting an MSME Registration under micro enterprise is: -
a)                 The Investment in manufacturing sector should not be more than the amount of Rs 25 lakhs.
b)                 The Investment in case your business is in service sector, should be not more than the amount of Rs 10 lakhs.
·         Small Enterprises-The small enterprise category is the middle one within the MSMEs and the Registration criteria for it is the following: -
a)                 The Investment for manufacturing sector of businesses should be more than the amount of Rs 25 lakhs but shouldn’t exceed the amount of Rs 5 crore.
b)                 In the service sector, the Investment must be more than the amount of Rs 10 lakhs but not exceeding the amount of Rs 2 crores.
·         Medium Enterprises-The very last category of the MSMEs for MSME Registration. And the criteria for it is as followed: -
a)                 The manufacturing category must have an investment more than the amount of Rs 5 crores but must not exceed the amount of Rs 10 crores.
b)                 The service sector must have an investment more than the amount of Rs2 crores and not exceed the amount of Rs5 crores.
What should you be prepared with for MSME registration application?
·         Government Registration frees
·         The MSME Registration application form.
·         Prescribed list of documents for submission at the registrar office.
Procedural steps for MSME/SSI Registration
1)                 Complete the MSME Registration application form or SSI Registration Online application form.
2)                 Prepare required documents for MSME Registration, this takes 1 to 2 days.
3)                 File the MSME Registration application along with all the arranged documents. Filing is to be done with the MSME registrar. This step takes 2 days.
4)                 Next, you submit MSME Registration application and it will get verified and your job for MSME Registration here gets complete. And you now just wait for the approval.
5)                 Now after approval, you will be granted MSME Registration certificate.
Now your MSME Registration is complete and you are eligible for availing for the government given benefits. But in case, you need the help of professionals then our reliable experts are 24/7 hr available to help you in every possible way. Dial our phone number or drop us an email anytime when you need.