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How To Start A New Startup in 12 Easy Steps:- If you also want to start a new startup, then this article will help you a lot in starting a new startup, How to start a new startup. Before starting a new startup, it is important to keep many things in mind. If you already learn those things which are necessary to start a startup, then you can grow your startup very well. In today's article you will know...
- What is Startup?
- How to Find Investors For Startups
- 12 Easy Ways To Get Funding For Startups
- How Should be Your Start Up Plan For Business
- How To Start A New Startup in 12 Easy Steps
- FAQ
- How do I Legally Start a Startup
- What Are the 5 Key Elements of a Startup?
- Can a Single Person Run a Startup?
- What Are the 3 Pillars to Initiate Startup?
- What Are The 6 Types of Startups?
- Who is Not Eligible For Startup?
- What is the Most Important Stage for a Startup?
- Conclusion
What is Startup?
Startup An idea which is given a real form and solving the problem of the people in that real form is called a startup. Simply put, a startup is an idea that is created to solve people's problems.
A startup is a company that is in the initial stages of business. Startups are often small and privately owned and typically focus on developing a unique product or service in order to grow the business. The goal of a startup is usually to eventually become a profitable and sustainable company.
Startups are often associated with the tech industry, but they can be found in a variety of sectors. Many startups are founded by entrepreneurs who are looking to bring a new product or service to market and are willing to take on the risk of starting a new business in order to do so.
Startups are known for their fast-paced and dynamic work environments, as well as their emphasis on innovation and creativity. Working at a startup can be exciting and rewarding, but it can also be challenging, as startups often face a high degree of uncertainty and have limited resources.
Here are a few more things to consider when it comes to startups:
- Funding: Startups often rely on funding from investors to help get the business off the ground. This can take the form of equity investment, in which investors receive a stake in the company in exchange for their funding, or debt financing, in which the startup borrows money and pays it back with interest.
- Growth: The ultimate goal of most startups is to grow the business and become profitable. This might involve expanding the product or service offering, entering new markets, or increasing the size of the customer base.
- Risk: Starting a business is inherently risky, and startups are no exception. Many startups fail, and even those that are successful often face numerous challenges along the way.
- Culture: Startups often have a unique culture, characterized by a strong sense of mission and a focus on innovation and collaboration. This can make working at a startup a rewarding and enjoyable experience for those who thrive in this type of environment.
- Impact: Many startups aim to make a positive impact in their industry or in the world at large. This might involve developing innovative products or services, or using business as a force for social good.
How to Find Investors For Startups
Before starting a startup, many things have to be kept in mind and problems to be identified. In which the first problem comes to raise funding. Because people start business but most of the business gets closed due to lack of funds and their dream of doing business remains unfulfilled. Capital is an essential element for any startup to grow rapidly, without adequate capital, startups face problems in scaling up. Starting any startup or business and most importantly raising funds for it is not that easy, but if you work wisely and know how to get funding, then you can make your startup dream come true. Can accomplish and take it far ahead. Means you just need a great idea to start a start-up, there are many ways to get funding for the rest of the startup, so let's know about those fund sources from where you can raise funding for business startup. and can scale up the startup easily.
life cycle of a business
This question comes in everyone's mind that how does the startup or the company get its initial capital or money? Because the new starting company does not have any security capital or back capital on which it can depend. It is also true that raising money for a startup is a very difficult task. To understand business funding and other funding options for a business, let us first understand about the life cycle of a business. Actually the life-cycle or life cycle of a business is a series of all the changes or progress in the business at a given time. Any business, industry and almost all types of companies have to pass through these five different phases during their life cycle
Launch stage
Launch stage or it is also known as startup stage. Launch stage means when a company or business completes all the legal formalities or whatever the conditions are for starting its business, a startup. In this stage, the promoters of the company initially invest so much money that the company can stand on its feet or start its business. In fact, in this stage, the sales of the company's products or services are very less and on the other hand, the income sources of the company are also less, which is why most of the people consider the launch stage as the most risky and difficult stage.
Growth Stage
When a business crosses the launch stage or its risk-taking stage, then that business enters its growth stage. Now in this stage the sale of the services or products of the business starts and gradually the company starts building its own identity, reputation and credibility in the market and gradually it succeeds in winning the hearts of the customers.
Then now as the company's sales increase, the company starts getting a steady income and along with it, the time between sales and getting its payment also reduces. Then the business starts making profit. Now after this the aim of the company is to increase its revenue by increasing the marketing and production of its products.
Shake-Out Stage
Shake-out stage means when a business passes several stages of development, then it reaches the shake-out stage. At this stage the business has progressed a lot. Here, the sales of the business are hitting a high, but the rate of growth of its sales and revenue starts to slow down.
This may be due to market saturation or entry of new competitors. We can say that in the shake-out stage, the costs and expenses associated with the business increase to a great extent and because of these expenses, its revenue or profits decrease. To increase profits, business expenses are usually cut.
Maturity Stage
The stage that comes after this is the maturity stage. Maturity stage i.e. when sales, revenue and profits gradually start meeting in a prescribed ratio, then the business comes to the maturity stage.
When businesses come to this stage, they try to expand their business further, for this they start investing in opening many other branches with new technology. Diversify your business, and try to expand your footprint in new and emerging markets. With increasing its business in the market, the growth of the company starts to be very good.
Decline Stage
In the decline stage, both the sales and revenue of the business starts decreasing. If a business wants to get out of this stage from this stage, then it will need to invest a lot of money, which is not possible for everyone in this stage. Many times in the decline stage, businesses have to merge with other successful businesses or have to close their operations.
12 Easy Ways To Get Funding For Startups
1. Peer-to-Peer Lending
If you do not have a good credit score, then you can also raise a loan for your startup through peer-to-peer lending. Because finance for loans from banks and financial institutions It is necessary to have a good credit score along with a commercial history. Peer-to-peer lending is referred to as P2P.
In fact, peer-to-peer lending is a type of loan for startup enterprises, while a type of investment for lenders. In this, lenders lend money to borrowers in the form of investments. The interest rates of loans given in this are higher than that of banks, NBFCs and MFIs, so lenders get profit in this.
2. By Crowdfunding
Crowdfunding is a method by which small amounts of money are raised from multiple investors to meet business objectives. It is a platform which helps in fulfilling the dreams of common people. The business is developed by collecting funds from people who are willing to fund such a company. In return, you also have to give them something like special discount on any product etc. Here you list your project and you have to tell how much money you need.
Crowdfunding helps startups and first-time business owners raise funds. The person who likes your project pays you money. Along with this, you have to tell that how and where you will use the fund, you have to give complete information about it. Social networking sites and web based platforms are used for crowdfunding. Major crowdfunding platforms in India include Keto, Kickstarter, Catapult, Fundable, Fueladream, Wishberry, Indiegogo, Milap, Keto, Kickstarter, Catapult, Fundable, Fueladream, Wishberry, Indiegogo, Milap etc.
3.By Incubator and Accelerator
Incubator and Accelerator programs are one of the effective ways of raising funds for businesses. Many startups are supported every year through these programs, so you can raise funds through this too. The role of incubators is important in the startup policy of the government and they play a role in providing recognition to startups, creating guidelines for them and providing financial support.
These incubators help in preparing your product and accelerators help in increasing the speed of the business. Incubators not only provide support to startups but also solve any kind of problems.
4. by Angel Investors
Angel Investors are those people who invest in a business or start-up at the initial stage and in return take some stake in it. Angel investors are the main source of funding for any startup. Although there are many ways to raise capital, angel investors prove to be a great boon in the initial days of a startup. From the name of Angel itself, you can understand that they are like an angel who supports us. A startup believes in its angel.
Angel investors are individuals or companies who have a lot of money and want to invest in a business or startup. They are looking for good options and startups to invest their money. To attract angel investors, you have to tell them the complete planning of your business and also have to give a great pitch. A deal is signed only after being satisfied with each other's offers.
In India too, there are many investors like Hyderabad Angels, Indian Angels Network, Mumbai Angels who provide good funding to small and big startups and help in taking a start-up forward. Startups can approach them to get funding.
5. By Bootstrapping
Bootstrapping means arranging the funds on your own. Means in the beginning no one will invest money in your startup, so in the beginning you have to arrange money on your own and at least you have to arrange so much money that you can start your startup by yourself first. Even if you get funding later. Meaning you can run your startup smoothly until you can raise funding from anywhere.
This means that when you start a business, you must have a source from where you can easily arrange capital without interest. Through this fund, you invest your own money in the business. Because until you invest your money in the business, why would anyone else invest in your business? This can be mainly your savings or your friends, acquaintances, relatives, etc. from where you can easily get funds without interest. There have been many businessmen who have built huge businesses on a very large scale only through bootstrapping.
6. By Startup India Scheme
If you have a good idea to start a business that can generate employment then you can apply for Startup India loan. Actually this program has been started by Prime Minister Modi to help entrepreneurs.
You can also collect funds for your business by taking advantage of this scheme. The main objective of this scheme is to provide funds to startup youth through banks by strengthening the beginning of startup youth. It was first launched on August 15, 2015 to encourage Indian youth to take a step towards business.
7. By Society Scheme
Society Scheme is a scheme run by a mutual group, in which mutual people collect money and give it to the person who needs it. Then the needy person can do any startup with this money and after that the person returns the money gradually month by month. This has the advantage that you get money at the time of need and the biggest thing is that you do not have to pay much interest in it.
8. By Bank Loan and NBFCs, MFIs
Getting loans from banks is considered the first priority of startup enterprises. Meaning whenever it comes to taking funding, the main name comes only of loan. Getting money through banks is more convenient and reliable. Many startups raise funds from private sources or financial institutions such as micro finance houses or commercial banks to grow their business.
In this, the interest rate is high and the startup has to pay the principal amount and the interest earned on time. Since you do not have any financial history or any credit score, it can be a bit difficult for you to avail loans from private and public sector banks. For this, you can avail business loans for your startup from Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) based on your requirements without any financial history or credit score.
9. By Line of Credit
This credit is also like a normal loan. This is also a way of raising funds for startups. In this, loans are given by banks or financial institutions to companies or government institutions. Means Line of credit is a kind of fund. It is taken by many industries to import, export and start business in any other country. Once the amount is approved, you can withdraw as much as you want from the approved amount.
10. By Mudra Loan
Under the Pradhan Mantri MUDRA Yojana (PMMY), the Government of India has arranged Mudra loans to help the small businessmen of the country. So that along with the capital expenditure, it can also help in meeting the operational expenditure.
That is, funds can also be collected through Mudra loan. Through this loan, a maximum loan of up to Rs 10 lakh can be taken. Mudra loans can be taken for a number of reasons, such as to create employment or to generate income. There are three types of Mudra loans – Young, Teenager, and Infant.
- Infant: Loans up to Rs 50,000 are given under this scheme.
- Teenager: Loans above Rs 50,000 and less than Rs 5 lakh are given under this scheme.
- Young: Loans above Rs 5 lakh and less than Rs 10 lakh are given under this scheme.
Just if you have any business idea but lack of funds then you can take advantage of this scheme.
11. By Venture Capital
Venture capital is the most popular way for startups to raise early stage funds. The people who invest money in such a company are called venture capitalists. Venture capitalists invest money in your business by taking equity. They exit the business only after the IPO is issued or after the acquisition. Venture capitalists not only financially support the startup, but also guide the startup in important matters. Venture capitalists also check from time to time whether your startup is moving in the right direction or not. Overall, you can raise funds for your startup with the help of Venture Capital.
12. By Government Schemes
Many schemes have also been started by the Government of India from time to time. Their main objective is to provide loans to startup enterprises, SMEs, MSMEs. Through these schemes, you can easily raise funds for your startup.
Loan schemes launched by the government include the Mudra loan under Pradhan Mantri Mudra Yojana (PMMY) mentioned above, Startup India, Atal Innovation Mission, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) ), Stand-up India, Make in India, Trade-Related Entrepreneurship Assistance and Development (THREAD) etc. You can also take advantage of government schemes and take your startup forward by giving it a direction.
How Should be Your Start Up Plan For Business
It is said that some people have the qualities of a born business, while some people have to work hard, while talking about business, some people take the business to heights in no time and make a name for themselves in the market. Let's take On the other hand, some people are unable to achieve anything even after working hard and give up. Because doing business is an art, which very few people know, but if you also want, then let us know how your start up plan should be for business.
For this, whatever industry you choose or whatever business you start, think carefully about it. Then collect all the information about it i.e. do research about that business. You learn that work well. Make a habit of writing your business plan because by doing this you can know about everything.
Write all the necessary things in the business plan like when what you have to do, how to do it, where to do it, in what time you have to do it etc. To establish yourself, you have to present your business in a new way because the competition in the market is very high. First of all, to start the business, you have to register it. Take the help of experts and professionals related to that field.
Collect information about all taxes, revenue etc. related to the business and keep filling all the taxes from time to time. We all know very well that in today's digital era, unless a business is online, it will not have that much demand. That's why whether your business is small or big, make sure to create its website and social page. This will expand your business.
How To Start A New Startup in 12 Easy Steps
1. There Should Be An Idea
If you want to start a startup, then first of all you must have an idea. An idea that solves people's problems or that idea makes people's lives easier.
Startup name itself shows that there is a new beginning, so do not try to copy anyone's idea. With your skill, you should find a solution to such a problem, which bothers people the most.
If you can fix the problem of people, then understand that you have got a new idea for your startup and with this idea you can start a new startup.
2. Create a Business Model
To convert your idea into success, it is most important to prepare a business model. Business model means how your business will run and how you will run it. What work will you start? Which things to serve. Or what kind of service will you give to your customer. How people will get benefit from your business so that they come to you again and again. Do think about all these things. Along with this, you should also know that how much money you want to invest in your business in the beginning. Will you need to take a loan or borrow for this? Clear this also. Also, you have to buy or rent all the equipment for your startup. If you have less money. So you can also take the necessary equipment on lease. Apart from this, the staff of how many people will work with you. And how much will be his salary. Do not forget to note this also on your diary.
3. Build A Good Team
It is very difficult to choose a good team for a new startup. You can choose such a team for your startup, who consider your startup as their vision.
Select people with such skills in your team as the skills are necessary for your startup. If you choose a team that can work 24/7 for your startup, that means when your startup needs it, even if it is at 12 o'clock in the night, then understand that you have achieved success for your startup. Have selected a right team.
Initially, you can make a team of 2 or 3 people for your startup, then as your startup grows, you can increase the size of your team.
Keep only such people in your team who work without any selfishness. And in this way you can choose a good team for your startup.
4. Find Startup Location
Every business startup company requires a space/place/location, may it be an office, may be a retail space, or may be a manufacturing location, i.e. purchase or purchase a property to operate its business. Renting is required.
5. Prepare A Good Business Plan
Your startup will run only when you have a good business plan. Your startup cannot start until you prepare a complete business plan. You should prepare the complete business plan for your startup in advance, before starting your startup.
Prepare a business plan for 1 to 5 years for your startup. What do you want to do for your business (startup) in 1 year, how will you help people with your startup or how will you solve people's problems.
Where do you want to take your startup in the next 5 years? Or what should be the turnover of your startup in the coming 5 years, you can include all this in your business plan before starting your startup.
Before starting a startup, you must have a business plan ready for at least 1 year. So that if your plan A does not work, then you can implement plan B. In this way you can prepare a complete plan of your business.
6. Become a Marketing Expert
If you are not a good marketing expert, then you have to learn everything about marketing to take your startup to the market. You can have the best product or service in the world, but no one knows about it. If yes then how will your startup be successful. That's why it is very important for every businessman to be a marketing expert.
7. Know About Your Startup
Before starting your startup, you should do research about your startup in advance.
Get complete information related to whatever field your startup is related to. Never take half incomplete knowledge in haste, always take complete knowledge..? And then start any work.
8. Customer Base
Apart from providing good products and services, you should do such a thing that once the customer comes to you, next time he does not go anywhere else, start a website of your own, increase your digital presence and it is very important to create an effective image.
Customers and customer service should be your main priority as customers are the lifeline of your business, once you have built a stable customer base, you can use it to continuously generate profits from your business.
9. Be Ready For Every Challenge
Launching your startup company is not easy, there are many hurdles you have to face along the way. You can't get discouraged when something goes wrong. The difficulties that come with launching a startup company always require you to be prepared for the tough challenges ahead.
10. Give People Good Service And Value
You can give good value to people with your service or product, which no one else gives in the market. Its service or product has a very important contribution in growing a startup.
If you are giving service to people from your startup, then give them service in such a way that they get some value from that service, but if you are solving the problem of people with a product from your startup, then you should give such a product to people. Can give so that people get some value from that product only then your product or service will increase.
And if your product or service will grow, then your startup will also grow and grow. If you want to grow your startup then always give good service and product to the people? And after that do not forget to take a review of that product or service, because a good review can take your startup a step further.
Never try to sell low quality service or product to people for your benefit. Always sell the same product or service that gives value to people.
11. Set Your Destination And Sell The Goods
After implementing all the points mentioned above, set the destination of your startup and start selling the goods.
In the beginning try to improve every little thing, don't ignore anything. A small mistake can completely ruin your startup.
Always sell the product or service that gives value, do not try to sell anything unnecessarily.
12. Company Registration
You open any work. Do any kind of business. Or do it at any level. You will have to register your company. This is very important for you and for your company. To become a good and successful businessman, you have to do all the work in a legal way, whether it is a shopping mall or a shop.
Be it a restaurant or any stall on which you are investing money, do not forget to get it registered. You can consult with an expert or a legal advisor to get your shop registered. It will help you immensely. Take care of all these things before starting any work.
These will help you a lot in starting your business and making it successful. But the truth is that in the end it will be you and your hard work that will give you success. Do your work responsibly. And act responsibly. Then no one will be able to stop you from being successful.
FAQ
How do I Legally Start a Startup
Starting a startup requires several legal steps, depending on your location and the nature of your business. Here is a general overview of the process:
1. Choose a business structure: You will need to decide whether to form a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each type of business structure has its own legal and tax implications, so it's important to choose the one that makes the most sense for your business.
2. Choose a business name: You will need to select a name for your business and ensure that it is not already being used by another company. You may need to register your business name as a trademark to protect it from being used by others.
3. Obtain any necessary licenses and permits: Depending on the type of business you are starting and where you are located, you may need to obtain various licenses and permits in order to operate legally.
4. Register your business: You will need to register your business with the appropriate government agencies, such as the Internal Revenue Service (IRS) and your state's secretary of state office. This will typically involve filling out paperwork and paying fees.
5. Establish a separate business bank account: It is a good idea to keep your personal and business finances separate by opening a separate bank account for your business. This will make it easier to track your business's financial transactions and prepare financial statements.
6. Consider getting insurance: Depending on the nature of your business, you may want to consider getting liability insurance to protect your business in case of accidents or other unexpected events.
It is always a good idea to consult with an attorney and a financial professional when starting a business to ensure that you are taking all of the necessary legal and financial steps.
What Are the 5 Key Elements of a Startup?
Here are five key elements that are often crucial to the success of a startup:
1. A strong business model: A startup needs to have a clear and viable plan for generating revenue and achieving profitability. This will typically involve identifying a target market and figuring out how to sell a product or service to that market.
2. A unique value proposition: A startup needs to offer something that sets it apart from its competitors, whether it's a unique product or service, a new business model, or a disruptive technology. This is often referred to as the startup's "unique selling proposition" or "value proposition."
3. A competent and passionate team: Building a strong and cohesive team is essential for any startup. This includes not only finding talented employees with the skills and experience to help grow the business, but also ensuring that everyone is aligned around the startup's mission and goals.
4. A scalable product or service: A startup should aim to offer a product or service that can be easily and cost-effectively scaled as the business grows. This is particularly important for startups that are targeting a large market or looking to disrupt an established industry.
5. Access to funding: Many startups need financial support to get off the ground and fund their operations. This may involve seeking investment from venture capitalists, angel investors, or crowdfunding platforms. Having a solid plan in place for raising capital is essential for the long-term success of a startup.
Can a Single Person Run a Startup?
Yes, it is possible for a single person to run a startup. Many successful businesses, particularly in the early stages, are started and run by a single individual who handles all of the tasks and responsibilities required to get the business off the ground.
However, it is important to keep in mind that starting and running a business can be a significant undertaking, and it is not uncommon for entrepreneurs to feel overwhelmed or stretched thin. If you are a single person starting a business, it may be helpful to enlist the help of freelancers or contractors to assist with certain tasks, or to bring on a co-founder or partner to share the workload.
Additionally, it is important to be realistic about the amount of time and effort that will be required to start and run a business. While it can be rewarding to be your own boss and build something from the ground up, it can also be challenging and demanding. Make sure you are prepared for the dedication and hard work that will be required to make your startup a success.
What Are the 3 Pillars to Initiate Startup?
There are many different elements that can be important for a startup to succeed, but here are three pillars that are often considered crucial:
A solid business plan: A business plan is a written document that outlines the goals, strategies, and financial projections for a business. It is important for a startup to have a clear and well-thought-out business plan in place to guide the development and growth of the business.
Strong financial management: Proper financial management is essential for any business, but it is particularly important for startups that may have limited resources and need to be frugal in order to survive. This includes everything from budgeting and forecasting to raising capital and managing cash flow.
A capable and motivated team: Building a strong team is crucial for any startup. This includes not only finding talented employees with the skills and experience to help grow the business, but also fostering a positive and collaborative work culture to keep morale high.
What Are The 6 Types of Startups?
There are many different types of startups, and the classification of a startup can depend on various factors such as the industry it operates in, the stage of development it is in, and its business model. Here are six common types of startups:
1. Technology startups: These are businesses that develop and sell technology products or services, such as software, hardware, or mobile apps.
2. E-commerce startups: These are businesses that sell products or services online through a website or platform such as Amazon or eBay.
3. Social media startups: These are businesses that use social media platforms as a key part of their marketing and communication strategy.
4. Health and wellness startups: These are businesses that offer products or services related to health and wellness, such as fitness apps, wellness retreats, or health food products.
5. Sustainable or socially-conscious startups: These are businesses that have a focus on sustainability or social impact, and may sell products or services that are environmentally-friendly or benefit a particular social cause.
6. Biotech or life science startups: These are businesses that develop and sell products or services related to biology or the life sciences, such as pharmaceuticals, medical devices, or diagnostic tests.
Who is Not Eligible For Startup?
There is no specific list of individuals or companies that are not eligible to start a business. In general, anyone who has the desire and resources to start a business is able to do so, regardless of their background or circumstances.
However, it is important to keep in mind that starting a business can be a significant undertaking, and it may not be a feasible option for everyone. For example, individuals who have limited financial resources or time may find it difficult to start a business, as it often requires a significant investment of both. Additionally, individuals who are not willing to put in the hard work and dedication that starting a business typically requires may not be well-suited to entrepreneurship.
It is also worth noting that there may be legal or regulatory requirements that apply to certain types of businesses or industries, and individuals or companies who do not meet these requirements may not be able to start a business in those areas. For example, certain professions, such as healthcare or law, may require individuals to have specific licenses or certifications in order to practice.
What is the Most Important Stage for a Startup?
It is difficult to identify a single most important stage for a startup, as the needs and priorities of a business can change significantly at different points in its development. However, here are a few key stages that are often crucial for the success of a startup:
1. Idea generation and validation: In the early stages of a startup, it is important to identify a problem or need that the business can solve, and to validate that there is a market for the solution. This may involve conducting market research, talking to potential customers, and testing prototypes or MVPs.
2. Fundraising: Many startups need financial support to get off the ground and fund their operations. This may involve seeking investment from venture capitalists, angel investors, or crowdfunding platforms. Raising capital can be a critical step for a startup, as it provides the resources needed to develop and scale the business.
3. Product development and launch: Once a startup has identified a problem to solve and validated that there is a market for its solution, it will need to focus on developing and launching its product or service. This may involve building a prototype, conducting user testing, and establishing partnerships with suppliers or other businesses.
4. Scaling and growth: As a startup begins to gain traction and grow, it will need to focus on scaling its operations and expanding its customer base. This may involve developing new products or services, entering new markets, and hiring additional staff.
5. Sustainability and profitability: Ultimately, the goal of any startup is to achieve sustainability and profitability. This involves finding a balance between growth and profitability, and developing a long-term plan for the business that allows it to continue to thrive and evolve over time.
Conclusion
So friends these were some main points which will help you to start your startup. And how did you like this article of ours, How To Start A New Startup in 12 Easy Steps, how to start a startup, how to start up a business, how to find investors for startups, must tell me. If you have any question related to this article then you can ask me in the comment box. Do share this article with your friends. Thank you for reading this article.
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