Founder of Ford Motor Company, Henry Ford was an American entrepreneur. He is most famous for single handedly developing an automobile which every middle class American could afford. In the journey of turning his idea into a successful business, Henry Ford experienced many ups and downs. However, his success and triumph even after facing such difficulties taught us some really great lessons. Check out some incredible life lessons from Henry Ford which will keep you motivated and help you move forward in life.
Life lessons to learn from Henry Ford
1) Don’t be scared to take risk
Henry Ford is a creative genius who is famous for converting his idea into a successful business. If he would remain satisfied with the small company he built during his early days, he wouldn’t have become a business mogul in his lifetime. He was always eager to grow his business and continued investing in bigger factories which produced more products. Even though these investments were costly, Henry Ford took the risk and became one of the most successful businessmen of his time.
2) Instead of finding faults, find remedies
One of the greatest life lessons from Henry Ford was “Don’t find fault, find a remedy.” It is always easy to blame someone else for your mistake. It takes real courage to admit to your mistakes and even more courage to find a remedy for it. In order to taste success in life, it is always a wise idea to learn from your mistakes and find a solution for it.
3) Others’ advice is important
Henry Ford made a huge mistake when he chose to ignore the advice of his trusted advisors and also of his son. Many people warned him about other cars which were gaining popularity in the society. However, Henry Ford did not listen to their advice and did not adapt well to these changes. This resulted in Ford Motor Company being ranked at third place in the automobile industry instead of ranking first. Although the Company and Henry Ford did not lose any credibility, they would have enjoyed more success if Ford had listened to others’ advice and kept innovating new products.
4) Everyone is important
It is a common trend for business owners to cater their products to rich people. However, Henry Ford always tended to create products which could be used by everyone. After all, he created the first automobile which every middle class American could afford. He also raised the salary of every worker in his Company so they could afford the cars they were making.
Henry Ford is a true inspiration to everyone. If you think we missed any important life lessons by Henry Ford comment below and let us know.
How KhataBook Grew From Simple SMS App To Leading FinTech App In India
If you are an Indian citizen living in any of the urban cities of the Country, you might not have heard of this application until recently when the Indian Cricket Team Captain Mahendra Singh Dhoni, invested in a startup called KhataBook. The question that was on many minds when Dhoni invested in this startup was what is KhataBook doing that has made Dhoni, one of the most popular celebrities in India, invest in this finance technology. However in order to answer this question, we need to understand how KhataBook came into being and what it is today.
KhataBook was founded by Ravish Naresh, Dhanesh Kumar, Vaibhav Kalpe and Ashish Sonone in 2018. The idea for KhataBook however has been on the minds of the founders for a long time before 2018. It all began when Ravish Naresh along with his friends began a digital spending manager app called Kyte.ai in 2016. The app lets a user understand their spending patterns by making use of the transactional SMS alerts. The initial traction for Kyte was good but the growth was not reaching the scale the founders had in mind. After researching the user data they realized that most of their users are based out of metro cities. Upon digging deeper the data revealed that first time online users did not deal in digital transactions. They were still relying on traditional ‘khata,’ or ledger books. That is when the idea for KhataBook materialised for the Kyte team in 2018. ‘Khata’ simply stands for account in Hindi.
In 2018, the Kyte team decided to work on a simple cash management application called KhataBook on the premise that a real life ‘Khata’ can be replaced by a digital ‘Khata.’ The idea was to shift the focus of small time traders and businesses to move their accounts to digital platforms. The team also included Kyte’s SMS checking mechanism to track data and provide free SMS updates on a user’s customer transactions. This feature has ensured a three times faster return on credits for their users. The app has recorded $ 5 billion+ cash transactions by November 2018. What makes this app attractive is that it employs artificial intelligence to track SMS alerts for transactions and use that to keep a track of accounts and spending. With the internet penetration Reliance Jio offered, it was easier for KhataBook founders to target users in smaller cities and towns. KhataBook is unique in the finance technology sector and has no major competitors. However, OkCredit and Vyapaar app are the closest competition KhataBook has in the market currently.
Kyte is still an ongoing process for the founders of KhataBook, but KhataBook has managed to record 100x of Kyte’s users. KhataBook currently has 5.5 million active users per month and the startup aims to reach 20 million active users by the end of 2020.
Upon reaching a quick growth KhataBook got its first big publicity push when Dhoni invested an undisclosed amount in the startup and also became its brand ambassador. KhataBook is now being used in more than 5000 cities and the users range from kirana shops, merchants, recharge shops. The app currently supports eleven languages and even has users in Nepal, Pakistan and Bangladesh.
Types And Details About Corporate Loans
Guest post by Ashish Gupta
Corporate loans are loans that are taken for the purpose of business. There are many banks which provide corporate loans. However, the eligibility criteria and the upper limit for the sanction of such loans would differ. The loans are generally sanctioned for those businesses that have been in existence for at least 5 years and have been making profits for a period of at least 2 years before making such an application for the loan. The funds of the loan when sanctioned can be used for long term as well as short term business expenses.
Corporate loans can be either secured or unsecured loans. Secured corporate loans require collateral like business assets, for the sanction of the loan, and such collateral can be seized in case of non payment of principal or interest amount depending on the contract between the lender and the borrower. On the other hand, unsecured corporate loans are those that do not require any collateral as such. However, unsecured loans can be obtained only if the borrower has a good credit score.
Types of Corporate Loans
There are various types of corporate loans offered to be lent by financial institutions. Few of them are:
- Term loan is a loan that can be secured for the purposes of buying property for business, or for buying new equipment with better technological advancement.
- Loans against securities are those where the borrower can obtain a loan by pledging securities like mutual funds, bonds, insurance policies, and any other securities of similar nature.
- Letter of Credit Facility and Bank Guarantee is when the bank acts as a surety for transactions made by the concerned person for business purposes.
- Cash Credit Facility is wherein the borrower can avail up to 70% to 80% of the value of assets that he/she pledges for business needs.
- Overdraft Facility is an offer by the bank to debit your current account beyond the money that is present in there. Such a facility is generally provided according to the assets pledged by the borrower.
- Channel Financing helps the distributors in obtaining the funding required for buying new equipment, tools and other items.
- Working Capital GST Corporate loans help in attaining quick cash on the basis of the applicant’s GST returns and also eliminates some cumbersome paperwork.
- Drop-line overdraft facility is where the lender deposits certain money in a separate account for the borrower, from which the latter can utilise business expenses. The speciality of this kind of loan is that the borrower only needs to pay interest up to the amount of loan that has been used by him/her from the money deposited in the account.
The eligibility criteria for each financial or lending institution may vary according to their policies and rules. However, few of the basic requirements that are necessitated by almost all lending institutions for availing a corporate loan are as follows:
- AGE: The applicant must at least be 21 years old, but less than 65 years.
- INCOME: The expected annual income of the applicant is generally Rs.1, 00, 00,000. However, some financial institutions may provide loans for a slightly lower income level as well.
- INCOME TAX RETURN: The income tax return for at least one year must be filed before applying for such a loan. Some lenders may even expect the applicant to have filed income tax returns for two years before applying for the loan.
- PROFIT: Most lenders require that the business must have made profits for at least 2 years before submitting the application for a corporate loan.
- CREDIT RATING: The applicant must have good credit ratings and credit score before making an application for a corporate loan, especially for those who wish to obtain unsecured loans.
- STABILITY: The history of the business is also looked into by financial institutions to know the stability and growth of the business.
The documents required may also be subjective depending upon the lender. However, few documents are fundamental that all lending institutions would need when an application for a corporate loan is submitted. They are:
- Permanent Account Number card, or the PAN card
- Identity proof
- Address proof
- Bank Statements for the past 6 months of one years
- Continuance proof of the business
- The latest Income Tax Returns which have been filed
- Other Documents like the certified copies of Memorandum of Association and Articles of Association of the company, or a declaration of sole proprietorship or partnership deed.
Things to consider before applying for a corporate loan
- CREDIT SCORE: The applicant must check his/her credit score before applying for such a loan, as credit scores would drastically affect the availability of a loan.
- INTEREST RATE: It is important to analyse the interest rates of each bank to ensure that more of the profits in business do not end up getting spent for interests.
- TENURE: The tenure of the loan is another important aspect that needs to be considered and analysed for the benefit of the applicant’s business. If the applicant knows that more profits can be made quickly, then he/she must opt for a shorter term of repayment of loan. On the other hand, if the applicant is aware that the business might not make profits immediately, then it is better to opt for a long-term loan.
- FILING INCOME TAX RETURNS: The applicant must ensure that the ITR has been filed for at least 1 or 2 years before applying for a corporate loan.
- OTHER ALTERNATIVES: The applicant must consider other feasible alternatives than loans while in need of funds for business. For instance, if the business is a registered company, then alternatives such as shares, and debentures must also be considered.
Term of repayment for corporate loans
The term for repaying corporate loans depends on the contract between the lender and the borrower, and the kind of loan that has been secured by the borrower. The repayment period of some corporate loans may be about 12-48 months, or it can even extend up to 5 years.
How The Events Industry Is Impacted By The COVID-19 Pandemic
The COVID-19 pandemic has undoubtedly changed the way businesses will operate in the future once the world recovers from the aftermath of the virus. The demand across various sectors went haywire and in some cases has completely dried up, which means these are the industries which are the worst affected. These are industries which rely on mass gatherings of people and in the current scenario governments across the world are cracking down heavily on large gatherings. Aviation, Tourism, Movies, Malls, Hospitality, Transportation, sports and events are the worst hit amongst all the sectors. Events industry in particular falls under the bracket of Meetings-Incentives-Conventions-Exhibitions (MICE) and is a Trillion dollar industry worldwide. The COVID-19 pandemic is responsible for impacting almost 25 millions jobs across the world. This is just the tip of the iceberg and the actual impact could be much higher when we consider indirect jobs and sporting events.
Multiple large scale events across the globe have been cancelled or deferred until further notice. The cancellations began in February when the world is waking up to the fact that the virus is highly contagious and is spreading across borders with ease. The first major cancellation was the Mobile World Congress 2020 edition, which takes place in Barcelona and is an event to exhibit mobile communication technologies. This was just a premise for what was to follow in the coming months.
In a survey done by Events and Entertainment Management Association (EEMA) and which was shared with Ernst & Young the events and exhibitions sector in India is expected to take a one trillion rupees hit. According to the report, in India alone it is estimated that 60 million people are unemployed and another 10 million directly affected by the crisis.
Business events like Annual General Meets (AGM,) corporate retreats, product launches, partner meets, conferences and seminars have been cancelled and have instead shifted online to Zoom, Google Meets, Skype and YouTube. The best example would be the much anticipated OnePlus product launch of their OnePlus 8 series of smartphones. The event was live telecasted on YouTube and the smartphone is now available for purchasing on e-commerce platform Amazon.
Exhibitions and trade fairs have been cancelled all over the world. One of the biggest trade fairs which is the Dubai Expo 2020, has cancelled in light of the pandemic. Some of the largest sporting events in the world like Tokyo Olympics, Football’s Premier League, National Basketball Association (NBA) and the much anticipated Indian Premier League in India stands cancelled at the moment.
Corporates have been using video conference facilities for conducting internal meetings already, mostly with the intention of trying to run the operations effectively with due consideration to the ‘work from home’ initiative. Video conferencing solutions by Go-to-Webinar, Kaltura and Zoom have seen an unprecedented surge in demand. In India Event and Entertainment Management Association (EEMA) have urged the government to extend processes such as tax refunds, loan facilities for the Ministry of Micro, Small and Medium Enterprises (MSME) sector and artistes to help reduce the negative impact on the livelihood of people involved in the entertainment and event space. The Indian Government has responded with initiatives for the MSME sector with its Atma Nirbhar Package.
At present, technology applications such as video-conferences, webinars, virtual (events, meetings) and others are playing their individual parts to try and keep the operations running, especially for the corporate segment. In the future however, we can see a hybrid approach to hosting events by integrating both virtual and physical components. However, we will have a better understanding once the industry resumes its operations in three to four months down the line.
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