Categories
Finance

8 Types of Working Capital & Everything you should know about them!

working capital

Wouldn`t it be easier to start and manage your business as an entrepreneur or a solopreneur had there been a problem-solving course on working capital management?

Wouldn`t it be wonderful to have a course that enables you to understand the concept of Working Capital Management in an easy-to-understand language? Fortunately, you can understand the basics of Working Capital Management and a lot more in this article.

What is Working Capital?

Considered as one of the most crucial components, working capital is vital for a smooth business operation. In simple words, it is the difference between the company`s current assets (cash, inventory, marketable securities, and receivables) and liabilities (rent, bills, and other expenses).

It represents a company`s operational activities and includes inventory, accounts receivable & payable, cash, and short-term debt.

How is it beneficial for a business?

Working capital is a vital factor for both business owners and financial professionals. An effective financial tool, the working capital gives an exact picture and a fair idea about a business` short-term financial standing. It also ensures the efficient use of all the components of current assets and liabilities to reduce the overall cost.

Types of Working Capital

Depending on the time, there are eight types of working capital in India:

  1. Permanent Working Capital

Also known as fixed working capital, the permanent working capital consists of minimum current assets that are required to run the business operations smoothly. However, the size of the WC depends on production scale and growth.

  1. Variable Working Capital

The amount that is invested in a business venture for a short period is considered as the variable working capital. In India, it is also used as temporary working capital and is used for changes in production and sales activities.

  1. Reserve Margin Working Capital

As the name suggests, this type of WC is reserved by the organizations for unforeseen expenses to sustain during a crisis.

  1. Seasonal Variable Working Capital

During the peak season of a business, a company requires more working capital to meet consumer demands. To fulfill the requirement the business owners opt for additional financial assistance which is known as seasonal working capital in India.

  1. Regular Working Capital

This type of WC is typically required by every organization under normal circumstances to ensure smooth business operations.

  1. Special Variable Working Capital

Special variable WC is the type of fund that is reserved by a business for its unique circumstances like the launch of new products, risk management, marketing campaigns, among others.

  1. Gross Working Capital

This type of fund is invested under a firm`s current assets. Its major components include cash, short-term investments, inventory,  marketable securities, and accounts receivables.

  1. Net Working Capital

NWC is an essential type of working capital that represents the amount by which a firm`s current assets surpass its liabilities.

The concept of Working Capital is vast and is extremely vital for a business. Thus, the understanding of this concept requires deeper knowledge from the industry experts who have faced and resolved the challenges with their experience and in-depth understanding of the concept.

Take our Working Capital course that will clear all your doubts and provide solutions to your burning problems. To know more about this course and how it will benefit you, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads

Categories
Startup

Women Entrepreneurship To Get Major Boost As Telangana’s WE Hub and Gujarat’s I-Hub Join Hands To Support Startups in Raising Capital

Women Entrepreneurs in India (Photo Credits: Pixabay)

Hyderabad, January 18: In a bid to give a major boost to women entrepreneurship, Telangana’s WE Hub and Gujarat’s i-Hub have collaborated to help female entrepreneurs. The pact aims to encourage and support startups in raising capital. WE Hub is a State-run platform for Women Entrepreneurs in Telangana while i-Hub is an incubation set up of the Gujarat Government. As part of the MoU, as many as 240 women entrepreneurs will be selected for the pre-incubation program and a total of 20 will be shortlisted for the co-incubation program.

Here’s how the women entrepreneurs would benefit from the Collaboration:

  1. The partnership will initiate pre-incubation program for 240 aspiring women entrepreneurs in the EdTech, MedTech and Fintech sectors in the states of Telangana and Gujarat.
  2. Post three months of pre-incubation program and after rigorous interventions a total of 20 entrepreneurs will be selected for the final virtual/physical co-incubation program.
  3. This co-incubation brings in the startups the opportunity to scale up to viable enterprises and receive solid scale-up rapid growth mentorship from the leaders at i-Hub and WE Hub.
  4. The startups will also have Government supported exposure visits across Telangana and Gujarat, the pact read.

On Saturday, an MoU was signed by Jayesh Ranjan, Telangana Principal Secretary, IT and Industries and Anju Sharma, Principal Secretary Higher and Technical Education, Gujarat.

Categories
Startup

Start-Up India Seed Fund: PM Narendra Modi Announces Rs 1,000 Crore Seed Fund to Help Start-Ups With Initial Capital for Growth and Operations

Seed Capital | Representational Image (Photo Credits: Pixabay)
Seed Capital | Representational Image (Photo Credits: Pixabay)

To provide impetus to the start-up ecosystem in the country, the government has announced seed fund for start-ups worth Rs 1,000 Crore. The fund will be set-up under the name  ‘Startup India Seed Fund.’ Seed capital is the investment required by any firm in the beginning of of its business cycle. PM Narendra Modi while addressing the Prarambh Startup India Summit via video conference announced the launch of the fund. It has been initiated to help startups with the initial capital for growth and operations, and help budding entrepreneurs peruse innovative ideas. Prarambha: Everything you must know about the Startup India International Summit!

“Going ahead, the government will provide guarantees to help startups raise debt-capital. We are trying to build a startup ecosystem which functions on the ‘of the youth, by the youth, for the youth’ mantra,” the Prime Minister Narendra Modi said while speaking at the Prarambh Startup India International Summit in an online address. PM Modi also said the target for India’s startups over the next five years should be to become global giants in their respective service areas.Kerala Government’s NORKA-Pravasi Start-Up Scheme Helped 4,179 Expatriates to Establish Business in the State.

The centre has been encouraging the start-ups to seek investment through borrowed funds or debt capital. The government has also been implementing the Fund of Fund Scheme to help startups raise equity capital, added Prime Minister.  11 Indian start-ups have entered the unicorn club- businesses with a valuation of Rs 1 Billion or more- in 2020 itself.  PM Modi also said that the start-up environment is not limited just to big cities, adding that about 40 per cent of entrepreneurs come from tier-II and tier-III cities. There are more than 41,000 start-ups in the country.

The Startup India Seed Fund comes after the Ministry of Electronics and Information Technology had earlier in 2020 had initiated a similar fund to identify startups and give them financial help. In August, the ministry had launched a fund to identify 300 startups which would be provided seed fund of up to Rs 25 Lakh and other facilities as well. A budget of Rs 95.03 crore has been earmarked for the programme named ‘Chunauti’, to be spent over a period of three years.

Categories
Strategy

Thinking of Ways To Grow Your Restaurant Business? Here Are 4 Tricks That Can Help You Boost Your Business

Restaurant Business (Photo Credits: Pexels)

If have you already started a restaurant and looking for growing the business, we’ve got you covered! Amid the COVID-19 pandemic, when the businesses are returning to normalcy, it might be time to sit down and draw up a plan to open your own business. Being the owner of a restaurant, big or small, you’ve likely asked yourself the question of how you can flourish the business. There are several components which goes into a profitable food business.To help you create an idea for success, we’ve put together a how to get you going to make sure you have all the things for a successful restaurant business with ease confidence.

Work on the Location

The first thing that you should keep in mind your restaurant will be known to people depending how accessible it is to them. You need to ask yourself how far it will be for people to reach the restaurant.  If the hotel is in the market area, it obviously has a lot of footfall unlike the ones that are in the interior parts. Of course, you need a location that fits within your budget too. For a restaurant, location is everything. You need a place that draws the attention of the crowds.

Announce Offers/ Rewards

People always look up to offers and are easily carried away by discounts. To attract customers to your restaurants, you can simply offer a discount, free drink, or some other offer like 30% or 50% off on selected dishes if people sign up and do the reservations. You can also reward them on a points-based system and can offer discounts when they complete a certain number of points.

Offer Free Wifi to Customers

In this digital era, people always want to be connected to the internet. They want to surf and watch movies or series or maybe listen to their favourite tracks while sipping on that coffee or eating their favourite dish. Most people click pictures and upload it on social media, for which obviously, they need internet, and if it a high speed one, nothing like it. Your restaurant will become their favourite place, especially for the teenagers.

Keep Marketing & make your social media game strong

The simple way to keep your customers engaged is to let them know about your offers and anything new that you plan to come up with. If you engage customers using social media, mobile apps, you’ll be able to reach your best customers. You need to keep your marketing efforts going to ensure that you are always in the minds of your customers whenever they think of dining. You need to establish a strong social media presence and try and announce offers on your Facebook Page and Instagram page with promo codes to keep your restaurant on the top of the list.

 

Categories
Startup

How to Register a Private Limited Company: Things you Must Know!

business registration in india
business registration in india

From a handful of tech-ventures to 29K startups in 2014 to around 55K startups by the end of 2020, The Indian startup system has developed and grown by leaps and bounds in the past decade.

Although the COVID 19 pandemic has delivered a brutal blow to the startup system, it has also acted as a catalyst for many to reimagine, recreate, reengineer, refocus, and reappear.

With around 12 Indian start-ups joining the league of Unicorns in 2020, more and more local entrepreneurs are pushing themselves to become self-reliant.

According to the Department for Promotion of Industry & Internal Trade, there were around 24,927 companies were recognized as startups in November 2019. And during the pandemic, the Indian startup ecosystem has emerged even stronger with 39,114 new startups in early November 2020.

reference https://inc42.com/resources/registering-your-company-a-step-by-step-guide/

If you are planning to start a business and register it as a private limited company, here are the key steps that will ensure a successful company registration in India.

But first things firsts! What exactly is a private limited company?

A private limited company is a privately-held business entity. Though it is held by the private stakeholders, the partnership extends only up to the number of shares held by them. The governing body for such a company is the Ministry of Corporate Affairs (MCA).

Here is a list of mandatory things for the company registration process:

Members & Directors: For a company to get registered, it must show a minimum number of two and a maximum number of 200 members. This requirement is mandatory according to the Companies Act 2013.

Name of the company: This is often considered the most technical task, which is also the most difficult. A private limited company is required to cover the three aspects while deciding a name such as Main name, Activity to be carried out, and mention of PVT. Ltd in the end.

Registered office address: The permanent address of the registered office must be filed in the registrar of the company, once the company has been registered.

Important Documents: For electronic submission of documents, the registered company must obtain a digital signature certificate. A digital signature certificate helps to verify the authenticity of the documents.

Steps to form a Private Limited Company:

Step 1. Obtain DSC (Digital Signature): As we mentioned earlier, DSC is required to file the forms for company formation. It is mandatory for all the subscribers and witnesses in the memorandum and the articles of association. As the company registration process is online, the forms require a digital signature.

Step 2. Apply for DIN (Director Identification Number): DIN is an identification number for a director. The business owner who wants to be a director of the company must obtain DIN. One DIN is sufficient to be a director in any number of companies.

Step 3. Name Approval: Decide a name and apply for the registration. There are two methods- RUN (Reserve Unique Name) and SPICe (INC-32). In the first method, the applicant gets only a single chance. Once rejected, the applicant will not get a second chance to apply. The applicant will have to re-file another RUN with the prescribed fee.

In the case of SPICe, the applicant will get a second chance of approval, in case of rejection due to the non-approval of the name.

Step 4. E-MoA (INC-33) and e-AoA (INC-34): e-MoA refers to an electronic Memorandum of Association and eAoA is electronic Articles of Association. These forms were introduced to simplify the company registration process in India.

Memorandum represents the charter of the company, while articles of the association represent the internal guidelines, rules & regulations of the company.

Step 5. PAN & TAN Application: Through form SPICe, an applicant can also apply for the company`s TAN and PAN. Form 49A is used for PAN, and form 49B is used for TAN. Once you have submitted the form SPICe, the system will automatically generate these forms.

You can download the forms from the website, affix them with digital signatures, and upload both the forms on the portal of the Ministry of Corporate Affairs (MCA). After MCA will approve the registration, a Corporate Identity Number (CIN) will be allocated. You can track CIN online on the MCA portal.

We hope the above-mentioned steps will guide you through the company registration process. However, getting your company registered is just the first step.

To ensure that your business grows and prospers in the future, you will need to take care of various other aspects related to business. For that, you will need proper guidance and smart strategies. Take our Everything about Entrepreneurship course to learn the business dynamics.

Click here: https://www.badabusiness.com/?ref_code=ArticlesLeads to learn from the experts!

 

Categories
Startup

How this Indian Unicorn Startup Empowering the Financial Ecosystem for Businesses

Fastest growing unicorns

Gone are those days when transferring money was a long and tedious process. The procedure was long and it required a person to visit the branch office of his bank, followed by filling forms and then standing in never-ending queues.

However, today, it is just a matter of a simple swipe of our fingers thanks to the platforms that have made the online money transfer effortless.

The rise of technology has paved way for a world that offers a lot of opportunities and an open space for various sectors to prosper. One such sector is that of fintech or the online payment industry and today, we are going to talk about Razorpay that has joined the list of billion-dollar companies and became one of the unicorn companies in India in 2020.

An IIT- Roorkee graduate, Harshil launched Razorpay in 2014, along with his fellow Roorkee alumni Shashank Kumar. Razorpay lets its users access multiple payment options like Debit cards, Credit cards, net banking, and even wallets such as Ola Money and Airtel Money.

When Razorpay was launched, its founders had just one aim in their minds- they wanted to make the digital payment processes simpler for small businesses.

Now seven years down the line, Razorpay still has that customer-first approach that made the brand a prime choice for enterprises at all stages. However, it has achieved the status of one of the Unicorn companies in 2020.

In October 2020, the Bengaluru-based brand became one of the unicorn companies. The company managed to raise $100 million in funding which was led by Sequoia and GIC. The existing investors such as Ribbit Capital, Tiger Global, Matrix Partners, and Y Combinator also took part in the funding.

“Most payment platforms take their APIs from banks. Then, they integrate with banks and build a further layer. Hence, they all look similar. But with Razorpay, we got to build the product first, keeping bank integration as the black box. We discussed what the merchants want and what our customers demand. We answered these and built our product,” said Harshil Mehta, CEO, and Co-founder of Razorpay.

Though it took Razorpay seven years to achieve the unicorn status, the company has claimed to turn cash flow positive with 2.6X growth in its revenues. Razorpay`s revenue grew from Rs 193 crore in FY19 to Rs 509 crore during FY20.

This Unicorn startup has launched a neo-banking platform RazoPayX last year to help small businesses in managing their finances. The brand has claimed to serve around 10,000 businesses within the twelve months of its launch.

Razorpay serves many international brands, including the likes of Google, Wikipedia, and Facebook, along with many national enterprises like Zerodha, Jio, and Hotstar. It also serves Indian startups like Khatabook, OkCredit, and Meesho along with SMEs and freelancers in multitudes.

As we said, it took Razorpay seven years to reach where it is now. It takes strong determination, effective brand strategies, a unique business model, and a lot more to take your business to new heights.

You too can grow and expand your business with the deep business knowledge and right guidance with our Everything about Entrepreneurship courses.

Learn from the masters of different industries, who with their first-hand experiences and business knowledge will help you in making your business successful. Click here https://www.badabusiness.com/?ref_code=ArticlesLeads and join the list of successful entrepreneurs now. Visit us now!

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Marketing

Brand Positioning Statement: How it can help you prioritize business growth strategies

brand positioning

In the digital age, business growth strategies and tactics are constantly evolving. As the dynamics of advertisement are rapidly changing, it has become essential for brands to keep up with the latest trends.

But when the algorithms, social media platforms, customer behavior, and interests are changing rapidly, it is difficult to figure out what to focus on to build a successful brand statement.

Now, for instance, you are preparing to bring a new product to the market. After spending countless hours, minutes, days, weeks, and months, even years to determine what sets your product apart from the competition, you create and develop a brand identity.

But how can you ensure that your marketing efforts are aligned with the brand?

According to a report by Forbes, ‘ 38% of users stop interacting with a website, if the layout is unattractive, and 39% of the website visitors stop engaging if the images do not upload quickly’.

The report further explained that after watching a branded social video, 64% of consumers purchase the product. A consistent brand presence across all the social media platforms increases the revenue by up to 23%.

So what does this mean for you if you want to launch a new product in the market? Well, here brand positioning plays a vital role.

But what is brand positioning?

In simple words, it is a brilliant way to tell the world how your brand or product is unique and different from the competitors. It also explains how the product will give your customers a never-before experience, by filling their particular needs.

A brand positioning statement is a wonderful way, where you can let your creative juices flow to describe the key values and qualities that your products comprise and customers are searching for.

A well-crafted brand positioning statement conveys the value proposition to the target audience while describing the brand`s identity, purpose, and distinguishing features.

So whether you are an entrepreneur, solopreneur, or a businessman who is willing to craft a brand statement, it is necessary to get crystal clear on these aspects of your business:

  1. Emotional connection with Target audience: A positioning statement is all about emotions and less about facts. Identify the benefits that will hit the right chord and try to inculcate that element while writing into your brand statement.
  2. Customer Pains: Take ample time to figure out how your product will resolve customer problems. Brainstorm and then try to capture that into your position statement, briefly.
  3. Brand promise: As the competition is huge in the market, you must focus on your product`s unique value and distinct benefits that cater to the pain points of the target market.
  4. Brand identity & core values: What most brands fail to recognize is that it`s not the sales of your products, but your customer`s perception that determines the value of your brand in the marketplace. Hence, keep your brand values align with the target audience when writing a positioning statement.

An excellently written brand statement will help customers to relate to the brand stories, values, mission & vision. This will further help them to develop a strong connection with your brand on a deep level.

Want to create a unique positioning for your brand? Learn how you can create a deep connection with your audience which is beyond buyer and seller relationship with our Problem Solving Courses. Find 600 business templates that will help you create a unique brand identity.

Click here https://www.badabusiness.com/psc?ref_code=ArticlesLeads  and move towards a better brand positioning for your products.

Categories
Startup

EdTech Start-Ups: 4 Tips Entrepreneurs Should Follow to Become Successful in Online Education Business

EdTech Start-Ups| Representational Image (Photo Credits: Pixabay)
EdTech Start-Ups| Representational Image (Photo Credits: Pixabay)

Education sector has evolved a lot not only in curriculum but in the methods of imparting knowledge. The advancement in technology has a huge influence on the evolution of education. Various start-ups have come up in this sector, providing classes to students of all age groups across different streams through online channels. These start-ups, popularly known as the ‘EdTechs,’ are becoming highly profitable in the present times. EdTechs use software like virtual reality, videos, automation and more to make education more engaging and more approachable for all. 3 Brilliant low-investment Online Businesses to Start Now!

As more and more entrepreneurs enter the education sector with the aim to establish their own businesses, the EdTechs are facing stiff competitions. The hype around the sector has been further accentuated due to the COVID-19 outbreak and subsequent lockdown, as students increasingly turned towards online classes with schools around the globe closed down. Here are 4 tips for successful EdTechs-

Pick Up the Right Educators

Educators are the key to the success for an EdTech as they are in direct and regular contact with the users. They are also the first point of contact between the firm and potential users. While choosing the educator, firms should be very careful about their knowledge, articulation, mannerism and language. They should also have a sense of dealing with the students, and be patient with their queries and doubts. Food Business Ideas: 4 Low-Investment and Interesting Food Businesses That You Can Try.

Diversify Courses Offered

Entrepreneurs should not restrict their platform to one type of classes, or teaching. In order to attract a wider user base, the EdTech should introduce a variety of courses including school’s curriculum, competitive examinations, college curriculum, special courses, multi-lingual courses among others. A wide user-base ensures a strong revenue streams, thereby ensuring survival and growth of the firm.

Multi-Lingual Courses

Another to increase the reach and user base is to provide courses in different languages. For a country like India, offering courses in various regional languages will attract more and more users and provide wider reach. Educators affluent in regional language of the user helps to develop connect faster and it is advantageous for students as well because the students are able to learn and comprehend faster.

Offer Inclusive Courses

Firms can also target and explore the niche dedicated to ‘specially-abled students.’ There are various educators who specialise in dealing with such students and providing them proper guidance. Very few educational institutions in the country are offering inclusive education. It provides a good scope for the firms to grow and expand and make the first movers advantage in the sector.

Education sector is among a few sectors that are not hit by any kind of recession, business or social fluctuations. The advancement and digitalisation of the education have made establishing and running business in this sector more feasible. However, entrepreneurs should make sure to stand apart from the crowd and offer varied courses to attract more users.

 

 

Categories
Business motivation

3 Brilliant low-investment Online Businesses to Start Now!

onlline business

Have you lost your job recently or want to quit your dead-end job to follow your dreams of starting an online business? If you can feel yourself nodding, then keep reading!

The Indian startups of today are the MNCs of tomorrow that can go a long way in achieving the goal of ‘Astmanirbhar Bharat’, Prime Minister Narendra Modi said, after laying the foundation stone for the permanent campus of IIM-Sambalpur in Odisha through video conference.

According to a report published by Forbes India, ‘the Indian startup ecosystem flourishing rapidly, with more than 25 startups becoming a billion-dollar company and joining the Unicorn club.”

Now, when the growth is so phenomenal, it is an excellent time to start your online business. But firstly, it is very important to understand that your perfect online business idea should consist of three things:

a). It should be something you like doing

b). It should be something you are good at

c). and it should be something that is in demand and you get paid for it.

So whether you already have a business idea, or are confused about it, worry not! We have curated a list of 3 low-cost online business ideas that you can start this year:

  1. ONLINE BOOKKEEPING

Just like so many other professions, even bookkeeping has gone online. If you are an accountant or a college student who is good with numbers, you can start offering your services online to companies. All you have to do is set-up a client account and manage it online.

  1. LANGUAGE TRANSLATOR

Despite the technology taking the front seat, the demand for skilled translators is soaring high. It is one of the best online business ideas that do not require any investment. All you need to do is build your profile online on various sites that are looking for translators.

  1. AFFILIATE MARKETING

Being an affiliate marketer can be profitable if you know about digital marketing and blogging. Affiliate marketers earn commission on sales by promoting the products of other people. Affiliate marketing is often combined with wth blog writing. So if you have a blog page that is both engaging and followed by users in large numbers, becoming an affiliate marketer is an excellent low-cost business idea.

The online business ideas we have mentioned above do not require a huge investment. In fact, they are brilliant zero investment business ideas. If you want to have a business on your own, learn the most essential things that you will require when setting up your start-up with our Everything About Entrepreneurship course.

It will give you some of the simplest tips and will guide you from the beginning and throughout your journey. To know more about this course, visit https://www.badabusiness.com/?ref_code=ArticlesLeads and we will get back to you!

Categories
Startup

Food Business Ideas: 4 Low-Investment and Interesting Food Businesses That You Can Try

Food Businesses in India (Photo Credits: Pexels)

If you are fascinated about cooking and want to try your luck in any food business, this year can be your year! If you are a foodie and love to make and eat food, you should try and establish a business in the food making industry. If you are planning to start a food business, you should think about: What will differentiate your product from the rest? What are successful food businesses and what do you have to do to go beyond your competitors? When starting your food business ensure you incorporate the lessons from these businesses to ensure your food business idea is a success.

One thing that you should keep in mind while starting a food business is, you should gain knowledge related to food safety and food handling practice as it is very important for your business. Here are few ideas that can help you start a food business with low-cost items which are relatively simple to keep the quality consistent.

Bakery

Do you love baking for your friends and family? If you’re a skilled cook, why don’t you sell your delicious creations? If you are good at baking and have the eye for detail for cake designs and pastries and a lot more, then no one can stop you from starting your bakery business. One thing that you should keep in mind before you start is you should be excellent at preparing recipe related to bread and biscuits. You can start this business at small scale and then depending on the demand and the reach, you can expand it.

Cooking Class

If you are really skilled in cooking and know how to tingle the taste buds, you can try starting a cooking class business. Many people desire to learn the art of cooking and tend to look for online cooking classes or a cooking tutor who can help them get away with basic cooking tricks. In the time of COVID-19, online cooking classes can fetch you good money by just sitting at home and the investment requirement for this business is very low.

Pickle Making

There will be hardly anyone who doesn’t like pickles. If the demand is so high and if you are good at making the yum spicy pickles, why don’t you give it a shot? It is one of the home based small scale business idea which will not need much money to start with. People usually prefer homemade pickles and the domestic consumption is also very high apart from the export.

Fast Food Shop

People love to eat junk food. The fast food business in India is one of the most popular food business ideas today which you can get your hands on. Apart from teenagers, people of all age groups prefer fast food during snack time.