Month: October 2020

Categories
MSME

MSMEs in India Get Big Relief! Govt Ready to Waive ‘Interest on Interest’ on Loans Up to Rs 2 Crore During Moratorium

Money (Photo Credits: Unsplash)

New Delhi, October 17: In a major relief to thousands of individuals and MSME borrowers in India, the Modi government announced that it is ready to waive ‘interest on interest’ on loan up to Rs 2 crore during moratorium. In an affidavit filed on October 3, the government informed the Supreme Court that it has taken a decision to waive ‘interest on interest’ on loans up to Rs 2 crore during the six-month moratorium period. The affidavit said that the only solution is that the government should bear the burden resulting from waiver of compound interest.

The retail borrowers and small businesses are the ones who have been worst hit by the coronavirus pandemic. After the Centre expressed its willingness to waive off ‘interest on interest’ charges on loans up to Rs 2 crore for six months through August, the benefit will now be extended for loans availed by micro, small and medium enterprises (MSMEs), education loans, housing, consumer durables, credit card dues among others.

The categories of loans up to Rs 2 crore include- MSME loans, education loans, housing loans, consumer durable loans, credit card dues, auto loans, and personal loans to professional and consumption loans. The Centre said, “After careful consideration and weighing all possible options, the respondent Union of India has decided to continue the tradition of handholding the small borrowers”.

In the affidavit, the Centre added saying that it is impossible for the banks to bear the burden resulting from waiver of compound interest without passing on the financial impact to the depositors or affecting their net worth adversely, which would not be in larger public interest. “The government, therefore, has decided that the relief on waiver of compound interest during the six-month moratorium period shall be limited to the most vulnerable category of borrowers”, the affidavit said.

According to a report by IANS, after the recommendations of an expert committee, the Centre has altered its stand. Earlier, the RBI and Centre had argued against waiver of interest on interest, as it would be against the interests of other stakeholders, especially depositors, and also unfair to those who have paid their dues.

Background:

A bench comprising Justices Ashok Bhushan, RS Reddy and MR Shah had requested the Centre to have again consider its decision in the backdrop of financial hardship faced by many amid the coronavirus pandemic. Although, the top court had agreed to not waive interest altogether. The Centre said that the top Court would be satisfied that the government bearing this burden would naturally have an impact on several other pressing commitments being faced by the nation, including meeting direct costs association with the pandemic management.

The Centre also cited the example of waiving interest on interest for banks. “In case of SBI alone, waiver of six months’ interest would completely wipe out over half of the bank’s net worth which has accumulated over nearly 65 years of its existence”, the affidavit read. The Supreme Court will take up the matter on October 5 for further hearing. A clutch of petitions was filed in the top court seeking waiver of interest on interest on the deferred EMIs during the moratorium.

 

Categories
MSME

Credit Guarantee Scheme: Banks Sanction Rs 1.86 Lakh Cr to 50 Lakh MSMEs Impacted by Slowdown Amid COVID-19 Pandemic

New Delhi, October 17: The Finance Ministry announced that banks have sanctioned loans of about Rs 1.86 lakh crore to 50 lakh business units under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, those who have been affected by a slowdown due to the coronavirus pandemic. According to a report by PTI, over 27 lakh MSME units have received about Rs 1,32,246 crore till September 29.

Emergency Credit Line Guarantee Scheme is part of the fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package that was announced to lessen the stress caused by the lockdown due to coronavirus pandemic.

The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till the amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.

Categories
Startup

5 Questions to Ask Yourself Before Starting Your Own Business

Startup
Startup (Photo Credits: Pixabay)

Mumbai, October 16: Often people want to start their own business because they feel they have a great idea. We don’t want to discourage anyone but would like to remind that starting a business is not a cakewalk it requires a lot of crucial planning in the backend.

Here are five questions which you need to ask yourself before starting your own business.

Try to Have a Unique Idea

The first and the foremost to any business is to have a plan for your business. Your idea should be unique and something which the customers want. Don’t try and launch something where already 10 players are fighting with each other. If you have an idea, keep your customer in the centre of it and think aloud that how will they be benefitted.

Do Adequate Market Research 

It is very important to do market research before you think of launching your product in the market. Understand if there is a demand for your product and then analyse your competition. Try and find out how will your product be different from the others and why should customers choose you.

Compare the Risks Vs Rewards

It is very important to analyse the risks associated with starting a business in comparison to the rewards which you may get to see if the business becomes successful. For e.g you may have a lucrative career, earning a handsome salary and thinking of quitting your full-time job to start your business. There are no doubt huge challenges and risks associated in the initial few years, so are you ready for it?

There can be two sides to your wanting to start a business. One being your idea may not kickstart and second, it may become huge and a successful venture.

Strategise a Plan

It is very important to plan and plan well if you want to start your own venture. Remember everything is new and will be in limited resources. Right from the budget to the people whom you will be able to hire to run your team. You need to spend every penny wisely. Crisis doesn’t come knocking at the door, for e.g. no one knew at the start of this year that the COVID-19 pandemic will lead to several businesses getting shut and people losing their jobs. Therefore, it is very important to plan for a time when things will not run smoothly.

Do you have the money?

Finally, do you have the money to start a business? Are your finances in place? According to a Forbes report, most startup founders use their personal savings to fund their businesses. It is therefore very important to not remember not to drain your bank account to raise funds for your business. Entrepreneurs should set aside enough living expenses to last them for a year. Most startups are not profitable for months after opening

 

Categories
Finance

Gold Rate Today: Price of Yellow Metal Down to Rs 50,653 Per 10 Gram, Silver Slips to Rs 61,512 Per Kg

Gold jewellery (Photo Credits: Wallpaperflare)

Mumbai, October 16: On Friday, gold and silver prices were down. On MCX, December gold futures were down Rs 50,653 per 10 gram while silver futures edged slightly lower to Rs 61,512 per kg. The rates of the precious metal this week have been volatile this week.

In August gold had hit a record high of Rs 56,200 per 10 gram while silver had inched closer to Rs 80,000 per kg. Talking about the global markets, the prices remained muted today amid a firm US dollar and uncertainty over US stimulus package.

Spot gold slipped 0.1 percent to $1,906.39 per ounce and it is down over 1 percent so far this week. Investors turned cautious after rapidly rising coronavirus cases in the United States and put safe-haven bets in the dollar again, suggest experts. The dollar index gained around 0.50 percent and pushed global equities and commodities lower.

The price of a 10-gram 24-carat gold in Mumbai is Rs 50,530. Customers in Delhi will be able to buy a 10-gram 24-carat gold at Rs 53,740.

Categories
Business motivation

The Yin To Your Yang: What Kind Of Marketing Agency Would Suit Your Business The Best

बिजनेस बढ़ाने के टिप्स
बिजनेस बढ़ाने के टिप्स

When you go all out wanting to put the wings of a perfect marketing campaign to your business that is ready to fly high, you often find yourself in the dilemma if you will be able to find the perfect marketing agency to cover all your needs. There are tons of marketing agencies out there who promise to be full service, however, they often end up focusing on/having expertise in a handful of areas in the marketing department. 

Now It is up to you to decide which marketing agency fulfills your needs and will help you grow your business beyond expectations. This article is all about bifurcating the different kinds of marketing agencies so that you get a little help shaping up your decision to place the last bit of that intimidating puzzle.

The Ones That are experts In Public Relation & Branding

A PR firm or a branding agency is basically responsible to get your business a comprehensive consumer outreach, helps you position your brand in the market, advocates your brand, and plays an important role in crisis management. Most of the businesses turn towards these kinds of agencies in the nascent stage of business to get the perfect help in building personality and setting a tone. 

The Ones That Have expertise in Web development & Designing

These are the kinds of agencies that will help you build a site for your business considering how important it is in today’s day and age to have an online presence. These agencies will not only help you develop a website but also help you develop it further and host it as well. These agencies will help in the growth of your business by working on the functionality aspect as well as on user responsiveness. But there is only so much these agencies can do as they do not SEO acumen to drive more traffic to the site.

The Ones That Are Industry Specific

Now we’ll talk about the kind of marketing agencies that do offer all the services under one umbrella but there is a catch. These agencies will only market a business that belongs to a specific industry. These kinds of agencies are a godsend for those who want to make a name for themself in a particular industry such as recruitment. However, this quality might not all help those businesses who are looking to seek promotion outside the industry too. All in all, if you are looking to market yourself in a specific domain, these kinds of agencies are your go-to as they have tremendous experience in meeting success with other clients.

Full-Service Marketing Agency

Imagine a marketing agency that provides all services and promotes you via all kinds of media that is print, electronic, radio, digital, public relations. Too good to be true right? Kind of, because if an agency promises you a bit of everything, it will compromise somewhere. This compromise could be in the form of agency not giving special attention to the aspects that you want to be looked after thoroughly. Nevertheless, let’s not forget the best part about them that is wonderful for a business that has a lot of services to provide and can cover many industries.

Marketing agencies might be many, but the success of your business lies only and only in choosing the right one that meets all your needs and works as the perfect key to unlock your business for unlimited growth and success.

Categories
Business motivation

How To Figure Out If You Can Bear The Cost Of Starting A Coffee Shop Business

The beautiful and comforting smell of coffee turns into a pungent smell when you realize that you can not fulfill your dream of starting your beloved coffee business because of the lack of funds. We understand it could be shattering to learn midway building the dream castle that you can not afford the cost after all. We have realized the importance of familiarizing you with the concept of calculating the overall cost of starting a coffee shop.

In this article, readers can expect us to include all costs that vary from rent or build expenses to all the cost of supplies. So, gear up to dive in deep into the pool of financial wisdom and crunch those numbers!

It Is Important To Narrow Down Before Calculating The Cost

Let s all establish a fact here that not all coffee shops operate at the same scale or have the same business model. Some coffee shops are full-grown cafes whereas others could be just in the form of more like a simple coffee cart. So, for your ease, kindly narrow down what your coffee shop would look like. Decide if you would like to be a kiosk, Drive-through, or a big coffee bar. Also, A major chunk of your money will go into renting a place or building a place of your choice from scratch. The location that you choose for your business or shop will make a huge difference to your overall cost, hence, it is advisable to narrow down your options for a perfect locale for your business.

The Location

One of the most intimidating costs, the cost of finding a place to let your dreams grow into a full-fledged tree loaded up with fruits of profits and contentment. While selecting a place for your business, you have three options, The first is to rent a shop, for which you will have to arrange amounts for advance payment and other expenses such as commission. If you choose to build a space from scratch, we suggest you consult an architect and discuss all the costs that you will have to bear to take off the interior and exteriors. You can also think of buying a good-to-to space for which you will have to look into the mortgage payment system. Always remember that your monthly expense for the place should not be more than 15% of the monthly profit.

Equipment

This is what will make for a solid foundation for your operations. Make this decision very wisely about choosing the best equipment for your cafe. The cost will vary depending on what scale you are operating your business. The cost to equip a bigger cafe will certainly be more than equipping a cart. 

Raw Material

These are the consumable supplies that will take you to spend double the amount in the initial phase as you would want to keep your shop all stocked and ready for business. We suggest stocking up, in the beginning, there are some supplies that will not exhaust anytime soon. 

Staff And Payroll

It is strictly for those businesses that are planning to hire help for running the operations. You need to figure out how much work and responsibility they will be given and how much you can offer them according to the market standards. Accordingly, calculate the staffing and hiring costs.

Marketing Is A Necessity

It is good to have confidence that you will increase brand awareness solely on the basis of word-of-mouth but we would suggest you to play safe and leave no stone unturned. Look after your online presence and promote yourself with the help of local media to let the world know that you live for business.

Shuttering Down . . . . 

It is difficult, if not next to impossible, to calculate the fixed price of how much it is going to cost to start a coffee shop. However, this guide that we have documented for our user, will definitely help them figure out a rough estimate of how financially prepared they need to be before structuring a solid plan.

Categories
Strategy

Learn to Make Happy Customer With These Easy Customer Engagement Tips

The customer is king! No business can be successful without the help of customers. Therefore, engaging your customer is a significant part of growing your business. Customer engagement doesn’t define as just selling the product or providing services. It means improving the customer experience through interaction and efforts.

Now the question is how you can achieve this customer engagement? You can create customer engagement by the various channels, from social media platforms for your company. The main idea is to maintain and extend to grow your relationship with your customer.

The benefit of building a customer engagement marketing strategy is essential to build a strong relationship as an engaged customer is a loyal customer.

Let discuss a few customer engagement tips when developing your customer engagement strategy.

Keep the Customer Lifecycle Moving

This life cycle is the relationship of the customer with any brand or company. As a marketing manager, the main aim should be to make this lifecycle as flourishing as possible. It can be done only by the process of maintaining a customer journey because it is beneficial to your brand and customer equal.

You can do this by procuring the customers, keeping up their interest in the brand elongating the relationship beyond a single purchase.

Smart Use of Available Data

Available information about customers can help you in many ways. There is a surplus of information for marketers, which they tend to ignore that while crafting customer communication or some campaign. At this time, when digital channels’ growth is rapid, this information can help you plan things around the data available to the customer.

Don’t Ignore What is in Front of You

Sometimes in terms of expanding ourselves, we tend to ignore things that are right in front of us. With the help of the latest tools and social media analytics, you can understand the insight of your audience’s thought process towards your brands. For knowing more, you can always run a loyalty program, social media interaction, and poll or surveys that can be beneficial for obtaining the insights you need.

Creating your Brand Voice

Brand voice represents your business’s image. Your brand needs to preserve and keep up this image in every post you share or blog you write. This image is will brand representation in front of your client.

It is one of the significant factors because this brand voice represents your values. Brand voice is something that assists you in creating trust and connection between you and the customer.

Make Social Media as Your Connecting Tool

Social media channels like Instagram and Facebook are the perfect platform to have customer engagement for your brand. It is a platform where you don’t connect with your existing customers but attract new customers.

If you haven’t made your business account on these platforms, then you are missing opportunities. Starting, something for engaging customers to create a chain-like tag a friend or repost the post which has your product in it. That will start a chain that leads to having more trust and loyalty.

There are several ways that are used by many brand owners to boost customer engagement which can be great benefits for you. Creating customer engagement strategies will not only establish brand loyalty but also help you to drive sales organically.

 

 

Categories
Marketing Sales

COVID-19 Impact: Meeting Customer Expectations Top Challenge for Indian SMBs Amid Pandemic

New Delhi, October 15: Amid the coronavirus pandemic in India, the small and medium businesses (SMBs) have been finding it challenging to bring innovative offerings to market, personalise customer engagements and keep up with demand when meeting customer expectations. A new report revealed that financial management is the top challenge SMB leader respondents personally face when growing their business. According to a study conducted by leading Cloud software company Salesforce, maintaining financial growth is the top challenge constraining future business growth. It added saying that meeting customer expectations is the top constraint on operations for SMB respondents in India.

The survey was conducted online by The Harris Poll on behalf of Salesforce. Sunil Jose, Senior Vice President, Salesforce India, said that while reduced customer demand is the top constraint on future growth, applying for financial assistance is the top consideration for the future of the business for the SMBs in the country. “Amid a challenging business environment, SMB leaders have displayed remarkable strength and resilience with only 16 per cent of SMB respondents in India expecting an entirely new structure post the pandemic,” the study said. “This demonstrates that SMBs’ in India are resilient and positive of business continuity ensuring they get back on track”, the study added.

A report by IANS said that while 30 percent of the SMB leader respondents in India expect business to be as usual, 48 percent believe it would be slightly modified. In addition to pre-pandemic challenges, the SMB leaders in India are now faced with operational restrictions, compliance mandates, and shifting customer expectations. However, SMB leaders remain optimistic about the future of their businesses globally, the report added.

It added further that even during the pandemic, SMBs are continuing to adopt new technology, with at least one in five SMB respondents reporting they’ve implemented at least one of the following technology solutions in the last six months, including email marketing software, customer service software, project task collaboration tools, or e-commerce software. “Globally, SMBs’ are at a critical juncture. The key to accelerating consumer demand and solving problems for scale, come down to how they leverage technology to deliver the best customer experiences,” Jose explained.

Categories
Startup

India to Have Around 62,000 Startups, Including 100 Unicorns by 2025, Despite COVID-19 Blow, Says Report

Startup
Startup

Bangalore, October 15: Businesses have been hugely hit by the coronavirus pandemic. However, here comes a piece of positive news where it is expected that India is expected to be home to 60,000-62,000 startups, including 100 unicorns, by 2025, despite the COVID-19 blow, according to a report jointly prepared by TiE- Delhi, a not-for-profit promoting entrepreneurship, and Zinnov, a global management and strategy consultancy.

The report mentions that there has been a dip in overall funding by 50 percent during the lockdown, compared to pre-covid levels, while around 40 percent startups were negatively impacted. Four Indian startups- Nykaa, Unacademy, Postman and Razorpay-emerged as unicorns while the pandemic was at its peak. The report predicts that India is on track to having at least eight new unicorns in 2020, on a par with the 2019 numbers, taking the total number of Indian unicorns to 33.

Accoridng to another report conducted by the same group, it was found out that due to the pandemic, 15 percent of the startups have already halted their operations. In addition to this, 44 per cent of start-ups have cash runway for less than 6 months, 41 per cent of startups have been impacted negatively while 52 per cent are struggling to raise capital.

 

Categories
Strategy

7 Tips To Make You Successful Small Business Owner

Business Ideas

In current times to succeed in business, a good business owner needs to be very flexible and have the skill to handle every situation. It is an assumption that you need to turn yourself into computers, or you will start making money as your business get into the market.

Assuming things might be wrong, but the above assumption can completely turn out to be true if you don’t balance and plan out your work. There are necessary moves you need to make to achieve the road to success. This road map can set for any kind of business you have. Therefore, start using the tips that can help you to be successful in your venture.

Be Organized

For achieving success in any aspect of life, you need to be organized. Therefore, being successful in the business, you need to be organized as the first step. For doing this, you need to start by creating a to-do list for each day. While finishing each task, check it off your list.

This process will help you not to forget anything important for that day, and you will be able to fulfil all essential steps for the survival of your venture.

Recognize the Risks and Rewards

The key to any success is to calculate and understand the risks which can help your business expand. Figure out what can be the worst-case scenario, if you can figure out this then you can work on it. That can help you calculate the risk that can later help you generate reward out of it.

Figuring out the risk and rewards is a smart step before starting your business.

Learn To Be Creative

The key to success in your business is to have a chance of improving. Always gives your best to stand out in the crowd of competition. Be open to new ideas and innovation for your business. Creativity should be in a manner to express your product feature but, don’t do overdo the terms of showing creativity.

Be Focused

Being focused on the goal is a significant feature for business building. From the day you thought about the idea of business, so make sure when you work on your long-term and short- term, goals

Don’t Be Scared to Make Sacrifices

Every business needs a lot of hard work and passionate but once you start your business your work just started. So, while working on it you need to make little sacrificing like spending more time at work, you may feel professional life is taking over, but in the beginning, you need to bear it and later you just need to create balance.

Always work on the Providing Good Service

The customer is god, it’s an old saying, but it’s not completely wrong. Providing great service is important to your brand. The benefit of providing happy services will bring your customer back to you again, instead of going to move towards your competition.

 Never lose Consistency

One of the secrets of success is to be consistent in any business. That’s true, it’s important to keep doing what is necessary to be successful. This will help you to create a habit of long-term mindset and success.

Just thought of starting a business idea will not work until you work on how to take the plan out it. We have mentioned a few simple steps which can help you in business planning and strategy.