Gone are the days when call centres existed only for telemarketing and technical troubleshooting. Call centres are now the first point of contact between a company and its customers. They are service centres that help solve customer issues, identify the best services and products for customers and most of all, they record valuable business intelligence through customer feedback. Ironically one of the friendly and most professional ways of collecting feedback is through the process of called “cold calling.” Cold calls are nothing but unsolicited calls to customers. Cold calling is a tricky art, mastered by very few in the customer services department. Here are some tips to help you make effective outbound/ cold calls.

Get your facts right: Fine tuning your research and targeting the right people is the crucial first step. Your research should be fool-proof and names should be included in a list only after going through call notes. If a customer’s previous call notes indicate that he/she is generally busy, you must not include them in your list.

Set Expectations: Right in the beginning of the call, tell the customer what you are calling about. Let them know if you are calling to get feedback, to explain the features of a new product or service, to talk about an exclusive promotion or if you are just returning a call.

Know your competition: Learn about the product/service features that give you an edge over your competition. Have complete product/services knowledge. Be well-informed about the industry too. This will add value to your call and make customers listen.

Be polite: No matter what turn the conversation takes, always be polite and respectful. Start the conversation on a polite note and end it politely too. This leaves a good impression.

Avoid being pushy: Nobody wants to be forced into listening to you or signing up for a product/service over the phone. Speak about the features of your product but also understand what the listener is looking for. Understanding your prospect’s needs and then customising your conversation accordingly, can go a long way in ensuring customer satisfaction. It also makes you sound more genuine.

Don’t be a bore: Keep the conversation crisp and informative. Be attentive to what the listener has to say. Don’t think that you need to give the customer all the details and information that there is. The person at the other end might want you to call at another time or might simply be trying to get a word in.

Make the right first impression: The first few words you utter could make a good or bad impression. Say the most effective words at the start of the conversation to grab the listener. Getting the listener hooked is the biggest challenges

Be careful with follow-up calls: If a prospect shows interest and asks you for additional information, ask them for a suitable time when you could get back to them. Make sure you call them at exactly the same time. People respect you if you respect their time.

Display confidence: You could be making one of the first few calls assigned to you, but you should come across as knowledgeable and confident. Nobody wants to listen to or buy from a green-horn.

Read the important signals: Be attentive for signals. There is no need to persuade a listener who has been persistent about his/ her disinterest. If the listener sounds preoccupied call them at a more convenient time. If the listener sounds a tad interested and asks for more information, get back with it at the specified time.

Be original and interesting: People get bored with the same outbound call gimmicks and don’t wish to be nagged by yet another one. Try to introduce some novelty in your conversation. Catch their interest and attention in the first few seconds. It could be the way you greet them or it could be some interesting trivia you throw at them. The idea is to get them hooked.

In the initial days of starting your business, you are the ‘one-man army’ running the entire show. But as your business grows and you find yourself incapable of handling all the operational activities, you hire a team of people to meet the growing demands of the business.

Hiring and building a team done, then comes the tricky part – effectively managing the team of people and keeping them focused on the goal all the while resolving the conflicts arising due to operational matters or internal policy diktats .

Here are a few pointers that you can observe for an effective team management:

Clear Communication

Communication must be clear, concise, consistent and transparent for an effective team management. Make sure that every team member gets the same information in order to avoid ambiguity. Also ensure that tasks and goals are clearly laid out with the what’s, how’s, why’s and when’s properly defined.

Understanding your Team

Don’t expect your team members to start performing from day one, they would need time. And secondly, not all the members perform equally. You might also encounter some conflicts as some of them might not get along well with their colleagues or have other issues with each other. Internal conflicts in the team can affect the team’s performance. Take some time out to understand your team members, their behaviour and their different backgrounds. There will be times, when you will be a guide, a mentor and a boss to them.

Effective Work Culture

Build an effective work culture that the team members will adopt and follow:

• Share a healthy relation with your employees. Don’t impose things on them. Avoid criticizing your employees before other people.
• Motivate your team members on a regular basis. It pays to adopt incentives like ‘Rewards and Recognition’ in case of extraordinary performance. It will boost productivity and help reduce inefficiency.
• Make your team realize the importance of keeping business-secrets and how it is unethical to leak information or any other confidential data.
• Make sure you are accessible and available as much as possible with an open door policy.
• Invite suggestions, feedbacks and improvisations. Keep an open forum where all members can discuss freely and give their invaluable inputs.
• Discourage team politics, comparisons, back biting etc within the team members. It makes the work environment unhealthy.

Proper Delegation

A good manager is one who has the ability to recognize the skill sets of his employees and delegate work accordingly. Identify what you can do best and give the rest to other people. This will give you time to focus on crucial business activities without the added burden of other responsibilities.

Building Trust

Bonding among the employees and a friendly environment based on trust are very important in any team. It’s proven that when team members trust and respect one another, it reflects on their performance leading to a company’s success. The onus is on you to set an example. When you delegate a work to a team member, let him know that you trust him with the work. If an employee is right, then stand up for him before other employees or even with a customer. This will build confidence in the team members and will create a healthy and positive work environment.

Team management doesn’t come to you in a day. You develop the skills only over a period of time with trials and errors and some success and failures.

Ashok Ananthakrishnan-taxiGUIDE.in

Has it ever happened to you that you have planned a trip, booked your airline tickets and hotel stay, but when it came to booking a car rental, you ended up frustrated and angry because of unavailability of a proper car rental facility?

This constant problem faced by travellers, both on business and luxury, triggered the genesis of taxiGUIDE.in, an online car rental booking service across 75 cities in India. Addressing almost all customer pain points, taxiGUIDE.in has made it easy for travellers to book car-rental services across multiple cities in India with a four hour lead time.

The success tasted so far has been due to the hard work of the founding fathers, a team of first generation entrepreneurs:

• Ashok Ananthakrishnan: BE (Mech), PGDBA (Finance and IT) and CFA with over 11 years experience in Management Consulting and Corporate Banking.
• Subash Bidare: PGDBA from IFCAI with over 12 years’ experience in Management Consulting.
• Shashibushan Venkatasubbaiah: BE (Instrumentation) and MS (Info Sciences) with over 14 years of experience at big tech companies.

Avid trekkers and keen travellers themselves, with their car rental aggregator, they have enabled hassle-free booking and short notice service for a customer.

Let’s learn more about this venture by talking to them.

What was the motive behind starting your business?

The motive was to solve a nagging pain point and instead of complaining about it day in and day out, do something creative and eke out a solution.

What has been the key to your business’s success?

It was solving the customer pain point. Car rental services have been the last unsolved piece in the travel segment. There are online travel agencies who brought the convenience of booking airline and hotels online. Through IRCTC and redbus.in, customers have been able to book train and bus tickets online. However, the last mile connectivity has been a major challenge and taxiGUIDE addresses this.

What have been your major challenges?

For all entrepreneurs, the challenges are in proving that their concept works and is a profitable one to pursue.

• There are challenges in convincing the immediate family of the viability of quitting a high-paying job to take up the onus of building something from scratch.
• Building a brand with very little marketing spends is also another major challenge.
• Raising capital for growth is the next challenge since we do not have a vibrant VC market.

Have you benefitted from the use of any specific technology for regular operations in your business venture?

We plan to use phone-based tracking systems and also traditional GPS systems for our vehicles which will enable real time tracking, bill generation etc.

What has been your strategy for customer satisfaction?

Reliability and total customer satisfaction has been our focus from day one. In case of a no-show, we refund customers. In case a customer has missed a flight etc on our account, we pay for their air fares. We have focused on being extremely fair and transparent with our customers. We do not make commitments that we cannot keep.

What are the top 3 skills needed to be a successful entrepreneur?

It requires:
• Empathy – to be able to identify pain points of customers,
• Determination and risk taking abilities, and finally
• Ability to sell – to be able to convince customers that your offering is better than what is available in the market.
• Apart from this a lot of perseverance and an iron will to succeed.

Look up at www.taxiguide.in for all your car rental needs.

Go green and save: Adopting eco-friendly practices in your business not only help you keep costs down but also give you the added satisfaction of helping the environment. A few easy ways to go green include: Use energy-saving light-bulbs. Buy environment-friendly company vehicles. Recycle and reuse scrap paper and old envelopes. Don’t leave office machinery on standby. Pick an optimal temperature to operate your air conditioner at. Start a car pool for colleagues. Use laptops instead of desktops as they consume approximately 90 per cent less energy.

Use office supplies prudently: Your small business is competing against various competitors and your profit margins depend on how well you can utilise your resources. Office supplies like stationery can be misused. Keeping a close watch on purchases of such supplies can help tackle the problem of wastage. Differentiate between what is essential and what your small business outfit could easily do without. Bulk buying is always more economical than buying once a week. For example, you could buy printer ink – a costly item on the supplies list –in bulk, or use recycled printer cartridges.

Trim your phone bills: Phone usage is a necessary part of running your small business. Look for ways to reduce this expense. Spend some time on research and get plan that gives you the most mileage. You could also reduce the number of phone lines or replace the current service with an internet based service.

Utilise unused office space: Unused office space can be used for subletting. This is a good opportunity to share the rent and slice off a big portion of your overhead expenses.

Hire interns or students: When you need someone to handle administrative duties, documentation, research or related tasks, look for an intern or student. The temporary assignment can give the student the exposure he or she is seeking while allowing you to get the job done at a reduced cost.

Leverage the internet: Explore the possibility of using internet-based technologies wherever possible as they allow low cost ways to negotiate with clients. Microsoft’s “Live Meeting” technology and similar web conferencing tools can save you both valuable time and money.

Clean up your mailing list: Update your mailing list by removing changed addresses and inactive customers. No letter sent from your end should be sent back or thrown away.

Use the internet to reach potential customers: Your small business needs the required publicity and customers need to be updated about new products and services. Advertising by mail can be a low cost option for small business advertising. Through email newsletters customers can be alerted to new items or discounted services.

Reduce travel expenses: Look out for discounted fares when booking tickets. For example, travelling employees can keep costs down for your small business by opting to share hotel rooms whenever feasible.

Be prepared for unforeseen situations: Buying appropriate insurance can help your small business save money in the long run. Make a list of situations that could be disastrous for the business and explore what your coverage options are to protect you from these contingencies.

If you believed starting a business was the most difficult part and it would be smooth sailing post the start, think again! Lots of businesses start with much fan-fare on over-optimistic views and unrealistic expectations, but find themselves floundering within no time. Much of the problem lies in the fact that they fail to foresee challenges in the road ahead.

Here are a few problems that commonly plague a start-up:

Poor Market Research

You have a brilliant idea, but without a proper market-research backing, your dreams may flounder. Before investing, do a little market research; find out the size of your target market, existing competition and viability of your product/service in the current market scenario.

Lack of proper Business Plan

No new business has ever succeeded without a detailed and thorough business plan. Writing a business plan will help you: focus the mission and vision of your business, figure out exactly how the business will run, what the budget should be and realistically project how much money the business will make. Don’t rush into new markets without a clear focus and a good business plan based on solid market research and competitive analysis.

Poor Marketing Strategy

Once you have defined your target market, you need to devise a clever marketing strategy. Print advertisements, TV and radio commercials could be costly for you at this stage when you are just starting. If you believe that your potential customers can be targeted online, then reach out to them through social-media marketing or user-generated review sites. For a non-social network audience, ads in the cable TV, hand-outs with local newspapers, pamphlets displayed in local prominent stores/restaurants can be very effective. Assess the options that will work the best for you.

Money Problems

The majority of small businesses fail due to cash crunch. A common mistake that most entrepreneurs make is to assume immediate profitability that results either in the risk of raising insufficient capital or investing heavily (and often unnecessarily) in luxuries like premium-priced office furniture, top-of-the-line computer and telephone systems, hiring more employees than needed etc. Being optimistic is good, but be cautious about spending unnecessarily and start saving for a rainy day like slow sales, market recession and slow/bad debts. Keep in mind, even during cash flow problems you will still have employees and suppliers to pay.

Bad Pricing

One of the most common problems of new businesses is that they offer lower prices to beat the competition. Large companies cut costs by purchasing in bulk and through exclusive supplier contracts and better logistic planning; hence can offer rock-bottom prices for their goods and services. It’s useless to compete with them by slashing your prices; it will only eat up your profits. Instead concentrate on offering fair market value for your products, providing excellent customer service and better marketing.

Maintaining Work-Life Balance

A start-up is a serious commitment. Most entrepreneurs are seen working around-the-clock to cater to the overwhelming demands of the business. This stress most often than not spreads into the personal life too, this in turn adds to the pressure. It’s a vicious cycle. Remember, your family and friends are your support group who will see you through the tough times. Thus, it’s a good idea to make a work schedule and to strictly adhere to it to strike the right balance between your work and personal life.

I, Me, Myself

A common problem for most entrepreneurs is that they believe they can handle everything by themselves. The ‘one-man army’ is undoubtedly cost-effective but is not a wise decision in the long run. If you think you don’t need (read afford) full-time employees, then at least hire part-time resources or on retainer basis. The idea is not to frantically look for a person when you desperately need one. Good employees are like long-term reliable assets, hence investing in them is crucial for the business.

Poor Organization

It might be regarding the process of business set up, choosing a good location for your business, or taking into account applying and obtaining special permits/licenses to run your business; they all sum up to how you have perceived your business concept and organized your priorities. You can always avoid these problems by consulting a mentor, hiring people or buying programs that can help you organize.

The problems are many but how you handle those problems to keep your business up and running may indicate your entrepreneurial skills and business acumen. The best solution is to take the time to do proper research and planning when setting up your business to avoid most of the common issues.

It is also true that the pressure rarely lets up for this group: pressure to pay the rent, to grow the business, to do more than just stay afloat. ‘What keeps you up at night?’ is a classic business probe into the anxiety that fuels the actions and decisions of business leaders. If one were to ask a group of small business owners that question, at least some part of their response will match what executives in larger corporations may come up with. Maintaining a positive cash flow and keeping the sales pipeline active, for example, figure in the goals of any business. However, for a small business, these goals take on greater urgency because survival depends on meeting them.

In matters related to cash flow, small businesses have to be particularly vigilant since they don’t have the luxury of cash reserves that larger organizations do. And so, in that respect, timely invoicing, having a clear receivables policy and pushing for advances or early payments wherever possible are all sensible and essential practices. Enforcing these payment policies with clients is not always easy but it helps to cite the number crunchers in your team when pushing for payment (I’m sorry but my Finance team cannot give you more than 30 days to pay this invoice).

On the sales end, there is a need for ongoing lead generation. Here again the stakes are higher for a small business that can’t afford to see its pipeline dry up. Active marketing geared towards generating the next big deal or sale will help keep this pipeline stoked and alive.

However, making the sale is just the beginning of an ongoing quest to hold on to that portion of revenue. For many small business owners, customer retention can be a journey marked with ups and downs. In the process of adding scale, they may lose a grip on the attributes that won them customers in the first place. And so, this again is another balancing challenge that small businesses grapple with.

There are plenty of other issues that may cause small business owners sleepless nights. Staffing is one big area. Finding the right person or people to handle critical tasks, from accounting to sales is a challenge for many businesses. Another cause for worry is getting the teams to work together in a cohesive and results-oriented fashion. It calls for a consistent focus on training and skills upgrades while keeping an eye on individual aspirations. Succession planning to ensure stability when a core team member departs is also critical for a small business that can’t depend on organizational layers to soften the impact of such a departure.

The elephant in the room is, of course, staying relevant as things change rapidly around you. Will the new hypermarket in the area wipe out the results of my little stationery shop? Will online shopping and lower prices diminish the margins of my small lending library? In small business as in business in general, paranoia with regard to what tomorrow will bring is a key survival trait.

There are several valid reasons, it seems, why you, as a small business owner, should lie awake at night. On the flip side, there are also plenty of reasons for you to go to bed satisfied: for having built a business from the ground up, for believing in the value of what you offer and for carrying an entire team along on the strength of your conviction. This conviction is what is likely to get you out of bed in the morning, ready to take on a new day with fresh challenges.

Sleep well and sweet dreams!

1. How did you come up with this idea and why did you want to start PetStepin’?

 First I am a pet owner and then a vet by profession, so during my early years of practice I was invariably faced with clients bringing their pets in, as they were suffering from sickness. Also many people were giving away their puppies shortly after buying them as they felt they could not handle such a hyper pet or they did not have time to cater to its needs. Thus I decided that it was time to start a place where pets could spend their day running around, making friends…be fed and pampered while their parents were busy at work. I wanted boarding to be a fun filled, healthy experience for the pets and a stress free one for the parents. Also ‘socializing’ was a concept that was not understood by many and this is such a vital factor for the behavioural development of a pet, so I also wanted to spread more awareness regarding its importance.

Keeping all this in mind, PetStepin’ was born with a motto that says it all – “Give your pets a break…while you take yours!”

2. What are the basic factors that you included in your business plan?

When PetStepin’ started three years back it was one of the first of its kind in Bangalore, as the concept of socializing, day care and puppy crèche facilities were still new to people. Various boarding facilities were present but most of them were restricted to a cage set up or kennels with open spaces were located in the outskirts of city. Thus for me the most important factor was the location as it had to be in the city, centrally located and convenient for people to drop and pick up their pet on a daily basis. The pricing was done to cover the expenses per pet per day with discounts and offers for people with multi-pet families. We also had to consider the duration of the stay. We wanted it to be economical enough for people from all walks of life to enjoy.

Now with more awareness spreading, a lot of new facilities have opened on similar lines but the most important thing to remember in any business is to stay original and be innovative.

3. What are the legalities associated with such a business in India?

Depending on the scale of the business and services being offered at the facility the legalities and registrations vary. In case you are planning to sell stuff at the facility, then the business needs to be registered under the Shop and Establishment Act.

In case of indoor kennels, there is a certain specification for the size of the kennel spaces.

4. What sort of marketing did you initially have to do, to increase the awareness?

Posters, fliers, visiting cards, online search sites, websites and blogs are a good way to build up client base, though word of mouth referrals are the best for this business. Clients should be regularly updated about seasonal offers, discounts, promotional packages, etc.

One can stay unique by adopting different methods and thinking out of the box.

For example, at Pet Stepin’ we organize ‘Doggie Birthday Parties’ with birthday cake, decorations and games.

5. How did you go about hiring employees for your company?

The most important criteria for all working at PetStepin’ was that they have to be extremely passionate about pets and not hesitate to get hands on with the animals. The managers need to have an understanding of animal behaviour as we leave the dogs free to interact with each other. Employees need to closely monitor the animals throughout the day. Another important factor is that they need to be able to administer medication, groom the pets and sometimes even feed the fussy ones. The staff should also have networking and communication skills and need to be creative, in order to take care of the advertising and promotion of the business. Hiring people who are crazy animal lovers with the same passion and ideas is a good move.

6. What is the ideal mix of team members you would recommend for a pet day care business?

Any pet care business would require a ground staff with workers who take care of the cleaning, washing and basic maintenance of the kennel facility. Depending on the size of the business you can decide the number of people you would like to work with.

PetStepin Team Members

We at present have a full time manager who handles the kennel bookings, accounts and management. There is a coordinator who takes care of the client updates, blog, website, advertising and basic PR functions. A certified vet is necessary to check up on the long stay boarders, update vaccinations and step in during emergencies. We also employ part-time managers who work during weekends to help out with the check in and checkout, socializing and handling of the dogs during our busy time. We also encourage kids to volunteer during the holidays so they can learn what it takes to keep a pet.

7. How important is the name of the business in this industry?

I personally feel the name is what defines the business. It should be warm and inviting and yet explain what the business is about. Our facility was about fun and enjoyment for the pets and this is what I wanted to bring out in a peppy name like PetStepin’.

8. What sort of customer care practices did you adopt right from the start?

Along with the pets enjoying their experience it is very important for the parents to feel comfortable. Thus we make it a point for the manager to always be present during the checking or checkout of any pet. The owner has a form to fill with all details regarding meal specifications, allergies,etc and a mention to be made in case any medication or special requirements of their little one. During their stay we regularly update the parents via phone or email and after they check out we do a follow up just to be reassured that they enjoyed their holiday with us!

9. What were the challenges you initially faced and what are some of them that you are still facing?

Facing a challenge only makes you aware of how you can improve! Initially when I started PetStepin’ people could not understand how so many dogs who have not met before can live together in such harmony. They thought that dogs need to be chained or caged if they were in each other’s company, because this was the only way they saw boarding done. It’s only after they saw the amount of fun their little one was having with her friends and how she cried to come back the next day that they realised the importance of socialising.

One challenge that I still face even after three years is to make people realise the importance of our timings. At PetStepin’ we have a personal touch and would like to meet with the pet owener before their little pooch gets dropped – to know if he has any special requirements during his stay, and during pick up -to update them on all his naughty trials. Our mangers have timings and so does the kennel and we request all pet parents to please be more considerate about this, so they can enjoy our services to its best.

10.What sort of growth options are available for pet care businesses?

The pet care business is growing in leaps and bounds. People are trying to find more ways in which they can pamper their little ones. They are getting more aware of the wants and requirements of their pooches and are willing to invest in their comfort. So if you are genuinely passionate about animals and want to contribute to their lifestyle, then the sky is the limit for the things you could do in the Pet sector.

11. Could you share some words of wisdom with people who want to enter the pet care industry?

In any business, you need to have your heart in what you are doing and actually want to make a difference, to achieve anything. In the Pet care business there is an additional perk coz on a tough day when you feel things cannot get worse, a slobby lick on your face or a game of fetch can just wipe away all your blues and in your heart you know you have made the right decision!

Facebook has taken the social-networking world by storm, with both young and old glued to this newest form of social media. But there’s more to Facebook than its ‘friends-making’ feature and playing innumerable games. Facebook can be exploited and used productively by small businesses for their promotional needs thereby boosting revenues.

Here’s how you can capitalize on the resources of Facebook for your own ends:

Getting Started:

Building a Business Profile: The first step in connecting with your target audience is to build your presence on Facebook with a Facebook Page. Pages allow you to create an identity for your business and have a direct and engaging connection with your customers. Remember, it’s all about professionalism, so keep separate accounts for your personal communication and business venture.

Customize and Integrate: Customize your Facebook page to better meet your business needs:

• Upload a good profile photo and cover photo of your business. This is a big branding opportunity – your business’s logo is best suited to be the profile photo while a god picture of your product/service line can dot the cover area.
• If you have a company website, link Facebook connect buttons into it. This way, the website visitors can easily connect to Facebook with the click of a button and you can maintain contact with potential customers. If you have a physical store location, link your page with Facebook Places.

Use of Applications: You can use available apps or build your own apps on Facebook to reach to a larger audience, brand recall, and help transaction through FB. Use core technologies like:

• Social Plugins: Helps businesses to bring in viral-crowd by providing people with personalized and social experiences. When they interact with social plugins, they will share their experiences on your page off Facebook with their friends and others on Facebook.
• Graph API: Allows you to easily access all public information about people on your page. As a business owner, ascertaining your followers’ demographics can help you give a picture of your target audience and help take decisions on targeted marketing, types of promotion,etc

Spread the Word: Invite as many people as possible to join the Facebook page; the more fans you have, the more people will frequently look at your business information. Remember, Facebook works as a second website. So frequently update your page with the latest news from your business and give interested parties more information.

Marketing Solutions:

Your Facebook page is a powerful platform for promoting retail sales and special offers. It’s proven that Facebook homepage ads have resulted in increased brand awareness and purchase intent users who saw them. Target the right audience with your ads including location, interests, broad interests and demographics. Here’s also how you can mobilise your social-networking skills to leverage the benefits:

Discounts and Deals: Offer discounts or special deals to your Facebook friends. Encourage them to share a sales ‘event’ or ‘like’ your page. Every ‘Like’ gets published into the News Feed creating word of mouth. Club it with contests that often result in increased traffic and memberships. You can even partner with other small businesses and promote one another’s products/services on the Facebook page like coupons etc.

Be Interactive: Visit your business Facebook page every day and make it a point to respond to every question and comment promptly. Communication is the key to small business’s success. Open up a discussion forum and engage with your fans and customers on a regular basis. Solicit feedback from them and use suggestions positively.

Some Don’ts:

• Keep personal comments off the Facebook wall as it corrodes your professional outlook. Business profile should be strictly maintained for business.
• On the wall, use correct English and full words instead of shortcut words or SMS language.
• Don’t use bad language, indecent words, and vulgar jokes as it would be in bad taste. Refrain from uploading any objectionable video/photos.

Ride the bandwagon of Social Media marketing. It’s a revolution that’s going to stay.

Monica Agrawal - GoGappa.com

With new online gifting portals mushrooming by the day, what users really need is a service which not only has quality products but also makes gifting very convenient for them. At GoGappa.com, they promise just that. Here is a team that believes in luxury gifting – premium quality products which are both unique and elegant and which are thoughtfully accompanied by a stylish presentation delivered at the doorstep. The users even have the option of personalizing and customizing their gifts according to their requirements.

Monica Agrawal, a computer engineer from Mumbai University and MS from University of San Francisco, has worked for a couple of successful start-ups in Bay Area, USA before returning to India to start this venture of meaningful gifting.

Talking to her gave us a few interesting insights…

What was the motive behind starting GoGappa.Com?

With GoGappa, we wanted to bring some much-needed freshness in the existing gifting market in India, give our users the liberty of creating their own gifts as well as personalizing them.

So what has been the key to your business’s success?

We are a one-stop solution for our client’s gifting needs. From product selection to packaging to delivering them across any part of the country, we offer our clients the end-to-end package. We take pride in having a dynamic combination of high quality products with an excellent service.

And what are the major challenges that you face in your business?

With an ever-evolving and dynamic online gifting industry, one needs to be constantly on the toes to come up with new innovative products to attract and impress the customers.

Moreover, gifting is incomplete without packaging. Packaging has become the hottest thing with new ideas and trends coming up every day. We have to think of new packaging ideas that complement the gifts.

Have you benefitted from the use of any specific technology for your regular operations?

Currently, we are using a third-party platform for all our e-commerce requirements.

Signature Wooden Box & Chocolate Decadence Goodie Bag

What are your expansion strategies?

We are using the new-age marketing strategies like:

• Search Engine Optimization and Search Engine Marketing to increase our visibility.
• We are also available on Social media like Facebook, Twitter and blogs.

What has been your strategy for customer satisfaction?

We believe that – premium quality products, timely product deliveries and an excellent customer service experience work the best for over-all customer satisfaction.

What has been your strategy to increase customer base?

Impressing our current customers and SEO should take care of that for the moment.

What are the top 3 skills needed to be a successful entrepreneur?

An entrepreneur needs:

• to execute quickly without much dilly-dallying and with aplomb,
• to think out-of-the-box and adapt to the changes,
• to possess a big vision.

 
***********************

History is witness to the fact that a student-teacher relationship, when metamorphoses to a mentor-mentee relationship, kings are crowned, dynasties established and opposition overthrown. Much what Chandragupta Maurya and Alexander achieved in the able tutelage of Chanakya and Aristotle respectively. Both these learned gurus helped shape the character and paths of two of the greatest kings in ancient history.

In ‘kalyug’ or the new-age, business enterprises are nothing less than kingdoms that require both day-to-day management as well as strategic thinking. Getting started on a business idea and launching it, is just the start of the game of managing your sails as you steer through innumerable ‘weather conditions’, nay business/market conditions. In your business journey, you will face a lot of hurdles and make a number of mistakes. Of course, there will be your friends and family, ex-colleagues, web content and periodicals to give you information, suggestions and supposed help. Then there are consultants, coaches and networking contacts who can share their expert knowledge in particular situations. But it is only a mentor who can share his wisdom and experience with you on demand.

Who is a mentor?

A mentor is an individual with a vast entrepreneurial knowledge and business experience who is willing to share his experience, wisdom and expertise.

Why he would be a mentor?

• Many successful individuals would agree to do mentoring as their responsibility towards the community.
• They get to hone their skills as a teacher, consultant and guide.
• They like to interact with young and aspiring entrepreneurs with new ideas.

The following are the benefits that you get from a mentor:

• Being there: Most often than not an entrepreneur flies alone, so a person who lends an ear always helps. A mentor will listen to your ideas attentively and understand them fully. Most importantly, he would be there when you need him the most.

• Sharing Experience: He has been there and done it all! He might not be from your turf or he might not be updated with the newest technology and trends. But what he would have is his wisdom and experience gained over the years through mistakes and successes that he would impart to you.

• Planning and strategizing: Through proper planning and focused strategies, he would navigate you through challenges and tough situations. Moreover, a mentor would also keep you focused on your short-term and long-term goals and help you achieve them through support and necessary resources.

• Lending encouragement: He would encourage you in your ideas and lend a positive feeling for undertaking constructive risks. On the other hand, he might criticize you on your performance if he thinks you have deviated from the goal or urge you towards self-evaluation.

• Building Contacts: When you need to find investors, equipment and legal/accounting advice, your mentor has the necessary contacts and knows where to find the must-have information. Furthermore, a mentor urges you to build and maintain your own list of contacts.

• Long-Term Relationship: A mentor plays an important role in the careers of most successful entrepreneurs. He helps you build your strengths to avoid pitfalls and overcome challenges. The relationship based on trust and mutual understanding evolves over time and often grows into strong friendships.

Finally, as Bob Proctor, Author, Speaker and Success Coach says, “A mentor is someone who sees more talent and ability within you, than you see in yourself, and helps bring it out of you.”

How about confiding your business-related aspirations and fears with such a person then and getting help in becoming ‘business-fit’?

 
*********************

Lessons for small businesses from Indian family corporations

The Indian business landscape is dotted with family owned conglomerates. Between Tata, Reliance, Birla, Bharti, Wipro and many others, it is easy to see why a recent Economist article described these companies as comprising ‘the backbone of India’s private sector’ (The Bollygarch’s Magic Mix, The Economist, October 2011). The stories of how many of these companies made it into the big league is the stuff of business legend.

The best family owned organizations, I believe, are adept at leveraging the personal involvement and purpose that run through their genetically linked boardrooms. However, there also areas in which keeping it in the family can be a bit of a liability.

For small business owners, there are plenty of lessons to be learnt from this group, both in terms of practices to emulate and those to avoid. Here’s a list of the most prominent ones, in my view:

Practices to emulate…

Separating personal from professional

Successful business owners recognize that they can’t let personal ties get in the way of sound business decisions. The best managed family businesses have extremely well defined systems and processes in place, including guidelines for hiring, settling conflicts, communication cycles and more.

Knowing when to seek external intervention

While they may prefer to keep the vast majority of decision making in the family, many of these businesses still understand the value of bringing in an outside expert for strategic business changes and improvements. They don’t hesitate to hire professional consultants for specialised tasks, including time consuming administrative work and documentation. This can free the leaders to concentrate on other mission critical tasks.

Assessing the financial merit of every business move

When it comes to financial savvy, few businesses are as strongly equipped as family run ventures. From broad impact business decisions to petty expenses, family businesses are driven by the philosophy to invest only where it makes financial sense. There is a relentless focus on long term profitability in these organizations, a trait that every small business owner should hone.

…and a few to avoid
Leadership succession

It is true that family run organizations usually don’t have to look too far or long for new leaders, often finding them in the next generation that has grown up with the business. However, this could prevent the fresh infusion of ideas that an outsider can bring. In addition, family politics may interfere with the succession process, keeping it from being as smooth and seamless as it ideally should be.

Governance and accountability

When there are few investors outside the family gunning for results, growth may be compromised. Family owned corporations that don’t have to answer to stockholders or external boards are often less motivated to make uncomfortable business changes in the interest of driving growth.

No matter what their failings, there is no doubt that India’s successful family owned corporations are inspiring examples of entrepreneurial drive and ambition. Every small business owner can learn and benefit from the value system that is embedded in the DNA of these companies.

 
*************************************************************************

A business enterprise in India is subject to various types of taxation, both direct and indirect, depending on the type of business it is in. A few taxes that are common across the board, whether small or large business, are Income Tax, Service Tax, TDS, Sales Tax/ VAT.

In our continuous endeavour to help you succeed in your business venture, we at Intuit Small Business India, have introduced a new section that will make taxation matters easier to deal with. Introducing the FREE Tax Guidance, an exclusive service where you can ask all taxation related queries to our expert Chartered Accountants.

You can ask Questions via Facebook also.

In case you find Facebook easier to navigate, you can find the forum easily on the Intuit Small Business India page on FB. Click on the Free Tax Guidance tab and type in your question.

The salient features of this forum are

• It covers taxes such as Income Tax, Service Tax, Tax Deducted at Source (TDS) and Sales Tax/VAT.

• Our panel of CAs answer the queries, provide guidance within one working day.

• No Fees charged. This service is FREE.

• Questions can be kept confidential by simply sending it to the dedicated email
taxadvice@intuit.com

Peek into the tax related queries answered so far:

• Q – What tax is applicable to music producers/music director?

o A – Music director/producer would certainly be subject to the Income tax, additionally, the activity is covered u/s.section 65(105) (zzzzt) of the Finance Act, 1994 for levy of service tax a copyrighted activity, hence, would also attract the service tax. Music producer Company, manufacturing CDs and DVDs or other media recorded with music would.

• Q – Are CST @ 2% and excise duty a part of production cost or can be treated as input VAT credit??

o A – CST paid on purchase of goods is not available as Input Tax Credit, hence, should be treated as a part of production cost, whereas, Excise Duty paid on purchase of raw materials can be claimed as CENVAT credit while paying Excise Duty on final product, hence, should not be considered as a part of production cost, if the final product manufactured by the unit is subject to Excise Duty.

• Q – Service Tax – Transportation Service – I am transport service provider, whether service-tax is applicable to it? If yes, at what rate?

o I presume, it is Transport of Goods by Road Service. Yes, it is subject to Service Tax u/s.65(105)(zzp) of the Finance Act, 1994. An abatement @75% is available, hence, the service tax would be charged on 25% of the Gross amount charged from customer. Presently, the Service Tax rate is 10% plus 2% education cess and 1% SAH education cess, making it 10.30%, hence, effective service tax on the said service comes to 2.575% (25% of 10.30%) upto Mar 31, 2012. As the Service Tax rate has increased to 12% wef April 1, 2012, the effective rate would be 3.09% (25% of 12.36%) from 2012-13.

Intuit Small Business India’s Tax Guidance forum is user-friendly, business-centric and has been made for the benefit of small and medium businesses in India. Go ahead and ask as many questions that you may have.
*************************

While planning to step into the world of business, you need to draw up not only your business plan, product/service model, financing options, but also make a comprehensive list of all the compulsory regulations that your business entity will have to comply with such as the taxation legislations, licensing requirements, etc.

One such important legislation is the Shops and Establishments Act, enacted by every state in India to regulate conditions of work and to provide for statutory obligations of the employers and rights of the employees in un-organized sector of employment and other establishments in their jurisdiction.

In this article, we will discuss the applicability and requirements of the Shop and Establishments Act in greater detail.

Which businesses come under the purview of Shops & Establishments Act?

A Commercial Establishment including:

• A commercial or trading or banking or insurance establishment, or
• An establishment or administrative service in which persons employed or mainly engaged in office work, or
• A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house or
• A theater, cinema or any other place of public amusement or entertainment.

Regulations Under The Act:

This act lays down the following rules:

• Working hours per day and week.
• Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.
• Rules for employment of children, young persons and women.
• Rules for annual leave, maternity leave, sickness and casual leave, etc.
• Rules for employment and termination of service.
• Maintenance of registers and records and display of notices.
• Obligations of employers as well as employees.

Records to be maintained for registering under S&E Act:

Every business has to be maintain the following records under Shops and Establishments act:

• Approval from Department of Labor.
• Various registers giving details of employment, fines, deductions and advances, salary, holidays, etc. The names of the register may vary from state to state, and hence, it is a prudent practice to request the exact nature of documents that your state might need from your municipal corporation. Files related to annual holidays, number of employees need to be submitted at the Office of the Municipal Corporation annually.

Procedures under this Act:

Every shop/establishment is compulsorily required to register itself under this Act within 30 days of commencement of work.

Registration Certificate:

• The business owner should send to the Inspector (Chief Inspector of Shops or other Inspectors under the Act) of the area concerned, an application form and fees detailing:
o Name of the establishment, the employer and the manager, if any;
o Postal address of the establishment;
o Such other particulars as may be prescribed.

• The Inspector, on verifying the statement, shall register the establishment in the register of establishments and issue a registration certificate. This certificate has to be prominently displayed at the establishment and needs to be renewed before it expires.
• If there is any change in the initial statement, the same has to be communicated within 15 days to the Inspector and he will make changes in the register of establishments and issue a fresh registration certificate.

Closure of Business:

And in case of closure, the same has to be communicated to the authorities within 15 days from the closing of the establishment.

Important to Note:

The rules under this act vary as per the states. We recommend you to consult the S&E Act with the Administrative Office/Municipal Corporation in your city.

Legal requirements adhered to timely and in full, ensure not only the continuity but also the smooth running of your business.

 
****************************

Amit Sharma - Vouchersmate

We all know how buoyant the E-commerce market is in India currently. In the same arena, we have an online gifting portal, Vouchersmate that caters to the Indian market across 200 Indian towns and cities. Tied up with big partners like Adidas, UCB, Pizza Hut, Costa Coffee, Lifestyle Stores, PVR Cinemas, Landmark Bookstores, Reebok, Dominos Pizza, Lakme Salons, Archies – Vouchersmate allows you to gift greeting cards, personalised gifts, gift vouchers redeemable pan-India and for all occasions from the ease of your desk.

We spoke to Amit Sharma, the brain behind ‘Vouchersmate’, to understand his sentiments about the e-com scenario and how his venture was geared to make the most of this climate. Amit is a computer-science engineer and an ex-Captain in the Indian Army.

E-commerce ventures are under increasing strain in India as the payment models adversely affect a business’s working capital management. Do you face this problem too?

Not really, as our business revenue model allows us the cushion to run the payment models with the customer pull-effect i.e. customers are keen to buy our products rather us pushing our products to customers.

What have been your major challenges in starting Vouchersmate? And what type of challenges you still encounter now that your gifting portal is up and running?

Logistics and supply chain are still in pretty dormant stage in India and need major overhaul to streamline the operations which could result in smoother and faster operations.

Big brands are averse to new ideas with a full bureaucratic style of layered functioning thereby defeating the innovation model of success.

What has been your strategy for Customer Satisfaction?

We pride ourselves in having a post-sales process with extremely close communication with our customers throughout the process right from placement of order to delivery of goods. Hence we enjoy a very high brand loyalty.

What has been your strategy to increase customer base?

Customer loyalty and word-of-mouth marketing from our customers does the trick.

Exciting Trip

With more and more gift portals mushrooming online, what are your plans to reach out to your target audience?

Gifting is an extremely performance-based market with a tremendously high referral rate. Due to our excellent service to our customers, we stand out among the competition. We bring this freshness of approach to the market.

How do you perceive the competition in this arena in the days ahead?

The biggest need of the hour is innovation that can smoothen the delivery process. Players having an efficient delivery system in place will give a tough competition to the others.

How have you managed the funding?

We have managed it on our own. We did not have to source it externally.

What according to you are the top 3 skills needed to be a successful entrepreneur?

• Patience to wait and Persistence to deliver the same high quality to your customers all the time.
• Hands on approach to understand every core process to be able to streamline them for scalability and efficiency.
• I think that innovation and vision goes hand in hand. So if your approach towards the market has a vision based on product innovation you are bound to succeed.

Want to know more about this success story, follow us on http://www.vouchersmate.com/

********************

New-age businesses and new-age technology enablers have changed the way business is done. And nowhere perhaps is this change more prominent than in the world of marketing. Social-media marketing, blog marketing, web-based marketing and such others have invaded the traditional marketing tools. And going by their increasing popularity and deployment, we know that they are here to stay.

In this blog post, we will give you a comprehensive analysis of how to make blog-marketing one of your chief weapons in your marketing arsenal. But first, here is the answer to ‘why use blogs?’ The business reasons are:

• They impact your sales
• They bring in customers and affect mindshare
• They are easy to use, soul stirring and provide great results.

Give your business a voice:

To begin with, blogging notifies the world of your business’s portfolio of products and services. Commercial blogs are inexpensive and a great tool to communicate to the world of your capabilities, requirements, areas of interest. In turn you get valuable returns in the form of comments and feedback.

Shape up the way society looks at you:

In discussion forums, the objective is often lost and the audience tends to sway. However, in blogs, the motto is kept upfront at all times. There is nothing that sells better and faster than word of mouth. Get blogging and develop a community around the services you provide. Blogging can facilitate you to manoeuvre swarms of traffic to your company website, consecutively getting you more clientele.

Launch-Pad:

Blogging is the one of the best ways to promote or introduce new products in the market. If your business venture is extremely challenging, you can even get a regular blogger to build your blog-bank.

A few Dos and Don’ts:

• Make sure that you do not choke your blog. Too much information can annoy your followers.
• Maintain a standard frequency for publishing the blogs. The frequency could be once a month or week but it’s good for regular readers to see a pattern.
• Frame a standard business policy on what will be ‘talked about’ in the blog and how the discussions will be driven. In the absence of a structed approach, the blog site will give a confused ‘look and feel’
• Respond immediately to all comments, irrespective of their nature. In case of negative comments, make sure to find out the reason why the person has written about your business in bad light and take immediate corrective action.
• Never shy away from negative feedback. Instead, use it to strengthen your service/product delivery.
• You may encourage your employees to contribute to the blogs or participate in the discussions. Remember however, to brief them on the policy guidelines and business expectations.

Blogs can open a window for your business to form a community of like-minded people and hence interact better with clients and other contacts. When employed judiciously, it will contribute in large measure to your brand’s recall capability.

Tread slowly and you will surely build up your brand with your blogging efforts.

*******************

Start-up costs for a new business can be considerable — purchase of goods and equipment, marketing costs, payment to employees and the list goes on. As it’s not always feasible to bootstrap your way through major expenses, you may want to consider external funding. Loans from commercial lenders like banks or private lending institutions may be an option, but consider the pros and cons of seeking a commercial loan.

Pros

• While commercial lenders will review your business plan detailing the potential use of the funds that you’re seeking, they neither have a say in your business operations, nor in how you manage your funds.

• Commercial lenders also are not entitled to your profits. Their only look-out is the debt repayment.

• A business loan usually has a low interest rate in comparison to many other funding options (like credit cards, finance companies) though the repayment terms of the numerous commercial loans may vary.

• The interest payments on your business loan can be deductible on your taxes. That perhaps is one of the biggest advantages!

• A small business loan can have access to large sums depending on the actual requirements of your enterprise. The money is available for immediate use, builds a credit rating (which helps in securing future loans) and also creates a good financial reputation for your business from early stages.

Cons

• For a start-up, commercial lenders follow strict guidelines and therefore require more information – thorough knowledge of your business’ potential structure and general modus operandi, information about other potential investors, and profit and cost predictions – and a lengthy review process. Lenders also need to be assured that you have a good credit rating and you are trustworthy so that you are more likely to repay the loan.

• A commercial lender’s rates are dependent upon government policy and the whims of the market. Rates may fluctuate in the early stages while profits may not be able to keep up. Remember that small business loan interest rates tend to be high in the first place (and continue to increase as you borrow more).

• Most commercial institutes will insist that you provide collateral in the form of a property asset (stock portfolio, house, etc.) in order to secure themselves. In case your business goes kaput and you cannot repay your loan, the lender can reclaim its debt by liquidating whatever you proposed as security. Hence, you risk losing a valuable asset.

• A bank loan belongs to the bank. Thus, a loan appears on the liability side of the balance sheet. It affects the valuation of your business.

Whichever source of funding you seek, remember there will be pros and cons associated with each option. Choose wisely depending on your financial status and requirement criteria.

**********************

“Money saved is money earned”.

As a small business owner, your priorities are to perform well in the cut-throat competition and look for opportunities to grow, all the while cutting down on costs without affecting the service/product quality. For the same, you need to diligently look to control costs, small or big, and make sure you are not losing money due to unnecessary expenditures or leakages.

Salaries

Employees’ salaries make a considerable chunk of your business expenses. While it is important that you compensate your employees suitably, it is also imperative to check once in a while whether the salaries you pay are justified. Try answering the following employee-related money leakages and you should be able to find out:

• Are you paying for a full-time employee when the task can be outsourced for a minimal fee?
• Are you over-staffed? Can assignments be re-jigged and consolidated to ensure maximum contribution?
Also remember, employee turnover can be very costly for a business in terms of the time it takes to re-hire and re-train staff.

Rent

Remember, office space not only costs you rent but also hidden expenses like maintenance, repairs, and utilities. You might be spending more than you bargained for. Do you really need all the office space that you are paying for? If your answer is ‘No’, look for a smaller space as per the actual needs immediately.

Billing, Collection and Payment

This is a primary area of opportunity for income optimization.

• Insist on a timely billing and collection system with your customers. Late billing and collection not only generates cash crunch but you also lose out on valuable bank interest.
• Monitoring accounts receivables will enable you to keep track of your aged receivables in order to reduce the number of days an outstanding claim remains unpaid.
• Likewise, ensure timely payments to your suppliers (of goods, small office supplies, rent or facilities). It makes no sense on losing money on late fees and interest charges. Moreover, many suppliers offer rebate on early or timely payments.

Payments for Services

• Operational Service Providers: Take a look at some of the services you require like internet or telephone connection and find out whether better and cheaper options for these services exist. Chose the rate plan that’s appropriate for your business. You can even talk to your existing relationship manager and negotiate a better deal on the current services.
• Financial Services: Compare fees, from time to time, charged by your financial institution. Are you paying more in monthly banking fees than is prevalent in the market? Can you find a better banking relationship somewhere else? If your answers are in the affirmative, talk to your current bank’s manager and ask for the same terms that you can get somewhere else.
• Professional Services: Are you paying more for consulting or professional services (legal, accounting, advertising etc.) than you should? Would you save money by hiring someone full-time for this work, or are there other less expensive ways of getting these services?

Miscellaneous Stuff

It might seem like a small value, but such small savings counts a lot in the long run. Little expenses like office supplies, tea/coffee, and washroom supplies for the staff can add up to be a big expense. This doesn’t mean you should cut out all the extras. Just be a little more attentive on what you spend, make sure you shop around for the best prices and don’t purchase things that aren’t needed or used.

Fixing a leak doesn’t necessarily mean simply cutting staff or expenses. It’s not just about the cost either. It’s about justifying your expenses as per your requirement and to keep a close check on the specific areas that warrant a review so that the avoidable expenses can be plugged and the entire savings scenario re-worked.

********************

Though currently the e-commerce market in India is around $ 10 billion, a recent report, ‘E-commerce: A boon for the current economic downturn’ by First Data Corporation and ICICI Merchant Services, has pegged a few interesting numbers on the E-Commerce picture in India. It says:

• The domestic market in India has the potential to grow between $ 125 billion and $ 260 billion by 2024-25
• About 150 million internet users or around 75 million households that are ‘ready’ for e-commerce
• Almost 57 per cent of e-commerce sales come from small towns, while the 8 metros account for the remainder.

These are encouraging numbers for an industry that has been plagued with a sceptic outlook so far what with ‘mode-of-payment’ problems threatening to bring it down. In this article, we will take a look at the payment gateways that are available to small e-com ventures in India and how to read the finer prints before singing up a contract on payment with a vendor.

Types of Payment Gateways: Payment Gateways are of two types in India: One, the Bank itself which provides its own payment gateway and the other, are the third-party services which tie up with many banks to provide a gateway.

• Banks: Many banks provide merchant services to businesses to use their payment gateway that enables organisations to accept secure online payments over the Internet. Chief among them are:
o ICICI Payseal
o HDFC Payment Gateway
o Citibank Payment Gateway
o AXIS Bank Payment Gateway
Contact the Merchant Services division of the banks to get a quote/more info on your requirements.

• Third-Party Payment Gateway Providers:

• CCAvenue : CCAvenue’s payment gateway solution offers eMerchants with real time, multi-currency, multiple payment options online payment processing services including all types of credit-card processing through multiple banks and card associations, debit-card processing, direct debit to bank accounts of Indian, Chinese Banks and Singapore Banks.

o EBS: With its TranSafe solutions, EBS plans to meet the increasing E-commerce demand by businesses for every payment solution. Probably most suited to small businesses, it’s plans are cheaper compared to most payment gateways.

o DirecPay: Another integrated online payment gateway solution for Indian merchants, DirecPay offers a suite of services. It’s low fees make it desirable with new businesses or start-ups

o Paypal: Though a big player, it doesn’t support transactions in Indian Currency, and hence it adds a currency conversion fee on the credit card. This has turned out to be quite deterrence for Indian businesses.

Remember these: The following fine points will help you decide which payment gateway provider to select:

• Banks often offer competitive rates towards set-up fees and transaction costs (called TDRs of approx. 3%) for high-volume businesses. However, for low-volume businesses or start-ups, they can prove to be expensive. While, most third-party providers offer low start-up fees (sometimes as low as INR 5000) to smaller businesses but can charge exorbitant transaction fees (as high as 7% per transaction in comparison to about 2.5 -3 % in banks). Make a good assessment of the volumes you expect to have in order to make the right choice
• Considerable paperwork is often required in order to get the payment-relationship get started. However, if you have an existing relationship with the bank, you may use the same account to receive payments.
• The integration time is usually more in banks compared to the third-party players. But banks have the advantage of offering automatic upgrades and scalability.

A complete market research and a thorough business assessment with regard to volumes, requirements will help you decide which type of payment gateway provider is best suited for your venture. And finally, your negotiation skills will give you the perfect plan you are looking for.

 
**************************************************************************************************

We all know that customer satisfaction is vital for any business to survive and thrive. The best way to know whether your customers are satisfied is to conduct a Customer Satisfaction Survey.

A survey can be a six-monthly or yearly affair to find out:

• What the customers like/dislike about your products/services,
• To get innovative ideas or
• To gauge your competitors.

Hence, it is very important to brainstorm and come up with the perfect questions that can get the customers’ pulse. Follow our tips to make a user-friendly Customer Satisfaction Survey.

• Product Feedback: Find out what you would like to know in terms of their views of your products, the level of customer service they receive and their opinion of your business as well as your competitors.

o How satisfied are you with the product purchase you made?
o How satisfied are you with the service you received?

If some people give a negative feedback to any of the above questions, you may wish to follow up with a question asking why.

• Loyalty Assessment: Even though it’s a customer satisfaction survey, its purpose is to find out more than just whether your customers are satisfied. The next thing, then, is to know whether the satisfied customers will stay loyal and come back to you again.

o Would you like to buy from us again?
o Would you like to recommend our product/service to others?

• Pricing Feedback: Draft questions in such a way that you can find out what the customers think of your pricing strategy. The answers will give an insight whether your products or services are over-priced/under-priced vis-a-vis your competitors.

o Do you feel our prices are competitive?
o Would you like to purchase from somewhere else if a similar product/service is offered at the same price?

• Buying Behavior: You can get some valuable information if you ask the users contextual questions so that you know whether the customers are frequent or seasonal buyers. It helps in formulating marketing strategies, procurement of goods and hiring of staff.

o How often you visit our store?
o How long have you been using our products/services?
o Which are the occasions when you visit us?

• Demographic Assessment: In addition to the above questions, it may be useful to ask some basic demographic questions to know who your customers are and what they do. These questions will ask customers’ age group, gender, occupation and earning bracket to give you a picture of who are the people using your business the most, and what groups of people you may need to target more aggressively through marketing.

A basic thumb of rule is to keep your survey concise and precise. Including too many questions runs the risk of people losing interest halfway through the survey and not completing it!!!

*****************************

The 2012 Union Budget is widely viewed as a pragmatic one. For the next fiscal, the government is projecting a growth of 7.6 per cent, directing its efforts at reducing the deficit while highlighting education and infrastructure as key areas for growth.

So far, so good. When it comes to other sectors like IT, Power and MSMEs, the budget however, doesn’t really deliver in a strong way. For the most part, small businesses just get a passing mention in this budget, with few incentives and programs geared specifically for them. This has to be disheartening for a sector that is widely credited with fuelling economic growth and job creation.

Here’s my take on what’s good and not-so-good for small businesses in this budget:

The Bright Side

Skill development

One of the better moves in this budget is the allocation of INR 10 billion towards the National Skill Development Fund. This will be helpful in upgrading skills and addressing the shortage of suitable talent in the Indian workforce.

Revised tax slabs

Raising the limit for compulsory tax audits for SMEs to INR 1 crore from 60 lakhs will also bring relief to many SMEs, especially as we are still in recovery mode. On the same lines, the income tax of 20 per cent previously limited to those in the 5 to 10 lakh income bracket, has now been extended to cover those making 8 to 10 lakhs. The extension in the tax slab translates into higher disposable incomes for people, which has positive implications for consumption and growth.

Purchase and procurement policy

The policy requiring Ministries and Central Public Sector Enterprises (CPSEs) to make a minimum of 20 per cent of their annual purchases from MSEs has finally been approved. Four per cent of this has been set aside for procurement from MSMEs owned by Scheduled Caste/Tribe entrepreneurs. This is a welcome move in support of MSMEs.

The Flipside

Increased indirect taxes

One of the biggest drawbacks of this budget for SMEs, is the increase in indirect taxes. In tackling the fiscal deficit, the Finance Minister appears to have gone the tax increase route, rather than the expenditure management one. The two per cent increase in service taxes and excise duty can adversely affect numerous players in the SME sector. Most of all, it can curb the very consumption that leads to economic growth.

Not much for IT

The IT industry has been largely side-lined in the 2012 Budget. This may prove detrimental, since many start-ups and existing SMEs operate in the IT sector.

The tax holiday for software technology parks and export oriented undertakings expired last year, without any extension. Unfortunately, it was not re-introduced in this year’s budget. This would have greatly helped SMEs in their efforts to set up shop or expand their operations.

Higher indirect taxes will also have an adverse impact on operational costs and prices. Several IT-based SMEs starting up or expanding in Tier I and Tier II cities may have to scale back their plans. This will have a negative impact on overall economic growth.

DTC and GST

Despite talk of revising the Direct Tax Code (DTC) and Goods and Services Tax (GST), the budget doesn’t present a clear plan and time line for implementing these revisions. This is disappointing for SMEs that have waited a long time for these business impacting changes to the tax code.

In the final analysis, the 2012 Union Budget forces small businesses in India to look for indirect ways to benefit from the slew of new policies and funds being introduced across sectors. However, the SME ecosystem in India is strong, and has always pulled through in sun and rain. Surely, the 2012 Union Budget is not enough to dampen Indian SMEs’ spirit.

Since it is tax time, I plan to close the year by running the end with a 10 kilometer run on Saturday, the 31st March. So I suggest that you close your books, relax and plan for the next year, just to make it a little less taxing!

Joydeep - Oddroad

An incurable traveler’s appetite to explore the world is never satiated. The roads always beckon to him. He longs to tear himself away from the humdrum of the daily chores, his stressful work – the ‘rat-race’, long commuting hours, demanding relationships… the list is endless. He believes that a perfect holiday can cure it all, and transport him to a world of beauty, whether natural or man-made. Even if momentarily, for a few days.

But how often does it come true? More often than not, he comes back from such a holiday disappointed either with the climate, accommodation, tour operator or the holiday spot itself. Is then there no thing as a ‘perfect holiday’?

Looks like there is. Coming to the rescue of such a traveler is a travel portal that boasts of not only an exhaustive database of all tourist-able holidays/getaways in India but also a complete guide on factors like altitude, temperature per month, terrain, points of interest, cuisines, etc. Oddroad.com is a first such travel portal that concentrates on tourists’ preferences in order to make their holiday a memorable one.

Let’s learn more about this wonderful venture from the man “with the “Eureka” moment” himself, Joydeep Chakraborty.

We know that putting your actual thoughts into real action would not have been an easy job. Still, what have been your major challenges so far?

As you mentioned, assimilating a database of 2000 tourist-friendly destinations from over 7000 registered Indian cities, town and villages and then collecting relevant information like altitude, good accommodation, cuisines, and temperature all the year round was a huge task. Now we are in the process of doing the same for other countries.

The other challenge has been to find partners and team members who share the same passion as you. One good thing we learnt along the course was that it’s important to have an in-house development team for product development.

Exciting Trip

What is your Mantra for Customer Satisfaction?

The catch-phrase says it all “The Way I Like”. But on a serious note, we believe in providing holiday destinations based on the user’s preferences, which are based on factual data and not biased by others’ preferences or vested interests. We even have site enhancements based on user communities’ inputs and acknowledgement through rewards and loyalty drives.

What is your strategy to increase the customer base?

For that, we are relying on Social-Media Marketing through blogs/tweets/cross-linking using Facebook, Blogspot, Twitter, Flickr, LinkedIn and Pinterest. We have online engagements like competitions, freebees and loyalty programmes through social networks and other digital media. We even offer offline events like Photography workshops (refer example http://oddroad.com/current_event.php ), biking trips, merchandise, etc.

With so many travel portals abounding in the travel landscape in India, what are your plans to reach out to your target audience?

At the risk of sounding clichéd, I have to admit that Oddroad.com is the first travel portal which moves away from the usual travel ticketing, packages, review and information sites. It instead focuses on the user’s preferences in finding destinations. The broad list of mediums to reach out to them would be:

• Primarily social networks & other digital media
• Targeted print media (like travel & in-flight magazines)
• Offline events (like photography events, biking trips, road shows, etc)
• Co-branding with essential travel/outdoors related brands, etc.

How do you perceive the competition in this arena in the days ahead?

Being a ‘first-time’ concept and primarily being focused on the informed traveler, it will obviously have competition from existing players in the travel market. But the user’s experience with the product will be the key differentiator.

How important was your mentor to you when you made the plunge and now especially in your daily course of business?

Now that’s easy; Very important! Nandini Vaidyanathan (just type Nandini V in google.co.in) has been a major source of motivation, focus and wisdom during the entire journey so far. Her guidance (based on experience from her own career mentoring thousands of other entrepreneurs) and most essentially, her general no-nonsense attitude blended with an uncanny sense of humor, has helped in sorting out loads of roadblocks, self-doubts and challenges.

How have you managed the funding?

Well, I have self-funded the entire project and company.

What do you consider as the top 3 skills needed to be a successful entrepreneur?

I believe that any entrepreneur should:

• Be Passionate about the Vision… to drive it to reality.
• Have Belief in Self & Team… that ‘we can’ do it, that it will work and most importantly that ‘we are’ on the right track, is a must, even if others don’t or if we fail at times.
• Focus on the User… to listen and understand his/her needs and be proactive in addressing it to his/her satisfaction.

Since you have turned your passion into a business venture, tell us how you overcame your fears of leaving a well-cushioned life in order to leap into the wilderness of entrepreneurship?

If I had to actually start with the thought that I want to be an entrepreneur, it probably would have been quite difficult, short-lived and probably wouldn’t have taken-off. Honestly, my innate urge to discover the world we live in and the simplicity of the idea when it hit me became the primary driving forces. This coupled with the continuous belief and support from my family, friends and my mentor, has and is sailing me through the trials and tribulations of entrepreneurship!

Website: www.oddroad.com

Intuit partnered with ET NOW, a 24X7 English business news channel to present Super Angels, a path breaking program which will showcase India’s best startups competing to raise funding. Join 30 million viewers as they watch the primetime telecast of Super Angels on ET NOW! The show will broadcast on Saturday April 7th with a repeat telecast on Sunday April 8th.

Super Angels will feature five of the country’s most innovative startups and five prolific Angel Investors comprising Mahesh Murthy (Managing Partner, Seed Fund), Vishal Gondal (Founder, Indiagames), Vijay Shekhar Sharma (Chairman & Managing Director, One97 Communications), Karthik Reddy (Co-Founder, Angel Fund) and Sanjay Parthasarthy (Entrepreneur and Angel Investor). The angel investors have signed on to award between Rs. 80 lakhs to 2.5 crores worth of funds to the winning participants.

Super Angels Grand Finale was hosted at the Bombay Stock Exchange (BSE) in front of an audience comprising India´s leading technologists, entrepreneurs, venture capitalists and angel investors. Lakshman Gugulothu, CEO, BSE–SME Exchange, delivered the key note.

Intuit India’s own VP and Managing Director, Nikhil Arora, presented the five finalist startups with the Intuit Super Angels awards and one year free subscription of QuickBooks Online – the world’s leading accounting software for small businesses. Speaking about the rationale behind presenting the show Nikhil Arora stated that, “In our quest to promote entrepreneurship and develop engagements with the startup community in India, we came across Super Angels, which is a fantastic platform that recognizes and rewards the best startups in the country.”

Show Broadcast Timings:
Saturday April 7, 2012: 6.00 to 6.30 pm & 6.30 to 7.00 pm
Sunday April 8, 2012: 5.00 to 5.30 pm & 5.30 to 6.00 pm (Repeat telecast)

Mozilla Firefox is one of the best browsers available right now and its quite a boon for business and power users. Other than its safety and usefulness it also has add-ons that can make office or personal work much easier. In this blog post we share with you 10 such add-ons that can make your work easier and more productive in the office.

Toodledo– Do you enjoy having a to-do list right by your side as you work so you remember everything that needs to be done? Wouldn’t it be easier to have it with you everywhere, so you can add tasks as you go? Well this add-on helps you list down tasks, organizes them, reminds you with alarms and also can be used from your cell phone to make life easier.

XMarks– If you use more than one computer to do your work then this add-on will be very useful to you. It allows you to synchronize your settings, bookmarks, passwords and more across various systems so you can work more efficiently.

LinkedIn Companion – You can get immediate access to updates on the LinkedIn network without even navigating to the website. It allows easy access to the many features that the network has like user profiles, bookmarks for profiles and searches and more.

Meebo– Do you have friends and business contacts scattered across different messaging platforms? Then this add-on will help you save the headache of switching between the many chat clients you will have open on your screen. This add-on provides a simple sidebar to your browser showing who is online and alerts you when someone sends a chat. It even makes sending images and files easier right from your browser.

Read It Later – You may run across news articles, discussions, blogs etc that are very interesting but don’t have time to read them. This add-on allows you to save the webpage and come back to it when you have the time to read at your leisure even without an internet connection.

Open IT Online – This add-on allows you to open various documents and images online without the need for any external software to be installed. It supports various file formats and allows you to view and edit them by using Google Docs, Pixlr and more.

Print Edit – If you need to print a webpage then this add-on is for you. The add-on allows you to remove various items like banner ads, external toolbars and more from a webpage which will make it clearer when printed. You can also inspect a webpage to find out the CSS properties of a website.

Fireshot – Taking screenshots of a webpage can be a pain especially when you may need the whole webpage or just specific portions of it. This add-on allows various options to edit the screenshot once you have taken it so you can highlight the main aspects of the webpage.

Dictionary Tooltip – Don’t know the meaning of a word but don’t want to open another page to learn the meaning? This add-on gives you a tooltip which has the meaning of the word. It can be triggered with a simple double click on the word.

Mind the Time – This add-on tell you how time you have spent on the net and what pages you have browsed and for how long. It provides you with a ticker so that you can find out if your time on the web is well spent. You can even get a detailed summary everyday and for the past week.

Entrepreneurship is a mindset that can be developed by any professional who aspires to become an employer. With proper education, this mindset can be inculcated into the minds of young professionals. Entrepreneurship education seeks to provide students with the knowledge, skills and motivation required to encourage entrepreneurial success and lay down the conditions and solutions to the challenges that one might foresee in a venture.

With entrepreneurship as a career option gradually picking up in India, there are many institutes that are offering full-credit courses in entrepreneurship. Some of these are full time residential programs and some are part time.

Here is a comprehensive list of some reputed Indian institutes offering diploma/executive programs for aspiring entrepreneurs.

• Entrepreneurship Development of India (EDI), Ahmedabad

They believe that the fast pace of changes has brought out the need to innovate newer ways of establishing and managing business. To address this need the Institute pioneered a two-year Post Graduate Diploma in Management-Business Entrepreneurship (PGDM-BE).

• Indian Institute of Management (IIM), Bangalore

Management Programme for Entrepreneurs & Family Businesses. The objective of this year long programme is to equip individuals with the management skills required to start and run their own business.

• Management Development Institute, Gurgaon

They have a Student Entrepreneurship/Internship program in their Centre for Entrepreneurship. It endeavours to develop individuals, who are motivated towards wealth creation rather than towards specific job careers.

• Xavier Labour Relations Institute (XLRI), Jamshedpur

6-month Post Graduate Programme for Certificate in Entrepreneurship Management (PGP-CEM). The ultimate objective is to create effective and successful entrepreneurs out of those who have no exposure to this vocation, but have an inclination and desire to turn into such entities, and to enhance the skills of those who are currently functioning as entrepreneurs.

• National Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi

The Institute focuses its attention on small business development. It offers various programs like Small Business Promoters Programs; short workshops for SSI entrepreneurs including managing finance, export marketing for SSI entrepreneurs, Leadership and team building skills for SME Owners etc.

• Xavier Institute of Management and Entrepreneurship, Bangalore

A premier Business School offers Management Development Programme for Entrepreneurs for all those motivated individuals who wish to start or grow their own business.

• Diploma/Certificate Courses in Entrepreneurship promoted by various institutes:

o FICCI, New Delhi
o Small Industries Service Institute, New Delhi
o National Science and Technology Entrepreneurship Development, New Delhi
o ASEED and Entrepreneurship Development Institute of India (EDII), New Delhi

Eligibility for Admission

To be eligible to apply for admission into some of the Programmes mentioned above, the individuals are required to:

• Be at least Graduates from any recognized University,
• Have an interest in entrepreneurship-social or commercial- even though currently not functioning as entrepreneurs,
• Possesses basic computer literacy,
• Clear CAT, XAT or MAT with required percentiles. The eligible applicants will be subject to a process of Personal Interview and Group Discussion. Some programmes enrol students directly on payment of required fees.

A regular assessment of debt vs equity is of paramount importance for all businesses. In the case of a small business venture, this assessment becomes imperative as it helps in your long-term financial decisions-making.

Let’s then find out in greater detail about both the components, debt and equity, and what picture they can show of the business when seen together.

What is Debt and Equity?

As the name suggests, debt is what your business owes to external creditors. It includes include all debts/liabilities to outsiders, whether long term or short term or whether in the form of bonds, mortgages or bills.

On the other hand, equity is the fund that you have brought into your venture. And includes capital, accumulated profits, contingency funds, funds created to replace assets etc.

What is Debt-Equity ratio and how is it calculated?

Debt-Equity ratio is the relationship between the external debt and the internal funds of your business. This is a measurement of how much suppliers, lenders, creditors and obligors have committed to the business versus what you as a proprietor/partner have committed.

It is calculated as follows:

Debt-Equity Ratio = External Debt/Internal Funds

Ideal Ratio:

A ratio of 1:1 is usually considered to be satisfactory. However, there is no rule of thumb or standard norm for all types of businesses. Theoretically, if the owner’s interests are greater than that of the creditors, the financial position is highly solvent.

• A ratio of less than 1:1 means:
o Owner’s equity is more than debt
o The owner is bearing more risk in the business than the external creditors
o The owner has a strong financial interest in the business

• A ratio of more than 1:1 means:
o Owner’s equity is less than debt
o The owner is bearing less risk in the business than the external creditors
o The external creditors have a strong financial interest in the business than the owner

Interpreting Deb-Equity Ratio:

Since the debt-equity ratio indicates the proportionate claims of owners and the outsiders against the firm’s assets, it’s purpose is to get an idea of the cushion available to outsiders on the liquidation of the business.

Often, the interpretation of the ratio depends upon the financial and business policy of the business concern –

• The owners want to do the business with maximum of outsider’s funds in order to take lesser risk of their investment and to increase their earnings by paying a lower fixed rate of interest to outsiders.
• The outsider’s (creditors), on the other hand, want that the owners should invest and risk their share of proportionate investments.

Finally, too much debt can put your business at risk and indicates possible difficulty in meeting interest and principal repayments. While, too little debt may suggest you are not taking advantage of opportunities and realise the full growth potential of your business.

****************************

Article contributed by CA Varun Nirmal

DIRECT TAXES

• DTC rates proposed to be introduced for personal income tax.
• Exemption limit for the general category of individual taxpayers proposed to be enhanced
• From INR 1,80,000 to INR 2,00,000 giving tax relief of INR2,000.
• Upper limit of 20 per cent tax slab proposed to be raised from INR 8 lakh to INR10 lakh.
• Proposal to allow individual tax payers, a deduction of upto INR10,000 for interest from
savings bank accounts.
• Proposal to allow deduction of upto INR 5,000 for preventive health check up.
• Senior citizens not having income from business proposed to be exempted from payment
of advance tax.
• To provide low cost funds to stressed infrastructure sectors, rate of withholding tax on interest payment on ECBs proposed to be reduced from 20 per cent to 5 per cent for 3
years for certain sectors.
• Restriction on Venture Capital Funds to invest only in 9 specified sectors proposed to be removed.
• Proposal to continue to allow repatriation of dividends from foreign subsidiaries of Indian companies at a lower tax rate of 15 per cent upto 31.3.2013.
• Investment link deduction of capital expenditure for certain businesses proposed to be
provided at the enhanced rate of 150 per cent.
• New sectors to be added for the purposes of investment linked deduction.
• Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an inhouse
• Facility for a further period of 5 years beyond March 31, 2012.
• Proposal to provide weighted deduction of 150 per cent on expenditure incurred for
agri-extension services.
• Proposal to extend the sunset date for setting up power sector undertakings by one year
for claiming 100 per cent deduction of profits for 10 years.
• Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs
to be raised from `60 lakhs to `1 crore.
• Exemption from Capital Gains tax on sale of residential property, if sale consideration
is used for subscription in equity of a manufacturing SME for purchase of new plant and
machinery.
• Proposal to provide weighted deduction at 150 per cent of expenditure incurred on skill
development in manufacturing sector.
• Reduction in securities transaction tax by 20 per cent on cash delivery transactions.
• Proposal to extend the levy of Alternate Minimum Tax to all persons, other than
companies, claiming profit linked deductions.
• Proposal to introduce General Anti Avoidance Rule to counter aggressive tax avoidance scheme.
• Measures proposed to deter the generation and use of unaccounted money.
• A net revenue loss of `4,500 crore estimated as a result of Direct Tax proposals.

INDIRECT TAXES

Service Tax

• Service tax confronts challenges of its share being below its potential, complexity
in tax law, and need to bring it closer to Central Excise Law for eventual transition
to GST.
• Overwhelming response to the new concept of taxing services based on negative
list.
• Proposal to tax all services except those in the negative list comprising of 17
heads.
• Exemption from service tax is proposed for some sectors.
• Service tax law to be shorter by nearly 40 per cent.
• Number of alignment made to harmonise Central Excise and Service Tax. A common simplified registration form and a common return comprising of one page are steps in this direction.
• Revision Application Authority and Settlement Commission being introduced in Service Tax for dispute resolution.
• Utilization of input tax credit permitted in number of services to reduce cascading of taxes.
• Place of Supply Rules for determining the location of service to be put in public domain for stakeholders’ comments.
• Study team to examine the possibility of common tax code for Central Excise and Service Tax.
• New scheme announced for simplification of refunds.
• Rules pertaining to point of taxation are being rationalised.
• To maintain a healthy fiscal situation proposal to raise service tax rate from 10 per cent to 12 per cent, with corresponding changes in rates for individual services.
• Proposals from service tax expected to yield additional revenue of `18,660 crore.

Other proposals for Indirect Taxes

• Given the imperative for fiscal correction, standard rate of excise duty to be raised from 10 per cent to 12 per cent, merit rate from 5 per cent to 6 per cent and the lower merit rate from 1 per cent to 2 per cent with few exemptions.
• Excise duty on large cars also proposed to be enhanced.
• No change proposed in the peak rate of customs duty of 10 per cent on non-agricultural goods.
• To stimulate investment relief proposals for specific sectors – especially those under stress.

Agriculture and Related Sectors

• Basic customs duty reduced for certain agricultural equipment and their parts; Full exemption from basic customs duty for import of equipment for expansion or setting up of fertiliser projects upto March 31, 2015.

Infrastructure

• Proposal for full exemption from basic customs duty and a concessional CVD of 1 per cent to steam coal till 31st March, 2014.
• Full exemption from basic duty provided to certain fuels for power generation.

Mining

• Full exemption from basic customs duty to coal mining project imports.
• Basic custom duty proposed to be reduced for machinery and instruments needed for surveying and prospecting for minerals.

Railways

• Basic custom duty proposed to be reduced for equipments required for installation of train protection and warning system and upgradation of track structure for high speed trains.

Roads

• Full exemption from import duty on certain categories of specified equipment needed for road construction, tunnel boring machines and parts of their assembly.

Civil Aviation

• Tax concessions proposed for parts of aircraft and testing equipment for third party maintenance, repair and overhaul of civilian aircraft.

Manufacturing

• Relief proposed to be extended to sectors such as steel, textiles, branded ready made garments, low-cost medical devices, labour-intensive sectors producing items of mass consumption and matches produced by semi-mechanised units.

Health and Nutrition

• Proposal to extend concessional basic customs duty of 5 per cent with full exemption from excise duty/CVD to 6 specified life saving drugs/vaccines.
• Basic customs duty and excise duty reduced on Soya products to address protein deficiency among women and children.
• Basic customs duty and excise duty reduced on Iodine.
• Basic customs duty reduced on Probiotics.

Environment

• Concessions and exemptions proposed for encouraging the consumption of energy-saving devices, plant and equipment needed for solar thermal projects.
• Concession from basic customs duty and special CVD being extended to certain items imported for manufacture for hybrid or electric vehicle and battery packs for such vehicles.
• Proposal to increase basic customs duty on imports of gold and other precious metals.

Additional resource mobilisation

• Proposals to increase excise duty on ‘demerit’ goods such as certain cigarettes, hand-rolled bidis, pan masala, gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco.
• Cess on crude petroleum oil produced in India revised to INR 4,500 per metric tonne.
• Basic customs duty proposed to be enhanced for certain categories of completely built units of large cars/MUVs/SUVs.

Rationalization measures

• Excise duty rationalised for packaged cement, whether manufactured by mini-cement plants or others.
• Levy of excise duty of 1 per cent on branded precious metal jewellery to be extended to include unbranded jewellery. Operations simplified and measures taken to minimise impact on small artisans and goldsmiths.
• Branded Silver jewellery exempted from excise duty.
• Chassis for building of commercial vehicle bodies to be charged excise duty at an ad valorem rate instead of mixed rate.
• Import of foreign-going vessels to be exempted from CVD of 5 per cent retrospectively.
• Duty-free allowances increased for eligible passengers and for children of upto 10 years.
• Proposals relating to Customs and Central excise to result in net revenue gain of INR 27,280 crore.
• Indirect taxes estimated to result in net revenue gain of `45,940 crore.
• Net gain of INR 41,440 crore in the Budget due to various taxation proposals.

UnWrapIndia

UnWrapIndia is an initiative to promote “100% Made in India products”. It promotes Indian arts that were dying a slow death in the bling urban lifestyle. UnWrapIndia provides a platform to rural artisans to showcase and sell their wares to a wider audience.

Archit Arya, Chief Technology Officer, will throw some light on this venture dedicated solely to products that are 100% Made in India. Archit, a B’Tech in Information technology from IIT Guwahati, has worked at IBM and Via.com before moving on to Adjetter Media and UnWrapIndia.

Archit, please unwrap UnWrapIndia for our readers.

UnWrapIndia is a first-of-its-kind e-commerce site that sells 100% Made in India handicrafts. Today, we get carried away by ready-made machine assembled products that has led to a neglect of the beautiful Indian handicrafts. With this initiative, we focus on promoting the rural arts by bringing them into the forefront.

What has been the key to your business’s success?

I would say that a like-minded and focused approach of our team, a strong marketing backbone (Adjetter Media Network Pvt. Ltd.) and the correct timing have been the key factors contributing to our success. Moreover, an in-depth knowledge of Indian handicrafts and a strong merchandising team that has sourced over 3000 products in 6 months time have helped us in scaling these heights.

What have been your greatest challenges in the course so far?

Initially, the most challenging job was to convince rural artisans that we were not going to cheat them and that we are here for the long run. We had to make them down payments before they manufactured products, even now we pay them before we procure products from them. Every time that we bring in a new rural artisan, we come across the same challenge as most of them have been conned by people who promised to sell their products, but never returned.
Other challenges that we faced were to find the right people who can work in a start-up environment and creating a robust supply chain.

How has technology helped in your regular operations? Or expansion strategies?

The entire e-commerce solution has been built from scratch. Regular operations are easy and most of the things are just one click away. Although there are a lot of calls to be made to suppliers etc, the rest of the things are fairly easy.

As far as the expansion strategy is concerned, we are satisfied that there is no limitation on the technology front; we can upload as many images and products we want, suppliers can login and give discounts on products that they want to sell fast, etc. Thus, I would say it has been easy to engage suppliers and to give them a better platform to sell.

What has been your mantra for customer satisfaction?

We, at UnWrapIndia believe in “No under promising and over delivering”. In this business, delivery is the biggest challenge. Sometimes, sourcing from the rural artisans can take more time than expected, but we make it a point to keep the customers informed at all times. Mostly we try and deliver ‘asap’. In only very rare cases, the product is no longer available. In spite of our best efforts, sometimes rural artisans sell all the stock that they have promised to us and then they either don’t manufacture them or take a long time to replenish their stock. But the communication has been the key. We are also doing a lot of Cash on delivery. We have a great refund policy, but luckily we have had no goods returned till date.

What has been your strategy to increase the customer base?

Word of mouth has been the key. We have seen many customers coming back to us with large orders after their initial order. In September last year, our average ticket size was about 350, now it’s reached 730. We now see some regular customers who order for about 7-8k every month which is quite commendable.
Apart from that, there are social networking sites like Facebook, SEO and of course our marketing backbone Adjetter.

What according to you are the top 3 skills needed to be a successful entrepreneur?

I believe that Building a team, growing a team and growing with your team are the 3 skills that one requires to be a successful entrepreneur.

For more information or if you want to check out some real cool work of art, please visit unwrapindia.com

Small businesses and the courageous individuals who head them power the country’s economy, providing employment to many and producing more than half its industrial output.

The country clearly has a lot riding on their success and it is that time once again when the government can demonstrate that it is committed to the sector. When the Union Budget is unveiled later this week for the next fiscal year, many small and medium businesses will nervously wait to see whether it will address some of their pain points when it comes to running their businesses.

Although business leaders and analysts have already weighed in with their ideas on what the budget should deliver for various sectors, I wanted to take a stab at my own wish list for the SMB sector. Here are a few things that I would place at the top of this list:

More Accessible and Less Expensive Credit
Credit is not easy to come by for small businesses. Obtaining loans from banks is a process fraught with excessive paperwork, uncertainty, and the very real possibility of rejection for any number of reasons.  Many businesses find it equally challenging to get funding from other sources, including private equity, venture capital and angel investors.
The high cost of credit also adversely impacts many businesses, increasing operating costs and squeezing margins. Opening up the credit taps for small businesses could mean more government support in the form of guarantees, a simplified loan qualification process and greater access to lower interest sources of funding.

Tax Incentives that Reward Entrepreneurship
The SME sector is one of the biggest employers in the country with a labor intensity that exceeds that of large enterprises. However, this huge employment generation potential is not completely recognized and rewarded under our present system of taxation. A large number of SMEs are unincorporated entities that lack the status and pull of a formal organization. Hence, their contribution to the economy in terms of jobs and output often falls below the radar of the government’s tax incentive structure. An overhaul of this structure to cover more of the country’s SME units will go a long way in strengthening this backbone of our economy.

Lower the Cost of Doing Business
The International Finance Corporation (IFC) which maintains figures and rankings on ‘ease of doing business’ for economies across the world, has placed India 132 on a list of 189 countries for 2012. So we clearly have work to do on this front. Among the activities that the IFC examines the difficulty levels for in coming up with these rankings are starting a business, obtaining construction permits, registering property, enforcing contracts and paying taxes.
I recently watched a revealing interview with the Managing Director of a small manufacturing operation where he lamented the valuable daily time lost in compliance with various governmental regulations. For a small business, this translates into lost productivity that directly impacts the bottom line. By eliminating red tape and bureaucratic hurdles wherever possible, the government can lay the foundation for a small business friendly environment in the country.

More and Green with Technology Upgrades
The government already has a few helpful schemes in place to enable businesses to periodically upgrade their manufacturing equipment, IT infrastructure or other business-critical technology. Ideally, however, these credits should be extended to cover more categories of business infrastructure and equipment, including green energy and other upgrades designed to drive sustainability. By encouraging the broader adoption of green technology, the government can provide momentum for its long-term goals in sustainable development.
This may be a small wish list but it addresses the big areas where small businesses feel pinched and pressured.  By taking a closer look at these and related measures, the government can send a clear message to the country’s entrepreneurs that it cares about their success.

Tablets have taken the personal gadgets world by storm in the last couple of years. With growing options like Apple iPad, Amazon Kindle Fire, Blackberry Playbook, HP Slate 500, Cisco Cius and Android-based Samsung Galaxy, lots of people have found innovative uses for tablets and as a tool to do their regular tasks on the go without being tethered to a computer. Restaurants flash their menus to patrons on tablets while hospitals are using them to access patient charts and medical records.

But do these tablets have a long term place in the business world? With their price tag, can they prove a real return on the investment? Here we look at some of the pros and cons of buying and using a tablet for business use.

Pros –

• Smaller in size, they are almost similar in dimensions to a magazine. And as they are lighter, tablets are portable and can be easily carried around in a handbag or a briefcase.
• They’re great tools for accessing presentations, word documents, surfing the web, checking e-mail on the go, updating Facebook, tweeting, video chatting, playing games, reading digital magazines and books, and enjoying movies and music.
• These devices turn on instantly and tend to last longer on a fully charged battery. The battery life advantage also extends to standby time. If not used for days, they will still have considerable battery left.
• Versatility is another quality that tablets demonstrate with availability of more compatible business-friendly apps. There’s the iWork suite for the iPad, as well as Documents to Go and Quickoffice. Similar options are available for Android-based tablets. Furthermore, storage capacity is not much of an issue anymore thanks to cloud-based services such as Dropbox and iCloud.

Cons –

• They may have a durable body, but the touch screen display can be prone to damage if not handled with utmost care.
• For long-hour usage, working on a tablet is inconvenient with typing on the scrunched keyboard. Working long hours on spreadsheets, word documents and presentations on touch screen of a tablet may be cumbersome.
• USB support is almost nonexistent on most tablets. There is only 1 USB port to charge or sync to laptop/computer. There are no other USB ports or additional ports in case you need to plug into your pen drive, camera or printer. You cannot read DVDs or CDs either.
• Multitasking is a feature that most slates fail to provide. It’s difficult to switch between applications and see all of your open apps at once.
• Though tablets have access to lots of apps, they cannot compete with the volume of productivity programs and business software that are installed on laptops. There is no MS Office app yet available, hence full functional apps such as word processing and spreadsheets are major pain points for a tablet.
• Tablets are not very useful without Internet – Same is the case with laptops or desktops. There will always be a need for Wi-Fi or 3G internet connectivity if you plan to check email on the go and download presentations, reports and other documents. This can again increase the amount you spend on the device.

The above debate shows that tablets have a lot going for them but they do come with quite a few strings attached to them. Analyse your business needs before you think of investing in a tablet.

 
**************************************************************************************************

You have ‘uploaded’ your business on various social-media sites but have not been able to co-relate your social-media footsteps with your brand’s online presence? It’s time for you to put a few strategies into place to measure your social-media presence and also earn big bucks. What is the purpose of having thousands of fans or followers if they do not translate into customers,
right?

But first and before you begin your quest, make a list of your goals.

• What is it that you want to accomplish through your social media efforts?
• Is it to sell more products?
• Establish yourself as a leader or
• Just steer more traffic to your website?

Once you are through with this, gather all the data you need to meet these goals before you get bogged down by the various gears used to secure your data. For example: for Facebook, the areas of focus are comments, likes and posts. You know you are being heard when your post or page gets ‘likes’. You engage a consumer when you get a ‘comment’ on your post, a.k.a initiation of two way communication. Similarly, for Twitter, the more followers you get, the more is your influence.

Less is more!

Wondering how? Now that you know what you have to track, you need to find the right tools to measure them. Don’t go for the classy ones available in the market. Minimalism is the answer. Try Google Alerts and iGoogle. They are free of charge, hassle-free and will e-mail you the moment someone keys in your keywords; example – the name of your organization. You can set as many alerts as you want to; blogs, web posts, social media sites, you name them, you get them.

Think Smart!

If your Facebook page has more than 30 fans, you can use Facebook Insights to gauge your presence. On one hand, Hoot Suite & Tweet Deck provide the same metrics for Twitter, on the other, FeedBurner will analyse your blogs. Don’t forget to try Nutshell Mail, Rowfeeder, Kurrently and Addict-o-matic tools for your social media sites.

Paid services:

Well, if you are can afford to budget and pay for social media instruments, then there are several services than you can avail. How about you try PostRank, Radian 6 or JittterJam? But, when choosing a paid service, keep the following questions in mind. Are all the social media sites like, Facebook, Google Plus and Twitter integrated? Are all your RSS feeds, websites and other documents measured? Are the ‘tags’ visible when you search your content? Once these questions have been answered, you are set to play.

Be smart, not over confident!

Nobody is better acquainted with your business than yourself. Take advice, but don’t follow all. Don’t fall into the trap that others lay for you when measuring your goals.
So, now that you know how you can measure your social media presence, what are you waiting for? Head out and make a mark on the web world!

*********************

Dealing with an irate customer can be one of the most trying times for you and your business. However, if handled properly, such incidents can be an eye-opening and help you in your overall customer management skills.

Remember, there’s no business that never has an unhappy customer. And it’s the business which works the hardest at satisfying irate customers, that generally does the best overall.

Here are a few easy-to-implement solutions that can help you deal with an angry customer in an efficient and reasonable manner.

Understand the problem

• Don’t take it personally if a customer shouts at you. It is seen that most angry customers aren’t angry with you personally, but rather with the situation in which they currently find themselves.
• Let the customer tell you the entire story while you listen attentively without interrupting him.
• Remember, controlling your emotions and having patience with your customers will go a long way in winning over hostile customers.
• Stay calm and empathize with the customer. Argument will only make a difficult situation worse.

Create solutions

• Acknowledge the customer’s problems in a polite manner and ask them what they are displeased with.
• Take ownership of the problem and apologize.
• Get the entire facts from all sides and all parties concerned as quickly and efficiently as possible.
• Be positive in approach. Try and express your point of view assertively without offending your customer’s feelings.
• Tell your customer what you can do for him. If your suggestion doesn’t appeal to the customer, ask him what he would like you to do and see if you can accommodate him.

Fix the problem

• Once you and the customer agree on the solution to the problem, strive to solve it quickly and effectively, because that makes customers feel you are being responsive to them.
• Meanwhile, if you feel it is warranted and if possible, consider offering a freebie or a future discount on another product to show good faith. That way, the client not only feels like you dealt with the problem, but will most likely stay a loyal customer.
• Keep your promises. If you said you would call and check on something, do it, and do it in the time frame you promised.
• Correct the issue for the customer and also look for long term corrective measures.
• Reassure the customer that you will willingly assist in the event that another different problem should occur again.

Follow-up

• Once the problem has been fixed, call the customer with progress reports. Ask if they are satisfied with the solution. If they are not, see if there is anything that can be done to increase their satisfaction.
• Thank the customer for bringing the problem to your attention as it will allow you to better meet the needs of your other customers.

THE REAL SOLUTION

The best way to deal with irate customers is to avoid giving them reason to become angry in the first place. Satisfying customers’ needs through your products and/or services, training your staff well and keeping your promises to the customers will always ensure that such a situation never arises.

Your Brand is your identity. Branding helps make people aware of your existence, as well as the existence of your products and/or services. An effective brand not only sets you apart from the pack but also drives the customers’ expectations in such a way that your target audience sees your product as the only answer to a specific need.

Importance of branding your business:

• Name Recognition

A company brand increases public recognition of your core business or product. It builds trust and credibility. Customers are willing to pay more for branded products than for unbranded products.

• Value Addition

It says something is different in your company. If you want to extend your product range, customers’ perception of the new product will be enhanced by your existing brand. This helps your business to foray into newer market sectors without changing your core brand identity. Remember, if you’ve got a brand, you are not selling a commodity but a lifestyle to your customers.

• Efficient Marketing

Creating a unique brand makes the product stand out and creates an impression in the minds of consumers. This impression motivates customers to choose a particular product or service from thousand other competing products. Thus, branding helps boost sales.

Easy-to-implement and Cost Effective Ways of Branding the Business:

• Know Your Audience

Successful branding begins with the customer. The first thing to do is figuring out who your target audience is and how to accurately target them. Understanding their needs, values and lifestyles will help you to come up with a brand that will appeal to the customers and make an instant connection with the product they are purchasing and a sense of trust with the company selling it. So before launching into an ad campaign, do a little research.

• Brand Differentiation

It pays to decide early on what separates your brand from the rest. If every other brand is the same and highlights the same qualities, the customers are likely to not connect with the business at all. Here are some collaterals and image materials to help you bolster your company’s brand: web stationery, jingle, logo, tagline, cards, brochures, newsletters, mascot, spokesperson and so forth.

• Advertisement

This is the best way to introduce your brand to the world as advertising helps customers to feel connected to the product before actually purchasing it. There are many platforms of media advertizing available that you can use to lift the business brand even higher. Whether it would be through Yellow pages, local listing sites, newspaper inserts, cable TV etc., advertizing can get things started for businesses, both big and small.

• Commitment

Introducing a brand is easy. Keeping it consistent and maintaining its integrity is the difficult part. Businesses must ensure that they build the same attributes and characteristics into all areas of their operations. This will help in recognition and customer loyalty.

The entire concept behind branding is to give your business the push it needs to start operating as a successfully commercial enterprise. Branding is relevant not only to the established high-end businesses but also small start-ups. It can work for everyone, provided it is used smartly and carefully.

Raising start-up capital is a herculean task that most entrepreneurs find daunting. In spite of a promising business plan, proper due diligence and good negotiating skills topped with the determination to make your business a reality, the question that looms large on every individual wanting to take the entrepreneurial plunge is where to start the capital search. The need for a viable source for your business’s cash needs doesn’t end with the seed or start-up capital alone, but you would need financing for expansion and to take your company to the next level.

Here are a few options for financing your start-up.

Bootstrapping

Digging into your personal savings makes up for a considerable chunk of the start-up funds. Next comes the credit cards. Plastic money is not only more accessible but it’s also quicker to raise easy money through it. You will be surprised to know that Google founders financed their efforts through the use of credit cards. The only drawback is that it’s easy to fall into its lure and rack up a huge debt thus damaging your credit rating.

Friends and Family

In the initial stages, most start-ups are funded by family, friends and colleagues. Usually, such type of financing is informal as you don’t need to formulate a business concept beforehand. But it is rare that the level of available funding from these sources is sufficient.

Bank Loans

For most start-ups, banks are usually reticent in shelling out money. But if you have an excellent personal credit, have a good track record and wouldn’t mind pledging your home/tangible asset as a collateral, getting a traditional bank loan might work out for you.

Small Business Grants

Government lends grants to support technology and innovation by start-ups. There are also a limited number of government grants for women and minority-owned businesses. You can approach the local Chamber of Commerce for grants for your small business start-ups.

Partners

Taking a partner on board might cramp your style but on the other hand, apart from securing funding the partner might be a boon for the business if he is an “idea” person or a hands-on manager.

Angel Investors

Investors, usually high net-worth individuals, lend support to innovative small scale and locally driven entrepreneurships. Moreover, with their wide experience and knowledge, they also mentor new entrepreneurs by guiding them in their fledgling businesses. It’s an in-between option for those who have exhausted their ‘friends and family” funding option and are yet not ready to approach VCs.

Some More…

Crowd Funding is one of the emerging concepts in the world of microfinance and is going to affect the Indian economy soon. It is the amount raised through people who collaborate and network; they may be friends, family, colleagues or strangers on a social networking site.

Then there are far-fetched options like Venture Capital but it rarely works as VCs usually don’t invest in start-ups or even early-stage companies. There are also a lot of stipulations to abide by that makes it not so lucrative. Still, if your company already has a good performance record and promising returns, it’s worth a try.

Picking the right fundraising source is a significant part of the business strategy. Hence, take time to understand what type of company you are building and what type of funding will suit you the best.

************************

Budget control is top priority for most small business startups, but there are a few assets organizations should not skimp on!

Every startup has its own list of financial priorities when setting shop. Budgets will most likely be set aside for some mandatory things like patents, legal services, office space, etc. A lot of startups tighten their purse strings when it comes to investing in a few physical assets for their business, but these can be the very things that help save money in the long run. We have rounded-up seven physical assets that give you long term benefit and better returns on investment- so do not skimp on the following:

Coffee Machine / Electric Kettle

While this is definitely not your top priority, investing in a coffee machine and/or an electric kettle can save you oodles of money and productivity hours. You will not have to externally source a caterer to provide your office beverages. This can save you money on every cup. The other benefits include increased productivity, since employees do not have to take extended coffee breaks. This apart, people will have the flexibility to fix their cuppa whenever they want or need it.

Backup System

IT is definitely one of the “do not skimp” areas but one of the most important aspects that is often neglected is a sturdy backup system. A backup system ensures business continuity in case there are systems and other technical issues. This again leads to increased productivity and less down time.

Sustainable Energy

The initial investment on sustainable technology and energy can be more than you accounted for, but you will be glad that you turned green right at the star. You can count on conservative figures for your utility bills with green energy in your office. Use laptops with longer battery lives, switch to energy saving lamps, air conditions and fans.

Whiteboard

Never underestimate the power of the humble whiteboard! It is great for internal meetings, great to save on printing costs and it also works well when you need to explain a concept while making audio-visual presentations. Putting plans, schedules, targets, etc. on a whiteboard is a good way to ensure that you have a constant reminder in front of you to make you stay on track and check your progress.

Fire Extinguishers

Many startups tend to push aside few basic health and safety policies. While many health and safety measures are both expensive and extensive to implement, investing in a fire extinguisher should be seen as a basic necessity. It is a simple tool that helps you put out a fire right at the start and control any further damage to life and property. Other safety measures include keeping an eye on the quality of wiring in your office and also the provision of ventilation.

Good Internet

In spite of the technological advancements in information and communications, sometimes one can go wrong in choosing the right internet connection for their business. Shop around for the best corporate deals before zeroing in on the connection. Consider factors like speed, peak hour policies of the company, after sales services offered etc. Check for user reviews to get a realistic image of your chosen internet service provider.

Accounting Software

Save yourself time and get smarter about your company financials by investing in good accounting software, which keeps things transparent during audits. While choosing the software; go through user reviews, choose an easy to navigate user interface, flexible report generation, etc.

Taxation is one of the most important aspects that you need to give considerable time to when starting your own business. Not only is it is legally binding on all business entities, but also, non-adherence to its requirements invoke penalty and revoking of licenses or permits.

Numerous types of taxes come under the ambit of ‘taxation’ in India. However, for the ease of understanding, we will discuss ‘Service Tax’ in greater detail in this article.

What is Service Tax?

Service Tax, a part of the Central Excise Tax in India and a type of indirect tax, is levied on services provided in India. It extends to the whole of India excepting Jammu and Kashmir.

Which services come under the ambit of Service Tax?

Service Tax was first imposed in India in July 1994 for three services. Over the years, it has spread over many more services and now has 125 services in its ambit.

Who has to pay Service Tax?

The liability to pay service tax has been placed on the ‘service provider’

Is there any turnover limit?

The turnover limit, i.e., the aggregate value of taxable service for threshold based exemption is, currently, Rs. 10 lakh in a year.

However, a person availing of this exemption is required to register with the department on achieving a turnover of Rs 9 lakh in a financial year in respect of all taxable services provided by him

What is the rate of Service Tax?

The rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount.

How to Register for Service Tax number?

You have to make an application to the concerned Superintendent of Central Excise in Form ST-1 for registration of your service tax number within 30 days of starting your business. Note the procedure for filing the application:

1. Fill the Form ST-1 in duplicate. (Form ST-1 is available at website www.cbec.gov.in.

2. Enclose:
a. Photocopy of your PAN card,
b. Proof of address of your business to be registered, and
c. Copy of Memorandum of Association or Partnership Deed of the business.

3. Remember, that copy of your PAN card is necessary as a PAN based code (Service Tax Code) is allotted to every business entity.

4. Submit the application form along with the enclosures to the Central Excise office under whose jurisdiction your business falls

5. A single registration is sufficient even when an assessee is providing more than one taxable services. However, he has to mention all the services being provided by him in the application for registration and the field office shall make suitable entries/endorsements in the registration certificate.

When is Service Tax paid?

• In case you have a sole-proprietorship or a partnership firm, service tax is to be paid on a quarterly basis. The due date for payment of service tax is the 5th of the month immediately following the respective quarter (in case of e-payment, by 6th of the month immediately following the respective quarter). For this purpose, quarters are: April to June, July to September, October to December and January to March. However, payment for the last quarter i.e. January to March is required to be made by 31st of March itself.

• In case of any other category of service provider other than proprietorship or partnership, service tax is to be paid on a monthly basis, by the 5th of the following month (in case of e-payment, by 6th of the month immediately following the respective month). However, payment for the month of March is required to be made by 31st of March itself.

Hope this article helps you as you plan to start your own business venture. We would like to get your comments and feedback on it.

Chirag Yadav - Chaipatty

Chaipatty is Bangalore’s very own tea café which started from Indiranagar (also doubling up as their head-quarters) and spread to Koramangala and Whitefield. Asked about the curious name, Chirag Yadav, the head behind this venture readily offered the connotation — ‘Chai’, denoting tea-leaves and ‘patty’, made famous by Mumbai’s Chowpatty, a place brimming with people!!!

The café at Indiranagar has the shack-like roadside ambience with floor seating, very rustic with lots of colours and with Chirag donning the host’s role. It offers the best tea, maggi, pakodas and other snacks. It’s a mini art store with jewellery & home decor items put for sale. And the place also metamorphoses into activity workshops for Salsa, pottery, bar tending, photography, film-making, dessert-making, etc.

We caught up with Chirag, an ‘ex’-Electronics engineer with specialization in embedded systems who left the corporate humdrum 5 years ago in pursuit of those perfect Salsa steps and subsequently ventured into art-curating, blogging, cooking. He finally turned all of these pursuits into a business venture, drawing heavily from his marketing skills!!!

How did you stumble into this venture?

Chaipatty is a 2-year old brand that was conceptualised as a unique activity hub, catering to an exclusive but fun loving audience. Over the couple of years, it changed into a very creative and one of its kind Tea Cafés (or Teafes as we call it). It has now grown to become a one-stop solution for your tea and tea-time snack cravings, a home décor/funky jewellery/ art boutique and as before a very exclusive activity centre for weekend hobby indulgences.

What has been the key to your business’ssuccess?

The key reasons for our success have been numerous:

•A very passionate drive to excel and make a mark in our customer’s heart and minds by constantly rubbing our energies in each experience that they have at our Teafes.
•Recognising the potential of word-of-mouth marketing rather than blatant advertorial efforts.
•Being personally on top of issues rather than delegating them to the staff or non-owners.
•Respond to everything that’s been said or written about us in a manner that we come across as a protective yet humble owner of the idea. We seem appreciative of feedback but do not take vague criticism lying down.
•Being old school for customer connect rather than relying on technology or resource.

Chaipatty Teafe

With tea available in almost every nook and corner of Indian cities and towns (and also villages) for as little as rupees two or ten, what have been your major challenges in making your tea-café successful?

Oh, the challenges have been many – from having to work through the corrupt bureaucracy who needed to validate the idea, to having to live with the ever-present haggling tendencies of an usual Indian customer who feels ‘Chai’ is something that flows out of taps at homes and not expensive espresso machines so why buy it. We have also painfully replicated the same street-smart attitude of hospitality across the board.

Have you benefitted from the use of any specific technology for your regular operations?

Nope. Just a credit-card machine that helps with plastic cash.

Any plans for expansion beyond Bangalore?

Conservative as we are, we have a ‘Keep it rare’ approach.Nonetheless, we plan to have close to 20-30 outlets in India and at least one international outlet starting this year every year. Also since we are self-funded, we are not over ambitious.

What has been your strategy for Customer Satisfaction?

Talk to them and not send your bots to script out an experience to them. Add humour, wit and at times sarcasm to show that you are not a run-of-the-mill brand. Respond to their feedback. Keep the surprise and the charm element, but also present it yourself and not through jazzy methods. Believe in brand retention first through experience and then through visible tangible product or giveaways.

What have you been doing to increase your customer base?

Spread the word yourself and have an army of ambassadors who are not spoilt by freebies but by the belief of liking the hard work and efforts put in by you in making their experience at Chaipatty that much better. Value mentions and write-ups of all sorts and just indulge in more chain-reaction formations of good and important news related to your brand.

So what are the top skills needed to be a successful entrepreneur according to you?

Attitude. If possible, incessant narcissism. Risk-taking ability with constant re-evaluating/introspection capability. And, an infectious never-say-die drive to excel.

Website: www.chaipatty.com

Closer interactions with colleagues, smaller offices and frequent client facing situations make etiquettes crucial for small businesses.

While business and work etiquettes are important for any organization, the need for them is heightened in small businesses. Smaller office spaces mean that you work more closely with your colleagues than you would at a larger organization. A lot of small businesses interact with clients in-person, rather than through emails or teleconferences. Under these circumstances one needs to be acutely aware of their etiquette and personal grooming. This will help create a better impression for your enterprise and will also facilitate a more conducive work environment.

Here are some dos and don’ts of work place etiquettes.

Casual not shabby

Many small businesses are more relaxed about what their employees wear to work. They tend to move away from conventional formal looks and opt for smart casuals. Remember that casuals do not mean shabby. Make an effort to wear clothes that complement each other. Wear your clothes neatly washed and pressed. Match your belt and shoes, while keeping them both in good condition.

Personal hygiene

For many, personal hygiene is a given but you would still come across colleagues who neither keep themselves nor their immediate work environment clean. This includes bad breath, body odour, smelly sock, dirty desks etc. Have an honest discussion with any colleague about how his/her lack of hygiene is affecting the work environment. Make sure to not sound offensive during your discussion.

Timelines

Be it one’s punctuality to work or making sure client deliverables are met on time; it is important that deadlines are met. Respecting other people’s time is an important business etiquette that directly translates into better work ethic.

Mobile mania

It is not just mobile phones anymore, smart phones have invaded the offices. Smart phones are great for multitasking and saving time, but they are also great at offending people. Staring down at your phone while speaking to colleagues, constantly checking it, not putting it on silent and leaving it buzzing on the desk are some acts that can annoy colleagues and disturb the flow of work.

Speaking loudly

There is no excuse for this habit anywhere but it is especially detrimental for small businesses. Speaking loudly can easily disturb other people, it can make the speaker come across as rude or even uncouth. Make a conscious attempt to monitor your tone and decibel level while communicating in-person or over the phone.

Listen

Most of us love speaking about ourselves and like listening to our own voices, but constantly interrupting another person while they are making a point is rude. The more you listen to your client or colleague, the better your insights about your business. The art of listening is an etiquette that can give an edge by helping you accumulate relevant business information.

Culturally sensitive

Being culturally sensitive is vital for organizations of any size. Especially in a culturally rich and diverse country like India, one needs to make an effort to sound politically correct and be respectful of any cultural differences at the work place.

Ban slang

“Btw, we gonna meet l8r rite?” might sound fine when you are messaging your friend to confirm plans but it does not work when you want to confirm a meeting with a client. Make sure to ban slang and SMS lingo from all your business communications- both internal and external. This will ensure that any communication sounds professional and will also make employees more aware about any grammatical errors.

Top-down approach

The best way to ensure that business etiquettes are being followed at your organization is to adopt a top-down approach. The business operators/ owners and the top management need to lead by example, for the rest of the enterprise to be aware of the right conduct at work.

Often neglected, but absolutely crucial – your office space can set the tone of your small business work culture, right from the start

Gone are the days when barely done up offices would suffice to start a business. If you want people to take your organization seriously, you have to make the right impression at the very beginning. One of the best ways to do so is through your office.

While a few may consider the décor and layout of their office space as mere super ficialities, these factors can influence how you work, how your business is viewed and also how it will develop in time. The location, layout and infrastructure of your office space can help reduce overheads as you go along. But with all the other details to think about while you setup a small business, the look of your office might be the last thing on your mind. Here’s a handy list of things to consider while creating your office space.

Selecting your look

Depending on the kind of business that you start, you will have to think about the overall look of your office. Will it be a formal space with a traditional layout, or if you are a creative business, you might want to think of a casual layout. For a formal look, choose furniture with conventional angels and colours. If you are creative, you can play around with shapes and colours.

Green Zone

Creating a sustainable office area, with an environmentally conscious design is vital. Though initially you might have to invest more on sustainable infrastructural elements, this will benefit you in the longer run. You could drastically save on recurring expenses by going green.

Colour Coding

Choose a good colour scheme in your office as colours have the power to influence people’s mood. Vibrant colours like orange, red and fuchsia can energize you and your employees. Making your conference room look lively would be a good choice too. If the line of business you are in tends to be extremely stressful, then go for some soothing shades of ivory, blues and greens.

Ergonomically Speaking

When deciding the layout, selecting the desks and chairs, think about the ergonomics of your office. Buy chairs that will not hurt your back and that will help better your posture. With the desk, make sure that they have the right height and width. Important and frequently used paraphernalia should be housed within easy reach.

Storage Solutions

When setting up a small business, you are most likely going to invest in a small or medium size office space. However, you need to shop for some innovative space saving storage ideas that fit your office. Look out for overhead shelving units, stackable boxes, compartmentalized folders, etc.

Safety First

Double check you office space to see if there’s provision for proper ventilation. Check out the fire exists and make sure to visibly place fire extinguishers. Brief your colleagues about the safety policies and keep them aware of any emergency measures to be taken.

Scope for expansion

Think long term when you invest on the office space. Does it suit you short term needs, as well as long term organizational goals for expansion? Does it have the flexibility to expand as you start to hire more employees? Can you fit in more technical equipment if you need to? These are some of the questions that can help you choose the right sized office space.

“Have today, gone tomorrow” – aptly describes the uncertainty associated with customer loyalty….

One of the biggest challenges that businesses face today is getting customers to stay loyal. Remember, your competition has similar products, services and prices. What finally gets you customers is product/service differentiation. It is as simple as that!!!

Here are a few tips that will help you in developing a competitive edge.

Be proactive

•Don’t wait for the customers to speak up. Instead take the initiative and spend some time with them.
•Try to find out how you can improve your products or serve them better by getting them to fill customer satisfaction feedback forms either on your website or when they visit your store.

Satisfy customers

 
We all know that customer satisfaction leads to customer retention.

•Focus onyour customers’ needs, alleviate their concerns and work on their suggestions.
•Exceed their expectations, give them additional services and win them over.

Know your Competition

•It’s important for business to do a competitive analysis to gather information about their competitors.
•Finding out the competitor’s strengths, weaknesses, price structure, marketing activities and supply sources will help in formulating your strategy.
•Continue to gather competitive intelligence in order to stay competitive.

Showcase your strengths

Modesty doesn’t work in business.

•Let your customers know that you are different and better than your competitors.
•If you have better products or you are cost-effective, announce it to your customers.

Be accessible

•Let your customers know that you are available for them when the need arises sometimes even outside the business hours.
•Installing a 24-hr online or telephonic help will go a long way in winning your customer’s confidence.

Good Customer Service

Good customer service is the lifeline of any business. It not only helps in retaining customers but in time also brings in new customers. The following are the aspects of a good customer service:

•Invest in Customer Relationship Management (CRM) that will help business manage customer relationships in an organized way. It helps in being productive and time-efficient.
•Train your staff to be courteous, helpful and knowledgeable. Give them enough information and power so that they can take customer friendly decisions when required.
•Listen to your customer’s complaints and act on them immediately.

Remember, loyal customers are the backbone of every business. And the key to sustained revenue is to own the asset called ‘customer loyalty’.

Venture Capital in India – a trend that has made its way to our country from the West over the last decade. It involves the providing of capital to a business venture for:

• Seed capital in order to kick-start the business ,
• Early-stage operations of a business,
• Later-stage expansion plans

The main features of venture capital funding are:

• Allocated to high-risk but high potential ventures to float and run its operations till it breaks-even
• Is a very important funding model for start-ups since they do not have access to capital markets.
• The venture capitalist usually makes and recovers the money by owning equity in the company.
• Most venture capital investors seek either an innovative business model or a novel technology to invest in.
• Focus is given to building businesses that would lead the market in both domestic and international spheres

Regulations for Venture Capital:

In India, venture capital funds can be categorized under the following sub-heads:

• Central Govt. controlled development funds by financial institutions like ICICI, IFCI, SIDBI.
• State Govt. controlled development funds by financial institutions of various states
• Public Banks promoted funds like SBI Capital Markets Ltd
• Private Organisations promoted funds like IL&FS.
• Funds by overseas players like Walden International etc

All these venture capital funds are governed by the Securities and Exchange Board of India (SEBI), which is the nodal agency for registration and regulation of both domestic and overseas venture capital funds. The following regulations control all VC funds in this country:

• SEBI (Venture Capital Funds) Regulations 1996
• SEBI (Foreign Venture Capital Investors) Regulations 2000.

Trends in India:

In India, it has been seen that venture capital investments are made into high growth sectors like:

• Technology and the knowledge-based industries (KBI sector).
• Biotech, wireless, IT, pharmaceuticals are some other growing sectors that attract venture capitalists.

Why you should tap this form of funding:

• It will give your business long-term equity finance which will provide a solid capital base for future growth.
• The venture capitalist is like your business partner, sharing both your risks and rewards.
• The venture capitalist will provide practical advice and assistance to you based on past experience with other businesses which were in similar situations.
• The venture capitalist also has a network of contacts in many areas that can add value to your business, such as in recruiting key personnel, providing contacts in markets, introductions to strategic partners, and if needed co-investments with other venture capital firms when additional rounds of financing are required.

 
**********************

With the e-commerce trend in India growing exponentially; there was never a better time for small businesses to set shop online.

India Inc. may have been slow to catch up on the advance e-commerce trends of the Western world, but it has made one grand entrance. Currently, the e-commerce industry is growing at an annual rate of 70 per cent. According to the market research firm Juxt, 30 per cent of the total number of 61 million active internet users, like to shop online.

As of 2011 the total value of this industry stood at a whooping INR 47000 crores. Analysts predict that this upward swing will continue over the next few years too. If you are a small business operator who wants to jump aboard the e-commerce bandwagon, this might just be the best time to do so. With consumers becoming more internet savvy by the day, it is sensible and also cost effective to make a foray into digital commerce. Here are some figures and facts that can help you make the right choices about e-commerce.

E-commerce Industry Growth

Source: Internet And Mobile Association of India (IAMAI)

Sector Specific Growth

According to the Internet and Mobile Association of India (IAMAI), as of 2010, the e-commerce market share comprised of five major sectors. These sectors were mostly in the business to customer domain, specializing in selling both products and services online. The five main sectors identified were:

Online Travel – 80 per cent
E-Tailing- 6.48 per cent
Financial Services- 6.31 per cent
Other Online Services- 5.09 per cent
Digital Downloads- 2.12 per cent

Buy Later Syndrome

Here’s a list of the main reasons why people hesitate from confirming the order when it comes to online shopping in India.

Lack of trust
Fulfillment issues
Shopping experience
Want to see product before buying
No need for shopping online

Getting Consumers to Proceed to Checkout

Here’s how you can address this “buy later syndrome.”

Building trust

Build Trust by creating different ways to showcase user generated content (UGC) in the form of reviews for users about the products/services. You could try and upload photos sent in by satisfied consumers, who have clicked snaps along with the product they bought from your web store.

Also increase your online presence by staying active on social media networks and digital forums. The more your audience see you, the more they are likely to trust the familiarity.

Good after sales service

When it comes to fulfilment issues, small businesses can tackle it by focusing on good after sales services. Once consumers hit the “Buy Now” button, start by mailing them a confirmation and setting realistic expectations. Provide buyers the facility to track their orders and you track the order statuses too. Once the product is delivered, mail buyers a feedback form and address any issues right away.

Create an experience

Agreed, you may not have a coffee shop attached to your online store but you can think of innovative ways to create an experience for your customer. For instance, instead of having long product descriptions, why not have them in video formats? You could also try and tie up with other online sellers, so as to give your customer a way to find other products or services that complement your own.

WYSWIG

What you see, is what you get (WYSWIG), is an important principle when it comes to the online world. To build customer confidence in your product/service, you can upload photos clicked from many angles, use videos, right accurate descriptions, etc. Again, UGC helps when it comes to customers who like to see the product before buying.

Creating a need

Get your customers to visit your virtual store by tailoring some exclusive online deals and discounts that they might not necessarily find in-store. This can be discounts, online sales or even tie-ups that present your customers with gift coupons. You could also run a free delivery campaign, since customers would not have to invest more than the cost of the actual product.

With an online store, a small business does not have to worry about rent, electricity and other overheads. All you need to do is get a web developer to create a good online store. Make sure your technical team monitors your online store, your brand’s online presence and also address any anomalies. If do not already have a virtual store, now might be the only time to do so, since India’s e-commerce bandwagon is moving ahead at full speed and paving the way for mobile commerce (m-commerce)!

Nowadays it’s common for an office to be buzzing with the sounds of people working on a laptop, desktop or even a tablet pc. With most correspondence and reports being sent through email and online storage we are constantly connected and downloading and uploading data like never before. This brings with it the threat of data being stolen or even corrupted by different agents like viruses, malware and spyware. Here are a few ways you can make your small business systems more secure and safe.

1.) Antivirus:

If you have the money then you should go and buy an antivirus solution for all the systems that will be connected to the work network in your business. This will allow your entire network to remain secure from viruses that can be easily transferred through email and file downloads. You might want to look at solutions from McAfee, Norton Antivirus, Avast and others. If you are looking at providing security to your network while keeping costs low you can try out Microsoft Security Essentials which is available for free for business with up to ten systems.

2.) Firewall:

If your work involves sensitive data on your side or data for your client it is good to take an extra step and install a firewall that can help defend against hackers. A firewall provides a barrier to stop unauthorized access to a system at your workplace. The only issue with a software firewall is that you will need to have it installed on all systems at the workplace and give permissions to different programs to access the net at least once. There are various option available some which have free options too. Here are some that we suggest you take a look at – ZoneAlarm, Comodo firewall, Outpost firewall etc.

3.) Browser:

The browser you use will be the software that interacts with the World Wide Web. Make sure that you update the explorer that comes inbuilt in your operating system to provide security for your computers. Since your major source of problems will come through the internet make sure you choose a safe way to interact with it. You may also want to try out Mozilla Firefox, Google Chrome or Opera if you want a different browser with varying features.

4.) External threats:

Do you use a pen drive or an external drive to transfer files to and from your computer? Well that can be another way that viruses and harmful files can make their way onto your system. Make sure to scan your pen drives with your antivirus program before you copy any files or open them.

These are a few simple tips that can make your workspace more secure for yourself and your clients. It may require some time on your part to set up the systems but it is worth it with the time you will save on security based headaches later on. Also make sure to upgrade your software on a regular basis to stay safe and secure always.

Here’s a round-up of some of the recent SMEs friendly initiatives that have been backed by the government.

It is crucial for SMEs to capitalize on governmental policies and initiatives that support their goals. While the Government of India has consistently acknowledged the fact the Micro, Small and Medium Businesses are the prime contributors to the nation’s growth, SMEs often fail to keep track and avail of government initiatives.

SM Jamkhandi, the Director of Micro, Small and Medium Development Institute (MSME-DI), Bangalore, expressed his concerns about the lack of awareness of SME-friendly Government schemes and initiatives in the sector. He stated that, “although the government was offering a slew of schemes and sops for SMEs, a majority didn’t utilize them due to lack of awareness and education about the schemes.” Jamkhandi also went on to add that the government has set the ball rolling by instructing all banks to focus more on SMEs.

Here are some of the recent Government initiatives targeted at SMEs’ growth and development.

SME verticals at banks

The Reserve Bank wants to establish dedicated verticals at banks to help small and medium businesses to deal with financial matters. Banks that have been working with SMEs will start to provide consulting services on finance, cash-flow management, taxation, and related areas for a fee. SMEs can then turn to banks for more than just loans and associated services.

Credit guarantee

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), founded in 2000, is a collateral-free credit scheme. This scheme supports both existing and start-up SMEs. To support the rapid expansion of SMEs in India, there are now talks of increasing the size and scale of the guarantee scheme by setting higher credit limits. Combined with defined mandates for banks to implement the scheme, the initiative will improve SME access to funds.

Launch of SME Exchange

The Bombay Stock Exchange (BSE) is set to launch the Small and Medium Enterprise (SME) Exchange by the end of March 2012. The Securities and Exchange Board of India (SEBI), the capital market regulator, has already given its clearance to the dedicated stock exchange, aimed at giving SMEs access to market financing. .The SME Exchange is slated to initially target a list of around 500 organizations.

National Award Scheme

This is a great way for SME owners to get recognized and up their organization’s rating. The ministry of Micro, Small and Medium Enterprises (MSME) annually presents National Awards to deserving entrepreneurs and enterprises under this scheme. In order to be eligible for this award, one has to have a permanent registration as an MSME. MSMEs that apply should have been in continuous operation for a minimum of four years. If you think your business meets these criteria and has successfully accomplished its vision, consider entering the MSME National Award Scheme.

Tools Room and Training Centres

The Central Government has initiated a scheme worth Rs.15 crores to setup Mini Tools Rooms and Training Centres to help out SMEs. This scheme will be routed through individual state governments. Jigs, cutting tools, gauges, fixture, and similar equipment will be produced under this scheme. The scheme also seeks to provide training in toll manufacturing and tool design for SMEs that specialise in skilled work, design and engineering. This apart, the scheme helps with generic business consultation and documentation.

‘What’s the size of my market?’ is a question that figures at the top of every entrepreneur’s reality check when it comes to a business idea. Few people step into a venture without trying to gauge what share of the pie they can expect to have. Getting a better handle on target market size is also a useful exercise for businesses that are already in operation. They can evaluate how they are doing in the light of this figure and make sure their growth is in line with potential demand.

There are different ways to approach this analysis. The level of detail used could range from intelligent guesstimating to complex number crunching. The points below provide a useful framework for businesses looking to define the shape and size of their target base.

Where are your customers?

The geographical proximity of your target customer is a key factor, especially for businesses with convenience-oriented services. For example, a dry cleaning service could define its target market to be people who live within a 10 km radius of its location. This would be based on the assumption that people who live farther away are unlikely to drive too far in the quest for a reliable remover of shirt stains.

Who are your customers?

You can get a more streamlined view of the market you are catering to by coming up with a demographic profile of your target customer. The dry cleaning service might choose to target people who live in certain communities and apartment complexes of its operating zone. Income, type of profession, household structure, life stage…these are all factors that impact lifestyle and consequently the types of services an individual or family will seek. Generating that profile of your customer also allows you to better position your product or service.

What are customers currently spending?

Another concrete approach to pinning down your target market figure (unless you are operating in a new or niche category) is to look at actual sales of products and services similar to yours and then estimate what percentage of that you might be in a position to grab. The dry cleaning service could explore a straightforward survey to find out the average spend per target household on laundry related services. Then, assuming that it knows approximately how many such households are there in its geography, it is easy to estimate the size of the market in rupee terms. Since this analysis is based on actual spending patterns and not on projections, it is a little more grounded than other ways of getting to the number.

Market sizing is the first and fundamental part of a viability test for a new business. Beyond that, there are other factors that will impact how well a business does. These include current socioeconomic conditions, the competitive landscape and of course, the ability of the business to penetrate the market. However, once a business clearly defines the limits and makeup of its target market, it can feel more confident in planting its flag in that space. For an established business, this analysis will yield insights that can be used to reshape strategy, rethink marketing, or make some other critical change to grow its share of the total pie.

(Note: The 2nd edition of Small Business Marketing for Dummies by Barbara Findlay Schenck was used as a reference source for this article.)

Vaishali Dubey - StudioRED

Weddings come and go but their images live on forever. All the more reason why your wedding album should be a happy keep sake you turn to time and again, not something you bury in a dark closet. This belief is what powers the work of StudioRED, an artistic photography studio that specializes in weddings.

Led by founder Vaishali Dubey, StudioRED’s team of artistic wedding photographers, designers and techies is on a mission to completely change the look of wedding photography in India.

If Dubey and her team have their way, there are a few things that will soon be phased out of wedding albums. These include pasted smiles, tacky settings and canned shots of the couple flanked by a large group of relatives. In its place, the team aims to create a look that is ‘classy, modern and super cool’.

The way Dubey describes it, having a camera pointed in your direction doesn’t mean you have to drop everything else in order to smile at it. “The best moments in a wedding”, she says, “are captured naturally when everybody is at ease – it’s really that simple. Smiles, tears, hugs, stolen glances and joyful ambience; all the cherished moments that make your wedding memorable and fun – we make sure that we don’t miss any of it.”

What was the inspiration behind StudioRED – the business and the name?

Our name StudioRED was inspired by the boutique feel of a studio and the dominant color in Indian weddings, RED. It also jived with our youthful attitude of being bold and unconventional.

The idea for the business stemmed from my experience at my own wedding. It was a dream wedding in many ways, but I felt let down by the poor photography and videography at the time. I almost wished that I could get married again – just for the photos! By starting StudioRED, I set out to do the next best thing – to give today’s brides the experience that I was looking for.

Can you describe your target segment?

StudioRED is meant for the Facebook generation and our products and services are designed keeping that in mind. The target group is made up of young couples who want to get away from the look of traditional wedding albums.

What sets your products and services apart?

We offer an end-to-end experience which includes journalistic and art photography/videography, customized designer albums to suit every taste, modern video montages, online user interface with facebook integration and a dedicated customer support team. We have a network all across India, as well as in the US and UK.

StudioRED photographers are handpicked skilled professionals determined to wow their clients. While some of them are winners of several photography awards, others have displayed their work at international exhibitions.

We have provided the perfect photographic finish to many weddings, both within and outside India. Thailand, Khajuraho, Udaipur, Bali, New York and Dubai are just a few of these places.

Wedding Moment

What are the main factors in your success?

The biggest factor in our success is listening to our clients and customizing our services to their needs. Our photographers spend time understanding the requirements of couples and getting to know the dynamics of their families.

Secondly, we focus on capturing emotions, not poses. Journalistic and candid photography is about shooting great moments without being intrusive. To achieve that, StudioRED photographers lie down, hide behind flowers, climb balconies (safely!) and do whatever it takes to wow clients without being in their face all the time.

One of the key factors driving our success is that we have an integrated team of photographers, videographers, designers, video editors and operations professionals who have an aligned vision. The current photography services market is highly fragmented and consequently disorganized.

Can you describe your growth strategy and the barriers in the way?

Our strategy is simple – continue to exceed our clients’ expectations. Let our work speak for itself and we will grow. From a target demographic standpoint, we are focused on customers who value and are willing to pay for quality and art. Couples who are about to get married sometimes find it challenging to “sell” the StudioRED concept to their parents who usually foot the bill in Indian weddings. While this is a challenge, we are focused on brand building to overcome these generational hurdles.

Website: www.studiored.in

Profit & Loss A/C or Balance Sheet? Though both are separate financial reports, they are inter-linked and only collectively reflect a business’s health. Hence, it is important to understand their similarities and their difference.

A Balance Sheet bearing both assets and liabilities is a reflection of past performance as well as a measure of a business’s future capability. On the other hand, a profit and loss statement (P&L), showing earnings, expenses and net profit, throws light on the current state of affairs and indicates where a business is going in the future.

Read together, these two financial statements offer invaluable insights into a business’s performance and potential.

Profit & loss A/C or Income Statement

• It provides information on how a business performed over its accounting period (normally, a financial year).
• It provides detailed view of all income and expenditure of that accounting period, such that comparisons can be made with past performance or budgeted expectations

Balance Sheet

• It shows the extent of your business’s ownership of assets, liability and equity at a given point in time.
• It shows how much cash your business has on hand and also identifies the most valuable assets of the company.
• It helps you to keep a constant eye on the quantum of your debts, and helps you to decide when and how to service them
• Your Balance Sheet will be referred to by all your stakeholders (banks, financiers) in order to gauge your business’s strength and potential

There are several notional elements in a Profit & Loss a/c and the big factor which is not taken into account is movements in working capital. Anyone who has run a business knows that it is one thing to sell an item or a service at a price that produces a profit, but unless customers pay up on time that profit is not secure and is, at worst, an illusion. This simple fact needs to be borne in mind when you look at your P&L a/c. It is, therefore, imperative that you read your Balance Sheet along with the P&L a/c. If you do this, you will know how soon your customers will pay you and therefore give you the power to assess your cash inflows and outflows.

Finally, from an operations point of view, P&L is more important, but from a strategy point of view, Balance Sheet is more valuable. A review of the P&L alone may give the appearance that the company is performing well, while a standalone review of the Balance Sheet can highlight the fact that the company may be in financial trouble.

If you look at one, without reviewing the other, you may get an incorrect financial snapshot. Only by reviewing both the P&L and the Balance Sheet can you truly assess the financial performance and potential of your business.

*****************

The age old mantra that the “Customer is King” seems to have lost its sheen in the current business market with many Indian companies not emphasizing enough on Customer Service.

Lack of awareness on consumer protection laws and the indifference of the companies towards losing a few customers have taken the level of customer service to a new low. What good is Customer service if it does not serve customers?

Here are a few instances that show how big companies risk their goodwill and alienate clientele for want of a better customer service. We also outline the acceptable remedial actions that can help these companies save face and bad name, rebuild trust and re-connect with their customers.

Lack of Empathy by a Telecom Service-Provider

Instances abound of new chargeable value-added services getting activated on customer’s cell-phones without his knowledge/permission. On complaining, most often, the customer has to pay the disputed bill in full believing that the reversal will happen with the next billing. However, in many cases, despite many calls and assurances the reversal never happens.

Remedial Action: Instead of causing much frustration and distress to the customer, the customer service team can win back the customer’s trust by reversing the charge in the first instance of complaint. Also, it needs to have a policy of taking prior permission before adding additional services on to a number. It never pays to take a customer for granted.

Lack of Commitment by a Broadband Provider

A big name in the broadband sector frequently stops the service in the name of hardware upgrade without prior intimation to the customers. The customer comes to know only when he calls up the helpline. Moreover, the service never resumes at the promised time.

Remedial Action: The customer service should inform the customer about any service disruption well in advance so that the customer is not inconvenienced. And they should always adhere to the time limit.

No value of Customer’s time – A premier Fleet Service

A colleague was waiting for his taxi that he booked the previous night for a pick-up at 5 am for his 6:30 flight. At 5:10, when he called the radio taxi helpdesk he was informed in an unapologetic tone that his booking had been cancelled due to cab shortage. The premium fleet service has twice cancelled his booking confirmation without advance notice.

Remedial Action: The customer service should have provided an alternative conveyance after due apologies. But first, the company should avoid going overboard with their bookings. Remember the famous saying “cut your coat according to your cloth”.

Lack of Respect for Customer – An international Flier

Again, during last year’s monsoons, a Newark-Paris-Mumbai flight was re-routed to Delhi as Mumbai airport runways were waterlogged due to a heavy downpour. At the IGI Airport, the passengers were made to stay for 24 hours without hotel accommodation. Moreover, the help desk was unmanned the entire day. Finally, an irate passenger called up a prominent news channel complaining about the apathy of the airline staff and created a ruckus where after the airline personnel came forward to pacify him.

Remedial Action: The customer service team should have apologized emphatically for their indifferent attitude and given a reasonable discount to the fliers on their airline airfare for their next travel in order to win their confidence back.

Companies focusing on meeting sales targets tend to forget that a sale in fact is the beginning of a company-customer relationship. A satisfied customer ensures loyalty leading to fortifying customer relations. This relationship in the long run is the key to continued business success. It is about time that companies defaulting on customer service get their act together!!!

V Day gives a chance for small businesses to try out some unconventional marketing strategies to capture their customers and become a memorable brand.

Maybe unconventional marketing strategies can be used in conjunction with many other special days and festivals, but Valentine’s Day is something that can make marketing fun. This day captures emotions but is also characterized by thrill, especially in India! Many businesses have successfully capitalized on these factors associated with the day and have launched some great Valentine’s Day marketing ideas.

Gift shop Archie’s or most restaurants are some good examples of how to make the best of this special day. Here’s a round-up of a few things to keep in mind while launching your Valentine’s Day marketing campaign, especially if you are in the business-to-customer (B2C) sector.

Best time for an online campaign

With tons of people looking online for V Day gift ideas, getaways, restaurant deals, etc., this is the right time to think of an online campaign. Start with optimizing the content on your website, to highlight any V Day deals that you are offering. If you do not yet have an official website, see if you can get your business featured in blogs. Or use your own blog for publicity, if you have one. Use social media platforms to get noticed too.

Great deal for customers

If you are a small business in the service sector, Valentine’s Day deals are a guaranteed sell out. You can market some great V Day ideas that span across dinner deals, gifting ideas, or conducting free do-it-yourself V Day gift workshops at your venue for customers. This is sure to make your customers feel cherished and while helping you build some brand equity.

Strategic partnerships

Apart from an online campaign another cost effective marketing strategy for small businesses will be to establish mutually beneficial partnerships for Valentine’s Day. Take a look at companies that specialise in making complimentary gifts. Choose your most valued customers and make them feel valued by gifting them something from your organization. Let them know that you are thinking of them during V Day!

Target men

In spite of women being easily attracted to V Day promotions, men remain the biggest spenders on Valentine’s Day gifts and promotions. So specifically target your marketing initiatives at men. Time your promotional emailers to your male customers, so that they have a weekend to explore your deals. Also release more marketing material around the 12th- 14th of February- this way you will not miss out the last minute shoppers!

And don’t forget the singles

Valentine’s Day may not have quite the same significance for people who are single and unattached but that doesn’t mean you can’t offer them something most people want – a chance to love and pamper themselves. Hand them out gifts or discount coupons. Team up with a local spa or travel agent to tailor the best deal to target customers who are single.

Being a genius photographer doesn’t necessarily guarantee a profitable business in photography.To think about photography from a business perspective, you not only need talent and artistic vision but also a competitive edge and business know-how.

A business plan with clear strategies and smart tactics will help in growing your bottom line. Here’s how:

Determine your target market

The following are the most elementary questions that need to be answered to identify your potential clients and establish a foundation for your strategy.

Types of Photography: Photography is a broad art. It has various categories like photo-journalism, documentary, action, fashion, art, portraiture, advertising, travel or forensic photography. Try to answer “What type of photography do I find most interesting?” You may stick to one photography specialty that you are passionate about or simply choose to focus your photography business in one of the various categories at which you excel.

Products and Services: The question is “What are you selling?” Photography services or photographs, art or memories? Keep in mind that photography is a skilled base service. The end product, the photographs, forms only a fraction of the costs while a major share of the costs is for the creative talent of the photographer.

Competitive Market Analysis: The field of photography is wide and competitive. Research the marketplace and look for those segments that are under-served.

Get your Equipment

As the cost of photography equipment is quite high, when buying the necessary equipment, make a judicious selection based on priorities, budget, space availability and kind of photography that you do. Purchase high quality core equipment. For equipment that will be used infrequently, buy at lower cost or consider rental sources.In addition, identify the office equipment that you will need such as computer, telephone, fax, scanner, office furniture, etc. Do not forget to take a sufficient insurance cover on your equipment.

Finalize Suppliers

For a long term business goal, start developing relationships with your film, processing and camera equipment suppliers. If you are not planning to develop your photos yourself, select a reliable photo lab based upon the quality of work, their ability to meet promised deadlines, and the ability to get a complex order correct.

Price your Services

Considerable thought has to be given to pricing strategy. Setting too high a price might throw you out of the market while setting a lower price might make it difficult for you to meet overheads. A good reference point would be professional organizations for your specialized branch of photography or books that quote ballpark prices.

• For advertising photography, include basic daily fee to cover the overheads, your creative fee plus a reasonable profit. Your overheads are all the out-of-pocket expenses associated with the shoot like film, props and the services of hair stylists, makeup artists and models.

• If an assignment involves travelling, then you should add travel and food expenses.

• For retail photography, you are expected to quote an all-inclusive price for a product. For example, a wedding assignment, you can set a flat fee per hour of coverage; for portfolio, you can fix a price per package that depends on a set number and print size.

• Stock photographs are priced on a per photograph basis.

Start Networking

Marketing is an essential aspect of any business. Hence in addition to a portfolio, your own website and advertisement in yellow pages make sure you:

• Look into professional organizations in your area, join photography groups and participate in local exhibitions and fairs where you meet a lot of potential customers.

• Offer to teach a photography workshop in your community. Remember word of mouth marketing is not only free but also reaches the target customers within no time.

• Collaborate with local art galleries and museums where you can distribute or display your work.

A photography business involves an investment of lot of time and money, hence make sure that you’ve carefully researched and thought about all the practical aspects that you’ll need to handle and the challenges that you’ll need to face.

Marketing by mail is critical in developing leads for small businesses. Here’s how you can make your marketing campaign a hit.

Your direct marketing efforts – through email or traditional mail – are like billboard ads delivered in the hands of the customer. They are your way to reach out to current and potential customers in order to show how you can add value. The only difference is that it’s more cost effective and your audience can’t just drive past your efforts.

A mailer is something that your target customer is going to read at his or her convenience. The challenge is that, not only do you have to get this customer to open or view the mail but you only have a few quick seconds to make your pitch before they move on to something else.

Here are six foolproof ideas to consider when creating a mailer:

‘Something has to dominate’

Award Winning Copywriter Luke Sullivan says,” whether it’s a big headline, a large visual, or a single word floating in white space, somebody’s got to be the boss.” This draws the attention of the audience to a central element, rather than letting their thoughts scatter by looking at a crowed marketing brochure.

KISS and tell

Keep it Simple Silly (KISS) is the way to go. No one wants to read a lot of text or look at a confusing layout. Most people don’t have the time or the patience to read cluttered messages and are more likely to respond to simplicity in content.

Be conversational

Write as you would speak to a customer. Unless the rest of your communication style is formal, do not use this tone in a direct mailer. Remember you are not sharing a rehearsed speech but are looking to interact with your audience and prod them into action.

Make it stand out

Don’t be afraid to get creative. Develop your own brand identity with the use of consistent design styles, colors, language and more. Avoid unnecessary gimmicks as it could make you stand out for all the wrong reasons.

Get them to open it

Ask questions, include incentives and use clever wording to engage your audience. Use these tactics on the subject line or the envelope to tempt people to open and read further.If your budget allows it, send some teasers ahead of the mailer to pique their interest.

Details matter

Don’t ever forget to include relevant details on dates, places, or prices. Think of ways to creatively integrate these with the rest of the content in order to maintain the flow of your mailer.