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.