Making the transition from a traditional job to working from home or starting your own business can be scary. You are giving up the known for the unknown, giving up stability and schedule for something that isn’t guaranteed. But you are also giving up limitations for unlimited possibilities, and giving up a strict schedule for complete flexibility…
I had the opportunity to share my own start-up story with a friend over coffee yesterday. I still laugh at myself when I think back on it, because the idea was completely crazy - yet I was totally confident that it would work. Chalk it up to age (23 at the time) and inexperience, but that naive confidence was probably the one factor that contributed most to my own success as an entrepreneur.
It was basically the Think and Grow Rich concept, even though I wasn’t familiar with Napoleon Hill or his work at the time. While it takes more of a deliberate thought process now ,10 years later, with plenty of experiences to contribute to decision making and goal setting… at the time I simply believed in it, and then went through the steps to make it happen.
Ten years ago I was a working wife and mother, and we were a combined family with 4 children. My husband couldn’t seem to get or keep a job, and I was making barely over $6/hour at my job in the small town where we lived. The house was rented, the car was always breaking down, and we were barely getting by from paycheck to paycheck. My one paycheck for 6 people, at that. We had no savings, no assets and no real shot of making it out of the rut anytime soon.
What I did to make the transition to a successful entrepreneur is not necessarily something I would advise to others. That said, it did work for me and I was up and running and (at least somewhat) financially stable within 3 months. To give you the short story: I quit my job cold turkey, sold everything that we owned, and started a service-based business out of our home. When I say sold everything - I mean the china, furniture, the kids’ toys, right down to my eel skin heels. It all went to auction.
I was in it to succeed, and had every intention of replacing it all. And did.
The most common advice, though, is that you save up at least 3 months worth of living expenses before you quit your job, or make the transition to working from home full-time. I think that this is great advice, and recommend it myself.
Another option is to begin working from home in your spare time, while keeping your current job. While this may mean insanely long days and unrealistic hours for you… it is only an investment you have to make for a short time. Once your business begins to earn what you are making at your job, you can comfortably leave that job and get back to normal working hours.
No matter which option you choose, you will most likely be making a sacrifice of some sort… and taking a chance. Plan smart, believe in yourself, and resolve to do whatever it takes to see your dreams come true.
Most people go into business for themselves because they want more out of life. More free time, more flexibility, more options, more financial stability. Whatever it is that you want more of… want it bad enough to throw caution to the wind and make it happen!
I am now starting my 11th year in business, and never had to even consider taking another job since I left mine in early 1997. If a struggling mother with a full house and an unemployed husband can do it - then so can you!
Part Time Web Businesses...Full Time Commitment
Let us cut to the chase...
To the extent your website is an extension of or supplemental to your brick and mortar operation, it can be and probably is a part time endeavor in comparison to your main business. Note it is relative.
Treat your online presence, however, like the proverbial "red haired step child", and you might as well not waste your time, money or man power on it. After all, whether generated on the world wide web or on main street from leads generated by your website, your web's only purpose is to increase name recognition and loyalty and generate and increase revenue.
From your planning stages and business model, to the design of your virtual office, to the selection of key words and ad words, to the selection of an internet host, to your branding, to your promotion strategies, to your monitoring and tracking techniques, to follow up and deal closing - detail, brain storming, and professionalism are key. Your creation must be an entity that makes money, not cost you precious resources.
You need to stop listening to the self declared gurus, and ask yourself the same tough questions you do about your main business. And, if your primary business is going to be the internet based business this factual examination becomes even more crucial.
First, know success is never final. Without proper drive and commitment, he who is on top today will be eclipsed tomorrow. Make sure you have a dream and not a night mare. Assure you have a sufficiently tough skin to pursue your idea and have enough heart to see it through the bad times not just skim off the cream of the crop. If all you have is heart burn from the rich dinner you ate last night rather than an unquenchable fire in your gut, don't toss your cash in the furnace for it will surely be consumed.
Second, never buy into the pie in the sky schemes of the wild blue yonder hucksters who sell everything for nothing and over valued and over priced half truths and for hard earned dollars. They market visions of grandeur purportedly coming true with untold bundles of cash flowing into your bank account while you sleep through the night and golf away the days. Experience shows that virtual life does not work that way any more than real life does.
Get rich quick schemes are the same as and do not work any better than the alcoholic or addict looking for a softer easier way to recover. Lazy people will find they fail and fall faster, harder, and further playing with a new enterprise whether corporate, partnership, or sole proprietorship than punching a time clock.
In your own venture you will soon be painfully aware you cannot pass the buck. There is no lead man, no foreman, no HR department, no big bad boss to keep you honest, to keep you focused, or to keep you working. When you make bad decisions there is no one to bail you out. When you fail to pro
duce there is no payroll clerk from which to draw advance cash. There is no blame game to play because when things are not going your way there is no one else to blame. There is no one about whom to gossip except your customers and that is suicide. There is no one to gossip with except your clients, and that is even worse.
Friendships get relegated to the back burner. You are not here to make friends. A few will come with your success over time as you prove yourself to be a no nonsense professional in your field, a competent business person, and worthy of trust and friendship. But initially you will be consumed with making a living, supporting a business and maybe a staff (if you have one). Don't let it steal family time and relationships.
Don't become pompous! Think of yourself as you think of your dentist... a necessary evil with whom you are cordial and professional. You will be the dentist from this day forward. Don't let it steal your positive spiritual walk.
You will find you now have more legal and social obligations and responsibilities than ever before. People will start to demand more and more of your personal time and attention. Some are simply trying to use you for their own purposes. Don't become a recluse! Faithfully fulfill your obligations to your community and your fellow man, and good things will happen for you.
Now if you have what it takes to run your own business, if you are a self starter and driven you can make money (good money) on the internet or anywhere else. If you understand it is not about luck, not about others, not necessarily about how much money you have today and not necessarily about your education level, and if you are willing to make the commitments, invest the time and do what it takes you are probably ready to become an entrepreneur.
Little will get you more than informed persistence without spamming and without becoming obnoxious.
Part time indeed! What are you waiting for? Go make something happen!
To the extent your website is an extension of or supplemental to your brick and mortar operation, it can be and probably is a part time endeavor in comparison to your main business. Note it is relative.
Treat your online presence, however, like the proverbial "red haired step child", and you might as well not waste your time, money or man power on it. After all, whether generated on the world wide web or on main street from leads generated by your website, your web's only purpose is to increase name recognition and loyalty and generate and increase revenue.
From your planning stages and business model, to the design of your virtual office, to the selection of key words and ad words, to the selection of an internet host, to your branding, to your promotion strategies, to your monitoring and tracking techniques, to follow up and deal closing - detail, brain storming, and professionalism are key. Your creation must be an entity that makes money, not cost you precious resources.
You need to stop listening to the self declared gurus, and ask yourself the same tough questions you do about your main business. And, if your primary business is going to be the internet based business this factual examination becomes even more crucial.
First, know success is never final. Without proper drive and commitment, he who is on top today will be eclipsed tomorrow. Make sure you have a dream and not a night mare. Assure you have a sufficiently tough skin to pursue your idea and have enough heart to see it through the bad times not just skim off the cream of the crop. If all you have is heart burn from the rich dinner you ate last night rather than an unquenchable fire in your gut, don't toss your cash in the furnace for it will surely be consumed.
Second, never buy into the pie in the sky schemes of the wild blue yonder hucksters who sell everything for nothing and over valued and over priced half truths and for hard earned dollars. They market visions of grandeur purportedly coming true with untold bundles of cash flowing into your bank account while you sleep through the night and golf away the days. Experience shows that virtual life does not work that way any more than real life does.
Get rich quick schemes are the same as and do not work any better than the alcoholic or addict looking for a softer easier way to recover. Lazy people will find they fail and fall faster, harder, and further playing with a new enterprise whether corporate, partnership, or sole proprietorship than punching a time clock.
In your own venture you will soon be painfully aware you cannot pass the buck. There is no lead man, no foreman, no HR department, no big bad boss to keep you honest, to keep you focused, or to keep you working. When you make bad decisions there is no one to bail you out. When you fail to pro
duce there is no payroll clerk from which to draw advance cash. There is no blame game to play because when things are not going your way there is no one else to blame. There is no one about whom to gossip except your customers and that is suicide. There is no one to gossip with except your clients, and that is even worse.
Friendships get relegated to the back burner. You are not here to make friends. A few will come with your success over time as you prove yourself to be a no nonsense professional in your field, a competent business person, and worthy of trust and friendship. But initially you will be consumed with making a living, supporting a business and maybe a staff (if you have one). Don't let it steal family time and relationships.
Don't become pompous! Think of yourself as you think of your dentist... a necessary evil with whom you are cordial and professional. You will be the dentist from this day forward. Don't let it steal your positive spiritual walk.
You will find you now have more legal and social obligations and responsibilities than ever before. People will start to demand more and more of your personal time and attention. Some are simply trying to use you for their own purposes. Don't become a recluse! Faithfully fulfill your obligations to your community and your fellow man, and good things will happen for you.
Now if you have what it takes to run your own business, if you are a self starter and driven you can make money (good money) on the internet or anywhere else. If you understand it is not about luck, not about others, not necessarily about how much money you have today and not necessarily about your education level, and if you are willing to make the commitments, invest the time and do what it takes you are probably ready to become an entrepreneur.
Little will get you more than informed persistence without spamming and without becoming obnoxious.
Part time indeed! What are you waiting for? Go make something happen!
Is Your Home Business Going To Make Money? How To Know In Advance
These days when most people are finding they need extra money, home businesses are more popular than ever. Organizations have stepped up to the plate providing what seems like thousands of new business opportunities to choose from.
Most promise you'll make good money. More than a few outright guarantee you'll get rich. Surprising numbers say you'll never have to do any work.
I suppose it's possible to get rich without ever lifting a finger, but I've never known anyone to do it -- excluding lottery winners, of course.
With all these claims floating around, how can you know if the home business you choose will make money? There ARE some surefire ways to tell.
1. You must be selling a product a big group of people REALLY WANT. Notice I didn't say a product EVERYONE wants. That's not necessary. You'll do best if you sell a product that just SOME people want, but you need those people to want it very BADLY.
Make sure you consider THE PRODUCT that a home business is selling. Too often, business opportunities focus entirely on the compensation plan. But at the bottom of every plan is a product that MUST sell, or there won't be any revenue to fuel the compensation plan.
2. Don't plan on learning your business all by yourself. You'll earn bigger money faster if you have plenty of experienced help. Find a company that will give you upline or management assistance.
You'll not only need step-by-step explanations of how to run your home business, you'll need some personal encouragement to keep your enthusiasm up over the long haul.
3. This many be the most important point of the bunch. Make sure you have a way to get a non-stop supply of good, warm leads. Presenting your home business to your relatives and friends may work for a few weeks, but after a while, you'll need new prospects.
This is where most home businesses fail. They spend money on buying leads and advertising, but soon find they don't the results they expect through advertising.
Make sure your home business opportunity comes with a solid system for attracting new customers.
There are even more ways to ensure your home business is a good one, but using these three tips will take you miles toward creating a home business that produces the extra cash you need in a timely manner.
Most promise you'll make good money. More than a few outright guarantee you'll get rich. Surprising numbers say you'll never have to do any work.
I suppose it's possible to get rich without ever lifting a finger, but I've never known anyone to do it -- excluding lottery winners, of course.
With all these claims floating around, how can you know if the home business you choose will make money? There ARE some surefire ways to tell.
1. You must be selling a product a big group of people REALLY WANT. Notice I didn't say a product EVERYONE wants. That's not necessary. You'll do best if you sell a product that just SOME people want, but you need those people to want it very BADLY.
Make sure you consider THE PRODUCT that a home business is selling. Too often, business opportunities focus entirely on the compensation plan. But at the bottom of every plan is a product that MUST sell, or there won't be any revenue to fuel the compensation plan.
2. Don't plan on learning your business all by yourself. You'll earn bigger money faster if you have plenty of experienced help. Find a company that will give you upline or management assistance.
You'll not only need step-by-step explanations of how to run your home business, you'll need some personal encouragement to keep your enthusiasm up over the long haul.
3. This many be the most important point of the bunch. Make sure you have a way to get a non-stop supply of good, warm leads. Presenting your home business to your relatives and friends may work for a few weeks, but after a while, you'll need new prospects.
This is where most home businesses fail. They spend money on buying leads and advertising, but soon find they don't the results they expect through advertising.
Make sure your home business opportunity comes with a solid system for attracting new customers.
There are even more ways to ensure your home business is a good one, but using these three tips will take you miles toward creating a home business that produces the extra cash you need in a timely manner.
Is Your Home Business Making You Rich?
Every business owner wants to make his or her business successful. Many times we expect to make more money than working for a boss. The fact is that it is far from easy to make a living with your own business.
With the rising of the internet the obstacles of going into business have lowered. It is easier to start and it doesn¡¯t take too much investment to make it work. In the ¡°normal¡± business environment, where more investments and risks need to be taken, it is more likely that a starter will consider his future business more carefully. And rightfully so. He or she has a lot to lose. Most probably this entrepreneur will need to quit his job to work full-time on his or her business without any guarantee on success and income. Starting an e-business doesn¡¯t need those huge risks. A lot of part-time e-based business owners can make an excellent living. That is all great, but because it is relatively easy to start your own business the process of thinking your business through is not enhanced.
And that is the disadvantage of an internet-based home business. Because it doesn¡¯t take so much effort compared to other businesses, the business owner might think the rest is also easy. But let¡¯s face it, to make a living with a business that has so many competitors it is far from easy to stand out and make it work. Many business owners start to wonder after a few months what they do wrong. No sales and no income. But this can be overcome.
Forget the fact that you, without any specific experience in the home business, were able to set up a nice website where you sell your products and services. Start to think about why people would need to join you and buy your products. Think what you need to do just to make one sale. Think what resources, time and money, it will cost you to make it work. To summarize, think of your business. Even better, put your thoughts on paper and make a business plan with your goals, assumptions, forecasts and action plans. This will not guarantee your success, but will for sure let you think about how you can reach whatever you want to reach with your home business.
In the end, your home business is as much of a business as that of any other company!
With the rising of the internet the obstacles of going into business have lowered. It is easier to start and it doesn¡¯t take too much investment to make it work. In the ¡°normal¡± business environment, where more investments and risks need to be taken, it is more likely that a starter will consider his future business more carefully. And rightfully so. He or she has a lot to lose. Most probably this entrepreneur will need to quit his job to work full-time on his or her business without any guarantee on success and income. Starting an e-business doesn¡¯t need those huge risks. A lot of part-time e-based business owners can make an excellent living. That is all great, but because it is relatively easy to start your own business the process of thinking your business through is not enhanced.
And that is the disadvantage of an internet-based home business. Because it doesn¡¯t take so much effort compared to other businesses, the business owner might think the rest is also easy. But let¡¯s face it, to make a living with a business that has so many competitors it is far from easy to stand out and make it work. Many business owners start to wonder after a few months what they do wrong. No sales and no income. But this can be overcome.
Forget the fact that you, without any specific experience in the home business, were able to set up a nice website where you sell your products and services. Start to think about why people would need to join you and buy your products. Think what you need to do just to make one sale. Think what resources, time and money, it will cost you to make it work. To summarize, think of your business. Even better, put your thoughts on paper and make a business plan with your goals, assumptions, forecasts and action plans. This will not guarantee your success, but will for sure let you think about how you can reach whatever you want to reach with your home business.
In the end, your home business is as much of a business as that of any other company!
Is A Work From Home Franchise Business Right For You?
If you’re interested in opening your own business, you should definitely consider the potential rewards of a business that would allow you to work from home. A home based business offers an amazing level of autonomy, and there are a surprising number of work at home franchise opportunities. In this article we will discuss some of the pros and cons of working from home as well as some of the available home based business franchises.
Pros and cons of a home business:
One major advantage of home based business franchises is that the initial investment required is typically much lower than a traditional franchise. Work from home franchises are usually in the $15,000-$30,000 range. You can occasionally even find a work at home franchise for as little as $10,000.
Another advantage is that a home based business has very few overhead expenses. Of course you will have to maintain a home office, but your chief operating tools will be things such as a computer, telephone or fax machine. If you choose to employ one or two people, there would, of course, be some payroll.
Home based business franchises require you to stock little to no inventory, which is advantageous because it alleviates the responsibility of keeping up with an inventory system.
Many prospective franchisees find the lifestyle associated with working from home to be the key advantage. There are a number of work at home franchise opportunities that only require a part-time commitment to be successful. This provides franchisees with a great deal of flexibility in their schedules and often affords them more time to spend with their families. This flexible schedule also allows business owners to conduct business at times that are most convenient for them as opposed to adhering to the traditional “retail-style” hours of operation.
However, working at home does have some disadvantages, too. There is staggered revenue potential associated with these types of businesses. Because there is no walk-by traffic, home based businesses are dependent upon a loyal client base for repeat business.
As the owner of a home business, you will have limited exposure due to municipal law, which prohibits home based franchises from maintaining “street signage” on residential properties. You can get around this restriction if your home has been zoned for commercial use, but for the most part your business’s exposure will depend on your ability to market it through various advertising media.
National advertising campaigns are not commonly associated with home based franchises. Normally, marketing the business is the sole responsibility of the franchisee, and this may limit the reach of your marketing campaign to your own town or city.
Finally, as a home-based franchisee, your business practice will be isolated. This can curtail the number of networking opportunities you will have. If you do not maintain an active and effective advertising campaign, you are likely to lose potential customers to any competitor who operates a street-front or retail business.
Available home based business franchises:
If you’ve weighed the pros and cons and decided that a home based franchise is right for you, you might consider some these franchise opportunities:
PosiGrip is a turnkey, home based franchise that offers its customers protection from dangerous slip-and-fall accidents. PosiGrip is a process that creates a tread design on almost any hard surface including tubs and showers. The process does not discolor or change the look or feel of floors or showers. It simply makes them safer. For an initial investment of $8,000-$10,000, you will receive training and support, national advertising and a complete marketing program. PosiGrip imposes no franchise or royalty fees on its franchisees.
Guard-A-Kid™ Child ID Systems is a franchise that allows the franchisee to choose working from home or from a mall kiosk. The services and products they provide their customers are essential for child safety. For example, a complete child ID and safety package that includes two wallet-size printed IDs, a large file-size ID and a CD-ROM containing all the child’s information in digital format is available to patrons. The initial investment for this franchise is $19,900. Your start-up kit will include numerous technological tools to ensure your success including a state-of-the-art laptop PC and an FBI-quality digital fingerprint scanner. Guard-A-Kid was included in Entrepreneur Magazine’s Franchise 500® list and was also recently named one of the top 100 new franchises by Franchise Market Magazine.
You can even work from home in the travel industry. For example, Cruise Planners is a nationally recognized cruise planning agency, and they were ranked number one in their category in Entrepreneur Magazine’s Franchise 500® for 2004, 2005, 2006 and 2007. The initial investment required for this home based business franchise is $20,000. Franchisees in this system enjoy training programs, marketing and advertising programs, exclusive lead and website programs as well as the highest commission levels in the industry.
Final thoughts concerning home based businesses:
The possibilities for entrepreneurs seeking a work at home franchise opportunity are virtually limitless. You can see the diversity in available franchises just from the short list above, and it is a short list. Many other opportunities exist.
If you’ve done your research and concluded that a home based franchise business is for you, you shouldn’t have any trouble finding a franchise to meet both your personal and your professional needs.
Pros and cons of a home business:
One major advantage of home based business franchises is that the initial investment required is typically much lower than a traditional franchise. Work from home franchises are usually in the $15,000-$30,000 range. You can occasionally even find a work at home franchise for as little as $10,000.
Another advantage is that a home based business has very few overhead expenses. Of course you will have to maintain a home office, but your chief operating tools will be things such as a computer, telephone or fax machine. If you choose to employ one or two people, there would, of course, be some payroll.
Home based business franchises require you to stock little to no inventory, which is advantageous because it alleviates the responsibility of keeping up with an inventory system.
Many prospective franchisees find the lifestyle associated with working from home to be the key advantage. There are a number of work at home franchise opportunities that only require a part-time commitment to be successful. This provides franchisees with a great deal of flexibility in their schedules and often affords them more time to spend with their families. This flexible schedule also allows business owners to conduct business at times that are most convenient for them as opposed to adhering to the traditional “retail-style” hours of operation.
However, working at home does have some disadvantages, too. There is staggered revenue potential associated with these types of businesses. Because there is no walk-by traffic, home based businesses are dependent upon a loyal client base for repeat business.
As the owner of a home business, you will have limited exposure due to municipal law, which prohibits home based franchises from maintaining “street signage” on residential properties. You can get around this restriction if your home has been zoned for commercial use, but for the most part your business’s exposure will depend on your ability to market it through various advertising media.
National advertising campaigns are not commonly associated with home based franchises. Normally, marketing the business is the sole responsibility of the franchisee, and this may limit the reach of your marketing campaign to your own town or city.
Finally, as a home-based franchisee, your business practice will be isolated. This can curtail the number of networking opportunities you will have. If you do not maintain an active and effective advertising campaign, you are likely to lose potential customers to any competitor who operates a street-front or retail business.
Available home based business franchises:
If you’ve weighed the pros and cons and decided that a home based franchise is right for you, you might consider some these franchise opportunities:
PosiGrip is a turnkey, home based franchise that offers its customers protection from dangerous slip-and-fall accidents. PosiGrip is a process that creates a tread design on almost any hard surface including tubs and showers. The process does not discolor or change the look or feel of floors or showers. It simply makes them safer. For an initial investment of $8,000-$10,000, you will receive training and support, national advertising and a complete marketing program. PosiGrip imposes no franchise or royalty fees on its franchisees.
Guard-A-Kid™ Child ID Systems is a franchise that allows the franchisee to choose working from home or from a mall kiosk. The services and products they provide their customers are essential for child safety. For example, a complete child ID and safety package that includes two wallet-size printed IDs, a large file-size ID and a CD-ROM containing all the child’s information in digital format is available to patrons. The initial investment for this franchise is $19,900. Your start-up kit will include numerous technological tools to ensure your success including a state-of-the-art laptop PC and an FBI-quality digital fingerprint scanner. Guard-A-Kid was included in Entrepreneur Magazine’s Franchise 500® list and was also recently named one of the top 100 new franchises by Franchise Market Magazine.
You can even work from home in the travel industry. For example, Cruise Planners is a nationally recognized cruise planning agency, and they were ranked number one in their category in Entrepreneur Magazine’s Franchise 500® for 2004, 2005, 2006 and 2007. The initial investment required for this home based business franchise is $20,000. Franchisees in this system enjoy training programs, marketing and advertising programs, exclusive lead and website programs as well as the highest commission levels in the industry.
Final thoughts concerning home based businesses:
The possibilities for entrepreneurs seeking a work at home franchise opportunity are virtually limitless. You can see the diversity in available franchises just from the short list above, and it is a short list. Many other opportunities exist.
If you’ve done your research and concluded that a home based franchise business is for you, you shouldn’t have any trouble finding a franchise to meet both your personal and your professional needs.
Over 48 business entities to seek bank licences
About three dozens entities, including billionaires like Aditya Birla Group, Tata Capital, Religare, Reliance Capital, are applying for bank licences, the deadline for which expires tomorrow.
Entities which have taken board approval for applying to for bank licence from the Reserve Bank include country’s oldest financial institution IFCI, IDFC, India Infoline, Videocon Industries, SREI Infrastructure Finance etc and the Department of Posts.
ReutersReuters
Bajaj Finance, a subsidiary of Bajaj Finserv, has already submitted its application for the licence. According to sources, as many as five micro finance institutions are also applying for bank licence. So, the final tally at the end of July 1 could go beyond three dozens. However, Mahindra Finance, a Mahindra and Mahindra Group entity has decided not to apply citing “disadvantageous” and unclear norms.
“The RBI guidelines provide for the conversion of NBFCs into a bank, but do not provide any flexibility for an NBFC and a bank to co-exist for a reasonable period of time,” Mahindra Finance said in a statement. Although RBI is closed on July 1 for public transactions to facilitate annual closing of RBI’s accounts, the central bank has made special arrangement for receiving of application for bank licence by private companies.
Intending applicants for setting up new banks can submit their applications up to 17.45 hrs to the Chief General Manager-in-Charge, Department of Banking Operations and Development, Central Office, RBI said in a statement.
Applications received after close of business on July 1,or incomplete applications will not be considered, it added. RBI issued final guidelines for new bank licence in the private sector on February 22 while clarifications pertaining to norms was released on June 21.
RBI while issuing clarification on new bank licence guidelines said, the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier, and promoters would have to transfer their holdings to the non-operative financial holding company (NOFHC) in a stipulated period.
The NOFHC envisages holding of the bank and other regulated financial services entities of the promoters under the NOFHC and prudential exposure norms for the entities. India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.
Ten banks were licenced on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks, and fresh applications were invited.Of the 10 licences issued in 1993, four banks merged with other lenders over a period of time. Times Bank merged with HDFC Bank, while Global Trust Bank was amalgamated with the state-owned Oriental Bank of Commerce.
Entities which have taken board approval for applying to for bank licence from the Reserve Bank include country’s oldest financial institution IFCI, IDFC, India Infoline, Videocon Industries, SREI Infrastructure Finance etc and the Department of Posts.
ReutersReuters
Bajaj Finance, a subsidiary of Bajaj Finserv, has already submitted its application for the licence. According to sources, as many as five micro finance institutions are also applying for bank licence. So, the final tally at the end of July 1 could go beyond three dozens. However, Mahindra Finance, a Mahindra and Mahindra Group entity has decided not to apply citing “disadvantageous” and unclear norms.
“The RBI guidelines provide for the conversion of NBFCs into a bank, but do not provide any flexibility for an NBFC and a bank to co-exist for a reasonable period of time,” Mahindra Finance said in a statement. Although RBI is closed on July 1 for public transactions to facilitate annual closing of RBI’s accounts, the central bank has made special arrangement for receiving of application for bank licence by private companies.
Intending applicants for setting up new banks can submit their applications up to 17.45 hrs to the Chief General Manager-in-Charge, Department of Banking Operations and Development, Central Office, RBI said in a statement.
Applications received after close of business on July 1,or incomplete applications will not be considered, it added. RBI issued final guidelines for new bank licence in the private sector on February 22 while clarifications pertaining to norms was released on June 21.
RBI while issuing clarification on new bank licence guidelines said, the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier, and promoters would have to transfer their holdings to the non-operative financial holding company (NOFHC) in a stipulated period.
The NOFHC envisages holding of the bank and other regulated financial services entities of the promoters under the NOFHC and prudential exposure norms for the entities. India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.
Ten banks were licenced on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks, and fresh applications were invited.Of the 10 licences issued in 1993, four banks merged with other lenders over a period of time. Times Bank merged with HDFC Bank, while Global Trust Bank was amalgamated with the state-owned Oriental Bank of Commerce.
Delaware, Charging Orders and SMLLCs
House Bill No. 126, introduced in the Delaware legislature on May 9, 2013, would make two amendments to the Delaware LLC Act that would affect the rights of creditors. First, Section 6 of the Bill would Section 18-703(d) of the Delaware LLC Act to read as follows:
(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest and attachment, garnishment, foreclosure or other legal or equitable remedies are not available to the judgment creditor, whether the limited liability company has 1 member or more than 1 member.
House Bill No. 126, 147th Leg., § 6 (Del. May 9, 2012)(underlining in original, italics added). Second, Section 7 of the Bill would amend § 18-1101 of the Delaware LLC Act by inserting a new sub-paragraph (j), to read :
(j) The provisions of this chapter shall apply whether a limited liability company has 1 member or more than 1 member.
Id. at § 7 (underlining in original).
The first part of the amendment to § 18-703(d) elaborates on what “exclusive remedy” means. Among other things, it seems intened to avoid the result in cases such as would avoid the result, in cases such as Hotel 71 Mezz. Lender LLC v. Falor, 2010 NY Slip Op 01348, 14 NY3d at 307, 926 N.E.2d 1202 (2010) (slip Op.) and Olmstead v. Federal Trade Commission, 44 So. 3d 76 (Fla. 2010)(slip Op.), in which courts held that general creditors remedies, such as attachment (Falor) and levy and execution (Olmstead), can be used to reach interests in LLCs.
The second part of the amendment to §18-703(d), and new 18-1101(j) is aimed at the result, in cases such as Olmstead, and In re Albright, 291 B.R. 538 (Bankr. D. Colo. 2003), that allow a transferee of the interest of the sole member in a single-member LLC (SMLLC) to succeed to both the economic and the management rights of the member. With the SMLLC amendments, Delaware joins the race-to-the-bottom for the state most-friendly to the use of SMLLCs for asset p;rotection.
(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest and attachment, garnishment, foreclosure or other legal or equitable remedies are not available to the judgment creditor, whether the limited liability company has 1 member or more than 1 member.
House Bill No. 126, 147th Leg., § 6 (Del. May 9, 2012)(underlining in original, italics added). Second, Section 7 of the Bill would amend § 18-1101 of the Delaware LLC Act by inserting a new sub-paragraph (j), to read :
(j) The provisions of this chapter shall apply whether a limited liability company has 1 member or more than 1 member.
Id. at § 7 (underlining in original).
The first part of the amendment to § 18-703(d) elaborates on what “exclusive remedy” means. Among other things, it seems intened to avoid the result in cases such as would avoid the result, in cases such as Hotel 71 Mezz. Lender LLC v. Falor, 2010 NY Slip Op 01348, 14 NY3d at 307, 926 N.E.2d 1202 (2010) (slip Op.) and Olmstead v. Federal Trade Commission, 44 So. 3d 76 (Fla. 2010)(slip Op.), in which courts held that general creditors remedies, such as attachment (Falor) and levy and execution (Olmstead), can be used to reach interests in LLCs.
The second part of the amendment to §18-703(d), and new 18-1101(j) is aimed at the result, in cases such as Olmstead, and In re Albright, 291 B.R. 538 (Bankr. D. Colo. 2003), that allow a transferee of the interest of the sole member in a single-member LLC (SMLLC) to succeed to both the economic and the management rights of the member. With the SMLLC amendments, Delaware joins the race-to-the-bottom for the state most-friendly to the use of SMLLCs for asset p;rotection.
Choose Your Desktop Publishing Business Structure
Doing freelance design involves more than just saying you're open for business and getting a few clients. You need to choose a business structure. Explore the basic pros and cons of three primary types of business structures*.
*The information in this article applies primarily and in general to US and Canadian businesses. You should always check local laws as to forms of business, registration, and tax requirements.
SOLE PROPRIETORSHIP
The simplest form of doing business, a sole proprietorship is the structure that most freelance designers choose initially. Some stay with this form of business throughout their business life.
As the name implies, a sole proprietorship is an individual doing business under his or her own name or another name that doesn't include legal designations such as Inc. or Ltd. In some municipalities a husband and wife can be principals in a sole proprietorship without choosing a formal partnership or incorporation.
Pros
Easy to set up with few forms to file or fees to pay (generally only need to register an Assumed Name, if used, and obtain a local sales tax permit)
Business income is reported on your personal income tax form (detailed on separate business schedules or addendums)
100% ownership in the company
Cons
You assume personal liability for the business so that your own personal assets can be seized by the IRS or creditor to discharge any business debts incurred.
Doing Business As (DBA) a Fictitious Business Name (Why and How)
PARTNERSHIP
In a partnership, two or more individuals create a legal entity where the partners share in the profits. It's almost as easy to set up as a sole proprietorship although the parties need to draw up a partnership agreement outlining what each partner brings to the table and what happens when the partnership is dissolved. Partnerships can be general or limited, general partnerships being the most common. Limited liability partnerships are not available in all states or to all businesses.
Pros
Only slightly more complicated to set up than a sole proprietorship (drafting the partnership agreement)
When partners are carefully chosen the business benefits from the complementary skills and talents of each partner.
Business income and tax liability passes through to each partner so no separate tax filings are necessary for the entity.
Cons
Each partner can be held financially liable for the actions or inactions of the other partner in connection to the business.
Ownership is shared and depending on how the partnership agreement is drawn up, you may not have as much control of the business as you would with a sole proprietorship.
CORPORATION
Some businesses choose incorporation as a way to protect their personal assets and to take advantage of certain tax benefits. The C Corporation is more complicated than other business structures but may offer greater tax advantages in some situations.
Pros
Debts or other liabilities against the company do not usually pass through to the owners so that the owners personal assets are protected in case of lawsuits or bad debts.
Corporations can raise money by selling shares of stock in the company.
Corporations may be taxed at a lower rate and have better tax benefits than some other forms of business.
Cons
More paperwork, time, and expense is involved setting up and registering a corporation.
Legal requirements in terms of bookkeeping and tax filing is more complicated and expensive on an on-going basis than other business structures.
Ownership is in the hands of the stockholders and managed by the Board of Directors. Your control of the company may be limited if there are multiple stockholders and members of the board.
How to Incorporate Your Small Business in 7 Steps
The C Corporation may be the most familiar but there are other forms of incorporation including the the limited liability corporation or LLC which offers some of the benefits of both a corporation and a partnership and the S Corporation where taxes are handled similar to a partnership or sole proprietorship.
*The information in this article applies primarily and in general to US and Canadian businesses. You should always check local laws as to forms of business, registration, and tax requirements.
SOLE PROPRIETORSHIP
The simplest form of doing business, a sole proprietorship is the structure that most freelance designers choose initially. Some stay with this form of business throughout their business life.
As the name implies, a sole proprietorship is an individual doing business under his or her own name or another name that doesn't include legal designations such as Inc. or Ltd. In some municipalities a husband and wife can be principals in a sole proprietorship without choosing a formal partnership or incorporation.
Pros
Easy to set up with few forms to file or fees to pay (generally only need to register an Assumed Name, if used, and obtain a local sales tax permit)
Business income is reported on your personal income tax form (detailed on separate business schedules or addendums)
100% ownership in the company
Cons
You assume personal liability for the business so that your own personal assets can be seized by the IRS or creditor to discharge any business debts incurred.
Doing Business As (DBA) a Fictitious Business Name (Why and How)
PARTNERSHIP
In a partnership, two or more individuals create a legal entity where the partners share in the profits. It's almost as easy to set up as a sole proprietorship although the parties need to draw up a partnership agreement outlining what each partner brings to the table and what happens when the partnership is dissolved. Partnerships can be general or limited, general partnerships being the most common. Limited liability partnerships are not available in all states or to all businesses.
Pros
Only slightly more complicated to set up than a sole proprietorship (drafting the partnership agreement)
When partners are carefully chosen the business benefits from the complementary skills and talents of each partner.
Business income and tax liability passes through to each partner so no separate tax filings are necessary for the entity.
Cons
Each partner can be held financially liable for the actions or inactions of the other partner in connection to the business.
Ownership is shared and depending on how the partnership agreement is drawn up, you may not have as much control of the business as you would with a sole proprietorship.
CORPORATION
Some businesses choose incorporation as a way to protect their personal assets and to take advantage of certain tax benefits. The C Corporation is more complicated than other business structures but may offer greater tax advantages in some situations.
Pros
Debts or other liabilities against the company do not usually pass through to the owners so that the owners personal assets are protected in case of lawsuits or bad debts.
Corporations can raise money by selling shares of stock in the company.
Corporations may be taxed at a lower rate and have better tax benefits than some other forms of business.
Cons
More paperwork, time, and expense is involved setting up and registering a corporation.
Legal requirements in terms of bookkeeping and tax filing is more complicated and expensive on an on-going basis than other business structures.
Ownership is in the hands of the stockholders and managed by the Board of Directors. Your control of the company may be limited if there are multiple stockholders and members of the board.
How to Incorporate Your Small Business in 7 Steps
The C Corporation may be the most familiar but there are other forms of incorporation including the the limited liability corporation or LLC which offers some of the benefits of both a corporation and a partnership and the S Corporation where taxes are handled similar to a partnership or sole proprietorship.
7 Tasks To Help You Prepare for Business Tax Season
Tax season will be here before you know it, so it's time to prepare. There are some things you can do in the fall so you can hit the ground running in the busy time of January through April. Let's get started:
1. Find a tax advisor. Every business, no matter how large or small, needs a tax advisor, that is, someone who can review your company's financial statements and offer advice on how to prepare taxes, what deductions and credits to take, and how to minimize your tax bill. A good tax advisor is worth the price, and it takes time to find the right person, so if you don't have one, now's the time to start looking.
2. Get tax software. If you have a tax advisor, why do you need tax software? For a small business filing Schedule C, it's good to start working on your taxes and getting the essential information together to take to your tax preparer. Tax software can help you do that. You can get information on possible deductions and credits to discuss with your tax preparer, and you can get your business records in order to make the process easier (and cheaper) for the preparer. Read a comparison of business tax software, some of it available free online (for basic business taxes on Schedule C) or you can order it when it comes out later this fall.
3. Get your business tax records in order.Having complete records of business assets, loans, income and expenses means you will get through tax season more easily and quickly and save money on a tax preparer. It also means more deductions and credits and better results if you get audited. Read more about how to capture information for business records and the details on the records you need for business tax purposes.
4. Review 2012 tax changes. Some changes for 2012 can save you money in depreciation on business assets purchased this year. Other changes will expire in 2011. Read this article on 2012 business tax changes, gather information, and talk to your tax advisor about whether you might benefit from any of these changes.
5. Get forms for payroll taxes. If you do your own payroll tax processing, you will need forms for end-of-year reports. That means W-2s for employees and 1099-MISC forms for contractors, as well as W-3 and 1096 transmittal forms. You must use only IRS-authorized forms. Of course, if you have a payroll processing service, they can prepare these forms for you. Read more about how to get W-2 forms and other year-end payroll tax reporting forms.
6. Consider buying business vehicles or equipment, Depreciation deductions are the highest they have been or are likely to be (it's difficult to go above 100% deductions). Buying equipment in 2012 may allow you to take advantage of bonus depreciation or Section 179 deductions. Bonus depreciation may not be available in 2013, so it may be time to buy that equipment or business vehicle to get the increased deduction. Talk with your tax advisor about this so you have time to shop around and get the equipment. You must put the equipment in service (that is, start using it) in 2012 to take advantage of these depreciation deductions.
7. Review tax due dates for your business type. Don't get caught filing late or using the wrong form.
If you have a small business, including a sole proprietorship, partnership, or LLC, read this Tax Guide for Small Businesses, which includes filing deadlines and forms you will need, as well as information on amended business tax returns and extensions.
If you own a corporation or an S corporation, read this Guide to Corporate Taxes for helpful information on forms and filing.
1. Find a tax advisor. Every business, no matter how large or small, needs a tax advisor, that is, someone who can review your company's financial statements and offer advice on how to prepare taxes, what deductions and credits to take, and how to minimize your tax bill. A good tax advisor is worth the price, and it takes time to find the right person, so if you don't have one, now's the time to start looking.
2. Get tax software. If you have a tax advisor, why do you need tax software? For a small business filing Schedule C, it's good to start working on your taxes and getting the essential information together to take to your tax preparer. Tax software can help you do that. You can get information on possible deductions and credits to discuss with your tax preparer, and you can get your business records in order to make the process easier (and cheaper) for the preparer. Read a comparison of business tax software, some of it available free online (for basic business taxes on Schedule C) or you can order it when it comes out later this fall.
3. Get your business tax records in order.Having complete records of business assets, loans, income and expenses means you will get through tax season more easily and quickly and save money on a tax preparer. It also means more deductions and credits and better results if you get audited. Read more about how to capture information for business records and the details on the records you need for business tax purposes.
4. Review 2012 tax changes. Some changes for 2012 can save you money in depreciation on business assets purchased this year. Other changes will expire in 2011. Read this article on 2012 business tax changes, gather information, and talk to your tax advisor about whether you might benefit from any of these changes.
5. Get forms for payroll taxes. If you do your own payroll tax processing, you will need forms for end-of-year reports. That means W-2s for employees and 1099-MISC forms for contractors, as well as W-3 and 1096 transmittal forms. You must use only IRS-authorized forms. Of course, if you have a payroll processing service, they can prepare these forms for you. Read more about how to get W-2 forms and other year-end payroll tax reporting forms.
6. Consider buying business vehicles or equipment, Depreciation deductions are the highest they have been or are likely to be (it's difficult to go above 100% deductions). Buying equipment in 2012 may allow you to take advantage of bonus depreciation or Section 179 deductions. Bonus depreciation may not be available in 2013, so it may be time to buy that equipment or business vehicle to get the increased deduction. Talk with your tax advisor about this so you have time to shop around and get the equipment. You must put the equipment in service (that is, start using it) in 2012 to take advantage of these depreciation deductions.
7. Review tax due dates for your business type. Don't get caught filing late or using the wrong form.
If you have a small business, including a sole proprietorship, partnership, or LLC, read this Tax Guide for Small Businesses, which includes filing deadlines and forms you will need, as well as information on amended business tax returns and extensions.
If you own a corporation or an S corporation, read this Guide to Corporate Taxes for helpful information on forms and filing.
Tips For Surviving Your First Year in Business
How's Your Personal Bank Account?
Few small businesses make much profit their first year - if they make any profit at all. Even with a low-start-up cost business, you will eventually need to invest money into your business in order to grow it by expanding products, services, moving into new geographic territories, or hiring others to help you. The old, familiar saying it true: It takes money to make money.
Rule of Thumb: Have one year of savings already in the bank to live off before you quit your day job.
If you are not planning to personally fund your business, raise capital before you launch the business. The promise of money is never as good as cash in your bank account.
How to Ask Family and Friends for Money
Steps Before You Personally Guarantee a Business Loan
Protect Your Marriage By Not Becoming Overprotective About Your Business
If you are married, be honest with your spouse before quitting your job and say that business is unpredictable and you may need to rely on their income for an undetermined period of time. It is better to be surprise by a "good" month than by a "bad" month.
You should also discuss how you will deal with the business as a couple. Establishing early on who will do what (if you work together) will save you the heartache of arguing about the businesses ups and downs. If you have young children, expect them to become jealous if you spend more time working than you do with them. Allowing them to help in small ways can add up to big rewards.
If you become territorial about your business instead of involving family, you are guaranteed at least some friction. Even when family members (and friends) offer bad ideas, praise them and validate them for caring. See their input as a desire to help you succeed and not as criticism of you.
Putting aside your pride and Having thick skin will help you make better business decisions and keep your interpersonal relationships healthy and strong.
5 Tips For Working With Family
How To Work With Your Spouse
The Importance of Involving Your Family In Your Business
A Rainy Day Will Come
Other first-year start-up costs include insurance, taxes, and unexpected expenses. For example, most businesses need some form of technology to operate smoothly. If your computer dies or needs to be upgraded, you could be dead in the water if you do not have funds to draw on the handle emergencies.
Although savvy new business owners will factor in some rainy day costs for the businesses, they may forget the need to factor in personal rainy day events. If you have taken the plunge and are relying on your business for income, what happens if your business cannot pay you and you incur unexpected medical expenses, your car or home needs a major repair, or you need to upgrade your business wardrobe to impress clients?
Before You Get Too Excited About Profits…
Money is coming into your business and you are (and should be) doing cartwheels. But do not forget that you will need to pay quarterly taxes to the federal government and your state on any profits made.
Unless you are not going to owe any taxes for the year, you need to budget to pay taxes. Depending upon your business structure, this could mean payroll taxes as well as income taxes.
Many localities also base business license fees on how much money you make. Have a profitable year and your business license could cost you more next year.
How To Save On Business Taxes
IRS Payment Options If You Are Having Trouble Paying Your Business Taxes
Paying Yourself
The most important start-up cost to consider is your own salary. Many business owners are willing (and expect) to work for free, or at a reduced salary while they establish their businesses. However, you will still have personal expenses and bills to pay outside of your business expenses. If you do not have personal funds set aside to cover months where the business is not bringing in enough income to pay yourself, you will quickly find yourself in a difficult place.
Have a Backup Parachute In Place
If you form a sole proprietorship you and the business are essential one legal entity. If someone sues the business, they can collect from your personally. If the business has debts - they are your debts.
If you start a corporation, you limit your financial liability, however, you could also be booted out of your own business if your board of directors rallies to fire you.
To protect your long term personal and business future, be sure to research the various types of business structures to choose the one that makes the most sense for you. Just because your friend chose one type of business structure, does not mean it is right for you.
Types of Small Business Structures
Ask yourself in advance -- what happens if the business fails and you have already quit your job? The unexpected will not catch you off guard if you plan ahead. Losing a business is hard enough to deal with - losing your home because of a failed business is far worse.
Few small businesses make much profit their first year - if they make any profit at all. Even with a low-start-up cost business, you will eventually need to invest money into your business in order to grow it by expanding products, services, moving into new geographic territories, or hiring others to help you. The old, familiar saying it true: It takes money to make money.
Rule of Thumb: Have one year of savings already in the bank to live off before you quit your day job.
If you are not planning to personally fund your business, raise capital before you launch the business. The promise of money is never as good as cash in your bank account.
How to Ask Family and Friends for Money
Steps Before You Personally Guarantee a Business Loan
Protect Your Marriage By Not Becoming Overprotective About Your Business
If you are married, be honest with your spouse before quitting your job and say that business is unpredictable and you may need to rely on their income for an undetermined period of time. It is better to be surprise by a "good" month than by a "bad" month.
You should also discuss how you will deal with the business as a couple. Establishing early on who will do what (if you work together) will save you the heartache of arguing about the businesses ups and downs. If you have young children, expect them to become jealous if you spend more time working than you do with them. Allowing them to help in small ways can add up to big rewards.
If you become territorial about your business instead of involving family, you are guaranteed at least some friction. Even when family members (and friends) offer bad ideas, praise them and validate them for caring. See their input as a desire to help you succeed and not as criticism of you.
Putting aside your pride and Having thick skin will help you make better business decisions and keep your interpersonal relationships healthy and strong.
5 Tips For Working With Family
How To Work With Your Spouse
The Importance of Involving Your Family In Your Business
A Rainy Day Will Come
Other first-year start-up costs include insurance, taxes, and unexpected expenses. For example, most businesses need some form of technology to operate smoothly. If your computer dies or needs to be upgraded, you could be dead in the water if you do not have funds to draw on the handle emergencies.
Although savvy new business owners will factor in some rainy day costs for the businesses, they may forget the need to factor in personal rainy day events. If you have taken the plunge and are relying on your business for income, what happens if your business cannot pay you and you incur unexpected medical expenses, your car or home needs a major repair, or you need to upgrade your business wardrobe to impress clients?
Before You Get Too Excited About Profits…
Money is coming into your business and you are (and should be) doing cartwheels. But do not forget that you will need to pay quarterly taxes to the federal government and your state on any profits made.
Unless you are not going to owe any taxes for the year, you need to budget to pay taxes. Depending upon your business structure, this could mean payroll taxes as well as income taxes.
Many localities also base business license fees on how much money you make. Have a profitable year and your business license could cost you more next year.
How To Save On Business Taxes
IRS Payment Options If You Are Having Trouble Paying Your Business Taxes
Paying Yourself
The most important start-up cost to consider is your own salary. Many business owners are willing (and expect) to work for free, or at a reduced salary while they establish their businesses. However, you will still have personal expenses and bills to pay outside of your business expenses. If you do not have personal funds set aside to cover months where the business is not bringing in enough income to pay yourself, you will quickly find yourself in a difficult place.
Have a Backup Parachute In Place
If you form a sole proprietorship you and the business are essential one legal entity. If someone sues the business, they can collect from your personally. If the business has debts - they are your debts.
If you start a corporation, you limit your financial liability, however, you could also be booted out of your own business if your board of directors rallies to fire you.
To protect your long term personal and business future, be sure to research the various types of business structures to choose the one that makes the most sense for you. Just because your friend chose one type of business structure, does not mean it is right for you.
Types of Small Business Structures
Ask yourself in advance -- what happens if the business fails and you have already quit your job? The unexpected will not catch you off guard if you plan ahead. Losing a business is hard enough to deal with - losing your home because of a failed business is far worse.
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