Month: November 2020

Categories
Startup

Here Are 4 Kinds of People To Avoid When Starting a Business

Startup
Startup (Photo Credits: Pixabay)

Mumbai, November 30: Starting your own business is not as easy as it sounds. There are several factors which need to be considered and they need to fall in place for the proper functioning of the business. When you start a business, it is very important to be in the influence of people who will have a positive impact on you, rather than demotivate and pull you down.

The entrepreneurial journey is extremely satisfying,  but there are several challenges on its path. We have listed a few kinds of people from whom you should stay away.

  1. People Who Are Negative & Doubt Your Capabilities: Stay away from people who doubt your capabilities as one of the traits which are required when you start a business is confidence. So at no cost, you can afford people who doubt your capabilities. People who are negative will have a bad impact on you.
  2. People Who Will Not Stand by Your Tough Times: All days are not going to be the same. There will be days when your business will face a tough time. It is very important to choose people who will not leave you in your tough days.
  3. Those Who Have Big Egos: When you are starting a new company, everyone is on the same page and all the employees need to think of it as their baby. People at this stage can’t carry excess baggage in the form of egos, which will create a negative impact and will hinder the growth.
  4. The Person who keeps reminding you of your shortcomings: Stay away from people who keep on reminding you of your past mistakes and shortcomings. These kinds of people will not let you move ahead in future.We hope that the above ideas will help you to stay alert and maintain a distance from such toxic people, whom you can’t avoid at the start of your business.
Categories
Finance

With Improvement in Automobile Demand, Vehicle Finance Sector Witnesses Speedy Recovery in India: Report

Vehicle Finance sector shows speedy recovery| Representation Image (Photo Credits: Pixabay)
Vehicle Finance sector shows speedy recovery| Representation Image (Photo Credits: Pixabay)

According to a report by the equity research firm, Motilal Oswal Financial Services, the increase in demand of two-wheeler, tractors and passenger vehicles has led to an accelerated recovery in the vehicle finance (VF) sector over the past six months. The report has predicted that the credit costs across vehicle finance players is expected to be 1.7-4.4 per cent in FY21 and gradually revert to run-rate levels over FY22-23.”By August-September 2020, sales in most product categories picked up to prior year levels. PV sales for the industry improved significantly to nearly 100 per cent of prior year levels in 2Q from sub-30 per cent levels in 1QFY21,” the report said.

Similarly, 2-Wheeler and Tractor sales in 2020 surpassed prior year levels in August and September. “2W and PV segments have benefited from the preference towards personal mobility solutions. Tractors have benefited from a healthy monsoon in 2019, coupled with a strong Rabi crop,” it added. But, the M&HCV segment continued to be a laggard. “This segment was under pressure even prior to the Covid-19 pandemic. The channel checks suggest that used CVs are witnessing strong demand given the price hikes in new CVs,” the report said. “The checks also suggest that retail festive sales were in-line with prior trends in 2Ws and tractors and improved sequentially in the case of passenger vehicles.”

The report showed that disbursements by VFs in 2Q were not in line with underlying auto sales due to focus on collections and liquidity preservation. However, it is expected to pickup in 2HFY21. “VFs are well-positioned to witness an improvement in spreads as their yields are at fixed rates while most of their borrowings are at floating rates,” it said. Adding “With the moratorium being lifted in September 2020, most players have moved back to 85-95 per cent CE (collection efficiency).” In addition, the report said that with 120-230bp of COVID-19 provisioning over the past three quarters, the overall buffer has substantially improved. “RBI allowance of restructuring will also provide a breather for exposures facing temporary cash flow mismatches,” the report concluded.

 

Categories
MSME

Small and Medium Businesses Disclosing Data Breach ‘Quickly’ Incur 40% Less Financial Loss: Report

SMBs which report data breach incur 40% less financial loss| Representation Image (Photo Credits: Pixabay)
SMBs which report data breach incur 40% less financial loss| Representation Image (Photo Credits: Pixabay)

A new report by the cyber-security firm Kaspersky has highlighted the direct relationship between the disclosure about data breach and financial losses suffered by the organisations. The report said that the small and medium businesses (SMBs) who decide to voluntarily inform about a data breach, on average, are likely to lose 40 per cent less financial damage than their peers that saw the incident leaked to the media. For SBMs who disclosed their breach to the public within due time reported an estimated loss of $93,000, while those who did not disclose themselves suffered $155,000 when the incident was leaked in the media.

The failure to suitably inform the public about a data breach in a timely manner can make the financial and reputation consequences of a data breach more severe, concluded the report. The same tendency has also been found to be the case in enterprises. The firms who voluntarily disclosed about the data breach in public incurred a loss of $1.134 Million, while where the information was leaked the firms suffered a loss of $1.583 Million, a 28 per cent more than the former. “Proactive disclosure can help turn things around in a company’s favour – and it goes beyond just the financial impact. If customers know what happened firsthand, they are likely to maintain their trust in the brand,” said Yana Shevchenko, Senior Product Marketing Manager at Kaspersky.

One of the real life examples is of Yahoo! The firm was fined and criticised for not notifying their investors about the data breach it experienced. Uber was also fine for covering up an incident of data breach. The firm surveyed more than 5,200 IT and cyber-security practitioners globally. The survey showed that organisations that take ownership of the situation usually mitigate the damage. Around 46 per cent of businesses disclosed a breach proactively. However 30 per cent of organisations that had experienced a data breach preferred not to disclose it. Almost 24 per cent of firms tried to hide the incident initially, but it was leaked to media eventually.

“Although minimal losses were reported by businesses that managed not to disclose the incident, this approach is far from ideal. Such companies are at risk of losing even more if — or more likely when a cyber-security incident is revealed to the public against their intentions,” said the report. It added that the risks are especially high for those companies that couldn’t immediately detect an attack. Nearly 29 per cent of SMBs that took more than a week to identify that they had been breached found the news in the press, which is double those that detected it almost immediately.

 

 

Categories
Startup

Traditional and Rural Enterprises: 5 Schemes by Government to Protect & Develop The Sector

Handloom Industry (Photo Credits: Wikimedia Commons)
Handloom Industry (Photo Credits: Wikimedia Commons)

Rural India has a variety of industrial set-up including cottage industry, single-unit manufacturing, small and medium enterprises among others, since long-back. The traditional industries still thrive and provide employment to many villagers and people in the nearby areas. There are several traditional industries which are viably operative. These include handloom, handicrafts, coir, cashew, beedi, tiles and bricks and other household industrial activities carried out in the rural parts of the country. Traditional industries are labour intensive, relying on skills passed on from one generation to another generation. Mostly these industries comes under the category of Micro, Small and Medium enterprises (MSMEs)

The MSMEs contribute about 30 per cent to India’s GDP In terms of exports as well, they are an integral part of the supply chain and contribute about 40% of the overall exports. MSMEs also play an important role in employment generation, as they employ about 110 million people across the country. Governments at various levels, time and again, have implemented various schemes in order to protect and promote rural entrepreneurship and traditional industries. Here are some the schemes imitated by the government for their development –

 

Prime Minister’s Employment Generation Programme (PMEGP) 

Launched by the centre in 2008, this scheme is a credit-linked subsidy programme undertaken to generate self-employment opportunities through establishment of micro-enterprises in the non-farm sector and providing help to traditional artisans and unemployed youth. The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the State level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.

 

A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

This scheme  was launched in 2019 to create new jobs and reduce unemployment, promote entrepreneurship culture in India, boost grassroots economic development at the district level, facilitate innovative business solutions, and promote innovation to further strengthen the competitiveness of the MSME sector. The scheme helps by providing for incubation and commercialisation of Business Ideas Programme through technical/research institutes, including those in the field of agro-based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

The scheme aims for the development of khadi, village industries, and coir clusters by providing them with improved equipment, common facilities centres, business development services, training, capacity building and design, and marketing support, etc.  The scheme invites applications from non-government organisations (NGOs), institutions of the Central and State governments and semi-government institutions, field functionaries of State and Central government, Panchayati Raj institutions (PRIs), private sector bodies by forming cluster-specific special purpose vehicles/entities (SPVs), corporate, and corporate social responsibility (CSR) foundations with expertise to undertake cluster development.

 

Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE)

It facilitates credit to MSMEs through collateral-free credit facility (term loan and/or working capital) extended by eligible lending institutions to new and existing micro and small enterprises.  The MSME Ministry and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises in order to implement Credit Guarantee Scheme for Micro and Small Enterprises. 75 per cent of the loan amount to the bank is guaranteed by the Trust Fund. It provides collateral-free loan up to a limit of Rs 100 Lakh for individual MSMEs on payment of a guarantee fee to the bank.

Credit Linked Capital Subsidy Scheme (CLCSS)

It facilitates technological development of small scale industries, including khadi, village and coir industrial units, by providing 15 per cent upfront capital subsidy with a upper limit of Rs 15 Lakh. Its objective is to upgrade the plant and machinery of small enterprises with state-of-the-art technology, with or without expansion, and also for new MSMEs, which have set up their facilities with appropriate, eligible and proven technology duly approved under scheme guidelines.

Apart from these, the government have certain other schemes aimed towards the development and conservation of the traditional industries in India. It also aims to keep the spirit of entrepreneurship alive and going in the rural area.

Categories
Startup

5 Ideas to Start-Up Business in the Transport and Logistics Industry

Transportation and Logistics Industry| Representational Image (Photo Credits: Pixabay)
Transportation and Logistics Industry| Representational Image (Photo Credits: Pixabay)

The start-up ecosystem is blooming in India. Several young entrepreneurs have emerged for the last decade, establishing businesses in various sectors. However, certain business areas remain less explored. One such highly profitable sector with huge potential is the Transport and Logistics Industry. Though the initial investment in certain cases is quite high, but the industry ensures long term and consistent returns. The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025.

A proper- well linked transportation system is utmost important for the development of any industry, specially the manufacturing, construction and warehousing industries. Without uninterrupted transport facilities, they are bound to be delays in movement of both raw materials and finished goods which leads to huge losses to the business. Not only for business, a robust transport system is essential for commuters to travel on a day to day basis.

Here are some start-up ideas for entrepreneurs looking to establish business in the transport and logistics industry –

Packers and Movers Service:

An all weather-viable business, providing packers and mover services never goes out of business. It is always in demand in every area, from village to cities to inter-state and inter-country moving services are required for people relocating. Despite a huge competition, with the increasing demand establishing business is comparatively easier in the field. Once you get the marketing right and create a trusted brand, you can dominate your designated region. This is a service that will always be in demand and doesn’t require too much initial time or money.

Bicycle Rental Service-

As the people are increasingly becoming health conscious and aware about the rapid environmental degradation, many are turning back to basics. They prefer using bicycles for short distances. Therefore, renting out bicycles is a thriving business, especially in dense urban areas and tourist hotspots.  Ideally the business will be a success if located somewhere near a hotel or resort so you can cater to the steady stream of tourists looking to sightsee. Alternatively, set up a bike rental subscription service near busy offices in metropolitan areas will be highly profitable.

Livestock Transport Service-

Transporting live stock including cows, sheep, goats etc., is another year long in-demand business. Various poultry, dairy and other animal centres need their livestock to be carried from one place to another. There is no license requirement to start the business While it’s the owner’s responsibility to get the livestock ready for transport, it’s your responsibility to make sure they get to their destination safely.

Delivery Services-

With increased online shopping, delivery services are increasingly becoming important. It has become an auxiliary to the e-commerce industry. In this operation, a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

Logistics Services-

A company dealing with detailed logistic services is a sure-shot profitable venture. It has a moderate seed capital requirement. Logistics is generally the detailed organisation and implementation of a complex operation. The primary focus area is providing the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer.

With the increased demand of transport for carrying goods and people from place to another, setting up business in the transport and logistics industry is a long-term and viable plan. As the country moves towards more and more development and becomes business-centric, transport and logistics industry becomes an indispensable requirement.

 

 

Categories
Startup

Here Are 4 Reasons Why Starting a Business From Home is Not a Bad Idea

Startup (Representational Image Only, Photo Credits: NeedPix.com)

Mumbai, November 27: Starting a business from home considered as a great time in today’s time. Although there was a time when a home-based business wasn’t taken seriously, compared with the usual 9-to-5. However, we can safely say that times have changed and COVID-19 pandemic has also contributed to changing the landscape of operating a business.

The pandemic forced offices to allow employees to work from home. It was then people valued and understood the concept of work from home. Here’s why starting a business from home is actually a good idea.

  1. Increasing Commuting Cost & Traffic Issues: We are all familiar with the traffic jams which we face every day on our way to commute. The situation in metro cities is worst, where employees are spending their majority time in travelling. So, here’s why this hassle can be overcome if you plan to start a business from home.
  2. Giving time to the family: If you are saving time on the commute, you can use that to spend time with your family and loved ones.
  3. No need to pay high rent for office space: The best part of working from home and starting your own business is that you don’t require to rent or buy an office space. Property is a very volatile market and companies spend a huge chunk of their income in paying office rent.
  4. Advancement in technology: Thanks to the ever-changing technology, your work will not be impacted even if you work from home. From good internet bandwidth to online meetings with colleagues, everything can be facilitated from the comfort of your home.

    These days, there are plenty of legitimate businesses that are being operated from homes across countries. These businesses have grown to create one of the largest, fastest-growing commercial segments in the world today. Modern technology makes it possible, easy, and convenient to do business wherever and whenever.

    Today, there are several options which are open for someone if one wants to explore the idea of starting a business from home. If you have an idea, what are you waiting for? Go ahead, and start it today.

Categories
Finance

Gold And Jewellery Industry Hopes to See Demand Recovery in H2FY21: ICRA Report

Gold
Gold (Photo Credits: Pixabay)

Mumbai, November 27: The gold and the jewellery industry expects a demand recovery in H2FY21. According to a report published by ICRA, the industry believes that demand will improve on the back of occasions like festivals and weddings. The gold jewellery retail industry had witnessed a sharp 64 per cent contraction in H1FY21.

A positive trend highlighted in the survey was that the opening of the stores post the coronavirus pandemic induced lockdown has seen a steady improvement in footfall although these were still much lower than last year.

The report further mentioned, “Further, factors like rising preference towards gold as an asset class, favourable rural output amidst good monsoons, expectations regarding the further rise in gold prices etc are likely to support demand in the next few months.”

The industry is grappling with a decade-low level of demand during FY2020, battling multiple headwinds like weakened consumer sentiments amid a sharp rise in gold prices, subdued rural output, and fall in consumer surplus.

Categories
Startup

Makeup Artist Business: Here Are 4 Things Which You Need to Remember If You Want to Establish Your Makeup Artist Career

Makeup artist
Makeup artist business (Photo Credits: Needpix)

Mumbai, November 26: The beauty industry is constantly growing and evolving. Every day new trends are emerging, and therefore, this is an extremely exciting space for those who want to establish a career in becoming a makeup artist.

There are certain things which need to be remembered if you want to establish yourself as a makeup artist.

Make a business plan: Chalk out a business plan, where you will have to ask yourself who will be your customers and the what kind of makeup services you will provide. At this stage, also assess the budget and the expenses that you will have to make in order to establish the business.

Learn good make up: Remember, it is a very competitive field and thanks to several tutorials available online, consumers today are well-informed of the latest trend. It is very important to hone your skills.

Marketing: In today’s age and day, the majority of your customers will find you on social media. So it is very important to be present on all the platforms where your competition is there. Highlight your skills and market it well.

Create a relationship with your customers: Makeup business is about creating a bond with your customers. It is very important to make them satisfied with your service. Post which, they will share it on social media and share their experience with their followers on the online forum. Make them feel special, add something extra and customise as per their requirement.

 

Categories
Startup

Festive Season 2020 Sees Around 40% Rise in E-commerce Volumes Amid COVID-19 Pandemic, Growth Similar to Last Year

Online shopping
Online shopping (Photo Credits: pxfuel)

New Delhi, November 26: We have seen how COVID-19 has been a major roadblock to every category this year. The world saw the adoption of online technology and sales amid the coronavirus outbreak. A report by financial services major, Bernstein said that the festive season has seen a 30 to 40 percent growth in e-commerce volumes with overall growth similar to that witnessed last year.

The report further mentioned how in the festive season some categories seeing the strength and some others still down year on year. Another interesting read was that there were no major supply constraints this season suggesting adequate channel re-stocking.

Another interesting trend in the report was that tier 1 and 2 mainly comprised of existing shoppers who are buying more, while Tier 3 and 4 reflected new online shoppers. Apparel (including footwear and sportswear) continued to be the largest category in e-commerce. The number 2 category was filled by consumer electronics like mobiles, laptops and others.

Another positive factor highlighted in the report was that people have been increasingly comfortable buying things online. The sharp reduction in return orders which declined by over 25 per cent, and is a good indicator of increased consumer engagement with the online platform and also reflects the quality of growth.

Categories
Startup

5 Biggest Challenges Faced by the Cold Storage Industry

Cold Storage (Photo Credits: Pixabay)
Cold Storage (Photo Credits: Pixabay)

Cold storage business is important in ensuring the smooth operations f other industries. Proper storage is crucial requirement for firms that deals in perishables goods, without a proper inventory storing place their entire produce will go waste, and so will all the financial and human resources invested in the production process. According to a report by Crisil, the cold storage industry is expected to grow at a CAGR of 13–15 per cent till 2023, mainly driven by rising demand for processed food, fresh fruits & vegetables, seafood and bio-pharmaceuticals in exports markets. Though the initial investment in a cold storage plant is huge, and involves a lot of paperwork but the business surely ensure continues long term returns, once established.

Despite the necessary nature of the industry, the progress of cold storage in the country has also been extremely skewed.  As per the NCCD data for 2019, Uttar Pradesh contributes the maximum cold storage space in the country, around 33 per cent followed by Gujarat at 15 per cent. A cold-storage owner has to face several problems – legal, administrative, operational, and environmental – to keep the plant functional. Here are some of the problems the cold storage plants face-

  1. Infrastructure –

One of the biggest initial challenges is to build a suitable infrastructure for the cold storage plant, itself. It requires careful identification of location of the plant, which is not too far from the production outlet and is connected through a proper transportation system. Once the location is chosen, well trained and specialised workers are required for its construction. They should have knowledge and experience in fitting and installing the freezers, condensers, and other devices. It requires huge financial commitment as well.

  1. Workers Protection-

Another challenge is to keep the workers well protected all the time. People working in refrigeration facilities need to stay warm, so proper protective gear should be made available to them. The workers are highly prone to get ill because of extreme working condition and environment. They deal with electric equipment on daily basis; cases of electrocution have to be accounted for.

  1. To maintain the product temperature-

Each product has its own temperature for it to stay fresh and consumable for long term. However, every time a product is placed in the warmer area from the freezer zone- for example, when it needs to be picked and palletized- it loses its required temperature and gets warm. So when the product is brought back to the fridge after being out for some time, it needs to be carefully put inside by to maintain the temperature so that it does not get spoiled or unfit for consumption.

  • To Maintain Different Temperature Zones-

But maintaining a cold storage plant is actually a lot more difficult than that. For example, depending on the type of product being stored, different areas of the same warehouse need to be stored at different temperatures- fresh products should be kept at 12.778 degrees Celsius, dairy products should be kept at 1.11 degrees Celsius, meat should be stored below freezing at -2.22 degrees Celsius, Ice cream should be at – 23.33 degrees Celsius.

  1. To Change Temperature Zone Sizes-

All at once, the size of various temperature zones often needs to be scaled up or down depending on the number of products. In traditional warehouses, layout relocation is relatively straightforward- one can move or stack material pallets until they are in the right place. But with the cold storage plant facilities, the temperature has to be taken into consideration. The modular curtain wall system is the method by which the problem can be solved.

Continuous and coordinated efforts and investment go into the maintenance and proper functioning of a cold storage plant. There are several challenges a cold storage owner faces from day to day, be it employee health, maintaining proper temperature zones, government clearances, ensuring product quality among others.