1.

Scoping out industry Market research results and test the scope of the
firm in the mag industry (Checked No magazine based on Himachal)
2. Size up the competition Study the competition by visiting stores and
localities where other magazines are being offered. Create list of magazines
in the area. Look at their articles, pictures and other offerings. Watch which
section of community they are appealing to. (Checked no other mag is
providing)
3. Second-guess yourself Finance and plan in detail.
4. Think about funding a lot do research whether you really need angel
funding or it can be started with borrowing money with easy resources.
5. Refine your concept
6. Pick a name ()
7. Get a grasp on marketing strategies Be clear who the customers are,
social networking sites
8. Do a little test run

What are you paying for?

Land price: Land will be required for the building, parking area and fencing. There
will be an open discussion room where there will be open discussion over different
issues. No separate cabins for employees but a separate server room. One small
kitchen, full sized bathroom and sleeping rooms will have to be made.
Computers, stationery, cameras, tablet pcs, smartphones, internet connection,
furniture, washing machine, kitchen utensils, bathroom accessories and cleaning
appliances would be required.
Building price: Walls will be made up of bricks as well as full sized glass window
panes. Single storey building will have a concrete slab. Electric wiring will be
concealed in walls and roof. Kitchen will have water pipes whereas, bathroom will
have cistern too. Sleeping rooms will have double glazed window panes.
Supplies: Electricity connection and water connection will be required. Internet
broadband will also be needed.
Server: A server will be required for storing the business information as well as
giving access to subscribers of magazine.
Salaries: Salaries and other incentives to be given to the employees.
Furniture: Tables, chairs, lockers, safes, kitchen furniture will be required.
How to acquire resources?

Establishing Company

Understanding partnership business

When one is starting a business, one may form a sole proprietorship when the
business is small. The problem with this kind of business is that it cannot grow
beyond a certain limit. This is because sole proprietorship will not be readily
sponsored by banks other sources of finance.
Also the amount of money that the sole proprietor can contribute the business
alone is not very high. Besides this, the sole proprietor has to take wise decisions in
running the business. If he is unable to do so, the business will not be very
successful and will not grow.
A sole proprietor might be an expert at marketing or might be technically strong.
But it is not likely that he will be strong in all the fields that are important for
making wise and successful business decisions.
For all the above reasons, one may to choose to form partnership firms, right from
the start, or later change their firm, to partnership firm. So, one may start a
partnership firm, with the objective of pulling people, so that, more capital is
generated, or making specifically skilled people partners, so that wise business
decisions are made.
Before a partnership is formed, a partnership deed should be prepared. This
partnership deed may be oral or in writing. However, it is wise to make sure that the
partnership deed is in writing so that future conflicts may be resolved.
To understand all the characteristics of the partnership consider the following:
Two or more members: At least two members are required to start a partnership.
But the number of member should not exceed 10 in case of banking business and
20 in case of other business. If the number of members exceeds this limit, then the
business is not called a partnership legally.
Partnership agreement
Whenever you think of starting a partnership business, there must be an agreement
between all partners. This agreement must contain:

The amount of initial capital contributed by the each partner

Profit or loss sharing ratio for each partner
Salary or commission payable to partners, if any
Duration of business, if any
Name and address of the partners and firm
Duties and powers of each partner
Nature and place of business
Any other terms and conditions to run the business

The partnership deed is usually not very hard to prepare through a trusted local
lawyer.
Lawful business
The partners should always carry on any kind of lawful business. To start a business
in smuggling, black marketing etc., is not termed as a partnership business in the
eye of law. Again doing social work is not termed as a partnership business.
Competence of Partners:
Since individuals join hands to become partners, it is necessary that they must be
competent to enter into a partnership. Thus, minors, lunatics and insolvent people
are not eligible to become partners. However, a minor can be admitted to the
benefits of partnership i.e. he or she can have a share in the profits only.
Sharing of profits:
The main objective of each partnership firm is making and share the profits the
business. In the absence of any agreement for profit sharing, it should be shared
equally among the partners.
Unlimited liability:
Just like a sole proprietorship, the liability of the partners in the partnership is also
unlimited. This means, if the assets of the firm are insufficient to meet liabilities,
the personal properties of the partners, if any, can be utilizes to meet the business
liabilities.
Voluntary Registration:
It is not compulsory that you register your partnership firm. However, if you dont
get your firm registered, you will be deprived of certain legal benefits; therefore it is
good to register. The effects of non-registration are:
Your firm cannot take any action in the court of law against any other parties for
settlement of claims.
In case there is any dispute among partners, it is not possible to settle the disputes
through court of law.
Note: Registration is voluntary in most states. However it would be best to check
up the rules of your state to be sure. In states like Maharashtra, the registration is
almost compulsory.
No separate legal existence:

Just like sole proprietorships, partnership firms also have no separate legal
existence from its owners. The partnership firm is just a name for the business as a
whole. If someone sues the firm, it is as good as someone suing all the partners.
Restriction on transfer of interest:
No partner can sell or transfer his share or part of partnership of the firm to anyone
without the consent of the other partners.
Continuity of business:
A partnership firm comes to an end at death, lunacy or bankruptcy of any partner.
Even otherwise, it can stop its business at the will of the partners. At any time, they
may take a decision to end their partnership.
Advantages of partnership:
Easy to form
Like sole proprietorships, partnership business can be formed easily without any
compulsory legal formalities. It is not necessary to get the firm registered. A simple
agreement or partnership deed, either oral or in writing, is sufficient to create a
partnership.
Availability of large resources:
Since two or more partners join hands to start a partnership business, it may be
possible to pool together more resources as compared to sole proprietorship. The
partners can contribute more capital, more effort and more time for the business.
Better decisions:
The partners are the owner of the business. Each of them has equal right to
participate in the management of the business. In case of any conflict, they can sit
together to solve any problem. Since all partners participate in the decision making
process, there is less scope for reckless and hasty decisions.
Flexibility in operations:
A partnership firm is a flexible organization. At any time, the partners can decide to
change the size or nature of the business or are of its production. There is no need
to follow any legal procedure. Only the consent of all the partners is required.
Sharing risks:
In a partnership firm all the partners share the business risks. For this the partners
are more encouraged to take risks and expand business further.
Protection of interest of each partner:

In a partnership firm, every partner has equal say in decision making and
management of the business. If any decision goes against the interest of any
partner, he can prevent the decision from being taken. In extreme cases, an
unsatisfied partner may withdraw from the business and can dissolve it. In such
extreme cases, the partnership deed is required. In absence of the partnership
deed, no legal protection is given to the partners.
Benefits of specialization:
Since all the partners are the owners of the business, they can actively participate
in every aspect of the business as per their specialization, knowledge and
experience.
Disadvantages of Partnership:
Unlimited liability:
All the partners are jointly liable for the debt of the firm. They can share the liability
among themselves or anyone can be asked to pay all the debts even from his
personal properties depending upon the arrangements made between the partners.
Uncertain life:
The partnership firm has no legal existence separate from its partners. It comes to
an end with death, incapacity, insolvency or the retirement of the partner. Further,
any unsatisfied or discomfort partner can also give notice at any time for the
dissolution of the partnership.
Lack of harmony:
In a partnership form, every partner has an equal right to participate in the
management. Also, every partner can place his or her opinion viewpoint before the
management regarding any matter at any time. Because of this there is sometimes
the possibility of the friction and discontent among the partners. Difference of
opinion may lead to the end of the partnership and the business.
Limited Capital:
Since the total number of partners cannot exceed 20, the capital to be raised is
always limited. It may not possible to start very large business in partnership form.
No transferability of share:
If you are a partner in any firm, you cannot transfer your share or part of the
company to outsiders, without the consent of the other partners. This creates
inconvenience for the partner who wants to leave the firm or sell part of his shares
to others.

Land buying
Once all the initial checks are made and the land to be bought is properly examined
and the negotiation of the price is done, there is process of actually buying the
land.
The first step of actually buying the land is to draft an agreement between the
parties involved in the transaction. An agreement is made to make sure that none
of the parties involved in the transaction change their mind and go back on what
has been decided about the transaction.
This agreement has to be made on Rupees 50 stamp paper.
The agreement should cover the following basic things:

Agreed cost of the land between seller and buyer

Advance amount given by the buyer
Time span in which the actual sale should take place
What procedure has to be adopted if any of the parties default on the
agreement
How the losses have to be recovered if any of the parties default
Particulars of the land

An experienced lawyer should carefully draft this agreement. Many a times,

because of an agreement that is not well drafted, it becomes one of the parties
to default and get away with it.
A long with this agreement, the agreed advance has to be paid by the buyer.
After the document is drafted and verified it has to be signed by both parties
and two witnesses.
The next step is to prepare a title deed. You could get the title deed. You could
get the title deed written by the government licensed Document writer.
Even lawyers can prepare the deed, but the document can only be computer
printed or typed, not handwritten. Only those who hold the scribe license can
prepare handwritten documents. Make sure all the details mentioned are
accurate.
After the agreement is prepared, the next step is registration.
The land is to be registered in a sub registrar office. If there is incorrectness in
the documents after registering, new documents with the correct details have to
be registered and depending on the incorrectness, the registration expenses will
have to be repeated.

Make sure that the title deed is registered within the time limit mentioned in the
agreement.
Along with the title deed, the other documents that are required for registration
are:

Original title deed

Previous deeds
Property/House tax receipts

Torrance Plan (Optional) etc. plus two witnesses are needed for registering the
property.
What is a Torrance plan?
Torrance plan is a detailed plan of the property prepared by the licensed
surveyor that will have accurate details of the measurements including width,
length, borders etc. This plan is needed in some specific areas.
For land costing more than 5 lakhs, the seller should either submit his PAN card
or form no 16 for registration.
The Expenses Involved
During registration are Stamp Duty, Registration fees, Document writers/Lawyer
fees etc.
The stamp duty will depend on the cost of the property and varies from location
to location. 2% will be charged as the registration fees. Document writers fees
will also depend on the cost of property and varies with individuals. There is a
percentage prescribed by the government as Document writers fee and they
cannot charge more than the prescribed limit.
The actual process of registration at the sub registrar office:
1. Take all the documents mentioned above.
2. Submit the document along with the input form at the token window and
get the token number.
3. Wait till the token number is announced.
4. On token number being announced all parties to the document must
present themselves before the sub-registrar to admit execution of the
document, photograph, thumb impression, and signature taken on
additional sheet of paper in presence of sub-registrar.
5. Pay the required registration fees and computer service charges in cash
as per the receipt
6. The document will be returned within 30 minutes of getting receipt

How to choose the best location to buy land?

Ask the following questions:

What is the total cost of acquiring the property?

Does the site provide as much space as you need?
If customers visit your place of business Is adequate, convenient and
safe parking available? Is public transportation available?
Is the location likely to develop drop in or impulse consumer traffic?
Is fire protection close by?
Are basic utilities (water, electricity, sewer, gas etc.) available at
reasonable cost?

Things you must check before you buy land?

The most important thing to do before you buy a particular piece of land you are
interested in is to see whether the land can be sold by the person who is selling
it.
1. Check the title Deed/ Certificate of title
What is a title deed?
A legal document proving a persons right to property. An advocate prepares
a title deed after studying and scrutinizing the property and verifying that all
is in order.
So as a buyer what you need to do is ask the owner of the land you wish to
purchase for the title deed and review it properly. Do not accept the Xerox
copy of the deed. Ask for the original Title Deed. Sometimes the seller
might have taken the loan and given in the original deed.
You need to make sure the title deed that the land is in the name of the
seller. Also you need to verify that he has the full right to sell the land and
that he is the sole owner of the land and no one else is. It would be wise to
get the title deed reviewed by a trusted lawyer just to make sure that there
are no loop holes.
As a buyer you may also ask for the previous title deeds of the land and get
these verified too by a lawyer.
2. Ask for the Encumbrance Certificate
The next step is to demand an Encumbrance Certificate. This basically is a
certificate that says that the land is not under any sort of legal dispute. The
encumbrance certificate can be obtained from the sub registrars office
where the deed for the land has been registered. The encumbrance
certificate for past 13 years should be taken and verified. You could even ask
for the encumbrance certificate of the last 30 years for more clarification.
In the case of Pledged land
Some people may have pledged their land previously for taking loan. In this
case, it would be wise to ensure that all the loan payments have been made

and that no amount is due. Ask the seller to produce the Release
Certificate from the bank that is necessary to release all the debts over the
land legally.
Measure the land
Get a recognized surveyor to measure the land and see that the dimensions,
area, borders etc. are accurate as stated by the seller.
If there is more than one owner: If there is more than one owner, it would be
wise to get a release certificate from everyone involved before going ahead
with the process.

Firm: Inventus Capital

Our Process
By design we are a small team with a flat structure and consensus decision making
style. Our process is thorough, but focused and expedient. We formed Inventus
because we see many great companies that dont need the typically over-sized
Series A rounds other firms require for their model to work. We want the founders
model to work. And our experience is that too much money, too early, works directly
against the founders in terms of ownership, focus, creativity, and ultimate success.
Innovative ideas and insights into big markets are important, but the talent and
drive of the founding team is paramount. So we like to get to know you at the
earliest stages, and collaborate as your work through the early seed phase prior to
justifying a seed-prime or Series A round where we are most likely to come in. We
strive to keep our process and your interactions with us simple and constructive:
Step 1:
Submit an overview of your business to us. It helps speed up the process if you are
referred to us. We will review your business idea and let you know if it could be a
potential fit.
Step 2:
If there is interest, we will request an initial, in-person meeting, which typically lasts
about an hour. We have offices in Bangalore and Menlo Park. The presentation
should be short and succinct. A short presentation is fine as we want to focus on
your team and vision for the company. During this time we want to learn about:

The leadership of the company

Your product and preferably a demonstration
Your target customer and validation
The problem you solve for your customer
How you plan to reach your customers

Competition and industry landscape

Market opportunity
Your capital requirements
Product and Business milestones with capital being raised

After the first meeting, we will provide feedback if there is a potential fit with our
strategy and philosophy. If there is a fit, well spend more time together to
understand your business.
Step 3
You will then be invited to present to all the partners via Video Conferencing. We
make decisions unanimously within our partnership.
Step 4
Lastly, if there is mutual interest in moving forward we will discuss the specific
terms of how we might work together in building your company.
The whole process should take anywhere from 3-6 weeks.