Amit

How to grow business Big business in a shorter period: Days are gone when people hesitate to take the services of professionals, now whether it is Medical requirement or house construction or tour planning or IT Services or even in general business, people now taking full advantage of the expertise of professionals. One day I met with the businessman who had grown his business manifold in a short period of 7-8 years with foreign branches and turnover of more then Rs.1000 crores, I gently asked him about the secret of such a huge growth in the business although he is just a normal graduate. His reply was awesome, he told ” that by doing everything by your own,you can only run a small shop, because you have only 24 hours a day, to develop a empire you need to hire the time and skill of the professionals of the industry and area, with their expertise and experience, the business can grow in a much higher speed, then even one think of.” So we should know the utilisation of the resources available in the market to take the maximum benefit of it.

Many a times it happens that Businessmen or Organisation choose the wrong financial product for them and get into the problems. Banks and Financial Institutions are having different products for different financial needs of the organisation, but sometimes businessmen without thinking in deep just go for the money in whichever form it comes, whether it suits or not, which becomes the wrong decision afterwards.Sometimes Bank/FIs executives/Officers also without asking the actual need of the customer, just offer the product which is easier for them. It is advisable to get CC Limit or OD Limit for short term need or working capital need of the organisation like investments in Current Assets and take Term Loans or Long term loans for the purchase of fixed assets or assets of longer life.

Days are gone when our elders used to teach us for hard work, In today’s world of Globalisation doing hardwork 24 x 7 for 365 days a year will not takes us to the heights of achievement. If we look upon any First Generation Big Business houses, who had created their National – International Presence in the short duration of one or two decade, we will find that its not only the hard work and working 24 x 7 brought them to such heights, Actually its a teamwork with Professionalism and making their business as a Institute. If someone is doing all the hard work by its own and giving personalised services to the client, then that person will be stucked at some point because a single man have only 24 hours a day, to increase this time, their is a need to hire the time by involving more such efficient people in the organisation. It shows the inefficiency of the organisation, if someone is not getting time for their personal life, hobbies, family etc.  Today by taking maximum benefit of Technology and intellectual people, a business can grow at much higher speed.

In any Business, best utilisation of the resources available is the key for success, be it Material, Manpower or Money. Everyone should know have deep domain knowledge of their respective business as well as resources available outside like new market trend, new policies of government, new way of marketing like marketing through social media as well new technology coming up in the Industry. By effectively utilising the resources one can achieve big success in short period, but it should be planned and well managed. One of such example is best use of Bank Guarantee,Performance Guarantee by the Government Contractors and Supplier can give huge liquidity to the business. Government Contractors and Suppliers need to give some EMD before starting the any project, then some Security Deposit also deducted from their running bills normally 5-6% which gets released after the completion of contract, So if a Person gets some Work Order of Rs.1 cr which need to be completed in the period of 2 years, he need to give first the EMD ranging between 5-10% of the Contract value and then 5-6% deduction of Security deposit on every running bills,which makes the blockage of  around 20% fund of the contract value for the period of 2 years, and such multiple Work Orders/contracts may attract blockage of huge funds. Which can be released by giving BG/PG to the government department, which is comparatively cheaper also as compare to any other source of funding, and helps in maintaining the liquidity in the business, to get more such contracts and enhance the business.

Working Capital Finance which is also commonly known as CC Limit (Cash Credit Limit) or OD Limit (Overdraft Limit) is actually the finance of Capital invested in Current Assets or Working Capital. Every Business at any point of time have some capital invested in Stock, Book Debt etc., which although recovered very frequently or almost daily but again invested, hence the level of investment remains the same all the time. To fund this, Banks normally sanction CC Limit or negative withdrawal capacity where according to the need, business can withdraw and again deposit when it recover, its a regular cycle. If CC Limit is wisely used it can create huge profit in the business. Some thumb rules for the use of CC Limit is the turnover of the business should be ATLEAST 5 times of the Working Capital Finance taken. Further Recovery from debtors should also be good and advisable to keep the level of 30 days. Then we should try to pay our Creditors in the maximum time allowed to us, to keep the maximum liquidity in the business. Working Capital Finance should never invested in Fixed Assets, which may create blockage of funds for day to day business.

Nowadays Almost all the Banks and NBFC are giving privilege to the Professionals like CSs,CAs, Doctors for the setting up of their offices/clinics. They also give finances for the purchase of Equipments. In housing Loans, Mortgage Loans also they give special rates and waiver in Processing Fees etc. For getting finance we need to have KYC documents and Income proof like Income Tax Returns,Bank Statements, even their cash books and expenditure register also helps in getting high eligibility in the loan amount.

Current year is going to end today and New year is starting. Its become the ritual to take new resolutions on new year, but it should be the regular practice for self improvement.We should take the resolutions that every day we will take one resolution and will try to justify that resolution. We will analyse our day according to the resolution taken, there is no point of just taking the resolution and not following. SO THE NEW YEAR RESOLUTION IS TO TAKE NEW RESOLUTION FOR SELF IMPROVEMENT EVERYDAY.

The cost of expenses that we made in our day to day life also changes with the need and desire of the head of expenditure. Sometime the cost of same item changes with the need of the person. The cost of Same vehicle changes with the period or cycle of the business he is doing. Same thing happens in the Financial Planning also. If you have sufficient Cash Surplus in a particular time then material of Rs.1 lacs also doesnt matter, but if some one is running through financial crunch the cost of  Rs.10000 is also higher. At the time of need, spending lac rupees also doesnt matter and if not required spending Rs.10000 is also wastage of money. If Someone have a good opportunity to earn handsome money, cost of 20% per annum is also not high, but if the margins are thin, then cost of 10% per annum is also very high.

Again our country is facing the heat of Reservation all around, and even our leaders instead of working on capability enhancement of the youngsters (Future of the Country), they are indirectly supporting them and Directly contributing to the cause which may handicap our country’s growth. As far information available, Reservation was introduced at the time of Independence for the period of 10 yrs only which none of the Government is dare to revoke. Instead of giving Reservation, our leader should work on enhancing the skills by opening up special schools or colleges, where nothing should be charged from the privileged community for education, they should be made capable to face the competition which will definitely contribute in the overall growth of the country. Sometimes we afraid of the mindset of our young leaders, who even don’t want to realize the real problem of the country which need to be addressed like poverty, raising employability level of new comers, willingness of work in youngsters, creating enterpreneurs, making the country economically self-sufficient etc. Our country have all the sufficient resources, but unfortunately those are not optimally utilised because of such mindset. Our rich human resources either drained out or unutilised because of such government