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Small Business tips

5 important COVID-19 lessons for startup owners to get crisis ready in future

“A big business start’s small” – Richard Branson

Truly said by Richard, in order to get big, a business owner has to make some small smart steps that can take his business towards success. Well, these steps can only be considered to be in the right direction if the leader of the company has made all his research and learned from the lessons taught by the market and its survivors.

 

Looking at the current situation, when all the conventional businesses have come to a halt and are facing downtime due to COVID-19 lockdown, there are still some ventures having a swift flow in their business revenue. Well, these are the enterprises that have foresighted to be prepared for such situations and took some preemptive measures by learning from the past economic history.

 

Analyzing these businesses and studying the changing market scenario, below are some lessons curated for the small business owners to help them make their startup stronger enough to deal with such critical situations in the future. 

Business learnings for startup owners from COVID-19 pandemic 

  • Digitization is the basic business need

With the government imposing social distancing orders on the citizens, the only businesses having an online presence are the ones having hope for their business to at least earn or keep themselves operational in one or the other way. Taking about the e-commerce market or apps like food delivery or grocery deliveries, these niches are the ones that took over the market and the only reason behind it is the online availability of their business and the easy access to their services. 

 

Taking this as a note for the newbie owners, making the right investment in the digital infrastructure indeed becomes important for better survival in the future market. Try to focus on making an online presence of your business through marketing, making your services available to people irrespective of their geographic location by developing an app, or a website or uploading your products to online stores. 

 

  • Flexible business plans 

It’s very important for a business to have a plan and a business model, as that is what defines the base of business operations and goals for its workers. But as there is no fixed formula to success, there is no assurance that the same business models would work in every situation and time. 

 

Defining a flexible business model that could be mold based on the situation and would help make the business more profitable than before is what we call smart business planning. 

 

Learning from the example of Zomato, the food delivery app has reformed its business model based on the COVID-19 lockdown situation and has added grocery delivery and other essential delivery services to keep up the business rotation as the delivery of food was currently not operational. The exceptional thought of the Zomato team is a thriving representation of their flexible business model which helped them survive even during the crisis. 

 

  • Re-skilling the workforce in a different environment 

The workforce is an asset to any business. In order to make any business stronger, it’s essential to make sure that the team working behind it is ready to work in any situation or environment. 

 

The lockdown made many businesses and their employees to work from home and adopt a way of working they have never experienced before. Taking the lesson from the difficulties that these businesses face in terms of coordination and productivity, it’s a hint for the upcoming business owners to enact such training programs for their employees which help them work under any critical environment.

 

Doing this, the employees working with the company will develop such skill sets and practice which help them continue with their work irrespective of the situations around and keep the business moving. 

 

  • Forecasted disaster plan

Well, this is something every business owner should add to their list while planning to start their business. Disasters and uncertainty are a part of today’s lifestyle, so accepting it as a new normal, a business owner should always have a separate plan for situations like today. 

 

Whether it’s about money, employee welfare, business failures, or natural destruction, having an action plan for it could help the business owner to make quick decisions as per the thoughtfully created disaster plans. This would also help them to face lesser drawbacks due to the conditions in comparison to what they could have faced in the absence of such plans. 

 

Following this, many SMEs are achieving 90% business productivity even in the pandemic, as they have already calculated their challenges and have planned for the necessary solutions whether in terms of technical support or employee wellness.

 

  • Best opportunities come during the crisis 

Have you ever noticed that our mind works faster in the time of trouble? Yes, the changing situations make a person think about the alternatives to do the work to maintain his/her existence. This is the period which makes us aware of the problems we would have never thought of otherwise and carve out some innovative solutions that could change the business’s future. 

 

Talking about the current crisis, the new delivery solutions like drone delivery and the surging new app features for contactless delivery services are a symbol of the innovations that have evolved due to critical situations around the world and are acting as a solution to the problems that people are facing during these hard times. 

 

So it’s a tip for the startup owner, to always look at the crisis as an opportunity to learn or develop something new and implement it for the business and community welfare.

 

Summing Up

Building a company from scratch is indeed a task where even experienced entrepreneurs strip down, as the only thing that can help these aspirant startup owners is perseverance, innovative thought, and the continuous lessons for the outer world. 

 

The above-mentioned pointers are real learnings for a newbie owner. Planning and working while keeping these factors in mind can prove to be very beneficial for any business owner and his team to fight against any odds like the COVID-19 epidemic in the near future. 

 

Author Bio:

James Vargas is an experienced business expert, consultant, and manager at Get Everything Delivered, startup consulting, and team building services. He has 1.5-decade corporate experience and is tailoring the best project delivery and team training practices to the businesses and startups to generate great revenue for their business.

Categories
Business Budgeting Small Business Accounting

Feasibility Study: Everything You Should Know About Creating One

When it comes to entering an industry with an original business concept, all that matters is how the execution of the research will be conducted. One of the factors that enormously influences the success of the new business is the way the feasibility studies are done. If you haven’t studied economics or industry-related courses, it will be hard to do it by yourself. Fortunately, there are a lot of ways to equip yourself with knowledge and try to finish it on your own. One of those ways is reading and self-educating about the feasibility studies and then creating one. You can always consult an expert but, doing the deed yourself is by far more convenient for you in terms of costs and being on top of it.

What Is a Feasibility Study?

The feasibility study ensures the economic viability of the project in a specific market. It is a document that ascertains a quality mandate accepted by financial institutions or investors and operators and private equity firms as well. Inside the document should be included a decision basis for the development, financing, or operation of the business within the selected industry. The segments are executive summary, market analysis, positioning, supply and demand analysis, POS revenue stream, forecasting, expenses, the return of investment, cash flows, financial ratios, and investment appraisal.

How to Create a Feasibility Study Template?

There are several steps you need to follow in order to create a feasibility study template by yourself. However, it is always a good idea to have the feasibility study template checked by a consultant who has experience in the industry. Now, let’s see the steps. 

1. Conduct a Preliminary Analysis

In this step, you need to outline the plan. Look where on the market the demand is greater than the supply and make sure that the service or product you intend to sell has a distinctive value. Then, observe if the challenges are too hard to overcome by yourself, or you would need investors or partners in your business endeavor. 


2. Compile a Projected Income Statement

To do this step think backwards – what is your expectation of the income from the project and what investment do you need to get there. This is the basics of the income statement – how much money you will need in order to make a profit as expected. 

3. Do a Market Research

You need to dive deep into the market and thoroughly inspect the demographics, the location, the competitors, the value of the market, and how expansive the market is. This step is crucial for your attempt in positioning your business on the market. 

4. Plan How the Bussiness Will Function

The next step is figuring out the business operations. What will be your start-up costs, operation costs, and fixed investments? What kind of equipment you will need as well as the advertising methods that will bring your brand in front of the target audience. 

5. Prepare a Balance Sheet

Evaluate your assets and liabilities and do this as accurately as possible. Create a list and categorize items, sources, costs, and available financing. Think about how you will lease or purchase land, facilities, and equipment and how you will finance the assets. 

6. Review All Data

In the end, make sure you carefully review everything you have compiled. Don’t skip steps and go over every information you have collected. This will prompt you the reassurance that everything is achievable and nothing requires changes. Ask yourself – Is the plan realistic? Can you carry it out without spending more money than you have planned?

Conclusion

The feasibility study template is a crucial step towards success in the launching of your new business. Once again, it is recommended that an expert in the field takes a look at the document just to make sure you haven’t done anything wrong. Plus, it will cost much less than hiring them to do one for you. However, keep in mind that the studies and analyses you do before the launch of the business are what will set you apart from the crowd and make you beat the competition.

Categories
Small Business Accounting

How to manage your Business GST easy and stress free

No doubt GST was intended to simplify the taxes from the legacy of VAT and Service tax. However because of lack of knowledge, there is growing pains for an average small business owner. This has increased tax and compliance cost for small business owner. The Goods and Services Tax (GST) is a brought together, goal based circuitous assessment framework rehearsed in India. This assessment is exacted on the products and ventures, including an incentive at each phase of the flexibly chain. As products and ventures go from the provider to the purchaser, they are burdened in a roundabout way. The purchaser who is toward the finish of the chain needs to pay just the GST charged by the past provider. This extensive duty replaces all other circuitous charges. The focal extract obligation, state VAT, focal deals charge, buy charge and numerous others are completely secured. The GST returns is a record that the assessment experts for ascertaining charge risk. As a representative or firm, documenting a GST return ought to be a need. The GST law specifies that dealers, producers or specialist co-ops in India register under GST to record returns. Subtleties of their business, buys and paid expenses must be outfitted with the regulatory specialists. This procedure needs to done electronically on the GST gateway. Check this comprehensive GST guide for an complete understanding of GST.

GST Suvidha Providers

GSP represents GST Suvidha Provider. A GSP empowers a GST citizen to follow all the procedural arrangements of the GST law through its web stage. ClearTax, an online expense recording stage has been conceded the status of GSP. A GSP gives creative strategies or methods for a viable intuitive stage for citizens to get to GST entrance administrations extending from enrollment and invoicing to finish of GST bring recording back.

GST Accounting Software

GST Accounting App to set up your business GST Compliant Invoicing, Bookkeeping, become more acquainted with how well your business is getting along continuous, and set up your GST Returns. Send GST consistent solicitations to customers and business in with print arranges in accordance with the GST rules. Set up your alter tax assessment on things with various duty rates (28%, 18%, 12%, 5%, 0%) in the single exchange. Utilizing our GST bookkeeping programming receipt position, get charge separation for everything HSN code-wise.

Online GST Portal

www.gst.gov.in is the administration’s legitimate GST site and is otherwise called the GST entry/GSTN entryway. It encourages various administrations for citizens going from acquiring GST enrollment, documenting of GST returns, application for discounts, to the time a citizen applies for the crossing out of the GST enlistment.

The significant part of the GST system is that the expense organization must have a solid sponsorship of innovation. This implies the citizens will never again be required to visit the expense offices face to face for evaluations and present the applications or returns, despite the fact that assistance habitats are available across India. The GST site permits all correspondences to be done on it, for example, favoring, dismissing, or reacting to applications. It incorporates insinuation of notification by the office and window to react to the equivalent by citizens.

Categories
Online Accounting Software

Easy and Simple tips to maintain your business accounting

Accounting is the most valuable way to display the financial health of the business. Whether you are running a small business or own a big band; it is always important to make efforts to keep track of profits, losses, and expenses.

Many business owners prefer to hire a team of experts to manage their financial health; however, the manual efforts often lead to some unavoidable errors. Moreover, when your business starts growing, it undergoes some complex scenarios with more customers, gigantic ledger records and huge operational budget. In this scenario, it is important to find an automated solution to manage your business account.

Although the market is loaded with plenty of software tools that can help you manage all the accounting details, it is always recommended to go ahead with the most reliable and trustworthy solution. One of the best solutions to handle all your accounting needs with higher security levels is myBooks by Zetran. This Simple Accounting Software tool is loaded with plenty of amazing features. With leading technology, you will find it safe and reliable to take your business on the path of growth.

Amazing features of myBooks accounting software:

myBooks is basically a cloud-based accounting solution that is designed to serve midsize and small businesses. It covers a wide range of audience including freelancers, entrepreneurs, small IT and financial companies, small business owners and solo accountants as well. myBooks Accounting Software has amazing accounting tools for the management of routine business expenses, invoices, bills, and many other financial transactions.

Here we have listed a few important features that rate it high among many other competitive business account management software in the market:

  • Simplified Process:

With traditional procedures, the accounting management can be a daunting task; especially for medium and small businesses that cannot hire a special team for financial health. Well, Easy Accounting Software gives them more peace of mind so that they can focus on other essential tasks of their business.

  • High-Grade Security:

This amazing financial book-keeping software tool provides enhanced security for all your accounts and financial transactions. You can rely on this tool as it makes accounting management safe at every level.

  • Multi-Currency Transactions:

Another amazing feature of myBooks is its ability to manage multi-currency transactions. It means you need not restrict your business to the specific demographic area; rather, you can scale it overseas without worrying about financial management.

  • Interactive Dashboard:

How can we forget to talk about the interactive dashboard? myBooks Accounting Software tool offers handy tools for analytics that can make your accounting much convenient and reliable. Moreover, these insights are easier to understand.

  • Easy Configuration and Setup:

There is no need to gain special skills to manage and use this software. It is designed for non-tech-savvy people. Anyone can configure and set up this software by following a few simple steps, and soon it will be ready to handle all your accounting requirements.

In short, these incredible features of myBooks can help you to manage your business accounting needs with ease. It is the right time to get this affordable and simple accounting software for small business to handle all your financial transactions online.

Categories
Small Business Accounting

How to do accounting for your business from mobile app

Probably you own a business and are in trouble with the complicated task of financial management. Well, your search directed you to the right platform. Here we are going to talk about some of the most effective and simple ideas to manage business accounts. Spare a few minutes to go through this article and soon you will be able to take your business to a whole new level.

We understand that it is difficult to manage mammoth ledger entries while handling plenty of challenges in your business. You might be doing unlimited transactions every day, and keeping a record for all of them may take lots of your precious time. Don’t worry! Some creative software developers have designed an innovative and efficient solution to deal with your financial transactions. The best thing to know is that there is no need to sit on the computer to manage entries in this software. Here we are going to talk about a simple Small Business Accounting App that can help you handle all the details on the go. Yes, myBooks accounting app makes this task pretty straightforward while maintaining adequate insights of profit and loss for your business.

Whether you are at the beginning stage of your business or are trying to beat the competitive forces in the market, this scalable accounting management app can help you manage everything with complete peace of mind.

How to maintain business accounts with myBooks accounting app?

myBooks is basically a cloud-based solution for your business accounting management. This modern app offers plenty of features that work on all smartphone models. Millions of businesses are already using this app, and they are satisfied with its incredible performance.

This app works perfectly for all small and mid-sized businesses; moreover, it can be employed for all industry verticals. The simple and handy features of this mobile accounting app make it easier to get rid of all the stress related to accounting transactions.

Here we have listed few points displaying details about how myBooks Android accounting app makes it easier to handle all financial transactions:

  • This smartphone-based accounting management tool is easier to manage. With its innovative features, it can make the entire accounting process simple and stress-free for new-age business owners.
  • myBooks is basically a cloud accounting software; it means one can access it at any time, from anywhere. Even if you are on a business tour overseas, you can track all the ongoing transactions at your business platform with ease.
  • Another interesting aspect of this free accounting app is its highly secured servers and data management tools. With this mobile app, you will find data transfers 100% safe while keeping adequate track of all transactions.
  • The experienced team of customer support professionals is always ready to serve your needs on a timely basis. Moreover, the daily backup process ensures higher safety to all the financial data.

With all such amazing features, you will find it much easier to manage all your accounting transactions. It can handle all your data on real-time basis with simple and interactive dashboard.

Categories
Financial Planning Small Business Accounting

Bookkeeping tips for freelancer workers

 

As befitting of a profession as it may seem, freelancing is not all roses and unicorns.  Even though you get to be your own boss, there are a zillion things you need to take care of in the process.  Work execution, client management and filing company taxes for freelance workers are all part of this job description.  It is of utmost importance that freelance workers keep their books up-to-date.  This not only streamlines their work, but also ensures that filing taxes by the end of the year is a hassle-free task.

Hire a CPA to file your company taxes for freelance workers.  A professional can also provide you with better strategies to manage your accounting and can help strengthen your financial gains.  Nonetheless, hiring an accountant is only beneficial if the scale of work is high enough to accommodate the need for an accountant.  Otherwise, it can be just another expense.  There are multiple considerations you need to make when hiring an accountant for freelancers.

If you just

started as a freelancer, then it is advisable you manage your accounting on your own for a while.  This will give you a good understanding of your business.  Work on your business’ growth and try to cover different projects, then hire an accountant to file your company taxes for freelance workers.  This implies that in your initial years, you will be on your own.  The first and foremost way to keep up with your finances is by ensuring your bookkeeping skills are on point.  Excellent bookkeeping skills allow you to account for every little profit you earn, as well as for the corresponding expenses.

Here are some tips and tricks from experts to help you stay on top of your accounting.

  • Stay organized

When you are the only person managing everything about your business, it can actually be easier for you to stay organized, as there is no middle man and potential miscommunication risk.  Bookkeeping is all about keeping track of your financial transactions.  It is really important you have a sound filing system.  For digital filing, have properly labeled folders and for offline management of documents, do the same physically.  If you find it difficult to do this on your own, then yes, it is time to hire an accountant – organization is the fundamental aspect of bookkeeping!  Something you can do to make sure your filing system works is opting for online invoicing software that will manage your invoice statements for a small monthly fee.

  • Make copies

It does not matter whether it is just a receipt or a lot more; every document is necessary and you might end up needing them at some point in time.  Tangible documents may not be prominent among millennials, but they can prove to be a lifesaver when filing company taxes for freelance workers.  Make sure that you have hard, as well as soft, copies of all documents and receipts.  This will ensure that, even if a file crashes on your system due to malfunction, you have a backup copy of every document that you might need to either file your taxes or for an audit.  Alternative: place your documents into cloud storage such as on the Google Drive, the iCloud, Dropbox, etc. 

  • Monitor your expenses

It is of great importance for freelancers to keep track of expenses.  People tend to focus on their income, but it is their expenses that play a critical role in managing their finances.  For freelancers, it can be difficult to track expenses as they are numerous and you are all on your own.  However, every penny you spend towards building your business is an expense.  So, detailed and thorough monitoring of your expenses will allow you to manage your finances and, consequently, prevent the squandering of your hard-earned income.

  • Plan ahead

Planning ahead for tax filing gives way to preparing and organizing in a better manner.  It ensures that you get enough time to streamline your documents and to make essential corrections in your accounting, when needed.  If it seems that you are falling behind in tax filing, then planning ahead can prevent any possibility of carrying over tax debt.  A rough estimate suggests that taxes cost you almost 30% of your income.  Make sure you build up to this amount adequately by planning ahead.

  • Transparency

Since you don’t need to answer to anyone, you might get tempted to sweep a few paychecks “under the rug.”  Yet make no mistake, the Internal Revenue Service (IRS) can audit any individual.  If the IRS concludes that you are trying to hide some of your income, then it can lead to big-time repercussions for you.

  • Keep track of your due payments

The way a freelancer earns money is through the projects they work on.  Once a project is completed and approved by the client, the agreed-upon amount should be paid and the freelancer moves on to new projects.  However, there always seem to be a handful of clients that take the term ‘freelancer’ too literally and create problems when it is time to pay up.  Do not shy away from sending emails to such clients, reminding them their payment is due.

It does not matter how small the projects you work on are: if you do not keep track of your accounting, it will eventually pile up and, by the end of the year when it comes time to file your company taxes for freelance workers, you will find yourself sitting on a pile of poorly-kept documents.  Well, fret not!  It is not too late to manage your accounting efficiently. 

Agro Accounting CPA is an online CPA platform that provides convenient and hassle-free business formation and tax services, along with taking care of your bookkeeping needs.  Visit the official website, www.agroaccounting.com, to find out more.  And hopefully, this article was helpful in guiding you through the essentials of bookkeeping.