Tag: Business growth guide

As a thriving business in today’s economy in India, you would have come across the term gig economy. According to Velocity Global, the global gig economy statistics show that the numbers are poised to rise from 43 million in 2018 to 78 million by 2023. 

Often people may not be aware of the meaning of the gig economy in India and think that it is a concept that is not prevalent in our country. But that is far from the truth and there is a rise of the gig economy concept in India as well.  And if you are the founder of a small or medium-sized business or a startup, then you must learn about the gig economy’s pros and cons. Let us dive deeper into the concept of a gig economy to understand what its impact is on smaller businesses.

What is gig economy?

A gig, by definition, is a small-term or short-term job that you pick up and work on. For instance, a specialty engineer who specializes in bridge structures may pick up gigs in the short term as and when a project requires his or her specialized expertise. An economy where more people are inclined to gigs or short-term freelancing jobs or contracts may be defined as a gig economy. In such economies, there are less long-term jobs and more gigs as the choice for employment.

What are the pros and cons of gig economy?

Gig economies are slowly starting to take over conventional employment, given that the younger generation is more inclined to this concept. Shorter attention spans, increased choices, and wanting to specialize are some of the reasons that encourage the growth of the gig economy. As with any other concept, gig economies have their own pros and cons. Let us take a look at some of them here.

Pros of gig economy

Smaller workforce

For companies that do not want to onboard too many full-time employees, gig workers are a good choice. They not only work with complete commitment during the contract period but need not be part of the long-term payroll. 

Cost control

Gig workers, by definition will work for a shorter period and then move on, which means that the business has to commit to paying them for a lesser time period. Once the work is complete, there is no need to keep paying the employee in question.

Specialist skills

Many companies need a specialist with specific skills for a short time period and gig economies support that. Since gig workers are not committed to one employer, they can support your requirements without any waiting period.

Increased choices

Instead of only full-time employees or contractual employees, the gig economy allows companies to choose from increased options. Companies can appoint full-time employees for sensitive matters and take on gig workers in the short-term for project needs.

Cons of gig economy

Lack of commitment 

The lack of commitment from the gig workers can often result in poor quality of work, especially towards the end of the contract. In some instances, the lack of commitment from the company can also result in issues for gig workers.

Disruptions and gaps

With an increasing number of short-term workforce working in a company, there can be disruptions in production and gaps in quality. This is especially in the case of manufacturing companies, where quality needs to meet certain standards.

May become expensive

Since gig economies operate on the concept of demand and supply, in some instances, gig workers may charge more. Given that gig workers are only short-term, they may feel the need to charge more, making it expensive for the company in question.

How is gig economy relevant to small businesses in India?

Small and medium enterprises or startups by definition have limited resources and often have to balance their limited resources against increasing demands. In such situations, the pressure to do more with less is always upon these small businesses. This, in turn, means there is a lot of pressure on employees to perform more roles. 

The result is often poor quality goods, subpar customer experience, or even sometimes dangerous situations. But this does not mean that the smaller business should recruit more people to make up the difference. Doing so will tax their limited resources and reduce profit margins,

In such a situation, the concept of a gig economy with short-term specialist workers to support them is the right way to go. The smaller business gets the skillsets they require, but without adding the burden of increased payroll in the long run. Also, in some instances, when the employee they recruit may not be the right fit, and in such cases, there is a long process for separation. This concern is mitigated in a gig economy due to the nature of contracts. 

Smaller companies also get to experiment with the right mix of skills in the gig economy before committing in the long term. As you can see, the benefits of the gig economy are numerous and will help small businesses grow with access to the right resources without a long-term commitment.

At EnKash, we have a number of fintech spend management solutions to meet the evolving needs of a business like yours. Click here to check out what EnKash, Asia’s 1st & smartest spend management platform has to offer you.

Technology has become an integral part of how everything works around us.  As a result,  all companies, be it startups, small businesses, or multinational companies, need a resource to execute, plan, and direct all the technical aspects of a business. This resource is widely known as a CTO. In this blog, we’ll dive into all the relevant details of the CTO’s roles, responsibilities, and skills for the substantial growth of the company. 

Chief Technology Officer or CTO: The Definition

First, let us understand what is the CTO full form and CTO’s responsibilities. The CTO full form in the company is Chief Technology Officer. This person holds a senior designation in any organization and is mainly responsible for technology management within a company. 

In other words, he or she is in charge of creating new technologies, new services, and products in the company considering all the industry factors and the technology changes by keeping in mind the short-term and long-term demands of the company. Moreover, a CTO is also responsible for the growth and expansion of the company. 

How to become a CTO?

To become a Chief Executive Officer, one has to start the career by opting for a bachelor’s degree most probably in the IT sector, computer science, or information science. One can pursue a master’s degree in engineering or computer science, applied mathematics, and cybersecurity. 

In a startup, if you want to work as a CTO, you will be given priority, if you are also well-versed in fields such as customer relations, marketing, and business management. This role requires a CTO to wear multiple hats to achieve company goals.

Furthermore, to become a CTO, the most essential thing is hands-on industry experience. Thus, before one takes on the responsibilities of being a CTO, lots of Chief Technology Officers start their careers working as lower-level managers and later grow to higher positions and then get promoted to the CTO role.

CTO Roles and Responsibilities

Below is the list of key responsibilities of a CTO in any organization. They are mainly responsible for:

1. Offering technical assistance to the company
2. Creating all the predictable outcomes by turning project execution into a controlled procedure
3. Strategizing cutting-edge ideas for driving the company’s growth
4. Identifying all the new technological assets that are appropriate for the company’s use
5. Creating cybersecurity measures to protect data and client information
6. Monitoring the key performance indicators and allocation of IT spending to assess technology metrics
7. Looking for partners/sponsors for investing purposes and communicating the technological strategies to them
8. Ensuring that all the corporate resources are efficiently used and distributed
9. Ensuring that the technology plan created aligns with the company’s objectives
10. Looking for partners/sponsors for investing purposes and communicating the technological strategies to them
11. Making all the leadership decisions primarily based on the company’s technological needs

Final Words

As you see, A CTO act as a bridge between businesses and consumers. This role is important in today’s time for providing customer-centric services and offering various customized software solutions. On the other hand, the key role and responsibilities of a CTO also depend on the size of your company, its budget, and its long-term goals as well as the nature of the transformation this person will be responsible for.

Did you know that the structure and category of your business can make a big difference when it comes to many aspects? Yes, it does. Whether it is the kind of capital you have to raise or the kind of orders you want to get, in terms of venture capital, or your liability in case required. 

Each country has some distinctive types of businesses or categories and in this article, we will look at the different types of businesses in India. We will go deeper and discuss the pros and cons of each type of business and the one most suitable for you if you are starting a new business.

What are the different types of businesses in India?

Let us look at the different business categories that you can consider if you are starting a new business or considering restructuring your business. 

Private limited company

A private limited company has a lesser number of shareholders and the equity is defined as per the articles of association. In most instances, the transfer of shares is restricted and private limited companies generally cannot offer shares to the public.

Here are the main features of a private limited company:

Distinct legal existence

As opposed to a sole proprietorship, a private limited company is a distinct legal entity and is considered separate from the promoters. This, in turn, means that any legal action taken on the company need not apply to the promoters, though they do have some responsibilities. In the same way, a private limited company can sue others as a distinct legal entity.

Capacity to borrow

As a distinct business entity, the private limited company has the option to borrow on the strength of its financials. Banks are more likely to consider private limited companies as an acceptable entity for borrowings than other partnerships and sole proprietorship businesses 

Option to exit

As specified in the articles of association, you may exit the business by selling your shares with other directors or promoters. Unlike a sole proprietorship, where this is not possible private limited companies offer you this option.

Partnership firms

In a partnership firm two or more people get together to form a partnership firm. The investments, the responsibilities, and the profit sharing is decided mutually by the partners and are entered into the agreement to use as a reference in the future. Though it is not mandatory to register a partnership agreement, it is advisable to do so. The liabilities are shared among the partners with no limits.

Here are some of the features of partnership firms:

Shared responsibility

Due to the shared responsibility for all aspects of a partnership, there is a cohesive approach to business, and this benefits and partners as well as the business.

Trust and synergy

Partnerships arise out of trust between the partners and the belief that each of them brings in their own skills and contributions. This, in turn, ensures that the partners have a lot of trust in each other and there’s a synergy in all their actions.

Ease of financing

Banks and financial institutions tend to be favorably inclined to finance partnership firms due to their performance and continuity in comparison with sole proprietorships.

Sole Proprietorship

As the name implies, sole proprietorships are owned by a single individual. As a result, there is no distinction between the legal status of the business and the owner in this case.  This, in turn, means that a single person has ownership of all assets, liabilities, and profits of the business. 

While sole proprietorship seems a good option for those who want complete control and ownership, it also has some disadvantages.  Here are some of the main features of sole proprietorships:

Control

The complete direction of the business, the spending, and the way ahead are all decided by the owner. In case you want to retain complete control of your business, this is the way to go.

Flexibility

Sole proprietors have complete flexibility in the direction of their business or any other aspect since they are the sole authority. But this also means that any mistakes or errors are going to be the responsibility of the owner.

Finance

Since the owner of the business and the business are the same, there can be some hesitation when it comes to finding ways to finance the business. Banks and financial institutions often worry about the continued performance of the business and its ability to repay loans unless the financials and past performance of the business are strong.

Other types of businesses include Hindu Undivided Family, Limited Liability Partnerships, One Person Companies, Non-profit Companies, Joint Venture Companies, and Non-Governmental Organizations. All these are variants of the four basic categories of companies in India. 

Public limited company

A public limited company has been defined as a company that is not a private company. The public limited company has to have at least 7 people with a minimum paid-up capital each. Many public companies are listed on the stock exchange and the shares of the company are traded on the stock exchange. Public limited companies that offer shares to the public are subject to a lot of regulations. 

Here is a list of features of a public company:

Liability is limited

Since there are at least 7 members as shareholders on the minimum side and there is no limit to the maximum number of shareholders, the liability is limited to the extent of your share in the company. 

More members

It is likely that if your business is a public limited company, then there are many members as far as shareholders are concerned. However, as a member of the board of directors, your responsibilities could be different from general shareholders.

Longer existence

A public limited company is a separate entity and is not affected by the loss or demise of a shareholder. And if well run, can enjoy a longer existence than other forms of businesses.

Bigger capital

As a public company, your company has more options and venues to raise capital or even float debentures to raise money for your business. 

How to choose the right business type for your startup or small business?

Given below is a summary of the pros and cons of each type of business. You can make your decision based on your requirements and preferences for the well-being of your business.

At EnKash, as Asia’s 1st and smartest spend management platform, we specialize in supporting businesses like yours grow more, spend optimally, and save more.

When small and medium sized businesses or startups hear the term ‘CRM’ their usual reaction is to shrug and say that CRM is necessary for larger companies and not them. In this article, we will explore why investing in CRM is important and the importance of CRM software for small businesses. Let’s start by understanding what CRM stands for and what it does. The full-form of CRM is customer relationship management. As the name suggests the CRM software is used to manage customer relationships with ease.

The first thing to consider while deciding whether to invest in CRM or not, is by looking at the core of your business. And the core of any business is universal – the customer or customers. The better your relationship with your customers, the more likely it is for your business to survive and thrive. Given that logic, don’t you think investing in CRM is important? Yes, it is a substantial capital investment and will require a long-term finance arrangement. But it will also ensure that your business is more profitable. 

What does CRM do?

A CRM helps you capture all the information about customers onto a common platform. Every interaction that any team in the company has is logged into the customer account. For instance, the marketing team has had the customer click on a link to download an asset. This will be taken as a marketing-qualified lead and nurture the customer with more information via emails.

Once the customer has opened the emails, consumed the information, and shown interest in a demo or discovery call, he or she is passed on the sales team. All the interactions and actions taken by the customer at each stage is recorded on the CRM. This enables the sales team to tailor their pitch accordingly. In the same way, once the sale is complete, all the customer-related information is stored in the CRM to ensure positive interactions, more sales, and so on.

Also Read: 9 Tools to Grow Your Business Exponentially

Now that we understand that CRM can help you maximize the customer lifetime value, build a reputation as a customer-centric company, and improve overall profitability. 

9 reasons that showcase the importance of CRM for SMBs and startups

Ability to do less with more

As a small business, doing more with least amount of resources is always the aim and your investment in the CRM can help you do that. For instance, the work of data mining to see what customers are saying about your business and service levels can be collected from the CRM. You can also use the CRM to ensure that there is common information available to all the departments without the need to generate reports, share, and disseminate the information.

Increased sales

The need to improve revenue generation is the aim of most businesses and more so for smaller businesses because their access to funds is lesser. With a CRM in place, increasing sales becomes easier. There are two ways that this happens, repeat sales to those customers who are ripe for it based on the information in your CRM or referrals from existing customers because they are happy with the seamless experience you have provided thanks to the information access provided by your CRM.

Customer retention

In a smaller business or startup, the loss of a single important account or customer can have a big impact and therefore customer retention is of vital importance. The importance of CRM is showcased here when all your customer-facing teams are able to provide a comfortable and pleasant experience to customers. Imagine the delight customers will express when your accounts receivables team thanks for them timely payments instead of calling them to make payments, which happens by default when there is no CRM.

Easy access to data

Whether your business is a large one or a small startup, data is the fuel that keeps your business running. Want to know how much sales have happened or want to know which product has the most complaints or want to understand the trend for sales volumes across various time periods, the CRM can mine the data and enable better decision-making.

Improved market understanding

In today’s market conditions, only those companies that listen to customers and understand market trends can thrive. And carrying out market surveys and purchasing expensive reports can be time-consuming. With the CRM, you can pick out information from various sources, including leads that did not get converted, to get an understanding of market trends and the pulse of customer needs.

Better internal coordination

As a startup, it is likely that you are operating with a smaller team for each department and this often burdens the people working on different teams. As a result, the customer experience could suffer because people did not have enough time to share the information. With CRM, all teams have access to real-time information making coordination easier.

Source for business expansion ideas

The importance of CRM software for SMBs and startups can be felt the most when you want to expand your business and want some ideas. Not only with the CRM point you in the right direction but also substantiate the idea with solid data collected over the course of time.

Competitive advantage

In a world where competition is rife, it is essential to stay ahead and the differentiator in most cases, is the way you make your customers feel. With the CRM software in place, you will be able to ensure that the customer needs are anticipated and met with, giving you the competitive advantage.

Reduced operating costs

As a growing business, cutting costs is one of the topmost concerns and CRM for small businesses can offer a ready solution. The CRM helps you do more with less, ensures that data mining is easy, cuts down the lead time to close a deal, and reduces paperwork, thus, helping reduce costs.

At EnKash, Asia’s 1st & smartest spend management platform, we believe in empowering our customers with the best fintech solutions to manage their needs. Check out solutions to find the one that fits you the best.

If you are a small business or startup that has come up with an innovative concept or idea, then read on to understand more. You will understand what patent filing is, and why you should consider patent filing and patent filing in India in simple steps. 

What is a patent?

Let’s start by looking at what a patent means. By definition when you or your business has come up with a unique product or concept that has not been invented or discovered until now, then you can patent the idea or concept as belonging to you. Having a patent for a product or concept means that you have the exclusive right to the idea and that others who want to use the idea will have to pay you patent fees.

Why file for a patent?

Today, one of the most valuable assets is intellectual property. In a world where information on any aspect is available online, if you have a unique idea, it is better to patent that concept. There are several reasons for doing this.

Protecting your intellectual property

Since a lot of effort has gone into the concept, you need to protect the rights of your business. In case somebody wants to use the concept, then they will need to pay you to get the rights to do so.

Curbing misuse or distortion

The way today’s market conditions are, makes competitors take a concept and slightly change or distort it to present it as their own. Patenting prevents this from happening and protects you.

Improve the valuation of your business

If your business has a unique idea, then it makes sense to consolidate your position as the market leaders and improve the valuation of your business. Patenting your idea helps you do just that.

Catch investors’ attention

As a small business or a startup, it is essential to catch potential investors’ attention so that your business can attract capital or debt as required to grow and flourish in a competitive market.

Now that we have understood what patent registration means and why you should register your patent let’s look at how to go about patent filing in India.

Also Read:

• Why Startups should invest in technology
• 5 Credit Mistakes to Avoid as a Growing Business
• Business vs Personal Credit Cards: What’s the Difference?

What is the process for patent filing in India?

Conceive your invention

The first step is once your business has come up with your invention to get all information together. Factors like the type of invention, the advantages, how it help, and carrying out a search whether there is an existing patent needs to be done. Under the act, you need to ensure that the concept does not fall under the categories that are not patentable.

Search and draft patent

Once you are through the first part, you have to start searching in terms of patentability before drafting your concept. This search will identify the concepts that are closest to the one you are trying to patent. 

File the application for patent

Once you have completed the draft, you can file it with the patent office, generally using form 1, and you will be given a receipt along with a patent application number. As a startup or a small business, you need to use Form 28 to file for patents.

Publishing the application

The application is filed after 18 months of filing the application. In case you do not want to wait for 18 months, you can request for early publication and pay the prescribed fee using Form 9. With this move, you can expect publication within one month of application. 

Request for evaluation

Unlike the publication stage, the evaluation does not happen automatically and you have to file a request latest by 48 months from the date you file the application under Form 18. Once the controller gets the request, the application is passed on to the patent examiner who will look at it from different patentability criteria points of view. The application, usage, novelty, etc is looked at and the applicant is provided with the First Examination Report or FER. You can also request an expedition using Form 18A under Rule 24C. 

Respond to queries and objections

Once you get the FER, you are supposed to respond to all the objections raised in the report in writing. As the applicant you can negate any objections and prove the applicability of the invention. This can be done by physical presence or through video conferencing.

Patent grant 

Once all the objections are addressed, and if the patent application is found to meet all criteria, then it could be placed for a grant and the patent granted to the applicant. Anybody who wants to oppose the patent will have to do so within 12 months of the patent grant via a notice to the controller.

What is the cost of patent filing in India?

The cost of patent application is around INR 4000 for smaller businesses, INR 8000 for larger businesses, and additionally, there could be attorney fees ranging from INR 20000 to INR 35000.

Visit EnKash to learn how as Asia’s 1st & Smartest Spend Management Platform, we help businesses like yours grow to their full potential.

Human Resources (HR) is an important department for every profitable business. The human resource department forms the organization’s backbone by hiring suitable people. The success of any business enterprise is measured in terms of staff satisfaction and work performance.

The Human Resource (HR) Department undeniably plays a vital role in any organization, whether a startup or a multinational. In a startup, HRs are responsible for supporting the growth of the business by defining and attracting the ‘right’ talent, determining the organizational structure, creating clear communication channels, framing the code of conduct, and so much more.

HR Policies for a Startup in India

• Code of Conduct: The code of conduct HR policy consists of the aim, vision, and mission of any startup. It also helps to build and maintain the right workplace for the employees. Most importantly, it contains rules and regulations for the employees to abide by.
• Leave Policy: This is one of the most important policies for any employee of the organization as it outlines the various types of leaves an employee can avail in different situations like maternity leave, female-day care leave, casual leave, sick leave, annual leave, and more. Many organizations have a non-paid leave policy as well depending on the situation where the salary of the employee will be deducted.
• Employee Appraisal and Promotions: This is another policy company that stands as one of the important HR policies for a startup. In this, the founders, and the top-level management evaluate the employee’s performance over a period of six months or annually and provide them critical feedback on their performance, and then reward them accordingly with an increase in salary and promotions.
• Rewards & Recognition: When the employees are appreciated, they tend to work better. As part of many HR policies, this policy states how the employees must be rewarded based on values, goals, and priorities. Many companies reward employees quarterly with monetary rewards or gift vouchers to boost employee morale.
• Work from Home Policy: Ever since the novel coronavirus hit the globe, various organizations have shifted away from the traditional way of only working from the office to working from anywhere i.e. working from home. Some startups are working completely remotely whereas others are insisting their employees come to the office full-time, or a fixed number of days a week.
• Health and Safety Policy: For any startup, the well-being of its employees is the foremost concern. It includes not only physical well-being but also mental and emotional well-being. Hence, the HR department frames various health and safety policies for the employees to ensure that every employee is provided with the best work environment at the workplace.
• Employee Separation Policy: When the employee decides to leave the organization, once again the role of HR comes into place where various documentation work is exchanged amongst the employees and the employers. There are various exit formalities that are to be cleared by the employees before the company in order to avail the full & final payment, relieving letter, or experience letter.

Why does a startup need an HR policy?

There are various reasons why a startup needs an HR policy. Listed below are a few reasons:

• In a startup, clear-cut HR policies help to treat employees fairly across the organization.
• Such HR  policies serve to preempt various misunderstandings between employees and the employer regarding employees’ rights and obligations in the workplace.
• These policies help early-stage & growth-stage startups in saving valuable time and resources.
• The absence of clear HR policies leads to a decline in employee morale, deterioration in employee loyalty, and increased vulnerability to even legal penalties.

Conclusion

This blog gives an overview of any organization’s most commonly used policies. These policies majorly depend on the company size, type, and industry, and these policies must come into action based on the same. When framing the HR policies and procedures, it is imperative for the Human Resource team of every organization to keep in mind all the business practices and all the applicable national, state, and local laws.

When running a business, be it small or large, its management is certainly not an easy feat. A growing business requires a lot of strategizing cash flow, investment in the right areas, planning for maximizing profits while minimizing business expenses, and much more. 

However, while running a growing business, there are high chances that obstacles to business growth are a common challenge faced by various entrepreneurs/business owners. This happens due to various reasons, such as vastly overestimating the value of the business, lack of understanding of the market, etc. 

In this post, various credit mistakes are highlighted that must be avoided by a growing business.

Use of both Personal and Business Credit for Growing Business

One of the most common mistakes made by a growing business is mixing personal and business finances, thinking it will help them build a good business credit score. In fact, paying anything relating to your business expenses with personal credit will only increase the chances of harming your personal credit score. 

However, you must try to build the credit profile of your growing business by always making all the purchases either through a business credit card or a business account so that there is a complete track of all your business expenses. Moreover, you must know that the credit limit issued to businesses is very high in comparison to the limit issued to individuals owning personal cards.

Over-hiring Instead of Smart Hiring

As a small business owner, another mistake that you must avoid is over-hiring employees. Instead, your key focus is on hiring the smart and right workforce to help you save your time, money, and resources. If you hire the wrong people, your business will no doubt collapse in no time.

Hence, you must be clear about your growing business requirements and then seek candidates to help you fulfill them and not over-hiring the people and later regret the decision. Your workforce must be a mixture of people with a go-getter attitude, easy to work in a dynamic environment, keen to learn new skills and techniques, and most importantly who can think outside the box.

You must never hire just for the sake of hiring but only hire when you are confident that they will be a valuable part of your business’s growth.

Poor Budget Planning

Many times, business owners misjudge the costs of scaling a business. However, when a specific budget for a business is created, ensure that funds’ allocation for your business requirement must be given top priority. If you fail to plan a proper budget, the consequences for the same are too painful as it will drive your business away from reaching your financial goal, might lead you towards a debt trap and so much more. Undoubtedly, this is one of the biggest obstacles to business growth.

Poor Focus on Marketing for Your Business

Marketing for a small business is as important as that for any long-established business since the world needs to know about your business, products, and services that are ready to serve your customers. However, this is another big mistake that business owners make by not focusing on marketing strategies which leads to slow business growth. You must do marketing with the target audience in mind and work towards catering to their needs.

Wanting to Do It All Attitude 

Another challenge of expansion for businesses is trying to master everything at once, due to which the entrepreneurs fail to focus on the things that are important to business growth. With this attitude, you will never be able to reach your business goal; at every point, you will be stuck. So, don’t become a jack of all trades and a master of none. Instead, you need to plan and then prioritize accordingly.

Final Words

For businesses in the growing stage, expenses are likely to increase and profits never come to reflect overnight. As a result, the owners can make mistakes relating to business finances which will ultimately lead to slow progress and in the worst case, even business failure. You must consider these mistakes for running your business in the most effective & efficient way.