PR Campaign Tricks for SMEs to Improve Start-up Business March 26, 2012

The prime reason behind most new businesses to fail is their poor marketing strategy. This realization has motivated many enterprises to divert their efforts into developing a strong public relations (PR) campaign, which can help them promote & advertise their business on a wider scale.

A public relations campaign can compose of many different channels including, promotional offers, broadcasting media, print media, etc. However, you must choose a public relations outlet that can best suit your kind of business.

Here are few important steps entrepreneurs may follow to help them choose the most profitable PR channel to promote their business:

Know Your Target Audience – Before you can actually go about developing a public relations campaign, you must first define your target audience. Depending upon the types of services & products of your company in relation to your target audience, you can then tailor your marketing campaign accordingly.

Identify Competitors – A subsequently important step is to define your competitors. There is bound to be strong competition in every business & in order to be able to outdo this competition, you must first have a thorough knowledge of the opposition. Identifying your opponents and seeking details like, their pricing, marketing strategies, etc can be instrumental in planning your own marketing strategy.

Calculate Advertising Budget – Once you have defined your target audience & identified your competitors, the next step is to look for means to promote your business. However, it must be noted that advertising a start-up can be a costly endeavour. For this you must have prior planning as to how much amount you can afford to spend for marketing strategy.

Self vs. Hired Promoters – Once you have your advertising budget ready, you can then make a decision as to whether you would require a public relations specialist or have the promotions done through other cheaper alternatives like, blogs, newspaper advertisements, etc. The only thing to remember here is that, while the cheaper means of promotions may not be very effective, on the other hand a skilled public relations specialist can help you in implementing more aggressive means of promotion.

If you can spend ample time on each of these steps, you are sure to have a marketing campaign that can easily outshine the campaigns of your competitors.

If you need any assistance in PR email us on media@smejoinup.com

Angel Investors – a solution to funding for start-ups and SMEs in India February 28, 2012

Angel investors get their name not because of some halo or golden wings that they have but because they literally serve as “business angels” (early stage investors) for start-up and small businesses, by providing them with capital and strategic assistance they are unlikely to find with other traditional investments. Angel investors are a blessing in disguise for businesses looking for greater returns.

Most often, angel investors are successful entrepreneurs who are a generation ahead in building successful companies & who wish to support the growth of a new business, by providing start-up capital while expecting a percentage of ownership equity as its return. One major reason angel investors are picking up popularity in India and other countries is because, in addition to providing entrepreneurs with financial capital, these Angels may also offer intellectual capital for entrepreneurs to shape and create their business and connect to resources, without actually becoming a part of the operations.

Though many believe that angel investors are difficult to find in India, estimates indicate that there are over 250,000 angel investors presently active in the country funding almost 30,000 start-ups a year.

smegetmoney.com – This is a portal which understands that finding equity funding for start-up and small businesses can be a tedious process. Thus, SME Get Money is aimed at connecting start-ups and SMEs with the right investors including angel investors to help them get equity funding within no time. What gives this portal an advantage over other similar portals is the fact that, it not just helps SMEs get funds but also aids them in finding profitable places to invest their own surplus funds as an ANGEL.

 

 

Investment Options For SMEs During Inflation February 16, 2012

There have been instances where the economy has faced an inflation phase, wherein the prices of services and goods automatically rise up. Consequently, the purchasing power of money is reduced to a large extent so that, now with the same amount of money you fail to buy the same goods or services as earlier.

Inflation may result due to a variety of factors. For instance, when there is an increase in the costs of raw materials, it automatically causes an increase in the prices of manufactured goods. However, the general rule of economy is that, “Cost of goods is inversely proportional to supply and directly proportional to demand”. The higher the demand for any particular product, the higher is the price of the commodity. Experts believe that a good way to counter price rise due to higher demand, is to ensure adequate supply to the market.

Top 5 Profitable Investments during Inflation

 Since inflation like conditions usually result into less purchasing power of money, it is important to ensure that investments made during such times are carefully & intelligently channelized. According to some industry experts, the trick is to make your investments into the highest gaining sectors that have the capacity to withstand crisis situations.

Real Estate – For those choosing to invest in real estate can do so with the help of investment vehicles like, Real Estate Investment Trust (REIT). Being a long-term investment, there are maximum chances for your investment to supersede inflation phase.

Gold – One of the safest bets for SMEs during inflation period is to invest in gold or other such precious metals. The reason being that, gold acts as an asset that you can always use in the face of sudden crisis. Other metals you may invest into include, silver, platinum, etc.

Stocks – If you plan your investments carefully and wisely, then investing in stocks can prove to be highly profitable. A good way to make your selections is to choose manufacturing companies producing such goods that people cannot live without like, pharmaceutical companies. Another profitable option is to invest in mutual funds, which can produce cash-rich balance sheet.

International Markets – An inflation situation in domestic market opens the door for offshore investments. Investing in the currencies, shares or equities of growing companies is a profitable idea. Not only does such investments ensure that your money is absolutely safe but also makes sure that by the time you are ready to receive returns, the inflation phase in your own market is superseded.

Crude Oil – Just like your profitable investments in gold & other precious metals, making investments on crude oil or petroleum by means of investment vehicles like, DBO & OIL, is also considered a safe option during inflation period.

 

Working Capital Financing – Quickest, Easiest & Safest Finance Solution for SMEs February 10, 2012

For the small & medium enterprises to function smoothly and have a constant growth in future, there is a need for continuous organized finance, that too from a reliable source. While it is a known fact that risks & speculations will always be an integral part of a growing business, successful entrepreneurs are those who keep funds available to back their strategies in order to undertake such risks.

Business experts indicate that, in order for your company to grow beyond defined boundaries, forecast the trends of future markets, create a commendable infrastructure, run successful marketing & promotional campaigns and simply pay off debts, dependable working capital finance is required.

Given the present business scenario, the key to a growing & successful business is to align it with the latest technologies. However, while applying techno-friendly strategies would accelerate the productivity & work flow of the company & help it get an edge over its competitors, incorporating these technicalities would also require a considerable amount of investment on your part and for that, what you require is a working capital boost.

For any startup business to reach out to its target audience & create a long-lasting impact, an effective promotional and marketing campaign is a must. The thing to note hear is that, even if you have been in the business for a long time, still in order to ensure that you do not take a backseat in the minds of people, it is important for you to continue with your promotional campaigns. Since, most of these campaigns are expensive; you again require a continuous working capital.

A part & parcel of every business whether new or old, is Debt Management. In order to ensure that you are not overburdened with debts at any point of time, it is important that you repay your debts at regular intervals. This ideally would require a continuous cash flow.

These are some business demands & needs that are bound to spring-up irrespective of the fact that you are a startup or an established company. This is where Working Capital Financing proves extremely useful for the entrepreneurs. Quick finance for meeting all these demands can easily be availed within 72 hours of application, that too without any application fee or collateral or any personal guarantee.

The most interesting thing about working capital finance however is its repayment scheme. Unlike other kinds of capital finances, working capital finance does not follow a fixed repayment schedule. It is only when a sale is made, that a certain amount automatically gets deducted from it as the repayment of the capital. For the loyal customers who are regular with their repayments, there are special programs & incentives.

Thus, in case you are looking for a spry financing option to meet the demands of your business, do not forget to consider working capital financing as the easiest & safest finance option and send  a request on https://docs.google.com/a/smejoinup.com/spreadsheet/viewform?hl=en_US&formkey=dERxVkQ5YjJtbWRueEowMURWTmZqOHc6MQ#gid=0 or email us on getmoney@smejoinup.com 

Do I need copyright protection? A question often asked by SMEs February 6, 2012

A Copyright, or a right over something you have written or an original artistic work, comes to you the moment you create something.

So you need not apply for any registration, as such. Merely by creating something original, you automatically get exclusive rights. Remember to affix a © at the end of the document along with your name or the name of your Company.

Registration only helps to document the date on which you created the original literary or artistic work. For instance, if you write something in the year 2007 and have it published in 2008, technically till 2008, you have no record of the work having been created.

The solution to this is to take print outs of e-mails or electronic files on your hard disk that show that you have created the literary or artistic work as on a particular date. That will help you claim a copyright over the work even without formal registration.

 If you would like legal advice on any issue, want to prepare documents and contracts or want to form an LLP, Company or Partnership, we recommend www.vakilsearch.com. SME Join Up readers get a 10% discount on vakilsearch.com services by using the coupon SMEJNP10

Setting Up Offshore Company – A Brilliant Tax Buster Solution for SMEs February 3, 2012

Although setting up an offshore company may sound a little weird to many, given the recent market trends, there has been an excessive increase in the success rate of companies opting to start their businesses offshore.

Starting an offshore company is not quite as tedious a work as many find it to be, in fact it may take even less than 24hours if all your resources are ready. However, an important thing to consider before setting-up an offshore company, is to carefully analyze all the pros & cons associated with the establishment of the company along with the benefits that you’ll reap from this deal. This is because, there are endless legal & financial benefits that make the option of an offshore company feasible.

Highlighting Benefits of an Offshore Company

• Minimized burden of personal taxation

• Most offshore companies are taxed low or exempted from taxes

• As long as an offshore company restricts itself from entering another business, it can easily exempt itself from most local taxation.

It is for this very reason that, establishing an offshore company can be of great help in reducing the tax burden of a company. Consequently, the routine operations of the company are also simplified & a great amount of time & energy that is usually required for filing of records & account auditing, is also saved. This automatically helps you cut down on the overhead costs & offers you additional time & energy to look into other vital elements of your business.

Another major advantage that comes with the establishment of an offshore company is that, since the setting up of such a company comes with extreme confidentiality rules, automatically steps are undertaken whereby all details of the company are kept out of public vigil.

Thus, for every business looking for ways to lessen their taxation burden, the best & safest option is to setup an offshore company. A similar kind of tax shelter is provided by the offshore banking. However, irrespective of whether you choose to setup an offshore company or bank offshore, take care to receive professional aid so that the legal procedures of the respective jurisdiction can be carried out smoothly.

Corporate Branding or Corporate Identity for a SME – Answer to a Successful Business January 31, 2012

Given the increasingly competitive market scenario, it has become vital for companies to establish a strong corporate image, in order to gain popularity & develop long lasting customer relations. With the increasing number of preferences at the disposal of your consumers, a strong corporate identity is what helps in setting apart your products & services from your competitors.

Branding & Marketing pioneers believe that the most essential & effective way of establishing a relationship with your surroundings, is to add a human attribute to even lifeless objects.

The foundation of a company’s identity is the company logo, consisting of a distinctive logo mark & the name of the company. Logo is nothing but the visual or graphical representation of your company, which is meant to convey the essence of your brand.

While most businesses fail to give much importance to branding, it must be understood that, corporate branding is a vital asset & must intelligently be invested in, managed & leveraged, in order to assure the success of the company. Business logos reflect the values & mission of the company. The more is the perception of consumers to the logo of the company, the greater are the possibilities of it being remembered & recalled by them.

The reason a strategic branding is so essential for the growth of the business is because, it cultivates a sense of quality, expectation & promise of your customers from your products & services. Corporate branding is especially important for the start-up businesses since, brand consistency can help your customers easily recognize your services & products. Most importantly, it helps them easily differentiate your brand from other competing brands.

The business market being a competitive one, it is essential to design your corporate logo in a way that helps it compete aggressively with other competing logos in similar markets. Creating corporate logo is not just about putting any image on the screen or paper, as many companies believe. Instead, corporate logo design requires a lot of research & discovery. Professional designers believe that, for a company logo to be effective, one must first be clear on the essence of the company & the key message to be conveyed. Thereafter, factors like, shape of logo, size, colour, etc must be taken into account. Take care that all these elements relate to the essence of your company & has an impact on your target audience.

With a channelized corporate branding & effective logo design, you are sure to be successful in meeting your goals & reaching out to your target audience.

For any help on corporate branding or corporate identity email us on media@smejoinup.com

Common question asked by a SME …When is it advisable to form a Company? January 26, 2012

As we saw earlier, in the case of small businesses with low initial capital and the core group consisting of friends, it makes sense to start with a partnership owing to the cost and speed of starting up.

A Partnership is not suitable for enterprises requiring high initial investment or where there is very valuable intellectual capital involved.

In such cases, it makes sense to form a private limited company – here the initial cost and the regulations you need to comply with are much greater, but you have many advantages too. These include:

1. Limited liability (your personal assets cannot be used to discharge the debts of the Company)
2. Easier to attract investment: A private limited company is much easier to draw investment into. You can dilute as little as 0.001% stake in exchange for capital infusion in the business.
3. Developed legal ecosystem: The legal and regulatory ecosystem surrounding companies may be rigid, but it is well developed. So for example, if you have a dispute between directors, there are many decisions of Courts and the Company Law tribunals which will provide clarity on the subject.

 If you would like legal advice on any issue, want to prepare documents and contracts or want to form an LLP, Company or Partnership, we recommend www.vakilsearch.com. SME Join Up readers get a 10% discount on vakilsearch.com services by using the coupon SMEJNP10

Less Known Finance Solutions for SMEs January 23, 2012

It is a known fact that the MSME sector of India is the major contributing sector in the process of employment generation, economic growth, import & export & most remarkably to GDP.

In spite of this knowledge, we are frequently approached by SMEs & start-up businesses that are facing problems in obtaining financing, although numerous Govt. schemes & priority to SME finance in most banks have been included.

For all those SMEs, it is important to understand that the actual problem is not the bank policies or Govt. schemes but indeed, the lack of sufficient knowledge among entrepreneurs. While Govt. has endless schemes like, CGTMSE (Credit Granted Trust for Micro & Small Enterprises), CLCSS (Capital Linked Capital Subsidies), etc, it is for SMEs to decide which would be the best solution for problems like, high cost of machineries, lack of capital finance, collateral security, etc.

CLCSS Solution: This scheme was introduced by Central Govt. through the ministry of SSI Govt. of India in order to tackle the problem of high cost of modern machineries. According to this scheme, technical up-gradation for SMEs in specified sectors is facilitated by providing them with 15% capital subsidy.

CGTMSE Solution: The Central Govt. addressed the issue of collateral securities by introducing the CGTMSE scheme, whereby collateral-free credit is availed to SMEs, for start-ups, up-gradation, expansion & capital requirements.

At present, SMEs are receiving working capital & financing term loans of up to 100 lakhs from most SIDBI & nationalized banks, that too without any collateral securities. This is made possible only due to credit guarantees from the CGTMSE.

Alternative Solutions: Besides the usual financial aids from financing & commercial institutions, there are a lot many other finance alternatives like, Venture Capital, Private Investors & Private Equity.

For SMEs to have a smooth run on their success path, they require frequent support from banks, alternative finances & their own resources. Thus, if SMEs can choose the right resources at the right time, they can easily ensure a smooth cash flow.

 

 

 

 

 

A question often asked by SMEs – What is PR? January 19, 2012

1. PR or Public Relations means your company relations with the media which is very essential for brand building.

 

2. How does PR help you ?

In PR we have press conference or press releases where we inform 20-30 newspapers (print media) about your new product launch, expansion plans, events happening in your company, awards bagged, or any major news that you want to announce, and the press write about it. So when we do a press conference or press release the news keeps coming over a period of about 2 to 4 weeks, 2 in one paper on a given day, 3 in another day and so on. This creates branding for a month long period. If you have longterm relation/retainership with us, then we will keep you in the news every month. We will get you featured in 4 to 6 articles in different main Newspapers / Magazines / Webpapers.

 

3. PR has more credibility than an Ad

In an Ad you can talk about your company, so you will naturally talk positive and blow your trumpet.

In PR the newspaper is talking about your company, so a third party is talking good about you, which is more credible.

 

4. PR is much more cost-effective as compare to an Ad or Event.

A single quarter page Ad in the most reputed and common daily will cost you anywhere between 80k to 1.4lakhs. In less than that cost, you can get coverage in 20 newspapers.

 If you are interested in trying out PR (online as well as offline ) , we have different packages suiting different budgets for you – email us on contact@smejoinup.com