How to start Business with Family/Friend.

Going for Business with Family / Friends?

Here some points to be consider:-

Going into business with friends has potential pitfalls but it can still work very well and starting a business is generally easier if you have someone else in the business with you. Having three of you in the business would be good due to the fact that three is an odd number and you will be able to get a majority on any decision made, by putting it to a vote.

If you do decide to go into business together I would say that it is very important that you all agree to and sign a partnership agreement that includes the following:

1.Ownership of the business - percentage shares etc

2. Decision making - how are decisions made in the business, e.g. by majority vote or other method

3. Duties & responsibilities - who is responsible for what

4. Working hours

5. Job titles

6. Profit - how are any profits to be distributed

7. Losses - how will you deal with losses, should there be any

8. Calculation of profit and losses - clarification as to how profits and losses are measured

9. Departure - how to handle a situation where one partner wants to leave the business

10. Salaries and pay, if applicable

11. Other benefits such as expenses and holidays.

Hope it will help you to initiate your business and take it for long Term.

Is Entrepreneurship for You?

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business -- but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions.

Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

How good are you at making decisions? Small business owners are required to make decisions constantly -- often quickly, independently, and under pressure.

Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-hour work days every week?

How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization -- of financials, inventory, schedules, and production -- can help you avoid many pitfalls.

Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family? The first few years of business start-up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

Why Small Businesses Fail

Success in business is never automatic. It isn't strictly based on luck -- although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.

In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

1. Lack of experience

2. Insufficient capital (money)

3. Poor location

4. Poor inventory management

5. Over-investment in fixed assets

6. Poor credit arrangements

7. Personal use of business funds

8. Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

9. Competition

10. Low sales

Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.

These figures aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

On the Upside

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks:

1. You will be your own boss.

2. Hard work and long hours directly benefit you, rather than increasing profits for someone else.

3. Earning and growth potential are far greater.

4. A new venture is as exciting as it is risky.

5. Running a business provides endless challenge and opportunities for learning.

Source : Reuters

Manish Kumar

Mansa Ventures

Five Ways to Find Your Business Fit

If you're looking at getting into a new business, first make sure it suits your needs. Here's how.

When asked their reasons for wanting to strike out on their own and start a business, people seldom say, "More money." Most of the time I've heard, "More time with the family," "more flexibility during the day," or some other unfulfilled quality of life desire.

Granted, money certainly plays a key role in their making a "go" or "no go" decision, especially in a slow economy. But becoming an entrepreneur, whether you're starting from scratch or buying into a franchise or existing business, requires you to look beyond simple financial returns.

You may already be earning a good living. But other than making money, maybe you just can't find another compelling reason to go to work in the morning.

Money alone is not enough to keep most people fulfilled. I recommend evaluating a business opportunity against the following five factors to make sure once the newness wears off, you will still feel content with your decision:  

• Is there a financial fit? 

Run three financial scenarios – best case, average case (or best guess) and worst case. Shoot for the best case, but make sure your decision is based on the average case scenario. Also, make sure you can survive the worst case. If the house takes your poker chips, make sure you have the necessary cab fare home.

• Does the job match your personality? 

    What does the business owner do each day? Will you find that work     meaningful and satisfying? Will you be good at it? One of the most effective ways to answer these questions is to contact people you've worked with in the past, and ask for honest opinions. Past performance reviews can help, too.

• Will you fit in with the culture and environment? 

Go out and meet many of the people you will be potentially working with. If it's a franchise operation, meet the franchisor's leadership and support staff. If you are acquiring a business, talk to the employees, customers and vendors. Are these people you can build rock-solid relationships with, or are they going to suck out your life force through your eyeballs?

•  Is there a compelling value proposition?

 Make sure you have high belief and confidence in what you're selling. Does the product or service add more value than it costs? Does it have staying power in the marketplace, or will it be replaced by something new? For instance, Indian Online customers once loved the "ebay" shopping experience. Then Homeshop18 and mydeal came along and offered the same products at a more affordable cost through more convenient venues. Customers voted with their products that convenience was more valuable to them than shopping experience, which eventually led to the demise of hundreds of Online  stores.

•  Is this calling you to a higher purpose?

 I'v consulted for Sudha Ice Cream, which sells much more than ice cream. The business exists to provide "innovative ways to improve the quality of life locally, nationally and internationally." Google seeks to "organize the world's information and make it universally accessible and useful." Do most successful business people tap into their sense of purpose? No, but all the fulfilled ones do. You need to look into the future and ask what makes your feet hit the floor every morning.

Most of all, I encourage you think beyond the here and now when deciding whether to leap into a business venture. Think about your legacy. When the time comes to sell the business or retire, is this going to be something worth being remembered for?

Manish Kumar

Mansa Venture

Education Loan: How and How much..

Education loans have become a popular method of funding higher education in India with the cost of educational degrees going higher.. The spread of self-financing institutions (which has less to no funding from the government) for higher education in fields of engineering, medical and management which has higher fees than their government aided counterparts have encouraged the trend in India. Most large public sector and private sector banks offer educational loans.

Education loan includes courses fees, hostel charges, books and stationary costs. Few Banks also provide loan for vehicle (up to Rs.50, 000.) like State Bank of India.

Eligibility for Education Loan (In India)

1. Must be Indian citizen.
2. Maximum age is around 35.
3. The college, for which Loan required, must be a government or approved by Indian government.
4. Education loan is available only for Regular Courses, not for Distance Education.
5. Education loan is available only for Professional, Graduation or Post-Graduation Courses.

Papers to be Ready:

1. All certificates of previous education, Photographs, Address proof and ID proof.
2. Authority Letter / Loan Letter from College where candidate applying for the Admission.
3. If candidate is going for Foreign Education, then Passport and Visa.
4. If Education loan exceeds 5 Lakhs then candidate have to show Father’s or Guardian’s Income Certificate, last six months Salary Slip / Bank Statement or one can show Property papers.

Courses eligible for Education Loan:

RBI provides sets of Rules for the Education Loan in India which must be followed by the Government or Non-Government Banks. But some private Banks have their own Rules.

For Example:

State Bank of India (SBI) provides Education loan for Graduation, Post Graduation, PhD, Professional Courses, and Diploma etc in recommended colleges approved by AICTE. Whereas some private Banks provides Education Loan only for Professional Course which have some future aspects.

Guarantee:

As per RBI Rule, if Education Loan is under 4 Lakhs then there is no need for Guarantee in any Banks (Government or Private Banks).

For Education Loan more than 4 Lakhs, then Father, Guardian (which includes Mother, Older Brother, Father-in-law, Mother-in-law) become as Guarantor.

Banks keeps Property papers, Salary slip/ Bank statement or ITR as Education loan Guarantee.  

Repaying Education loan:

Every Bank or financial company have its own Rules. Mainly they start recollecting the loan after One year of course completion or after Six months of Employment, whichever comes first. Few Banks also uses the Scholarship given to the students in between the course period.

Education Loan Limit:

State Bank of India, Bharatiye State Bank, Punjab national Bank, State Bank of Hadryabad, State Bank of Bikaner, Indian Overseas Bank, City Bank, HDFC Bank, Karanataka Bank provides up to 10 lakhs for studying in India and for Aboard upto 20 lakhs.

Federal Bank provides 12.5 lakhs for India and 25 lakhs for Aboard.

Axix Bank, Oriental Bank of Commerce, Lakhmi Vilas Bank, Vijaya Bank, Bank of Maharashtra, Canara Bank, Dena Bank and Karoor Vasya Bank provides up to 7.5 lakhs for studying in India and up to 15 lakhs for Aboard.

Yes Bank and Ing Vasya Bank do not provide Education Loans.

Manish Kumar

Mansa "House of Business"

Effective time management

Learning to manage time will not bring you extra hours in a day but it will ultimately give you more time to spend on what you want to do. We spend endless hours at work trying to complete and deliver projects. We even tend to forget attending to the basic requirements in life like eating, leaving for home in time, etc. And at the end of it, we feel that there is never enough time for anything. Working like this for long does not only affect  personal life but can also take a toll on one's physical and mental health. Therefore, to take care of too much, it becomes important to plan time accordingly. The tips mentioned below will sure bring in help for managing time effectively.

·         Know your working style, strengths and motivators: Everybody has a preferred working style with respect to physical environment, level of interaction with others, level of responsibility etc. Similarly, there are strengths, weaknesses and motivators that are uniquely yours. Understanding these will help you in identifying your own unique working style; and a good understanding of your working style and what works for you in terms of environment, responsibilities etc helps you figure out the factors that make you more productive. When your productivity increases, the time taken to perform tasks goes down, thereby helping you effectively manage your time.

·         Eliminate time wasters: Try and figure out factors that contribute towards wastage of time in your work day. These factors could be internal such as tendency to procrastinate or unwillingness to take on difficult work or external like interruptions, distractions. Make a list of these factors and work on eliminating them from your daily work life. Reducing time wasters give you more time to finish your work.

·         Delegate: One of the major reasons for not being able to manage time is trying to do everything yourself. Try and trust co-workers and take help, if you think the workload is too much to handle. Delegate tasks to your subordinates and provide guidance to them to complete it. Delegating and sharing work does not only help you in saving time but also helps you in learning management basics.

·         Plan your work: Try using time management tools and techniques such as calendars, electronic planners, to-do lists, time-tables etc. Use the tool that you are most comfortable with and plan your work properly. Planning helps in setting time for everything and rings a bell when things are getting out of hand. This will help you in being better organised and staying on top of the work, instead of your work dominating you.

·         Create an action plan: Try and create an action plan to identify what are the things that you should control to ensure better time management. In your action plan, identify the specific time-management steps you will take and the strategies you will use to target your problem areas. Document your time management plan and try to stick to it. Take things slowly; follow the plan for a week and see if there is anything wrong with the way you have planned things. Keep improving upon the action plan and slowly, you will have that perfect plan that will help you become better at managing your time.

Analyse how you spend your time and determine where you can make changes. You obviously will take time in understanding and executing time management strategies. So, though we say that time once spent will not come back, try to exercise your learning and if you fail in doing what you wanted to, there is always tomorrow. Just focus on learning to manage your time wisely and see your productivity and happiness double in no time.

Manish Kumar

MANSA "House Of Business"

How to choose the right Engineering College for your rank ?(Karnataka)

As soon as you get your CET rank, most of the  you are in total dilemma and confusion over which college and branch to choose for your rank. If you are one of them, this post is just for YOU. The question arises – how to decide to choose a college when there are hundreds of engineering colleges in Karnataka.

• Will you get admission in good college or not?
• What will be the Cut off percentage of different colleges ?
• What are the different courses available in different colleges ?
• Which branch should I take ?
• Which college I will get for my rank ?

First things first, shortlist the colleges and the places that you like (keeping your rank in mind : having rank over 10k and expecting to get E&C in RVCE, that’s height of craziness). This is where the previous year cutoff ranks and college ranking list come in handy. You’ll get a very rough picture about which college and branch you can expect. You can talk to your elder brother,sister,cousin,relative or anybody who is doing engineering. That’s the best reliable source that you count upon.

Location : Ask yourself, do you mind moving to far places to do engineering. Those of you have stayed in hostel or as paying guest before, this shouldn’t be a problem at all. It’s a good thing opting for a college located in Bangalore (or even Mysore) because you’ll have good exposure there and bright career opportunities even if you by chance end up in a college that is not quite good. Besides, the weather is also good in B’lore and Mysore

 

Infrastructure and facilities : Infrastructure does NOT mean attractive buildings and gardens. Check whether the college has sufficient amount of infrastructure according to it’s intake capacity. It includes classrooms, administrative building, workshop, computer labs, various laboratories etc. You can include playgrounds too. A friend of mine(Federer fan) had got Mech @ PESIT and he was complaining that there was no lawn tennis court there. lol Visit the college campus and take a look around yourself. Check if it has good Library, Internet access, hostels, seminar halls, dispensary, student clubs, gym etc.

Faculty : Okay, here’s the truth. There’s no way to know how the teaching there will be unless you are in touch with a student who studies there. I believe engineering is all about self study. So don’t give a damn about how the faculty is. But, do look for colleges that have good teacher to student ratio and experienced teachers. How to identify experienced teachers ? Look at their hair ? Are they bald yet ? I was just kidding

Placements : I believe this is the most important factor of all. Consider you’ve completed 4 years of engineering. Now what ? How can you manage to get a job ? Check the placement record of the college in previous years branch wise as well as company wise. Suppose you join a college which has a very good placement record , it does not mean you get placed easily. It depends on your talent, personality and how your interview goes.

Extra curricular activities: “All work and no play make Jack a dull boy”. To survive in competitive environment and to have a good personality, extra curricular activities play a very important role. So have a look about extra activities provided by college like, annual fest, technical fest, sports function, students club, seminars and workshops, industrial training, social activities etc.

Parent’s Choice : I don’t want to give any comment here. Parents can guide you by their experience. But some times,students know more than their parents about the education field. It’s you who makes the final call and choose the college.

Autonomous or VTU ? Those of you who don’t know what an autonomous engineering college is, start here. In most of the autonomous colleges : they have their own updated and optimized syllabus(with no nonsense and irrelevant topics like VTU syllabus). They have their own grading system (sometimes it’s an advantage as well as disadvantage) and you get around 3 months holiday between even semesters !!! On the other hand, in VTU colleges, the syllabus and grading system is same throughout Karnataka and hence there’s a common exam for all colleges at the end of each semester. VTU question papers have choice : answer any five out of eight questions with each question coming from each individual units. So you can study 5 units throughly and become topper (highly not recommended idea). Besides, in VTU colleges, you get around one month holiday between even semesters Above all, VTU really sucks, students often curse VTU.

Do you really want to know how a college is ? Then ask someone who is in that college. They’ll be knowing the college better than any outsider.

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