Is CSR A Calculated Option For A Business?

Corporate social responsibility or CSR is one of the standard practices used in business and the companies that are involved in the CSR activities are seen to have a very good reputation. This lets them signify that they contribute largely to the society and also enhances on what the company stands for and what its true values are.

How the company establishes the CSR strategy is a very important part of the competitiveness of the company and this initiative has to be taken by the company only. The procedures and the policies that have to be in place should be in line with the concerns of the consumers as well as with the environment. All this should be done taking the stakeholders of the company into consideration.

Better reputation

The company through a CSR aims to achieve a positive reputation on the society without compromising on the value of the business owners.

If research and historical data are seen then it would be surprising to know that companies that were committed to CSR also declared better returns as compared to their competitors who were not involved in CSR to that extent. Also, the companies that areCSR oriented spend a lot on employee engagement and they could also provide better standard and quality of customer service.

There are a lot of things to be optimistic in CSR but still, most companies do not wish to do this and many companies would even go ahead and say that adopting the CSR is mainly a marketing tool for them. Companies that have not involved a lot of the CSR initiatives were sometimes left thinking if they could have done better.

It is a great initiative which indirectly helps in sales

Social responsibility is crucial because it lets the business demonstrate to the customer and to the media that the company is involved in social causes and that this is done without any aim to generate profits. The issues could be anything ranging from global cause or a national event but this at no cost should involve sales or any other form of marketing of profit generation.

Surprisingly for companies, the CSR initiatives have been taken in a very positive way by consumers. The customer has greater trust in companies that are involved in CSR activities because they find such companies to be ethical. This, in turn, leads to more sales and better profits for the business. The company not only ends up increasing its revenue by doing a CSR but also gains customers trust.


Managing Finances in a Start-up!

Start-ups are these days on the rise! The reason being, favorable conditions and lot of exposure. Even the basic cooking and baking have now been transformed into an art that can be created as a business, like having your own small café, a small restaurant or even just a simple dessert café!

Though we say, they are simple businesses, any business needs money to start with and yes to grow! But, due to the same reason, we don’t find talented bakers around us anymore! The main reason is the poor management skills that they come with, in business. In the work front they might be experts, but managing them is equally important, else it will surely lead to the crash.

So how can a start-up emerge into a growing chain with huge volume and success on the way? How can we concentrate on management without any additional labor and also manage the essential part of the job, maintaining the work routine and order?

Well, the question needs multiple answers and here we go, explaining few tips that you can do by yourself and save your business from getting out of the line!

Managing the Cash Flow:

It’s very important that you pen down every penny spent! Yes, every single penny should be written be it on the expense list or income list. That’s how you can keep a track of what is really essential to the business, how much is the overhead incurred (if any), what is the approximate income and what is the peak business time and much more!!

So, a simple writing down of your cash flow part can create a huge stepping stone for your business.

Stay low on expenses initially:

With a start-up comes its own drawbacks, the cash crunch. But. You need to learn to adjust and sail through the phase, by avoiding any unnecessary expenses initially. When you start, getting the paychecks on time and also getting business continuously is always a question mark. So, keeping your expense low can help you in patching up the unknown spots.

Stay away from overdoing stuff, like decorating your office, creating a star ambiance. Ultimately what matters is your talent and your company talent at eth end. These days you have workplaces available for lease or rent if the need arises utilize it and stay free from buying and selling stuff.

Time is Money:

Understand this extremely well, Time IS Money!! So, choose your time wisely, as where and when to invest.

 

 

 


Can you put market volatility to good use?

 

As a business owner, you might already have a lot to worry about. Fluctuations in the stock market are one other concern that affects several businesses. Small businesses are the ones that take a hit if the finances and budgeting are not done taking the market risks into consideration. As a business owner, you should first understand the industry to which the business belongs and how it performs when the stock market sways. If you know that a market crash is imminent then there are two ways to react- one is to cut down the costs and avoid taking major decisions and thus reducing the risks and the other is to put the market volatility to good use.

Market research is what you need

The money spent on market research is one of the most profitable investments for a small business. When you have a well-planned market research you would be able to understand your customers better. You would also be able to predict their demand patterns. Thus you would be able to strengthen your marketing strategies. This helps you attain a state of stability that would not take a blow when a recession occurs. And when you understand the market better you would also be able to look for opportunities even in a falling market.

Grab the right investment opportunities

If you are planning for acquisitions or mergers, the falling market might be a great opportunity. There are businesses that crumble when the market crashes and there are businesses that have acquired these and made huge profits. This also helps your business gain a stronger position in the market. There are also chances where your business can expand and increase its customer base.

Tap the markets where the demand increases

There are some markets that see a rise in the demand. Some products and services might still be used even if the price increases in a recession. By knowing where the demand increases you can devise strategies for increasing the demand and thus make better profits.

Increase the pool of talents in your firm

One other major consequence of recession is the increase in unemployment. Even the most talented employees might lose their jobs. So if you plan wisely you would be able to obtain the best talents even with a remuneration package that might appear relatively unreasonable in a normal market condition.

These are just a few ways in which you can make use of the market volatility. All it takes is a better understanding of the market and the customers.


Explore The New Payment Platforms

 

Payments and receipts are a common thing in a business and it is important that it has a constant check on these two to track its performance and profitability. Now, these payments for a business happen on a regular basis and they are bound to pay all their service providers on time for enabling the smooth running and functioning of the business. And it is this unhindered operation that would help them reach their customers on time with all their needs and expectations fulfilled. Now since this happens on a constant basis, how does a business concern manage to handle them? This is where technology has helped them in a great way. There are a lot of apps and software brought in by this technology and this has been helping the business concerns in managing and handling all their payments. Here is a brief on how this happens.

Easy payment modes

It was the financial technology companies that came into existence and were brought into existence and operation for managing the various payments and incomes of a company. It was initially the banks that were doing it for them which were soon replaced by these Fintech companies and they took over the operations of the banks involved in business transactions. This was a new system in the market brought in by technology and banks wanted to test the efficiency of their operations and also wanted to note the level or the extent of errors and frauds in this.

Anything that is made useful to the customers and that too something related to money transaction is definite to have a fraudulent duplicate copy and this is no exception here. There were frauds but were minimized and people started using these platforms for making their payments and also by the companies for receiving and making their payments on time.

Fintech companies for banks

Now it is not just the banks or the Fintech companies that are helping the various organizations in their payment and income plans and schedules but in some places, they also work together to improve the services for the company. This way the banks are also motivated and initiated to use the various technologically developed new financial platforms for managing their payments. This brings in more new opportunities and there is a mutual benefit for both the Fintech companies and the banks. So these Fintech companies are proven safe method or mode of managing finances of a company and this is a technology that is driven by changes and updates as per changes in the market.


Invest For A Better And Safe Future

The latest tax-bill brings in many important implications for everyone, individuals or companies. It is not really very simple to understand for the common people, but it affects them, their tax planning and saving patterns and their lifestyle.

Visit cybermentors.org.uk for more reviews

Tax structure and economy

It may affect the economic growth in the short term as the plans are geared to bring in more money into the market. This results in a boost to the economy. But the long-term advantages may change with the time and events that take place in the future. Most economic experts are expecting a moderate boost and they are skeptical about the long-term benefits.

This entire scenario asks for a complete overhaul of your financial planning through the present tax system is not changing for individuals drastically. Reduced taxes may be an advantage in the short term and disposable income in the market will help to boost the economy. However, the far-reaching implications of tax structure and dynamics of financial solutions are still ambiguous. The present provisions and codes will expire in some years and a lot of adjustment will have to be made towards inflation.

Buy or rent a home

The tax changes may also discourage the current homeowners from selling their houses and many people are confused as to what is better, buying a house or renting one. Many cities have higher tax structures and the houses are so expensive that people do not really want to sink in so much of a property yet, expecting the real estate market to stabilize in some time.

Health Insurance

There could be an added burden on people for taking a health insurance. It is quite expensive and if the regulations are changed and people avoid taking an insurance policy then the others and the state will have to pay for that as well. It might be one of the biggest changes that we might see in the insurance sector. The new scheme of the things may have better prices or tax benefits to encourage more people to come under the umbrella or on the other hand, it may end up charging people more for their insurance or may have restrictive plans.

Frugality and living within your means is the new mantra. With so many changes happening on the tax front and financial sector going through major upheavals, it is important to tread cautiously. Due diligence is important before investing. Invest in such schemes that provide a decent interest and benefit of tax breaks. The present economy is going to change the scenario with changes in the tax structure and these keep recurring with every regime. You need to have a balanced approach towards saving and spending that does not get affected easily. Always anticipate the unexpected and be prepared.


Inflation as an investment opportunity

Have you ever taken up economic inflation as an investment opportunity? One has always defined inflation as the sustained increase in the price of goods and services. A gram of gold that once cost Rs.800 may now cost Rs.3000; the inflationary environment can be due to the variety of factors but the end result is a rise in the price of commodities.

While as a trader or an investor it may not be a bad situation, by holding the investments that increase in value and hedging against the inflation. These include real estate, gold, oil, stocks and inflation-indexed bonds.

Inflation can be considered as the right time to invest the locked up liquidity in mutual funds and investing in bonds which gives easy hand to the banks and institutions. The locked up money can be liquidated through exchange-trade by investing in gold bonds, agricultural commodities which are increasing in value during high inflation.

Such money is recycled into the market through surplus funds from the bank, decreasing the borrowing cost. For small-scale business, there will be room for improvement and cost savings. It’s an opportunity to revisit the cost structures of the organization and renegotiating some of the contracts for better pricing. All controllable cost should essentially be controlled eg: travel cost, improvement of consumables such as energy and water especially for manufacturing companies etc. It will also have greater flexibility in adjusting their production levels and accommodate and satisfy temporary fluctuations in demand without causing a sharp increase in prices. The small business unit generates competition among other sectors by keeping inflationary pressure down.

Equity injection in one’s own business can be an option which should not be ignored and should also be considered in conjunction with the borrowing cost to make good of the opportunity in hand especially when the inflation graph is pointing south.

During inflationary environment smart business houses revisit their estimated assumptions while investing their money in equity or debt, reinvesting in their businesses. The revised assumption or changes reflect the worthiness of the investment. You also need to play your cards safe as to how to reinvest the surplus and how to make smart strategies techniques through advisors consultancy during periods of inflation. Investing in sectors from which business can increase earnings relative to economic inflation. Safeguarding the existing investments and to recycle the passive investment is the key to smart business during economic inflation movement.