In the last few years we have seen thousands of people becoming victims of companies, which intentionally or unintentionally scam the hopefuls.

Many direct-selling companies with viable business models and good intentions had to shut shop because of Scamsters promising easy money to the masses. This, by promising to invest their money in different business they specialize in and therefore promising higher returns than regulated entities.

Despite no guidelines being published by the government, ethical direct-selling companies with viable business models have managed to keep their heads above water by making sure that the consumer/distributor gets a fair deal.

In the meantime, a handful of Scamsters have made full use of the commonly-prevalent ignorance and desperation of our countrymen to raise money quickly. This will continue till we get to see some initiative from our government.

With our multidimensional experience as Consumers, Distributors, Part of the Managements and currently as Management Consultants to direct-selling companies (using the Non MLM/ MLM compensation plan to promote products), we have drafted, in SIMPLE language, our recommendations for a fair opportunity to all stakeholders (in the order- Consumers, Distributors, Companies and Government Bodies).

This is the Phase 1 of our endeavor to make direct selling a fair opportunity for all people engaged.

• These guidelines will assist direct sellers in operating legally in India.
• If you are thinking of joining a company,
•  starting a company
• Or are operating a direct seller without this knowledge, read these very carefully.

(NOTE: These guidelines were shared with Central Government officials in August 2012. Though we have uploaded the Updated version)

-       Team Strategy India

Recommended guide lines for companies using the MLM / Non MLM compensation plans 

Index: 

1. Definitions of commonly used terms 

2. Company registration 

3. Products/Services 

4. Compensation plan 

5. Rights of the distributor 

6. Data 

7. Website 

8. Virtual currency or Electronic money 

9. Starter kit 

10. Transactions

11. Note 

1. Definitions/explanations of commonly used terms :

• Multilevel marketing compensation plan – a formula designed to generate (and pay) commission to more than one level of individuals under various conditions.

                                                                              Or

• Paying bonuses/commissions to individuals on the volume of sales of products/services achieved by the people they recruit/introduce and the people they recruit and so forth down to multiple levels.

• Enroll – register/signup formally as a participant or a member or a distributor including any names mentioned under the definition of a distributor.

• Distributor – any Indian citizen, above the age of 18years on the date of enrollment or a legal entity entitled to do business in India with eligibility to enter into a business contract. E.g. proprietorship / partnership /private limited – who/which enroll/s with the direct selling company to earn money by selling products or services and by helping others, earn money by doing the same.
• Also known as associates, independent business owners, consultants, networkers, members, advisors, independent business associates, independent representatives, etc.

• Direct Selling Company – any company registered in India that utilizes the services of self-employed individuals to promote products/services using a multi-level or non multilevel marketing compensation plan to build its business. This will also include all business models which require or allow distributors to enroll other distributors. For brevity sake will be referred to as “Company” in the rest of the document.

2. Company Registration: 

1. The Company shall be registered under the Companies Act 1956 anywhere in India.

2. During the time of registration, the companies need to mention that they are going to promote products/services and incentivize people using the multilevel / non multilevel marketing compensation plan.(in other words the objects of MOA shall specify about the direct selling/nature of business)

3. Applicable laws – As per the requirement and the norms , the Company shall comply all applicable statutory formalities of central government like Income tax, Service tax, Food safety and standards Act , etc. and also respective state governments like VAT, CST, Trade license, License under Food safety and standards Act, Shops and establishments Act and etc.

4. Minimum Authorized capital for a company should be INR 1, 00, 00,000 (One Crore Indian rupees only).

5. The company should submit the list of products it wishes to promote and the compensation plan during registration.

3. Products / Services:

1. Price – the company should give a notice of at least 60 days to all its active distributors before altering the MRP of the product.

2. Satisfaction guarantee – a satisfaction guarantee/refund policy of 30 days from invoicing of the product/service. This should be applicable if the product/service is not used more than 25% in case of consumable products/services. Handling charges of 10% would be charged to the consumer returning the product to the company. (Satisfaction Guarantee means a term in a sales or services contract in which the seller defers to the buyer the sole and unilateral discretion as to whether or not the goods or services tendered are acceptable. In the event the price is not paid, no cause of action exists unless the buyer acting in good faith is satisfied, no matter how good the goods or services are in terms of quality)

3. On non delivery of the products/services to the distributor/consumer within 20 days of billing (after payment by the distributor/consumer), the company on request by the distributor/consumer on email or post will have to refund the entire bill amount to the consumer/distributor by cheque/demand draft/pay order within 7 days of the request by the consumer/distributor.

4. Product Claims – all the claims made by the company for the products should be supported by evidence in form of certifications from competent authorities.

5. The laws applicable on the category of products in India would apply (Sale of goods Act. 1930)

6. Negative list : (the products listed below should not be promoted/sold by the companies to the consumers or to the distributors) :

• Deposits/Investments- in /for / in form of – Stocks, Debentures, Donations, Currency , Preferential shares, Forex Trading, Plantations, Infrastructure, Resorts, Trading in commodities, Birds (Poultry, Emu, etc), Animals (Rabbit, Goats, Cows, Buffaloes, etc), Media  and Real Estate.
• Life insurance
• Discount coupons/Vouchers
• Time Shares
• Bid coupons
• E- learning Packages including e-books and e-zines / e-magazines
• Online education
• Websites/ Web space
• Get paid to give surveys, watch advertisements, receive SMS and receive emails.

4. Compensation Plan: 

1. The commissions/incentives should be generated and paid to individual/s only on the successful retail of product/s or a service/s.

2. The distributor should have the opportunity to earn by retailing of products even though he may not have introduced any distributors in his network/team.

3. Income claims if made by the distributors, same should be supported by proper and detailed explanation.

4. Single id policy – no individual/company should be allowed to have more than one position in a particular company.

5. There should be no charge for enrollment in the opportunity.

6. A distributor if not satisfied with the opportunity may resign from the company within 30 days of enrollment and get the money back if he purchased a starter kit while enrolment (if it contains all the literature and contents in the salable condition as were given by the company).

7. No commissions or bonuses should be given /offered on sales of starter kits or enrollments.

8. Payment of commission – the payment of commission to a distributor should be done without fail and delay as per the commitments made in the compensation plan.

9. The distributor should be paid the entire amount of commission for which he/she is entitled, subject to deduction of applicable taxes as per the law being in force.

10. The company should promote only one compensation plan.

11. All presentations (online and offline) and calculations need to be done in Indian rupees only.

12. A distributor should not be compelled to buy products during enrollment or within a particular tenure.

13. Equal opportunity – the company should not encourage and offer multiple ids to individuals, the company should not encourage distributors to offer power legs or additional incentives to prospects or other distributors, the company should not offer additional incentives other than mentioned in the compensation plan.

5.  Rights of the distributor : 

1. Complaint resolution – the company should have an online complaint resolution process and all complaints should be resolved in 21 days of being received.

2. The person who enrolls in the opportunity will have the full right to know the compensation plan and product details before joining the company.

3. Taxation – TDS to be filled correctly against the PAN number on time as per the rules of the income tax.

4. A distributor may engage in multiple opportunities at the same time as long as he does not disturb the business of any company.

5. Each distributor should be Issued ID cards with Name , Address of the individual , contact number , ID number,  address and contact number of the company (for confirming the identity of the individual )

6. Data ( distributors details along with records of the transactions):

1. Company would be responsible to conduct a Due Diligence (KYC) for all its distributors and maintain the data online.

2. The Due diligence should include document/s issued by the government with Photograph, Signature proof along with the proof of address and the PAN.

3. Server for maintaining data should be located in India.

4. Readiness to make available the Backup /Synchronization of data to the investigating agency within 120 hours of receiving a request.

5. Server to send and receive mails of the company personnel should be located in India.

6. The company would maintain the log reports (with date and time) of all IPs (in India and abroad) accessing the online software (admin and distributor back office) in India.

7. Website (of the company) should maintain the following information with no requirement of a password to view the following – 

1. Should have details in 2 languages (Minimum) – Hindi and English

2. Registration certificate

3. Details of board of directors

4. Details of top management

5. Details of offices including head quarters and branches – with identification on company owned and franchised.

6. Schedule of planned and conducted meetings in India (if organized by the company).

7. Detailed compensation plan with illustrations.

8. Code of conduct.

9. Details of the entire Product range promoted by the company with the MRP.

10. Terms and conditions for enrollment.

11. Contact numbers of the offices.

12. Email ids of the office bearers. 

8.  Virtual currency or Electronic money: (also known as e-currency, e-money, electronic cash, electronic currency, e-vouchers, digital money, digital cash, virtual cash, digital currency, cyber currency or any other name) is money that is only exchanged electronically. 

1. If generated by the company for all or some of the distributors from India should be always equal to or lesser than the amount present in the company’s bank account/s in India.

2. Should only be generated against payment of commission on sales of products/services if requested by the distributor.

3. The total virtual currency generated by the company should be shown as liability in the P&L sheet for India.

4. Maximum amount of virtual currency in an individual distributor account should not be more than 30,000 (equivalent to INR 30,000) at any given time.

5. In case of demand by the distributor, the company shall without deducting any charges (other than taxes) pay the distributor by cheque, demand draft or bank transfer within 15 working days.

9. Starter kit :

1. Mandatory for all distributors to avoid miscommunication and over commitments.

2. Should be priced below INR 1500 inclusive of applicable taxes.

3. The kit should be available with an option of 2 languages – Hindi and English.

4. Contents of the starter kits to include Profile of the directors, Top management, Contact details – Phone numbers, Email ids and Addresses of the branches, Product details, Compensation plan in detail and illustrations, Enrollment forms with terms and conditions, Code of conduct and the Official website address.

5. Cooling off period – for the return of starter kit should be 30 days from billing date (with all contents intact and in salable condition).

10.  Transactions :

1. Payment of commissions and bonuses to the distributors should be via banks using valid instruments like cheques /demand drafts/pay orders/bank transfers only.

2. The company should receive the payments against sales of products/services in its bank account in India and make payments to distributors in India via its bank accounts in India.

11. Note:

1. Companies following these guidelines shall not fall under the provisions of Prize chits and money circulation scheme (banning) Act. 1978 more particularly does not fall within the meaning as defined in section 2 (c) and 2 (e) of the said Act.

2. Central Govt. Guide Lines shall be applicable in all states and UTs of India same shall prevail on present guide lines if any in force.

3. These guidelines are not applicable for companies qualified as Non Banking financial corporations as per the norms of the Reserve Bank of India.

These guidelines are not applicable for entities registered with Ministry of Corporate affairs as Chit fund companies.

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This contract between Nokia and Verizon is for next 2 years, and till that time the products probably be out in all the countries where the company operates.

 Image Credit – ReadWrite

Btw; lets have a look at the Nokia Lumia 928 and it’s Features step by step below in this article followed by a promo video too so stay hooked and notice that what is packed in this budget phone that runs on windows platform.

Design of the Nokia Lumia 928

This device is lighter in weight, it is actually of 162 grams while the previous version was of 185 grams and the screen is extended till the edge not like they have made a curve in 920 and hence this would be going to be a good design who likes the flat screen at all the end like mine.

• Screen Size – In this package customer will get 4.5 inch screen that is AMOLED Display technology with the Gorilla glasses.

Camera in Lumia 928

The new nokia lumia 928 is featured with the 8.7MP PureView camera and their is also a secondary camera installed that is in front with the picture resolution of 1280X960 pixels. The main camera has optical image stabilization (OIS) and a Carl Zeiss lens.

Processor and Memory

It is featured with the Qualcomm Snapdragon processor clocked with 1.5 Ghz which is the same as Nokia Lumia 920 and the device has 1GB RAM and 32GB mass memory storage space along with the 7GB free Skydrive storage space.

Note* - The device does not support the MicroSD card.

Battery

According to the claim by Nokia the manufacturer of Nokia Lumia 928 the device has maximum standby time of 606 hours on 2G network and maximum talktime of 11.8 hours on the same. And on the 3G network it has maximum standby time of 541 hours and talktime of 16.2 hours.

The company said that the device could play the music uninterrupted for 80 hours and that’s a good news for the music lovers who want a budget phone from any brand they could rely upon.

And the device Nokia Lumia 928 also supports wireless charging.

First Video of Nokia Lumia 928

Please don’t leave before writing your mind about this new launch from the Nokia.

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• Permission from their family :- Most of the ladies may be under pressure of their family for not doing these businesses. Now you have to clear this issue by convincing that family for the good changes have to be occur in their life by this business involvement by dictating the future of business and their position at that time. Means you have to buid up some relation there and make it possible to let them to think on the business statistics graphically and physically by inviting them in the business meets and seminars/workshops.
• Their outstation group :- The lady member have the group of new members sponsored by her but she is getting it difficult to follow her team at that far place without visiting them, so here you have to take her responsibility for visiting her group and let them inform and educate with the latest updates in the business.
• Be informed with their thinking :- Organize the meets and seminars not far from the center of the city and far from their reach or where they don’t like to attend that. Always be in their touch and try to find their thinking towards their current situation in business they will not inform you may be because of hesitation or some other fact (in case of newbies).

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Lack of sleep has also been shown to cause skin disorders in both animals and humans. Another less obvious problem that is in part aggravated by sleep deprivation is the onset of breasts and pot-bellies in middle-aged men. This is because men produce their growth hormone almost exclusively when they sleep. When a man is sleep-deprived therefore, his body will not be producing enough of the growth hormone. Scientists believe that this is a factor in turning muscle into flab. For men to avoid blobbing out in middle age, good sleep is a must.

Sleeping for less than your personal requirement over prolonged periods will undoubtedly detract from your looks. Unfortunately, sleeping for hours on end will not enhance your physical attributes, which is a pity!

The beauty sleep supercharge. If you have a big celebration or a wedding coming up, you will want to be at your best, so a good night’s sleep is vital. Follow these steps on the day before any big event:

- Do not drink any tea, coffee or alcohol, and avoid sugar and salt.
- Have a light meal early in the evening. Avoid meat or anything hard to digest.
- Drink lots of water during the morning and afternoon.
- Exercise during the day as much as possible. In the evening, wind down with some gentle exercise, like yoga.
- Avoid watching TV and minimize computer use, certainly in the evening.
- Before bed, have a warm bath with lavender oil. Add a sprinkle of lavender to your pillow.
- Go to bed early.
- When you get into bed, run through the following day’s events in your mind and visualize everything in a very positive light. See yourself on top form and feeling really good in yourself. Use all of your senses to make this real.
- Don’t think about the following day too much, other than when you use the above technique. Thinking about it on a conscious level can create unwanted pressure, whereas visualizing the day in a 20-minute self-hypnosis session will set you up to be at your very best.

If after your visualization you still need help getting to sleep, listen to the Sleep Well audio session.

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It applies even if you are a distributor or retailer of the physical products who deals in masses and have to deal with the safe and cheap space for keeping the products that company delivers on your demand.

What would be covered here in this article ?

• What to Store
• Kinds of Storage Services Available
• Cost to Store
• Safety

#1. What to Store

It’s a risky part be careful in storing the products specially the one that can expire or create a mess like medicines, vegetables, non durable eatables items and many more like these because then the storage space provider would not be liable for any of the losses that happens due to your carelessness and ignorance to the life of those products.

Yes you should get a business storage service for the products like gadgets, textiles, licensed alcoholic item because I heard that they gets better over time yeah a great and important one I was about to miss that your office space also comes under storage space services so you can always ask these firms if you need one.

#2. Kinds of Storage Services Available

This can be numerous industry to industry but I would like to introduce the main ones as the large storage space provider firms deals with :-

1. Pallet Storage - Where you pays only for the space within your products are settled.
2. Warehouse Space - Where you do store the bulk product order and pays for the entire area.
3. Archiving - It comes the storage type when you have to store the secure documents, record archive storage.
4. Office Space - Extremely flexible services are out there where you don’t have to pay more than Rs.1000 a day and that’s even without any lease agreement.
5. Multi Site - You deals at a point with the firm and your products are going to be in secure hands at multiple locations.
6. Online Businesses – When you have to sell online like you have a ebay store and your space demand is increasing day by day due to massive sales so the firm would not ask for any paper work again but service charges would increase too simultaneously.

#3. Cost to Store

Actually it differs on your requirement, and locations. If you are storing some outside of the city location the cost be lower than the locations inside the city and every country have different norms about these services and that’s why the taxes differs too.

But it would never surpass your profit !

#4. Safety

Don’t worry you always can have insurance on your storage and yeah you have to be aware about some damages and losses in the way if dealing in bulk and with a big storage firm. But they never disappoints you and you could always find them to store your order for you if you don’t have your personal arrangements till the time of the delivery.

Your Take

I think it was a good one where I discussed a lot without taking much of your time, please say what do you think ? You got something for your business or not, if you believes that I can do something for helping in your business issues then please use my contact page and leave your question and I would come up with an article like this.

P.S. Don’t forget to subscribe this blog and share it in your friends over there at FB & twitter.

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3. Branded or Local Products

What could be B/W Sides of Entrepreneurship ?

Well I tried my best to reveal all general issues in the below infographic report but it would be anything and yeah different for different entrepreneurs so please don’t expect to find all the possible positive and negative sides of entrepreneurship anywhere on any xyz report.

What’s discussed here :-

• Fail and Success Rate
• Investment and Outcomes
• Barriers of Entrepreneurship
• After Success Life

It’s better to have a look within and share among your friends, followers to help them understand this phenomena and to invite them discuss this topic further.

Pros and Cons of Entrepreneurship

Embed this infographic on your site – Use Below Code

<a href=’http://www.digmlm.com/pros-cons-entrepreneurship’><img src=’http://www.digmlm.com/wp-content/uploads/2013/04/pros-and-cons-of-entrepreneurship.png’> alt=’Pros and Cons of Entrepreneurship’></a>

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Who Could Use 0845 Numbers ?

You might be thinking that these numbers would be too costly and your small business could not afford it, so wait and let me tell you one thing that you are totally wrong because these numbers comes in budget of every small or even startup businesses, keep reading and below I’ll describe the cost to you and your customers in detail.

So now there is no doubt that you could use this special service number for your business but before discussing about the pricing and it’s easy installation or the best service provider in the country let’s discuss about the benefits of using 0845 numbers.

What are the Business Benefits of 0845 Numbers ?

Believe me 0845 numbers are wonder when it comes to finding a solution for your business to be in contact with your customers or to provide the telephonic services because it’s damn cheap and full of features to help you manage your customers requests and feedback on the ease.

Some free advantages of using 0845 numbers are …

#1. Hosted Online Management

Login to web based software and you could easily access the call routing facility to manage the customers call and diverting them to the right customer support executive at that specific time period for any specific issue and providing the help to the customers in no time.

#2. Divert on Busy or No Answer

Be responsive to your customers and automatically divert them to a busy or no answer message or send them to an alternate number or even allow them to send the voice mail on the company email that could be processed later in free time.

#3. Divert to UK Landline Number

Yes you can add these numbers with your 01/02 numbers too and then you will get your customers automatically diverted to your UK landline number so the important deals would never go missed due to unavailability of your executives.

#4. Divert to UK Mobile Phone

Now it’s mobile too and important your clients could reach you on your UK 07 mobile phone numbers too.

#5. Time of Day Routing

All the divert options could be managed according to the time of office hours and after office hours, means when you are at office all the call would go land in office and when you are out of the office you could be working via UK mobile phone or the landline numbers.

#6. Three Time Zone

Routing options could be managed according to 3 different time zones, could you imagine how effective this option is ? Yes it is because you could automate the customers and clients who belongs to different countries or say the different time zones and they could reach you easily because you know how to be in their contact even if you are at office and even if you are out of office.

#7. Voicemail to Email

Don’t you say wow because these special numbers are treating you same as the smartphones treats and yeah your customers could send you the voicemails too if they missed you during the office hours or your were busy with other prospects.

#8. Control the Rings Between the Diverts

You could also decide that how many rings have to be ringed before they would landed at another number, and that could be anywhere in between 5 to 60 seconds.

#9. Disaster Recovery

If it happens that during a call any phone or mobile phone goes down for unknown reasons then you could divert the caller on other number in the real time and that way you would not loose the business.

There are various other features available but they are paid and we are leaving them for your own research if you really need them anytime after installation of this special service.

Yes I remember that you are looking for cost

So here it is the pricing of having 0845 numbers …

Note* – All prices are excluding VAT.

And your customers calling from a UK landline would pay 2 pence/minute, while a mobile phone user who would give you a call could be charged upto 41 pence/minute.

If you are interested then get a connection today and give your business a local feel among your customers, if you are not interested in this special service please comment below and let us know what are the reasons you are leaving an opportunity on the table and creating a deadly communication gap between you and your customers in the mean time.

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Paying the bills

With unemployment in the UK now over the 2.5m mark, the employment market is in a poor state and has been for some time. With job vacancies thin on the ground and a growing pool of candidates to choose from, it also seems that employers are taking more time than they did before the downturn of 2008 to conduct job interviews.

If out of work, 10 weeks is a long time to wait before getting back into the world of employment. During that time, hours each day are spent on looking for roles, while appointments with recruitment agencies and at the Job center can also take up time. The whole process of finding a new job can be demoralizing if nothing comes of it.

How to get a job quickly

In the current climate, it’s going to be tricky to find a new role straight away. Fortunately, there are a few methods which you could use to give yourself a boost when trying to find a job. Some of the best are:

• Cast your search net as wide as possible Use recruiters’ websites as well as ordinary job search sites and you’ll boost your chances. Newspapers and industry publications are good too.

• Be prepared to wait to hear after a job application. Impatience won’t get you anywhere, according to Samantha McGawley from Online Resourcing:
  “We find that candidates are fully prepared for the CV and covering letter side of an application but it is the following stages where there seem to be issues. Candidates need to be prepared for lengthier process, not necessarily because employers want more for the money, but because the marketplace is so much more competitive.”

• Try and create an online presence. A nice CV on its own is not enough, so you have to go all out in order to try and get a job. A LinkedIn profile and pages on other social media sites can help, as can a personal website or blog.

• Create a friendly yet business-like image. This will also boost your chances of getting a job, while it will prepare you for interviews if they come.

People applying for higher level jobs can expect to wait even longer between changing roles.

Matt Comley, a recruitment expert at Director Appointment who specialise in sales director jobs, explains why:

“There is more to consider with higher level positions, with decisions often taking time from both the employer side and the employee alike. As a job seeker for this type of position candidates should ensure they are prepared for a substantial wait between roles as companies are even more cautious to hire the perfect individual.”

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If you are living in a country like India then the problem goes out of control because the paperwork and slow response of the labor court or related department sucks and it becomes very difficult when corruption comes in action and the barrier arises in your way of registering the new company. Here no one will be happy to guide you so you have to do your homework before registering the company and do whatever it takes, like finding the company name that exists, proper office space before applying for the registration, decision like you will hold the proprietary or go with the partner.

Then visit to the certified CA (chartered accountant) for further information and his role in registering your company name on papers. Anyway let’s care for the 7 bad decisions that you have to avoid during starting a business specially if it’s your first time.

#1. Starting a Business without Vision

Look you are thinking about starting a business not applying to the job simply, yes now you are about to start a business that could give you the opportunity to work with your own staff means you will be the employer this time and that’s alone a very big responsibility to perform. Clearly it’s not like playing a game with your life and others too, you should have proper vision before starting working on an idea either that is new and unique either you are about to go with the traditional business ideas with a little bit valuable changes within.

You should have a well defined business plan including the start-up, management and moving towards achieving the primary goals and then the main goal for leveraging the industry, leaving your competitors behind.

#2. Starting a Business without Research

It happens many time when we see new business ideas comes into the market we thinks to give a try but it would never be a good idea to starting a business blindly. You should always be aware about your target market and that requires a massive and deep market research specially under the sub headings as described below.

• Market Research : Market research includes 4p of marketing that is Product, Price, Place and Promotion as described below.

1. Product : Do research in products available into the market and try to go unique for getting customer’s attention and value for your company efforts, you should always keep one thing in mind that your product or services have to solve the customer’s problem and believe me it is the only reason people will buy from you and help you to grow in any type of competition. Product goes viral due to the design, packaging and easy to use so keep these points in your mind and then only proceed to the next point that is price.
2. Price : After creating a wonderful product you have to decide the selling price or say the maximum retail price (MRP) and that is possible only when you are able to calculate that what is the manufacturing cost exactly. And manufacturing cost includes the electricity bill, employee’s salary, transportation, storage etc.
3. Place : Also known as the storage and then distribution for availing the manufactured products nearby the customer’s place. It can be the small retailer’s shop, malls, or the company showroom.
   
4. Promotion : When the company product is available into the stores you need to promote it, in the beginning it will be promoted automatically by the word of mouth but to accelerate the sells and profit you should try with other channels of advertisement like having a website, having social network accounts, sending press releases, news paper advertisement, magazine advertisement, flyers, billboards, TV commercials etc.

#3. Starting a Business depending Upon Others

I have personally observed that my father started two different small business depending upon his younger brothers and later on his friends and employees but all failed until he himself entered so it’s really a wise decision to not starting a business until and unless you have personal involvement till the company grows and then you can manage even by managing the seniors as appointed by you.

So be aware of appointing -

• Relatives or
• Trusted Employees

Without your supervision.

#4. Starting a Business without Capital Backup

Every business encounters ups and downs during the start-up or say the initial phase and that could be financial too so be prepared and have some capital backup in your bank account or by contacting banker or even by contacting the investors.

It’s necessary to be prepared from the beginning because at the exact time when you will need to have an extra investment you can’t ask anyone to invest at once so go wise and that too before the bad time comes near your business idea.

#5. Starting a Business without Legal Registration

Legal registration protects you from the several infractions during spreading your business into the market because the competitors can claim that you are not legal to leverage the market and then you and your business may go shutdown on the court orders and you will see some extra time frame and money wastage to deal with the situation.

In the number of countries you can become a valid party to claim the government support in the form of subsidies or the tax benefits only when you have company registration and you are the legally working and paying all the taxes defined, you can become the member of various unions to get support from other business owners during any dispute occurs.

So the registration should be a must performing step before dealing in actual business, non-profit organizations have better future with registration because after 5 year of successful working they gets government schemes and international donations.

#6. Starting an Illegal Business due to Lack of Information

Many times the young entrepreneurs do hurry before starting a business without a legal registrations and deals with the customers and clients in the illegal business like the gambling, smuggling, drug supply, betting on sports or something similar added as an illegal business in your country business law due to lack of information.

There are hundreds of businesses as illegal business and they attracts a lot of peoples due to the high return on investment but keep it all in mind that there is a very high risk of loosing life and money in no time.

#7. Starting a Business without Good Contacts & Necessary Resources

Starting a business is not as easy as it looks, we know about an entrepreneur who started with Rs.10,000 and converts that into Rs.10,000 crores in 10 years, we know about the entrepreneur who was a petrol filling staff at a petrol pump build a business empire and became billionaire and now he have several oil and gas companies around the global market but we are not aware about the procedure how they did it.

They have had two basic thing that is required to build a successful business :-

1. Good Contacts : Successful business persons always have had good business connections and that’s the reason they become that much big even they were working as an employee who can’t buy the food for his family for 3 times in day regularly for a month without borrowing money from his friends or relatives. 
2. Necessary Resources : Every business needs various resources like land, labor, capital and entrepreneur. Your contacts will be very beneficial in finding and meeting the needs and they would love to do so as an investor so be in good contacts and offer the investment opportunity with a valid business plan.

I hope you got it all and avoid the above discussed bad decisions during starting a new business.

Conclusion

There was only a single thought in mind to help you avoid the deadly business mistakes to become a successful business owner if you decides to become one and I know that to some extent I’m successful in my mission and remaining portion would also be covered if you will decide to contribute in the comments below by sharing your real life business building experiences.

P.S. Be supportive in nature and share this article among your social networking friends too.

Related posts:

1. 6 Mistakes to Avoid when Starting a New Business
2. 3 Questions to Ask Yourself Before Starting a Business
3. What it Takes to Build a Business that Attracts Customers

To prove that my words are getting stronger day by day, I keeps noticing the changes in Smartphone market and here in this article I would to share an infographic report that is built featuring top 13 business applications for busy entrepreneurs.

It is originally created and promoted by Desk and you should keep browsing till the end who knows these tools will help you more than your expectations to help you grow your business in no time.

Top Business Applications for Busy Entrepreneurs

Click to Enlarge Image

Running a Small Business with Mobile Apps — Brought To You By Desk.com

Related posts:

1. Android and iPhone Apps that the Techie Business Man Needs
2. 7 Entrepreneurs Who Will Inspire You and Your Business
3. 9 iPhone Apps to Become More Productive at Work