Thursday, October 5, 2017

Startup Valuation Is Not That Important

If this title got you excited, you could be a fan of television shows or funding events, where unlimited money seems to be on offer and deals closing like some everyday bargain. The real world could be different, though.

Once you have a prospective investor excited about your team, your merchandise, and your business, they will invariably ask about your company’s valuation? Many entrepreneurs stumble at this stage, losing the deal or the majority of their possession. They either give no answer or quote an excessive and indefensible number that convinces the investor that they don't understand fundamental economics. Kevin Harrington, from Shark Tank, says

"Nothing turns off an investor more than when an entrepreneur comes in with a ridiculous valuation"

Friday, September 22, 2017

GST Registration Can Expand Your Business

The current Goods and Services Tax regime in India allows threshold based exemption from registration. Any business supplying goods or services worth less than ₹20 lac (₹10 lac for North-Eastern States) within state is exempt from enrolling under GST. This also implies that tax on inter-state sale is applicable from ₹1. Once a person is registered under GST, all the provisions of the regime apply. This means increased compliance if an entity decides to register voluntarily. Despite this, experts recommend voluntary registration for any person or entity providing taxable goods or services. Why?

Monday, August 21, 2017

Why SWOT Is More Than Just A Bookish Concept

Strategic planning for a company calls for more than just an internal reflection. It is equally important to look outside at the operating environment that includes opponents, market potential and everything in between. Undertaking a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis helps you determine the ways to minimize the impact of weaknesses in your business while optimizing your strengths.

Thursday, August 17, 2017

Money Supply in China

The money supply statistics are important indicators of economic changes. They are used to assess the investment and general business environment in a country.

Get more than 13 years of actual quarterly money supply data for China and bonus GDP data! 

  • Quarterly M0, M1 and M2 supply in Chinese economy for last 13+ years
  • Common definitions
  • Quarterly Real and Nominal GDP figures for the same period
  • Yearly charts for all parameters
  • 100% accurate data - no proxies
  • Editable MS Excel file format
 For more details, write to us at products@eurionconstellation.com

Monday, July 10, 2017

Biggest Reason Why Startups Succeed

Success in any business is a result of a number of factors arranged together optimally. However, some of these factors form the foundation without which other would not function. Idealab's founder and CEO, Bill Gross shares his views on the key drivers of success and which one stands out.

Friday, June 23, 2017

New Thin Capitalization Norms For Foreign Investors In India

Foreign investors in India adopt thinly capitalized or highly leveraged business structures. Thin capitalization implies a high debt-to-equity ratio, primarily designed to lower tax liability. The effective Dividend Distribution Tax rate in India is 20.36%, whereas, interest paid by a subsidiary to its foreign parent is subject to a withholding tax @5-20%. The Indian subsidiary also gets tax benefit on the interest paid to the parent. The thinly capitalized structures lead to an erosion of tax base and shifts profits to foreign jurisdictions, usually with a lower tax rate.

The Government has taken up the matter on priority under its Base Erosion and Profit Shifting (BEPS) project. A big step towards plugging the loophole is the introduction of Section 94B in the Income-tax Act, 1961 (Act) vide the Finance Act, 2017. On the other hand, the General Anti-Avoidance Rules (GAAR) have already gone into effect from this financial year.

Thursday, June 15, 2017

Money Supply: Meaning, Types And Uses

Money supply or money stock is defined as the total or aggregate amount of currency and liquid instruments (cash, coins, checking & savings account balances, and any other liquefiable assets) existing in an economy at a given point in time.

The money supply statistics are important indicators of economic changes, such as

Monday, May 15, 2017

What To Do When Ransomware WannaCry or Peyta Attacks?

[The attacks are likely to recur. Bookmark this page or download the PDF version from http://www.eurionconstellation.com/free-downloads.html]

WannaCry ransomware requires the users to pay certain amount (~$300) in bitcoins to “unlock” the encrypted files and threatens to double the ransom in two days. If the demands are not met, the malware threatens to delete the files. Several users have already remitted thousands of dollars. While all fingers point at the U.S. security agency NSA, that debate is better left for later. This advisory post from Eurion Constellation is for individual users, as well as, home/office networks.

Friday, April 28, 2017

China Money Supply: 10 Year Data

Get authentic 10 year M0, M1, and M2 money supply data for China at 6% Discount!

Money supply statistics help in setting a Central Bank's policies, as well as, estimating the interest, inflation and economic cycles.


  • Quarterly M0, M1 and M2 supply in Chinese economy for last 10 years
  • Common definitions
  • Yearly charts for all parameters
  • 100% accurate data
  • Editable MS Excel file format
 For more details, write to us at products@eurionconstellation.com

Tuesday, April 18, 2017

We Have Changed Our Logo

Registered under Indian laws, Eurion Constellation a consultancy and research firm serving businesses in U.S., Europe and India.The research services have a global reach with focus on industry / economic research, financial modeling & analysis, equity research, valuations and report writing. The consulting wing in India focuses on the startup and MSME sectors. This includes business formation, corporate finance, loans, fund raising, planning, and strategy. For more details, please visit our website at www.eurionconstellation.com


Monday, April 17, 2017

Why Do You Need Market Research?

Before you pick up the telephone and start dialing arbitrary numbers or hurrying out there and informing individuals about what you would like to sell them, you must first determine who would like to be your audience. This is the segment of the total market from where you will get the major part of your sale. Having a detailed knowledge of the gaps and needs of your target market empowers you to sell the right merchandise or services to the right customers. And, this power comes from asking your customers what they want.

Tuesday, March 14, 2017

Break-Even Point And Increased Profitability

Your break-even point is probably one of the most effective pieces of info when controlling the stresses your company’s profitability. Let's start with an easy definition: break-even point is the amount of sales that you need to generate to cover your entire variable and fixed prices. That implies that the company hasn't made any profit, but it has also not lost any money.

Thursday, March 9, 2017

Why Cash Flow Is Not The Same As Income

Every business, regardless of whether it is some MNC giant or that small bakery towards the end of your street, needs to manage its cash flow properly in order to survive. Many small companies believe that the statement of cashflow conveys the same information as the income statement. The reality though, is different.

Friday, January 27, 2017

Estimating Working Capital Requirement

Now that you know why working capital is critically important to keep an organization running, the next step is to estimate how much you need. Hypothetically speaking, if all transactions were in cash and done with no time lag, the working capital requirement would be zero. 

To illustrate this point, let’s suppose a company buys goods for $100 from A and at the same instant sells the entire stock to B for $250. It makes a gain of $150 without holding any stock or even, needing cash because there is no time lag between the two transactions. Therefore, its working capital requirement is zero.

Tuesday, January 17, 2017

7 Times You Should Start A Business

[Firstly, warmest new year wishes to all our customers, readers, and the extended Eurion family]

In my experience as a business consultant, the single most important attribute of an entrepreneur is the aptitude - natural or developed. Aptitude is the biggest facilitator of success and everything else follows. As Guy Kawasaki puts it, "Entrepreneurship is not for everyone." But once you have that covered, the second most critical factor is the timing.