DREAMERS

START UP INDIA

IF YOU FAIL

GO TO JAIL

LIST OF DOs, DONTs AND HOW TO

DOs

QUIT INDIA
About the Author
“Uge Hum Dhara Me Nai Jindagee Le

Andheri Nisha Ko Mitane Chale Hum

Uthe hum Jagat Me

Hua Naya Sawera”

-Anonymous

This much background is needed to make people aware

that author has also voted for Modi in 2014. But the
need of this book has arisen because system and
changes which we were expecting have gone in reverse
order.

Author will explain why dreamers should “Quit India”

now as this system will not change in their lifetime. As a
matter of fact, the author believes this system will never
change.

Change Agents have become Change Destroyers. At the

end of 2022 this country will go to riot. Every Dreamer
will be termed as fraud and will be looted by investors,
thugs with powers granted by the constitution of India
and Judiciary, who is hardly interested to look the at
facts - only interested in extending 14 days remand and
making sure papers are filled. Justice will be served …
but only to those, who have bag loads of cash….

Author regrets his decision to come back to India and

believe in the India. Author will now have to pay with his
life and everything he has owned once.

Author has written the book in a way as if he is talking to

you and hence it may be unstructured for some book
lovers but a dreamer has hundreds of thoughts and he
would need to capture, communicate, express all.
Author’s mother tongue is Hindi and there are some
references which have been quoted “as-is” to keep the
effectiveness. They are explained in Appendix-Glossary
section.

Author has used several references to Indian Laws, more

information about these can be found in the appendix –
Notes section.
About the Book
If you have decided to start a business in India and your
dream is to earn money via running a business than this
book is for you. It first explains why you should not do it.

But being a dreamer, you will hardly take my advice.

To satiate your urge of getting big, I have also written

about how you need to do this - in case you still want to
start up in India.

Since I started a career in IT, most of the business will be

looked upon from that point of view. These are my
viewpoints and may necessarily not be yours. However,
you can learn from my mistakes. I was a fool who did
mistakes even after getting warned enough times but
you do not have to do those. I had no book which would
have told me so candidly of the consequences and with
examples.

I have tried to do so for you so that you do not have to

do the same mistake.

Remember IF YOU FAIL YOU WILL GO TO JAIL. So, act

carefully.

I wish you all the luck!

Acknowledgements
I would like to thank my friends, well-wishers
without whose support this book would not
have taken shape.
Contents
Chapter I: Origin 14
Chapter 2: Learning from Start ups 16
Chapter 3: Idea 19
Chapter 4: Background work 22
Chapter 5: Emotional Quotient 25
Chapter 6: Company Law and Details 28
Authorized Capital 29
Paid Up Capital 29
Chapter 7: Ideas that will get you funded… 31
Chapter 8: Team 33
Chapter 9: Rules and Compliances 35
Chapter 10: Money 38
Chapter 11: Money for promises that you made… 41
Chapter 12: What is SCAM 44
Chapter 13: Failure Scenarios 46
Chapter 14: WHAT HAPPENS AFTER FAILURE 50
CLASS DIFFERENCE 51
Chapter 15: LOOK BACK (WHAT IF…) 53
Chapter 16: Government and Reasons for Quitting Hope 54
Chapter 18: All Marketing No Work - Big MOUs No work. 67
Chapter 19: Large Industries No Jobs 69
Chapter 20: Government Mind Set 71
Chapter 21: You still want to work in India… 73
Chapter 22: Idea 75
Chapter 23: Structure 77
Company/Entity 79
Open Accounts 82
Chapter 24: Office 83
Chapter 25: People 85
Chapter 26: ZERO OVERHEAD 90
Chapter 27: Cashflow 93
Bank Loan Vs Investor Money 94
Cashflow from Retail Market 95
Chapter 28: Government Subsidies for Start-Up Cash flow
98
Large loans from Nationalized Banks 99
Chapter 29: Investors 100
Chapter 30: UNTOUCHABLES and TOUCHABLES 105
Information Technology 106
SPORTS 106
EDUCATION 107
HEALTHCARE 107
TRADING 107
GAMES and VIRTUAL REALTY 107
PUBLIC SERVICES 107
BANKING and INSURANCE 108
SOFT PORN AND REGIONAL DRAMA 108
Aggregation of existing service 108
Chapter 31: CONFLICTS 109
Chapter 32: CONFLICT WITH PARTNERS 113
Chapter 33: Conflict with Customers 118
Chapter 34: Conflict with Employees 121
Chapter 35: Conflict with Vendors 124
Chapter 36: Marketing and Sales 127
Chapter 37: Multi-Level Marketing 130
Chapter 38: Dealing with Government 133
Chapter 39: Dealing with Competitors 136
Interview of prospective employees 137
Chapter 40: Vindictive Mind Set for Business Men in India
139
Chapter 41: Summary 146
Appendix 148
Bibliography 148
Companies act 2013 148
Shop and Establishment Act 148
Section 138 of Negotiable Instrument Act 148
Summons and Attachments (Section 83) 148
Employees Provident Funds and Miscellaneous Provisions
Act, 1952 148
Glossary 149
Abbreviations 150
Notes 151
Preface
In the beginning of this millennium, we were a young
couple like a million others, who got married just after
saying goodbye to their teenage years. Seven years into
their blissful marriage, while staying in a service
apartment in Detroit, Michigan in USA they made up
their mind that they will make some dollars here but
ultimately, they will be back in India and grow there. A
son is born. Five promotions, transfer to UK which was
celebrated across but then the company refuses to grow
India component while the pricing needed by client
could have been achieved only by doing so.

For the dreamer this was hardly a setback which could

have stopped him. To put into perspective, Dreamer had
27th position in UP High School board. Dreamer got
selected in IIT JEE but He did not get any seat in any IIT.
However, he ultimately led a team of 200 engineers in
India and half of them were from IIT – that’s when he
was at the peak of his corporate IT job. He is a guy who
can always start from Zero.
In 2007 he was back from UK with a 5 years old son and
started to dream an entrepreneurship filled life in India.
He had earned well. Had one 3 BHK, one 5 BHK and two
plots in Nashik.

By this time, he had paid around one crore in Income tax

but those were not the days when you got a certificate
for that. He decided it is time to make himself proud,
make his country proud, and create some jobs. He
dreamt to make a name for himself. He had dreams to
become a Tata, A Reliance and dreamt to be the shiniest
star in “Make in India”.

The ideas that he had were always different. His ideas in

corporate world were always marked as game changers.
These ideas have made him nearest to Board in India at
one point of time. He had many ideas to work when he
started on his own and he decided to work on these
ideas in one go. His team also quit HP to make these
dreams work.

Each of the dreamer (team member) was given an Idea

to execute. Model was based upon generating sales
leads and passing them on to service providers &
vendors so that the corpus needed is lowest.

The struggle with India started

Chapter I: Origin
The law and its practitioners in India say you can have a
maximum of five key related objectives in a company
while defining your Articles of Association and
Memorandum of Association as per companies act 2013
– if the name of your company has something related to
one industry, you cannot have another vertical.
Dreamer found a young CA. Decided to act strictly by
law. Since five of his team members had quit along with
him and there were distinctly five dreams we had, so
five different companies had to be created. (One day he
will be shamed in court of law that he owns so many
companies and hence he must be a fraud…)

I. Team one started working on software product

II. Team two started working on Adventure tourism
and Hospitality
III. Team three started to work on Sports
IV. Team four started to work on Consulting
V. Team five started to work on Real Estate…
(Biggest mistake in life)

Now, the learning from this

If you fail you will be called a SCAMMER.

This is a SCAM.

More the number of companies you own would mean

Bigger SCAM.

If you get stuck financially in any of the company you will

be treated as scammer.

The lawyers and authorities will tear you apart for

making that decision.
All of this will be a negative. So, start with only one
thing.

Learn to curtail your ambition. People have said it before

- focus on one thing at a time and I agree with that now.

Chapter 2: Learning from Start ups

1. Your neighborhood CA is too young for your idea.

2. Big 5 consulting companies will eat up your start-
up money and your hard-earned savings even
before start.
3. Never have your family (wife, kids, parents,
brothers and sisters) become a part of your
business and your legal entity formally. They all
will be harassed by investors, creditors, suppliers
etc. It has one positive. If GST Intelligence comes
and arrests you, you will have company ☺
4. Start as a solo proprietorship. You as a 100%
owner. Only 1 in a billion has good partners like
Bill Gates. You should not assume - you are that
lucky.
5. Do not make any partnership with any friend or
likeminded start up guy. You will be screwed
nicely 99% of times
a. Keep your job
b. Work on Proof of concept.
c. Sell it to a VC or Angel
d. Make good money
e. Enjoy Life
f. Stop reading this book as this is best
advice if you are in a job and want to do
something on our own…
6. You are still reading that means you are a true
dreamer. That means you want to take the
plunge. You have euphoria. you may have
following as an idea, let me see
a. You work on POC while in a job
b. You will start small and will look for an
angel. You will most probably will become
an angle as you do not want to sell cheap.
c. You will bet on sales or response or both.
d. Government would seem to be
supportive. They have campaigns like
Start Up India, Stand Up India, Make in
India. Why not.

My advice to you - You are fool or a set of

fools if you are banking on these initiatives
 like incubation spaces, stand up India and
start up India. Modi ji believes in service and
fee. Subsidy is for poorest of poor. Not for
you. Concept is pay less than normal.
However, you will end up paying double!!!!!

Chapter 3: Idea
Before you take the plunge let me give you some Gyan
on the idea itself.

Your idea is NOT GOING TO BE FUNDED if it is

1. Business to Business (B2B)

2. If idea is for creation of new market or new kind
of market in India
3. If it is not a copy paste of an Idea which is already
successful in outside world
4. If it is in IT arena - digitalization of a service
already existent in India.

Indian Venture Capitalists are not risk takers. They are

rent seekers. They need to take higher salaries than the
entrepreneur whom they judge.

A PERSON WHO HAS NEVER TAKEN A RISK IN LIFE AND

ON HIS SALARY, WILL JUDGE YOU FOR YOUR DREAM
AND YOUR IDEA

Do you think he will RISK his salary and perks on your

idea?? He WILL NOT.

He can RISK his salary only if there is a CUT for him in

funds. A major Investment banker is still being probed
for a multimillion deal in a start-up….
Do some research? Look around - who got funded by
whom. A serious connection of friendship and money
will be needed. If a Broker tells you that he will probably
get you funded on 20% cut, do it on a success fee basis
only.

Now, this is not corruption. If you think this is unethical

than you are too good for Indian System. You should quit
because of this reason only.

In this nation, the person who has been chosen by one

Billion people to represent them, flies to clinch a deal for
a Business man on day one of his victory. Message to
Indian Babus could not have been much louder and
clear. The same businessman was available at a
breakfast with Australian Prime minister. He was the
only person from business background and you are
thinking that poor guy who is brokering a funding deal is
unethical. Come on. He is doing the same thing
arranging a deal for right cause.
Chapter 4: Background work

Now let us do some background work for you.

Open a register and write down your idea in detail.

This process will help you test your idea through your
own eyes & mind.

Do a search via google or msn or yahoo of your idea.

Create a detailed description sheet of your idea and now

list and explain all component of it
Do a search on all the description that you have written

You will be amazed that almost all the things that you
have thought, already exist in pieces.

Now you know the competition.

Check how many of those products or services have

failed.

So, you need to have a list of following before you jump

● Idea Description sheet

● Nature of your idea
o Product or
o Service
● End users of your idea? Will it be sold to end
customers or companies?
o It is B2B or is it B2C
● Success Criteria: Define success for you and stick
to that
● Competition
● Cost of competition which make them a success
● Funding companies that funded your
competition
● List of assets you have (Cash, FD, Property,
Shares)
● Milestones of the journey that you envisage
● Cost sheets as per you to implement the Idea
● List of all stakeholders
● Future Projection of your needs
● Success criteria of you by your family
● Available cash flow for your idea and limits to
what that you can spend
Chapter 5: Emotional Quotient

Now I want you to do the following

Write your emotional quotient index. How?

First ask these questions to yourselves

If you are married will your spouse stay till you fail and
succeed again? I want you to be ready for eventuality
not that it will happen.

Would you like to be on your parental or espousal

support for the period you are struggling to get funded?
I am not going in detail about this as of now as my job is
to discourage you, let you cancel your thoughts in initial
screening itself. It sounds like a bad idea.

Answers to these emotional questions will clear a major

item called Available Cash flow for you to success.

Let me explain this to you

We are working on the cost of your idea.

These costs are going to be in two aspects

● Cost of Money
● Cost of Emotions

Money will fail you when your emotions catch you in the
wrong way. So, we need to set the emotional aspect of
these upfront. Your emotions and feelings are the key
drivers.

Remember, your emotion of making money or fame is

driving you into this.

As these emotions are the driving force for a start-up,

we must look on these check points.

Cost of emotions need to drive the cost of money.

So, in simple words you need to calculate how much

money you have in your hand before negative
emotions start coming to you (Yes it will happen at
some point of time in your start up journey). Say you
decide I have 1 million rupees and I will not ask my
parents to support my start up, then you must decide
to budget half a million rupees only for your start-up
and quit after you have spent .8 million. As remaining
0.2 million will be needed to get you back on that Job
again.
Chapter 6: Company Law and Details

Company Law and Details are what you need to learn

firsthand. The company law is available at
http://mca.gov.in. Please go through these yourselves.
Try to understand the basics so that you can ask the
right questions from CA or company secretary.

Please note that Directors of company are responsible

for actions.

I will explain you some simple and basic stuff

Authorized Capital
It is the capital which in long term, equity holders plan
to invest. Ideally, it should be your tax paid money (Free
from any liability) that should become Authorized
Capital. Now let us say you want to invest 10 Lakh in 2
years. You can choose your authorized capital to be 10
lakhs or a million.

Paid Up Capital
Paid Up Capital is the money that you would have
introduced in the company for the operations of
company.

In ideal world your liability is up to Authorized Capital

only in cases of default but that concept has never
worked ☺

So, let us say you must put 5 lakhs in first year in your
start up then your paid-up capital can be 5 lakhs.

Your CA will tell you to keep authorized and paid-up

capital to be as low as it has lower requirement of
compliance. You can issue loans as shareholder to the
company and that will be company liability. The reason
for doing so is that while you can increase paid up
capital by your own, the reduction in capital is usually a
very tedious process and requires approval from
government authorities like Registrar of Companies,
National Company Law Tribunal etc.

Most of the companies in India never go beyond 1 Lakh

as paid-up and authorized capital till they achieve a good
cash flow or when they are planning to go for an IPO or
seeking a very large fund from venture capitalists.

Directors of company along with cheque signing

authorities are the one who are termed responsible in
eyes of law for all work done - good or bad.
Chapter 7: Ideas that will get you funded…

● Idea should be B to C. Business to Customer. It

will get funded better and quicker than a B to B
(Business to Business) Idea
● It needs to be around digitalization or ease of
doing business for an existing service. MARKET
needs to be already existent. Let me give you
some example
o UBER/OLA: Digitization of taxi
o Big Basket: Digitization of Hyper and
Mandi
 o 1 MG: Digitalization of Pharmacy
● Copy or Early copy of existing website or business
model of world
o FlipKart: Amazon
o PepperFry: IKEA
o OYO: Airbnb
● Customer Funded Approach:
o Areas left over by larger players. When
Gmail became paid, ZOHOMAIL filled the
gap quickly.
o
● Invention
o Yours is an invention and can be a game
changer for the industry of your choice.

If your idea is not there in the categories above, then no

VC or angle will fund you.

If you do get funded by anyone then you will lose your

power of expanding on the idea to reach a logical
conclusion. You will also lose power to make any
changes in your idea.

Now let us say that you have passed the litmus test of
the Idea and it is indeed one of the above then Let us
move to the team..
Chapter 8: Team

Your team members or your friends in equity are a bad

idea of team. My advice

Go SOLO.
Hire Employees. Hire Professionals. Hire them Cheap.
Hire Good Talent at Cheap Price. Keep the search on till
you get one. You may have to lose money to afford
them - so be it. If you CAN NOT afford them and need
friends for equity then you are not ready to become the
key guy. Sell off. Do NOT START. If you do not have
 money to hire professionals till you get funded DO NOT
START.

You will say this guy is nuts. What is wrong in having

team members or friends as equity partners? Here are
my answers

● You will be forced to consider that opinion which

you may not like or when your gut feel is saying
NO.
● You will not be able to DEMAND RESULTS. They
are co-owners
● You will have lesser people to bail you out if you
get in trouble. Your friends and earlier team
members will be in trouble together.
● You will have fights on who sells off first. Some
will like to drain more and some will be early
quitters.

Hire Employees. Hire low cost, highly efficient, High Integrity

officials. Will you find them? If NOT, you will have to
becomes hands on. That is exactly what is needed for
the job. You being hands on is the best remedy for life.
Now that you are aware of team constraints - let us look at rules
as well…
Chapter 9: Rules and Compliances

Do everything that is legal. Do only legal things no

matter who tells you what.

Now that is an impossible decision. Indian Law has so

many interpretations, so many meanings, and so many
laws contradicting each other that it will be a nightmare.
So many short cuts will be told to you. Just kill those. You
will save money i.e. cost of penalty and cost of corrective
actions, cost of professional advice. Along with them,
there is a concept of “service fee” prevalent today -
which is usually more than the cost of compliance.
If any of your team member tells you otherwise fire
them. They should not be part of your team. If they
remain there they will corrupt your mind as well. Check
the compliance daily. It is your job in the startup. Bucks
will start and finish at you only.

Let me list some of these for you. These may not all
encompassing but essential.

● Shop and Establishment Act with Regular

Compliance
● Provident Fund
● ESI
● GST
● Electricity
● Bank Charges ☺
● TDS
● Labor Law Compliances for ex Minimum Wages
even for contractors
● Rent Permissions
● Permission to work 24 hours if you are open 24
hours
● Employment contracts covering overtime
● Security Compliances
● CCTV with Govt Control Rules (with-out these
your CCTV footage is not admissible in court)
 ● Building compliances like Environment and
Sealing
● Lift compliances for your building
● Termination conditions and contract

We will cover many situations in future pages but we

need to handle the money first.
Chapter 10: Money

This is most important part of the life that we need to

handle here.

● Budget planning sheets are always 50% correct.

You will have 50% over-run in unseen situations.
● Customer money should be taken along with the
delivery of product or service. Neither before nor
after. After delivery you will not get it. You can
probably take the money before but that will
happen only after becoming a brand.
● Spend like a Guajarati. Watch Guru movie and
listen speech given by Abhishek Bachchan. You
need to save on any money that you are given as
an expense also. Another aspect of being
Guajarati in spending is that a Guajarati never
spends money from his savings. He will never do
that ☺. Also, he or she spends the money only if
it solves double the purpose.
● You need to plan a fixed budget for your start up.
● You need to exit if you have only 60 days money
left. Do not live on hope against hope.
● You should exit after paying all the dues.
● All your contracts and your acts will be pre-
defined on exit. You know exactly when you must
call it off. It is like a share in loss sell scenario. You
put an exit at a pre-decided price. All your
calculations and actions need to keep those in
mind.
● Never take a loan from any one in your dreams
including family, wife, friends etc…
● You are already aware what absence of money
will bring you but let me share some scenarios
for you
o An unpaid rent will result in an unpaid TDS
of your landlord who will submit it any
way. He will either charge an interest or
 TDS penalty or a dysfunctional service
against not paying on time. You cannot
afford either as remember the rule. You
have a fixed budget.
o An unpaid salary will bring you following
▪ Unpaid PF: Warrant and Jail
▪ Police @ your door steps if
employee calls 100
Chapter 11: Money for promises that you
made…

At the time of budgeting you will have to budget as per

exit strategy. Let us say you go to market with your
product and promise 1-year service. Now you will have
to do that for all customers on the day of last sale you
made. So, let us say that you want to exit by stopping
sales you will not be able to do that. You can do that
only after providing 1 year of complete service.

It is essential that you plan your exit money and keep

promises and cost of promises with you.
If your idea is based on customer collection, then it will
be declared a SCAM.

You are saying I have gone nuts as why to do business if

we do not want it to be based on customer collection.

Let me explain you some scenarios and SCAMS. I will

also explain the same scenario which will be hailed as
good service of country and a decorated start up.

Have you heard the name of “ringing bell” SCAM? Now

here is a novel Idea

Load 10 Apps on a phone. User pays for data or usage on

apps. Take a deposit from customer. Order Phones. Pay
from future usage as default contract is one year. All app
owners are in sync.

Ringing Bell had taken a 750 Rs as Deposit. Jio has taken

1500 Rs for Jio Phone as a deposit. See any
connection…? Owner of ringing bell is fighting Service
tax case on deposit as sale and Jio is enjoying
bankrupting all other telecoms. Difference is only one.
Ringing Bell does not have the exit money and people
“perceive” Reliance has exit money. So, you have a hell
of an Idea but if you do not have exit money for your
promises than it is a SCAM. Ringing bell becomes a
SCAM as
● Its owner was a dreamer. You may call all fraudsters
as dreamers. That is why a failed dreamer will be
termed as SCAMMER. Simple
● It was public money with no or poor exit plan. Once
people start asking refund he had nowhere to go.
● People did not have the patience to wait for glitches
in delivery. (Remember the principal take money at
the time of service or product delivery…)
Chapter 12: What is SCAM

In theory idea is great. You create your own website. You

see 120 such websites every day. You will remember
some of those ads and an ecosystem will get created.
Everybody is paying for those ads in advance when you
join. Once there are enough people, Brands will come on
platform and platform will be charged.

Again, it has been declared as biggest fraud of collecting

money and not delivering service as money collection
was prior to service delivery. Also exit scenario was
never worked upon. No provisions for money for
promises made.
Every day you pay for Facebook ad or Google ad delivery.
Can you count your impressions? Have you ever
imagined what if Facebook has vendors or programs
written by computers? Have you ever sued a digital
marketing company for adding Russian user likes in India
☺ That is not a SCAM???
Chapter 13: Failure Scenarios

As I told you earlier..

A failed dreamer is a fraudster.

At the time of PERCEPTION of SCAM/FAILURE you will

get booked by Police, DGGI, DGST, Income Tax, ED, and
EOW.

Now let us assume you will not listen to these advices

and still act.

If you do good – Great!

If you fail here are my views on what will happen with
you

● If you had taken a loan on an underpriced

product get it re-evaluated. Take higher loan and
pay others. Your bank will file for your insolvency.
● You cannot file for your own bankruptcy. If you
do that, it will be declared as SCAM
● You will be treated and dealt worse than an
uneducated thief. You will be sent to jail with
petty criminals. You will probably vomit on your
first day of remand from Jail to Court.
● Media will declare you as a CON MAN and you
will be highlighted as the biggest thief for a day.
Crime Reporter will follow you every day.
● Court will not listen to obvious laws. Higher
courts will declare many defaults as “Crime
against Nation”.
● Courts also do not understand your commercial
disputes amongst your partners. if Government is
against you - you will not get bail.

Let me explain these scenarios for you.

As a start-up, suppliers will ask for an advance

payment or security cheques. Let us say you give 2
cheques and stop the service after first month itself
as an exit strategy. Your supplier is going to sue you
under section 138 of Negtotiable Instrument Act.
You will have to deposit the money to get bail. You
can go to jail or pay double the amount or both.

Learning: If your exit strategy is for a month, your

supplier can not have 2 months’ worth of PDCs in
hand.

In my situation we issued these as security cheques.

Suppliers used it on the first instance and we are
struggling with cases in Kolkata and Bangalore for
the same.

Another scenario was where we had PDC issued to a

supplier. Supplier stopped the business one day and
banked all cheques of customer. Sold the company to
Reliance and we are still fighting the case as
Directors ….

The worse scenario

You get an FIR call from a police station filed by a

customer or a supplier. You will be booked in IPC
Sections 406, 420 forgery etc. An IO (investigating
Officer) will not even know what is MOA and AOA.
He will simply ask for your bank statements. He will
tell you to pay up or face the penalty. If FIR has non
bailable sections you are going to jail.

Now Government has huge laws and following

government departments can send you jail

PF Option of Warrant, arrest and Jail

GST Option of Summon, arrest and Jail

Excise Option of Summon, arrest and Jail

TDS Option of Summon, arrest and Jail

FIRE Option of Summon, arrest and Jail

Exit on time. Sometime exits are not possible as you

were in good scenario.

Bankruptcy is not an option for you in India. In India

if you hang on and try to fix and clean the things up,
you will be termed as the biggest fraudster.

DO NOT FAIL IN INDIA. IT IS SIMPLY NOT AN OPTION.

IF YOU FAIL PLEASE GOTO JAIL.

Chapter 14: WHAT HAPPENS AFTER FAILURE

If you are successful you may be economic time news.

Your failure will be in Diani Jagran, Hindustan, Times Of

India and Amar Ujala News.

You decide where you want to come…..

Do you know what has made up and created this

mentality and here it will become controversial but
someone has to say it…
CLASS DIFFERENCE

Do you remember a speech after Notebandi, that was

delivered by our prime minister?

“Brother and Sisters. Rich were in line at poor people’s

mercy for depositing the money.”

Bottom Line of this mentality is visible across

Since that day the class, the divide has taken up the
mind space of 99% people in this nation. Rest 1% are the
only honest tax payers.

These 99% people of this nation do not have the

capability to understand your start up any ways. This guy
will never read of your start up at page 11 of ET.
This guy loves you going down because he does not
understand or enjoys success.

Remember People loved that a person who is perceived

rich has been made poor as notes were banned.

So, if you are trying to be rich and you have done it

faster than others you must have done something
wrong.

When you fail you are looked upon as that ‘Rich’ and you
must be punished.

There is no way you can start afresh.

There is no way to start up again

That is the sole reason that you do not have option to

FAIL.
Chapter 15: LOOK BACK (WHAT IF…)

If I would have stayed in US on a job I would have been

invited as an Indian CEO of some company at Madison
Square and probably would have lunch or dinner with
him in US. Being looked up as a person to be looked
upon.

I could have applied for Neeti Aayog….

An ET page 2 or page 3 News

Why start up in India

Chapter 16: Government and Reasons for
Quitting Hope

I was in the cheer leaders for Mr. Modi’s Government

both at CREDAI and PHD Chamber. I was in 3rd row
invitee at Make in India Launch being the PHD Member
and Co-Chairman for UP then. This government is a
pure marketing government which lacks the delivery
mechanism for success of Make In India. I was one of
the fund raisers for Mr. Rudy and closely wanted to
work in Skill Development as well. It has been so
disastrous because of PMO intervention that it has no
link with the Job Creation Today.
Soon I realized that this government is nothing but a
façade. Behind this façade, there is so much blackness
that the only glass that is possible must be of Adani’s
or a Guajarati Businessmen closer to power. Here is
why I will tell you my reasons.

In the launch of Make In India program there were 16

sectors selected including defense. This government lack
details in planning. The Thumb Drive containing 16
sector programs was “Made in China”. Can you beat
that. You call 200 CEO, all world media and you
handover “Made in China” thumb drive. Any way I
thought that must be some congress IAS who wanted to
make a fool of government. I ignored. However very
soon I realized that everything is centralized at PMO.

The government had never an intention to bring a

revolution in Make in India. It was a cover to give
incentives to large business organizations that are close
to Mr. Modi. I will explain you an example

There was a company owned by a large business magnet

whose IPO was launched in a sector and IPO opened at
more than 400 Rs per Share. Today after 7 years that
share is being traded in the range of 8 to 10 Rs per
share. You find out which is this company. The company
did not deliver a single power plant till date.
This business magnate has now got a defense deal on a
company to company basis where money is being paid
on a government to government basis. You may not get
it. Let us say if Rafael would have set up an Indian unit
and Indian government would have paid in India than
this contract would have been in public domain.
Maintenance must be done by an eligible company
which had a background. It would have never got that
contract. Now this company is set to get special
incentives under Make in India ☺

So, a good brand and good branding with dishonest

intention.

Now for argument sake, you will call me and ask what
should have been done. Here is the best example of
Make in India that has happened in India to benefit a
sector. It was done by previous governments. I am not
into credits but here what was done

● Anyone who will open an IT company in SEPZ

and linked with STPI will get import duty
waived on laptops. This was uniform.
● There was a 10 years tax holiday across the
board for every one
What happened? It created an IT revolution and made
millions of jobs. Result Top 2 companies in world are
being run by Indian Citizens (Quit India before 2022)
who were part gainers of this. Business Men like TATA
and Patni and Start Up Like Infosys got same level
playing field. An Infosys lead by professionals created
wealth and created a Job boom both.

Did we get any of these kind policies in Make in India in

last 4 years? None. It is always controlled. Available only
for few. Non-Uniform. Food Parks available only for 100
cr and more as an investment. Why not make a policy
like in IT for food parks as well.

It will not happen as person who is leading the

government is a control freak and is of opinion that
people will make it a bad practice.

This government can never spin growth. In fact, it will

end up creating a scenario absolutely reverse of what
they (PM Modi and government of the day) aim for.
They aim for growth, they are responsible for
joblessness and absence of growth in this country. They
are seeing the growth of 5 to 6 industrialists who are
the only one who get to share the breakfast table in
India or in Australia with PM and they are growing!
Here is what happened after Notebandi which is
absolutely reverse of what Mr. Modi wanted to do

● The corruption is easier now. The people who

were giving bribe are now giving it in 2000 Rs
Notes. In every anti-corruption case capture, you
will find team using 2000 Rs Note. The keeping of
black money is easier now. It is taking half the
place (one third actually) than what it used to be.
Remember, 1000 Rs note was thicker. 100000 Rs
volume earlier, now comes in 1/3 rd of space. So,
corruption is now 3 times as people used to be
weighing the money. Now for 4 years we have
heard Swami Ramdev saying large notes should
be banned. They did just reverse of what they
preach. Has Swami Ramdev started the campaign
any time in last 4 years Nope?

● The Bank will have enough money and will get

capitalized as people’s money will be there. Very
modest idea. Now bank must pay more interest
on unproductive money as it is locked in Jan
Dhan Accounts where no one can use.

● Reserve Bank still cannot count the returned

notes. So inefficient we are in knowing how
 much money has come back. If that is so then
India’s accounting at RBI level is a fraud.

● All Industries and banks are getting closed as

people’s buying power - the spare cash has gone
into banks. More Job Losses per days. Economic
activity at a total loss.

● Also launching of declaration scheme after

notebandi. Remember declaring your cash you
get 25% right away. 25% in 3 years. 50% gone.
Why that scheme was needed have you ever
thought? The ongoing rate for exchange as we
have read in newspapers was 30% i.e. if you have
old notes of 1 cr you will get 70 lakh new back.
Now the guy who has got these 30 lakhs as old
notes what will he do? So, best was that this
30% guy just declares it, deposits it with RBI and
gets 50% as valid money. No Questions asked.
Why the hell there was a need of that scheme?
Can we get the names of people who utilized
that scheme? How many of these were Guajarati
or Guajarati connection with power base - I want
to know
 Chapter 17: Start Up India, Stand Up
India, Mudra Yojna and Skill India

Let me deal with connection between Mudra and Skill India?

Prime minister in Mann Ki Baat will explain a story
about an uneducated person making toilets and
making India proud but I have a different question. Is
there a driver and sweeper course in Skill India? So,
the skilled sweeper in Skill India gets a job as IV
grade employee in government? Nope No
Connection
Can a Skilled Driver as per Skill India Certificate get a loan of
Car based on Mudra Yojna or Stand Up India Just try
for yourself? Look Around.

According to Ads 5.5 Crores Mudra Loans have been

sanctioned. I assume that means at least 11 cr more
people are employed.

At least each person will have had one helper for himself
or herself.

Average Loan Taken in thousands

46

44

42

40

38

36
2015-2016 2016-2017
How in the world crores of crores of people got employment, became
taxpayers with an average loan size of rs. 45000
If I say 11cr people are now employed by that loan, that
means every 10th person you would have met
would have availed that loan.

Every loan was in range of 15 lakh at least. They must have

generated 30% profit in general so there would have
been at least 5.5 crores new tax payers added
3

2.5

1.5

0.5

0
No of people filing ITRs in Cr.
2015 2016 2017

I do not see that number added when Arun Jaitley says that
people are still not paying taxes…. Net tax payers
have not changed so much so where have these
Mudra Loans, Stand Up India Loans gone?
Answer is, banks have just renamed loans that were running
as Mudra Loans or Stand Up India Loan.

Banking in India is still collateral based. Skill

based loans for creations of jobs are
not there. You know why? Top man
and Babus are worried that it will be a
scam.

Bank manager thinks why lose his job on

skill based loan.

What if the person fails? If he or she does

not return my pension may be
stopped.

Failure is not an option

and hence give only loans where a property
of double value is there ☺ End of
Mudra Stand Up and Start Up Dreams.
Chapter 18: All Marketing No Work - Big MOUs
No work.

Now you will have very few believers in Modi like me

when we started. Do you remember what was the first
MOU that got signed in Varanasi in presence of Abe?

Varanasi will be developed like Kyoto. 2 cities signed

MOU backed up by 2 governments. I was also mad and
wanted to be part of this success story. Anything
Japanese is more Indian as they were the one who
supported the Bose till last minute and contributed in
our Independence.

I decided to go to Japan. Met the mayor of Kyoto and

offered to be a part of the story.

Result: No Budget allocated by any country for first 12

months.
I quit following that after a year.

Does anyone remember that MOU or has it gone in one

of the non-functional toilets?

Four years have gone through that MOU. I still did not
see any action on that. I found more MOUs with Modi
and Yogi…… What will happen to those, I should know? I
need to be a born Guajarati. Did I tell you that the ring
road in Varanasi is mostly made by a Guajarati company?
You can see its name when you come from Airport to
city hotel. They could not find even a local Industrialist
to award that contract.

I am going to publish a list of MOUs done in Gujarat and

UP in 15 years and show you the result. But you are not
going to vote on that basis. You are going to vote for
Modi anyway because you are Hindu or a Muslim
Women but that is nothing to do with MOU and
Development. Even I may end up voting for Modi for lack
of any other choice but hell who cares. One day I will
have to QUIT on India, my motherland. I just hope I get a
platform to change.
Chapter 19: Large Industries No Jobs

I think someone needs to tell this to Prime Minister that

I am fine with the Idea of giving everything to 5 Big guys
namely Adani, Ambani, Sajan and couple of more
Guajarati Names if they change their way of working

Currently, they are working on following model

1. Import from China or where ever it is cheap as

assembled parts
2. Put a centralized automated assembly plant to
claim Make in India. Work on efficiency and cost
saving as key to success and not Job Creation
3. Just Use India as Bazaar to create wealth for
themselves.
Imagine if Jio had local manufacturing units (may be
small) in each district versus importing phone from
China. Or Mr. Desai having a solar panel creation factory
in every district rather than importing it..

This model will fail India by 2022 as after 2019 almost

every sector in India will be in control of these five six
who will believe in creating an Antalya and not a
Pradhan Mantri Awaas Yojna.

You will have pure monopolies by 2022

i.e. in second term of Modi ji. Dreamers
will have no space.
Chapter 20: Government Mind Set

● Overseas Success is what recognized in this

government mind set. Have you ever seen a
conscious effort on behalf of government to
honor the middle class who are trying and
working to give jobs to average Indian? An
appreciation ever? You will be getting much
bigger an audience if you are a global visitor than
if you are successful locally. Have you ever
understood why that respect of overseas and
why a contempt for success here? Simply
 because success in western society is lawful and
appreciated while success in India is looked down
because of corrupt practices.

● Your middle-class success will never be stated in

Man Ki Baat. If you are an uneducated person
and or you have used up the 15-lakh loan or you
have done cleaning - then you will be celebrated.
You are not in focus.

So dear dreamers. You do not have to fail

and end up in Jail

Fail somewhere you can start up again.

You have the right to fail which is not in

India

You do not have a value proposition even

for trying in India

Dreamers Quit India.

Chapter 21: You still want to work in India…

India is not where you want to start up but then, when

have you listened or acted - as told. That is why you are
a dreamer.

Listen again before I start to tell you - Go to a country

like US and Canada which have bankruptcy laws and
where you can have a life even if your ideas do not work.
People cannot cheat you in partnerships. Contracts have
sanity and Judicial process is independent of executives.
People are not cynical and becoming rich from an idea is
an accepted thought. That’s why that is a land of
migration, start-ups, opportunities.

Now, if you must start up in India and you have no other

option than I will offer you a “Kunji”. There used to be
books called “kunjis” where if you read one of those -
you will most certainly pass the exam and not fail.
Sometimes if your luck is good you may become a
topper or attain good grades. This book is like a “kunji”
for startup that you want to read before you write that
start-up exam of your life.

I would like to suggest that these are the thoughts that

we have come up as a research team and you may like to
do your own research in adopting these methods. We
will again go one by one, in all aspects of a start-up and
explain what you need to do here.
Chapter 22: Idea

Act solo till your idea is firm. Do research without telling

your exact idea to anyone. First thing is to draft and
write the Idea clearly.

We will first put the litmus test of your idea to cashflow

situation. Following details are needed to be done by
you

● Imagine your idea is done and you have attained

success
 ● With this success scenario in your head, how
many customers do you imagine, you will have
● How much they are paying to you per month or
how much they will pay you one time for that
product in your mind.
● Now, imagine the journey in your head step by
step
● Write down these steps
● Make a cost sheet for each step
● Sum up all the cost
● Double the money i.e. if you reach 20 Million
Indian Rupees you will need to arrange 40 million
rupees for your idea

Get it patented. Process, Products and Ideas do get

protected and patented using trademark and patents.
Get a good lawyer. Get your Idea patented outside India
first, like in US. this will ensure that you are not a looser
because of the bureaucratic hurdles you may face in
India. Please note that many of patents are filed by
patent thieves and thugs who will file just after you but
get the patent before you. This happens where patent
offices are linked with companies, which only lead in IPR.
They buy and sell patented technology and processes. It
is the biggest money-making business for large VCs and
HNI. You will be contacted by one of them as soon as
you file, it if it is damn good.
Chapter 23: Structure

Now you want to be safe absolutely. Open a charitable

trust. Idea will be leased to this trust. Trust will pay a
rent for utilization and working on this idea.

You will begin to ask why this complication? Donations

to trust are tax free. Get that certificate and ask money
for that trust across India and world. People will pay and
you will have free money to work on your Idea. All the
income will be with the trust and you can pass on trust
shares as prized asset. You want to see the best model of
this working. Study Tata Trust. It is the safest model in
India.
Why this model? From the start we would like to keep
our assets and liabilities segregated. We will have to
make a model in which capital that you are going to use
is safe even if you fail. Even if your execution sucks and
you fail in executing your idea, your patent and asset will
remain with you. You may lease it to someone else and
get a smart rental all your life.

Assets belonging to a charitable trust can never be taken

by Government of India. Government may be able to
create a board but you will always get a fair proceeding.
Best will be, if you get the idea patented in trust name.
No bank can auction a trust property. Also, all Hindu
temples in India are run by trust and boards. Any change
in law will affect 70 Cr people’s imagination. Now you
know why it is safe to take the trust route.

All the working assets will be bought by trust and will be

given on nominal rent to working entity. These assets
will never be auctioned or can be taken away by your
suppliers. These can never be seized by law authorities.
Only data can be copied. Rest must be given back to
Trust.

Milestone 1: Trust created. Idea Patented. Money in

trust. Whatever charitable work you want to do, do it
from that trust. Assets purchased by the trust for
working on Idea. Entity working on the idea will rent
the assets. Money that you receive as rent, you can
invest in charity like adopting a girl child or whatever
mission is close to your heart.

Company/Entity

Register your entity in either North East or in Jammu

Kashmir. ☺

You get financial incentives much bigger than anywhere

else in India.

All you need to do is to hire a 300-sq. ft. office. Set up a

small secretariat office which scans, forwards all the
mails to you. Keep the lights on. You need to complete
all requirements to get startup subsidy in this state.
Remember – 100% compliance

We will change this office when we will be well funded.

Now some of the states in India have zero income tax.

Find out from CA. Use the CA.

It may be news to your CA as well, so go through the

documentation.
Hire two educated unemployed English-speaking people
from this state. if you choose J&K you will find good
Laddakhi people or in North East - honest guys.

Company equity and Directorship both will belong to

these two people.

If you are having a heart attack already, I will explain you

your role.

You are an angel charitable trust donor who wishes good

thing to happen. You have invested in buying or renting
the idea. You have loaned it for execution to these 2
people. All you are doing is trying to get a decent rent so
that your charitable work can go on.

A registered contract will be in place. This will be a loan

contract. All the money you are going to invest in the
startup will come in form a loan or assets on rent. The
agreement will also state that this loan will or can be
converted to equity / profit at the time of success. It will
also state that all liabilities belong to company. The first
right of any fund receivable will be yours. Get this
document vetted by an IRP or Bankruptcy professional.
In case of failure you should be able to file bankruptcy
on this company and siege all assets and future cash
flow. The digital signatures of both the directors will be
with you always as security. Define this security in loan
agreement itself

Too complicated?? You do not own a company which is

going to work on your idea. Answer is NO. You remain an
Angel Investor who is guiding the idea for charitable
purposes from Day 1. After all, when you will become a
unicorn you will become a philanthropist.

Why not start on the same vision from day 1? Now

comes the real reason. Money lenders or Business
Lenders are always protected in India. Indian laws are for
lenders. Not for business promoters. You will run the
business but by proxy - like all VCs. You set the direction.
You own the patent. You own the assets. You are funding
it. Now keep the contract in such a fashion that your
investment is returned first. Equity owners can take the
money after that.

This simple step will save you from all liabilities.

Now that you have set up the company and resolved the
equity and directorships - what are the next steps.

Open Accounts
Accountants and CFO will be your man.
All payments to be done through ECS/INET. These
passwords would be shared password for viewing.

You can view the movement of money as and when you

need it. Remember these are shared passwords and not
in your name. You will NOT be an authority in the
accounts.

All the memos and approvals needs to be done by

directors.

All the account approvals are their accountability.

You will be checking it on daily basis, as eventually, it is

your money.

Now ensure all legal filings of company are in place.

Auditors will be appointed by you.

Chapter 24: Office

Now that you have set up company, the first thing

needed is the address of your workplace.

I suggest that do not pay rent. It is waste of money. It

has another plus. In case you are down with money
problems - you have one less concern i.e. to pay rent for
operations. You can fire all and still continue alone. Do
not rent. Buy Office in name of trust ☺ . Keep the rent
deferred as liability.
Now if you do not have money spare enough to buy
your office. STOP. Drop your dream. You have not saved
enough to do a start-up in India. You must be seriously
stupid to move forward. Plain and Simple.

If you do not have enough savings to own your own

office why do you want to start up in India? Please go
back to your job and make some money. Create that
security. No need to Start. Period.

Now when you buy your office utilize only half. Rent out
50% of apace to other. This will ensure that you do not
end up paying maintenance of space. The rent of 50%
office will take care of security and other monthly
maintenance items.

Another way you can enrich yourself is by giving space to

other startups and take a sweet equity in those start-
ups. They do not pay rent and give you like 2 to 5%
equity. you make a killing if they get successful.
Chapter 25: People

Hire Professionals who have experience.

Hire employees in key roles only.

Hire contractors who do the job as per the defined

outcome and are paid based on outcome.

There are very few Indian contractors who have ethics to

do so.
Try websites. You can hire contractors on net who will
deliver work based on the timeline and in budget you
want.

You need to ensure your cost vs deliverables are

measured.

When you do in-sourcing of contractors from your

premises you end up with another set of problem. Their
manager will assign work of some other organization.
They will do it at your premises and at your cost. Have
good contracts written to avoid that. if anyone is found
doing so, take the double of the amount back from the
person. This will ensure they will refuse their parent
manager or will charge real heavy. In both the cases,
such instances will reduce.

All the contracts need to be written in your favor.

Whosoever throws the weight can go to hell. If they
need Reliance they also need you. 2 Reasons. You will
pay better and you will pay on time. These 2 are good
enough reasons to have a favored contract.

Try to keep the total employees to a number less than

10 or 12. Reason: You will not have to pay for ESI or PF.
Now the golden rule: If you have enrolled in ESI or EPF,
pay it on exact date even if you are not able to pay
salaries in time. Let us say your salaries are delayed by 2
days. Do not delay PF or ESI by those 2 days. Pay it as per
the cutoff date of payroll.

Employees are loyal to money that is coming per

month and not to you. They are loyal to their boss till
they think boss is in your good books.
Now let us talk about bonding. Start-Ups are known to
pamper employees. Do that but by words and by nature.
Genuine money spends should never more than 1% of
your total start up budget. No over the top parties. It
must be potluck. You are paying salary for 24 hours, Yes.
Demand Overwork. In case of white collar job there will
be no overtime pay. Now say you are governed by labor
laws. You need 8 hours on machine or on job - no less.
Period.

All time lost is money lost for you. In India people tend
to do less work during pay time. They show that they are
working more. They believe that this will help them get a
promotion.

Infosys did a cross check and studied people staying in

offices and found that it was more a case of social
surfing, mails for many. Mr. Narayan Murthy in a famous
speech asked his staff to get a hobby.

Demand Work and Demand Performance. You are not

paying them for teaching. Forget your big company
culture. if they are not productive in first 15 days FIRE
them. Yours is a performing organization and not a
school. Remember you are working on new idea not on
new learning - that too a paid one. They will get to learn
of your idea but only by giving you performance in
return.

if your HR tells you people not to fire people, fire the HR

first. We need an aligned team. There is so much
unemployment in India that if you have money to pay
you will get a replacement soon. Your HR need to keep a
pipeline for all the hires. They may get fired after 15 days
of hiring.

Do NOT hire a reference. Never hire a reference. The

reference is going to be a liability. you will neither be
able to ask for performance nor fire the reference. You
will waste time to pass him on. Simply refuse it. Even if
someone wants to come and work for free. Working for
free means, your time will be invested to teach him. Tell
people in their faces that please do not tell me to hire
any reference. You will not be able to do so.

Create a fresh team of pure experienced guys in

expertise you want. if you want you can take top notch
fresher from IITs etc. but do NOT become a training
factory. Let the big guys be training factory. Avoid that
trap.
Chapter 26: ZERO OVERHEAD

You may think it is not possible but I am telling you it is

possible. In fact, you will gain, if you listen. Few
examples

● No Parties. Ask people for potlucks or get

together at their homes.
● No office crockery. Sell environment friendly
plates in office. People will bring their own
crockery and wash it or take it back.
● Tea and coffee is paid. Keep coin machines. Coins
are purchasable.
● Do not throw Pizza, Burger or other parties. Do a
fruits party. Costs you less and it is healthier for
employees.
● Decorations: Balloons only. Any expense beyond
balloons is waste of your survival money.
● Birthdays: Celebrate all birthdays on last
Saturday. One cake is enough. Coke is also waste.
Have things like Roohaafza.
● Awards: Certificates and trophies with shopping
vouchers are fine. No need for large shopping
vouchers. Small vouchers not beyond 1000/- Do
not think that value is disrespectful. In fact, if you
think sometimes only certificates are good
enough. Trophies are for occasions.
● Sales Incentives: No cash incentives please. Only
vouchers. When you buy vouchers, you get them
at lower cost. A fully paid 1000 Rs voucher can be
purchased in 900 Rs and you can claim that as an
expense as well for company. If you buy those in
bulk savings may be much higher. Also, no instant
gratifications. We have become a bribe culture.
Let us give some cash at the start of sale itself or
a contract MOU signed. Rewards should be on
Money received in bank accounts already and
not on future receivables. Real money in your
account is the only indicator of your success.
● Change Programs, Team Building: “Buy You Own
Booze” and Boss pays for food is the best team
building in India. Do not waste money when you
are a startup. for a startup these are waste of
money.
Chapter 27: Cashflow

Cashflow is the king. Profits do not help survive

companies. Cashflow does.

The first thing you do with your money is to keep 90

days compliance money in advance.

Why?

Let us assume, you fire a person who was watching porn

and the person sitting next to it dialed 100 without
telling you as last night they had a fight over booze or
the girl they want to date. You will have to fire both
probably. You do not want them to come back to your
office. you will pay their due, pay their PF and all money
as per their contract. It will be a 90 days fixed money
that will save you.

Bank Loan Vs Investor Money

Always take bank loan from a nationalized bank. It is
preferred. Don’t take loan from Private banks like ICICI,
KOTAK etc.

If you are not able to pay bank loan of a nationalized

bank, they will send you notice, bank manager will be
following rules and will give you all types of breather
possible as per law.

If you take a bank loan from a private bank they will

send GOONS. they will send GOONS at your home, your
office. They will start calling you from 7 AM and call till 8
PM every 3rd minute and you will say my God what have
you done. So never go for these GOONS. Not even for
your credit card.

If you take loan from a local unknown investor he can

file a case under IPC Sections 420, fraud, conspiracy, 138
– Negotiable Instruments Act (in case you have issued
Post Dated Cheques). It is not worth your time and
money.
Cashflow from Retail Market
Retail Market is “chiller” market. If your idea is
completely based upon cashflow from retail market, do
not bank on those for running your company cash flow.
In India there are 2 kinds of business men

● Those who are making things. I will call them

Farmers
● Others who put money in trading these things. I
will call them traders

You cannot be both i.e. Farmers and Traders in India.

Lobbies will kill your product. Also, traders have the
cashflow to buy in bulk. They will help you build farming.
Traders will also get the laws changed in their favor. Let
me give you an example:

Some time back large websites were running their own

cashflow for inventory and managing the market.
Immediately, you started listening a lot of noise on illegal
practices. Law was changed to have at least 4 non-
related companies as suppliers. Traders had their way in.
Now companies are looking towards large traders or are
forced to take more than 3 Venture Capitalist Funds who
own 3 different large Trading companies or partners. As
soon as that happened the entire talk went down to
drain.

You should sell in bulk, in advance to traders even if it’s

a case of digitization of service.

Let us say you are trying to sell furniture online. Use

large furniture traders who can buy your product as
retailer and then they sell using your online brand as
service. You can sell them twice. First your product and
then your Service.

Let me give an example of what 1MG did. They picked

up medicine from large distributors and saved their cash
flow. They did not have to invest in cash flow for
inventories.

Look towards best practices like that.

Collection

Only selling is not good. Your collection team needs daily

inputs from you. Do not put bribing techniques in
collection like receiving money in advance for your
product and using that for running company. You will be
hanging on a loose thread if you did so. Also, do not put
discount on the price for advance bookings and replace
that as a cost of bank loan for receiving advance money.
You will not be judged based on quality of service but on
price discounting. Discounting means service deficiency.
Make a good product. Sell at above the Market Price and
Collect the money as you deliver. Do not let collections
get loose as people in India do not want to pay the right
price or fair price of the good or service they get.

Daily collection should put the money back in 90 days

compliance account if you have borrowed from that
account. However, if you have not adhered to this
practice your end is near. Your 90 days compliance
requirements will keep on increasing day-by-day. Every
day collection should have some part going over to your
compliance account to mitigate the extra-liability you
have created that day.

Service Fee

In case you are in a product or a service which needs

customer interaction, keep a fee to service your clients.
Any scheme like free service for a year will get confused
as free warranty and free replacements till one year. You
need to be very cautious in those schemes.
Chapter 28: Government Subsidies for Start-Up
Cash flow

Unless you are well connected in government at mid-

level avoid that trap. Just put a person based on success
fee who does not take much of your time. Most of the
subsidies are coming in the form of the loan only. Avoid
that. When a new government will be formed they will
probe you in anyway how you got that subsidy or loan
and then you will be harassed like hell. Avoid that. Do
not fall for this trap.
Large loans from Nationalized Banks
Never take a loan larger than your branch manager can
do it for you. A larger bankruptcy is always inviting
trouble in India. You will have ED, CBI and what not at
your door step. Let me give you two examples

1. Vijay Mallya: Did not he offer to pay the principal and

settle one time?

2. Neerav Modi: Why could not bank have taken a

SARFRASI route and take over asset and sell company to
Adani or Ambani? Now half of the frozen good will be
replaced by corrupt babus in store like gold recovered in
custom keeps vanishing.

So large loans are bad.

What is better? An IPO where people bet on share

price and not on dividend.

Do an IPO and engage large brokers. they will ensure

you survive for 50 years as no one buys equity in India
for Dividend.
Chapter 29: Investors

It not just you, who need them. They need you as well.

You need a good idea. Good execution and Good Media.

They will find you.

You need money till you can sustain for a great execution
process.

Delivery should be liked by your customers.

You need money to remain in India

You need money to do it at a scale.

Everyone who is sitting in a venture capital world need
large deals as large incentives will come only in large
deals.

Work on your connections of close friends in IIT and IIM

to get funded.

If you are Not IIT IIM you may not get funded. There are
99% chances for the same.

Do not waste your time on approaching endless list of

investors.

I have already told you no to start, if you do not have

enough money to pull it at a level where you become
sales dependent.

Get yourself included in the success stories of your

clients. Work on word of mouth good publicity for your
delivery.

Listen to your customers.

Do not waste money in meeting uninterested Venture

Capitalist and Angel investors. If you go after them, they
will only take your ideas to improve delivery of an
already invested or connected project they already have.
Let other people do that mistake.
You execute your idea on your money. If you are finding
it insane let me tell you my reasons

● Remember the perception, there are no Honest

Rich Persons or Investors in India. It is a rare
variety. let me tell you how crude this world is

- You send your pitch deck to all investors. Few

of them will already be working with others.
They will simply include your idea in their
invested start up. Your logic for approaching
them will be that they do investment in
similar area and hence would like to do more.
Bad Idea. You need to know and I will remind
you. People whom you have sent the deck
cannot take the risk on their salary. They will
have to make incentives on bets that they
have already taken. If your idea will be there
and they like it, they will try to see how that
is accommodated in the bets that they have
already taken.
- You are sharing your idea to all without any
return. Not Good. Everyone tells you it is all
in execution. But let me tell you, all unicorns
were successful as loners. Facebook,
WhatsApp, Google etc. etc. Whosoever tells
you that it is all in execution tell him its
 bullshit. Execution can happen with money
90% of the time. You execute your idea. Make
it a success. Take it to a level where all
salaried people will like to be with you.
Investors will try to find you automatically.
- Do not waste time as you work with
investors. Meet them in your leisure time and
not theirs.
- TIE, NASSCOM, START UP INDIA, INVETSORS
meets are for rent seekers. Nothing sells as
success, remember that. Only thing that sells
faster is tragedy news in media which comes,
if you fail and go to jail.
- if you cannot make cash flow work using your
idea and using your own money who else will
pay you for that. People with money are not
that fool.
- Everyone is looking for a large deal. For a low-
cost deal or a large deal, they must use and
spend same time. So, you reach to a size with
your money so that you can ask for more
money.

Let investors reach and approach you rather than you

send thousands of pitch decks. You just try to be
successful with your own money that you have. If you
are worth it they will find you and screw ☺ Only thing
is that you will like it than.
Chapter 30: UNTOUCHABLES and TOUCHABLES

Do not choose areas where large capital is needed for

success. Some of these areas can be

● Real Estate
● Resources where government has a say and will
probably beat you till death like mines, gas,
ports, railways
● Art
● Fashion
● Films
● Media
● Politics
There is dirty money in these and big players will not let
you succeed. For example, if you are working in Real
Estate you will be called a thief, or a dacoit even before
you start.

So, what are the touchables

Well, since you are not listening me and will not quit
India so I must tell you following are the areas that you
should work upon

Information Technology
You sell the idea outside India. Receive money in $$. One
of the other reasons that you should work on
Information Technology is government departments are
still catching up. Technology changes are so fast that
government employees do not understand the
frameworks that fast. Also, people who are working on
this can be found to be better skilled.

SPORTS
It is catching up fast. It is also liked by people, so there is
a lot of positive in that. It is also an activity where
customer feels time is well spent, hence you get a lot of
quality time of customers.
EDUCATION
Indian parents are still willing to invest in education of
their wards. This area will get you respect, investor and
customer - all three quickly.

HEALTHCARE
Patent your idea for sure here. A lot has happened in
large democracies around the world and still large
improvements in this area are possible. Do not touch the
area where medico legal liabilities are there as very soon
Doctors are going to be termed as Dacoits. Negative
mindset of people is going to make this profession
tough. Lot of opportunities but lot of liabilities as well.

TRADING
Best area to be in. Just make sure that past and future
are waste. deal and money in hand are the keys to
success.

GAMES and VIRTUAL REALTY

Near to IT and lot of excitement so you can surely opt
for it.

PUBLIC SERVICES
If you can find a way to channelize the service needs
which are unique and create a niche then you will be a
winner. Example: Care for Ageing
BANKING and INSURANCE
The biggest fraudsters are Indian banking and insurance
systems. Indian stock market works on P NOTES and
Mutual fund money which are controlled to get large
loan from Indian Banks. Stocks, Mutual Funds and
Brokering are biggest area of work if you understand
those. One of these days I am going to sue their illegal
practices but you will still be the king, if you can become
part of their system. Like PayTM, at the end of day it is
nothing but a new way of banking system and finally a
bank.

SOFT PORN AND REGIONAL DRAMA

India’s original pass time on phone. if you can crack that
you will be a king.

Aggregation of existing service

Not many areas are left but if you can find an area and
you can be successful than you must try for this. This is
the area that is still young.
Chapter 31: CONFLICTS

When you start working on new areas, conflict

management is what you need to know. I am assuming
you are master of the area where you have come up
with new idea otherwise you will not be able to even
think of starting up afresh. Now here is something you
must learn

● Can you manage your thana? Do you know your

thana? ☺
● Are you from a family of a ruling party politician?
 ● Do you have an IAS or IPS in your immediate
family, who is at least a DM or an SSP.
● Are you linked with a mafia?
● Do you have a Judge in your immediate family?

Now if all the answers are NO than you should not start
any company in India. You will be to afford a conflict only
if one of the answers to the above questions is YES. If
there are more than one yes you can afford it for sure.

You are assuming the kind of conflicts there may be. I am

assuming that work related professional conflicts with
employees -those you can handle and those are not the
ones we are talking about.

Scenario 1: You have a security guard. He keeps the locks

and open the keys in morning or manages a card system.
Now let us say you have taken this guard from company
X. This company utilizes the guard for 16 hours one day
as the replacement has not reached to relieve him. He
faints at your campus because of fatigue. Suddenly you
are liable for negligence. You will have to pay for
hospitalization, travel and his leave. You will incur extra
cost but let us say someone called 100. You will end up
bribing the PCR for say at least 5000 Rs. and some
booze. If you try to lodge a complaint you will have to
have a lawyer. That is an extra cash burden on your start
up. Now the conflicts that you will create here are as
follows

● Pull up your agency

● Pull up the administrator or head of your
department
● Deny paying for hospitalization
● Mistreat Police Vehicle and People

These are very small things but when you are in a job
they are taken care of by someone else but when you
are running a start-up, things will reach you and will be
managed by you only. Now how will I handle if similar
situation comes up

● Pay Up
● Fire my administrative head
● Move On

Create a system where there are enough check lists and

system checks. Like Admin head will not allow a second
straight shift from same guard - no matter what.

Scenario 2: You have a good-looking receptionist. You

reach early. Call her to ensure the tea is served by the
office boy to you. She comes in and asks for 5 minutes to
talk to you. You grant her wish. She asks for a pay-rise.
You deny it. She calls 100 and puts sexual harassment
charges against you. You will read this and say I am
talking bullshit but you will be in a scenario that you will
never be able to explain to your wife ☺ Large
organizations have CCTV and other mechanism in-built
but here is my suggestion. Never be with an employee
alone in your cabin. Have the doors open. Ask her to talk
to admin head and ensure she is fired or given a salary
raise ☺

These were easier and manageable conflicts. Now, I am

going to talk about CONFLICT WITH PARTNERS
Chapter 32: CONFLICT WITH PARTNERS

Remember the rule. No Partnerships. Go SOLO.

But you will not listen to me. Now if you do have

partners than let me tell you what you should do.

Exit Scenario

One of your partners wants an exit from the start up.

Remember that there is no exit based on valuation.

Yes no one offers or gets a valuation based exit.

Exit must be based upon liabilities.

The guy who is leaving pays his share of the liabilities

first. These liabilities could be like PF, GST etc.

Leaves the valuation of the start-up.

Whatever amount he had invested in the company - will

not be returned.

If needed the entire company should be closed.

A new one is started with you as SOLO Player.

You do not take his or her liabilities against the amount

he has invested before. The guy who decides to leave
first, loses first.

All current liabilities are calculated based upon the

promises made on services and monies to be spent.

Let us say your partner says I will leave on 31 st

December. Than all liabilities will be calculated as if
company is closing on 31st of December. Whatever he or
she had to pay legally to close the company - he or she
pays that amount and leaves. Now if you are not getting
a clue what I am talking about here, this is what will
happen.
Say, you need to file an advance tax on 31 st December
for next quarter. He would need to pay up his
contribution in that and then only he should exit. Other
than that, include calculations based on PF, Fire, Labor,
Rent, Security, Operations cost for 90 days, Supplier
Sundry amounts etc. in settlement or EXIT plan.

No vesting of shares.

All shares are transferred back to company.

Please do not be lenient as most probably he was and

still will be your friend. you will have two scenarios now.
Either he will agree and the situation will be settled the
way you want or the conflict will start.

Now let us see what happens if

● he or she is not willing

● Does not have money for the liabilities.

File for bankruptcy. How? Who will fund it?

Do you remember the structure? You had come as an

investor in the company from a charitable trust or it is
simply your solo company. You as an investor will file for
bankruptcy. Company will accept it. IRP (Interim
Resolution Professional) will be appointed. You as an
investor will get the company.
Now start again as if you have fresh company. You
remain as an investor. You restart again. This is the
perfect legal way.

This is all how all big corporate are functioning. Have you
seen any of them being directors in any of their
company? Do you see any of them holding equity
directly in any company in their name? Now you may
not be able to create the exact structure but we can
adapt the gist of the law. Will explain you the difference.
in 2 G Case for Unitech, Chandra has to go to Jail but No
Ambani went to Jail ever. Reason? Just figure it out. Devil
is in the details and Structure.

Law is clear if you are an Investor in company taking all

the decisions but there are two educated gentlemen
signing as directors and equity holders then they are the
ones going to Jail. You are an investor and protected.
Directors and Equity Holders are responsible for the
mess. You are neither. ☺

Now that you have moved your partner out, Go Solo.

Again, same stuff. You start as an investor. Find 2 equity
holders and make them directors…. circle starts again. If
it was too much – Go, start again on a salaried life. Take
a break.
You can re-start in India. You have survived and learned
the art.
Chapter 33: Conflict with Customers

If your customer service is not good, conflict with

customers will start emerging.

Customer in India do not understand the concept of

small paid up service. Let me give you an example: A
Person will buy a car for 40 lakhs but after 3 rd free
service, he will start looking for a local mechanic. Not
that local mechanic is bad but it is just the nature of the
customer.
People and customer in India have a concept of all-
inclusive cost of product and service.

They do not want to pay for that service. Let me give you
another scenario. Let us say you went to change your
plan at a telecom center of your mobile company and
company charges 1 rs per minute for physical interaction
- will you remain a customer?

So, when do customer conflicts get created?

● When he perceives that he must get something

for free and you ask for money.
● When he expects that value of the product is not
worth it

So, what do you have to do:

● Declare what they must pay and when

● Declare what is included in that price
● It is best to declare what is not included in the
price

Recent conflict in one of situations arrived at a mobile

shop in front of me. Samsung notes comes with
standard headphones in the box while one plus five does
not. Now this guy had decided to take one plus five.
After 15 minutes, the guy comes back and started a
quarrel with the shop keeper. Shop keeper had a bad
day because of this perceived service as price of the
product and advertisement is similar. Shop owner put a
disclaimer and next few phones sold were Samsung
Notes.

On an average when you start yup you should have zero

conflict with customers? When your conflicts with
customers are greater than 1% of customers than you
need to go back to drawing board to see what is wrong
& where?

Only a dedicated employee or a lazy person will brief

you about possible customer conflict. Try to eliminate all
customer conflicts and make those ZERO.
Chapter 34: Conflict with Employees

Minimize it but be firm.

Be a hard task master.

Keep the good folks with you.

Try to create a low salary, high incentive model when

you start.

If you have money you may have to pay for people

higher than the market price for 5% of people. Do not
have that as a practice though.
Do not fear for employee attrition. That is part of
solution and not part of problem. My boss Sharad told
me that some jobs are done by donkeys. They do not
become horses. Pay them good only if they become
horses. Some donkeys should move out who have wear
and tear ☺

Create a Bond with all. Most with your Horses.

Eat and Drink with them - more often than you like.

It will give you an idea of their relationships, their

problems, their insecurities, their crushes.

During the process you will create some favorites.

Avoid playing favorites. You may like few but you do not
have to play it.

Performance is your favor.

People who perform consistently should be in your A

Team.

Listen to your employees. But not at the cost of your

dream.

Filter the common theme or common element of

feedback.
Accept those and fix future paths based on the
feedback.

The only conflict with your employees are on the

performance. Nothing else.

Your employees are your army. Your commanders and

Generals will win this war for you.

Perceive your business as a war with competitors. your

army must win it for you

Deploy the Chinese way of winning the war. Army never

questions the generals. They align and win it for their
generals.
Chapter 35: Conflict with Vendors

Not advised at all

They are your success partners.

They are your real investors that too without any

interest.

Good vendors will keep running your system from their

capitol.

Maintain best relationships with them. Keep them happy

with your relationship.
Keep them underpaid. Keep them invested.

If you are successful, then keep them invested even

more.

Make sure you have personal family relationships with

their owners.

Since they supply to many, they may help you set up

with another real investor.

There is one another reason to keep them happy.

They all are dreamers like you and will take a hit when
you file bankruptcy, if you fail.

If you have good personal relationship with their owners

many of them with take it to the chin.

Entry back to normal life will be much easier if they are

happy.

Your payment policy should have a cycle of 60 to 90 days

and you should and must pay based on that cycle.

No PDCs (Post Dated Cheques)

NO ECS Settlement notes and contracts though.

If they like they will work for you

If they show you highway, see it ☺

Find another lift to your destination.

Chapter 36: Marketing and Sales

Outdoor marketing is the costliest buy that gives you a

good local reach. If your product and service is good -
you can get a barter deal. Barter is a concept where you
will offer a mix of cash and product & services of the
value. However, you do not get the best of hoardings or
outdoor spaces in this. Barter is best utilized only for
Brand Building and Awareness. It will give you some
visibility but not sales. Your advertisement also needs to
connect to common people. One of the most wasted
and costliest campaigns was housing.com #lookup
advertisement. People kept looking up but never
realized what to look up, where to look up.

Stay focused on sales. Again, in India sales and

marketing are different from entire world. There are two
types of companies in India. One that manufactures and
one that sells. Those who sell often outsource
manufacturing process up to 80%. One who
manufactures outsources sales process to traders, more
than 80% of the process.

The marketing is the common link. Best Marketing gurus

in India:

● Baba Ramdev: Started with Yoga, amazing brand

and now sells everything. maximum outsourced
operations.
● Narendra Modi: Sells Vikas (Development) and
Hindutva. Delivers to the poorest of the poor. You
can take retirement by becoming the poorest of
poor. Free Food, Free Electricity and Free
healthcare. Why the hell you need to work. Yes, if
you want to be his true customer you probably
have missed the bus. He has limited 5 customers
whom he delivers. For rest, he is a Pradhan
Sevak. What we learn from him is that you
should have 50 programs running i.e. 50
 offerings, in one go. Sum of all sales will keep you
running.

These 2 gurus have taught us one more thing. Best

marketing and sales is through human interactions only
and it should be based upon Hindutva or religion. It still
sells. The channel of marketing is social and direct.
Phone is the king. The new phenomenon is how much
mobile time of a person you can buy or have.

You will have to deal with telecom networks, if you want

to reach to the audience sooner.

Here are some don’t I must tell you. Again, I am writing

this book with an assumption that you know what is
best for your business. I am here to tell you what would
be the problems when you apply those best things you
already know.

Digital marketers use in-game and in-porn ads on

people’s phone. Now, these guys use push techniques.

Lawyers in India are now awakening to these conditions

and filing claims against advertisements in form of PIL.
You need to make sure that you do not get caught in any
claim of that type.
Chapter 37: Multi-Level Marketing

Multi-level marketing in India is considered to be a

SCAM. Do not try that, PERIOD. At some point of time
people will come to you for that. Just do not get
tempted or lured in that. Do not try to attempt it. The
largest Multi-Level Marketing company had trouble in
India. Finally, they managed bureaucracy and political
patronage and have got Direct Selling guidelines created.
Try to follow those if you want. You need to study these
guidelines.

Anything GREY in India is BLACK. So, if law if GRAY you

should assume it is BLACK and for you it is a no-go area.
Do not enter in a business model that is based on
considered grey area. You will end up spending too
much money to prove that it is grey or white. Law will
assume it to be black. Authorities will see it black till
you show them GREEN or PINK notes.
Chapter 38: Dealing with Government

I will start with following knowledge for you

● Law is for you till your complaint does not reach

any government department
● If there is a complaint you are accused.
● Onus is upon you to prove that you are good. Not
on complainant.
● Any lawyer and anyone else telling you
otherwise, is just fooling you.
● Law is with you ONLY if you have money.
● There is NO law, if there is NO Money.
● Once you are in a Court or Thana, law is against
you if you do not have money or your opponent
has more money or more political power.
 ● If you reach jail you will be the odd man out. All
the famous kidnappers, shooters will have a new
target for money collection.

Now, your dealings with the government should be like

this:

● Keep a direct political clout. Chief Minister is the

one whom you should be able to call. Second
best is his secretary.
● if not, have links with the cabinet ministers
● Your MLA and MP should know you. They should
be known to you on an individual call basis.
● IAS should know you as a family.

These connections will vanish when you are in problem.

But they can get you time to get out of problem
● Keep friends in all political parties like Jindals.
One brother supports congress another supports
BJP. They will be never in problem.

If you do not have the above then here is the thing:

Remain 100% Compliant to Law.

You can try to bankroll IAS and IPS, but that will be
needed only when you grow big.
Chapter 39: Dealing with Competitors

As you grow in business your competitors will notice

you. Now some of them will deploy techniques that you
would not have heard or imagined. Some of these will
be nasty. I want to tell you it is dog eats dog world and if
you are not ruthless enough, this is not your place.

You may not want to do those nasty things but you need
to know what those things are. There is a saying in Hindi
“Thug Na bano per thagee to jano”. It means you may
not cheat but you should know what is cheating.
Now, in start-ups how do people get cheated - knowingly
or unknowingly.

Interview of prospective employees

if the competitors would like to know about your ideas
and progress, one day your key person will get an
Interview call for a higher position. During the interview,
a debate on ideas will start. As you would have hired an
intellectual person he or she will surely get into the
appeasement of mind via debate and in process will
reveal what he thinks, what aspect matches his or her
boss i.e. you and you are betting on what kind of
features or products. Your idea is with your competitor
even before you execute it well.

How can you stop it? You will have to have a contract
where it will be banned to talk to certain companies and
recruiters about you. It all will go in hiring contract and
there will be penalties including class action suites. Your
key personnel at least, if not all, will be covered by this.
These are standard practices in west for higher
executives but in India but it will take a while to reach to
start-up level.

you will have to cough up a handsome fee for these

contracts but these will be worth it. Your employees may
find it very harsh but you will have to explain it to them.
In practical sense, you must go far & deep enough to
protect you and your idea. These contracts will help you
sue your competition in case they hire and implement
any feature that you had started. Any profits made by
them, you may get a share of that as well.

Many a time these suits are settled in such fashion that

one ends up buying another. So, you may get an investor
or buy out which may have been elusive otherwise.
Chapter 40: Vindictive Mind Set for Business
Men in India

When you do business in India you are supposed to be

corrupt, thief, expecting and accepting demands of
officers and favoring grey practices.

Favors are just entry points to let you do what you are
doing right and legally.

They are service fee for not finding wrongs in whatever

you are doing because if they start they will finish you.
You may have to do things in life that you may not have
done.

Some IAS and Judges are so much rich that after a while,
just plain money and car will not be good enough. You
may need to arrange a quality dinner with a Bollywood
starlet.

So, if you are an ideal type person your place is not here
in India. Please take a flight to US.

Here an Anna Hazare also starts demanding that at least

a minister should come to break his fast.

Now, there is a general rule. Large Organization, Large

Funds like corruption. They like corruption as corruption
creates monopolies. Corrupt system gives them unique
access to large Indian Markets.

Now since 2014 Sicilian type of mafia democracy has

taken over India. In this democracy, BJP is Ganga of
politics. A Naresh Agrawal is corrupt when he is in SP,
but he is a saint when he joins BJP. In this democracy
votes are being asked on Shamshan and Kabristan but
wrapped in the water towel of MOU.

It is a crime to be a rich business man here. It is divine if

you are salaried in large organization. If you are a CFO in
Adani Group Company you are respected but if you are
Adani himself, you are a hate element ☺

The whole mind set is pro poor, pro non-merit. The

environment promotes the culture that British Elite had
set. A Pro-Hindu Government has added the Aryan elite
tadka in that mindset.

Let me first give you an idea why it is that you will be an

elite for Indian poor and middle class is a little math that
I will show you right away

Say you were earning 2 lakhs per month as salary when

you decided to start up your business. This means
someone who has employed you, could afford 24 lakh Rs
per year for your salary. Now you can take that salary in
your start-up out of the profits you make. Assume it is .5
to 1 percent of your net revenue which means you are
now worth a businessman who has a revenue of at least
12 crores per annum.

So, the normal public will assume that you must be

working on an idea which will earn you more than 2
lakhs per month if you are working on that salary, hence
you must have 12 cr in hand i.e. one-year revenue. You
must be a big corrupt man or a true fool in India ☺

So, let me give how do I reach that number

Revenue – 100%

Expenses – 70%

Service Charges not in books – 10%

Executive pay – 2% (10% of profits)

Now put your net salary that you are taking before start-
up as soon as you start up you will need this money or
you will be perceived man of this much worth.

These kinds of numbers have only been possible after IT

revolution as those salaries created huge envy in IAS of
that time. The pay commission bridges that gap and all
other industries including the banking and insurance
must follow.

Times of India ran an article “A Crore is new lakh”. This

was in context of film stars getting their remuneration
but that is the reality of business.

However, Governments and Courts have become

skeptical of these crores.

Let us assume for a minute that you started doing these

numbers for a while and then a dispute hits your
company. you are not able to fulfill the promises of
money that you were supposed to fulfil. then you
become a SCAMMER.
As soon as you are not able to pay some taxes or default
in some promises Media, Politician and Courts will look
you up as a person to be set as an example.

This is a country where a prime minister after wiping out

years of savings of house ladies has the audacity to tell
people that “Dekho aaj in ameero ko maine tumharee
line me laga diya”. This is the mentality that if you had
cash or you were rich in any other way, you are a corrupt
man.

So, when you do business in this atmosphere you are

supposed to be corrupt, someone who has the means to
dodge the law, government and court orders. It means
you are either a dacoit or a mafia. You will find this
trend in Indian movies too. They are the reflections of
society. In 70’s and 80’s it was Amender (land lord) who
was the villain. Now it is always a business man who is a
villain.

There is no other way, people think, you can win in India.

It is public, government, bureaucracy, Judiciary – they all
think the same and need similar incentives to act.

No one will give you a chance in India, if you get caught

in net.

Large Business Men who are filing bankruptcy are being

asked for depositing money to keep out of jail.
Biggest business man is jailed without an FIR. All his
assets are being broken into pieces and being sold, while
there is no one asking for the money other than the SEBI
and Court…

As if all this was not ok they have just brought a law

(Summons and Attachments), where your property can
be seized at the summon stage itself, if you are not able
to come or you are supposed to be missing or out of
India. Which means a competitor of mine can get my
property seized if I am gone on a six week, no phone
Caribbean Cruise with family. By the time you come back
all your properties will be of Indian government. Can we
be more skeptical than that…?

Current Indian system will assume you to be a corrupt

accused, scammer of some sort as soon as you fail.

So here is the program or value proposition for the start

up

Function Startup (Businessman)

{

If Startup = Success

Then Businessman = Dacoit, Corrupt,

Looter;

If Startup = Failure Then

/* Comment because Businessman are Dacoit, Corrupt

& Looter*/

GoTo Jail(Businessman);

Ask your Wife/Mother/Lover. They will guide you if you

are still yearning to be a dreamer in India.
Chapter 41: Summary

The summary is very clear. The mindset of this nation is

formed by people who know that if they fail in power
grabbing then the opposition will send them to jail when
opposition comes in Power. Remember Amit Shah was
jailed by Congress and in return Congress is being sued
on various cases like National Herald

Theory is same

If You Fail Go To Jail

The same philosophy is valid for a Businessmen as well

i.e. if they fail, they go to Jail.

Do you deserve this after putting 20 years of study, hard

work and competition??

Decision is yours.
Appendix
Bibliography
Companies act 2013
Regulates all entities / companies that are formed to
conduct business. Several compliances are needed for
running a company and these get stricter as you go from an
entity like a firm to a public limited company.

Shop and Establishment Act

Every state implements this act slightly differently.
Department of Labor uses this act to regulates all shops
and establishments.

Section 138 of Negotiable Instrument Act

In specific cases of bounced cheques, if found guilty, the
defaulter can be punished with monetary penalty which
may be twice the amount of the cheque or imprisonment
for a term which may be extended to two years or both.

Summons and Attachments (Section 83)

If the court believes that the person is avoiding receiving
summons, they can order attachment of the property of the
summoned person.

Employees Provident Funds and Miscellaneous Provisions

Act, 1952

It relates to the payment of Provident contribution by

employer. The employer can be punished with imprisonment
for a term which may extend to three years but which cannot
be less than on year.

Glossary

Guru Ji A teacher or a guide

Sanghi Member of Sangh – an organization

promoting Hindu Ideology

Sanghayu No of years spent as a member of

Sangh

Ujala Light

Notebandi An exercise undertaken by Government

of India where notes of certain
denominations were banned suddenly
and became invalid overnight.

Neeti Ayog Government agency for devising high

level plans and policies that concern
the entire nation.

Patni An IT company

Lakh Currency equivalent to 100,000 Indian

Rupees
Cr Currency equivalent to 100 Lakhs of
Indian Rupees

Jan Dhan An account which is opened for poor

people of India by the Government of
India, primarily to facilitate direct
subsidy transfer. It led of tens of
millions of account openings – when
people had none before and primarily
lived on cash

Mudra Yojna A scheme to give loans to people so

entrepreneurship can be jump started,
jobs can be generated and skills can be
grown.

Mann ki Baat A program on radio where Indian

Prime Minister shares his thoughts.

Awaas Housing

Kunji Key to success

Laddakhi A native of Ladakh which is a part of

Jammu & Kashmir state in India. It’s
the northernmost part of India and
high up in mountains.

Roohaafza A drink, usually consumed in summer

Sevak Servant

Thug, Thagee Conman, con

Shamshaan A place where cremation is performed
for Hindus.

Kabristan Where Muslims or Christians are

buried after their funeral.

Tadka A culinary method to spice a dish

Abbreviations

IPC – Indian Penal Code

DGGI – Directorate General of GST Intelligence

DGST – Directorate General of Service Tax (now GST)

EOW – Economic Offences Wing

ED – Enforcement Directorate

Notes
a.

“Uge Hum Dhara Me Nai Jindagee Le

Andheri Nisha Ko Mitane Chale Hum

Uthe hum Jagat Me

Hua Naya Sawera”

Translation of above:

We are born into this world with a purpose to shine

and remove darkness. Our birth is a pre-cursor to a
new dawn.
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DREAMERS QUIT INDIA!

There are a thousand books in the market that tell you

– WHYs and HOWs of starting a new business BUT
there is only one book that will tell you: Why you
shouldn’t dream.

If you are a dreamer you must read this book to put

your dream through the litmus test of reality.