Mahesh Vaidya- Legal Advisor

  Need for formal documentation with expanding business opportunities As the business of an entrepreneur grows from the individual personal touch-based customer base to a customer base that is emerging from society, the new dimension of this relationship requires to have more formal communication between the parties to make the business deals successful.   To bring trust and bonding between the parties now the formal communication between the parties is needed required to be crystallized via a certain minimum business understanding between the parties in a form of written communication between the parties. Naturally, the question arises as to what type of “formal document” we are referring to here. As we have seen in the previous Articles when in the initial stages business was through personal relationships even dealing through oral communication between the parties was instrumental in closing the deals. So when the business grows with the change of base of “personal” to “Soc...

  General Customer base enlargement from “Personal “to “Social/Society” base & its implications As seen in the previous Articles I & II - any business entrepreneur starts his business by first dealing with his relatives and friends who in turn referred him to their relatives and friends resulting in a chain of actions and reactions A lot of factors play an important role in developing this customer base such as a)       Quality of the products /services provided   b)       Consistency in maintaining the quality of the product/services c)        Consistency in providing the required supply of the product/services in the market d)       Proper Sales & Marketing efforts. e)       Effective post-sale support for the product/services, where needed.   These efforts result in business entrepreneur entering into a new phase of business deve...

  Customer base enlargement- through the chain of references by Relatives & Friends As seen in the previous Article I- any business entrepreneur’s first customers are his relatives and friends who in turn refer him to their relatives and friends resulting in a chain of actions and reactions. Over the period these references and recommendations by relatives and friends directly as well indirectly result in the expansion of the customer base. This is simply because use and acceptance of the business entrepreneur’s products and services and the references and recommendations to friends and relatives through word of mouth. At this point, the business is entering into a stage where the customer base is expanding from the first set of an entrepreneur’s relatives and friends to the new customer base formed by referrals by such relatives and friends to their other relatives and friends and so on… This expanded customer base certainly needs to have more formal communication between the ...

Business Startup Initial Stage –Start of Journey Through Relatives & Friends Any Business Entrepreneur whether small or big – goes through various stages of evolution to achieve his/her pre-determined set of objectives and goals. Generally, every Entrepreneur starts ventures with the help of his close relatives and friends. These relatives and friends are his first customers. They are the first users and the first admirers/ critics who give their frank opinion about the price/ quality/ quantity of the products and services provided.  These admirations and criticisms provide a base for that Entrepreneur to improve the quality of his products/ services. In the initial stages of this business development, all his dealings with his prospective customers are always on a personal level and hence often such dealings are done on basis of oral communication between the parties. In all such cases, it is the personal bonding and trust between the parties that make the deals successful...