Month: May 2020

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
Process & Business Expansion

How to Start an Online Business Instantly

ई-कॉमर्स
ई-कॉमर्स

7 Online Business Ideas That You Can Start Immediately

There are several ideas available in the market to choose from if you want to start an online business in India. We tell you a few ready to start ideas that do not require too much backend technology, investment or complete knowledge of its know-how.

1. Blogging:

Writing a blog is one of the best online businesses in India today. If you love to write and want to share your experience and thoughts, blogging can turn out to be a profitable business. It mostly depends on your consistency and effectiveness to do so. Providing persuasive content to generate leads and appreciation is all you need. Blog writing can help you gather more and more followers. Now you can start earning money by selling ad space or products which can be extremely beneficial over the time. Although it takes some time to strengthen your follower base, but eventually it’s totally worth the effort.

2. Become a Vlogger:

You just need to think of unique video concepts and there you are- all set on your journey to become a vlogger or a Youtuber. Record and edit videos via a camera or a smartphone on topics that interest; engaging content is what everyone is looking for. Social Media platforms like YouTube, Snapchat and TikTok help you sell your content directly just by engaging with a good number of followers.

3. E-commerce Retailer:

There is demand for everything and anything. If you have a shop or a small business and want to make your business digital, you can enroll yourself as an e-commerce player expanding your business worldwide and reaping the benefits of online business in India. Of course you would have to work on your delivery mechanism, payment gateways but since you already have presence in retail the backend work should not be much of hassle for you.

4. Freelancing:

One of the most underrated concept amongst all the online business in India. Freelancing can be a great option to earn money as you are providing services as per your ability and expertise and also at the convenience of your time. This of course is not a full-time job or business, but you’ll be able to make some handsome amount of money with time.  

5. Conduct Webinars or Become an Online Professor:

Over a period of time webinars as a concept has gained immense popularity in India. People with good speaking skills, knowledge about a topic along with great presentation skills can conduct webinars and turn it into a successful business model for them. For example ’ if you are a professor or a subject matter expert, you can get yourself registered with educational platforms like Bada Business, where you can create content for entrepreneurs and solve their business problems through your lecture. 

6. E-Book Author:

If you have an interesting storyline which can be converted into an e-book that could attract huge audience, you can work towards getting it published on online portals such as Amazon.

7. Stock Market Trading:

There is an orthodox mindset among a group of people who confuse trading with gambling. Online trading is one of the best online businesses one can think off. You risk some capital to gain some. One can make a good return on capital by just following these two simple  rules:

  • Buy low & sell high
  • Sell high & buy low. 

There are a variety of asset classes available in India to trade, like Equities, Forex and Commodity. All you need is just to open a trading account with a good broker and you are all to set to start your online business.

These businesses do not require too much money to be spent, just a bit of thought and strategy and you are all set to become an entrepreneur by switching or opening a new online business in India.

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! 

Categories
Startup

5 Tips for an Early Stage Fundraising from a Venture Capitalist

कारोबार
कारोबार

Early Stage Funding to Sale your Business

Early-stage fundraising is looking at for high potential and growth companies. You should have a clear sense of your vision and a passion and be able to convey that to investors. To help eliminate some of the myths and shed light on what goes on when pitching the VC investors, here are a few tips to practice that can help you in this process:-

1. Offer a solution to a problem.

  • Firstly, you need to find a solution to the problem that can impact a large number of people to entice a venture capitalist for an early stage fundraising.
  • After the problem has been identified, the investors always look for the solution so make sure that solution is clear, to the point and here to stay.
  • Now you have to show your investor how your company and product will address the problem.
  • Most of the entrepreneurs concentrate on the product when instead they need to focus on their customers and the burning problem the customer is facing.
  • Try to use stories and pictures when you explain the execution process.
  • Explain your product and services very clearly to avoid any kind of confusion.

2. Revenue Model

  • Now that you have already explained your product/service, you then have to explain about how fast you company is growing and what are the revenue projections you expect during your pitch for an early stage fundraising.
  • You have to discuss how your pricing will fit into the market you are addressing.
  • The investor is always interested to know how you will undercut the existing solution with your pricing and will your customer be ready to pay that price?

3. Milestones

  • Investors like to spend more time at this point.
  • It talk about the growth seen by your company over the last year and what will be the projected growth in the next  3-5 years looking at the finances and business model.
  • Your operations plan can also be shared in this slide which can include distribution channels being used, operational structure and the big plan to make money in the future.
  • No one can predict where you will be in the next 3 years but the investors would like to see your future plans and the financial knowledge to reach there.
  • Do share your profit and loss statement for the last and the next 3 years. Giving your investors a clear picture will lead to early stage fundraising.

4. Target Market

  • Make a list of data of your ideal customers and how you will position your product in the market.
  • This is where you tell the story about the scale of the problem you are trying to solve and the scope of getting success.
  • Always remember that the more specific you are with your targets, the more realistic your pitch will be to get the early stage fundraising.
  • Your market will decide whether you are able to get the funds or not because if you are operating in a small market then the investors might find the ROI small and therefor consider it risky to fund.

5. Actively ask for feedback

  • Touch base with the investors after the meeting and actively ask for feedback.
  • The information you receive can help you refine your pitch.
  • Do not make changes based on every single piece of input. Only adopt what you think is the most important feedback for your company.

Entrepreneurship is one of the greatest experiences in the world. If you are choosing an investor make sure your dream & vision of the company remains intact despite taking money from someone. So choose the right investor and work towards getting early stage fundraising.

Categories
Legal

Must-Have Terms in a Partnership Agreement

एमएसएमई
एमएसएमई

Critical Points in a Partnership Agreement
 

A Partnership is a legal agreement between two or more individuals who decide to do business together. All the partners involved have a share in the assets as well as the profit and loss of business. It documents the responsibilities of all the partners.

However, the partnership agreement differs from business to business depending upon its scale and objectives. Also, a partnership agreement is subjected to laws governed by the state. 

Let us see the key aspects of a partnership agreement that business owners need to keep in mind.

1. Percentage of Contribution-

The first and foremost thing that needs to be documented in a deed is that how much each partner will contribute in the business.

The agreement should clearly define the contribution by each partner in terms of money, time and efforts 

2. Distribution of Profits-
 

This is one of the most fundamental aspects of a business partnership agreement. How much would be the share of each partner in profits?  The agreement must outline how the profits will be distributed amongst the partners.

It must also state how what each partner will be paid. 

Decision making-

This is the most crucial aspect of the agreement and important for smooth business operations.

You must differentiate between the decisions that require a unanimous voice or the ones that can be taken by a single partner.

A provision must be there in the agreement to address the disagreement or dispute between the partners.

3. Partner Authority-
 

Can any of the business partners bind the others to a contract without consent? The answer is Yes! That’s why it becomes important that the binding power or the partner authority is clearly defined in the business partnership agreement.

It will save the company from unmanageable risks.

4. Resolving Conflicts-

A clause regarding the dissolution of the disputes must also be included in the terms and conditions of the agreement. 

If an issue has not been resolved with the business partners then a provision in the agreement will help ease the process of dissolution.

5. Withdrawal or Demise of a partner-

An unfortunate contingency can occur anytime. A smart business owner should be able to foresee and must be prepared for it.

If a partner withdraws due to disagreements or god forbids has a sudden death then a clause of departure must be included in the agreement. 

A good agreement has a buyout provision that helps in determining the business value and how the departing partner will be paid. 

Discretionary Clauses that can be included in a Partnership Agreement:
 

The above-mentioned aspects constitute an essential part of the business partnership agreement. However, there are a few other factors that should be considered before drafting the agreement. These are: 

Non-Competitive Clause-
This clause not only limits the partner from leaving the partnership but also restricts him from competing with the business partners within a restricted time frame.

Non-disclosure Clause, Non-
Solicitation Clause: This clause limits business partners from revealing the proprietary business. In other words, you cannot revel to any other person, corporation or firm any confidential information about the enterprise. 

It also restricts partners from soliciting employees away from the business partnership which means prohibiting an employee from utilizing the company’s clients, customers and contact lists for personal gain once they leave the company

A business partnership agreement is significant for every business arrangement. It not only ensures the smooth functioning of the company but it also protects the rights of all the partners, their overall investment and the longevity of the business. 

Categories
Powerful Personalities

Top 10 Success Mantras by Dr. Vivek Bindra

Climb the Ladder of Success: Tips by Dr.Vivek Bindra

In this fast-paced world of today, success is what everyone is striving to achieve. Following & understanding a few success mantras for business, can help entrepreneurs take their company to newer heights. Though success depends on various factors, but the will to conquer challenges & the patience to taste victory is vital for all. 

Dr.Vivek Bindra, an International Motivational Speaker and Founder of Bada Business.com has always empowered entrepreneurs to grow their business. What is the success mantra behind this?

What qualities make for a good entrepreneur? Here are 10 success mantras for your business by Dr. Vivek Bindra.

1. Set a Goal and do Everything to Reach that Goal

  • It is very important to know what you want. Have clarity of thought as that will show you the right direction and is perhaps the first success mantra in business
  • Be clear on who has to deliver what. This will help in delegating responsibility and accountability  

2. Identify your Unique Signature Strength

  • You need to know what is your strength and work towards using that as the core of your business
  • If this strength energizes you to do better, then that is one way to identify your sole character strength
  • If finance or product building is your signature strength then look after business functions related to that and enhance your learning curve around it

3. Openness to take Risk

  • An important success mantra for any entrepreneur is that you need to take risk in business. If you don’t take risk then you are playing too safe to achieve your dreams
  • Be limitless, you have unlimited potential, the only thing you need to work towards is exploring this potential and putting it to productive use
  • When you stretch your limits and take risks, you will grow
  • As Dr. Vivek Bindra says, ’Bigger the hassle, bigger the premium’

4. Take Advice from Someone who Brings Out the Best in You 

  • Entrepreneurs do take advice or help from friends, family, business partners or their mentors. Make sure that person brings out the best in you
  • If you feel alive, positive and a get a true feeling around that person then there is no harm in following the advice
  • This also includes your customers, listen to them and their feedback. Listening to your consumer is the best success mantra for a business. It not only brings out the best in you but in your business as well

5. Make the Most of What You Have 

  • Don’t be upset over what is not there with you, as you don’t have control over those things
  • Make the most of your employees, look after their welfare and they will be productive & efficient

6. Focus on the Cycle of Possibility

  • Focus on possibilities and not the problems during tough times. Possibilities will only lead to opportunities
  • Divorce yourself with a circle of difficulty
  • Break your rigid beliefs and learn to shift gears. Being flexible and adaptable are the best qualities an entrepreneur can develop as a success mantra for his business

7. Start Measuring your Efforts to Improve

  • Use analytics and data analysis to take your decisions
  • Track your growth and make a note of the changes
  • Measure the kind of effort you are making, only then you will know how much you need to improve in the business domain
  • Don’t take emotional decisions, backing it with facts should be your success mantra in business 

8. If you Fail, you got to Bounce Back

  • Failure is the recipe to triumph; you need to fail before tasting success
  • Do not lose heart, even the most successful of entrepreneurs have failed in their journey
  • Have all the self-belief and confidence to take up the challenges, and try newer things or ideas to grab more knowledge or learnings
  • As Internationally Acclaimed Motivational Speaker Dr. Vivek Bindra says, ’Every negative incident has a positive intent’, when you look back in hindsight you will notice how true these words are
  • ’You can, You will, Bounce Back’, swear my this motto and put it up where you can read it every day

9. Have the Right Attitude

  • Have a positive attitude; once there is negativity in your thought, it is very difficult to come out of this vicious circle.
  • Have clarity of thought as you have to fight your own battle. A negative attitude is disastrous not only for your business, but your personal life as well
  • Positivity & Passion is the perfect success mantra in business

10. Be a Leader

  • An entrepreneur must possess leadership qualities to run his company
  • The employees look up to their leader or boss in situations of confusion or tough times. You need to be a decision-maker in such situations
  • Be bold enough to take the onus of your decision and not put it on your team
  • Make the employees a part of your success journey. Their hard work is equally responsible for any milestone the company achieves

These are all ingredients to the recipe of success. Your winning attitude & a humble outlook will be the cherry on the cake. If you follow these success mantras by Dr.Vivek Bindra, surely you and your business will be unstoppable!

Categories
Legal

Everything You Need to Know About Company Laws

Legal Basics that Every New Business Should Know

The Companies Act of India was created in 1956 to ensure one thing, that a company is treated as a separate legal entity from the people who are running it. This was primarily done if due to any gap or removal of a member/partner, the company does not end.

When you are starting a company, there are many legalities that you should know about when you are planning to run a business.

1. Company Formation
 

The Companies Act, 2013 which is more refined and covers many more aspects of business than

the previous Act. It explains what type of a company you need to choose and run. According to the

Companies Act of India, you can choose between the following:

  • Sole Proprietorship
  • Partnership
  • LLC
  • Private Limited
  • Family Business

The companies Act, 2013 lays down the rules and regulations on how each of these firms can be set up and what are the legalities you need to follow

2. Understanding Tax & Accounting

  • One of the reasons you need to choose your legal entity smartly is also because it will decide the amount of tax you are going to pay and the Companies Act of India gives a detailed account of it.
  • You need to know the income tax you are liable to pay to the government and if there is a cess over and above that. Each legal entity has a tax structure they need to follow. Some legal entities are also entitled to a few exemptions which can be found out by going through the Act in detail
  • Maintaining of accounts and bookkeeping is essential for SMEs to manage their money smartly
  • Financial Statements will help in keeping a check of your debts incurred, expenses and profits made. This will help in managing your funds optimally

3.  Raising Money: Checking financing options

There are 3 types of financing options that you can explore:

  • Finance through Investors– When you are getting capital from a VC, then these are the must have documents- letter of intent, share subscription agreement and shareholders agreement 

There are many forums where you can get a list of Angel Investors & Venture Capitalists who would invest in your business and claim a stake in your profits

  • Finance via debt or loan- The main documents needed are- application for loan sanction papers, sanction letter, loan agreement letter and collateral documentation. Now days it has become very easy for SMEs to avail a loan from the bank.

The Government has also introduced many schemes and initiatives under which SMEs can apply for a loan

  • Self-funded- Obviously self-funding is the easiest and the most hassle-free finance option out of the lot. You can use your own money or borrow from your close relatives or friends to give your business that boost

4. Labour Laws

Like the Companies Act of India is needed to set up a company, similarly you need to abide by the Labour Laws when you are hiring for the company and formulating employee agreements

5. Dispute Resolution & Contracts

When you are starting a company and formalizing a structure it also important to know how contracts are formulated and if a dispute arises, how can you solve it.

The main aim is to:

  • What works under Indian law and what does not?
  • Traps to avoid; and
  • Practical drafting solutions

It is advised to agree to an offshore arbitration where possible, if not then go for an Institutional arbitration with a neutral party. Try and keep it as simple as possible

If you are setting up a company and going to run a business, it is important to understand the know-how of the Companies Act 2013 because this sets the foundation of all the legalities involved in running and managing an organization. 

Categories
Startup

A Survival Guide for Early-Stage Startups

बिजनेस
बिजनेस

Early Learning Advantage: A Survival Guide for all Startups

Starting a business and growing it through the early stage is a difficult task and the only thing that comes in handy at that time is a startup survival guide. 9/10 startups fail in the first 3 years of their operation depicting a poor startup survival rate. So how exactly can you survive in the early stages of starting up? Determination, planning, and a little bit of luck can go a long way in marking your success. Here is a startup survival guide for many of our new entrepreneurs.

1. Get the right Founding team

  • Your team will make the pieces come together and pave way for success. The first step in the startup survival guide is to get the right founding members for the business
  • Look at people with diverse strengths that can be an asset to your business
  • The founding members should be trustworthy with a mission to make the business succeed rather than their own success

2. Implementation of the Idea
 

  • No matter how much research has gone behind the business idea, but if the implementation is not up to the mark, the startup will fail to take flight
  • One of the main reasons that the startup survival rate is so low because entrepreneurs fail in the implementation phase 
  • Slow down with your speed. You might think that the idea is revolutionary but it might take time to implement it correctly
  • An early-stage startup should be clear about 3 things- The solution it is providing, the cost involved and how will the idea be monetized

3. Find your Unique Selling Proposition

  • When you start a business, you have to make sure you are different from the competition
  • Realize what is your USP- is it your delivery mechanism, or your social media presence, exclusivity or the product itself
  • Your startup survival guide should spell out your USP that is going to keep you going for many years

4. Work towards getting your Customer Acquisition Cost down

As we all know, the customer acquisition cost is the total cost of acquiring a new customer. It should generally include things like Advertising, Marketing & Sales costs divided by the number of customers acquired

  • Focus on improving the conversion rate through the quality of content, e-mailers, layouts etc.
  • Enhance Customer service to eventually build loyal customers. These loyalists can then become influencers for your brand to get in new customers
  • Utilize social media campaigns fully so that customer retention rate remains high

5. Be Flexible

  • Business is all about being dynamic and embracing change. Hence, being flexible is of utmost importance in the startup survival guide
  • Learn to tweak your plans mid-way. There could be changes in market conditions, or your competition might be doing something different, keep an open eye and change your flow accordingly 

6. Be well prepared for Investor meetings

  • Treat investor meets as an IIT entrance exam; you need to be more than prepared. Be ready for a volley of questions and if you don’t know the answers you will be marked negatively.
  • Build your case well. This preparation and confidence will give out only one message- that you will justify your investors’ money   

7. Don’t hesitate to ask for Help
 

  • You probably might know everything about how to run a business, but you possibly cannot do everything yourself. Reach out to a partner whom you trust to manage different business operations if required
  • One reason for the startup survival rate to be low is that business owners don’t reach out for help at the right time
  • Be open to feedback, suggestions, opinions, it only makes your business stronger and better

8. Plan for Contingency

  • Keep a close eye on your cash flow management and invest within your means
  • If expected results fail to show, your contingency fund can be utilized to change the course of action

It’s not an easy task to build a business from nothing and therefore a startup survival guide is a must for all new entrepreneurs. With hard work and dedication towards your business, the path to success shall not be far-fetched.