27-May-2021 |MSME ,Entrepreneur
Are you one of those ambitious and enthusiastic persons eager to launch a business startup or an MSME unit? Is your head brimming with new business ideas? If you thought that your lack of business experience might throw a monkey wrench into your plans, you needn’t worry too much. Well, these five actions can make you successful in a new business sans any prior experience.
Do The Home Work
Always remember that the nitty gritty of starting a new business venture requires meticulous planning, commitment and hard work. One has to put his nose to the grindstone to get the business off the ground.
It has been seen that a majority of startups falls through the cracks for multiple reasons, and ineffective planning and unrealistic business goals are among these. So, one should be extremely careful about the venture one is planning to start.
It becomes important that one navigates the choppy waters of a new business with confidence. First, do the planning, and come up with a realistic business plan that you feel you can achieve given your limited resources and inexperience.
It helps if you have done a business course because it would give you some guidance as to how one can set up a new business without any prior experience.
Starting a new business is an audacious decision by all means. It shows that you are ready to take the plunge, come what may. After all, a budding entrepreneur would want to run his business for the long haul.
Many young entrepreneurs open a similar company they have worked for previously. This gives them an added advantage because when they venture on opening their own business startup, they utilise their previous experience in taking it a couple of notches higher in terms of productivity and business goals.
Whenever you decide to start your new venture, do a thorough research about its potential profitability in the market. Read those journals which have a professional stance on business trends.
Keep getting feedback from those who have adequate business knowledge and are capable of coming up with valuable suggestions regarding new ventures.
Networking is another important aspect of business consolidation. On various online platforms, you can touch base with other entrepreneurs and seek their opinion on your business model. Don’t be surprised if opinions and suggestions fly thick and fast much to your advantage.
There is no dearth of experienced business people who might proffer an opinion on how to run your startups smoothly. You may be lucky enough to find a suitable mentor who would be willing to financially help your new business venture.
Have A Definitive Goal
Develop some clear goals and strategies regarding finance. Then, set up the website followed by aggressive marketing.
When you have taken care of these basic requirements, you need to make sure whether you require a proper office and staff to take things forward.
Those who are starting their venture should set realistic business goals. Avoid getting carried away by thoughts of high profits and brand equity in the initial stages. Play for high stakes always, but be pragmatic in your plans.
Calculate The Finances
Once you decide to float your new business venture, factor in certain important things like budget, cash flow, growth plan, and the kind of services that you are planning to provide. And please ensure that you have some finance runway of nearly 6 months and MSME loan for business is one such option which you can avail.
An efficient workforce is the lifeblood of any successful company. So, once you float your new firm, look for expert and efficient people who can turn things around with their expertise and even experience. Intelligent and results-driven graduates with business degrees are an asset for such companies.
Business is always rife with uncertainty and, like limited overs cricket, you never know what is going to happen the next moment. So, you always should have backup and support plan in place.
25-Feb-2021 |MSME,Union Budget
This year’s union budget was significant and important in more ways than one. After the pandemic cut a swathe through the economy, there were expectations that the startup and MSME (Micro, Small and Medium Enterprises) would get a shot in the arm, and rightly so.
The finance minister, in her third budget speech, didn’t disappoint and announced a slew of measures which are going to help the badly battered MSMEs and startups recover lost ground.
This year’s first digital budget focused on small businesses with respect to ease of doing businesses and the insolvency process. The heartening aspect of this year’s budget is that it has relaxed norms around setting up businesses and incentivising funding for startups. The budget has also shown considerable flexibility by doubling the allocation to MSMEs to Rs 15,700 crore for the next financial year. The budgetary allocation for the MSME sector for 2020-21 was Rs 7,572 crore.
An interesting aspect of this budget is that the bulk of allocation for 2021-2022 has been earmarked for the Emergency Credit Line Guarantee Scheme (ECLGS). The scheme has turned out to be a real boon for MSMEs, which found itself tussling with numerous challenges like liquidity crisis, shortage of labour and non-payment of dues triggered by the Covid-19 pandemic. So much so that till November 12, 2020, Rs 2.05 lakh crore of loans was sanctioned to 61 lakh borrowers under this scheme. This scheme has helped revive the sagging fortunes of MSMEs in a big way in the last few months.
The government wants to make sure that not only MSME business loan is easily available but even entrepreneurship and skill development programmes for the MSMEs get higher allocation so that they can hit the ground running. In a commendable move, the government has proposed to allocate Rs 300 crore towards the establishment of new technology centres for the MSME units. Meanwhile, the Federation of Indian Micro and Small & Medium Enterprises (FISME), feels that the reduction in customs duties on steel and ferrous and non-ferrous scrap will do a world of good to the MSMEs as it will help considerably reduce the raw material prices. In fact, FISME has for quite some time been making a pitch for a reduction in raw material prices.
This year’s budget has seen major announcements like strengthening of NCLT (National Company Law Tribunal) framework, implementation of e-courts system, a special framework for MSMEs, besides introduction of alternate methods of debt resolution. These steps would give a substantial boost to MSMEs in the coming days.
It needs to be mentioned that the strengthening of NCLT framework would definitely bring relief to cash starved firms that bore the brunt of the pandemic. The government has already made it clear that Covid-19-related debt would be excluded from the category of default. In an effort to insulate small businesses from being dragged to the NCLT, the government has decided to raise default threshold for triggering insolvency to Rs 1 crore from just Rs 1 lakh earlier.
In order to encourage entrepreneurial spirit and benefit startups in setting up one person companies (OPCs), the finance minister has said that OPCs would grow without any restrictions on paid-up capital and turnover. According to the minister, the OPC can be converted into any other type of company at any time. The reduction in residency limit has also been announced according to which an Indian citizen can set up an OPC within 120 days instead of the initially approved 182 days; besides it will also allow NRIs to incorporate OPCs in India. Please note OPC can already apply for MSME business loan online
In a major post-pandemic boost, the 2021 budget has proposed an extension of eligibility for claiming tax holidays for startups along with the capital gains exemption for investment in startups till March 31, 2022, to incentivize funding.
What traits do you need to run a successful new venture in today’s challenging time? Read on to find the five must-have traits which an entrepreneur need to acquire.
A Growth Mindset
A growth mindset is the best thing to have to take your business to the next level and achieve exponential growth whatever the circumstances or difficulties may be. A fluid and unruffled entrepreneur with a growth mindset, unlike someone with a fixed mindset, goes full steam ahead to execute his ideas. A person with a growth mindset always looks for the right opportunity to strike out on his own. As a matter of fact, there is a tremendous need to develop a growth mindset in today’s challenging times. For an entrepreneur, a growth mindset is an asset given the competitive and volatile nature of any business venture.
Have a Not-To-Do List
Warren Buffett once said, “The difference between successful people and really successful people is that really successful person say no to almost everything.” Having a not-to-do list implies that it is absolutely essential to focus on the priorities related to your business through self-discipline which would make a qualitative difference to your commitments. You need to be extremely adept at task management to delegate and outsource work so that it doesn’t cut into your precious time. It has been seen that the most successful people have shaped their careers by saying no to things and proved themselves wiser in the long run. One must always remember that time and energy are a limited resource for each of us, and a lot depends on how we choose to spend that precious resource. A not to-do list, by all means, will cement your relationships with your colleagues and customers; after all it will be a case of promises kept.
Be a Better Listener
One of the good qualities of an entrepreneur is his ability to listen patiently to his customers and employees. Your body language matters a lot. When a magazine asked Virgin Founder Richard Branson what it takes to be a good leader, he said one should be a good and an ardent listener, adding that if you want to make a mark as a leader, “begin by listening.” No doubt, listening is a great art, and a person imbued with this quality can do wonders in his business ventures. Listening, after all, builds trust. The entrepreneur should show utmost interest and listen attentively to their clients’ responses. Listening also minimizes the scope of misinterpretation and miscommunication to a great extent because you are hearing out the other person before putting across your own message. There may be differences of opinion between you and the person on the other side, but imagine how talking things out can be mutually beneficial in terms of business interest.
Have Definitive Goals
It is extremely important to define your business goals once you decide to take the plunge. The focus should be on financial security which would help you fire on all cylinders. As an entrepreneur try to achieve specific goals. Remember, never go after unrealistic goals. Don’t set the bar too high in the initial stages. If you have set a goal to earn Rs 6 lakh a month when you've never earned that much in a year, that goal becomes unrealistic and elusive. Start with increasing your monthly income by 20 to 25%. Once you are able to achieve your first goal, you can now spread your net wide. Short-term goals would yield results in a period of weeks to a year. Long-term goals can be achieved within five to twenty years. Or a definitive goal may be to raise rupee 20 lac MSME loan in the next six months. The more explicit and definitive is your goal the more are the chances of achieving it.
Timebox Think Time
An entrepreneur should have a wealth of ideas to get his business into better shape. Try spending quality time reflecting, exploring, learning and strategizing to brace up for the next move. Ideally, one should set aside more than 20 to 30 percent of their week to focus on innovative business ideas. One of the greatest challenges budding entrepreneurs tend to face is carving out think time. Think time helps you think and reflect on where you’ve been and explore where you want to go. Becoming a leader brings with it a sense of added responsibility to make things work and take them to their logical conclusion. Remember, your entrepreneurial success is measured not by how busy you are, but how intelligently you can keep a safe distance from busyness! Your ability to make a mark as a leader is predicated on your success in mastering the discipline of think time.
If knowledge is power then constantly updating your knowledge is a superpower. Whether it's is personal development or scaling up your business, the more aware you are the better it is. And one form of learning is to keep yourself updated with the latest change in the various rules and regulations. One such rule change has been witnessed in the definition of MSME units and now we have revised definitions of MSME. Read on to find out how you can make the most of these changes to expedite the growth of your business in 2021.
Well if you run a micro or a small or a medium enterprise then you need to be aware of the latest revised definitions of MSME. Knowing these will help you to grow your business in 2021.
Earlier, the MSMEs were defined on the basis of investments that have been put into them, however, now the revised definitions will also include the turnover of the unit as well, and rightly so.
What are Micro Units
Earlier the criteria was solely on an investment basis. Like:
1. An investment up to Rs 10 lakh for service units
2. An investment up to Rs 25 lakh for manufacturing units.
New Definition Of Micro Units
An MSMEs will now be called a micro-unit if up to one crore, it can be proprietor own money or through MSME business loan, has been invested into it and it has a turnover of less than Rs 5 crore. Unlike earlier now these two aforesaid factors will define a micro unit.
New Definition Of Small units
As for the small units, the investment limit has been doubled from the earlier rupees 5 crore to rupees 10 crore, now besides that it must have a turnover of less than 50 crore. This new definition encompasses all MSMEs, service enterprises included, earlier service enterprises were under-investment of up to Rs 2 crore category.
New Definition Of Medium units
An enterprise that has an investment up to Rs 20 crore along with a turnover of less than Rs 100 crore will now be called a medium unit. Whereas earlier, the investment limit for a medium unit was up to Rs 10 crore and for Service enterprises, the limit was up to Rs 5 crore.