Business and Finance
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If you know anything about business finance, you must have heard about working capital and that it is linked to short-term assets/liabilities. As soon as, you search for this on the internet you will find tons of rehashed resources. You will certainly get the list of line items on each side, but not the understanding […]
In 1979, Harvard Professor, Michael E. Porter first proposed the Five Forces Framework in his HBR article, titled “How Competitive Forces Shape Strategy”. The model explores five factors that influence the dynamics of an industry that ultimately impact the profitability of the operating firms. In combination with PEST and SWOT analyses, Porter’s Five Forces completes […]
As an entrepreneur you must have heard, and for good reason, that stakeowners invest in promoters rather than the business. Stakeowners are not just your investors. They are your customers, partners, vendors and all interested parties. Smart founders can convert a fledgling thought into a profitable enterprise. On the other hand, sparkling ideas can go […]
In the simplest terms, Microsoft Excel dashboards are condensed and mostly, visual representation of data sets, including but not limited to tables, charts and graphs. It is a visible display of the most crucial information needed to reach multiple objects, consolidated and arranged on an individual screen so the information may be monitored in a […]
The origins of the popular PEST analysis can be traced back to Harvard Professor, Francis J. Aguilar’s book Scanning the Business Environment (1967). With the same elements as PEST, he called his framework ETPS. Aguilar proposed four primary elements of the macro-environment – Economic, Technological, Political, Social – that impact enterprise success. By the 80’s, […]
Not a very long time ago, the experts were still weighing the costs and merits of CSR. But, it is an established fact in today’s business environment that socially responsible organizations command higher respect and consequent benefits. In the broadest sense, Corporate Social Responsibility can be defined as the duty of companies to take an […]
[This Knowledge Base series will include our answers to select questions on Quora.com and miscellaneous queries we get from our customers, partners and other interest groups.] How do I explain other people that making traditional business plans for early-stage startups is a waste of time?
If this title got you excited, you could be a fan of television shows, where unlimited money seems to be on offer and deals close in minutes. The real world could be different, though. Once you have a prospective investor excited about your team, your merchandise, and your business, they will invariably ask about your startup […]
The current Goods and Services Tax regime in India allows threshold based exemption from registration. Any business supplying goods or services worth less than ₹20 lac (₹10 lac for North-Eastern States) within state is exempt from enrolling under GST. This also implies that tax on inter-state sale is applicable from ₹1. Once a person is […]
A business without a strategy is like a rudderless boat and a strategy that looks only inward is a recipe for disaster. In addition to the inner workings, the external operating environment has a profound impact on enterprise success. Therefore, it is equally important to look at the opponents, market potential and everything in between. […]
The money supply statistics are important indicators of economic changes. They are used to assess the investment and general business environment in a country.Get more than 13 years of actual quarterly money supply data for China and bonus GDP data! Inclusions: Quarterly M0, M1 and M2 supply in Chinese economy for last 13+ years Common […]
Success in any business is a result of a number of factors arranged together optimally. However, some of these factors form the foundation without which other would not function. Idealab’s founder and CEO, Bill Gross shares his views on the key drivers of success and which one stands out.
Foreign investors in India adopt thinly capitalized or highly leveraged business structures. Thin capitalization implies a high debt-to-equity ratio, primarily designed to lower tax liability. The effective Dividend Distribution Tax rate in India is 20.36%, whereas, interest paid by a subsidiary to its foreign parent is subject to a withholding tax @5-20%. The Indian […]
Money supply or money stock is defined as the total or aggregate amount of currency and liquid instruments (cash, coins, checking & savings account balances, and any other liquefiable assets) existing in an economy at a given point in time.
The items of information collected to support market research are often referred to as data, which can be of two types – primary and secondary. You must pay attention to analyzing your market, irrespective of the size of your business.
WannaCry ransomware requires the users to pay certain amount (~$300) in bitcoins to “unlock” the encrypted files and threatens to double the ransom in two days. If the demands are not met, the malware threatens to delete the files. Several users have already remitted thousands of dollars. While all fingers point at the U.S. security […]
Get authentic 10 year M0, M1, and M2 money supply data for China at 6% Discount!Money supply statistics help in setting a Central Bank’s policies, as well as, estimating the interest, inflation and economic cycles. Inclusions: Quarterly M0, M1 and M2 supply in Chinese economy for last 10 years Common definitions Yearly charts for all […]
Before you pick up the telephone and start dialing arbitrary numbers or hurrying out there and informing individuals about what you would like to sell them, you must first determine who would like to be your audience. This is the segment of the total market from where you will get the major part of your […]
Your break-even point is probably one of the most effective pieces of info when controlling the stresses your company’s profitability. Let’s start with an easy definition: break-even point is the amount of sales that you need to generate to cover your entire variable and fixed prices. That implies that the company hasn’t made any profit, […]
Every business, regardless of whether it is some MNC giant or that small bakery towards the end of your street, needs to manage its cash flow properly in order to survive. Many small companies believe that the statement of cashflow conveys the same information as the income statement. The reality though, is different.
Now that you know why working capital is critically important to keep an organization running, the next step is to estimate how much you need. Hypothetically speaking, if all transactions were in cash and done with no time lag, the working capital requirement would be zero. To illustrate this point, let’s suppose a company buys […]
[Firstly, warmest new year wishes to all our customers, readers, and the extended Eurion family] In my experience as a business consultant, the single most important attribute of an entrepreneur is the aptitude – natural or developed. Aptitude is the biggest facilitator of success and everything else follows. As Guy Kawasaki puts it, “Entrepreneurship is […]
How many times, as an entrepreneur, have you heard the term “working capital”? How many time have you heard that without it no business can survive? So, what is this thing? In nutshell, it is the total amount of finance a company needs for running its operations in the short term. What is “short-term”? The […]
Whether you are an entrepreneur writing a business plan or a recognized firm seeking to introduce a new product or service, you will need to estimate the size of the market you plan to serve. Easy as it may sound, this is the trickiest and most crucial segment of building or growing a business. You […]
As a startup founder, you will frequently have to explain just what your company does. This is where the Elevator Pitch (or, Lift Pitch) comes in as a brief summary of your business, the work you do, and why it matters.
You have an invention — something that would fill a need and make life easier. It might even make you some money, if you could get the exclusive right to manufacture it or sell the rights to it. In other words, you need a patent. But the patent attorney wants money to file a patent […]
With the April 1, 2017 GST deadline fast approaching it is a race against time for the lawmakers, tax department and taxpayers alike. New developments are happening each day. The Goods and Services Tax Council has made the much anticipated move and decided on the final tax rates. While much is still up in the […]
Unlike in case of Memorandum of Association (MOA), registration of the Articles of Association (AOA) is a non-binding requirement for a company. Section 5 of the Companies Act 2013 provides that the Articles of a company are to contain the rules and regulations for management. Accordingly, the MOA deals with the powers and limitations of […]
The Memorandum of Association (MOA) is a registered document containing all the legal data essentially required for the incorporation of a company and available to the public. Section 4 of the Companies Act 2013 describes the 5 clauses that must be included in the document. The preparation of a Memorandum is a legal requirement for […]
It is mandatory for government departments and public sector units to procure at least 20% from the micro and small organizations. The rule that came into effect from April 1, 2015 was designed to create greater opportunities for micro and small enterprises (MSE). To support the entrepreneurial ecosystem, the Startup India Action Plan recommended […]
The Government has brought into effect most of promises regarding ease of doing business as laid out in the Startup India Action Plan. Apart from getting their businesses registered in one-day, startups can now self-certify on labor-related statutory compliances. Self-Certification Once a business is recognized as a startup, they will be allowed self-certification under the […]
At the time of announcing the Startup India Action Plan and Budget 2016, the Government had promised to expedite business registration processes as a measure of improving ease of doing business. One-day business registration, after some initial technical glitches, has become a reality. Private companies, OPCs and public companies can now get up and […]
Startups, micro and small enterprises usually do not find much favor with banks. To break this pattern in India, the Government has come up with various schemes that ensure small business loans at relatively easier terms. Most schemes are backed by credit guarantee and refinance for the lending institution. It helps the borrowers by […]
India wants to establish itself as a patent registration hub, such that the startups from anywhere can register here. Towards this end, the Government has implemented a lot of intellectual property related proposals laid out in the Startup India Action Plan (Read here). The proposals now have a concrete structure in the form of the […]
The Goods and Services Tax is soon going to be a reality in India. While the Government is still finalizing the rate and fleshing out the details, here is a look at what GST means for ecommerce, one of the biggest startup sectors. The Draft Bill talks about two key players: Aggregator: owner and […]
The Indian law for patents is enshrined in the Patents Act, 1970 as amended by the Patent (Amendment) Rules, 2016. So what is a patent? A patent is an exclusive monopoly given by the Government to an inventor over his creation (innovation) for a limited period of time. Innovation can be understood as a brand […]
Reproduced from our original post on LinkedIn (June 1, 2016) Donald Trump says a lot of things, mostly crass, divisive and slighting. He has spoken once again – this time about a possible tech startup bubble, which is due to pop. I’m talking about companies that have never made any money, that have a bad […]
If you are looking to start a new business, making your way through the legalities is the going to be the least interesting part. Though, you’ll do well to acknowledge that they actually form an essential part of initial business planning that converts your idea into a reality. For instance, legal business structure is an […]
Updated: June 27, 2016 The much speculated Grexit is no more a threat, at least for now. Instead, last Friday, June 23, 2016, the Britons did something unthinkable – the Brexit. A lot happened during the referendum campaingning – arguments, fear mongering, gossiping, and even, false promises. The results have brought in a fresh wave […]
There has been a barrage of not-so-good news for the startup community, with funds flow ebbing and investors toning down their expectations. Morgan Stanley Institutional Fund Trust Mid Cap Growth Portfolio, Fidelity Rutland Square Trust Strategic Advisers Growth Fund and Valic Company I Mid Cap Strategic Growth Fund have marked down the value of their […]
We published an article, What Is Keeping The Oil Prices Low? in February that highlighted the reasons behind the current downturn in crude oil prices and its impact. The following is an update on that material. The June WTI is trading close to $48.35, while the July Brent is at $49.11, implying an improvement by […]
On an average, out of every 10 startups 1 will be truly successful; 3 will completely fail; and the rest will tide along till they too collapse, or get taken over. The reasons could be numerous, ranging from weaker domain expertise to lack of planning. However, limited access to required funds still poses the biggest […]
Startups and MSMEs have caught the Government’s attention as potential sources of economic growth and employment generation in India. The Prime Minister rolled out Startup India Action Plan in January this year, indicating that the Government is serious towards creating an enabling environment for this sector. Eurion Constellation published an article series on some of […]
Finance Bill 2016 has introduced section 44ADA to extend presumptive tax scheme to professionals. Opinions remain divided on whether 50% is too high a rate. Another implication of it has stumped partnership firms, where taxable profits end up more than the actual profits!
One of of the key challenges faced by the Government today is increasing the ease of doing business in India that will provide impetus to self-employment and instill confidence among the investor community. Presumptive taxation is one such provision in the Income Tax Act. If you are a startup, micro or small enterprise you might […]
Budget 2016 has left behind a trail of disgruntled taxpayers with some strong pressure for rollback, particularly in case of EPF taxation. The measure in itself may not be “anti-people”, but the lack of clarity in budget speech definitely led to some misinterpretation and the Government had to clarify. Read details about why taxpayers are […]
A quick look at 14 key tax proposals from Budget 2016, explained through infographics. Watch this space for more insights Website: www.eurionconstellation.com
Some key statistics from the Economic Survey 2015-16, presented as a part of the Budget session 2016. These include past year’s performance and forecast for next period, explained through infographics.
Throughout the history, oil prices have had a roller-coaster ride and the trends do not make sense all the time. The current downturn has once again brought into focus the complex dynamics behind this crucial commodity. This article covers the very starting point in this story – the determinants of oil price. The rate of […]
The Union Budget 2016 is expected to have a big focus on developing entrepreneurial ventures and supporting the existing micro, small and medium enterprises (MSMEs). The Government shares the industry’s view that this segment will drive the future economic growth in a big way and generate employment opportunities. Some of the key demands of the […]
The Budget session starts from February 23 and the rising cost of living is expected to figure strongly this year. Individuals expect to see a revision in various exemption limits and industry associations, like Assocham, are also highlighting areas where a change is overdue. Share your opinion on the tax measures you want to see […]
Through its draft Startup India Action Plan, the Government has indicated its commitment towards a conducive ecosystem for startups. Continued from our previous post in this series, the new norms for eligible enterprises are as follows: Self-Certification for compliance (See Update) Mobile and web platforms (See Update) New rules for Intellectual Property Rights Management (See […]
The Budget Session 2016 will commence from February 29th and individual taxpayers are waiting with high hopes. While Finance Minister Arun Jaitely has already made it clear that it is not going to be a populist budget, revisions are expected in the areas where changes are overdue.
Acknowledging the legal and infrastructural hurdles faced by startups, the Modi Government has announced some key initiatives through its flagship Startup India Action Plan. The proposed regulatory simplification for new ventures eligible under the Plan are: Self-Certification for compliance (See Update) Mobile and web platforms (See Update) New rule and services for Intellectual Property Rights […]
While the last two years altogether have been a volatile period for oil prices globally, they have been in a free fall since the last quarter of 2015. Benchmark Brent closed at $33.10, while WTI closed at $32.30 on last Wednesday, January 27. The prices have fallen by about 70% from June 2014 peak prices. […]
Speaking of startups, the Finance Minister said, “The more the sector becomes unregulated, the better it will be. One of the reasons why India became an important IT hub was because we had no laws governing it. The entire Startup India campaign is intended to create a supporting system.” The Startup India Action Plan has […]
It may be too early to comment upon how Startup India Action Plan will be put into practice – administratively and legally – but it is certainly a bold step forward in developing entrepreneurial initiative in India. That said, it is not free from contentious issues. With the Plan clearly underlining the Government’s inclination towards […]
It was in 1999 that 17 member nations from the European Union came together to form a powerful economic alliance, known as the Eurozone. The Maastricht Treaty of 1992 laid down stringent criteria to gain a membership in the alliance. Euro became the face of this congregation, standing in direct competition with the strongest currencies, […]
Brimming with young energy, India presently is a fertile ground of opportunities for the businesses of all sizes. In the startup space, market trends project eCommerce, logistics, IT, and the hospitality sectors as the game changers. As they become stronger, the demand for resources – human, capital, and liquid – is also increasing. The share […]
Coming to terms with the American Taxpayer Relief Act of 2012 to tackle the fiscal cliff, the U.S. are in a dilemma over the way forward. After much reluctance, on March 1, President Obama finally approved the Government spending cuts referred to as “sequester.” According to him, “These cuts are not smart. They will hurt […]
In February last year, Nokia (NOK) made a late but wise decision of phasing out its proprietary Symbian OS in favor of Microsoft’s Windows Phone OS. With the coming together of the two struggling giants, a third force has begun creating its place in the smartphones market. Till now, Google’s Android and Apple’s iOS have […]
Updated October 15, 2012 On Monday, EURUSD closed at 1.2949, 0.03% lower than Friday. Euro continues the uptrend from its support level of around 1.2100 in late July. Greek 10-year yields touched a new low since its last debt restructuring in March this year, falling 47 basis points to 17.58%. The good news is that […]
Greece may not be able to keep an almost sure bankruptcy at bay for too long. The signs are clear. It has defaulted on its bailout package terms, again and again, and now, it is planning to ask for another extension up to 2016 – a request most likely to go unheard.
Finance Minister Pranab Mukherjee indeed had a tough job doing the balancing act between macro economic factors and interests of the masses. However, Budget 2012 has come up particularly hard-hitting for the common man. While overall prices are likely to go up, tax reliefs are not as expected. The incremental cash outflow on account of […]
The eyeballs will be glued to the television in a short while from now, as India looks forward to its annual budget for FY 2012-13. Eurion Constellation conducted a survey of tax-related expectation of the average individual taxpayer. The results were enlightening with a good number of people favoring tangible measures to check inflation over […]
As per Investopedia, a financial budget is “An estimation of the revenue and expenses over a specified future period of time.” They are often helpful for an individual or entity which is involved in monetary transactions. From a student to the Government, everyone can benefit by building a blueprint of their incomings and outgoings.
Throughout the history, silver has closely followed gold in terms of popularity. It has never lost its sheen even after its discontinuance as a currency standard across various nations. Times of economic uncertainty and rising demand have been the key drivers of its price, more in present times than ever before. Once again the advantages […]
Similar to gold, silver is a precious metal that finds great use as a safe investment to hedge against inflation and economic turmoil. Silver is often known as the poor man’s gold. You can invest in bullion coins just like gold and in multiple other ways. Know that you have found a winner in silver. […]
Even though credit cards offer extraordinary advantages for the buyers, making it possible to ‘buy now and pay later,’ they might not come without any downsides. The same quality of simplicity that they provide, also tends to expose them to various kinds of frauds and high volume scams. Knowing the challenges facing your credit card […]
On March 11, 2011, Japan was torn in, what may be termed as one of the worst earthquakes of all times. The following 10-meter high tsunami flattened the entire Pacific cost of the country, sweeping away ships, vehicles, people, and homes alike. Though the early warning systems did prevent some loss of life, the death […]
Union Budget 2011 was being approached by much curiosity and anxiety. FM Pranab Mukherjee presented the Budget for FY 2011-12 in the Parliament earlier today. As the provisions were rolled out, the Bill turned out to be a mixed bag. The FM had a tough task of balancing the conflicting goals of lower taxation, lower […]
Though the world might not have watched the events in Tunisia or Egypt with much interest, Libya is certainly an eye-opener. As the Arab Spring spreads to Libya, it could be one of the first signs of a bigger political-economic crisis than previously thought. The Potential Fuel Crisis We can argue that Libya constitutes only […]
After going over a topsy-turvy path the U.S. economy seems to be stabilizing. Since early last year, the numbers had been discouraging that lead to the downgrade of growth expectations. However, the last quarter 2010 results have registered an impressive comeback, beating all previous forecasts and promising a concrete path to success. On the other […]
The pro-democracy revolution in Egypt had only a limited impact on the markets, given its tiny role as an oil exporter. From the transport point of view as well, Suez Canal has allowed the traffic (>5% of total traffic) so far. However, the case of Libya is different – it the first time since the […]
The anti-Mubarak stir in Egypt has proved to be more potential that previously imagined. With Mubarak finally reeling under the pressure to step down after a prolonged state of denial and no definite Government system yet in place, the fate of Egypt has become somewhat more precarious than before. At the heart of the protests […]
In layperson terms, bonds are investments with fixed rate of return, unlike equity shares. This explains why bonds are often referred to as ‘fixed-income securities.’ The return on investment, in this parlance, is known as ‘yield.’ In the real terms, though the token rate of interest payable on bonds is fixed, the yield tends to […]
Read Time: 4 min 6 sec Liquidity ratios are working capital assessment tools, used to measure an entity’s ability to fulfill its financial obligations in the short-term. This includes ready cash or instruments that can realize into cash swiftly. These resources must be sufficient to pay off liabilities that are due in the short-term. Two […]
You must have come across the term GDP growth as a barometer for economic growth of a nation. In layman terms, the higher this rate, the better the economy is believed to be performing and vice-versa. But, what is GDP? Gross Domestic Product, or GDP, is defined as all final goods and services produced in […]
U.S. based manufacturer of advanced process control metrology systems, Nanometrics Inc. (NASDAQ: NANO) is among those small stocks that generate much investor interest. On January 14, 2010, NANO made an impressive rally, gaining almost 30% to reach $17.96, by the end of day’s trading. Volumes also moved to over 5 million.
There are three primary liquidity ratios – Current Ratio, Quick Ratio, and Super-Quick Ratio. The purpose of these performance indicators is to assess the health of the working capital. In other words, they measure an entity’s ability to fulfill its financial obligations in the short-term, i.e. short-term solvency. The reference period is 12 months or […]
There was a time when Spain’s economy was the fifth largest in Europe, growing on the back of its enormous real estate sector. At that time, about 16% of Spain’s GDP came from its construction activities. The profit margins were very promising and attracted a lot of activity, which over time became over activity. This […]
As the common masses reel under the historic austerity measures, the latest numbers suggest a recovery for Spain’s economy. The fifth-largest Economy in Europe has seen some unprecedented hardships, ever since its real estate bubble busted around 2007-08. Spain’s Government deficit shot up to 11.1% in 2009, much to the annoyance of the European Union. […]
Now, that the Commonwealth Games 2010 are over and the results pouring in, the regulators and investigation have started their probe into what can turn out to be one of India’s largest financial scams so far. The original budget for the Games was set at Rs. 3,800 crore. However, on the basis of the Joint […]
Looking at the magnificent opening and closing ceremonies, smooth organization during the event, the enthusiasm of the spectators, and the hype around the 19th Commonwealth Games, it is hard to imagine how miserably it fell behind its goals in financial terms.
The latest numbers for the lagging US economy are disappointing. The unemployment rate is running the highest in 26 years, the manufacturing output is low, the housing sector remains fragile, and the overall Q2 2010 results have been weaker than expected.
The outlook for high-pressure CNG cylinders market in India is positive. With Government initiatives for facilitating the discovery & exploration of natural gas, growth of robust distribution channels, fiscal benefits to the manufacturers of cylinders, retrofitting of CNG kits, tax exemption for commercial & heavy vehicles and new licensing policy, the industry is likely to register impressive growth over the […]
After touching a dangerous high of 364 basis points late last year, the benchmark LIBOR-OIS spread reached to a level of 25 basis points on August 3, 2009. In layman terms, it indicates the extent of credit market rotations. The current levels are indicative of easing credit markets, which almost froze after the collapse of […]
Updated: May 2016 Gold needs no introduction – a cherished commodity in some cultures and one of the most preferred investments, en said specially in turbulent times. If you are investing, take it as a long term value proposition, rather than a short term profit making tool. Whenever the global economy hit a roadblock, gold […]
Ever since, the first signs of the recession began showing in India, the Government has come up with various incentives, apart from measures by RBI. The Central Bank has took some steps, such as reducing the benchmark lending rate; lowering cash reserve ratio (CRR); and easing lending norms for commercial banks to provide boost to […]
The US Subprime crisis (over USD 5 trillion in losses) began to reveal itself somewhere in the last quarter of 2006. It’s full impact was still anyone’s guess. However, soon it began gripping the global economy, toppling financial markets; setting off a long recession; and pushing marginal countries, like Iceland, on the verge of bankruptcy. […]
The recent tidings in the global market has put a question mark on the decoupling theory, which claims that a nation’s economy is not impacted by the state of other economies. The subprime crisis concerned primarily the US, but had a ripple effect on almost all of the other nations due to the interdependence and […]