Starting a business requires investment. The level of investment depends on several factors such as the type of business, location, quality of the workforce, and the kind of machines and equipment you want to purchase. Before starting a business, you should also do a cost-benefit analysis.
Before going into the details of low investment business ideas, let us understand the kind of investments you need to do to start a business:
Most of the costs associated with starting a business can be divided into three parts:
One time Fixed Costs (Initial investment) –
This is usually a one-time cost. It involves the cost associated with following items:
- Computers or mobiles
- Office/Shop Furniture, Interior Designing
- Equipment such as refrigerators, ACs, or machineries to manufacture (or prepare) goods or provide services
- Power backups (if you plan to use your inverter or GenSets)
- Website Development or Technology Development Cost
- Other Items that are required for day to day business operations like kitchen utensils, etc.
- Brokerage paid for renting an office/shop
- Other fixed costs
Recurring Costs – These costs are incurred on a regular basis. There are two types of recurring expenses – Fixed Monthly or Annual costs.
These are further divided into:
- Office Space or Shop Rent
- Electricity Bill
- The Internet and Other Utility bills
- Manpower Cost
- Website domain and hosting costs (Annual)
- Technology Support and maintenance costs
Variable recurring costs
The expenses associated with the cost of goods sold (Any cost that is incurred to sell your product or service). Broadly, it includes following:
- Cost of Raw Material (if you sell products)
- Contractors (If you sell services and outsource a part of the services you deliver)
Other Major Costs
- Business Administrative Expenses
- Stationary and Other Supplies
- Sales and Marketing
Every new business requires almost a year or two to generate profits. Thus, while calculating investments, you must calculate the cost involved in doing business for at least one year. If your business is not generating enough cash for a year or two, you would not be able to meet your personal as well as business expenses. Therefore, to run the business smoothly, you need to minimize recurring costs, until your firm becomes profitable. Even if your fixed one-time costs are high, you can sustain the business for a long duration, if the recurring costs are low. I have seen many new businesses with high potential shutting down within a year of their establishment. This happens mainly due to unmanageable recurring costs like high rentals or staff salaries.
The chances of success of a new business become much greater when the recurring costs reduce.
With this, here is a list of some low investment business ideas that you can consider for your new venture:
If you have expertise in a field, you can provide services in that field and charge for the same. Some of the most demanded services include Report Preparation, Internet Research, Content Writing, Taxation and Accounting, Digital Marketing, Business Consulting, Training, Job Placement, Website Designing, Programming, Graphic and Multimedia, Public Relations, Market Research, and other services.
Initially, you can operate independently from your residence. Once you have a client base, you can hire professionals and move to a professional office to expand your business.
If you are starting on your own, then there is no investment apart from a computer, mobile phone, and internet expenses.
However, if you want to hire people, then you need to consider the following costs:
Advance deposits for office rent, brokerage charges, computers, ACs, Office Furniture, and Interior designing, with approximate costs of around $3000-$10,000 depending on the location and number of people you want to hire.
Recurring monthly costs – Office rent and salaries constitute around 50-60% of all the costs per month.
Sales & Marketing – You need to invest in sales and marketing to acquire clients in the long run.
It is easy to start a services business. However, the expansion is equally difficult.
You can start a blog in any niche and promote it on social media. If you have good research and social media skills, you can make it big in two to three years. You must have a side income or a full-time job to support your financial requirements for the first two to three years.
Initial Cost – $300 (for Domain, Hosting, a premium WordPress theme and developer’s fee)
Recurring costs – $50 per annum (In domain and hosting renewals)
Blog promotion – $200-300 per month
There is no limit on how much you can spend to promote a blog. However, avoid paid promotions in the initial few months of blogging. First, try to build a community organically and then use paid promotions to reach more people.
You can open play schools in residential areas. To begin, you need to have access to a residential space with a minimum carpet area of 750 sqft. It requires one-time investment in building the right ambience and creating education material for children. You also have the option of starting from scratch or taking a franchisee of a reputed brand. Today, many brands are scaling their business aggressively. Thus, you can easily get a Franchise of a well-known brand. In the case of a franchisee, the brands will support you in starting the firm. The chances of success may be higher, but you need to share a part of your revenue with the parent brand.
It makes a great business sense to invest in pre-schools as a one-time investment since it can fetch you a high return over a long period. It is also easy to scale.
Before you make up your mind to start a play school, remember that it requires your undivided attention especially for the safety of the children. It is a lucrative business that comes with a great responsibility.
Initial Investment – $5000 – 10,000
The monthly rental of premises and staff costs constitute 90% of the total recurring expenses. That means you have no regular expenses other than salary and rents. Since it caters to the local market, below-the-line marketing strategy (pamphlets, newspaper inserts, etc.) will be enough to promote the brand. Also, a differentiated building with prominently visible banners do a great work of promotion of the pre-schools. Thus, sales and marketing expenses are relatively less.
Food trucks are the professional versions of “thellas” that we see on the street. They provide quality food at affordable rates as they don’t have to pay steep rentals. They also need minimal staffing to manage the stall. Since a Food Truck is a more of a western concept and looks fancier, safe and hygienic – owning them is a matter of prestige. The best part of food trucks is that you can change their location as per your requirements. Thus, you can also use it in the front of a school in the afternoon and on a busy street in the evening. It provides a high return on investment. It is also easier to scale a food truck business than a restaurant.
Initial Fixed Investment – $5000-10,000
Recurring Costs – Staff and Raw material costs plus some “haftas” and “kharcha paani” to the local policemen based on your relationship with them.
It requires a high initial investment in staff, machinery, and business promotion. You may also need to invest in pick and drop facility to attract more customers. Since such kinds of services are high in demand, you will find plenty of clients and can recover your costs quickly.
Initial Investment – $7,000-$10,000
Recurring Costs – Staff’s salary and rental of workshops forms a significant part of the cost. Initially, you also need to invest significantly in sales and marketing. Over time, the marketing costs decrease as more customers get to know about your excellent services.
House Cleaning Services
No one wants to waste their weekend in cleaning their house or office. You can open a business in a house cleaning service and start making money from day one. You can get customers via phone, website, or listing yourself on local classified sites and popular marketplaces like Justdial, Haptik, Urbanclap, etc.
Initial Investment – Nil to $3000
Recurring costs – $200-1000 per month
Tours and Travel
Depending on the level of investment, you can start many types of businesses in tours and travel industry. The industry is expected to grow at a fast pace in future, thanks to Facebook and Instagram.
You can open a travel agency, become an affiliate partner of travel portals (like MakeMyTrip or Yatra) or open a themed stay business in a tourist location. You can also become a tourist guide if you have the time and knowledge of the heritage sites.
If you own a property, you can invest in its interior design to make it tourist friendly and list the property on Airbnb. It will fetch a significantly higher return than a hotel or residential property. The best of this is, your property need not be located in commercial areas. A 1000sqft flat can easily earn anything between $1000-2000 per month or even more depending on location and interior design.
Initial Investment – Not fixed. You can start from zero and make a fortune if you master the art of acquiring customers in tours and travel.
Fitness centres such as Gyms and Yoga training are in high demand across the country. To open a gym, you need to invest heavily in the equipment in the beginning. After that, you simply need to maintain the machines and earn a recurring income. To open a Yoga centre, you should either be an expert at it or need to hire a Yoga trainer. It requires less investment as compared to Gym as no equipment items are required.
Average Initial Investment to open a Gym- $5,000 – $15,000
Recurring costs – Rental and maintenance
Ice cream will never go out of fashion and so is the business of ice cream. It takes a tiny space and minimal staffing to start an ice cream parlour. You can start with a particular theme of ice cream to differentiate your business from the rest. Although you can start an ice cream shop anywhere, the best place for the same is the areas nearby schools, colleges, cinema halls, or in the malls.
Initial Investment – $1000-3000 (Rental, small ice cream equipment, and a refrigerator)
Recurring costs – Shop rental and cost of ice cream
Its seasonal nature of demand may require you to sell other items, especially during winters.
You hate trash and waste, but once you know the margins in the business of waste management, you won’t like any other business.
You can expect a high return immediately after starting the business. Also, you will never face a lack of customers and always get full support from the local government authorities. Plus, you will get big CSR funds from corporates if you are good in networking. This is the business in which you will either win or win in a big way. There is no loss. You simply need to figure out, where to start.
As an entrepreneur, you need not invest in technology or Research & Development for recycling of the waste. Many companies are already doing it. You can simply become a small part of the entire value chain and then extend your business horizontally to make more profits. For example, there are companies (although small in number) which tie up with corporates and collect garbage paper and send it to a recycling company. Thus, they is a link between a backend and customers. Similarly, you will find a lot of opportunities to make money in the entire value chain of waste management.
Investment – This business requires creativity and innovation more than money. You can become a part of the value chain without investing anything. At the same time, you can also invent a technology that recycles a type of waste efficiently. For this, you may need to invest hundreds of thousands of dollars (if not millions).
Are you looking for an innovative business idea. Go through this list:
15 Unique and Profitable Business Ideas for Better India
The investment required to do a business depends on several factors. However, there are some golden rules that apply to every type of business. Avoid hiring full-time employees unless it is a must to run your business. If at all you need to hire someone, try part-time contractors first. Don’t pay a high rental for a backend office. In the beginning, it is viable to rent an office in a remote area to save on costs. Finally, you should learn all activities of business so that in the case of urgency you can fill the gap. Low investment business ideas become successful only when you start the business with a frugal mentality and don’t overspend to impress your girlfriend, boyfriend, neighbours, or employees.
Do you want to share a business idea that requires low investments? Please share it through comments, and I will update this list. Also, share your opinion and feedback through comments. Subscribe to the newsletter so that you never miss a story.
To increase sales immediately or in a short timeframe, you need to reach out to more people who are interested in buying your product. Until people know about your company, they won’t buy your products or services. Thus, you need to improve your brand’s visibility among your target audiences immediately.
Here is how you can find the relevant people and target them through ads:
Register your products and services on online marketplaces that operate in your niche. Most of these marketplaces thrive on their massive marketing prowess and brand name. They also have a fraud detection and prevention policy that protects both, buyers as well sellers. Therefore, shoppers prefer to purchase items from established online marketplaces.
Competition from similar vendors and lack of ratings and reviews make it hard for new sellers to make a mark. However, with an excellent product description and some promotion, you will soon see the sales going up. The best part of online marketplaces is that most of the serious buyers visit their platform and therefore, your promotion becomes highly targeted. Also, you will have to pay a commission on each sale which is far better than paying for clicks or impressions.
Tip – Register yourself or the firm with a reputed platform and take their best membership. Promote your products aggressively in the marketplace. Try to get first few ratings as soon as possible.
Targeted Email Campaigns
Email marketing is still very efficient when it comes to generating leads or increasing sales immediately. You just need to find out the high-quality email database of your target audience. Connect with email marketing service providers who have the database of your target audience and also have explicit permission from the users to send promotional emails.
For example, one of my clients runs a post-graduate certificate program that is mostly preferred by fresh engineering graduates. For a consulting assignment, I suggested them the name of few job portals which cater specifically to engineering graduates and also have an email marketing platform for companies. We ran the campaign, and it was a huge success. Three years on, the company is still using the email marketing services of the job portals. The long association itself is an indicator of the success of the campaign. As of now, I have suggested this technique to many clients and most of them have found it useful.
Tip – Use email marketing if you can have access to a precise database. Email marketing in not sustainable if you target a broad range of users. Also, don’t depend on service providers to write campaign copy or design creatives or landing pages. Get all of these done from your end and to your satisfaction. Only use their platform to send emails.
Affiliate Marketing is a performance based marketing method in which the advertisers pay for per action. You can decide to pay for each lead or the sale depending on the nature of your products or services. Affiliate marketing is the source of customers for a majority of e-commerce firms. Usually, affiliate marketing campaigns take 3-6 months to start delivering returns. Also, you either have to spend significant time or hire someone who can handle the affiliate marketing for your business. It requires full attention from an experienced marketer to hire, train and encourage experienced affiliate marketers to promote your business.
LinkedIn Ads are expensive and not appropriate for all kind of projects. However, if your products appeal to a section of working professionals, LinkedIn Ads can be very useful. I got my first two clients from LinkedIn. While the first client turned out to be a scam artist, the second client was hugely profitable. When I created my company page on LinkedIn, I received an advertising coupon worth $50 from them. I added $50 from my end and ran a campaign for $100. I received three leads out of which two got converted. As I pointed out, one of them was a scammer (who got the work done and never paid; he was in the business of defrauding new entrepreneurs). The other client worked with us for quite long, and they also gave us few referrals. As of today, we have generated a business of worth more than $20,000 from them as well as their referrals. You may call it luck, but we got an excellent ROI, to say the least. I have seen similar success for my B2B clients.
LinkedIn has immense potential. If you are operating in B2B segment and have a significant budget, you must try LinkedIn ads.
Google Adwords is still my favorite advertising program to generate leads. Over time, it has become complex and expensive. Still, the ROI on Google Adwords is much better than other advertising programs. Most of the businesses make a mistake in hiring a professional to handle Google Adwords campaigns. Or pay a small fee for their services. AdWords requires a lot of attention from advertisers and campaign managers to deliver results. Otherwise, you will end up paying for irrelevant clicks or higher cost per click rates. Thus, always hire an experienced professional or an agency who can spend significant time on your AdWords campaigns.
Well, I am not sure if I should recommend Facebook Ads. Many advertisers have claimed a huge response from Facebook while many others have made complaints about fraud in Facebook advertising system. Many of my clients say that they receive good responses from Facebook ads, but conversion is very low. In many cases, people have entered incorrect email ids or phone numbers. Also, in some cases, people claim that they never filled any form or provided their contact details. After working on Facebook ads for four years, I recommend it with a pinch of salt. Usually, Real Estate, e-commerce or similar firms see a good response from Facebook. Facebook ads are also good for Mobile App downloads.
Disclaimer – I use Facebook ads to promote my blogs. However, my aim of the promotion is to improve readership and not leads. I will write a detailed blog post on Facebook Advertising later.
For me, LinkedIn and Online marketplaces have worked wonderfully to increase sales. A majority of my clients are also satisfied with the responses they have got from Google AdWords and email marketing. I have planned to use Google AdWords and Affiliate Marketing extensively for my business in 2017. I will keep you posted about the ROI as well as few tricks to save money on Ads while generating a better return. Do subscribe to my newsletter to stay in touch and get quick tips on digital marketing.
If you have tried any other online marketing techniques to generate sales immediately or in the short term, please share your experiences through comments.
“Lack of direction, not lack of time, is the problem. We all have twenty-four hours in a day.”
Focus plays a critical role in the success of any individual or business. No startup would have ever become a giant company without focussing on their most valuable product or service. If you are planning to start a business, focus on one thing in which you are an authority or intend to become an authority. If you are already running a business and want to scale it further, focus on the core competency. And get rid of cosmetic products which add no or insignificant value to the revenue.
Focus helps companies in the following ways:
Focus boosts your expertise in a particular area. In the era of stiff competition, trust is the main differentiator for businesses. You can’t win the trust of your customers until you are an expert in what you do. Most of the successful companies first focus on one product or service to scale their operations and build a brand and then grow their business through mergers and acquisitions. Google wouldn’t have become what is it today if they would have integrated features of YouTube, Facebook, and Gmail into a single product. Accenture would not have emerged as a large consulting firm, had they started selling project management software.
Any product or service has enough demand to make your business big. Scaling a business with a single product or service is far easier than a company that has a wide gamut of goods. Service providers need to understand the concept of scaling their business before launching just another service. If you focus on just one service, you can find or train employees quickly to increase the bandwidth.
If you understand something better than your competitors do, you can create multiple pricing layers. For an expert advice or value added services, you can charge a premium price. The cost of production will also decline as you scale your business and thus overall profit will increase.
Your customers will be ready to pay a premium price for the expertise that you bring to the table. Therefore, your profitability will be higher than the competitors in your particular niche.
Focus on a particular niche and do it better than others until you want to be a mediocre company. There is nothing bad in being average as long as you understand that the mediocre businesses have a limited scope of growth. In difficult times, they are the first ones to shut their shop. The traditional startups which provide services face a lot of challenges in scaling their business. Until they are small and have few people, they tend to provide many unrelated services to their clients. However, once they try to scale their operations, things tend to become unmanageable. If you are facing a similar challenge in scaling your business, then try to focus on one service that is generating a significant chunk of the revenue. Once you set a direction for your business, you will see an increase in income and profit over time.
“Never depend on a single income. Make investments to create a second source.”
This quote from Warren Buffet highlights the importance of creating a second source of income. A secondary source of income boosts your confidence, on the job as well as outside of it. Financial security is one of the reasons why many people compromise on their dreams and never follow their passions. Multiple sources of income mitigate the financial risks. It also empowers people to exercise their creative freedom and take calculated risks to achieve their life goals.
Making money on the side with a full-time job may be hard but not impossible. It takes some time, initial investment and patience.
Here are few ways that can help you generate a decent extra income without quitting your full-time job.
If you don’t know about the Google AdSense yet, it is an advertising exchange service by Google that helps you monetize your web properties such as websites, blogs, YouTube videos, etc. If you know about Google AdSense, you may have heard that it generates very little income and is no longer profitable today. Even though it creates peanuts, I recommend starters to try it out. In the long run, it provides an excellent ROI without eating your time. In 2013, I wrote a blog on the topic “careers after graduation” and applied AdSense. After that, I never looked at the blog. At the time of writing this blog, I have earned a total of around $850. With some minor tweaks, the earnings are expected to increase to around $100 per month (currently it is $50 per month). With an investment of around $40, if I can earn $1200 per year and that too without doing anything, I don’t think it is a bad investment at all. To generate an equivalent rental income from real estate, you need to purchase a flat worth $40,000.
Google Adsense Earnings Screenshot
$40 per annum ($10 for domain name and $30 for a basic hosting plan)
1st month – 8-10 hours (Deciding a name, registering a domain, purchasing hosting and creating the website)
2nd to 6th month – 6-8 hours per month (In research and curating content, or putting relevant data on site if you are not comfortable in writing)
6th month onwards – Nil (Although you may give as much time as possible, the content would be sufficient to become a base for generating consistent income)
First Six Months – Nil (A new site must be at least six months old to get approved for AdSense)
First 6-12 months – $10-15 per month (This is the minimum. It could be much more if your topic is unique or content becomes viral or is of high quality).
12-24 Months – $25-30 per month
24-36 Months – $40-60 per Month
36 Months onwards – $100+ (If you invest 4-6 hours a month in keeping the content updated).
These estimates are based on the basic minimum investment and ordinary work. If you can write excellent content which becomes viral on social media or serves a niche audience, the AdSense income could be much more than what is estimated here. Many bloggers earn $1+ million from AdSense based on their traffic and target audience. Also, a site that caters to US audience will generate significantly higher AdSense income than a site that targets emerging countries such as India. I will post a detailed blog on Google AdSense later.
Create a Responsive Website in Six Easy Steps
By working as a freelancer, you can start generating an immediate income. To start, you need to decide on a niche service that you can provide. If you can acquire customers regularly, the freelance income can surpass your full-time salary within a year or so. The freelance income can eventually convince you to quit your job and start your venture. Since freelancing requires active involvement and finding regular clients, you need to devote sufficient time on a regular basis. Therefore, it is recommended to those who can consistently work hard to provide quality services in addition to the full-time job.
Everyone can do freelancing without initial investment or training!
Nil-$50 per month
At least 2-3 hours per day (maybe more on weekends in finding clients)
For first six months to one year – $300-500 per month (depending on the time spent in client acquisition and working)
1-3 years – $500-1500 per month
Beyond three years, your freelance income depends on how much time you are devoting, the quality of client base and business acumen. Many freelancers earn even $10,000+ per month and more. It entirely depends on the direction you provide to your freelancing business.
How to Maximize Your Income as a Freelancer?
Affiliate marketing can be little tricky for beginners and suggested for those who have some working knowledge of digital marketing. In affiliate marketing, you promote others’ products and services and earn a commission on every referral or sale. It is one of the best ways to build passive wealth. For example, I bought a mobile phone on Amazon, and I liked it very much. I can post a review of the same on my blog and recommend it to my friends or readers. If anyone is purchasing the mobile or other items on Amazon using my referral links, then I will earn a commission. Most e-commerce firms use this technique to increase their revenue. All coupon sites use affiliate marketing on the back-end to generate revenue.
$200-500 per month (Website, hosting, content curation and promotion)
At least 4-6 hours a day (More if you want to start generating revenue soon)
Due to stiff competition, you may take almost six months to generate your first income through affiliate marketing. However, once you start making money, there is no looking back. Successful affiliate marketers make $30+ million per annum of revenue with a team of just 2-3 full-time employees and some freelancers.
Amazon Affiliate Program Screenshot
Selling Digital Products
If you are a writer, cook, a professional or an expert in a particular field, you can write ebooks and sell them on Amazon or several other marketplaces. If writing is not your forte, you can hire a writer to put your expertise into the words. The online marketplaces such as Amazon and Flipkart promote your products and charge a fixed percentage of revenue as commission on each sale. Many professionals have become millionaires by writing and selling ebooks and other digital goods or services. Apart from ebooks, you can also sell video tutorials, research reports, academic assignments, etc. to generate consistent income. If you are a graphic designer or photographer, you can register on ShutterStock, iStock or Graphic River to sell your products.
Fix Investment – $100-1000 (Depending on your writing or oratory skills)
Recurring Investment – $50-100 per month to promote products
Initial – 100-150+ hours (Depending on the product)
Recurring – 2-3 hours per day to promote products on various forums
Once buyers start rating your book positively online, you have to sit back and enjoy the fruits of your hard work.
First six months – 5-10 sale (The revenue will depend on the price of each unit of the product)
Afterwards – 2-5 sale every month if the product is resonating with its target audience.
The sale should get double every 2-3 years and so will be the income.
Note: These figures are for new sellers. It is based on my discussion with some successful sellers who have sold $1million worth of digital goods or services. However, the actual figures may vary. If you are a well-known personality, you may be able to sell a large number of books within a short span of time. It also depends on the quality of products, extent of promotion and the niche. Over 50% of the new books on Amazon have not seen a single sale in the first six months of publishing. Thus, you need to make your product outstanding and promote it extensively to make it a bestseller.
Become a Seller on E-commerce Marketplaces
Not only digital goods but you can sell almost anything without owning the product. For example, you can sell mobile phones without having an inventory of the same, thanks to the booming e-commerce sector. You can register yourself as a seller on online marketplaces such as Amazon, Flipkart, or Snapdeal, etc. and create product listings. For the shipment of goods, you can tie-up with a local mobile phone vendor. You can work on a revenue sharing model with the supplier.
Many off-line retailers have no time or understanding of online channel. Thus, they can give you a good discount as well as a great commission for selling their products in bulk.
Fix – $10-100 (For creating product listings, images, or deposits, if any)
Recurring – $200+ per month (For SEO and promotion of product listings)
2-4 hours depending on your experience in digital marketing and the knowledge of the product
The return on investment depends on the category of products and the margin. It may take almost 3-6 months to generate first few sales. However, once you get first 10-15 ratings, then things become quite simple. After a year or so, you will see a sudden jump in the sales and revenue.
Do you love teaching? If yes, then this is the right time to convert your passion into a full-fledged business. Gone are the days when you needed to rent a property in a prime location and spend a lot to make it upmarket to start a premium educational center. Today, you can launch a coaching institute or an education center with just a computer and a good internet connection. Companies like Adobe and Cisco WebEx provide inexpensive tools and the infrastructure which can be used to teach hundreds or thousands of students online. You can also record the live lecture videos to sell it later as a product. If teaching is your first love, then start exploring this option today.
Fix cost – $0- 500 (On Educational material, content, etc. You can save this money by doing everything yourself)
Recurring – $50-100 per month + a fee depending on the number of students. (Cost of the education infrastructure provided by the companies)
You can start with 3-4 hours per day and increase it later based on enrolment
Based on your expertise, reputation, years of experience and niche you can make around $1500 per month easily with a year or two after launching the course. There is no limit to the maximum amount as it entirely depends on the direction you give to your business.
Adobe eLearning Solutions
If you are planning to quit your job and start a business on full-time basis. Read following article to know more about low investment business ideas:
Low Investment Business Ideas
Many other types of work can be done to build a great source of income. I will keep adding them as and when I try something new myself or any of our clients do it (with their due permission). One thing is critical for all kinds of businesses – Working online requires your commitment and time more than the money. You need to take a horizon of at least one to three years to make your business successful. However, the sooner you start the better it is. So don’t wait for a perfect date to start. If you want to build multiple sources of income, then right time is “now.” I wish you all the luck.
Do you need any help, let me know through comments!
To build a business, you need two things: Labour and Capital.
Entrepreneurs usually face scarcity of both. And, at the same time, they need to get things done to launch their business successfully. Fortunately, many tools and websites are available in the market that will fit your budget and help you in several ways. You can also use these tools to provide complementary services to your clients.
List of tools for entrepreneurs and small businesses
Fiverr – This is one the most powerful sites I have come across. You can get almost anything done at just $5. For example logos, whiteboard explainer videos, articles, mailers, business plans, Mobile App reviews, etc. When I started my business, I was not aware of this site. So I ended up paying hundreds of dollars for services that were available for just $5 on Fiverr. Visit this site to know more, and I am sure, you will definitely buy at least one item for your business.
WordPress – There is nothing better than WordPress if you want to develop a robust website for your business. You can develop basic sites for free. However, to give a professional look and feel, and enhanced functionality, you may need to purchase a premium theme which is discussed next.
Elegant Themes – I hired five professional web developers and wasted thousands of dollars before using Divi Theme by Elegant Themes. At a fraction of the cost, I was able to develop many awesome sites with the help of this theme. If you want an excellent corporate website for your new business, Elegant Themes will serve the purpose.
Grammarly – It is a very good proofreading software. With the help of this tool, you can write professional blogs, website content, and highly effective emails without having a fear of making a stupid spelling and grammatical errors. I always check my articles on Grammarly before posting them on this blog.
iStock – You don’t need to hire a professional graphic designer to design social media or digital ad campaign creatives. If you require extensive usage of images and graphics, subscribe to their monthly membership. Once you start using iStock, you will hardly feel the need for professional designers for daily graphic requirements. All the images used on this blog are purchased from iStock.
PhotoScape – PhotoScape makes professional image editing super easy. It has an intuitive interface and does a fantastic job. The tool has free as well as premium versions. I use the free version of the software which has sufficient features.
Copyscape – Plagiarized content can be extremely harmful to your site. If you outsource your content requirements, then use Copyscape to check the plagiarism. This tool checks if any portion of content is copied from another site and tell you the sources from where the content is copied.
Whenever I try a new tool and find it useful, I will add them here. I recommend only those tools that I have used and liked personally.
If you know great tools, websites, or applications that solve pain points of entrepreneurs, please suggest them through comments, and I will include the same in the list after a quick trial.
The Content marketing strategy template is useful for every business. It helps in streamlining the content marketing efforts. An excellent content strategy template enables you to stay focused on things that matter the most. Ideas and thoughts have no limits or boundaries. You need to provide a right direction to your mind in order to get meaningful things done. This is what a sound strategy does to your business.
Any standard content marketing strategy has six main elements:
- Business Analysis
- Objective and Goals
- Strategy and Planning
- Result Measurement and Optimization
I have used a simplified version of the strategy template that I developed for SixPL (for this site itself) to explain the fundamental elements of the template. You can customize it as per your specific business requirements.
1. Timeline – Six Months
The timeline is crucial. Content marketing is effective only in the medium to long term. Therefore, you should give at least six months to see if your content marketing strategy delivers the desired results. To generate immediate results, you may use paid advertising such Google Adwords or Social media ads.
2. Business Analysis
We are into digital marketing. Most of our revenue comes from providing services like content development, SEO, SMO, Email marketing, Affiliate marketing, and PPC Advertising.
Would-be entrepreneurs, entrepreneurs, CEOs and Directors of MSMEs, and individuals who wish to learn digital marketing or want to make money online legitimately.
It is important to note that our services are not industry or location specific. We have served a diverse range of customers from across the world. Thus, we have not considered the country or industry of our target audience. However, these are two critical parameters that should not be ignored while defining the target audience.
To make your content marketing strategy successful, define a precise target audience.
3. Objectives and Goals
In this section, you need to answer: “why are you developing a content marketing strategy for your business? What do you aim to achieve by doing the activities?”
At SixPL, the primary objective of content marketing strategy is to drive readership to our content.
This is the measurable outcome that you intend to accomplish at the end of the timeframe. You need to set realistic goals. Otherwise, the entire exercise will go in vain.
For SixPL, we have set following goals:
|1||Number of visitors (Sessions)||75 visitors per day||300 visitors per day
|2||Number of Email Subscribers||1000||23
|3||Facebook Page Likes||10000||400
|5||LinkedIn Personal Connections||5000||3000
|6||LinkedIn Company Page Followers||2000||725
It is important to understand how to arrive at a particular number while working on goals. In my view and experience, above numbers are the minimum that we should achieve in order to justify the investment in content marketing. For example, in 2016, we saw an average of 75 visitors per day. In the first half of 2017, we want this figure to reach at an average of 300 visitors per day. Same goes, with other goals.
I will also revise these goals on a monthly basis if required so that we adapt to the prevailing scenario. However, we will notify the same to our readers and mention the reasons for revising the goals to maintain the transparency.
It is noteworthy that, although we provide content marketing services to our clients, we never did that for ourselves. The main reason was work overload and lack of bandwidth. We were so busy providing excellent services to our clients (and to earn money) that we completely ignored self-marketing. However, since we want to move to the next level of business, we can no longer afford to ignore our own branding.
We have not included the number of leads in our objective or goals, as we have undertaken this activity for branding and not for the lead generation. However, we do expect to generate some leads, and we will keep you posted on this. At present, we have a separate lead generation strategy, which I will discuss in another blog.
4. Strategy and Planning
Develop a strategy keeping your target audience in mind. Remember that through content marketing; you should aim to bring a positive change to your customers’ life. Content marketing is worthless if it doesn’t make your readers think or act.
Following is the strategy in brief that I developed for SixPL:
Center of our strategy is to provide useful and unbiased information and insights related to digital marketing, entrepreneurship, and marketing technology. We will only produce evergreen content and use Google keyword planner tool to optimize every article for a minimum of one keyword and a maximum of three keywords.
In addition to this, we will also publish an off-beat article on Saturdays that would revolve around current affairs and positive things around us.
No article will be published without optimizing it for Google. The headline of the article will be written in a way that describes the content more accurately, rather than attention grabbing clicks baits that are used to get more traffic from social media.
A separate guideline will be developed to accommodate guest posts that fit our overall strategy.
A new blog will be published every Monday, Wednesday and Friday.
Newsletter to be broadcasted every Tuesday
Social Media Calendar
One Status Update Per day
On Mondays, Wednesdays, Fridays and Saturdays – New Blogs
Tuesday – Creative
Thursday – Old Blog
Saturdays – Off-beat Article (From our blog or from across the Internet)
5. Content Promotion Strategy
Gone are the days when great content attracted a huge audience. Today, you need to spend a significant amount of time in promoting the new as well as old blogs. Otherwise, it will hardly be visible and read by anyone.
Here is the promotional calendar that I have developed for SixPL:
On the Blog Publishing Days (Mondays, Wednesdays, and Fridays):
Blog will be published on Mondays, Wednesdays & Fridays Around 9 pm IST
After publishing a blog post following needs to be done:
- URL Tagging (UTM Tagging)
- Post it on Facebook, LinkedIn and Twitter
- Promote it on LinkedIn Groups
- Promoting it on Facebook through Paid Campaign
- Share it on Inbound
- Share it on GrowthHacker
- Share it on Alltop
- Engagement through comments on five websites
- Publishing a blog on LinkedIn through Personal Account
- Answering related questions Quora
6. Measurement and Optimization
Initially, use basic methods such as UTM tagging and Google Analytics to measure the traffic conversion. For SixPL, we have decided to review the progress on a monthly basis and make required changes in strategy or implementation that can help us in meeting our goals and objectives.
You need to plan as much in detail as possible to overcome major challenges. For SixPL, I have even decided 90% of the blog topics and titles that would be created over the next six months. This gives me a clear picture of how the entire content will look like at the end of our first ever campaign. We have also planned the detailed list of activities and the number of hours I along my team is going to invest in content marketing. At the end of the campaign, this will give a fair idea of ROI on content marketing and whether we should continue doing it with some improvements or choose something else.
Watch this space for regular updates on the progress we make. Subscribe to our newsletter to get the updates in your email.
If you decide to implement a similar strategy for your business, do let me know, how it is going for you.
What is your opinion on this strategy? Will it work? Would you like to develop a similar strategy for your business? Or you have something better?
Looking forward to your valuable feedback through comments.
Some human’s perverse nature makes easy things look difficult. Ignore the hype and hoopla about startups and things become simple. Starting up and running a business is easier than we think. It may be demanding initially, but the rewards and joy entirely justify the hard work. If you have an idea and planning to start a business in future, then do it now.
The most unusual way to ensure the success is to adhere to core principles of running a business:
Money, money, and money
In its basic form, a business involves a buyer and a seller. The end objective of a vendor (or business) is to make money by selling products or services. As an entrepreneur, you need three things to build and sell a product or a service; time, money and expertise.
Time – Time is constant for everyone. You will get your share of 24 hours without doing anything.
Expertise – It takes the time to develop new capabilities and competencies. However, your current expertise is sufficient to start a business, irrespective of your education background, work experience, etc.
Money – This is the essence of life. It is easy to spend and hard to earn. At no point in time, you can’t afford to run out of cash. Venture capital, business loan, angel funding, etc. can only help if you have sufficient money to take care of necessary things. Moreover, money can also buy time and expertise (by hiring new people).
To build a successful business, you need to ensure consistent inflow of money by utilizing the time, money and expertise at your disposal. The faster you execute the cycle, the sooner you reach the climax and feel the pleasure.
No matter what business you are in, you need to take care of following to ensure an early success:
First thing first – Get Money
“Everyone has a plan until they get punched” – Mike Tyson
Never wait for having a business name, website, brochure, visiting card, an office or even a perfect product or service. Your face value has higher credibility than all the marketing collaterals. Define your product or service and sell the same to five customers before doing anything else. And I am not talking about taking feedback and free bits of advice from your friends and family. (We all know their standard answers). Until someone pays for your products, it is usually useless. The paying customers give best punches and become the ultimate source of inspiration. Even the greatest Gurus can’t teach you what you learn about your business in the process of acquiring first five customers.
According to a survey, most of the startups fail due to following 20 reasons.
| ||Reasons||% of Startups stated this reason for their failure||How it can be addressed
|No market need for their products||42||Gauge the market need by trying to acquire customers early
|Ran out of cash||29||Constant inflow of cash - Acquiring more clients
|Not the right team||23||Founders' Expertise
|Pricing/Cost Issues||18||You can identify pricing mistakes if you talk to prspective clients
|Poor Product||17||By trying to acquire new clients as early as possible
|Need/Lack Business Model||17||Acquiring new clients
|Poor Marketing||14||New client acquisition
|Ignore Customers||14||Customer Service
|Product Mis-timed||13||Market Research/Client Acquisition
|Lose Focus||13||Founders' vision
|Disharmony on team/investors||13||Founders competency
|Pivot Gone Bad||10||
|Lack Passion||9||Founders competency
|No Financing/Investor Interest||8||Bootstraping, Acquiring more clients
|Don't use Network Advisors||8||
|Burn Out||8||Founders competency
|Failure to Pivot||7||
If you manage to gain five clients, in the beginning, you can address top 10 challenges that leads to failure for almost 70-75% of the startups.
How to Increase Sales Immediately
For first six months, spend on things that matter the most. Be frugal with time as well as money. First six to twelve months determine how far you will go. And running out of cash is not an option. Whenever you need to buy something, consider alternate ethical ways to get things done with minimum expenses. The only thing that you shouldn’t compromise is the quality of product or services. For everything else, it is okay to be mediocre.
Prefer Technology over People
Many times you may feel the need to hire more people to share the workload, do technical tasks, or simple consultation. Explore technological solutions before posting a job requirement on social media or job portals. For example, you can develop a basic website at no cost using free WordPress themes or even create an excellent site by purchasing a Premium WordPress theme at a fraction of what a web developer will charge to develop the high-quality site. Similarly, you can buy custom logo, explainer videos, etc. from Fiverr at just $5. Today, technological advancements have made it possible to do the complex task using simple web applications. You can reduce operational cost significantly by using these services. Over time, you may need people to scale up your business. However, at the initial stage, hire full-time employees will create a liability. If at all you have no option but to hire someone, try to engage with freelancers on Fiverr, Freelancer or Upwork.
Best Tools for Entrepreneurs and small businesses
Believe in Yourself
You are more important than your business, products or customers. Believe in yourself. Trust and follow your inner voices. In entrepreneurship, there is no term such as failure. You will either succeed or learn something that is invaluable. Business schools and corporate world doesn’t teach these life lessons.
Everyone has their unique way of running a business. There are no fix rules of winning or losing. Those who learn and evolve quickly tend to be more successful than others. In difficult times, just go to basics, and I am sure you will get all the answers.
I wish you all the best. I would love to hear your opinion or feedback in comments.
India is among the fastest-growing economies in the world. Enormous domestic market and increasing middle class with high disposable incomes have insulated the country from global economic challenges. Most successful firms in India are export oriented. While this strategy works well for the companies, the domestic market remains underserved. Most of the startups in India have copy pasted the business models of international firms (mainly American startups). Therefore, the local market has an enormous potential for new ventures that can meet Indian needs.
If you are looking for traditional business that requires low invest, read following article:
Low Investment Business Ideas
However, if you are looking for innovative business ideas that can be scaled quickly, here is a list of business ideas that can be turned into a successful business models to serve domestic market:
If you are aware of firms that offer services related to the listed ideas, please mentioned them in comments and I will include the list in blog for readers’ reference:
1. Real Estate Research Firms
If I want to purchase or rent a home or office, I have no option but to spend a lot of time in finding the right information. Commission based business model leads to miss-selling by most of the brokers. Although I am ready to pay a fixed price for an extensive research that includes visiting some of the properties or localities, taking new images and providing a fair analysis of the properties. I can’t find a firm or an independent professional who can do this work. Some broker free portals are good for nothing as they have very limited useful information. Some research firms work for high-end corporates or provide subscription-based analysis which is too standardized to be helpful.
Another micro-business model (perhaps a blog is enough) that can provide accurate construction updates of new projects or recent developments in localities. Currently, you need to visit personally to get information that can easily be accessed through a platform.
2. Sales outsourcing services for B2B Businesses
Major e-commerce players such as Flipkart and Amazon work as brokers for B2C sellers. While the e-commerce is booming for B2C market, B2B sales are almost untouched by the technological evolution, especially in the services sector. Some of the sales processes such as tele calling, mass mailing, inbound call centers are outsourced. There is a great market for end-to-end outsourcing of sales and marketing for high-value products and services.
3. Lead Generation Services
Affiliate marketing has solved the need for result based marketing services to an extent. However, it is not popular among the Indian small businesses market. Also, there is a vast scope for lead generation services for offline and B2B companies that can’t take direct advantage of affiliate marketing technology.
4. Technology Business Consultants
If I want to start a payment gateway business or a mobile payment system, I don’t know where to find relevant information. Similarly, non-technology companies require the help of consultants to start technology-based businesses. Currently, the firms rely on technology services providers (such as developers) who hardly know anything other than coding. Large companies such as Infosys and TCS provide such services. However, they are too expensive to be approached by a small to medium business.
5. Independent Media
The news seems to be a thing of the past. A majority of media houses are either cheerleaders or adversaries of government and corporates. Newslaundry is making a right effort in this direction. However, they are still more focused on media critique and unbiased opinion rather than simple everyday news. There is an enormous scope for independent media entity that provides straightforward news without putting their stupid views that waste readers’ time.
6. Government Purchase
This kind of a business has a huge scope but requires connections in government. The defense purchase (or any government purchase) is still a messy and an expensive process. Startups can use technology for streamlining the purchase made by the government departments. Big corporates will never do it as they are the largest beneficiary of the current mess.
7. Content Writers
India is the second biggest country in terms of English speaking population. However, there are very few professionals who brace ghostwriting or content writing as a full-time profession. Therefore, there is a massive shortage of writers who are also a subject matter experts in specific domains. Excellent writers can earn more than IIT/IIM Graduates.
8. Queue Management Mobile App
The hue and cry by media over long queues after recent currency ban exposed their ignorance of rural India. People in the countryside are required to be in long lines for necessary daily requirements. From railway ticket, ATMs, cinema halls to banks, you can find long queue in almost every small town and village. Queue management apps can help institutions manage queues efficiently and save a large population from an unnecessary hassle.
9. Career Counseling
Pathetic is the mild term to describe our education system. It produces people who don’t know what they should and can do even after completing their studies. A professional career counseling can not only help students identify their strengths and weaknesses but also suggest in choosing the right schools, colleges, courses, and jobs. Currently, most of the career counselors act as an agent of sham institutions who pay commission for every admission.
10. Getting rid of unwanted Guests and noises
In many localities of India (especially in urban areas), it is difficult for sensitive people to sleep peacefully in the night. Sometimes stray dogs bark continuously, or pigeons keep fighting in the bedroom windows. Stray cows and buffaloes create traffic jams while monkeys create havoc all around in a busy market. Organized networks of beggars present a different set of challenges for people on the street. Currently, there is no way to get rid of such small but critical problems. Addressing these issues will be a great social work in itself.
11. Hiring of semi-skilled and skilled labor
If you want to start a restaurant, salon, beauty parlor or a taxi services business, you will have a nightmare in finding people. Hiring plumbers, electricians, carpenters, etc. for minor household work is another big challenge in urban and semi-urban areas. On the one hand, people blame governments for not creating enough jobs while on the contrary; businesses are shutting down due to lack of skilled individuals. The government has established National Skill Development Center for training and placement of semi-skilled and skilled labors. However, intermediaries are the biggest beneficiary of this initiative. Some portals such as Babajobs, Careersma, Quikr and OLX have done a good job of providing a platform to hire such people. However, their scope is limited to the major cities of India.
12. Car Pooling and Hiring a private car
Quality public transport is still a dream for the majority of Indians in urban as well as rural areas. Uber and Ola have done a brilliant job of providing cabs on demand in the main cities. Their reach is limited to commercial vehicles and big cities. Providing GPS based car and bike pooling facility for private individuals can be a significant boost to the public transport infrastructure.
Most office goers have their car parked during working hours. Renting the idle car will not only help others, but owners can also have an alternate source of income. This will also contribute to reducing congestion on the road. The implementation will always be difficult for this kind of business. But, this is what entrepreneurs are made for – to solve difficult problems.
13. Solid Waste Disposal
Solid waste is one of the leading causes of concern for urban areas in India. Municipal bodies don’t have the competency to address the concern. A technology based startup can easily get government funding to address this problem.
14. Laundry Services
Some startups in the major cities provide laundry services. However, its reach is still limited. The demand for such services is increasing in semi-urban as well as rural India. Although this business has a lot of implementation challenges in 2nd and 3rd tier cities of India, it also presents enormous opportunities to entrepreneurs.
15. Pending Court Cases
Our judicial system is amazingly slow. More than 20 million cases are pending in district courts in India. People hardly have any faith in the justice system. Criminals and corrupts are rarely punished whereas innocent and minor offenders spend years behind the bar. Courts will not fix the problem as the judiciary is not accountable to any institution in the democracy. No government will ever want to solve this issue as the politicians are the biggest beneficiary of the current system. Legal startups should step in to use technology to settle civil cases through arbitration or easing the burden on lower courts. Activists should build public opinion to pressurize governments to bring in judicial reforms.
I will keep adding more ideas to the list in future. Some may be far-fetched; some may look promising, while others might look laughable or ridiculous. But that is okay. If you also come across any pain points or business ideas (even if they are not implementable), please write them through comments, and I will include them on the blog with due credits. Also, please share your input and feedback on ideas mentioned above. Together, we can build a better India.
When I thought of writing this blog, I asked myself: “Am I the right person to advise on wealth; I stay in a rented accommodation and work 10-12 hours a day to earn my living.”
“No” was the clear response from my heart. “I am a nobody ” and therefore, I can’t advise people on how to become wealthy.
However, as an entrepreneur, I can share my experiences and lessons that I learned the hard ways. It may help others who have similar aspirations.
Here is my take on what makes some people wealthier than others.
To create enormous wealth, you need to have only one thing:
If you have the rich mentality, other things will follow.
People with rich mentality follow their heart and use available resources to multiply their wealth over time and in a legal way.
People with a poor mentality, which I call lottery mentality, are usually unaware of their current strengths or resources and spend more time looking for ‘ways’ to make more money rather than making money.
Both kinds of people are innovative, hard working, believe in work ethics and honesty, have good intentions and want to do good for themselves as well as for their community. However, people with rich mentality are the ones who successfully do what they want to do while others always feel the lack of time, dissatisfaction with what they are doing and always want to do more without knowing what exactly needs to be done.
The good thing is, it is easy to change the mentality if you want and this is how you can do it:
Poverty is the cause of all the evils
Respect money. Take control of your wealth. Don’t let others decide what is your worth. If you are doing a job and unable to take control of things, either move on or start a side business. A simple, even part-time business can allow you to have greater control over your wealth.
If you are already into a business, don’t let competition or even customers decide your strategy. Know the worth of your products or services, set a reasonable price, innovate and push yourself to move faster, grow bigger and get better at what you do.
I want it, but I don’t
Don’t let the choices and options confuse you. If you are ever skeptical about the direction you have chosen, remember this:
“This world has enough space to accommodate all types of products and services. A cobbler in Czechoslovakia invested his entire savings in buying machinery to make shoes. Soon, a traditional one man shop had ten people working on a fixed schedule and weekly wage, which was rare for its time. The company did a lot of firsts and went on to become a leading shoe manufacturer in the world. We know them as “Bata” Shoes. Almost all big brands began as a small business working in a highly competitive market. The difference between small businesses which go on to become market leaders (or grow to a significant size) and others is perhaps the vision of their founders. While one set of founders innovate and work out of comfort zone to make the product better, others constantly look out for other avenues from which they can make fast money.”
Have faith in yourself and the choices you have made. A little innovation can take you far.
If you are planning to start a business and not sure what to do, then
Do whatever you are good at
If you are not good at anything, then choose something you like or love to do. And you can work for 10-15 hours a day without getting tired.
If you love to do a lot of things, then
Pick ‘one thing’ that is the easiest to start, requires less investment and you don’t need any help from others to execute it flawlessly.
In short, it is important to believe in whatever you are doing. Love what you do or do what you love. Starting something just for the sake of money will need some help from God in terms of luck. If you consider yourself lucky, then you can take this route also to become rich and wealthy.
If you are willing to start a business but don’t have sufficient capital then start a business that requires low investment. To get some ideas on low investment business ideas, read this article:
Low Investment Business Ideas
I made a mistake and learned from it
For me, it has been one of the best learning so far. When our consulting services business was booming, I spent significant energy and time in developing a product for faster growth. We were taking an uncertain path at the cost of a well-established business. This flawed strategy lowered the pace of our established business and stifled innovation. The focus on current business line boosted revenue by 40% per annum and expected to grow at the same rate for at least the next few years. I know many people who have ruined their best wealth creator by getting into too many things at a time.
Meanwhile, it is a good strategy to stay in a rented accommodation and save enough capital to reinvest in the business. Even a mediocre business generates better returns than real estate.
Wealth is the most debated point of all time. If you disagree with any of the points mentioned above, please write it through comments. Let us help each other to achieve our financial goals.
On November 8, 2016, India took a decisive step of banning Rs. 500 and Rs. 1000 currency notes to fight against corruption, black money, terror funding and fledging fake currency industry. The government has taken several measures to make the transition as smooth as possible without leaving the scope for any loophole that allows black money holders to launder their illegal wealth. In India, the corrupts are well connected and influential. They consider themselves above the law and can go to any extent to establish their superiority over other fellow Indian citizens. Since they play a critical role in the formation of every government, it is almost impossible for any government to make a policy that goes against the interest of such powerful and wealthy people.
The Government of India led by Mr. Narendra Modi has pleasantly surprised its citizens by taking one of the biggest policy decisions since independent India to fight against graft. The new rule may cause temporary inconvenience to millions of people across the country. However, its positive impact may be felt for generations to come.
The fight against corruption is a continuous process and will continue till humans exist on earth. No single rule or policy can eliminate the corruption completely. What matters the most is whether we are moving in the right direction or not. Keeping aside our political inclinations, let us analyze the current policy to see its long term ramifications and where we are heading.
Here are some facts from the recent policy decisions made by Government of India to fight corruption:
- Existing notes of Rs. 500 and Rs. 1000 will not be valid from 9 November 2016 onwards.
- RBI will shortly issue (On 10 November) new notes of Rs. 500 and Rs. 2000.
- Rs. 2000 currency will be the first in India
- The old notes can be deposited in banks and post offices accounts from November 10 to December 30, 2016, without any limit. You need to carry Aadhar and PAN cards to deposit the money. After December 30, you can deposit the old notes in some designated offices of Reserve Bank of India with reasons and declarations. While there is no limit on deposit of old notes, you can exchange old notes worth INR 4000 up to 24 November from any banks and post offices accounts.
- ATM withdrawals will be limited to INR 10,000 per day and INR 20,000 per week. The limit will be increased later.
- Until November 11, Rail, Bus, Air Ticket Counters, Petrol Stations (authorized by public sector companies) and government hospitals, milk booths, Safal, Crematoria and Burial grounds will accept old notes. Tourists can exchange old notes at Airports.
- Banks and ATMs will be closed for Public on November 9 and while some of the ATMs may not function on November 10. The cash withdrawal limit will be Rs. 2000 for 9 & 10 November.
- The cheque, card, and online payments will remain unaffected. The coins and other notes of lower denominations will continue to be legal tender
- New notes of Rs. 500 and Rs. 2000 will be available in ATMs from 11 November.
Connecting the Dots
GoI started one of the biggest financial inclusion schemes of the world – Jan Dhan Yojna – to integrate the weaker section of the society into mainstream financial and banking system. More than 250 million (25 crores) new bank accounts have been opened as on November 2, 2016, under this scheme. Almost 200 million RuPay cards have issued under the same scheme. This scheme helped a lot of poor people to get connected with the banking system of the country.
Then through a Voluntary Income Disclosure Scheme, the government gave an opportunity to people to legalize unaccounted wealth by paying a flat 45% tax. At the same time, Income Tax department has become hyperactive and tracking all large transactions. PAN card has been mandatory for transactions of more than Rs. 2 lakh. Several other measures were taken to make black money transactions difficult. The current decision taken by the government is not a diversion tactic to divert attention but a part of its carefully crafted strategy to eliminate corruption. Thus, expect some more stringent policies and tough decisions to fight graft in the future. The next steps by the government will not close the loopholes but also strengthen the enforcement procedures to track and prosecute regular offenders.
There are some genuine concerns over the introduction of Rs. 2000 notes. Since the new notes have improved security features, it will be far easier to track them as compared to old currencies. Some people may truly face temporary hardship for few days. I suggest them that a few minutes of painful exercise in the morning can transform the way your body and mind works for the entire day and even for whole life. This is one of the best decision taken by any government since independence. And people should accept small inconveniences with grace. At the time of writing this blog, the real estate shares have tumbled by 20%. It clearly indicates the future impact of this decision on prices of properties. The price correction in real estate should be big news for lakhs of home buyers who wish to buy a home but can’t do so as the current rates are ridiculously high.
The new rule will also impact political parties including the ruling BJP which will find it difficult to fund their extravagant campaigns. The best part of the announcement lies in the way government has handled it. At the time when the bedroom discussions become the breaking news, the entire useless Indian media and political establishment have been shown their real “Aukaat” by the Modi government. The government and RBI must have made extensive preparation for printing and introducing new notes by November 11. However, none of the media houses or political leaders were able to get an iota of insider information. I call this the best example of “minimum government and maximum governance.” It also shows the honest intentions of the current establishment at the centre to eliminate the menace of corruption.
I will keep adding new facts and figures on this blog. Meanwhile, I would like to know your critical opinion on this issue. If you find my analysis biased or incomplete, don’t hesitate to point it through comments. If you like it, please like, comment and share it to spread the word.