1. Have a written plan. Without a plan, it is merely a dream. It doesn’t have to be a book, but you need a few pages outlining specific objectives, strategies, financing, a sales and marketing plan, and a determination of the cash you need to get things done. Writing it all down is a crucial first step.
2. Don’t marry your plan. Every great military general in history has known that even the best-laid plan sometimes has to be thrown in the fire when the bullets start flying. Adjust, confront and conquer.
3. Keep your ego in check and listen to others. Advisors are crucial because you need people to bounce ideas off, inspect what you’re doing, and push you to greater accomplishments, holding you accountable for what you are committing to do. Always be good to your word and follow through on commitments, even when difficult and challenging. This isn’t about you; it’s about the business. Don’t take things personally and stay out of emotion. Do not let your ego take control.
4. Keep track of everything, and manage by the numbers. Create written systems for everything, because you will reap benefits from them later on. This is how you train your employees and retain consistency. Know your numbers and check them daily and make all decisions based on what they tell you. One of the most important calculations is cash flow pro forma. Determine how much cash you need to do the business, and do not start without the required cash on hand.
5. Delegate to employees and avoid micromanaging them. A manager’s job is to delegate and then inspect progress. So don’t be a control freak. Keep business organization flat. If you delegate effectively, you will get more and better then you expect. Have an actual written training and orientation plan so your employees know what is required of them. Use an incentive-based rewards system, and maintain a no-problem attitude about issues that crop up.
6. Use the Internet. It is incredibly powerful and very cost efficient, but it takes time and some skill. It is about creating a community, using social media networking such as Facebook, YouTube, Twitter and blogging to build rapport with your market. You need to get on the train and do it, because your competitors are.
7. Reinvent your business. It is net profit, not gross revenue, that you want to focus on. Separate yourself from your history and create a new competitive advantage, be it a focused niche or super service, but not by discounting.
Tell us about your business
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Hello all business owners and entrepreneurs out there,
We are pleased to announce that we are creating company profiles and publishing them through our website, so that our readers and audience get to know about your company and your business in much simplistic way. We also believe that with right SEO and web management, those information will be reaching to many internet users, which shall benefit you in a longer run.
The provided information will be compiled to turn into an informative article as a company profile and publish them through this website, so that whenever someone wants to learn about your company by searching through Search Engine or by directly on our website, they get to learn basics about your company with an ease.
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It’s indeed is a great opportunity for you and your company. Hope you will grab it.
What is Seed Capital?
Just how a germinating seed needs water, sunlight and proper nutrients to grow into a beautiful plant, any budding entrepreneur also needs funds to implement his/her startup ideas. This initial investment which helps to cover up the basic operating expenses, research and development expenses etc to grow the business until the product itself starts generating revenue is called Seed capital or Seed funding. Generally, seed capital is considered as the first round of investment until one develop his/her business to a certain level after which he/she can find venture capitalists to invest in them. So, where does the seed capital come from? Some of the easy sources may include :
- Friends or Family
- Crowd Funding
- A seed-stage angel investor
- Corporate seed funds for startups
- Self – financing
- Government subsidized loans and grants
Finding an investor can be a challenging task as your startup is still in conceptual phase. Generally, the banks often ask for collateral against the applied loan. Even more, the interest rates may be high and not every person can afford to take the risk. On the other hand, investors may invest in you and your idea in exchange for certain equity in stake. This means you will be losing your share of full decision making authority over your business in exchange for his contributed amount of capital. However, reaching out for friends and family or using your own savings is always a good idea if you don’t want to get involved in debt. There are also government grants and subsidized loans in recent years that plan to support to aspiring entrepreneurs in the country. So, before you make your decision, make sure to do a good research and weigh all the pros and cons of each source to find one that actually compliments your business model, as it plays a determining role in the future of your business.
The author is a CA student. If you want to add more information on the given post, please comment below and your comment will be incorporated in the article.
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Smartphones are very expensive in Nepal – Here’s Why!
It is no news that the price of smartphones in Nepal is crazy. I mean, yes, we might be used to with expensive prices, but compare those prices to international ones, or even the neighbouring country for that matter, and you’ll know. When you allocate some budget to get a good phone, you check out reviews and stuff. And just when you think you can have the one, you have your heart set on, the price differs – by a lot! And it is, of course, common to accuse retailers here of extracting a large profit, but there are also quite a few reasons why smartphones are so expensive in Nepal.
1. Taxes, Taxes
The current fiscal year of Nepal brought quite a few changes in the Nepali tax policies. Prices of almost everything went up, including electronics and gadgets. Before this new tax policies, smartphone importers paid only 13% of tax. And on top of that, 40% of VAT was refunded to them at the end of the fiscal year. That made it a net total of 7.8% on taxes.
But with the new policy, the 40% VAT refund has been waived. And in addition to the 13% tax, another 5% of excise duty has been added, making it a net total of 18.65% on taxes alone! And that is enough to stir the prices of such phones and gadgets upwards. This, however, is only for smartphones. There are other policies for other electronics and automobiles.
2. Distribution Channels
The economy of the country is not strong enough to attract official retailers themselves. For example, we only have Samsung, Huawei and Xiaomi’s official presence in Nepal. But for other phones, they arrive through various distribution channels. There are agents, regional distributors, wholesalers, etc. before the products even make it to retailers. And with each part of the distribution channel nicking off some profit, it’s only natural that the prices go up.
How does it work? First, there’s the company, i.e. the brand itself. Then come the National Distributors (NDs), followed by Regional Distributors (RDs), Retailers and Mobile Stores. NDs import the smartphones for which, they pay a certain bank guarantee to the brand. This assurace financial safety to the company as well. The same thing happens with NDs and RDs. RDs are responsible for placement of phones to retailers, who, in turn, deal with mobile brands. Hence, this creates a long chain, where each party involved has a certain profit margin.
Also, NDs have their own team of sales promoters, who promote their products in mobile stores. Ever seen someone in the company mascot’s costume? Yeah…that’s them. They also have their own marketing team, sales officers and product team who help improve sales and marketing of a product. As for RDs, they possess local level knowledge of the market, and maintain good relation with retailers. Thus, from the company’s point of view, these parties are necessary link in the chain too. So, we can see why they are needed.
And if you ask why don’t the company’s bring the phones straight to retailers, here’s why:
3. Lack of proper e-commerce
The smartphone marketplace of Nepal, or any other small developing countries for that matter, differs a lot from international scenario. Many phone companies have a strong presence in e-commerce and sell their product online via sites like Amazon, BestBuy, GearBest, etc. And they even provide various discounts from time to time. Their online presence is so strong that they even have online exclusive brands!
For example, there are brands like Realme, which is an online exclusive brand internationally. Honor, is also an online exclusive brand but is slowly moving to offline as well. Samsung’s new phones, the M-series are also online exclusive. But, in Nepal, all of these three are sold offline. Because, the e-commerce platform is not very developed. There is lack of proper e-payment gateways, and most people hesitate to buy things online, for good reasons.
This leads to popularity of brick-and-mortar stores, which increases the expenditures of phone retailers. And that too, leads to an increase in pricing. If you compare the pricing of Honor phones in Nepal with international market, you’ll know!
4. Economies of Scale
If you are a little bit familiar with the Economics, then, you probably know the economies of scale – i.e. larger the quantity, lower the price. It applies almost anywhere – from printing stuff, to banquet halls and yes, smartphones. Since the economy of Nepal is not as strong, the number of phones sold in the country are a lot less than in others.
While smartphones ship by the millions in other countries, we play in thousands here, and only among hundreds for very expensive flagship ones. This affects the cost per unit of these products, hence, adding up more burden to their prices.
5. Everything is imported!
This is no surprise. Since almost all of what we use are imported, smartphones are the same. What I mean is, there are no in-house manufacturing plants to make smartphones, or even assembling houses to assemble components. Countries like China and India have their own manufacturing plants, so, they can price the phones accordingly.
When whole gadgets are imported instead of parts, the excise duties are considerably higher. Add the distribution channelling to it, and shipping costs, you get the Nepali prices for smartphones!
So, why are smartphones so expensive in Nepal? You have the answer.
A version of this article appears on GadgetByte Nepal. Do check the website for more tech-news and such.