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Startup Checklist

Founder’s Startup Checklist: 35 Moves That Keep Startups on Track...

A

An accelerator is a short-term program that helps early-stage startups grow faster through mentorship, training, and exposure to investors.

Accelerators usually last 3–6 months and support selected startups by offering expert guidance, business development sessions, funding access, and investor connections. In return, they often take a small equity stake in the company. .

For example, "SmartFarm Nepal" joined a 3-month accelerator in Kathmandu. During the program, they received hands-on mentorship, improved their product strategy, and pitched to investors on Demo Day. This helped them raise their first round of funding and grow faster.

Accounts payable refers to the money a business owes to its suppliers or vendors for goods and services received on credit.

It is recorded as a liability on the balance sheet because the business is obligated to pay this amount in the near future. Managing accounts payable well ensures you maintain good relationships with suppliers and avoid late payment penalties.

If “TechGuru Nepal” buys laptops worth Rs. 50,000 from a supplier with a 30-day credit term, that amount is recorded as accounts payable. It shows up as a liability until the payment is made.

Accounts receivable is the money a business expects to receive from customers for products or services delivered on credit.

It’s recorded as an asset on the balance sheet because it's money owed to the business. Managing receivables well helps ensure healthy cash flow and reduces the risk of bad debts.

If “EduTech Nepal” provides training services worth Rs. 20,000 to a client with a 15-day credit term, that amount is recorded as accounts receivable until the client pays.

Advance tax is the income tax a business or individual pays in installments before the actual year-end tax filing.

It is paid in advance based on estimated income if the expected tax liability exceeds a certain threshold. In Nepal, businesses must calculate and pay advance tax in quarterly installments to avoid interest and penalties. .

If “Eco Bags Nepal” expects to earn Rs. 12 lakhs in a fiscal year, it estimates tax of Rs. 1.2 lakhs and pays it in four parts throughout the year as advance tax.

An angel investor is a wealthy individual who invests personal money in early-stage startups in exchange for equity.

Angel investors typically come in during the early phases when startups need capital but lack access to banks or venture capital. Beyond funding, they may also offer mentorship and industry connections. .

When “RideNow Nepal” launched its bike-sharing app, a retired tech executive invested Rs. 10 lakhs as an angel investor and received 10% ownership in return.

The Articles of Association (AoA) is a legal document that defines a company’s internal rules, management structure, and decision-making processes.

It outlines how directors are appointed, how shares are managed, how meetings are conducted, and other internal protocols. Every private limited company in Nepal must submit its AoA to the Office of the Company Registrar during registration. .

When “FoodExpress Nepal” registered as a private limited company, it submitted an AoA stating how decisions would be made, how directors could be removed, and how shares could be transferred.

An asset is anything valuable owned by a business that can generate income or provide future benefits.

Assets can be physical (like cash, equipment, or inventory) or non-physical (like trademarks or software). They are recorded on the balance sheet and categorized as current or non-current based on how soon they’ll be used or converted to cash. .

For “GreenMart Nepal,” a delivery van, laptops, and its mobile app are all considered assets that help run the business.

B

A balance sheet is a financial statement that shows what a company owns (assets), owes (liabilities), and what remains for owners (equity) at a specific point in time.

It follows the formula: Assets = Liabilities + Equity. The balance sheet helps founders understand their company’s financial position — what resources they have and how they are financed. .

“TechNepal Pvt. Ltd.” prepares a balance sheet at year-end showing Rs. 20 lakhs in assets, Rs. 8 lakhs in liabilities, and Rs. 12 lakhs in equity.

Bootstrapping is when a founder builds and grows a startup using personal savings or revenue, without relying on outside funding.

It allows full control over the business but requires careful spending and creativity. Many successful startups begin by bootstrapping before seeking investment. .

“SkillHub Nepal” started by offering online courses funded entirely by the founder’s savings and reinvested profits — a classic example of bootstrapping.

Branding is the process of creating a unique identity for a business that makes it recognizable and memorable to customers.

It includes your name, logo, colors, tone, and the emotional impression your business leaves. Strong branding builds trust, loyalty, and sets you apart from competitors. .

“Pahilo Coffee” uses earthy colors, a Nepali tagline, and consistent packaging — all part of its branding that makes it instantly recognizable.

A bridge round is a short-term funding round raised to cover a startup’s expenses until the next larger round of investment.

It acts as a financial "bridge" to help the startup maintain operations, hit growth targets, or prepare for a bigger round like Series A. It’s usually raised from existing investors or angel backers. .

When “QuickParcel Nepal” needed funds to finish product development before raising Series A, it secured Rs. 15 lakhs in a bridge round from early investors.

Burn rate is the rate at which a startup spends its cash reserves each month to cover operating expenses.

It shows how fast a company is using up its funds before becoming profitable. A high burn rate shortens the runway — the time the business can survive without new income or funding. .

If “NepTech Solutions” spends Rs. 4 lakhs monthly and earns Rs. 1 lakh, its burn rate is Rs. 3 lakhs per month.

A business model explains how a company creates, delivers, and captures value — in short, how it makes money.

It defines who your customers are, what you offer them, how you deliver it, and how you earn from it. Choosing the right business model is key to startup sustainability and growth. .

For “GreenMart Nepal,” a delivery van, laptops, and its mobile app are all considered assets that help run the business.

The Business Model Canvas is a one-page visual tool that outlines the key elements of a business model.

It includes 9 blocks: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It's widely used by startups to brainstorm, design, and refine their business model. .

“Craftly Nepal” used the Business Model Canvas to map out how they deliver handmade products to international buyers and partner with rural artisans.

Business registration is the legal process of officially recording a business with the government to operate lawfully.

In Nepal, this includes choosing a business entity type, reserving a name, and submitting required documents to the Office of the Company Registrar (OCR). It's the first legal step to starting a business. .

“Everest Organics” completed its business registration as a private limited company at OCR to operate legally and issue invoices.

C

A balance sheet is a financial statement that shows what a company owns (assets), owes (liabilities), and what remains for owners (equity) at a specific point in time.

It follows the formula: Assets = Liabilities + Equity. The balance sheet helps founders understand their company’s financial position — what resources they have and how they are financed. .

“TechNepal Pvt. Ltd.” prepares a balance sheet at year-end showing Rs. 20 lakhs in assets, Rs. 8 lakhs in liabilities, and Rs. 12 lakhs in equity.

Bootstrapping is when a founder builds and grows a startup using personal savings or revenue, without relying on outside funding.

It allows full control over the business but requires careful spending and creativity. Many successful startups begin by bootstrapping before seeking investment. .

“SkillHub Nepal” started by offering online courses funded entirely by the founder’s savings and reinvested profits — a classic example of bootstrapping.

Branding is the process of creating a unique identity for a business that makes it recognizable and memorable to customers.

It includes your name, logo, colors, tone, and the emotional impression your business leaves. Strong branding builds trust, loyalty, and sets you apart from competitors. .

“Pahilo Coffee” uses earthy colors, a Nepali tagline, and consistent packaging — all part of its branding that makes it instantly recognizable.

A bridge round is a short-term funding round raised to cover a startup’s expenses until the next larger round of investment.

It acts as a financial "bridge" to help the startup maintain operations, hit growth targets, or prepare for a bigger round like Series A. It’s usually raised from existing investors or angel backers. .

When “QuickParcel Nepal” needed funds to finish product development before raising Series A, it secured Rs. 15 lakhs in a bridge round from early investors.

Burn rate is the rate at which a startup spends its cash reserves each month to cover operating expenses.

It shows how fast a company is using up its funds before becoming profitable. A high burn rate shortens the runway — the time the business can survive without new income or funding. .

If “NepTech Solutions” spends Rs. 4 lakhs monthly and earns Rs. 1 lakh, its burn rate is Rs. 3 lakhs per month.

A business model explains how a company creates, delivers, and captures value — in short, how it makes money.

It defines who your customers are, what you offer them, how you deliver it, and how you earn from it. Choosing the right business model is key to startup sustainability and growth. .

For “GreenMart Nepal,” a delivery van, laptops, and its mobile app are all considered assets that help run the business.

The Business Model Canvas is a one-page visual tool that outlines the key elements of a business model.

It includes 9 blocks: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It's widely used by startups to brainstorm, design, and refine their business model. .

“Craftly Nepal” used the Business Model Canvas to map out how they deliver handmade products to international buyers and partner with rural artisans.

Business registration is the legal process of officially recording a business with the government to operate lawfully.

In Nepal, this includes choosing a business entity type, reserving a name, and submitting required documents to the Office of the Company Registrar (OCR). It's the first legal step to starting a business. .

“Everest Organics” completed its business registration as a private limited company at OCR to operate legally and issue invoices.

Business registration is the legal process of officially recording a business with the government to operate lawfully.

In Nepal, this includes choosing a business entity type, reserving a name, and submitting required documents to the Office of the Company Registrar (OCR). It's the first legal step to starting a business. .

“Everest Organics” completed its business registration as a private limited company at OCR to operate legally and issue invoices.

A customer persona is a fictional profile that represents your ideal customer based on real data and research.

It includes details like age, occupation, goals, pain points, and buying behavior. Startups use personas to understand their audience and tailor marketing, product, and sales strategies effectively. .

“FitZone Nepal” created a customer persona named “Ramesh, 28, office worker, wants to stay fit but has no time for gym” to guide its marketing for home workout plans.

Customs duty is a tax imposed on goods imported into a country, based on their type, value, and origin.

Businesses importing products into Nepal must pay customs duty at the border. The rate varies depending on the product category, and it affects total landed cost and pricing. .

When “SmartGadgets Nepal” imported mobile accessories from China, it paid 15% customs duty based on the declared value of the goods.

D

Depreciation is the gradual reduction in the value of a fixed asset over time due to wear, usage, or obsolescence.

It allows businesses to spread the cost of expensive assets (like machines or vehicles) across multiple years in their financial statements. This helps reflect true profit and asset value over time. .

“PrintX Nepal” bought a printer for Rs. 1 lakh and records Rs. 20,000 as annual depreciation over 5 years.

A director is an individual appointed to manage and oversee the affairs of a company on behalf of its shareholders.

Directors make key decisions, ensure legal compliance, and act in the company’s best interest. In a private limited company, at least one director is legally required in Nepal. .

“CleanTech Nepal” has three directors who jointly oversee finance, operations, and partnerships.

Due diligence is a detailed investigation or review of a company’s legal, financial, and operational health before an investment or acquisition.

Investors use due diligence to assess risks and verify the accuracy of information provided by the startup before making funding decisions. .

Before investing in “AgroLink Nepal,” the investor conducted due diligence to check tax filings, legal documents, and financial statements.

E

E-TDS is the online process of filing tax deducted at source (TDS) returns with the Inland Revenue Department (IRD) of Nepal.

Businesses deduct TDS on payments like rent, salaries, or services, and must file it electronically each month using the IRD portal. It ensures compliance and proper credit to the payee. .

“DesignPro Nepal” deducted TDS from a consultant’s payment and submitted the return through the IRD’s E-TDS system before the deadline.

An email campaign is a series of marketing or informational emails sent to a targeted list of recipients to promote a product, service, or message.

Startups use email campaigns to build relationships, share updates, generate leads, or drive sales. These campaigns are often automated and personalized based on user behavior or preferences. .

“LearnNepal” ran an email campaign to promote its new online course — sending a welcome email, followed by reminders and a special discount offer.

Equity represents the ownership stake a founder or investor holds in a company, usually expressed as a percentage of total shares.

In startups, equity is often shared among founders, investors, and employees. It reflects how much of the company each party owns and how profits (or losses) are divided. .

In “CodeHive Nepal,” the founder owns 70% equity, while the remaining 30% is held by early investors.

Equity dilution happens when a company issues new shares, reducing the ownership percentage of existing shareholders.

It’s common during fundraising — as new investors receive shares, founders and early shareholders own a smaller piece of the company, even though the overall value may increase. .

After raising funds, “RideX Nepal” issued new shares to investors, causing the founder’s ownership to dilute from 80% to 60%.

Excise duty is a tax imposed on the production, sale, or consumption of specific goods and services within a country.

In Nepal, excise duty applies to items like alcohol, tobacco, fuel, and some services. Businesses must obtain an excise license and comply with reporting and payment requirements. .

“Everest Distillery” pays excise duty on every liter of liquor it produces, as regulated by Nepal’s Excise Duty Act.

An exit strategy is a planned approach for founders or investors to sell their stake in a startup and realize a return on investment.

Common exit strategies include acquisition by another company, going public (IPO), or selling shares to new investors. It helps investors understand how they might eventually profit from the startup. .

“FoodBox Nepal” planned an exit strategy where it would be acquired by a larger food delivery company after hitting growth milestones.

An expense is the cost a business incurs in its operations to generate revenue.

Expenses include rent, salaries, utilities, marketing, and other day-to-day costs. They are recorded in the income statement and directly affect a company’s profit. .

“TechTrail Nepal” paid Rs. 25,000 for office rent and Rs. 10,000 for internet — both recorded as monthly business expenses.

F

A financial forecast is an estimate of a business’s future income, expenses, and cash flow based on current trends and assumptions.

Startups use forecasts to plan ahead, make informed decisions, and present projections to investors. It usually covers revenue, costs, profits, and funding needs over the next 6–36 months. .

“AgroRise Nepal” prepared a 12-month financial forecast showing projected sales of Rs. 15 lakhs and expected operating expenses of Rs. 10 lakhs.

Financial statements are formal records that summarize a company’s financial activities and performance over a period.

The main types include the Income Statement, Balance Sheet, and Cash Flow Statement. These help founders, investors, and regulators assess the health of a business. .

“EcoCart Nepal” shared its annual financial statements with potential investors, showing its revenue, profit, assets, and liabilities.

A fiscal year is a 12-month period used by governments and businesses for accounting and tax reporting purposes.

In Nepal, the fiscal year starts on Shrawan 1 and ends on Ashad end (mid-July). All financial records, filings, and audits are prepared based on this cycle. .

“SmartLog Nepal” closed its books at the end of Ashad 2081 to prepare reports for the fiscal year 2080/81.

A founder is a person who starts a business or startup by turning an idea into a functioning venture.

Founders take the initial risk, make key decisions, and often invest their own time and money. They may later bring in co-founders, partners, or investors as the business grows. .

“ShreeTech Nepal” was started by Anisha Gurung, who built the prototype, hired the first team, and became the company’s founder.

A founders' agreement is a legal document that outlines the roles, responsibilities, equity split, and decision-making rules between startup co-founders.

It helps prevent conflicts by clearly defining who owns what, how decisions are made, and what happens if someone leaves the company. It’s crucial in the early stages of a startup. .

When starting “SkillBridge Nepal,” the co-founders signed a founders' agreement detailing their 60/40 equity split and how major business decisions would be made.

G

The general ledger is a complete record of all financial transactions of a business, organized into accounts.

It contains entries for income, expenses, assets, liabilities, and equity — and forms the foundation for preparing financial statements. Every journal entry eventually gets posted to the general ledger. .

“BrightBooks Nepal” uses accounting software where every sale, expense, and payment is automatically recorded in the general ledger for accurate reporting.

Growth hacking is a marketing strategy focused on rapid and cost-effective growth, often using creative and data-driven techniques.

Popular among startups with limited budgets, growth hacking uses experiments, viral loops, referral systems, and product tweaks to acquire users quickly. .

“TaskMate Nepal” added a referral feature where users got rewards for inviting friends — a growth hacking tactic that boosted signups by 40% in one month.

I

An income statement shows a company’s revenue, expenses, and profit or loss over a specific period.

Also known as a profit and loss statement (P&L), it helps founders understand how much money the business made or lost during a month, quarter, or year. .

“Webly Nepal” reviewed its income statement for the last quarter, which showed Rs. 5 lakhs in revenue and Rs. 3.5 lakhs in expenses — resulting in Rs. 1.5 lakhs profit.

An incubator is a program that supports early-stage startups by providing resources like mentorship, office space, and training — usually in exchange for little or no equity.

Unlike accelerators, incubators focus on idea-stage startups and provide long-term support to help them build a solid foundation before seeking investment. .

“FarmTech Nepal” joined a local incubator that provided free workspace, legal guidance, and business coaching for its agriculture-tech idea.

Influencer marketing is a strategy where brands collaborate with individuals who have a strong online following to promote their products or services.

Startups use influencers on platforms like Instagram, TikTok, or YouTube to increase visibility, build trust, and reach specific target audiences more effectively. .

“HerbalGlow Nepal” partnered with a popular beauty vlogger to promote its skincare range, resulting in a surge in online orders.

Input VAT is the value-added tax a business pays on purchases of goods or services used for its operations.

Registered businesses in Nepal can claim input VAT as a credit against their output VAT (tax collected on sales), reducing their net tax payable. .

“PrintPro Nepal” bought printing paper worth Rs. 10,000 and paid Rs. 1,300 as VAT — recorded as input VAT and adjusted during monthly VAT filing.

An invoice is an official document a seller issues to a buyer requesting payment for goods or services provided.

It includes details like the seller and buyer's names, item descriptions, quantity, price, total amount, and applicable taxes. In Nepal, VAT-registered businesses must issue VAT-compliant invoices. .

“ByteSoft Nepal” sent an invoice to a client for Rs. 50,000 for software development services, including PAN and VAT details.

The Inland Revenue Department (IRD) is the government body in Nepal responsible for collecting and regulating taxes.

Businesses must register with the IRD to obtain PAN/VAT, file taxes, and comply with income tax, TDS, VAT, and other fiscal regulations. Most filings and payments are done through the IRD portal. .

“LogistiX Nepal” registered at the IRD to obtain a PAN number and file monthly VAT and TDS returns online.

J

A journal entry is a formal record of a business transaction in the accounting system, showing which accounts are debited and credited.

Every financial transaction—like sales, purchases, or expenses—is first recorded as a journal entry with date, description, amount, and account heads. It’s the foundation of double-entry bookkeeping. .

When “NepFoods Pvt. Ltd.” paid Rs. 10,000 in rent, it recorded a journal entry: Rent Expense (Dr) and Cash (Cr).

L

A landing page is a standalone web page designed for a specific marketing campaign where visitors land after clicking a link or ad.

Its goal is to drive a single action — like signups, purchases, or downloads. Unlike homepages, landing pages are focused, minimal, and conversion-oriented. .

“SkillSewa Nepal” created a landing page offering a free eBook in exchange for visitors’ email addresses to grow their mailing list.

Lead generation is the process of attracting and capturing potential customers (leads) who are interested in your product or service.

Startups use strategies like content marketing, ads, landing pages, and free offers to collect contact details of prospects for future sales outreach. .

“TravelYatra Nepal” ran a Facebook ad offering a free travel checklist — users who signed up became leads for future tour promotions.

Legal compliance means following all laws, rules, and regulations relevant to running a business.

In Nepal, this includes business registration, PAN/VAT filings, labor laws, tax payments, and maintaining proper documentation. Non-compliance can lead to penalties or legal action. .

“FreshCart Nepal” ensures legal compliance by renewing its business license, filing monthly VAT, and maintaining employee contracts.

A loss occurs when a business’s expenses exceed its revenue during a specific period.

It’s recorded in the income statement and signals that the company spent more than it earned. Consistent losses can harm financial health if not addressed. .

“EventPro Nepal” earned Rs. 80,000 in revenue but spent Rs. 1,20,000 on operations — resulting in a Rs. 40,000 loss for the month.

M

Marketing management involves planning, executing, and analyzing strategies to promote a business and attract customers.

It includes setting goals, understanding customer needs, managing campaigns, analyzing performance, and adjusting strategies to drive growth and sales. .

“StyleHut Nepal” uses marketing management to run seasonal campaigns, track sales data, and adjust offers based on customer behavior.

The Memorandum of Association (MoA) is a legal document that defines a company’s purpose, scope, and relationship with the outside world.

It outlines the business objectives, registered office, company name, capital structure, and the powers of the company. It's required during company registration in Nepal. .

When registering “TechNova Nepal,” the founders submitted an MoA stating their goal was to develop and sell educational software solutions.

A Minimum Viable Product (MVP) is the simplest version of a product that has just enough features to attract early users and gather feedback.

Startups build MVPs to test core ideas quickly without spending too much time or money. It helps validate demand before full-scale development. .

“RentEasy Nepal” launched an MVP with just a website listing rental rooms — no booking system — to see if users were interested.

N

An NDA is a legal contract that prevents one or both parties from sharing confidential information with others.

Startups use NDAs when discussing ideas, strategies, or business data with employees, freelancers, or potential investors to protect sensitive information. .

Before sharing its business plan, “FinBridge Nepal” asked a developer to sign an NDA to keep the app idea confidential.

O

Organic reach is the number of people who see your content online without paid promotion.

It happens naturally when users discover your posts through their feed, shares, or searches. Building organic reach takes time but helps build trust and brand loyalty. .

“TravelTales Nepal” posted travel tips on Instagram that got shared widely, reaching 15,000 people without spending on ads — all through organic reach.

The Office of Company Registrar (OCR) is the government body in Nepal responsible for company registration and maintaining corporate records.

All companies must register with the OCR to legally operate. It handles tasks like approving names, issuing registration certificates, and recording company changes. .

“UrbanGro Nepal” submitted its MoA, AoA, and other documents to OCR to officially register as a private limited company.

Output VAT is the value-added tax a business collects from customers when selling goods or services.

Registered businesses must charge VAT on taxable sales and report it to the IRD. This amount is later adjusted against input VAT to determine the net tax payable. .

“EcoShop Nepal” sold products worth Rs. 50,000 and charged 13% output VAT — Rs. 6,500 — which it reported in its monthly VAT return.

P

Paid ads are online advertisements businesses pay for to promote their products or services across platforms like Google, Facebook, or Instagram.

They allow startups to target specific audiences and get faster visibility. Paid ads are usually measured by impressions, clicks, conversions, or return on ad spend (ROAS). .

“SkillCraft Nepal” ran paid ads on Facebook targeting students in Kathmandu, promoting its online design course.

PAN is a unique identification number issued by Nepal’s Inland Revenue Department (IRD) for tax purposes.

All businesses in Nepal must register for a PAN to legally operate, issue invoices, and file taxes. Individuals earning income from business or freelance work also need a PAN. .

“CodeNest Nepal” registered for a PAN before launching its services so it could bill clients and submit tax returns legally.

A partnership is a type of business structure where two or more individuals share ownership, profits, and responsibilities.

In Nepal, a partnership must be registered at the concerned government office. Each partner contributes to the business and is jointly liable for debts and obligations. .

“CafeBite Nepal” was started as a partnership between two friends — one handled operations while the other managed finances and marketing.

Payables are amounts a business owes to suppliers or service providers for purchases made on credit.

They are recorded as liabilities on the balance sheet. Properly managing payables ensures timely payments and maintains good vendor relationships. .

“PrintNepal” bought paper supplies worth Rs. 30,000 on credit — this amount is listed under accounts payable until it’s paid.

Payroll refers to the process of calculating and distributing salaries, wages, bonuses, and taxes to employees.

It includes tracking work hours, applying deductions (like TDS and SST in Nepal), and ensuring timely payment. Payroll also involves maintaining records and filing necessary compliance reports. .

“CodeBase Nepal” processes payroll monthly, calculating gross salary, deducting TDS, and transferring the net pay to employees’ bank accounts.

Performance management is the process of evaluating and improving employee effectiveness to meet business goals.

It involves setting clear objectives, giving feedback, conducting performance reviews, and recognizing achievements. In startups, it helps align individual efforts with company growth. .

“LearnTech Nepal” uses a quarterly performance review system to assess team productivity and set development goals for each employee.

A pitch deck is a brief presentation used by startups to showcase their business idea, traction, and funding needs to potential investors.

It usually includes slides on the problem, solution, market size, business model, team, financials, and funding ask. A good pitch deck tells a clear and compelling story. .

“FarmLink Nepal” created a 10-slide pitch deck to present its agri-tech solution and seek Rs. 20 lakhs in seed funding.

A pivot is a significant change in a startup’s product, strategy, or business model based on user feedback or market demand.

Startups pivot when their original plan isn’t working — they may change their target customer, pricing model, or even the core product to find a better fit. .

“EduTrail Nepal” pivoted from live tutoring to recorded courses after realizing students preferred flexible learning options.

Post-money valuation is the value of a startup after new investment has been added.

It’s calculated by adding the amount of the investment to the company’s pre-money valuation. This figure is used to determine investor ownership after the funding round. .

If “RideEasy Nepal” had a pre-money valuation of Rs. 1 crore and raised Rs. 20 lakhs, its post-money valuation became Rs. 1.2 crore.

Pre-money valuation is the estimated value of a startup before receiving new investment or funding.

It helps determine how much equity the investor will get in exchange for their money. Founders often negotiate this figure before closing a funding round. .

“HealthBox Nepal” was valued at Rs. 80 lakhs pre-money. When it raised Rs. 20 lakhs from an investor, the investor received 20% ownership.

A private limited company is a registered business entity with limited liability, owned by a small group of shareholders.

In Nepal, it must have at least one director and one shareholder. Shares cannot be publicly traded. It’s the most common structure for startups due to legal protection and investor appeal. .

“FreshGro Nepal” registered as a private limited company to protect the founders’ personal assets and raise future investment.

Product-market fit is the stage where a startup’s product satisfies strong market demand and gains consistent traction.

It means customers truly need and use the product — and are willing to pay for it. Achieving product-market fit is a major milestone before scaling. .

“TaskNow Nepal” reached product-market fit when users started recommending the app to others and monthly signups grew without paid ads.

Profit is the financial gain a business makes when its revenue exceeds its total expenses over a period.

It’s a key indicator of a startup’s financial health. Profit can be reinvested, distributed among owners, or saved for future growth. .

“CraftNepal” earned Rs. 2 lakhs in revenue and spent Rs. 1.4 lakhs on costs — resulting in a profit of Rs. 60,000 for the month.

R

Receivables are amounts a business is owed by customers for goods or services delivered on credit.

They are recorded as assets on the balance sheet. Managing receivables well helps maintain cash flow and ensures timely payments. .

“DigitalWave Nepal” completed a Rs. 25,000 project for a client who agreed to pay in 15 days — this amount is recorded as receivables.

Retargeting is an online advertising strategy that shows ads to people who have previously visited your website or interacted with your brand.

It helps bring back interested visitors and increase conversions by reminding them of your product or offer across platforms like Facebook or Google. .

After visiting “FitShop Nepal’s” website but not buying, users started seeing retargeting ads on Instagram featuring the same product.

Return filing is the process of submitting tax-related documents to the government within specified deadlines.

In Nepal, businesses must regularly file VAT returns, income tax returns, and TDS statements through the IRD portal. Timely filing avoids penalties and ensures compliance. .

“ByteFlow Nepal” files its monthly VAT and TDS returns online before the 25th of every month to stay compliant.

ROI is a financial metric that measures the profitability of an investment compared to its cost.

It’s usually expressed as a percentage and helps assess whether an investment is yielding positive returns. Higher ROI means better efficiency. .

“SkillLaunch Nepal” spent Rs. 10,000 on ads and generated Rs. 25,000 in sales — resulting in a 150% ROI.

Revenue is the total income a business earns from selling its goods or services before deducting any expenses.

It is often called “top line” because it appears at the top of the income statement. Revenue is a key indicator of business performance and growth. .

“EduSewa Nepal” generated Rs. 5 lakhs in revenue last month from course subscriptions and corporate training.

S

A SAFE is a funding agreement where investors give money to a startup now in exchange for equity at a future funding round.

It’s simpler than a convertible note and doesn’t have interest or a maturity date. SAFEs convert into shares when the startup raises its next priced round. .

“AgroSmart Nepal” raised Rs. 10 lakhs using a SAFE, which will convert into equity during its next seed round at a discounted valuation.

Scalability is a startup’s ability to grow its revenue without a matching increase in costs.

A scalable business can handle more customers, orders, or users with minimal effort or resources. It’s a key factor investors look for in startups. .

“CodeHive Nepal” built a subscription-based platform that serves thousands of users without hiring more staff — showing high scalability.

Seed funding is the first official round of funding that helps a startup develop its product and validate its market.

It’s typically raised from angel investors, early-stage VCs, or startup accelerators. The funds are used for building MVPs, hiring initial team members, or launching early marketing. .

“FoodShare Nepal” raised Rs. 20 lakhs in seed funding from an angel investor to launch its food donation platform.

Series A, B, and C are stages of venture capital funding that startups raise as they grow, each round bigger than the last.

• Series A: Focuses on optimizing product and building a user base.
• Series B: Helps scale operations, marketing, and team.
• Series C: Aims for expansion, acquisition, or preparing for IPO. .

“TechLift Nepal” raised Series A to grow users, Series B to expand to India, and plans a Series C for international partnerships.

A shareholder is an individual or entity that owns one or more shares in a company and, therefore, holds partial ownership.

Shareholders can earn returns through dividends and share value appreciation. They also have voting rights in major company decisions, depending on their share class. .

“FinNepal Pvt. Ltd.” has four shareholders — the two founders, one angel investor, and an employee with equity.

Shares represent units of ownership in a company, giving the holder rights to profits and, in many cases, decision-making power.

Startups issue shares to founders, investors, and sometimes employees. The total number of shares determines how ownership and control are distributed. .

“EcoSmart Nepal” issued 10,000 shares — the founder holds 6,000, and investors hold the remaining 4,000.

Social media presence refers to how actively and effectively a business engages with its audience on platforms like Facebook, Instagram, TikTok, LinkedIn, or Twitter.

It helps build brand awareness, trust, and customer relationships. A strong presence includes consistent content, interaction, and platform-appropriate strategies. .

“StyleFit Nepal” posts daily workout tips and product promotions on Instagram, building a loyal community through its social media presence.

Social proof is the psychological concept where people trust and follow the actions or opinions of others — especially when making decisions.

In startups, social proof includes customer reviews, testimonials, influencer shoutouts, user counts, or media mentions — all helping to build credibility. .

“MealBox Nepal” featured customer reviews and “as seen on Kantipur TV” badges on its website as social proof to increase trust.

A sole proprietorship is the simplest form of business ownership where a single individual owns and runs the business.

There’s no legal distinction between the owner and the business — the owner receives all profits but is also personally liable for any losses or debts. .

“Bikash Electronics Repair” operates as a sole proprietorship, with Bikash managing all operations and using his personal PAN for tax filings.

SST is a mandatory contribution in Nepal made by both employers and employees to the Social Security Fund for long-term worker benefits.

The employer contributes 20% and the employee 11% of the basic salary. The fund supports pensions, medical claims, and social protection. .

“TechPlus Nepal” deducts 11% SST from employee salaries and contributes 20% itself every month to the Social Security Fund.

A startup is a newly established business designed to grow rapidly by solving a problem through an innovative product or service.

Startups often begin with limited resources, aim for scalability, and experiment with business models. They usually operate in uncertain environments and seek investment to grow. .

“RideNepal” launched as a startup offering affordable bike-sharing in Kathmandu through a mobile app.

A startup ecosystem is a network of individuals, institutions, and resources that support the creation and growth of startups.

It includes founders, investors, incubators, accelerators, mentors, service providers, and government bodies working together to help startups succeed. .

Kathmandu’s startup ecosystem includes programs like Idea Studio, Nepal Communitere, investors, co-working spaces, and tech meetups.

Supply chain management is the coordination of all activities involved in producing and delivering a product to the customer.

It covers sourcing raw materials, manufacturing, inventory, logistics, and distribution. Efficient supply chains reduce costs and improve customer satisfaction. .

“FarmBox Nepal” manages its supply chain by sourcing vegetables from farmers, storing them in cold units, and delivering directly to customers.

T

TDS is a system where a business deducts tax from payments it makes — such as rent, salaries, or service fees — and submits it to the government on behalf of the recipient.

In Nepal, TDS is mandatory on certain payments, and businesses must file monthly returns through the IRD. It helps ensure tax collection at the point of transaction. .

“SmartServe Nepal” paid Rs. 20,000 to a freelancer and deducted 15% TDS (Rs. 3,000), which it deposited to the IRD on the freelancer’s behalf.

A term sheet is a non-binding document that outlines the basic terms and conditions of an investment deal between a startup and an investor.

It covers key elements like valuation, equity to be given, investor rights, board structure, and timelines. It serves as a starting point before drafting legal agreements. .

“EduNepal Pvt. Ltd.” signed a term sheet with an angel investor agreeing to raise Rs. 15 lakhs in exchange for 15% equity.

A trademark is a legal protection for a brand’s name, logo, slogan, or symbol that distinguishes it from others in the market.

Registering a trademark in Nepal prevents others from using similar branding, helping you protect your identity and build long-term brand value. .

“ChiyaGhar Nepal” registered its name and logo as a trademark to stop competitors from copying its brand identity.

Traction refers to the measurable progress a startup makes in attracting users, generating revenue, or gaining market attention.

It signals product-market fit and growth potential. Startups show traction through user numbers, revenue growth, media mentions, or customer engagement. .

“FoodieRun Nepal” showed traction by reaching 10,000 app downloads and 1,000 daily orders within 3 months of launch.

A trial balance is an accounting report that lists all ledger account balances to check whether total debits equal total credits.

It is used to detect errors in the accounting system before preparing final financial statements. A balanced trial balance means the books are mathematically accurate. .

“SmartBuild Nepal” prepared a trial balance showing equal totals of Rs. 10 lakhs on both debit and credit sides — confirming the records were correctly maintained.

U

Usability refers to how easy and efficient it is for users to interact with a product, website, or app.

High usability means users can quickly understand and use the product without confusion. It’s a key factor in user experience (UX) and customer satisfaction. .

“PayQuick Nepal” improved its app’s usability by simplifying the payment process, reducing the steps from five clicks to two.

A USP is the distinct value or benefit that makes a product or service stand out from its competitors.

It answers the question, “Why should a customer choose you?” A strong USP highlights what you do differently — better, faster, cheaper, or more meaningfully. .

“EcoWrap Nepal’s” USP is that it offers 100% biodegradable packaging made in Nepal — unlike imported plastic alternatives.

V

Valuation is the process of determining the current worth of a startup or business, often used during fundraising or acquisition.

It’s based on factors like revenue, market size, traction, team strength, and future potential. Investors use valuation to decide how much equity they receive for their investment. .

“TechSphere Nepal” was valued at Rs. 2 crores before raising Rs. 40 lakhs, giving the investor a 20% stake.

Validation is the process of confirming that your startup idea solves a real problem and that customers are willing to pay for it.

Startups validate their ideas by talking to potential users, launching MVPs, and measuring real interest or demand — before building the full product. .

“QuickLaundry Nepal” validated its service by surveying 200 potential users and getting 50 prepaid signups before launch.

VAT is a consumption tax applied to the sale of most goods and services in Nepal, currently set at 13%.

Businesses registered for VAT must charge it on sales (output VAT) and can claim credit for VAT paid on purchases (input VAT). Returns must be filed monthly through the IRD. .

“TechZone Nepal” charges 13% VAT on each invoice and deducts input VAT from its purchases when filing monthly returns.

Venture capital (VC) is funding provided by investment firms to early-stage, high-potential startups in exchange for equity.

VCs invest in startups they believe can scale rapidly and generate large returns. They often provide not just money but also mentorship, networks, and strategic support. .

“ShopKaro Nepal” secured venture capital from a regional VC firm to expand its e-commerce platform nationwide.

W

Withholding tax is an amount deducted at source by the payer on specific payments (such as dividends, interest, or royalties) before transferring the remaining amount to the payee.

It is commonly applied to payments made to foreign companies or individuals. The deducted tax is submitted to the government on behalf of the recipient.

“TechServe Nepal” paid a foreign consultant $1,000 and withheld 15% as tax, which it deposited to the IRD as withholding tax.

A website is an online platform where a business shares information, sells products or services, or interacts with customers.

For startups, a website builds credibility, attracts leads, and enables sales. It can range from a simple landing page to a full e-commerce or service portal.

“GoOrganic Nepal” launched a website where customers can browse vegetables, place orders, and learn about organic farming practices.

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