Integrations That We Provide, To Make Your Life Easier

Managing money, accounts, finance and other monetary issues for your venture is crucial and needs to be given ample importance. As the size of the company increases, accounting entangles and hence, you might find yourself distracted. If that has ever happened to you, this article is specifically for you!

Online vs. Offline Cash Flow Management

When it comes to comparing offline and online cash flow management, managing online is always easier and a go-to option. When something can be done in 2 minutes, why invest 2 hours in doing the same?

Online accounting and invoice creation is not only a cakewalk to create but also takes a jiffy to look back.

numberz, always at your service

We at Numberz, not only have created a trouble-proof way of managing your accounts, invoices, and expenses but also provide various other features to make your life easier. Hence, we have integrations as a path to smooth accounting.

The integrations, and how to use them!

 

  1. Excel at your fingertips!excel invoice

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Creating invoices in bulk is a tedious task, but is supposed to happen every month.

So, what do you do when you need to create bulk invoices?

Fill each one manually? Or scratch your head to find certain better ways of managing invoices?

Let’s save up some time for you. Creating excel sheets are easier as you can copy paste easily. Right? You can use that for creating invoices in Numberz as well. Just create an excel sheet and upload into your debtor list here. You can reach this page by going to the invoice section and selecting ‘Import invoices’ from the dropdown at the top right corner (near ‘add invoice’ button).

Not only can you import invoices through excel, you can do same for expenses. Just navigate to expenses, from your dashboard and click on ‘Import Bills’. In case of any confusion, there is always a ‘guide me’ section to help you.

 

  1. The Tally Integrationinvoices on tally

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We understand that almost every accountant is in love with Tally and when you’re onboard for using numberz, you don’t need to hassle enough to get into your next favourite platform. Follow the given simple steps to integrate numberz and Tally smoothly.

Note: You’d need three things for this integration.

  1. Chrome plugin that you can find here
  2. Registration on numberz
  3. Tally on your system

For using Tally integration and for syncing all the invoices and debit notes to Tally, follow the steps as given here.

  1. Banking integration

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The payments of the invoices are done through bank accounts, and creating invoices but not syncing with the bank account, might cause balance mismatch. To overcome this issue, we have ‘Banking Integration’. By using bank reconciliation you can easily associate your bank transactions with your invoice line items.

For syncing your bank transactions and your invoices, follow the steps given here.

  1. Partners integration

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Partners integration is the term that we have given to our tie-ups with NBFC and various other banking organizations, for providing a credit line to help businesses from running out of money.

The easy integration and well-defined ways of using them are all meant for making cash flow easy and invoice management even easier. We at numberz understand that it is important to make accounting smooth, but we also know that it is even more important to be comfortable with a software, to use it frequently, and that’s why we have these integrations and much more in the pipeline for the coming releases. We hope you’d find them useful.

Doubts? Problems? Confusion? Need help? Get in touch, anytime!

Stress vs. Growth, Team Up With numberz

With the growth of digital age, and the advent of social media, the marketing has changed a lot for everyone, for every sector, and hence the competition has become tremendously perplexing. The existence of your venture needs to go through a lot. If you want to grow, you need to pull yourself out of the entangled and vicious cycle of this deadly competition.

 

While the competition might be a lot for calling forth problems to the ventures, it is not the only stumbling block on the way of success. Once you place yourself on the path of becoming a businessman (or a businesswoman), the options multiply and so do the problems. But do you have apt resources to cope with your problems? Do you have enough time to invest into the important and more important stuff?

You ask what problems? Well, let’s look at them one by one! (And we’ll elaborate how you can cope with each one of these, very smoothly)

 

Translating your cash gap

We, have come up with the credit line for businesses, in which we get basic data from you and after calculation of your turnover and your CIBIL score. You get your cash gap, also known as ‘valley of death’, filled and hence your business grows better than ever. We bridge your cash gaps and hence help your venture prosper!

 

With a 4 step process, you get the credit line, and hence the cash management becomes better than ever. Your contact details, your financial data (just the basic one), and BOOM, you get a way to fill up your cash gap!

 

Ease prioritising payments, with numberz

The expense is one thing that needs to be managed very efficiently. numberz makes it easy to get real-time insights upon your cash-flow, and hence you decide what must go, where, and how much? Your bank accounts, your expenses, and your business, all stays in pace, according to you!

 

Paperwork is a headache to manage, and with numberz, you don’t need to entangle yourself into that! You can create new bills online and can upload or import old bills using Excel. As easy as, single click.

Similar to your invoices, your expenses need reconciliation too. But why to do that manually, when we can do that for you? Your bank account will always be in sync with your expenses and invoices, no matter what!

When you are able to see your business cash flow, the payments will be easily prioritised, and with prioritising, the horizon of growth expands immensely.

Integration, for a smooth working pattern

Most of the data flow related to finances is saved and pondered upon in Tally and Excel. We understand that your systems must not be hampered. Hence we provide integrations with both of these. The flow, the integrations and the finance, all appear to be a very important set, that must be taken care of.

We help you manage your invoices, your expenses, your advances (on invoices), your account collaboration, we help you be in sync with your bank, and we integrate Tally and Excel for your smooth workflow.

 

Don’t let invoicing vex you

When you are continuously involved with your work and you need to look into various factors, missing a payment is something that can happen. But, you can NOT miss a payment. Right?

Well, we at numberz, make sure you do not miss any of them!

How? You ask?

You can create effectual invoices, in a jiffy, and can accept online payments quickly. This means you’d get paid faster. Your invoices can be estimated and created effortlessly, within a few clicks. You’ll have e-mail integrated, and hence you can send payments and reminders via e-mail. The invoices will be tracked and balance your cash gaps when you receive payments.

 

Advantages of invoicing with numberz

Your business will be GST ready, and hence deadlines won’t startle you!

Have you heard someone say, “Looks do not matter”? Well, that person was wrong. Why? Looks matter, and hence your invoice must be professional enough. For this, we provide already created templates, which can be e-mailed instantly.

Cash nuisance is something that irritates most and hence, Numberz provides you with a platform where clients can pay you via online options, be it net banking, online wallets, credit cards or debit cards. No more wrangles over payments!

Delay in payments is something that every business has to go through, but now you can send reminders and hence can quickly follow-up upon the payments.

Invoice reconciliation consumes a lot of energy on the part of accounts, but why waste time when your invoices can directly be matched with your bank accounts. No more manual intervention required!

 

 

With all these features at hand, what is important is accessibility. All the expenses, invoices and every other feature that you’ve loved about Numberz, are accessible everywhere you go, and on every device you use. The power of the Internet has emerged to be a vital factor that is ruling the world when you can, why don’t you use the internet as your helper?

 

Growing beyond horizons and expanding your venture in the direction of your dreams requires a lot of tough decisions and a lot of efforts. Entwining yourself amid the selection of the tool to use and investing your energy only on your finances, you might get distracted from your real passion. Your passion is the sole reason for your venture’s existence, and it must be given sufficient value. We, at numberz, understand this and hence have made the process of receiving payments, deciding expenses, and getting pre-approved loans, so smooth that you need to invest only a few clicks to your accounts and finance. Retain your energy for the real you, the real cause that your venture stands for; and we have the accounts issue resolved for you!

Let us know about the problems you are facing at hello@numberz.in

Let’s Fill The Cash Gaps

If you have registered yourself on Numberz or are checking out the way it works, you are most likely a person working around money for your enterprise, and hence, you must have witnessed cash gap yourself or have seen someone you know, go through.

 

The world revolves around businesses and businesses have money in their core, and hence ‘steps in’ the most dangerous problem of any business, “the CASH-GAP.” Some refer to it as ‘valley of death,’ for businesses, of course.

 

Having heard the word twice now, what exactly is cash gap?

Well, remember that time when you were waiting for a pending payment from a client, and a new investment requirement slammed itself on you?

That situation of you short on money for putting into the investment requirement is called cash gap.

 

According to the ‘Gompers and Lerner study,’ this challenge is the cause of 90 percent dying ventures within the first three years of their establishment. Well, don’t be one of them!

 

Cash Gap Is An International Problem

Most of the countries in the world are either developing or underdeveloped and hence the growth and failure of businesses is highly dependent on the cash flow management.

 

India And The Culture Of Business

As per stats, businesses and self-employment are the most prominent source of employment growth and contribute a major share to industrial production in India. This leads to even more pressure on the businessmen to maintain themselves and their identity.

 

Your Objectives And Financial Goals

Normally businesses need to invest in two type of goals, the short-term objectives, and the long-term objectives. Both of these behold equal value and hence the need to struggle in both the arenas steps in. This makes the exertion even harder.

 

Plan, Monitor, And Control

When it comes to cash management in enterprises, planning is the key. You need to plan by keeping in mind, all the buffers (and problems) that may arise and then monitor accordingly. While monitoring is important, it is also equally significant to control your expenses to expect most out of your investments.

 

Why Not Banks?

Cash gap and lack of cash management is a huge problem for all the springing enterprises, as huge as it leads to a summation of rupees 2.95 trillion (when cash gap is summed, of course). This gap is ever expanding, the reason being, the businesses especially SMEs are firms with financial requirement quite large for microfinance to be possible, but quite small for being solved by corporate banking models. SMEs are also a little riskier to be invested in when compared with corporations, and hence banking models in India are not very supportive.

 

How To Be Safe And Productive?

Ploy With Strategy!

Your strategies must include the cash management, liquidity management and lowering the cash gap. For all this to be possible, you need to know your clients and hence their way of working. You also need to have ample buffers, so as to avoid the vicious cycle of debt.

 

Give Government Methodologies, A Try!

Looking at the huge part of the economy that businesses and organizations like them are supporting, the government is also stepping in to help the growth rate rise. MUDRA is a scheme launched by the government, for funding the SMEs. It is an initiative having the sole intention of upliftment of SMEs and start-ups and hence the economy in general. The government has also launched ‘Make in India’ and ‘Start-up India’ schemes, which might benefit you. Remember that for this source to help you, you’ll need quite a lot of efforts, so prepare yourself before jumping into the realm of government funds!

There is one more way to escape the ‘valley of death’ and reach the heights of your dreams!

 

We at Numberz, have come up with a way of filling up the cash gap that stays only between you and us! We provide ‘credit line’ to our customers.

 

Well, you ask, what is ‘credit line’?

It is a pre-approved loan for those businessmen who are in dire need of finances. We provide working capital loans on the basis of your turnover and CIBIL score (or credit score). When you need to apply for a loan or need to cope up with a cash crunch, the maintained credit score (a.k.a CIBIL score) always helps.

 

How is it useful, or better than other methods?

It is not like this is the best among every possible option but the most feasible and easily accessible one. We understand that your energies must be invested in coming up with dazzling ideas to make your business best and that you must not be itching your head searching for options to get financial support. Hence, the credit line is just a few clicks away from you.

 

How can you get the credit line?

This is a 4 step process (we are not lying):

Step 1: Share your contact details with us.

Just the basic one, you know, we’ll need to be in touch, to make the process as smooth as possible.

 

Step 2: Share the most basic data

We’ll need the company details and a few documents for enrolling you up for the credit line. Trust us, they are the most basic ones.

 

Step 3: Determine your credit line

You get to determine your credit line limit, and we’ll guide you according to your turnover and your documents.

 

Step 4: We’ll get back to you

Relax. Work. Invest time in meaningful things. We’ve got this covered.

 

You feel it’s too simple to be possible?

Well, that’s what we’re here for.

 

With all that being said and your cash gap bridges in place, we always want your best. We’ll be on your side, whenever you need us and your brainchild will prosper like never before. Because, now, you can give it your full attention.

Got any question? We’re here to help. Feel free to reach us!

Small Business Finance

5 Small Business Finance Basics You Must Understand

Finance is at the core of every business- there is no denying that. However, while large businesses can afford to have the best finance gurus to keep tabs on the money, small businesses often have to learn a lot of these things through trial and error. There are many moving parts in the finance management system which is why it can be overwhelming to keep everything under control.

Here are five small business finance basics that you should understand to run your company efficiently:

1. Profit Margin

The first thing to understand about margins is that they are of two types- gross and net. The former is used to measure the profitability of a single commodity. So, if it costs you Rs. 2000 to make a product and you are selling it at Rs. 2500 then your gross margin is Rs. 500. Most small businesses use gross margin as a metric for their profits. However, looking at the big picture it isn’t of much use, and here net profit margin comes into effect.

Net profit margin is calculated by deducting all of your business expenses from the total sales and dividing that figure by the total revenue. So, if you generated Rs. 3 lakh in revenue last year, and your total expenses were Rs. 1 lakh then your profit margin can be calculated as:

Profit margin= (300,000-100,000)/300,000 =  .66, or 66%

It is important to note that profit margins are industry-specific. Thus, you will find that business owners in some industries make more money than those belonging to other industries. For instance, many big food companies have net margins of just 4% or 5%. However, consultancy companies can have way higher margins, because the overhead there is little.

When you start your business, your margins are usually high, but as it scales you have to buy more equipment and hire more staff, which eventually lowers the gross margins. However, the net margin is what matters at this point, and it can increase if you make the right business decisions.

2. The Balance Sheet

Balance sheets serve as a financial dashboard for your company which you can refer to at any point to time to get a quick understanding of where you stand financially.

There are three main components of a balance sheet, which are:

Assets

There are mainly two kinds of assets: current assets and non-current assets. The former are most likely to be converted into unrestricted cash within one business cycle (12 months in most cases), but the latter will not. Inventories, accounts receivables, etc. are considered as current assets.

If you have a large number of assets or cash on your balance sheets then you can attract investors easily. This is because these can be used for protection in rough times or for scaling the business in future.

Liabilities

Just like assets, liabilities are of two types: current liabilities and non-current liabilities. Current liabilities are obligations that must be paid within one business cycle, such as payments pending for suppliers, etc. Non-current liabilities are long-term obligations such as loan debt, etc.

Equity

Equity is the ownership interest of shareholders in your company. It can be calculated by deducting total liabilities from total assets. Thus:

Equity = Total Assets – Total Liabilities

Businesses often have to sell equity shares to raise capital for purchasing equipment, making investments, etc. However, each time you sell you lose a portion of your company. Thus, you would want to hold onto to your business as much as possible. Selling an investor 51% or more of your business in equity means giving away the decision power. This can change everything, and thus be chosen only as the last resort.

3. Cash flow

Cash flow is the total amount of money that comes in and goes out of your business. It is one of the most important numbers that you and your stakeholders should know about. Unfortunately, it is often overlooked in lieu of other numbers on the balance sheet and income statement, etc.

New businesses often use the phrase “to be cash flow positive”. It means that you are bringing in more money than you are spending. Similarly, to be cash flow negative means more money is being spent than generated. Or in other words- the business is actually losing money.

It is important to make cash flow projections a part of your budgeting process to stay on top of the financial activities. Not having a sound understanding of how cash flow works can lead to disastrous results. For instance, you can end up waiting for payments from clients while there are several bills to be paid already. There should be sufficient cash flow so that you can cover all the expenses while staying cash flow positive.

4. Business Financing

Funding is one of the major challenges that small businesses have to face. Whether you need initial funding to start a business from scratch, or to meet short-term obligations it is important to get the money from the right source. Making a wrong decision here can have serious repercussions that includes losing a large portion of your company. The following are two of the most common business financing options that you can consider:

Debt Financing: Debt financing is the simplest way to fund a business. It works the same way as any standard personal loan or home loan works. To get a business loan you can simply contact a bank or a P2P lender (which is becoming more popular lately) and submit an application for the same.

Equity Financing: Businesses only go for equity financing when they are unable to get a business loan. This is because while you don’t get debt on your hands in this method you lose something even bigger- a part of your company. You basically sell off your company share to a venture capitalist. So, you don’t have to pay back the money, but the seller becomes a part-owner.  Equity financing is also more complicated than debt financing. You have to consult with the existing investors before making decisions and work on the legal aspects of the transaction before finally receiving the money.

5. Payroll Calculations

Payroll processing is comprised of calculation of payments that you make to your employees. Since there are several factors involved the process can be quite complicated.

According to the minimum wages act of India, you have to include some mandatory components in their payrolls, such as Basic (basic salary), DA(Dearness Allowance), and HRA(House Rent Allowance). You also have to make certain deductions from the salaries in the form of TDS (Tax Deducted at Source), etc.

Understanding business finance basics is imperative to a successful business. Without this money management can become complicated and difficult to track. Thus, it pays to get a sound understanding of how the business finance works and use it for making the business decisions.

how to manage cash flow with a small business loans

How to Manage Cash Flow With a Small Business Loan

Cash flow is the lifeblood of every business, whether it’s big or small. However, when small businesses or startups have to take business loans, it changes everything. Not only the business has to maintain enough cash flow so that they can pay for inventory, staff, and other expenses but also the loan installments as well. Money management also becomes a challenge as there are several factors to keep an eye on.

If you are having difficulty in managing your business cash flow along with a small business loan, then here are a few tips that can help you:

Planning Ahead

Don’t leave any room for surprises. Nothing is more daunting than desperately searching for cash when you have to pay your employees or the loan EMI that’s pending. It always helps to keep a record of your previous cash flow statements and expense reports when you have to anticipate future expenses. This will help you maintain a healthy cash flow as you can easily check where your money is going and what’s to come in future.

Shrinking Cash Outflows

Running a business along with a loan can make it difficult to stay cash flow positive. While you can’t usually reduce your loan EMIs easily you can still reduce your cash outflows to some extent by:

  • Buying used equipment: Why invest in 100 new computer systems when you can get used ones for less than half the price? If you are lucky you can get them in excellent condition at a local auction or at a classified ad posting website.
  • Cutting Down on Luxuries: Hosting weekly office parties can be good for boosting the morale of your employees, but when you have to save money such kind of luxuries can be avoided, at least until the loan is fully repaid.
  • Finding a Better Provider: Many businesses depend on vendors who supply hardware or software services to them. Maybe you can replace your existing vendor with someone else who is providing equally good services at better prices.

Securing a Line of Credit

With the rise of new FinTech companies, even small businesses are now able to enjoy a variety of financing services. One of these is Line of Credit or LOC.

An LOC is akin to traditional loans, but you only need to pay interest on the amount withdrawn. For instance, say you secured an LOC of Rs. 3 lakhs from a financial institution, then this is the amount of credit available to you. You don’t have to pay a penny until you actually withdraw the money. So, if somewhere along the way your business runs into some problems with the cash flow then you can withdraw a portion (or even full amount) of the credit amount, say Rs. 1 lakh. With this, you only need to pay the interest and the fees (if applicable) on the withdrawn amount only, which in this case is Rs. 1 lakh.

LOC is a really convenient and affordable option if you want leverage when you have a business loan but need to maintain cash flow at the same time.

Becoming Stringent With Payments

Do you let your customers delay payments without any repercussions? This could be extremely bad for your business. You can’t organize your expenses and keep the cashflow under control unless you get your payments on time. You can thus create a strategic process for dealing with delinquent payers that could involve:

  • Sending an initial email 10 days following receipt asking for payment.
  • Calling up the customer directly after 20 days for the payment.
  • Sending away a clerk to the customer’s address in person for payment collection.

Being nice is one thing, but in business you should not let your emotions affect your decisions. You can’t run your business successfully if won’t put your feet down when needed.

 Embracing Technology

Since small businesses often have to struggle to create an identity and obtain market share, it doesn’t help that they have to track their expenses as well which alone by no means is a walk in the park. Thus, it helps to have a specialized software that can do all the formatting, updating, and calculation of all these expenses for you. If anything, this makes one less thing to worry about, and you can use the time saved in building your business.

Cash flow Management at a Whole New Level

A comprehensive business software can greatly improve your existing cash flow by limiting the margin of errors in calculations and expediting invoicing and payments altogether. Here is how you can make the most of it:

Organizing Your Billing Schedule

You should keep a track of pending payments and send the invoices on time every time. This ensures that your cash flow doesn’t dry up and your business stays operational. You can also take care of your loan payments without worrying about debt accumulation when you know that everything is on schedule. Managing the same without an automated system can be quite difficult, and thus not even advised by most professionals.

Keeping the Pricing in Check

Are you charging adequately for your services and products? Many times businesses become so caught up with expansions and other business operations that they delay raising prices with inflation, etc. This can be detrimental to the cash flow. However, with a billing software you can easily check if you are imposing reasonable tax on the products, and price them adequately as well. You may need to charge certain clients more due to some extra services, their location, or requirements, etc. This can make creating custom invoices for them difficult. With an Invoicing software, you can easily customize a base template depending on your clients. You can add or delete certain fields from the invoice as per your requirements and send custom invoices in a matter of minutes.

Analyzing Weekly Cashflow Statement

Monitoring your cash flow is extremely important to ensure there is a healthy balance between the cash that’s incoming and outgoing. There are so many expenses to cover, loan payments to take care of, employees to be paid, and more. At the same time money can come from various sources- individuals, businesses, and more. The best way to review these transactions is to use a billing software that can provide all the details in an organized and simple manner. You can check these details on a weekly basis to ensure you are on track. Even if for some reason you notice that the cash flow is depleting you can pinpoint the weakness and take appropriate measures for restoration.

numberz is one of the few business management software in India that comes with a full range of tools and services that can take your company to the next level. In an industry where businesses are facing neck to neck competition, automated software can certainly give you an edge and improve the cash flow.

6 reasons why you shouldn't use excel to manage finances

6 Reasons Why You Shouldn’t Use Excel to Manage Finances.

  1.  If only Excel was designed to create professional invoices or email them.Create Professional Invoice

  2. If only Excel could analyze your money for youReal Time Tracking Of Your Invoices

  3. If only Excel could talk to your bank.Auto Reconcile your bank account

  4. If only Excel could get you a loan.Wokring Capital Loans For Small Businesses

  5. If only Excel could help you get paid faster.get paid faster

  6. If only Excel could be mobile like you.invoice mobile app

 

Submit your contact details & we will tell you how numberz helps you manage business finances.

 


Everything you’ve ever wanted to know about working capital

When you start your own business, and don’t come from a finance or accounting background, there are certain terms that you must learn and working capital is one of them.

What is it exactly? Let’s take a look…

Working Capital can be understood as the measurement of the operating liquidity of a company.

Why is important?

This is important as it allows startups to:

  • Borrow
  • Increase their share value
  • Meet short-term debts
  • Pay expenses

Working Capital is essential acts as the lifeline of the company when there are limited options for startups to finance themselves and move past their breakeven point. It is a measuring tool that gives insights into a company’s financial structure.

The five sources that startups use to procure working capital are:

1. Utilising venture capital: With Venture Capital funds, you are assured a sizeable investment and the best mentorship in the business. This enable you to plan how you can scale your business. Venture Capital is best suited for small businesses that are looking at expansive growth. Though VCs look to help your company grow, they also look to capitalise on their investments.

2. Raising equity: A good way for your business to become profitable is through issuance of equity and short-term working capital funds. When your personal finances diminish, equity shares will create the required capital necessary to help your business grow. You need to determine the rate of dividend per share based on the profits earned. This allows a business to reduce their financial burden but you will need to give up some company ownership.

3. Discounting Bills of Exchange: When your goods are sold on credit, you can draw a bill of exchange for goods that are sold. These bills of exchange include the acceptance by the buyer to clear the bill on the date of maturity. Your firm can discount these bills of exchange with a commercial bank for a bank discount. This will help you raise finances when payments are due for a cost against the bill of exchange that you make with the bank.

4. Acquiring short-term notes: When you establish a good relationship your bank and they are willing to provide you with a short-term note based on inventory, orders and future receivables. This is undertaken by the bank against a guarantee that is issued by the borrower against a collateral for business needs only.

5. Building a line of credit: Most banks do on not offer a line of credit to new entrants but exceptions are made for businesses with a good equity and sound collaterals. A line of credit provides startups the funds needed for short-term needs. These funds are repaid when the accounts receivables have been collected.

 The benefits of having a sound working capital strategy is that banks provide funding based on assets that will be purchased and expenses that would be covered. Letters of credit are given as a guarantee for non-funded facilities that are made on credit and available in the local and foreign currencies. By having a sound command over your working capital, you can control your operating expenses, purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit and other similar instruments.

Start-up Costs your Business needs to take into Account

It’s great starting up on your own and finally getting your business plan off the ground! But before you know it, you could run out of steam. Your budget and financing will decide the course of your business so it important to analyse you initial expenses and avoid stumbling on the way.

Gauge Your Start-up Expense:

Before you draw a budget for your start-up costs, evaluate your business requirements. Once you know how your business needs to be set up and run, you can chalk out the two types of expenses – one-time and periodic. Base your expenses on a yearlong plan that takes into account changes that may occur in the market. Avoid optional expenses and concentrate on absolutely essential resources – employees, office space, and equipment – with quality output. This will help you also cover expenses quickly with a profit margin. Your start-up costs will help you get a clearer sense of your cash flows and you can adjust your payment cycles accordingly.

Now, let us take a look at four costs you need to be aware of as you set out to be the boss of your own business:

1. Setting Up:

Setting up your office is the next step in getting your start-up going. You will need to consider the following expenses while setting up your business physically:

  • Purchasing/renting/leasing an office space along with basic furnishing
  • Purchasing one-time office equipment
  • Buying softwares and digital tools for all your business works
  • Setting up communication needs like internet and phone lines

These are one-time costs that you will incur in the first year of your business, after which maintenance costs for communication, softwares and office space may arise. These are essential expenses that you cannot ignore so make sure that you are backed up well by your finances.

2. Resources and Vendors for your Business:

To get your business working, you will need resources – a team that will see you through in delivering every little aspect of your business. Always review who you hire and don’t make the mistake of expanding your team too quickly in the initial phases. A small team with good deliveries is more impactful than a larger workforce with average returns. Hire the essential ones but make sure you pick the best ones. For periodic business operations, you can even outsource your work or hire freelancers to do the job. Do not compromise on paying extra for quality staff as they hold the potential to give your business huge turnovers.

3. Estimated Cash flow and Recurring Expenses:

While starting a business, it is often hard to recognize how your business will progress. Operational costs, however, will keep running and you will need to take these into account as part of your initial costs. These will include utility bills, employee salaries, software registrations, and employee benefits. Besides, you will also need to consider a range of miscellaneous expenses that may arise, such as – travel costs, communication reimbursements, insurances, etc. While assessing your recurring expenses, estimate your cash flow and possible turnovers every month. This will help you determine how much amount to set aside from your start-up capital.

4. Promoting Your Business:

Once your business is set and existing, your consumers and clients will have to be made aware of your presence in the industry. Initial marketing costs will include:

  • Name and branding
  • Outdoor promotions like posters or hoardings
  • Digital promotions like social media ads, SEO, and sales campaigns

Your promotional content should include what makes your business different and what your prospective customers should take notice off. If you choose to outsource your advertisements, ensure that you message is clear and your product gains the right amount of visibility to leverage paying customers.

By determining these costs, you will be at a better position to review payments that should be made and spend on those that provide a significant change to the business. With these guidelines in place you will be in the best possible position to have a check on payments and smoothly get your business off the ground and running.

Getting a Bank Loan: It’s easier than you think!

We’ve all heard that it takes money to make money and when it comes to growing your business, this is true. When looking to grow your business, you could use your own savings, borrow from family or friends, run a crowd sourcing campaign, or take a bank loan.

Bank loans are one of the most traditional ways of getting funding for your business and in this post we will take a look at what you need to know if you are considering taking a loan. It’s all about thinking smart and finding the best one that works for you.

Step 1: What is the amount?

When you’re building your dream, it is easy to sometimes get lost in the clouds. So in step one, you need to have your feet firmly on the ground as you decide how much you actually need. A great way to start is by making a list of the expenses you might have. Talk to a friend or family member that owns a business- ask them about the costs they expected and the ones that threw them for a loop. When you know how much you will need to spend, you will have an idea of how much to ask for from a bank loan.

Step 2: Think like a banker

As an entrepreneur, it is important that you are able to see all aspects of your business from various angles. You will need to play the role of planner, innovator and finance head. While there are different technologies such as invoicing apps or banking apps that can make your life easier, when it comes to a loan, you need to start thinking like a banker. Have a preliminary meeting with your personal banker and get an understanding of what is required from you and the questions you will need to answer when applying for a business loan.

Step 3: Find Your Credit Score

If you check the website of any major bank or lending organisation, you will notice that they have eligibility calculators. These calculators allow you to check your credit worthiness or how much a bank would theoretically be willing to lend you. Before you apply for a loan, you will also need to check your credit score. You can check this with the Credit Information Bureau India Limited (CIBIL) and then share it with your lender to prove your credit worthiness.

Step 4: Get Your Documents

In the old days, getting a bank loan used to be a long drawn out process of filling out forms and building mountains of paperwork but now the system is better streamlined. While different banks might have different requirements, here are the basic documents you will need to collect:

  1. ID Proof (Passport Copy/ Voter ID card/ Driving License/ PAN Card)
  2. Address Proof (Ration card/ Telephone Bill/ Electricity Bill/ Rental agreement / Passport copy/ Bank Passbook or Statement/Driving License)
  3. Bank Statements (Both personal and for your business)
  4. Income Tax Receipts
  5. Your business’s documents such as registration, VAT, TIN certificate etc.
  6. Profit and loss statements

Some of these documents will need to be self-attested or attested by a notary. With the right finance processing and accounting software, you will have visibility on how your business is functioning and where you need to inject funds. Banks looking to give you a loan will also have transparency on how your business functions, making you a better candidate to receive a loan.

 Step 5: Know the terms

As with any business contract, you need to know the terms of the loan before you sign on for anything. In today’s world there are various loan formats that offer different terms. Some don’t require collateral or much paperwork and others have the options to submit documents digitally. It is important that you don’t just opt for the first loan offered to you or the one from your personal bank.

Follow these simple steps and you will make inroads into getting the funding your business requires.

Have you considered a line of credit?

Before deciding on borrowing money, however, consider two major factors:

  • How big is your loan amount?
  • How often do you need to make purchases (with the loaned amount)?

If you want to loan a reasonably medium or small amount and if you recognize the need to make multiple purchases along the venture instead of one bulk payment, a credit line will be a better option for you than a bank loan. A Line of Credit or Credit Line is an overdraft account without the hassle of collateral. It is a great choice for filling in financial gaps in your expenses, with more convenience than loans.

A credit line works very similar to a credit card:

  • A credit limit is set for you, which you can borrow entirely or in parts according to your needs.
  • The interest rates are variable and applicable only on the amount borrowed.
  • You can secure a higher credit limit by submitting collaterals.

So, if your venture is about small transactions in steps rather than one bulk investment, choose a credit line which will help you:

  • Avoid paying extra interest for unused money.
  • Use amounts as per convenience.

 Want to apply for a line of credit? Click here to learn how through Numberz.

Who Are You Banking With? Choose the Right Bank for your Business

Managing your finances in the first year of your business can be tough but the right bank can make all the difference.  With many banks who have the services you need, the two questions you have to answer are:

– How do I pick the right one?

– Who is giving me the best of services?

Gone are the days of mountains of paperwork, banking has also become a seamless aspect of our life thanks to digital services.

Here are five things to keep in mind while selecting the right bank for your start-up:

1. Business Costs and Cash Flow:

The first thing that you need to do while setting up a business is assessing your costs. Analyse your financial needs and choose a bank that provides services that will benefit you the most. Oh, what a headache, right? Let’s make it simpler – as a small business, you need to consider three aspects – start-up capital, growth capital and cash flows.

So, remember these factors and choose a bank that will offer you these services:

  • Range of business loans such as starting capital, equipment loans, expansion loans, etc. with:
    • Shortest application and approval times with easy online applications and verifications
    • Attractive rates of interest
    • Automated EMI payments and reminders
  • Suitable account-based services, such as:
    • Digitised account management, creation, and deactivations
    • Stock market and investment insights as well as advice
    • Liquid accounts with minimal costs
    • Easy, online fund transfers and payments
    • Automated online transactions

2. Banking Services:

Banks have become more customer-friendly and I’m sure they have made your lives easier too. But, we all know how banking works now – there are innumerable services offered by each bank! So how do you find the right one? The first step is to look for a bank which will allow you to digitally conduct most of your banking and financial needs.  

Internet banking has made our lives so much easier – fast-paced transactions, online applications and verifications, automated payments, account management, rapid assistance, and much more! For example, certain banks allow you to add a payee in 30 minutes with almost immediate fund transfer – a great way to save time and keep suppliers or vendors happy. Some other banks have rapid loans and payment approval timelines which reduces the time spent on banking and also, makes it convenient.

3. Banking Expenses:

We all know how banks charge for transactions and accounts. But, if you don’t keep a check, you can end up losing a chunk of your revenue in banking expenses! To avoid that, identify a bank that can offer you services at nominal costs, which include:

  • Transactions, payment getaway and bill payment charges
  • Account maintenance and creation – minimum deposit ledgers, deposit and withdrawal charges
  • Loans, mutual funds and investments – application charges, interest rate, premature and late payment charges
  • Credit/debit cards – application charges, interest rates, late payment charges

4. Terms of Usage:

Based on the services that you essentially require, choose a bank with operations and regulations that best suit your needs. Carefully review all terms of usage before choosing a bank to keep a check on, such as:

  • Unnecessary charges and procedures
  • Risk factor
  • Account liquidity criteria
  • Availability of services

Opt for a bank who will keep digitally updating you with changes in policies and regulations – through emails, SMS or push notifications on apps.

5. Size Matters:

Make sure you plan for the success of your business and choose a bank that can fulfil your future needs too. For example, you will not have to pay extra for ATM usage or foreign transactions when opt for an international bank. Alternatively, large-scale banks, whether national or international, will be able to assist you better with business growth and expansion scenarios.

When you are looking out for the right bank, don’t simply select the first one that approaches you. Go out there and find the one that fits your needs and understands you in a manner that helps shape your financial journey. After all, your business is your castle of dreams!