Tuesday, 24 May 2016

Profitability in Business

Income and gains and expenses and losses are the two parts which an entrepreneur or business owner if knows would help him/her in his/her business. When income and gains are increasing then there is profit and when expenses and losses are increasing then there is loss in a business. #profitandlossanalysis

Assets and liabilities are two parts of a balance sheet. For example, if there is bank and business owners, then assets and liabilities are different for business owners and banks. The cash deposits and other forms of deposits in banks are a liability for a bank. Banks are financing by taking loan from Reserve Bank of India and it is also a liability for banks but the loan that is given to individuals/business owners/entrepreneurs is an asset for banks. Other examples of assets for banks are furniture, land and buildings etc. The interest on loan which the bank gets is an income for the bank. There is provision for bad and doubtful debts in banks because banks assume that a certain percentage of loss may be there.

For entrepreneurs/business owners  who wants to start a business, then his/her own money that he/she may put in his/her business is a liability for their firm or the loan that he/she takes from his/her friends, relatives or banks is also a liability for their firm.

On the expenses side- if the entrepreneur/business owner is paying rent for his/her office space or gives his/her own building for office space that could have been used for rent which could have brought him/her money but now that is his/her establishment cost, the number of staff that he/she keeps and their salaries based on their employment status or he/she gives goods on credit, his/her own salary that he/she may use for the month that he/she calculates according to if they were employed somewhere, and keeping provision for some percentage of loss in business or credits and etc could be added on the expenses side.

And for  example, if there is no loss for which the provision was made for then that percentage or amount of money could be carried on to the next year as profits and again the entrepreneur/business owners keeping provision for some percentage of loss in the next year, then this may be the way one can analyse the profit and loss in his/her business.

Monday, 9 May 2016

Copyright for business

Entrepreneurs/ businesses can protect their ideas from being stolen through Copyright. Entrepreneurs if you have an idea that needs to be protected from being stolen, then it is necessary to take a Copyright.

Process for Copyright: If the idea is a business method and it can be submitted in a written format, then it falls in to the category of literary work and under literary work one can take a Copyright of their business method. Copyright would be in the business name and there can be only one owner. If there is another person then his or her name could be there separated by comma, but the Examiner would decide who would be the owner. The application fee is Rs 500/-only and the application can be made both online and offline. If the application is made online then the person has to log in to fill the application form. After submitting the application form along with the fee of Rs 500/- a Diary number would be given through the mobile number or through the e-mail id. The entire processing could take 3-6 months time. When the Diary number is provided, then the entrepreneur has to reply with the two copies of the same business method that was on the application form. The moment the Diary number is given, the entrepreneur's "business method" becomes a Copyright material although the processing takes longer  but the company can carry out its business activity for that business method. The Copyright would protect the business idea both nationally and internationally. The entrepreneurs/businesses should take the Copyright of their business idea/ business methods to protect their company from their competitors and with whomever they do their business. This is one of the business requirements.

Other basic business requirements may include a website, online presence of the company through social media like Facebook, Google Plus, Twitter, and etc,  company name and logo, office contact address, e-mail id address and a bank account.

Sunday, 1 May 2016

Marketing methods of communication

Entrepreneurs may use these methods of communications in their marketing efforts.
  • Postal correspondence - Direct Post Advertising/Direct Post Marketing
  • Making calls through mobile
  • Getting miss calls/back calls and answering those calls on mobile
  • Toll Free Number
  • E-Mail marketing
  • Awareness campaign
  • Digital Media Marketing
Cost of Postal correspondence - Direct Post Advertising/Direct Post Marketing 
Price: For example Local (Ranchi) is Rs 1.50 per article and Inter city is Rs 2/- per article. Examples are letters, brochures, posters etc. Postman makes the delivery of any of these items but no delivery slip is provided by the Post Office. The Pin Code is required. Size is A3 size paper. Minimum of thousand pieces are required for Direct Post Advertising/Direct Post Marketing.There is no to and fro addresses on the article but the own company address can be given on the articles for example on the pamphlets. The recipients delivery addresses are given to the post office along with their Pin Codes so the Post Man can hand it over the articles to those recipients.This kind of marketing is being used by many companies and could reach a large number of customers.

 Cost of making calls through mobile: Cost for a second on mobile is 8 paisa and for a minute is 48 paisa and this is one of the BSNL cheapest mobile plan.

Cost of getting miss call/back call and answering those calls on mobile: Cost of answering miss calls on mobiles would depend how long the customer is making the call.

Cost of Toll Free Number: Cost of Toll Free Number include security money deposit (one time) is Rs 13,000/- plus Sales Tax 14.5% plus quarterly rent for three months is to be paid in advance @ Rs 1000/- plus the call charges as made by the customers every month. One can start with reconnection again after severing the services with only Rs 3000/- quarterly rent payment in advance.

Cost of E-Mail marketing: Cost of e-mail marketing would include only internet connection cost. This kind of marketing would reduce or cut cost of communication very much.

Cost of creating awareness: One of the methods could be to make a Power Point Presentation on the computer to your target markets.

Cost of Digital Media Marketing: A small demo in the form of Power Point Presentation could be given on social media and this would include only making the Power Point Presentation on your computer.

A combination of the above methods of communications may be used by the entrepreneurs to reach their customers in their target market.