Tag: bada business

Categories
Finance

Common Challenges Faced by a Small Business While Seeking Funds

ऑनलाइन बिजनेस
ऑनलाइन बिजनेस

Running a business comes with a number of hurdles and challenges for a business owner. One of the most important and common issues for business failure is lack of capital to keep the business in operation. Educate yourself and understand the small business challenges in financing to avoid making these mistakes.

1. Lack of Capital

  • This is an important reason why start-ups often fail. The business owner doesn’t have a credit history or a track record that can help the lender evaluate the business and its creditworthiness. Having no track record does not mean that the business has no merit; it just means that the lender does not have anything to evaluate or compare it with. The lender needs to evaluate whether you can use the credit successfully. A study shows that business owners who have a better understanding of their business credit score are 41% more likely to get a business loan. Certain you need to keep in mind while asking for finance for your business:
  • The track record and business credit line will take time to build.
  • Analyze your business credit card and credit score.
  • It is easy to get qualified for a small credit value so maintain it and start building a good business credit profile. Make sure that you have good credit behaviour.
  • Try to get trade credit from your vendors and suppliers; it is one of the great ways to build a solid credit profile. You can show your suppliers and vendor’s credit track report as a good history to your financer.
  • Build a personal and business balance sheet supported by the income tax paid to justify your track record.
  • Create a detailed small business challenge plan that focuses on scalability, market size, product development, competition, and marketing strategy. This road map will help you to drive smoothly for the future. The idea is to anticipate challenges and work towards strategies that can help you cross these hurdles.

2. Difficulty in demonstrating you have the income to service debt

  • The financer always wants to know about your ability to service debt. They are more focused on whether you can make periodic payments or not? It is unlikely they will approve your loan if you and your business do not meet their income bracket or cash flow requirements.
  • There are many other sources of capital that do not require the same credit details.
  • A microloan can be a good option for you if you have the ability to leverage a small amount to produce a big result.
  • Crowd funding can be another option if you have a solid business idea.
  • Spend time to create a solid pitch and presentation which can motivate the crowd to donate.

3. Understand your financial reports

  • A common small business challenge is that some entrepreneurs don’t understand their financial reports. The financial report shows you the health of your business. Generally, you don’t have to be an accountant to understand it but you should be familiar with the metrics of your business accounts. Your financial report or the cash flow is critical to monitor the health of your business and it clearly indicates whether your business is ready to raise capital or not.
  • If you are not very good with accounts, you can always hire a charted accountant, an expert who can identify the potential gaps to improve your business profits and maintain a healthy cash flow.
  • To address the financial challenges, review, research and revamp your business plan again and again.
  • Dive more into your financial report to understand the numbers and to avoid any financial challenges in the future.

Overspending, a poor capital structure and lack of reserve funds are the common reasons why a small business owner fails. According to the Small Business Association, around 44% of small businesses survive for at least 4 years and then the business owners fail due to the immense financial challenges faced by them. So before seeking finance, try to work on the weak areas of your business. It is not that difficult to eliminate these small business challenges if the business owner exercises little caution and invests his time wisely to focus on the above tips.

Categories
Business motivation

Sales Motivation Tips to Improve Employee Productivity

5 Tips to Boost Your Sales
 

To motivate your sales team, managers need a thorough toolbox of strategies to push their top players, develop mid-level individuals and keep the group concentrated on accomplishing aggressive growth targets. 

 

Sales personnel that have vitality and certainty are successful, and leaders know how to keep the morale high whether a business is at its peak or in a droop. Since motivation is an immaterial quality, sales pioneers need a few unique strategies and use innovative sales motivation tips that are customized for their sales force.

1. Open the doors for small steps forward every day

The intensity of small successes is a touch of good karma for sales motivation and versatility during times when deals aren’t streaming in. Research by Harvard Business School shows that small successes help building a positive mind-set and inspires an employee to perform better. Managers should empower and recognize individuals from their sales team who are taking small steps towards the objective. For instance, getting even one constructive email reaction from a lead that the salesperson has been following up for months can light up his mindset drastically. This sales motivation tip can help your sales team to boost them with energy and encourage them to achieve more. Every sales manager and the team should go through the ’Small achievements’ graph as a daily sales motivation tip to boost their workflow and achieve the targets.

2. Recognize and reward the sales team publicly
 

Do you recognize the whole team for their contribution and praise their achievements such that the entire organization can remember them? For decades, analysts and researchers have discovered that public display of thankfulness and appreciation can be more motivating than compensation or salary. So make this a practice in your organization.

How often do you utilize these daily sales motivation tips and strategies:-

 

  • Praise your people at group gatherings or team meetings
  • Grant the “most significant or valuable player” status each quarter
  • Yearly acknowledgment with financial rewards and trips
  • Little honors and prizes that are lined up are appreciated across the board
  • Sending an email expressing gratitude towards them for closing a deal whether big or small can do wonders for salespeople. 

For example; Dr. Vivek Bindra
works hand in hand with his employees to make sure they get recognized and rewarded publicly in the organization with yearly outdoor trips, incentives, bonuses, and other perks. This activity is done by the management to motivate the team to work positively and is an integral part of his entity Bada Business. He makes sure that his employees feel happy while working in the office. As a renowned corporate trainer to various companies, Dr. Vivek Bindra has been instrumental in bringing about the culture of rewards and recognition in many organizations which has helped them become employee-friendly. 

3. Value your representatives and team (and ensure they know it)
 

A key driver for inspiration and motivation is having a great self-esteem at work. Research by the American Psychological Association reports that 93% of representatives who felt respected at work likewise felt motivated. The study discovered top five factors that help in making an employee feel an esteemed part of the company: 

 

  • Chances to be engaged with dynamic and decision-making
  • Potential for development and progression
  • Opportunity to use adaptable work courses of action
  • Sufficient fiscal remuneration
  • Non-monetary prizes

 

4. Connect the present activity with tomorrow’s professional objectives

Have a conversation with each of your teammates about their future objectives and assist them with setting up a way to arrive at them. Regardless of whether it is to ascend in the organization, progress to another industry in five years or bag a position as a Sales CXO in the top 100 companies in India. This sales motivation tip will help them discover the approach to not only fulfill their short-term goals but also try and meet their long-term objectives.

 

5. Equip your workers with extraordinary marketing content and collaterals
 

Does your sales team have access to blog posts, contextual or case studies, recordings, websites, videos, and whitepapers? 57% of sales representative studies referred to high-quality content as a significant instrument to drive deals. 

Providing appropriate learning content shows that your organization recognizes its necessities and is focused on devoting assets to help the sales team. Additionally, salespeople are often eager to receive new and high-quality content since it brings a variety into their discussions with clients and makes their work progressively proficient. Dr. Vivek Bindra, who is Asia’s best motivational speaker and a business coach, provides extraordinary content to their sales team to approach the customers confidently and achieve the numbers. This sales motivation tip can boost your team with positive energy and motivate them to work smartly. 

This sales motivation tip also ensures that the content with your sales team is up-to-date and convincing. You can likewise invest in instruments and tools to simplify the collaterals; as normally organizations might store information or content that is not easily accessible making it hard for representatives to look for them

The best project or sales manager finds out every possible way of sales motivation tips or strategies that are best for every individual in their team. It takes a unique mix for every individual depending upon their level of experience, career objectives, personality, and client associations’ to find the correct formula that can turn them into connoisseurs of the sales function. When a leader starts to see successful results, it’s that time he needs to keep the momentum going so that the performance remains high throughout the year. As a business owner, if you want your team to meet their targets as well as see the personal progression, then you must consider these above sales motivation tips.

Categories
Marketing

How to Design an Exhibition Stand for Your Business

How to Design an Exhibition Stand for Your Business
How to Design an Exhibition Stand for Your Business

The perfect ways to design an exhibition stand for business

It is very important to represent and present your business at events. To attract the interest and attention of the target audience and customers towards your brand, your presentation at business events matters a lot. Through your exhibition stand design, you can create a long-lasting and strong impression on your potential customers at such trade shows.

The first impression is very important when it comes to attracting audiences. There is no point in having a good service or a quality product if you are not able to catch the eyes of your target customers.

Here are a few ideas to plan the perfect exhibition stand design for your business that you must implement:

1. Define the goal of your exhibition

First of all, you need to analyze the purpose of participating in the exhibition or a trade show. Before designing the exhibition stand, set a clear goal of what you want from the design. Make sure your exhibition stand design communicates the message to your customers. Include your brand image and values to design the exhibition stand. Think about the product, value proposition and the imagery associated with your organization.

2. Design the stand for your audience

Always remember that you are exhibiting for your audiences. You should research your target audience thoroughly before taking part in any exhibition. You should always focus on the taste and needs of your target audience and build an exhibition stand design on those criteria. Define your target audience and their needs before you get onto the planning stage of designing your exhibition stand.

3. Maximize your space

A perfect dimension makes the exhibition stand design more attractive. Always try to take full advantage of the space when you design your exhibition stand. Do check the dimensions of the space given to you by the event organizers. The height and place of the stand on the floor is an essential part of your design. Make sure your signage and logo are visible to your audience. Try not to have any physical barriers in front of your exhibition stand.

4. Message on your exhibition stand

People walk by many messages in a trade show or an event and they don’t have the time and energy to read all of them, so you have to make sure that your message should be crisp and short to understand and grasp. Your message must have the ability to catch the eye of your audience. Try not to use long sentences; be creative and concise so that it can grab the attention of your audience. Your message needs to be clear with a large font size to make sure it is readable.

5. Graphics and images

A perfect image for your exhibition stand design is more impressive than using an entire phrase. A good image or graphic can help in conveying a complex message easily. Try to resume your brand values in one powerful graphic or image. Just keep your customers in mind and analyze what they like to respond to.

The placement of your image is also very important. Make sure the image or graphic of your stand can be seen from a distance and should be clear and attractive to grab the attention. The message should be transmitted in a smart, creative, and innovative style.

6. Tech-up your exhibition stands design

You can always consider modern technology that goes with the exhibition environment to attract the audience; this will also give pop and modern look to your exhibition stand. You can use digital signage in front of your space or a touch screen exhibition stand to make people aware of your brand.

Implementation of technology can help you attract more public but also inform your audience about your product in a unique way.
7. Let your audience interact with your product or service

Now, this is the best chance to test your product and analyze how your target audience reacts towards using it. Try to focus on the real values that your brand can offer to the audience. Create a buzz around your product and services with the exhibition stand design. Take feedback and distribute gifts to the people who are showing interest in your product.

You can also have a one on one interaction with the people coming to your booth. Have a quiz play with your customers to make them discover the benefits of your brand and product.

By following and implementing the above-mentioned tips and designing techniques the exhibition stand can create a strong impression on your target audience. Design an exhibition stand that not only creates brand awareness but is helpful in attracting a good number of leads.

Categories
Startup

How Can Startups Overcome the COVID DownTurn

Top 5 things startups must do to overcome Corona downturn

Most of the startups were not prepared for this tough period and are now fighting it hard to find ways to survive and remain afloat. Raising capital has become tougher than ever before and the buying sentiment of the consumer is at an all-time low. 

COVID-19 is a global emergency with every industry being hit. Retail chains are shutting down, companies are filing for bankruptcy and unemployment is at its highest. Work from home has become the new normal. The situation is very grim for small entrepreneurs who have fewer cash reserves to manage the sudden lockdown and the impact the downturn it has created. These effects of closure will also have a huge impact on our economy.

Here are 5 things that a startup must do to overcome this downturn:-

1. Runway and burn rate

  • Make a plan for the next 3 months, 1 year and 3 years of survival as the economy will take some time to get back on track.
  • Take all the stock of your current gross burn rate and calculate how much cash you are spending every month? How much-fixed expenses do you have? And how much money goes into variable expenses?
  • Take a look at your actual revenues, Make sure you don’t forecast, have real numbers.
  • To get the net burn rate, subtract your monthly gross burn rate from your revenue.
  • Check all your accounts and see how many months your company can survive in corona downturn
  • Calculate your runway to last until you raise your next round of capital.

2. Diversify your business

  • It is a good idea to diversify your business in this tough time.
  • It is always good to have different sources of revenue so that you can save your existing business and pay your employees too.
  • Go digital, take your products and services online. Since you already have a set backend, building on new functions like delivery, online payment, etc. should not be such a difficult task.
  • You can start an online service like; a paid webinar, online coaching, can make viral videos. You can also try your hand in food retail or can partner with some healthcare company. 

3. Line of credit

  • Taking a line of credit can be very useful for your business. Line of credit is a business loan where the moneylender fixes the upper limit and the borrower can take any amount within the upper limit at any time. The interest will be charged on the amount that the borrower uses. This service can help you in securing your business.
  • Try and take a line of credit as soon as possible as post lockdown financial institutions might be strict on providing loans easily.

4. Employee safety is paramount

  • For the entrepreneurs, it is your priority to keep your employees and customers safe
  • Start with changing the employee policy based on the situation.
  • Let them know that the company cares for them and they are safe.
  • Try to engage them in multiple functions. You may not know about the hidden talent of your employees.
  • Try to motivate them and ask for their support.
  • Keep a daily track report of their work and analyze their potential.
  • Ask your team to share creative and innovative ideas on a regular basis.

5. Be proactive and focused on profitability

  • Raising money is easy when the economy is strong but in recession, it can get worse.
  • Try to eliminate side projects, new ventures or any underperformance unit.
  • Focus on your employee performance at the top to contribute to the company.
  • It is important to understand whether they are default alive or default dead. It is also a good way to measure the health of your company.
  • Try and cut down on all your extra costs if your office is on rent either request the landlord to reduce it or try and shift to a cheaper office space

As the future is uncertain, it is always better to be prepared for the worst. One thing startups must do is to be flexible and move with the tide. Innovative processes increased productivity can change the tide for you once normalcy returns. Recessions are cyclical by nature and entrepreneurs can make up for lost value once the economy improves.

Whether or not a recession happens, it is likely that the virus will affect your business directly or indirectly. The best way to handle the impact is to be prepared for it, both within your business and beyond. Discuss the impact with your employees. This is not the time to panic, but rather prepare for the challenges and opportunities that will be thrown at you. 

Categories
Process & Business Expansion

How to Manage Your Inventory Effectively

बिजनेस
बिजनेस

Tips for Retailers to Manage Inventory Better

Inventory management is one of the most important parts for a retail business Paying attention to your sales data and inventory details is very crucial for the smooth running of your business operations. The objective of inventory control is to strike a balance between sufficient stock and over-stock. The stock maintained by a business entity at a particular point in time should be sufficient to meet the production requirements so that uninterrupted production flow can be maintained at all times. 

Here are some top inventory management techniques for entrepreneurs:
 

1. Use Barcode Reader 

  • Keeping track of inventory is a cumbersome job. These days it is very difficult to keep a record of inventory flow without any software. There must be a proper record-keeping system for all the stock one is holding. Using a bar code reader for inflow and outflow of the stock is one of the best inventory management techniques one can opt for.
  • There are EAN/UPCs printed on most of the products, barcode reader device can scan the EAN or UPC and adds the inventory to the software it is linked to. This way you’ll be able to see the entire inventory on your computer screen with just a single click. For any outflow of inventory similar process should be followed. This way the retailer will be able to see the current on-hand inventory at any point in time.
  • Along with inventory management, daily sales reports can be generated with the available data. You just need to subtract today’s opening stock with yesterday’s opening stock you’ll get the sales numbers for the day.   

    

2. Inventory Racking System

  • Retailers cannot keep the entire inventory on a single pallet. It needs to be segregated to the designated areas and that too with proper labeling. For example ’ in grocery store daily household items like bread, biscuits, chips are kept near the counter as they are perishable and sell out very quickly. Desi Ghee will be kept on a separate rack as it doesn’t move out that frequently.
  • Labeling the racks and pallets helps in creating a separate section for similar products. This way at the time of order you will know which items are placed where and picking & packaging will be done more efficiently.

Segregation of stock proves to be the top inventory management technique because: –

A. Saves time in picking and packing of the products.

B. One can easily find out which items need reordering by just looking at the designated section.

C. Popular FIFO (First in First Out) inventory system can be easily executed.

3. Improve stock ordering

Ordering the right products by keeping your customers’ needs in mind is indispensable to ensure proper inventory management. For this, it is important to keep an eye on how products are moving and to observe how customers are interacting with your merchandise. For example, the average normal usage of a material component A is 50 units per week.

4.  Physical Stock Check

  • With barcode readers and Proper Inventory Systems, the retailer can do inventory management very effectively. There won’t be any issues finding:

?
On hand inventory

?
The bestselling products

?
Products to be reordered

?
Slow-moving products

  • Regular check on the physical stock is required to make sure the inventory showing in the software matches with the actual inventory status. There could be a situation when the retailer forgets to mark the inward stock by barcode and it will not show up in the software, whereas the stock is physically available in the store. Similarly, any miss in the scanning of outward supply can show the inventory in the software but won’t be available physically. Building a strong inventory management technique checklist to fulfill the complete requirement of physical stock checking will help in resolving this issue.
  • To overcome such a situation the best inventory management technique would be physical stock check. No doubt it can be a little time taking activity but is worth the effort. The monthly physical stock check should be a regular practice for a retailer who wants to do the best inventory management technique. 

5. Know the Minimum Stock Level

It signifies ’at least how much to stock’. Every business entity must determine the minimum level of stock required by it. It is the lowest level of material stock, which must be maintained in hand at all times so that there is no stoppage of production due to the non-availability of stock. Suppose the average normal time taken to get an order from supplier to the stores, known as lead time, is 5 weeks. Here, the minimum stock level that must be maintained all the time for material A would be 450 units ’ (50 units ’ 5) = 200 units. 

6. Know Maximum Stock Level of the business

It is important to then determine the maximum level of stock for a particular business. It signifies ’up to how much to stock’. It is the highest level of quantity for any material/inventory item which can be held in stock at any time. Any quantity of stock beyond this level leads to an extra amount of expenditure due to the engagement of funds, cost of storage, obsolescence, etc.

7. Set the level of buffer stock

In any business, some quantity of stock may be kept for the contingency to be used in case of sudden orders. This stock is known as buffer stock.

Almost all businesses today are moving their base online. When the flow of sale and purchase rises, the retailers need to keep track of the top inventory management techniques discussed above to create a flexible functioning of the business.

Categories
Startup

Passion or Experience: The Right Ingredient For an Employee

Should Startups hire based on experience or passion?

A Startup is an initiative/ business started by like-minded entrepreneurs who have an ideology that form the basis of tis startup. The business is focused on solving some problem of the consumer, by either providing intangible services or by providing an evolved product as per the demand in the market. 

Now the question arises, ’who should the startup hire to be a founding member of their mission and also be an active contributor in achieving their goals as well?’  Before hiring an employee, it is the foundation of every company that defines the future of its existence. The foundation mostly depends on the management team that plans, strategizes and recruits employees that could work in their interest with passion and with a pinch of experience. With both strings attached, a startup could do wonders.

Some advantages of a passionate worker over an experienced employee are:

  1. A Passionate Employee is often better than an Experienced Employee as they will go above and beyond to prove themselves that they could excel, whereas an experienced person might not be so willing to prove himself as his belief lies in ’experience speaking for itself’. 
  2. An inexperienced Employee who is very passionate towards their work joins as a clean slate and can grasp all duties and information more effectively than to a person who is coming from an experienced field with multiple ideas.
  3. A Passionate Employee with limited experience will have a fresh, different work or ideas to get the task done. On the other hand, an Experienced Employee will only stick to the stereotype framework that he has been following since ages.
  4. Passionate people may tend to be loyal and gel well with the chaos that comes with working in a startup and trusting them boosts their morale. Experienced people tend to move out for other opportunity that steps their way as soon as possible.
  5. Even though the salary that a passionate employee gets is not that high but they don’t define their work as per what they get paid, but for an experienced person compensation is first priority and defines their work.
  6. Passionate Employees are likely to improvise and learn new skills thus helping them to multitask which can be helpful for the employer as well.
  7. Passionate people like to work as a team indulging and motivating other employees as well. Unlike Experienced Employees who focus only in highlighting themselves and not necessarily will be team players.
  8. An Experienced Employee will join a startup with a motive to get a promotion as per their past experience, but a passionate employee would be focused more in work and self-learning for the betterment of the company.

However, this does not mean that experienced employees should not be hired at all, because the experience they bring with them can help in scaling a business faster and keeping the costs at bay. Hence, benefits of years of experience cannot be matched by the sheer passion for working.

Therefore if you want to hire leaders in an organization, an experienced employee is needed to hold the fort. But to build a team you need passionate employees who can steer change and help you achieve the targets. Slowly steadily these employees will also grow and become leaders in the organization and train many more who join.

Hiring culture today has taken a turn towards getting onboard employees who have a positive attitude towards the company they are going to work for. It is difficult to differentiate between the two characteristics as both these employees have their own benefits and disadvantages at the same time. It purely depends on the company’s stage of growth and the plan they have devised for scaling, so keep an open mind for both- as passion and experience together can make for a deadly combination.

Categories
Motivational

8 Traits That Can Turn You Into a Successful Entrepreneur!

बिजनेस टिप्स
बिजनेस टिप्स

Eight Remarkable Entrepreneur Characteristics That Create Success 

Do you know how few business owners achieve the pinnacle of success? These entrepreneurs take risks, work hard and have complete faith in their ideas when no one else believes them or is by their side.

According to business management experts, successful leaders have certain characteristics that set them apart and are important to create a successful business.

Some successful people born with certain qualities like; intelligence, intuition, drive, and vision but in many cases, people imbibe and inculcate these characteristics of a successful entrepreneur to change their fortunes and be persistent with their dream.

These 8 characteristics of a successful entrepreneur separate them from the crowd:-

1. Passion

Entrepreneurs face so many ups and downs during their venture set-up. So it’s their undying passion that drives them all through.

  • There is no doubt that these people are passionate about their idea and product. Being passionate helps you to keep working on something without giving up.
  • Passion is important to start and drive the business. If you are not passionate about your work than this game is not for you. According to successful entrepreneurs, passion is one of their biggest assets. It gives you a boost and keeps you going when everything seems to be falling apart. Being passionate about your business makes you see a positive angle of everything.
  • For example; Dr. Vivek Bindra (Asia’s best motivational speaker and a business coach) is passionate to change the country by using his business knowledge and content. His passion drove him to think about the burning problem an Indian entrepreneur faces and he set up Bada Business to solve these challenges and critical business problems of the ‘Real Bharat’ entrepreneurs.

2. Risk-Taking

Successful business owners are not afraid of taking risks. It is probably one of the most daring characteristics of a successful entrepreneur when you think about it, but it can be the most rewarding as well. However, not every risk taker is successful, calculating and evaluating the risk is key here. Great business owners know that there is light at the end of the tunnel always.

3. Flexibility

Flexibility allows business owners to understand how to adapt their business to new market demands and needs. Sometimes, it is important to stick to your business plan but be flexible enough to adopt new changes to achieve the best results. Intelligent entrepreneurs can gauge the changing market conditions and preferences and hence are fast enough to change their product and optimize it too. For being flexible, you must welcome and be open to new ideas and suggestions from other people.

4. Self-Confidence

  • This characteristic of a successful entrepreneur does not let them doubt themselves. They are always positive and ready to take on the challenges. They know that if they don’t trust themselves then nobody else will.
  • However, many people confuse confidence with arrogance and don’t understand that sometimes arrogance leads to business failure too.

5. Management Skills

  • A successful entrepreneur knows how to delegate different roles without causing any confusion. They assign roles to the right individuals who are capable enough to handle it, and this helps the business to operate smoothly.
  • Management skills cannot be learned overnight. Patience, basic intelligence and a bit of experience of handling situations can teach you the art of team and task management.
  • You can join the Bada Business mobile app to learn all the basics of management skills and how to grow your business by imbibing some of the characteristics of a successful entrepreneur.

6. Networking Skills

A successful business owner never walks alone. They always choose to have the right connections. They generally focus on two key things while networking.

  • A successful entrepreneur always focuses on the people who can help them grow; business owners who have customers, vendors, clients or other stakeholders that add value to their business. Specific and targeted networking is productive and can help in the long run.
  • A successful entrepreneur always remembers to add value to other people. When you add value by helping them, they will find ways to help you in return. This procedure takes time and will surely payback.

7. Financial Management Skills

Successful business owners understand the importance of finance for their business. Most businesses fail because of poor cash flow management. However, it does not mean that every entrepreneur has to be an expert in financial management rather you just have to understand the basics of the finance in business and the resources that can help you with it. If you are thinking on how to learn the art of financial management, through our Everything about Entrepreneurship product you can learn every nuance of managing your business finances in a simple and easy to understand format.

8. Grit

A successful entrepreneur never gives up easily and fights for the survival and prosperity of their business. Even when the conditions seem to be tough, they will strive to come out successful.

To become a successful entrepreneur, these characteristics are most important. If you dare to take risks, are passionate about your work and willing to adapt new things, you will definitely march towards establishing a successful business.

Categories
Finance

Don’t Mess Up Your Credit Score

एक्सपोर्ट

Benefits of Maintaining a Good Credit Score

Much before the existence of banks, the trend of lending money with a huge interest to be paid has been practiced in our society since the very beginning. Settling these debts has turned burdensome for many due to the borrowing rate being agreed upon resulting in them losing everything they owned. But today, the whole concept & mindset associated with borrowing and funding has changed drastically. With the emergence of banks, borrowing money turned things in a favorable direction for business owners as banks offered money at a lesser interest rate which motivated people to focus more on their work rather than paying interest. 

For applying loans such a business loan or even a personal loan for that matter, the bank goes through some guidelines that help them to figure out which person is entitled to get a loan or credit. And for this the Credit Score of an individual or a company is very important to determine the eligibility and amount of credit to be given. 

Now the question arises, ’What is a Credit Score’?

Credit Score is an evaluation representing the creditworthiness of a person which is primarily based on digging up a person’s credit file which is linked with one’s bank account. 

To be very honest, we cannot imagine our lives without a credit card these days. Therefore it is very important that we don’t mess with our Credit Score. 

We are fortunate enough to live in a time where one can get loans disbursed to their bank account in a matter of minutes that too with minimum documentation, all thanks to the world of technology. It is important to keep a check on your payment due dates and make all EMI payments on time to maintain a good Credit Score. Failing to do so, your score can drop to a Poor credit score or a Bad credit score category.  

Credit Score can be judged by the range they fall into i.e., 300 to 850, giving a clear reflection where you lie.

  • Good Credit Score ’ More Than 650
  • Average Credit Score ’ 550 to 649
  • Poor credit score ’ 300 to 549

Maintaining a good credit score can be an uphill task for many as there are lots of things one may be doing wrong without even realizing it.

How to overcome a bad credit score which can adversely affect your borrowing capacity in during bad times:-
 

1. Frequently check your Credit Report:
In our busy schedule, we sometimes tend to overlook basic things that have a huge impact. One should be willing to invest some time to check their Credit Report to avoid any crisis or fall in your credit score due to unknown reasons like frauds which can be rectified. By keeping a constant credit check, you can avoid the slippage to a Poor credit score by acting on time.

2. Failing to pay EMI’s:
  Your credit score largely depends on your payment history. The borrowers must keep track of the due dates and act fast by setting a reminder so that it doesn’t slip from your mind. Paying late EMI’s every time can result in a Bad credit score. 

3. Applying for high-value loans:
If you wish to apply for a high-value loan, it would be better to waive of at least 50% of your past EMI’s or Loans that are running as pilling up of credit can result in lowering your Credit Score.

4. Full Payment of Credit Card Dues:
If you have a poor credit score, you can definitely improve it by paying the full amount of your credit card along the way.

5. Credit limit:
One should try not to increase their credit limit if they have an average or a bad credit score as it can act as a burden paying it later on. One should try paying their bills on time to achieve appositive Credit Balance. In this case, the bank itself increases your credit limit if you are found to be a responsible borrower.

By keeping a check and bringing down unwanted expenses that can be undertaken later is the best way to handle your Credit Score. 

So if you want that your credit score remains above average and favourable for borrowing, make sure you adhere to these recommendations given above as you never know when would you need money for business. 

Categories
HR & People Management

A COMPLETE GUIDE to Small Business Payroll

मार्केटिंग टिप्स
मार्केटिंग टिप्स

How to step up a payroll process for your business?

Setting up a small business payroll can become very stressful if carried out in an unsystematic manner. One mistake can cost you a tough time with the tax department. Also, the process is based on your business type and the number of employees you have.

We provide you a complete guide to set-up payroll for your small business:–

Planning for small business payroll

When you set-up your business, taxes and the complications associated with payroll is probably not the first thing that comes your way. But payroll is a critical part of the management and financial side of entrepreneurship. Before this process becomes a burden, it is important to start planning for your small business payroll. First of all, you need to understand whether you need a payroll or not. For instance, you need not have a payroll to pay daily wages.

A payroll system comes with 3 important components; 

  • Paying the workforce
    ’ Paying the right amount and scheduling it in the right way is an important factor for employee productivity and satisfaction. This component includes; tracking working hours, processing withheld taxes, issuing paychecks, and crediting the amount directly to the employee’s bank accounts.
  • Preparing and paying the payroll-related tax
    ’ It is important to submit those taxes to the relevant authorities and government that is deducted from your employee’s salaries.
  • Filing Taxes
    ’ Filing taxes is no doubt a time taking task for every business owner. You can file taxes monthly, quarterly, and on a yearly basis; subject to the size and flexibility of your business.

Methods to set up your payroll process

1. Manual
’ Companies that have a handful of employees prefer to do it manually. For effective results, you need to create a spreadsheet to track the employee’s work hours, then calculate the taxes and proceed with the paycheck process. Besides, you need to calculate and file payroll taxes manually. This process is suited for small businesses that have limited employees in their company. You can very well opt for the manual process if you are a finance savvy company with up-to-date information on tax deduction.

  • Pros-
     The manual process is a cost-effective and a good fit for your business if you have complete control over your employee’s earning and tax filing.
  • Cons-
     This process is time-consuming with the potential chance of errors.

2. Hire an Accountant
’ If you want to set-up an in-house payroll process then an accountant is a great help for your business. You can hire a full time or a part-time accountant for your small business payroll process; depending on the size and the number of your employees working. 

  • Pros ’
    You can save your energy and time which will allow you to then focus on other important things to grow your business. Because the accountant has adequate knowledge of filing taxes and the process involved, there will a chance to have fewer errors.
  • Cons ’ 
    This option gives you minimal control on your financials. It is a bit costly for a small business that is keen to minimize expenditures.

3. Install a Payroll Software
’ The purpose to have payroll software is to automate the process of paying your employees. This process includes; computing the employee’s benefits, filing the taxes, preparing their pay slips, regulatory compliances and all other functions related to small business payroll. The correct payroll software will help you set-up your business and employee information on the fly. Invest time to set-up the right payroll software to save money and efforts.

Small business Payroll software helps you to speed up the payroll process and lets you keep a good control on your business financials.

  • Pros ’
    Small business Payroll software takes away the worries that come with the payroll process. You can start processing the payroll at the click of a button. It provides accurate tax calculation and regular updates. Most of the payroll software comes with a one-time price and data security. The software gives you complete control over your process, saves time to focus on the other important aspects of business growth. 
  • Cons ’
    Like any other application, payroll software also requires learning and understanding of the procedures. It is important to train your staff on how to use the software.

4. Outsourcing the payroll
’ Outsourcing the payroll process is like having a virtual accountant who is responsible to take care of your payroll tasks. Outsourcing the payroll is all about submitting the right information and a timesheet of your staff to your service provider; they will calculate and pay your employees. The service provider will prepare and file the taxes to the relevant authorities. The outsourcing small business payroll service is ideal for an organization that has a large number of employees. 

  • Pros ’
    Outsourcing the payroll process can eliminate the possibility of errors and delayed payments that can later attract penalties. As they are the experts in the payroll process, their process will be accurate and efficient.
  • Cons ’
    Communication between the service provider and the employer is critical to avoid the errors. It is also important that your service provider is up-to-date with the employee’s information and state tax laws.

The common payroll issues

To avoid heavy penalties and fines, you must never make any mistakes. Let’s discuss the common problems a small business payroll faces.

  • Doing payroll manually when you have a large workforce
  • Setting-up the payroll process incorrectly
  • Inexperienced payroll processors
  • Miscategorize workers
  • Ineffective time records
  • Untimely payroll processing and miscalculation of overtime
  • Failure to issue the right form to your employees
  • Failing to file the tax timely

Best payroll practices

Small business Payroll is one of the most important components of your business. It is a great tool for cost-cutting and efficiency if you follow the best payroll practices that include:-

  • Customization of paying methods according to type of employee and the kind of work he does.
  • Integrate your small business payroll with the HR System and Accountants.
  • Let the employee choose their preferred payment method; weather by cheque, cash or direct deposit.
  • If you have multiple office locations, make sure you process the payroll from the main office to have complete control over your financials.
  • If your small business payroll process has become a burden for you then this is the right time to outsource it.
  • Make sure you keep a note of tax deadlines to avoid penalties and interests.
  • Do a proper classification of your independent contractors and employees.
  • Issuing the tax forms before time to avoid any delay on your small business payroll.
  • Make sure you do a regular backup of your payroll data.
  • Train your employees with the updates regularly on using the payroll software.
  • To avoid any error in tax filling, double-check the entries in the software.
  • Conduct regular audits to ensure a smooth working process.
  • Understanding of the small business payroll process, tax deduction process, and tax filing process.

Setting up the right payroll process is one of the key components of any business. The right payroll for small business will save you time, money, efforts, and also help you to grow your business exponentially.

Categories
Startup

12 Costs That Every Small Business Startup Has to Incur

स्टार्टअप
स्टार्टअप

Know all the Costs involved in Starting Up?

In India, many entrepreneurs underestimate the costs associated with starting-up a business. So apart from having a great idea or a product, one integral part of setting up a startup is planning regarding all the costs involved. These costs should are an integral part of financial planning. Cost of equipment’s, company registration, software, staff, website building, business cards, etc. play a key role while starting up the business. 

Here are 12 different types of start-up costs you need to address before you start a business:-

1. Registration cost/Legal entity

  • First and foremost, you need to register your business as a legal entity with the state you are operating in.
  • Registration of your company can vary upon the states, so before taking any legal step, you need to know the costing of all the procedures.
  • To register your business, you can visit the state’s official business registration site to get an estimate or you can also hire a legal service company to work out the business start-up cost. If you want to fast track the procedure, such agencies can help you out with that too with an extra cost involved.  

2. Equipment

  • In any business, equipment plays an important role. Almost every business needs some sort of equipment in the starting phase. For example; if you have opened a restaurant then you need a stove, dishwasher, cooking utensils, furniture etc.
  • You can always get financing options for these types of equipment. You can also opt for a business loan by your bank or a local lender.
  • If your equipment or machinery needs regular maintenance then add that cost too on a half-yearly or yearly basis. 

3. Office space

  • Having a store or office space can get pretty expensive, whether you buy it or take it on rent, it is a hefty part of your small business start-up cost.
  • If possible, you should try to work from home or work out of a co-working space in the beginning. This is much cheaper than renting or buying an office space. It is also a good way to connect with other people and exchange ideas.
  • If you are a retailer or you have more employees than renting a space can be a better option.

4. Inventory

  • If you are in manufacturing, distribution, wholesale or the retail industry than you need inventory to sell.
  • Stocking your business with sufficient products before launching is very important to meet the potential customer’s demand.
  • Inventory start-up costs can vary on the size and type of your business.
  • Before opening your business, try to have price quotes from multiple vendors which will help you bargain the price and lower your inventory start-up cost.

5. Marketing

  • According to a research, a new business spends at least 5% of its budget on marketing.
  • Marketing might include banners, business cards, brochures, postcards, signage, hoarding, newspaper ads, etc. This helps you in bringing more publicity but also increases your expenses at the same time.
  • It is good that we live in the age of social media; so many advertisements can be done there for free.
  • You can use Facebook, Twitter, Pinterest, LinkedIn and other social media platforms to advertise your start-up at a very low cost. 

6. Website building

  • It is always important to have a website for your business that looks professional.
  • Most of the buyers start searching for a product on the internet which can lead them to your website which means more business for you.
  • Nowadays, it is very easy to build a website, thanks to services like WordPress and GoDaddy.
  • You just need to register your website or domain name that demands a small fee yearly.
  • After getting yourself registered, now you need to have a CMS (Content management system), to build your site which also includes a monthly or yearly subscription.

7. Furniture and Office supplies

  • For office structure, you usually need computers, chairs, desks, and landline connections for your employees.
  • But apart from the basic furniture mentioned above, add in printer, ink, cabinets, water cooler, air conditioner, and other supplies in your start-up cost.
  • Try to avoid special perks like coffee and snacks which is an additional cost although the cost varies on the number of employees you have and the business structure you are operating in.

8. Utilities

  • When you start a business, your customers might come in late but your bill payments start even before you can imagine. You are also responsible for paying the internet, landline, water, gas, and electricity bills apart from the rent and furniture cost.
  • Include the installation cost of these services as well in your start-up cost.

9. Hiring and Payroll

  • 25%-45% of your budget goes in salaries even if they are not bringing in much revenue in the beginning.
  • Payroll also includes other benefits like; stipends, commissions, overtime payment, travel allowance, and bonuses.
  • Always remember that your employees will also grow over the time as your business starts growing or picking up.

10. Insurance

  • Just like the way you protect your health, your house and car with an insurance policy, you need to protect your business too.
  • There are many business insurances in the market, analyze your business type to take the right insurance plan. 

11. Taxes

  • While you are planning for all the costs that are involved in running a business, it is important to keep the taxes in account too.
  • Apart from the taxes, you need a charted accountant to handle your finances. The CA can either be hired or outsourced depending on your budget, but his fees also will be a part of the expenses.

12. Travel and shipping

  • If you are in a consulting business or you need to travel a lot then this expense should also be a part of your small business startup cost.
  • If you are in the shipping business which includes packaging, postage and other shipping costs than you have to be very careful with your budget.
  • In this case, you can always take the help of a third party or a governing party to ship your product. Try to get a quotation from multiple vendors to eliminate the extra start-up cost. 

Budgeting is the most stressful part of starting a business, but having a realistic idea of costs and how much money you need to build a cash reserve will help you in the long run. So, Good luck and start with a bang!