The latest initiatives of the Government of India have caused an upsurge in the number of startups. Experts attribute this to the amazing growth of ecommerce in the country.
Business trends always remain dynamic. Combine it with the easy availability of business loans. Making money at present is easier than ever. All you need today are a stable financial backup and a good reputation in your network. Given below are some among the most popular business ideas:
1. Drop-shipping
Are you struggling for the money to actualize your pet business idea? If yes, drop-shipping is the one for you. This is an online model of business where the drop-shipper does not have to manage any real product. All it needs is an online store and a partnership with a supplier. The supplier stores, packs the products and sends to the drop-shipper’s customers. The person does not even have to look for products. The Internet abounds in drop-shipping aps meant to help small businesses.
If storing inventory is not a trouble for you, you may even take orders from wholesale suppliers. There are great many of them. Type your keyword on your favorite search engine. It will come up with as many of them as you want.
2. Offer financial services
Financial services like book keeping and accounting are always in high demand. This remains the situation even when the economic prospect of the country is slightly dim. You may work as self-employed consultancy from your home or start your own office. If the capital required is too large for you, you may look for business loans. There is numerous government schemes designed to help small businesses. Pradhan Mantri’s MUDRA Yojana is one among such initiatives.
3. Start a catering service
Do you have what it takes to succeed at any cost? If yes, starting a catering service may be the one for you. If you work hard, you don’t even need your own building to operate a catering business.
The industry at present is on the lookout of well-established caterers. Fill in the requirement and become a millionaire within no time.
4. Run a travel agency
Does your dream job involve travelling to exotic places? If your answer is yes, a travel agency is the right thing for you. You may have to attend online or offline small business courses designed for the purpose to earn the certification you need for the job. Still, if you have the passion, the business will make you a millionaire in a few years. A degree in travel and tourism too may be of help.
If you plan to start a full-fledged agency, you may choose from among the business loan schemes available for small businesses. Numerous banks, private financial institutions and government schemes are there to assist such ventures.
5. Franchising
Franchising is a form of licensing valid for a longer term. It is a business model popular in the service industry. The business institutions like hotels and restaurants sell rights to their business models and brands to third-party vendors. The amazing thing about franchising is that you don’t have to spend time creating awareness about your brand. You don’t even need a business model. These two become readily available. This saves you time and money. You are allowed to focus on the other aspects of your business.
Certain franchisers even offer a playbook. It will have all the information you need to boost sales without draining your budget.
6. Become a freelance writer
If you are a passionate writer, you may consider becoming a freelance writer. All you need is a laptop and the willingness to work hard. You can provide your services to the company of your choice as a freelance writer. Test the authority of the website before registering yourself on it.
The business does offer a stable income. But maintaining the same requires more than experience.
Exploring the availability of business loans
Capital is the hurdle for most small business owners to realize their dream of becoming a successful entrepreneur. This is never the situation anymore. Getting a business loan today is easier than ever. See to it that your business fulfills the following requirements:
1. Have a detailed business plan
A good business idea is just the beginning of a venture. In the same way you plan well when organizing an event, your business too requires a well-outlined plan. In fact, it is an essential element of your attempts to ensure the capital required for your venture. For instance, you want to set up a food processing plant. If its plan does not have detailed information on how you plan to treat waste water, lenders will reject it. Evaluate the economic and social feasibility of your business and prepare a plan accordingly.
2. A proper mechanism to manage the flow of cash
Your lender decides on the eligibility of your loan application based on your perceived ability for timely loan repayment. Assess your business’s debt service ratio. This determines the cash available with your business to handle your debts. Do the following to ensure timely payment of loan for your business:
- Ensure discipline in payments
- Eliminate unwanted expenses
- Pay the invoices of your business on time
- Minimize your overhead spending
3. Take measures to raise your credit score
A higher credit score means that your business is a low-risk firm. This evaluation helps you get a loan at the earliest. Certain lenders even asses the applicant’s personal credit score. Thus maintain a good credit score to make sure that your loan application never gets rejected. You can do the following to help your business here:
- Keep your credit rating ratio at 25% all the time.
- Pay your bills on time.
- Have more than one credit account.
4. Keep all your documents at hand
Keep all your documents available at hands. This creates the impression that you are always organized. Given below is a general overview of the documents you need for the purpose:
| ID proof | Aadhar card, driving license, passport etc. |
| Proof of address | Ration card, election card etc. |
| Bank statement | For six months |
| ITR along with balance sheet | Of previous two years |
| Proof of continuation | Trading license |
5. Have a repayment plan in place
This deserves utmost priority when applying for business loans. Outline it in your business plan. It will assist in your efforts to obtain creditor confidence. You may use an EMI calculator for the purpose. See to it that the repayment of your loan does not affect your firm’s day-to-day operations.
The time when getting finance required to actualize your dream as an entrepreneur is long gone. Brainstorm your idea, prepare a plan, explore your options in business loans; start that dream venture!
FAQs
1. How would you define a startup?
There exists no one-size-fits-all definition for a startup. According to market analysts, a startup is a new venture that applies an innovative business idea. Analysts also offer contradicting views when a venture stops being a startup.
2. How to choose my business?
You should choose a venture that you are most passionate about and skilled in. Prepare a list of your skills and expertise. Narrow down the list. And choose the one that stands the tallest.
3. What are the costs involved in starting a business?
It depends on your business model and the pace at which you want your business to grow.
Your initial expenses will include the following:
- Developing your product
- Preparing a team to run your business
- ? And the cost of the technologies required.
As your business grows, you will need to find an ideal location. You will also need to spend a bit to announce your arrival in the market.
4. How to get the funding required for my business?
There are numerous strategies you can deploy to acquire the funding required for your business. Applying for business loans, crowd funding and borrowing from friends and family are just a few among them to mention.
5. What is the minimum and maximum limit in business loans?
The minimum loan amount for a business is INR100000. And the maximum available amount in a general scenario is INR40000000. It may vary based on your discussion with your lender.
6. How does loan repayment work?
Business loan repayment happens through your bank account. You repay them in EMIs (Equated Monthly Installments). The borrower has to give a few post-dated checks. He should also sign an electronic clearing service mandate with the bank.
7. What will happen if I miss an EMI?
It will get reflected in your credit report. Your credit score too will get affected if the payment is a huge amount. And it will affect your ability to borrow in future. The bank also has the power to take legal action against you.
8. What is the most successful small business?
Success for a small business depends on your willingness to work hard. The capital you set aside too play a vital role here. An aggressive marketing campaign too is a must for a business to succeed. Given below are some generally successful businesses:
- Cleaning services
- Financial services
- Legal entities
- Veterinary facilities
9. Why customers prefer small businesses?
Small businesses always form a close relationship with customers. They respond to complaints faster than their big counterparts.
10. What is the interest rate of business loans in general?
The interest rate of business loans range from 16-5%. It also varies based on the type of loan you choose.