Strategies for Success

Have Grit — Persistence over the long haul is key

Know Exactly How Far You Have Left to Go — Monitor your progress

Get Specific — Have a crystal-clear idea of exactly what success will look like

Seize the Moment to Act on Your Goals — Know in advance what you will do, and when and where you will do it

Focus on What You Will Do, Not What You Won't Do — Instead of focusing on bad habits, it's more effective to replace them with better ones.

Build your Willpower Muscle — If you don't have enough willpower, you can get more using it.

Focus on Getting Better, Rather than Being Good — Think about your goals as opportunities to improve, rather than to prove yourself

Be a Realistic Optimist — Visualize how you will make success happen by overcoming obstacles

Don't Tempt Fate — No one has willpower all the time, so don't push your luck

10 Tips for Start-ups

Before you make the leap – 10 tips for start-ups

Hundreds of thousands of new businesses are formed each year. Some will be a great success, but the vast majority will no longer exist in five years time. One of the main reasons why businesses fail lies in the preparation stage. Start-up Entrepreneurs often have unrealistic expectations, fail to spend time on research, or fail to adapt to changes in the marketplace. With this in mind, here are ten tips for potential small business owners to consider before making the leap from being an ‘employee’ to running a small enterprise.

1. Is there are market for your product or service?

Before making the jump, you must be certain that people or other businesses have a need for the product(s) or service(s) you intend to supply.

2. How strong is the competition to your business?

Is there a gap in the market for your product(s) or service(s)? Is competition in your chosen sector intense, or weak? Do you have any Unique Selling Points (USPs) to differentiate yourself from the competition?

3. Have you secured funding for your start-up?

Many new businesses are self-funded, however others may require a business/ bank loan, or alternative financing facilities such as factoring in order to get going. Ensure you have a contingency fund in case start-up costs are higher than you initially expected (they usually are).

4. Are there any industry-specific issues you should be aware of?

Make sure you apply for any licenses or organisation memberships if they are legally or otherwise required in your line of business. Also ensure you have adequate insurance cover in place – this is mandatory if you have any employees.

5. Have you got the right skills to run your business?

Try to be objective and honestly assess your own skill set (ask colleagues, family members and friends for their input). You must be honest about your weaknesses as well as strengths and be prepared to seek outside help if it is needed (either permanent staff or freelance help).

6. Are you personally suited to running a business on your own?

Although there is no blueprint for a successful business owner, you do need ‘balls’ to go it alone, tenacity, and be prepared to give your all to your new venture. Only when you are prepared to give 100% to a business is it likely to succeed.

7. What business structure are you going to use?

The majority of small businesses are run as sole traderships, partnerships or limited companies. You should consider carefully which structure suits you and your business going forward, and seek advice from an accountant if you have any doubts.

8. Are you being realistic?

It is hard to be completely objective when setting up a business for the first time. Not only is it crucial to spend most of your pre-startup time researching the market for your product(s) or service(s), but you should also solicit opinions from people you trust – who know you well and are happy to point out potentially pitfalls in your new business plans.

9. Hire a good accountant

Your accountant is likely to be your most important adviser during your time as a business owner. Ask for recommendations from other business owners, as a good accountant will save you money and provide advice during hard times.

10. Do you have an exit strategy?

If things go well, you will have the luxury of one day thinking about expanding the business, selling it on, or bringing on business partners. If you own the business with other people, make sure you have a partnership or shareholders agreement to fall back on just in case disputes arise or if one or more partners wish to sell their share of the business.

Definition of Micro & Small Enterprises

Micro, Small & Medium Enterprises Development (MSMED) Act, 2006

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 on June 16, 2006 which was notified on October 2, 2006. With the enactment of MSMED Act 2006, the paradigm shift that has taken place is the inclusion of the services sector in the definition of Micro, Small & Medium enterprises, apart from extending the scope to medium enterprises. The MSMED Act, 2006 has modified the definition of micro, small and medium enterprises engaged in manufacturing or production and providing or rendering of services. The Reserve Bank has notified the changes to all scheduled commercial banks. Further, the definition, as per the Act, has been adopted for purposes of bank credit vide RBI circular ref. RPCD.PLNFS. BC.No.63/ 06.02.31/ 2006-07 dated April 4, 2007.

1 Definition of Micro, Small and Medium Enterprises

(a) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:

(i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;

(ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and

(iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O. 1722(E) dated October 5, 2006 (Annex I).

(b) Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006) are specified below.

(i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;

(ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; and

(iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

These will include small road & water transport operators, small business, retail trade, professional & self-employed persons and other service enterprises

Lending by banks to medium enterprises will not be included for the purpose of reckoning of advances under the priority sector.

(iv) Since the MSMED Act, 2006 does not provide for clubbing of investments of different enterprises set up by same person / company for the purpose of classification as Micro, Small and Medium enterprises, the Gazette Notification No. S.O.2 (E) dated January 1, 1993 on clubbing of investments of two or more enterprises under the same ownership for the purpose of classification of industrial undertakings as SSI has been rescinded vide GOI Notification No. S.O. 563 (E) dated February 27, 2009.

1.1 Khadi and Village Industries Sector (KVI)

All advances granted to units in the KVI sector, irrespective of their size of operations, location and amount of original investment in plant and machinery will be covered under priority sector advances and will be eligible for consideration under the sub-target (60 per cent) of the micro enterprises segment within the MSE Sector.

1.2 Indirect Finance

1.2.1 Persons involved in assisting the decentralised sector in the supply of inputs and marketing of outputs of artisans, village and cottage industries.

1.2.2 Advances to cooperatives of producers in the decentralised sector viz. artisans, village and cottage industries.

1.2.3 Loans granted by banks to Micro Finance Institutions on, or after, April 1, 2011 for on-lending to micro and small enterprises (manufacturing as well as services) subject to the compliance of guidelines specified in Master Circular RPCD. CO. Plan. BC.12/04.09.01/ 2012-13 dated July 2, 2012 on 'Lending to Priority Sector'.