Tag: budget

Categories
Finance

5 Smart Ways To Help You Settle Business Loans Quickly!

5 Smart Ways To Help You Settle Business Loans Quickly!
5 Smart Ways To Help You Settle Business Loans Quickly!

Summary: Is your business running in losses? Are you losing your investors because of the debt? Do you want to take your small business out of debt?

Rising interest rates and high corporate debt levels are giving sleepless nights to lots of investors and small business owners. It is impossible to predict the future, and with the latest happenings in the world, the period of consistent declines in the GDP of India, it is challenging for small business owners to run their business operations with the guidance of an expert.

Though most entrepreneurs begin their startup by arranging funds through debt funding, equity funding, loans, or other less formal sources like friends & family, the experience of being in debt can be scary and overwhelming. To avoid making drastic mistakes at the initial stage, many entrepreneurs also hire the best business coach in India.

If managed smartly, borrowing funds can help you accomplish your goals; if mismatched, it will affect your financial well-being and cause mental stress, especially to small business owners that are worse affected due to the Covid-19 pandemic.

The Indian government launched many loan schemes to offer relief to MSMEs in subordinated debts, collateral-free loans, and equity infusion through its Fund of Funds (FoF) scheme in 2020. This scheme proposes to purchase up to 15% growth capital in high-credit MSMEs.

You can work with a business coach who can help you manage funds more efficiently. Also, if you have a well-thought financial plan, you can solve the cumbersome process of taking your business out of debt, just like others. Here is how you can chart your way out of debt:

1. Reorganize the Debts 

The first step that will take you closer to managing your debt is to organize all the details of precisely what you owe. Make a list of your debts with EMIs, interest rates, and tenures. This will help you recognize the costliest obligations.

2. Pay Urgent & Costliest Debts First!

After sorting out your debts, pick the costliest one! If not paid on time, expensive debts will extract the highest interest. This can drain your finances. Hence, settle your costliest debts on a priority basis. Take help from the best business coach for strategies that will help you pay your debts.

3. Make Monthly Budget

One of the most vital debt management techniques is planning a monthly budget! Make a list of your income & expenses while deciding on your monthly budget. This will allow you to think about ways to reduce your daily expenditure. Having details of monthly cash flow can help you save money that you can use to clear your debt.

4. Consolidate Loans

Sometimes keeping track of all the loans can be difficult. If you have too many loans, it can be a good idea to consolidate them into one. This will leave you with just one EMI. Business loans, personal loans, and credit cards provide you with this option. It will remove various debts and leave you with just one loan to track. Consult with a business motivational speaker today to understand your finances. 

5. Protect yourself Against Economic Shocks 

The future is uncertain, and it is wise to protect yourself from uncertainties you might be exposed to. For E.g., a loss of a job could lead to delayed EMIs. So, to avoid such situations, create an emergency fund to help you sustain yourself during a bad phase. Ideally, this fund should be 3-6 times more than your current monthly income.

Repaying loans is a moral, legal, and also a financial obligation. With intelligent and effective debt management strategies, you too can get your business out of debt. Learn how to manage your debt with the top-industry leaders from our Problem Solving Courses.

Categories
Finance

Start Your Financial Planning With these 5 Effective Steps

Start Your Financial Planning With these 5 Effective Steps
Start Your Financial Planning With these 5 Effective Steps

Summary: Do you have a financial plan to fulfill your dreams? Here are five steps to take you closer to your professional and personal goals.

“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.” – Alexa Von Tobel.

Most of us plan for our studies, career, personal and professional goals that we would like to attain in the future. But when it comes to your finances, do you have a plan? Many people lack financial planning, thinking it is a time-consuming process. However, a personal financial plan is a formal process that has the power to improve your economic life.

Entrepreneurs must establish a plan to organize their finances to know where exactly their money is going. It is critical to formalize the process if you are serious about building wealth. You can work with a business coach who can help you build a strategy associated with your goals.

Here are five steps that will help you to develop a personal financial plan and growth strategy:

1. Analyze Your Current Situation

It is essential to review and analyze your current financial status if you want to create a sound financial plan to achieve your goals. Reviewing your current situation means giving yourself an overview of all your income, debts, expenses, investments, etc. Begin by taking inventory of your existing assets and liabilities and create a balance sheet.

Define your financial objectives and be clear about your goals, as they will provide a roadmap for your financial future. Your goals should be:

a). Quantifiable & achievable

b). Defined goals with a set timeline

c). Needs and desires in separate columns.

You can consult with a good financial advisor or a business coach in India to assist you.

2. Gather Financial & Personal Information

Financial planning and its success will depend on the quality and clarity of the information you will provide to your adviser. Once your adviser captures all the relevant information you provide, he can create a detailed financial statement associated with your finances.

The financial balance sheet will consist of:

i). Income and expenditure

ii). Assets and liabilities

iii). Risk factors, capacity to take risks, and risk attitude

3. Find a Budget that Works for You

Budgeting is an essential part of successful management from a country to a household. Many people don’t like budgeting as it feels challenging to stick to. But this does not mean that it is a difficult task. It simply means that the budgeting system is not customized according to your requirement.

The concept of creating a budget does not imply that you have to cut back on everything you love. It is simply about controlling unnecessary expenses and making mindful purchases. But for it to be truly effective, you can try a method like the 50/30/20 rule, according to which 50% of your budget goes to pay for necessities, 30% or less to discretionary items, and 20% or more to savings and debt payments.

To understand how you can plan more efficiently for your future, you can attend our Masterclass by billionaire professors accessible on our Bada Business community app.

4. Choose Your Rhythm

Leadership Consultant, Dr Vivek Bindra, believes that if a strategy fails, change the strategy, not your goal.

Everyone has different goals and hence different requirements. It is not necessary that if your friend who has zero liabilities is saving her entire salary, you must also follow in her stride.

Instead, customize the plan. If you have a consistent salary, it is easy. You can choose the percentage you would like to save each month. However, it gets tricky for entrepreneurs and small business owners because of the variable Income. So, entrepreneurs can consider a lower amount to automate monthly. If you are a small business owner, you can also set a calendar reminder to review contributions quarterly.

5. Get Help from a Business Coach or Team of Advisers

Entrepreneurs have so many responsibilities and tasks at hand. So, if you try to manage your finances, it may be too much to handle. And your growing wealth could become a task. Begin by taking professional help instead of trying to manage it all on your own.

If you follow these five strategies mentioned above, you can build a solid foundation to grow your wealth and make smarter money decisions for your future. To gain in-depth knowledge, attend our Masterclass available on our Bada Business community app, in which you can learn simple yet effective financial strategies.

Download the app now: https://tinyurl.com/nhav2kp6

Categories
Finance

5 Smart Ways To Eliminate Debt & Grow Your Small Business

5 Smart Ways To Eliminate Debt & Grow Your Small Business
5 Smart Ways To Eliminate Debt & Grow Your Small Business

If you ask any small business owner or entrepreneur to name their foremost hardest challenges that don`t let them sleep in the night, they will say without a second thought- money!

Paying off debts, growing business, increasing profitability, and achieving financial freedom are a few challenges that SMEs and MSMEs often face. This was true before the pandemic, but after it, it has become even more crucial for entrepreneurs to overcome money challenges.

According to a survey published in Forbes, “95% of businesses surveyed said the pandemic had affected their bottom line, and 53% estimated that 2020 revenue would drop by more than a quarter.”

Even the best business coaches often come across questions like ‘how to get my business out of debt’ or ‘how can I repay my loan as soon as possible’ by small business owners.

Most entrepreneurs begin their start-up by arranging funds through debt funding, equity funding, loans, or through other less formal sources like friends & family. But the experience of being in debt can be scary as well as overwhelming.

If managed smartly, borrowing funds can help you accomplish your goals. On the other hand, mismanaged business debts can not only affect your financial wellbeing but can also cause mental stress, especially to small business owners that are worse affected due to the Covid-19 pandemic.

There are many government schemes to help small business owners with loans. The Indian government had offered relief to MSMEs in the form of subordinated debts, collateral-free loans, and equity infusion through its Fund of Funds (FoF) scheme in 2020. This scheme proposes to purchase up to 15% growth capital in high-credit MSMEs.

You can watch this video by Dr. Vivek Bindra on “How to Pay Off Your Loans”:

If you have a well-thought financial plan, you can solve the cumbersome process of taking your business out of debt, just like others. Here is how you can chart your way out of debt:

1. Manage Your Debts

The first step that will take you closer to managing your debt is to organize all the details of exactly what you owe. Make a list of your debts with EMIs, interest rates, and tenures. This will help you recognize the costliest debts.

2. Settle Costliest Debts First

After sorting out your debts, pick the costliest one! Costly debts, if not paid on time, will extract the highest interest. This can drain your finances. Hence, settle your costliest debts on a priority basis.

3. Plan Monthly Budget

One of the most vital debt management techniques is to plan your monthly budget. Make a list of your income & expenses while deciding your monthly budget. This will give you a clear picture to think about ways to reduce your daily expenditure. Having details of monthly cash inflow and outflow can help you save money that you can use to clear your debt.

4. Consolidate Loans

Sometimes keeping a track of all the loans can be difficult. If you have too many loans, consolidating them into one can be a good idea. This will leave you with just one EMI. Business loans, personal loans, and credit cards provide you with this option. It will remove various debts and leave you with just one loan to track.

5. Insure Against Economic Shocks

The future is uncertain and it is wise to protect yourself from uncertainties that you might be exposed to. E.g. a loss of a job could lead to delayed EMIs. So, to avoid such situations, create an emergency fund to help you sustain yourself during a bad phase. Ideally, this fund should be 3-6 times more than your current monthly income.

Repaying loans is a moral, legal, and also financial obligation. With smart and effective debt management strategies, you too can get your business out of debt. Learn how to manage your debt with the top-industry leaders from our Problem Solving Courses.

Categories
Finance

FY Budget 2021-22: FM Sitharaman Says the Upcoming Budget will be like Never Before!

budget 2021

The finance minister Nirmal Sitharaman on Wednesday concluded all the pre-budget consultations for the 2021-2022 Union Budget. 9 stakeholder groups and 170 invitees participated in the 15 meetings held between December 14 to December 23rd, 2020 online.

The Finance minister of India held a meeting with the sector experts related to infrastructure, energy, and climate change to sought suggestions regarding the upcoming budget. According to her recent statement, the upcoming budget will be completely different. The Union Budget for 2021-2022 will be presented under the shadow of the Covid-19 pandemic. The budget for the financial year 2021-2022 will be presented in the parliament on February 1, 2021.

 

The FY22 budget will focus mainly on the infrastructure, which is considered one of the most important parameters of growth. Many economists have predicted that the Indian economy will shrink by 7% to 9% in 2020-21. The finance ministry expects marginal growth in the economy from the December quarter. The Indian economy is also expected to bounce back in double digits on a low base.

 

Apart from the Finance Minister Nirmala Sitharaman, Union Minister of State for Finance and Corporate Affairs Anurag Singh Thakur, DIPAM Secretary Tuhin Kanta Pandey, Finance Secretary AB Pandey, Expenditure Secretary TV Somanathan, Chief Economic Advisor Krishnamurthy Subramanian, DEA Secretary Tarun Bajaj, and senior officers from the Ministry of Finance and other ministries also took part in the meeting.

 

Sitharaman had chaired all the pre-budget meetings that were held online with multiple stakeholders, industrialists, economists, and farmer bodies, etc. for their inputs and suggestions on how to revive the economy that has been severely affected by the coronavirus pandemic.

 

The stakeholder groups made multiple suggestions on various subjects that included Fiscal Policy (including taxation), Insurance, Bond Markets, Health & Education, Exports, Infrastructure Spending, Social Protection, Water Harvesting & Conservation, MGNREGA, Public Distribution System, Production-linked Investment Scheme, Ease of Doing Business, Branding of Made in India products, Public Sector Delivery Mechanisms, Innovation, Green Growth, and Non-Polluting sources of Energy and Vehicles, among others.

 

The stakeholders’ groups included representatives of the Health, Financial and Capital Markets, Education and Rural Development, Trade Unions and Labour Organisations, Water and Sanitation, Industry, and Trade, Services, Infrastructure Agriculture, Energy, and Climate Change sector, and Industrialists, Agro-Processing Industry, and Economists.

 

The Finance Ministry also said “the participants in the meeting lauded the efforts taken by the Indian government to flatten the COVID-19 curve a slow but strong recovery of the economy in the second quarter of 2020-21. They further stated that India is among very few countries whose economic activity has risen with declining pandemic induced fatalities”.

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