Indian Economy – Leading the World
A world of languages, numerous religions, thousands of deities and so much more – Indian Economy is a cocoon of diversified culture. It is a pool of many phases, components and aspects. It is one of the fastest growing economies in the world. In terms of purchasing power of the people, it is world’s third economy.
The diversity, rich culture and heritage, thoughts and upbringing of the economy make it furthermore gigantic. Nevertheless, it can broadly be divided into three categories:
- Colonial Era:
This, the pre British period, was regarded as one of the best times that Indian economy has witnessed in the history. Trade was at its peak. All the states were self-sufficient in terms of economy and production. People had good purchasing supremacy. Trade relations kept on blooming further and during this time, the Britishers also entered the Indian Territory. A few decades of happiness and financial prowess eventually took a 360 degree twirl with the British entrants.
- British Rule:
Indian economy suffered a lot of stabs. During this time, more than trade there was plundering everywhere. And when the freedom fights started, things went worst and economy was at its deepest echelon.
- Post Independence:
Post colonial rule, Indian economy had to stand again on its own. But, there was already a lot of damage that had been done. It was not easy to control and manage the economy. But the government took measures to bring back the phase of stable economy. And during that time, five year plans were formed to stabilize and start the reinforcement work on the war-footing note. During this period, green revolution, white revolution and also industries were supported by the government. Even post independence, Indian economy has been through numerous impediments. However, Indian economy recuperated with every passing year. And what we see, (flyovers, metro rails, IT companies, malls, better schools, better hospitals and many more) is a result of meticulous hard work that has gone behind building today’s modern India.
India’s Current Economy Sate:
It’s been 66 years post independence and India has come a long way since then, though the journey was more of a rollercoaster ride. India has been through a series of social, political and economical changes since independence. From completely agricultural based economy, India is gradually shifting its equilibrium on to the shoulders of industries and IT sectors too. This is making Indian economy stronger and bigger. The best part is in case if there is a downfall in any one sector, economy will not crash completely as other sectors will give much need support at least to stand if not run.
Hurdles Being Faced By the Indian Economy:
Indian economy is huge, it is vast and diversified. Thus, not making it easy to take all the sectors together and move in the same path. There are numerous challenges before Indian economy. If India has to become one of the strongest and stable economies then it has to cater to the imminent challenges.
- Population: India is the most populated country just after China and if the trend continues, then, within few years we will outgrow China too. This is not a good sign as along with the rising population, we will need more resources to live – food, clothing and shelter to the entire population. Though, population is a human resource but an explosion of human resource is also not good. This will reduce the cost of labour with a fierce competition to find jobs. The result? Salaries decreasing drastically and the purchasing power going very low.
- Poverty: Along with the population, another monster on the rise is poverty. One of the root causes of poverty is, growing population; which, once controlled, it is half battle won.
- Unemployment: Population and poverty is giving rise to unemployment too. Though another reason of unemployment is excessive use of technology but, can we remove technology from our lives? In fact, there is a need to increase more job opportunities for the young generation. In order to bring the Indian economy at its zenith pint, we need to address these challenges at the earliest.
- Rural and Urban gap: It is said that India lives in villages and this holds true even today, because still 70% of population is in villages. Unfortunately, this 70% generates only 30% of the annual income of India. This difference is growing day by day. Unless this difference is curbed, it is tricky for Indian economy to flourish in all directions.
- Inequitable growth: States like, Gujarat, Maharashtra and some southern states have done actually well in many areas of economic development, whereas states like Bihar, Jharkhand, and Chhattisgarh are still trying their best to contribute in overall strengthening of Indian economy.
- Tax Reforms: It is said that the rich are becoming richer and the poor, poorer – this shows a failure in the country’s economic development. This can be curbed, if proper and effective tax policies are implemented. There is a dire need to bring tax reforms at the earliest.
- FDI Support: Indian policies have been made more liberal in last few years but that is still not enough to withstand the world’s growth rate. Indian government has to take added measures to make sure the Foreign Direct Investment is effortless. As this will help India to become more reliable in terms of making ports, airports and highways to boost the development.
- Infrastructure growth: Another challenge that Indian economy is facing is poor infrastructural growth. With the growing population demand, we have to increase the infrastructural growth too. This will not only be a positive movement for economy but will also generate numerous job opportunities.
The economy that we see today is not prêt-à-porter. It has been through a series of twists, turns and turmoil in the past to emerge the way it is today. India has witnessed diverse rulers and governments too – exploited by few and uplifted by a handful. This is where the importance of financial planning and insurance comes into picture.
What is Insurance?
Going by the definition, Insurance is a contract to pay compensation in case of any loss, damage or theft; only after the insurer has made periodic premium payments. In insurance, there are two parties;
- Insurance company (one who collects premium and pays compensation in lieu of any damage or loss)
- Insurer (one who pays the premium amount regularly and gets the benefit or compensation)
Before you go perplexed with the Economy Disasters and hurdles; go for a life insurance.
Life insurance gives you and your family financial stability to deal with any aftermath of any unforeseen unfortunate situation. There can hardly be any reason for not taking a life insurance policy.
Finance : How to Trade Stocks
Returns are hundred percent when you use your own money while there will be slight variation with the stocks bought by borrowed money where the returns is usually three times. This though seems good the downside comes when you face loss instead of profits where you lose considerably.
You must also know you risk tolerance in stock trading which is a psychological trait influenced by education, income, wealth, etc and which decreases with age. It also gives you a decent picture of the amount you are willing to risk losing. This is important because a golden rule in stocks is that you must only invest what you are willing to risk losing.
The rules which will help you in trading stocks by decreasing loss
There are certain rules for beginners in particular which if they follow they can save themselves from risking loss. Always it is wise to start trading stocks with small shares as little as hundred and only when you have learnt the skill and gain the experience try the bigger number of 500 to 1000 shares. Make sensible trading during consolidation period which is generally recognized by flat or almost flat periods or 5 to 15 moving period average. Basically a strong trend shows a wide gap between 5 and 15 period moving averages. And the right time for entering a trade breakout is when the price is consolidated into a tight range or when it moves either above or below the highest or lowest value. If you do not wish t enter then you can always wait for the first wave to complete such that the price will pull back close to its initial breakout price.
Stop less helps you in preventing loss it is the margin you set for selling your stocks. When the profits reaches that margin it is better to sell rather than wait for further rise as it might drop down instead. Dividends are yet another factor which signal if you need to sell your stocks or not. Whenever there is a decrease in the amount of dividend received or if the company has stopped issuing dividends then the stock is a very risky one which is going to have a major loss as dividend depends on the company’s earnings and profits. It is a sign indicating that the company will shut down or exit from the market. Learn How To Trade Stocks today!
Timing is everything in stock trading
The popularity of trading stocks is such that everyday new investors venture the stock market hoping to make profits. However stock market and stock trading is s highly unstable venture where patience and strategies are more important than hard work. But of course hard work in the form of studying the market and the chart prices is important but also sticking on to the strategies that are tested over ages. There are varied stages of stocks and thus, it is important to know when to enter and when to exit.
Making the right call of entering and exiting the market or buying and selling the stocks is the crucial aspect of stock trading
Stock trading involves buying and selling of stocks along with making money in the form of dividends that you earn by investing in the stocks.
Every trader should know the four stages of stocks to be successful stock trader. They are stage I, stage II, stage III and stage IV. The first stage or stage 1 is the phase immediately after a very long downtrend which means that the stock which was going down is trading sideways from base. This is the stage when the stock does not give a clear trend making its worth uncertain.
The stage 2 is the beginning of the uptrend after stage 1 and it is that stage where one can make a lot of money. Stage 3 is when the stocks again trade sideways and similar to stage 1 where there is an equilibrium established between the buyers and sellers. Stage 4 is the stage where downtrend starts.
When to enter and when to exit in stock trading?
Stock market is a highly volatile and directionless market where nothing can be predicted for certain without studying the market. Knowing the right time for entry and exit in stocks is never clear with any set indicators but certain factors can be used to determine the right time.
Breakout is one of the right phases for both entry and exit. Breakout is when stock prices rise a little over two or more percent or when demand far exceeds supply. Avoid risking taking decisions of buying and selling stocks in conditions like lower sales, new legal problem faced by the company, bear market, certain situations affecting the earnings of the company which affects its position and pace in the market, etc.
Buying and selling stocks is quite confusing for many where they can never decide the right time of selling or buying stocks. But certain strategies make it easy for taking such decisions. When your stocks are profiting and you are uncertain if the value will rise or drop in the future then you can sell 50% of that stock and retain the remaining 50%.
Selling stocks is as important as buying the right stocks
Analyzing the growth of the stocks is important and when the growth is constant it is better to take a call as once it starts again there might either be decrease or increase in its value. Dividends are a clear indicator for selling stocks especially when the company is either reducing the dividend or stopping it completely because this is a sign indicating towards loss which means selling will save you from incurring a loss.
Whenever the value of stocks drops by 7 or 8% from its original buying price it is an indicator that you will have great loss if you stick on to it. Selling away such stocks is the right move to avoid further loss. When the stocks move up to 20 to 25% their value then sell them to incur profit and reinvest in other stocks before the value drops down. Hoping for an increase above that may prevent you from selling it for which you can retain some of the stock and sell the remaining to have a good gain. Selling stocks is as important as buying stocks because the profit in stocks is always on the papers which if needed to be cashed require you to sell them when the value is high. If you are a novice in stock trading; then it is always a good idea to follow the Trading Tips.
Habits for Your Startup in Business
To be a successful businessperson, you must be a good planner. You must be organized and intentional in all that you do. Starting a new business is challenging, but with proper knowledge, you can navigate your way in this area. A culture is a habit repeatedly done. You should introduce and cultivate things that will lead to the prosperity of your business in years to come. It will not be hard for you; if you are open-minded, in so long you follow specific guidelines to achieve your goals. It gives your business flexibility, which is a requirement in business. Here are some habits you should incorporate in your business.
Invest in the Human Resource Department
Human resource department focuses on managing those who work in the company. The human resource helps in controlling the culture of the company and makes the working environment suitable for productivity. When starting a business, it is fundamental to have the human resource to balance the relationship between the owner and the employees. The human resource acts as a mediator thus allowing communication to takes place. Communication is a tool in every successful relationship and this ensures that work flows smoothly. Communication allows people to air their concerns and ideas and in this way, it is easy to deal with issues, thereby minimizing conflicts. Where there is a human resource person, the employees feel appreciated, and they always give their best because the environment motivates them. A good human resource system will keep you in touch with your employees who are the source of production.
Have clear operating policies
Policies give a business a sense of uniformity because every employee is obligated to operate within these policies. What are policies? These are principles that guide the business in its decision-making and operations. A company policy system is important when setting up a business. A policy includes the objectives, values, and mission of the company. They are what define an organization. The plans ensure that both the employees and the owner have similar goals. Policies bring consistency and insight in a business. These are standards expected of the employees. They help in times of accountability. There should be policies for safety, health, and rules among many others.
Put in place safety procedures
Safety procedures include things like insurance and risk management measures. When putting up a business set in plans that will be used in case of peril. You can insure your business and employees so that to cushion against unforeseeable eventualities. Before starting a business consider the security and safety whether natural or of human origin. For any business to grow, safety is the primary factor to consider. Safety procedures also include documented measures that help in reducing risks during work. These safety measures may increase cost and lower profits if not put into use.
How do you deal with indiscipline?
Discipline in a workplace is paramount if the business is to operate at its peak. Disciplinary measures in an organization are meant to correct and ensure that employees follow policies set in the company. The disciplinary actions are not intended to humiliate the workers but to shape them to act according to the culture of the company. Make it a tradition that employees always learn from their mistake and find a solution to them. Leaders must lead by example. If rules are set to be followed, leaders should not feel superior to others. Before you announce punishment, listen to what the accused has to say, do not react but act. Have documentation of the rules and consequences so that it can be used as a point reference. Never be biased when determining a case between two people. An excellent disciplinary action is just and fair. It is good to be candid in your decision but also be very wise when making the decision. Reject excuses and know when it is the right time to let go an employee.
Have guidelines on product or service usage
Every product or service has a usage guideline, which helps the buyer know the procedure of using it. As a business, whichever product or service you offer should have simple, brief, and clear instructions so that the customer is equipped for any eventuality. How you package and present your product or service to the market matters a lot. Make sure that your target audience is well informed and brought on board. The guidelines also help a first time customer to make up their mind when choosing your product or service. When setting your guidelines consider the style, layout, components, resources, patterns texts or instructions to use. Customer care department and sales department will have a big role to play in educating the customers.
Invest in marketing
Public relations person does effective marketing. Marketing is primarily about maintaining a good relationship with the customer. While the advertisement is about persuasion marketing is all about making the public aware of the company. The company lets the public know about their goods or services, and through various channels, they get feedback, which they use to make their services, and products better to suit the needs of the buyer. The company aims at motivating the customers to make them their number one brand. It is advisable to create a long-lasting relationship with your clients because that way you gain their loyalty. The trick in marketing is consistency.
Apart from the above guidelines, you can inquire more about business startups from people who have already succeeded in business before you. People who have failed in various attempts but have finally made it have the best lessons to offer. Learn to gauge what will or will not benefit your business so that you can make strides. Business is about taking risks and living by them. The above habits are some of the best practices to employ as you prepare your startup for a takeoff. Never give up continue embracing new business principles to realize the full potential of your startup.
Is Your Business Stuck? This is why
Starting a business requires a risk taker; remember the steps or decisions you make may affect kill or make your business. Therefore as a businessperson, you must approach the issue of enterprising with an open mind. A good approach, will not only help in the growth of your business, but also be a source of inspiration to other entrepreneurs. Remember the more the sales, the more the profit if do your home work well. However, there are times when your business may stagnate due to mistakes here and there. It is advisable to go through your business checklist to know where you went wrong. Here are some indicators as to why your business may not be making any progress.
Is it the right venture?
A good entrepreneur evaluates the market and chooses a niche, which he will be able to handle. There may be several appealing niches in the market, but not all are doable or applicable to you. You must pick a venture that you have a technical knowhow or lies within your area of specialization. This will enable you to operate the business without many hiccups. Apart from satisfying the customer needs, the niche should also be profitable to you. You may have a desire to start a health facility but if you are not a qualified medical practitioner, the venture may not materialize. Even if you employ competent personnel, the issue of responsibility when one does a mistake will be a challenge.
Do you have the capital?
After identifying your venture, you should have enough money to support your idea and plan. Having enough capital, will enable the business to operate without interruptions. This will cushion the business in the event a loss occurs. Do you want to realize more proceeds from your venture? Then consider the amount of capital to put in operation. If you spend in a reasonable amount of capital, in the right way, you will have good returns. Please take time to source for sufficient capital that will be able to support your business idea, rather than start early without enough capital and fail.
Is it your business location?
The location of a business is a strong indicator that your business will make it or not. An area will determine the kind of business to invest. Whether you have the required capital or you are investing in your area of specialty, location matters. A place such as the Sahara is not a favorable location in investing in the construction industry due to topography of the area. The scarce population in the area also may also not guarantee returns to your investment. Accessibility of an area is another issue that comes into play as plan to invest. Is the area secure, reachable, and favorable? As you plan to make an investment, consider your location early in advance to avoid business stagnation or making losses.
Is your workforce competent?
Do you have personnel who are up to the task? Are they academically qualified? Do they have the experience matching your requirements? For your venture to realize good returns, the quality of your workforce matters the most. Competent labor or workforce is required for a successful business. Harmony is the key towards a conducive work environment in a workplace this guarantees good communication and interaction. A place where respect thrives, people will be motivated to work better as they feel appreciated. While picking the team to work with consider integrity, faithfulness, and reliability.
Are your advertising strategies right?
Advertising does not target the investors but the clients. A customer is the heartbeat of the business. The reason of establishing a business is to make profit however to realize this, you will have to have a good customer base. How will you realize a good client base? This is where advertising comes in. This leads us to the question “what is advertising” simple, advertising is the art of making known your business venture including the services and products you offer. The art of appealing to your customers to buy your services or products is what may make or break your business. When devising ways of reaching out to the buyer, consider sight and hear before anything else. They should see what your product or service is all about in detail in order to make an informed decision. They must also hear testimonials from other people, which will serve as evidence that they are going for the best. Advertising is all about the mind. A good advertisement is realistic and credible. Do not sell something that you do not have.
Are there any plans for the future?
When making a set-up plan for your business, it is good to include your aspirations in the future. It helps you refer to your goals from time to time when the company starts to slow down and continue being focused. Planning helps in setting milestones and discovering new ventures along the way. Goals help investors to gauge your business viability in the event you plan to merge or collaborate with others to expand your business. Goals also motivate you to plan better through learning new techniques and applying them to enhance your productivity. Learning is a process in business therefore; you should consider enrolling for further studies or allowing your staff to go for further studies. This will positively affect the progression of your venture.
I am sure this article has positively given you a kick-start as you plan to take your venture to the next level. Stop listening to your competitors or prophets of doom apply these principles and your business will be the talk within your locality. You have tried in the past and failed but not anymore. To leap to the next level, consider investing in the customer service and sales department. You should also consider outsourcing services where you lack requisite qualifications. Investing in technology is another way of making work easier and reaching new heights In terms of customer base. Adding new lines of products or services will also augur well with your customers. This will translate into more revenue.
Key To Growing A Successful Business
In every stage of business, there are principles that you need to follow in order grow your business and make some profits. The essence of a business is making profits and satisfying your clients. If you realize your business is not bringing in profits, then there are some things you need to revisit.
Well, here are some principles that should guide you to ensure that your business is growing and giving you enough profit.
- Choose to sell the products that satisfy the clients need
When a client goes out to look for products to buy, it is because they are in need of that service. So when you are doing your research on what products to sell online or at your stall, ensure that you stock what the clients are looking for. Your products should solve the clients’ problems and give them the answers they are looking for. If you find your products are not satisfying your clients’ needs, make a research and have an idea of what exactly you clients are interested in. You can opt to do this by conducting a research online or rather asking them directly.
- Offer quality
Clients are looking for good quality. This is something most sellers tend to ignore. You can never be in a position to please your clients if the quality of your products is not up to standard. In order to stand out from your competitors you must have superior products than they have.
On other hand, your products should be unique. Have you ever wondered why you sell the same products with your competitors but there is that store that people frequent most of the time? If you take time to do a research, you will realize you are selling the same items but there products are unique. Most consumers don’t want to spend their money on something they can use for a short period of time and throw in the dustbin.
- Sell your products at a fair price
Avoid over pricing your products. Most sellers make a mistake of putting very high prices and making extra ordinary profits. There is nothing wrong with making huge profits but ensure that you put a reasonable price tag. This will give your clients a chance to buy value yet have your products with a reasonable price.
- Good budgeting
This is a secret to any flourishing company. Most people who are running successful business will admit that you must have good book keeping and accounting practices. You must be able to record every single cent you spend in your company in terms of expenditure.
You should also look on ways that you can cut down on cost for almost everything in your company. Implement practical measure to reduce on the expenses and increase production. This should not compromise the quality of products though, so practice this with a lot of caution.
- Ensure that you company has cash flow
Your business will need cash flow for its survival. Once the cash flow dries up then there is danger. Ensure that there is money getting into business as much as possible. If you have to spend money in your company, let it be to buy stocks. Record every single penny that gets out and make sure it brings in some more money. Have that rule which states “spend money to bring more money”.
You can put some measures such as monitoring the cash flow on a daily basis. If you do that every single day you will realize that you are able to account for any money taken out of your company. This will give your company the boast it requires and there will be a significant growth.
- Do intensive marketing
This is where creativity and aggressiveness should be exercised. Though people are in business to make profits, profits cannot be realized without proper marketing. Nowadays, there are so many ways of marketing. Social media is one of those methods that you can opt to kick start your marketing strategy. If you have a sales department in your company, ensure that the sales people are preaching nothing but marketing.
Word of mouth too is very effective when it comes to marketing. Tell people what products you have in your company and in turn they will tell their friends. Choose some days that you can dedicate to work only on marketing your products. Within no time your business will bring in sales as long as you treat your clients well.
- Be consistent
After marketing your products, you now need to be consistent. Now that marketing has brought sales, what next? Be consistent and continue giving your clients what you promised at first. Some business people get clients and forget to continue offering good products as before. In order to ensure your clients are glued to your products day in day out, make sure you over deliver.
- Start selling your products
Now at this stage you can sell and sell some more. You have followed all the principles that are needed for a good business setting. Sell your products and strive to maintain your clients. The core of any business is the customers. If a business doesn’t have satisfied customers no matter how hard you try to keep it running it is not possible. So ensure that what you clients take out of your business is praise. This will bring more clients and your business will be growing every day.
Conclusion
Building a business empire is not restricted to specific people. Everyone can do business but it takes more than discipline and commitment to run a successful business. There are ups and downs that a person may encounter along the way. But the fruits are always sweet. So if you are planning to start a business and build it from scratch, always follow the above principles to help you stay in the line of business. With a little bit of practice the above tips can be practiced and bring out desired results.
