A business plan provides a structure to deepen and strengthen a business idea or to develop in more detail the broad actions that have arisen during a strategic planning exercise. It helps to reveal gaps in available information. It forms the basis on which a business concept can be realised, a low-cost dry run for the real thing plus a communication tool for stakeholders.
Any business concept needs to address three key questions: - what problem does the concept solve? - what is the target market? - how will the concept make money?
A new enterprise matures based on the quantity and quality of three ingredients: - the business idea; - management team; - capital.
In later stages of the company, a business plan becomes a tool to help management to think about the strategic rather than the operational day-to-day side of the business. It allows management to measure progress and to evaluate assumptions underlying the business plan.
References: -Business Plan Archive, US -Ernst & Young guide to producing a business plan, UK -McKinsey's Venture Business plan tools, Swiss -Microsoft Word template, US -Price WaterhouseCoopers templates, US
For 103 glorious years, National Insurance Company has been meeting the non-life insurance requirements of customers with innovative, customized policies that cater to specific needs. Today, they are India’s second largest general insurance company, offering over 200 policies to more than 13 million policyholders.
They have always believed that every policy should be as unique as the person who needs it. As customer needs have evolved over time, they too have embraced change to ensure continued personalized service. Stemming from a core value of simplicity, they are introducing Customer Service, Product Development and Strategic Alliances initiatives to further improve their services.
The new identity, a simplified version of the existing peacock form, evokes the new company philosophy – THODA SIMPLE SOCHO. The visual identity is based on the main graphic element of the existing logo - a triangular form in deep blue. The new peacock form suggests boldness and pride, elevating the image of National Insurance for internal people and external customers. The TRIANGULAR PEACOCK form is unique to make National Insurance stand out amongst other companies in insurance category. A second shade of blue is introduced to make the identity cheerful and young. The new corporate identity system is flexible so that it lends itself in different application in a seamless manner.
National Insurance have embraced change and simplified their processes to meet customers’ requirements at all times. Simplicity is now part of their progressive stance which starts with their new look. It is a small part of the many changes that they have put into action, to provide customers with prompt and hasslefree services ... the simple way.
It would seem that with constant bank mergers, the choice of banks would be limited to a few with very long names. However, there are still quite a number to choose from. While there are many investment options available today, there is still a need for accessible funds in local banks. Therefore, it is worthwhile to review some of the options to look for when selecting your bank.
Perhaps the fastest rising concern among customers are the ever-increasing bank fees. Another growing concern is identity theft, which still limits the number of people who do their banking online. The convenience of ATM machines is also a major concern when selecting a bank.
Below are some of the comparisons to make when bank shopping.
Fees: Banks are starting to charge for more services, such as copies of bank statements, opening and maintaining a checking account, cheque copies, cashier’s checks, overdraft protection, wire transfers, money orders, cancelled cheques, dormant accounts, bounced cheques, customer inquiries and so on. One must compare the most common fees and be aware of any transaction fees.
Interest rates: The reality is that interest rates for most bank accounts are fairly minimal. If one does not need a specific bank service, he might consider getting the same or even higher rates from a credit union.
Minimum balances: Compare minimum balances to open and maintain accounts without paying fees. Corporates are usually given a zero balance salary account which is always beneficial to them. Also inquire about linking accounts or "relationship banking," as it is sometimes called, where one can benefit from having several accounts at one bank, thus eliminating the need to have a specific balance in each individual account.
Direct deposit: All banks offer direct deposit, but some will also offer incentives for signing up for it.
Locations: The convenience of a bank is important unless one is primarily banking online, in which case he can look for a lower rate from a bank that may be located across town.
Bank services: One must see what other special services are offered and at what cost. From broker services to banking software to special accounts for children, one can sometimes find services that may be of benefit to an individual.
Online banking: While most banks offer it, the use of online banking is still limited. Concerns about identity theft, along with the familiarity of in-person banking, have made this new technology slower to catch on than anticipated. If one is interested in online banking, he must inquire about additional fees, security measures taken and customer service. Benefits of online banking include: no lines, after-hours banking and access to an updated statement daily.
Banks today remain very competitive. This means that one as a customer, can benefit by shopping around and asking questions.
As a personal bank customer today, one needs to be cautious and pay close attention to activity in one’s account. Bank errors and the potential of identity theft have made it imperative that one become proactive and follow simple safeguards. In addition, changes in bank policies can create confusion.
Here are a few of the most common personal banking mistakes to avoid.
1.Not reviewing your bank statement promptly.
2.Paying unnecessary fees and bank charges
3.Leaving a literal paper trail
4.Banking online in public places
5.Using an easy password
6.Failing to take ATM precautions
7.Signing and endorsing cheques prior to entering the bank.
8.Leaving bank account numbers for others to see
9.Assuming you must borrow from your bank (Loan)
10.Not establishing a relationship (establish a good rapport with the people holdingyour money-banker)
Taxes are said to be as inevitable in life as death and it is our social responsibility to pay them. Taxes are burdensome for all taxpayers. Saving money in taxes is high priority in Financial planning exercise. There are legally permissible ways to reduce taxes and retain more of your hard-earned money in your savings kitty. There are various tax deductions available under the present Income tax act and you should take advantage of them.
Here are some tips to lower your tax bill:
Deductions under Section 80C
Section 80C tends to be most popular since you can get an exemption of up to Rs 1 lakh on contributions to a wide range of investments.
Broadly these deductions can be classified into two options:
Investment Oriented &
Non Investment Oriented
Investment Oriented options would comprise of the following.
- Premium paid on life insurance policies
- Payment for deferred annuities
- Contributions to provident funds
- Contributions to super-annuation funds
- Contributions to Unit Linked Insurance Plans
- Subscription to notified security
- Subscription to NSC
- Payments towards annuity plans of LIC or other insurers
- Subscription to notified mutual funds or UTI
- Subscription to Home Loan Account Scheme of National Housing Bank
- Investment in companies engaged in providing infrastructure facilities
- Term deposits (5 Years)
- Senior Citizens' Saving Scheme.
Non -Investment Oriented options would comprise of the following.
Payments for acquisition of a residential house
Tuition fees paid for education of children
Section 80C provides for an outright deduction on certain contributions/payments subject to following conditions:
- The contributions/payments must have been made during the relevant previous year
- The aggregate amount qualifying for deduction should not exceed Rs.1 Lakh.
Section 80 D - Medical insurance
If you take a medical insurance plan for yourself, your spouse, dependent parents and dependent children, you can under Section 80D claim deduction up to Rs 15,000 for the premium paid. A bonanza is available in the form of an additional deduction of Rs.15,000 towards medical insurance premium paid for your patents. For senior citizen taxpayers, the limit now has been enhanced to Rs.20,000. One condition being that the premium should be paid through a cheque.
In case you have paid any amount for the medical treatment of any disabled person dependent on you then again you are entitled to a deduction in the range of Rs. 40,000 to Rs. 75,000.
However, to claim any deduction under this section, certification by a medical authority is mandatory.
Interest component of home loan - Sec 24 (b)
Your home is not only your living shelter but also your tax shelter. You can claim a deduction for the interest paid on a housing loan, even on loans taken for repair, renewal or reconstruction of an existing property. The interest component of home loan is allowed as a deduction under the head 'income from house property' under Section 24(b) up to a limit of Rs 1.5 lakh a year in case of self-occupied house.
One condition being that your house must have been financed by a housing loan taken after April 1, 1999. It is also essential that the acquisition or the construction of the property is completed within three years from the end of the financial year in which the loan is taken.
Cash gifts
Cash gifts received from specified relatives are exempt from income tax, and there is no upper limit also. Similarly, cash gifts of any amount and from anyone received during your childbirth, marriage or any other specified event are totally tax-free.
However, if you receive a cash gift of more than Rs 50,000 from a friend, you are required to pay tax on the excess amount exceeding Rs 50,000.
Charity - Sec 80 G
You get a tax relief if you donate to institutions approved under Section 80G of the Income Tax Act. The rate of deduction is either 50 or 100 per cent, depending on the choice of fund.
There is no restriction on the amount of charity. However, donations must be made only to specified trusts. Also, only donations of up to 10 per cent of your total income qualify for such a deduction.
Education – Sec 80 E
In case you have availed of a loan for higher education of your child or your spouse, then you can claim a deduction of the interest paid on such loan.
Tax Liability for A.Y 2009 - 2010
Taxable income slab (Rs.)
Rate (%)
Up to 1,50,000
Up to 1,80,000 (for women)
Up to 2,25,000 (for resident individual of 65 years or above)
Nil
1,50,001 - 3,00,000
10%
3,00,001 - 5,00,000
20%
5,00,001 upwards
30%
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs. 10,00,000.
Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
According to aMap (online ratings agency) data, 48 million viewers watched the seven matches on SET Max compared with 46 million viewers for the eight matches in IPL last year.
This is significant for the media agencies who buy on-air advertising spots based on the reach of a programme and how many viewers watch it.
According to the data, advertisers have consumed around 245 minutes (about four hours) of on-air advertising time during the seven IPL matches played so far, totaling to about 21 hours of playing time.
“About 20 minutes of advertising per 60 minutes of content is good. This shows that advertisers’ faith in IPL’s viewership is holding, at least for now,” said a senior executive working in a leading media agency in Gurgaon.
According to the data, the fifth IPL match between Bangalore and Chennai generated the highest rating of 4.7 per cent in cable homes among the seven IPL matches played so far and among the age group of 15 years and above, across six metros.
“Cricket is a high-stakes game and generally advertisers tend to take a long-term view while buying on-air ad spots. It’s still early days and we hope that the ratings will pick up as the tournament progresses. Rain interruptions, too, have contributed to a dip in the ratings,” said Ravi Kiran, CEO-South Asia for Starcom MediaVest Group, a leading media agency.
SET Max executives are hopeful too. “We are happy with the viewers’ response so far,” said a top executive of SET Max requesting anonymity.
The IPL Twenty20 format cricket tournament is currently underway in South Africa, after it was shifted out India due to security reasons in March. That time we were doubtful weather IPL will be a hit this time. As of now yes. Lets wait watch and see what happens in the coming days to come.
There are 59 scheduled IPL matches this year and a lot of money is expected to generate from this IPL.
I have done myMBA, specializing in Finance from Alliance Business school, Bangalore. I have graduatedin Business Management from Christ University, Bangalore. I hail from a Business Family and have done business of Photo Albums for some years.
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