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origin of freelancing

Word Origins: Freelance

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If you thought freelance and freelancing was a discovery made in recent years, you are in for a surprise. As it turns out, it’s a pretty old word, way before the advent of the internet.

Meaning

All through, the meaning of freelancer — or freelance, as was used in the beginning — has remained more or less the same: A person who manages and sells his services on an individual basis. Freelancing today simply means working on a contract basis with multiple clients, instead of a single company as an employee.

History

First used in Ivanhoe, a novel by Sir Walter Scott in 1819, ‘freelances’ meant Italian and French mercenaries, whose services (skill with a lance or sword) were hired by wealthy landlords. Scott seems to have coined this word from two separate words, free and lance: Free men skilled in lances, available for hire.The famously quoted line of Ivanhoe is:

“I offered Richard the service of my Free Lances, and he refused them….”

Ever since Scott used it, freelance became a synonym for mercenary soldiers. By the early twentieth century, the word became a verb.

The word ‘free-lance’ (with a hyphen) also appeared in P.G. Wodehouse’s short story, The Inferiority Complex of Old Sippy, in 1930.

….but at that time he was what they call a free-lance, bunging in a short story here and a set of verses there and generally enjoying himself.

Here, Wodehouse calls a writer a freelancer, who makes a joyful living by selling his writing skills without having to submit to a boss.

Usage and origin

The Deskmag Global Survey has found freelancers to be happier in general about their professional life than traditional workers. The logic behind this lies at the root of these two words. Etymologically, ‘free’ has its origin in the German language, and it means ‘to love’; while ‘lance’ comes from an old French word ‘launch’, meaning discharge or to throw. Freelancers are happy because they get to choose their work and so discharge their creative force into it completely. The Oxford English Dictionary recognized the term ‘freelance’ as a verb in 1903.

Current Day Scenario

Freelancing got the biggest boost with the advent of the internet. Professionals started looking for jobs on the project basis, and now virtually anyone can become a freelancer. In a way, the internet has helped individuals set up their shops digitally. With the click of a button from your living room, you can present your portfolio to a client, and also choose the clients that suit you. Freelancers have thrived in the post internet era, leading to an emergence of different types of freelancing and in a wide range of categories.

Freelancers often work remotely and need flexible workspaces which have given rise to a spate of co-working spaces. These spaces are generally geared to inspire creativity, encourage collaboration while at the same time providing freelancers a professional environment and network.

Conclusion

Philosophically, the challenges that we face are the same as our ancestors faced hundreds of years ago. We are fighting for the promise of pride for our work; we are looking for a sense of fulfillment in the skills that we possess. And the solution to this challenge lies in the very root: Your work and your weapon. Engage yourself in the work you love. The passion will show in your creations and eventually raise the quality of happiness.

Freedom at Work – What Does It Take to Strike the Right Balance?

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Autonomy at work is a popular topic of conversation at a time when the work culture is gradually becoming more relaxed in most organisations. The transition from the strict corporate work culture to an employee-friendly workplace is apparent. However, like any transitory phase, people usually undergo bouts of hesitation and niggling doubts about what is ideal or necessary and what isn’t. It is no different for work culture.

New lines are being drawn and organisations are slowly going out of their way to bend the rigid conventional rules and guarantee better work experience for their employees. That explains why coworking spaces are becoming the latest trend. They offer the convenience and flexibility in terms of location and work hours. These shared office spaces have broken out of the formulae, and are providing entrepreneurs and their employees the independence of opting for flexi-timings, across their multiple locations.

However, the new work ideal is not yet clearly defined. Most organisations are deliberating over what degree of autonomy would be the best for them, as a company, and at the same time benefit their employees. It may be a tough decision to take since freedom is unquantifiable. Perhaps, the secret lies in finding the perfect balance between structure and autonomy.

So, what is autonomy at work?It is the freedom to choose how, where and when to work. It also empowers the employees to determine the sequence of their tasks at hand as long as they meet the stipulated deadlines. The opportunity to take independent decisions as an individual and as a team also makes them autonomous to a certain extent.

Autonomy at work can also be defined as the trust that the organisation invests in their employees to eke out the best from them. It includes:

Freedom from Micro Management

Trusting employees to self-manage their work boosts their confidence and increases their self-esteem, which in turn enhances their quality of work.Leaving them on their own, after a certain period of hand-holding, moulds them to think independently. In a matter of time, they grow to drive important business decisions and become an asset for the company.

image 1Image Courtesy: Trello Blog

Freedom to Work Individually and As A team

While organisations may encourage employees to plan their own work schedules, they might run the risk of creating an isolated company culture. Organising group activities or assigning more than one employee for a project gives them the freedom to hone the skill of teamwork by engaging with their peers.

Freedom from Rigid Practises

Organisations tend to stick to the time-tested rules rather than undertake the risk of going against the conventional norms. Allowing employees the independence to work in a way that they feel would enhance their work productivity is an exhilarating experience indeed!

Freedom from Set Rules Regarding Breaks

Flexible lunch hours, a growing workplace trend, encourage the workforce to set their own goals, take breaks accordingly and come back rejuvenated. What’s more, employees are free to even lunch at their work desk, if that suits them better, or when work deadlines keep them away from joining their colleagues for lunch.

Organisations are also gradually moving away from the stringent norm of allowing employees not more than one break in a workday and that too at a fixed hour of the day.In contrast, companies now want their employees to go for multiple breaks to refresh their mind frequently.They are reposing trust in them and the freedom to choose the time and the number of breaks they take.

Freedom at Work – What Does It Take to Strike the Right Balance?Image Courtesy: Glassdoor

Freedom to Enjoy Work

Employees are now offered the independence to listen to music as long as they don’t disturb their colleagues, start a meaningful conversation with co-workers in a low voice or play a game of foosball. As long as they don’t lose their sense of accountability to the organisation, they enjoy the autonomy to schedule their work according to the required deadlines.

As opposed to micromanaging every task that they work on, it may be a smart decision to supervise their performance through online tracking platforms and offer feedback. It takes a two-way process between the top management of organisations and employees to strike the right balance. Evolved work ethics that ensure transparency between the management and the workforce provide the latter with a sense of freedom at work. This, in turn, boosts their efficiency. After all, happy employees are the most productive employees.

Share with us what gives you a sense of freedom at your workplace.

Freedom at Work – What Does It Take to Strike the Right Balance?Image Courtesy: Personnel Today

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular Mess

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A messy desk is a nightmare, irrespective of the angle you look at it from!

It induces anxiety – in you and around you. It severely impacts productivity because of the sheer minutes lost looking for specific files. And let’s not even talk about the RAM that gets used up. The function of your desktop is to help you navigate your system with ease. If you load it up with files and folders, you are just creating more work for your computer and slowing it down. And a slow computer is only going to impact your productivity.

Instead of wringing your hands in frustration, have a look at some these handy desktop organizing tools.

#1 ObjectDock

ObjectDock is your standard Windows taskbar, and much more. This customisable application allows you to add as many shortcuts as you want on one dock. Drag and drop files and applications to know what your system is currently working on. You can also add widgets to show you the weather, sports scores, etc.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular Mess8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: ggpht

#2 RocketDock

Similar to ObjectDock, this is another alternative to your standard toolbar. This application launcher is perfect to drop shortcuts for easy access and orderliness. Every minimised window becomes an icon, giving you faster access and improving productivity.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: getintopc

#3 Rainmeter

If you are looking for one program to give you a single-window view of your desktop, Rainmeter is your answer. This fully-customizable program gives you information on your system resources, your online data streams, and also weather forecasts. It even tracks your to-do lists, your notes and controls your media player.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: DeviantArt

#4 Dexpot

If one desktop isn’t enough for you, you can create ‘clones’ to make more space and work more efficiently. Create up to 20 virtual desktops, where each can be customised with different resolutions, separate passwords, notifications, etc. You can switch between desktops with just a mouse click.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage courtesy: dexpot

#5 Tiles

Hello, multitasker. Here’s something to make it easy to switch between applications and pages. Tiles™ is your go-to resource for better productivity, easier file management and, of course, a stylised desktop.

With this tool in your arsenal, you can jump between active and inactive tasks easily, create pages as per your working style, and view, manage and work with multiple applications at the click of a button.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: Softpedia News

#6 Stick

You can customise your desktop and Windows Explorer windows as small icons on the desktop, segregating them by color, transparency, font and auto-hide features. Navigate your existing folders through these small tabs. When you have completed reading a tab but may need to refer to it later, you can simply hide it rather than close it down. This makes it easy for you to come back to it whenever you want, without having to undergo the hassle of searching for it again.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: fastweb

#7 EmergeDesktop

If you are tired or bored of the standard Windows ‘shell’, EmergeDesktop is a good alternative. Customise your shell by the way you use your computer or even as per your aesthetic sense. Add elements to the interface; move them around and place them where it suits you better; choose themes that you like.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: DeviantArt

#8 MyFolder

Bored of those tiny identical yellow folders? Try MyFolder and immediately jazz up your desktop with this customisable desktop program. You can separate folders by color or on the basis of tiny icons that help you identify what is important, private, official, and a host of other options. Use icons from the library or add some of your own.

 

8 Must Have Tools To Keep Your Work Desktop From Being A Spectacular MessImage Courtesy: Softonic

All these tools give you the freedom to change your desktop as much, or as little as you want to. Use them and keep your desktop clean and clutter-free. All these apps are free and can be downloaded and installed in just a few clicks.

Growth Or Profitability Or Both – What Makes A Business Click?

Growth or Profitability or Both – What Makes A Business Click?

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The technology and non-technology spaces in India have seen the entry of many new players with the start-up boom. The number of start-ups is estimated to be over 11,500 by 2020. These new brands are now redefining start-up market strategy and entrepreneurship.

Although 98% start-ups would prefer to focus on profits, the necessity and need for profitability differs from business to business. For instance, there are 22% start-ups in India’s funded by VCs, which expect them to turn profitable within a year.

While some of these firms aim to create a niche, increase market reach, and focus on profitability right from the beginning, several others believe in raising their companies’ valuation through big spending and bigger impact for a long-term growth.

Nevertheless, all start-ups at a certain point need a balance between profit and growth. For any business to sustain, it is crucial that it keeps an eye on both.

The pressure of innovating constantly challenges today’s entrepreneurs. At the same time, the increasingly dynamic business fundamentals are posing an unprecedented challenge before him to stay relevant by defining a comprehensive value proposal to the customer.

At the operational level, the process of making customer experience unified and seamless faces an entirely different set of problems. The overall growth strategy involves:

-Improving staff productivity by lifting their morale, thereby boosting sales

-Substantial investment in data analytics

-Stepping up investments to raise the efficacy of supply chain management

The Dilemma

The competition around you is ever-growing. There is a choice to make between scaling up your business and sustaining market visibility.

Plan Profitability

A clever way is to present the calculations of profitability – by working out the total costs of marketing and expansion — while pitching a business concept to an investor. The business plan, with costs-to-be-incurred, revenue projections and timelines, should allow you to take the profitability path.

You might need to modify the business plan at different stages to create cash reserves that can enable you to cope with changing economic conditions, low sales, company expenses, etc. And these are just some initial steps to ensure that a business model is profitable. As the business progresses, the dynamics change drastically. For example, there will be more opportunities for a product that has a wider consumption base.

Pedal Growth

A strong access to investors for a robust investment back up will raise the management team’s risk appetite. According to a 2015 NASSCOM report, “Startup India – Momentous Rise of the Indian Startup Ecosystem,” the number of PEs, VCs and angel investors in India’s start-up ecosystem grew by 100 per cent.

The investors, determined to join the growth story of India, are keenly watching out for entrepreneurs with the ability to strike a balance between growth and profitability.

Conclusion

A focus on profitability is essential for a start-up in its initial phase. But that initial profitability cannot be achieved without a growth plan. Even after a company has achieved profitability, it should keep exploring the opportunities for growth, as this will bring greater possibilities of profitability while also bringing the company into the line of sight of potential investors.

Profitability and growth therefore go hand in hand when it comes to determining business success. While profit helps basic financial survival of a company, growth is the key to both profit and long-term success.

Work Your Way Through Stress At The Workplace

Work Your Way Through Stress At The Workplace

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A place that inspires, your work desk, is your energy zone where creativity and productivity cohabit. But keeping the same levels of motivation day after day, at least 8 hours a day isn’t always possible.

What we all expect from our workplaces is an inspiring work culture that is conducive to maximizing our work productivity and encourages us to achieve more. Ever wondered how you can keep yourself motivated all day long?

You can consider using Zen, the Buddhist philosophy, to stay mentally and physically agile during your work hours. Through meditation, intuition, and tranquillity you can live less automatically and more mindfully. Here are a few ways you can make your work desk and office space more inspiring:

Motivational Prints

Maybe you like deep philosophical thoughts or prefer an element of humor, in either case, motivational prints work. Find the one message that you need to tell yourself and let it occupy a spot within your vision. Besides inspiring, a well-designed print is also aesthetically pleasing.

Water Feature

The benefits of water go beyond drinking 6-8 glasses a day. The gentle murmur of running water soothes the mind and has been shown to reduce stress. Have a water body on your desk or meeting rooms to create a peaceful work environment.

Calming Tea

Instead of reaching for a cup of your regular tea, why not switch to herbal teas? Besides having a calming effect, some of the teas also work as muscle relaxants and reduce irritability. You can try peppermint, chamomile, green or passionflower teas, depending on your taste preferences.

Work Your Way Through Stress At The Workplace

Image Courtesy: Culinary Blossom

Zen Garden

Hundreds of years ago, Buddhists monks used massive sand gardens to achieve tranquillity. You can get the same effect by putting together a small desk garden using tropical bamboos, flowering pots, pebbles and kinetic sand. Trace patterns, rearrange the pebbles and mold it into shapes to relax your mind. You can buy such gardens online or create your own.

Work Your Way Through Stress At The Workplace
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Office Yogi

If your job involves sitting all day long, practice some basic yoga poses to release built-up tension. Sit straight, relax your shoulders and keep your neck in line with your spine. Every 20 minutes look away from the computer screen and gaze at something at least 20 feet away. Look outside the window if possible.

Tai Chi, Anyone?

Tai Chi is a Chinese ‘internal martial art’ that emphasizes health, form, and meditation. Learn and regularly practice this self-defence form to relax your body and relieve stress. Due to its gentle, slow motions, Tai Chi is also called ‘meditation in motion’.

Aromatherapy

Do not underestimate the power of aromatherapy. The extracted fragrance of flowers, bark, stems, leaves, and roots of specific plants is known to stimulate the mind and is considered to be a form of alternative medicine. Use drops of essential oils or keep a bowl of potpourri on your desk.

Work Your Way Through Stress At The Workplace

Image Courtesy: Pinterest

How do you keep yourself inspired at work? Share in the comments section.

How GST will impact Start-ups and SMEs

How GST will Impact Start-ups and SMEs

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The long wait is finally over and the Goods and Services Tax (GST) bill has been implemented after around 17 years. Needless to say, GST is one of the biggest tax reforms in India after independence. With uniformity in taxation, not only the complexities of the taxation system have been tackled, but there is also increased transparency in the industry.

GST has replaced multiple indirect taxes and put an end to the cascading effect. Start-ups and SMEs significantly contribute to India’s GDP and exports. If sources are to be believed, currently we have nearly 30 million SMEs in the country, contributing around 45% of the industrial output and 40% of India’s export. With GST being implemented, start-ups and SMEs can capitalize on many opportunities that come their way and expand, while helping the nation grow.

The Positive Impact Of GST On Start-Ups And Smes

Starting A Business Just Got Easier:

Earlier there were multiple turnover slabs for the VAT registration and any multi-state business had to comply with various inter-state rules and pay their respective taxes. Under the new taxation scheme, new entrepreneurs won’t have to seek multiple registrations, a single registration will give them the authority to carry out business in any state of the country. Since the rules and tax rate is uniform across the country, businesses can register under GST and carry out multi-state businesses with ease.

Online Registration:

The entire GST process from registration to filing returns is digitized and simplified, making it easier for start-ups and SMEs to file their tax returns. And since there are no separate taxes such as VAT, Excise Duty, Service Tax, etc., start-ups won’t have to deploy specialists and experts for filing and paying taxes, making GST cost-effective.

Reduced Tax Burden:

The set threshold for registration has also been spiked from 5 lakhs to 20 lakhs (North East: 10 lakhs), this will encourage more start-ups, which will lead to more job opportunities. GST has also introduced a new scheme of lower taxes for small businesses that have a turnover of 20 to 50 lakhs, under the composition scheme. With this, the tax burden on emerging start-ups and SMEs has been relaxed.

No Distinction Between Goods And Services:

Under GST, all goods and services are treated as the same, which means, that start-ups and SMEs dealing in sales and services model of business will no longer have to distinguish and pay taxes separately. The computation of the tax liability will be made on the total amount. Moreover, GST will also reduce the cost of logistics by 20% for the companies who produce non-bulk goods, as per estimates by CRISIL.

Credit Facility:

The businesses which are registered under GST will now be allowed to avail credit on input expenses. Although the rules for input credit have become stringent, it is still beneficial for all the businesses. This would further reduce the prices of the products and services.

The Negative Impact Of GST On Start-Ups And SMEs:

Increased Tax Burden:

Previously, manufacturers with a turnover below Rs. 1.5Cr were exempted from paying taxes.However, under the new regime, this exemption threshold has been reduced to Rs. 20 lakhs. This means most of these manufacturers will now come under the scope of GST. As a result, this will lead to surcharge of prices for certain goods.

Stringent Compliance:

Businesses will now have to comply with rigid rules that are laid by the GST Council. Some of these rules include a minimum of 37 returns to be filed by every taxpayer annually, requirement of some funds in the form of electronic credit, and GST compliance rating.

Timely Filing:

All the purchase invoices will have to be reconciled with the supplier and by the 10th of every month, these invoices must be uploaded. Non-compliance could lead to adverse consequences.

GST Compliance Rating:

GST input credit and refund will be given to businesses basis their GST compliance rating. This will ensure that all taxpayers are duly complying with the GST laws. Taxpayers will be allowed input credit only if their suppliers have a credible GST compliance rating. Moreover, the timeline to claim input tax credit is short- before the due date of filing returns for September of the next FY (financial year) or the due date of filing annual returns, whichever is earlier.

9 Easy Ways to Keep Employees Motivated

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Employee motivation is more critical to business than many believe. A motivated employee is aligned with the organization’s goals and is invested in its success. A demotivated individual, on the other hand, fritters time away at work, probably surfing the internet, running personal chores or even looking for another job. All this on your time and money.

If the idea of one demotivated employee is worrisome, imagine a few.

But what makes an employee feel demotivated? Even with the right monetary compensation and myriad benefits, if the employee doesn’t feel valued or believes that the organization offers little scope for professional growth, chances are employee morale will be down.

All is not lost, however. It doesn’t require a lot of effort or money to keep the mood upbeat. Here are a few ways:

#1 Lead By Example

As the founder or owner of the business, if you are happy and excited, chances are your infectious enthusiasm will be picked up by your people.

Also make sure people in leadership positions are able leaders, with empathy and people skills high on their abilities chart.

Image 2

Image Courtesy: Quick Base

#2 Recognition For Effort

Give every employee due to recognition. Not every project needs a pat on the back but letting employees know that their efforts are noticed and valued makes them feel like an integral part of the organization.

#3 Regular Rewards

Offer incentives and rewards for good performances. These don’t have to be expensive. You can present gift vouchers, tickets to movies, a day off, etc. Cash rewards also work quite effectively.

#4 Motivate individuals, Not Just Teams

Do not forget to identify and motivate individual performers. The team could be doing great as a unit, but there is often the one individual who tries harder, works smarter and performs better than the rest. Single this individual out and give him reasons to keep the momentum going.

9 Easy Ways to Keep Employees Motivated
 

#5 Create Opportunities For Further Growth

Employees are motivated when they see possibilities for career advancement and growth. Offer them training where they can develop skills to further their career. Give them opportunities to learn, allow them to take time off to study and assure them that your organization offers them plenty of scopes to further their career.

9 Easy Ways to Keep Employees Motivated

Image Courtesy: paltimes

#6 Stability To Encourage Productivity

Keep the company’s goal constant. Once employees are on track, do not derail them with a new direction or new ways of doing business. Knowing what they have to do and being able to do that encourages productivity which in turn increases employee satisfaction.

#7 Ensure Employee Satisfaction

Give your employees challenging projects and constantly push them to perform better. Create the right work environment that includes benefits over and above financial remuneration like child care facilities, employee discount programs at restaurants and stores etc.

9 Easy Ways to Keep Employees Motivated

Image Courtesy: IGZE

#8 Transparent Management

No games. Be clear about your policies with your employees. Share your company’s growth plan periodically.This builds trust and doesn’t allow the possibility of rumors or gossip.

#9 Regular Feedback And Two-Way Communication

Lastly, treat your people as critical members of the team. Give them a voice and a platform to be heard. Take their input and listen to their ideas on improving their work. Keep the channel of communication open and do not be a management-to-employees kind of an organization.

Keep your employees motivated, and you will see less attrition.Remember, happier employees make the best goodwill ambassadors for the company.

5 Leadership Lessons from The Godfather

5 Leadership Lessons from The Godfather

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The Godfather is a three-part American movie series that has secured over $578 million in Box Office revenues. The movie series has gone down in history as one of the most revered pieces of cinematic brilliance, and have won several Oscars across categories including Best Picture.

Besides being immensely entertaining, the series also offers some incredible insights into people and their behaviors. Let’s look at five invaluable leadership lessons from the man who played one of the most iconic characters in cinema.

  • Trust Is Important In Building A Team – Choose Your People Well

The Godfather was known to use his ears more than his mouth. This is what differentiates a good leader from a great one. When being in a position where you lead a company, it pays to keep your eyes and ears open and hear what people have to say. This helps you take more informed decisions since you get to decide after looking at things from other people’s perspectives. Besides, when you listen, your team feels they can trust you, and they come to you with information that you could use to your business’s advantage.

  • A Current Loss Can Be Necessary For A Bigger Future Gain – The Big Picture

Marlon Brando (The Godfather) knew that a current loss or leeway might win him a bigger favor in the future. He knew when to pull the strings for a greater good. In business, it is important to understand that every move will not lead to a win, but plan your moves such that they add up to a great success, in the end. The saying – Rome was not built in a day, stands true even today.

  • You Are As Good As Your Strategies – Strategies For Big And Small Decisions Alike

Don Corleone understood that each coin has two sides. He not only planned his actions, but he also predicted their reactions. This helped him prepare for the worst. As a leader, you too should be prepared for the worst, since you have the responsibility of an entire team and the welfare of the office at stake. Develop your strategies with not just the plan of action but also the possible results. This will give you a better perspective and eliminate risks.

  • Delegation Is Key – Take Decisions

Throughout the movies, the Godfather assigns tasks to who he feels is best suited for the job. Key points to note are – firstly, to take your own decisions and secondly, delegate the activity to be executed by the person best suited to carry it out. It is likely that you feel that no one can carry out tasks as well as you can, but as a leader, you need to use your resources and train them. The series portrays a classic example of how to do so with not just ease, but also with efficiency.

  • Nothing Is Personal In Business – The Very Essence Of The Word Godfather

Sonny Corleone, his son, can vouch for this. What people fail to realize is that in business there are winners and losers, and family, cannot take precedence. In fact, the very meaning of the word Godfather shows that a blood tie is not a prerequisite to a business equation. Being ruthless and often detached while taking business decisions is a necessary skill. Hone it and you shall be able to outgrow and outsell your competitors.

The Godfather is an example for many. Leaders have many disciplines that they can learn and implement from the series. To quote Don Vito Corleone, “Great men are not born great, they grow great.”

The Dos and Don’ts of Cracking an Investment Deal

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When running your own business or start-up, aiming for a long-term relationship with your venture capitalist is imperative so that you don’t have to worry about facing a cash crunch. But before you build that relationship, you need to find the right partner and negotiate the right investment deal; one that satisfies both sides.

You must remember, investors have walked these steps before you and are seasoned professionals in their field of expertise. Nevertheless, with a little preparation, you should be able to negotiate a good investment deal. Here are a few crucial points to keep in mind when approaching and shortlisting VCs for your funding.

Find The Right Investors

You need to feel confident with the investor, yes. What matters more is to find someone who is as interested in your business as you are. Look for someone who has previously invested in an organization like yours, or has a keen understanding of your industry.

This kind of investor understands the market and knows how your business is likely to develop. However, take care not to divulge too much information right in the beginning if he is already working closely with your competitor.

The Dos and Don’ts of Cracking an Investment Deal

Image Courtesy: LinkedIn

Time Your Bidding Process Correctly

Do not try and look for investments when you are low on funds. Time your bidding process to coincide with the end of a good business quarter. Call 4-5 investors who have prior experience in your industry and make your pitch to them. Allow them a week to ten days to study your offer and business, but make sure you close the funding within six weeks of the start of the process.

Observe The Investors

Observe and understand what the investor is looking for, and negotiate your terms accordingly. Does the investor’s term sheet include liquidation preference or participation? Is the VC more focussed on board seats, voting rights and gaining control? Neither of the scenarios is wrong, but it will give you a sense of what the investor foresees. You can ask better questions, negotiate a better deal and at the end of the day rest assured that you have chosen the right partner.

What Is Your End Goal?

Right from the start of the negotiation process keep the closure in mind. It’s alright to change the approach a little and to make minor sacrifices, but know your deal breakers before you step into the meeting.

The Dos and Don’ts of Cracking an Investment Deal

Image Courtesy: Colourbox

Lose The Battle To Win The War

The investor assumes that you will ask for a better deal. They know you are scouting around for other options to compare and that you will use all possible leverage to get the best deal. However, don’t get bogged down by smaller details. You can always work them out as you go along. Keep your eyes on the bigger picture and don’t let the lesser issues derail the negotiation.

Be Eager, Not Over-Eager

Seasoned investors know how to make founders sweat it. Don’t be over-eager to please. Be confident and convincing. Let your pitch do the selling.

Are You Ready For A ‘No’?

Even if you make the right pitch, have your numbers in place and are ready with the right answers to all questions, you should be prepared for a ‘no’.

The bidding process could go either way and your potential investor might not be as keen as you’d hoped she was. Do not lose heart. And most definitely do not change your offer. Stick to your guns. Investors admire people who are confident and not willing to compromise as they will bring the same traits to their business.

If the investor recognizes your confidence and determination, a ‘no’ today could turn into a ‘yes’ later.

As with any negotiation, leave room for compromises and make minor adjustments on the go. Look beyond the value of the deal and consider the intangible benefits that the investor could bring. Closing the deal is just the beginning of a long successful journey.