Sitting on a brilliant business idea with no money to back it up? Funding is a tricky issue for most startups. Finding an investor is always difficult, and the lack of money gives most entrepreneurs jitters in the initial days. That is when they look at startup loans or guaranteed payday loans – two interesting funding sources you too must have heard of. While business loans are helpful in most situations, they have some disadvantages too. Let’s have a look at both the pros and cons of startup business loans so that you can decide if they’re the way for your startup.
Everybody wants to upscale and keep all their business’ shares with themselves. This pleasant situation is made possible by business loans. The owners keep their company’s hold and also enjoy the luxury of upscaling their startup.
With investors comes the hassle of managing the board with their preferences. Having distributed stocks reduces your profits with time. Lenders usually have no interest in your management. They care only about money and give out loans without asking for extra perks.
Temporary in nature
Business loans are for a limited time. After the whole loan is repaid, the lending institution won’t bother you. On the other hand, attracting investors comes with an obligation to pay dividends to the shareholders regularly, which may last as long as the company.
With time, the dividend sum increase with the increase in the company’s worth. Startup business loans, on the contrary, reduce steeply as you keep repaying. This temporary nature of loans makes them worth a try for those looking to stay financially freer.
Build business credit
As the company grows, production increases rapidly, and so does the need for money. Even if you did not start your company with a loan, you might need to expand or design a new product or service.
A credit score is important for lenders to consider your loan application. Taking a startup loan and repaying it on time can get your company a good credit score, opening the gates for future loans. Without a credit record to build on, some lenders might not give you a loan later if you need one to expand.
Personal Wealth Can Be Safeguarded
A starting business loan might assist you to separate your personal money from the finances of your company. Every new business initiative carries a risk; even the most well-planned venture may confront challenges beyond your control as the owner.
Disadvantages
Not easy to get
Getting startup business loans approved is a tough cookie. Unless you already have an established business or some collateral to pledge, there’s very little chance that a lender will trust you.
With the recent financial crunch they have found themselves in, banks and NBFCs have a strict policy concerning lending. Only businesses which they believe can repay the loan can get the loans. With such high scrutiny, it becomes infinitely difficult for a new and fresh startup to get loans. The difficulties in availing of loans are decreasing with time, but the hassle is significant even today.
A high rate of interest
Lenders’ most significant way to earn money is through interests. These interests can break the backbone of any small business. As a small business owner, it gets challenging to manage the competition and interest rates all at once.
As time passes by, every business faces a low-revenue phase. High-interest rates during those low phases can hurt you even more and potentially result in bankruptcy. Interest accrues as you delay payments, and you might soon find yourself into a black hole of financial trouble. To avoid this, however, you can plan repayments efficiently and opt for lower-interest loans.
Less Money to Invest in Business
Startup loans naturally come with a repayment obligation. As you repay heftily to the bank every month, you will be left with little cash to reinvest in your business’ growth. You might even have to compromise on buying equipment or hiring new employees. These restrictions can hamper the speed at which you had envisioned your business growing. However, better cash flow management can save you from this trouble as well.
Your personal money will not be safeguarded by a small business loan. Because lending to small businesses has a higher risk, many financial institutions want a personal guarantee, which means the bank can pursue you for repayment if the business fails. As a result, your credit score and assets may be affected.
If you’re concerned about the impact on your personal credit, we recommend waiting a few months until your company is more established. That way, you’ll be able to pay back your loan on schedule while maintaining your good credit.
Katerra, a modular construction company, filed for Chapter 11 bankruptcy protection in early June 2021. In 2018, the SoftBank-backed unicorn was valued at $3 billion and had raised over $1.5 billion in total capital from Khosla Ventures and Greenoaks Capital Management, among others.
Although mismanagement was regarded as the cause of the company’s demise, the failure of lender Greensill Capital just three months prior also played a factor.
While SoftBank was funding Katerra directly, Greensill, a SoftBank Vision Fund recipient ($1.5B), was also funding Katerra, demonstrating SoftBank’s portfolio’s interconnectedness. This downward spiral has caused some to question SoftBank’s Vision Fund’s viability, especially in light of the 2019 collapse of co-working unicorn WeWork, in which SoftBank was the principal investor.
At the beginning of April 2021, Madefire, a digital comics firm, went for an assignment of benefit for creditors (ABC), an alternative to official bankruptcy. For many Madefire users, this was a surprise announcement, as they had been given until the end of the month to download their purchases.
Several digital comics applications, including Archie Unlimited and IDW, were also taken down as a result of the Madefire app. Despite having a diverse roster of musicians and investors, including Dave Gibbons and Drake, the organisation died in the face of competition.
As you think and analyze the advantages and disadvantages of bank loans, understand that opting for a small amount to start your startup is not a bad option if you are a good planner. You may look at guaranteed payday loans in the beginning and think about other options later.
Qualifying for a small business starting loan, on the other hand, could mean having money to start a firm without having to repay loved ones or investors who demand ownership in exchange for their money. Before deciding to pursue this lending option, small business owners should analyse all factors. Let us know what you think about taking a business loan for your budding startup in the comments below.
As the company grows, production increases rapidly, and so does the need for money. Even if you did not start your company with a loan, you might need to expand or design a new product or service. A credit score is important for lenders to consider your loan application. Taking a startup loan and repaying it on time can get your company a good credit score, opening the gates for future loans. Without a credit record to build on, some lenders might not give you a loan later if you need one to expand.
Is Business loans are easy to get?
Getting startup business loans approved is a tough cookie. Unless you already have an established business or some collateral to pledge, there’s very little chance that a lender will trust you. With the recent financial crunch they have found themselves in, banks and NBFCs have a strict policy concerning lending. Only businesses which they believe can repay the loan can get the loans. With such high scrutiny, it becomes infinitely difficult for a new and fresh startup to get loans. The difficulties in availing of loans are decreasing with time, but the hassle is significant even today.
It’s Possible That Your Credit Will Be Ruined?
Your personal money will not be safeguarded by a small business loan. Because lending to small businesses has a higher risk, many financial institutions want a personal guarantee, which means the bank can pursue you for repayment if the business fails. As a result, your credit score and assets may be affected. If you’re concerned about the impact on your personal credit, we recommend waiting a few months until your company is more established. That way, you’ll be able to pay back your loan on schedule while maintaining your good credit.
With increased competition in education technology, it’s becoming more difficult for startups to overcome the challenges of entrepreneurship. Of course, this is a common challenge that affects many industries, not just the educational sector. While the startup community continues to embrace innovative technology and business models, many tech entrepreneurs still struggle to turn their ideas into reality.
The challenge boils down to one simple question. Why are Edtech startups failing? Are entrepreneurs simply not smart enough to survive? Or are there systemic causes for these failures? For example, is there something about a startup’s early days that prevents it from scaling beyond its initial vision? Let’s see what this guide states.
The Reality of Education Technology Startups
Edtech startups are fraught with challenges that slightly differ from the traditional business. Don’t get it wrong; it is a robust industry, which according to HolonIQ is expected to hit $404 billion in 2025 — a 12.2% increase from last year’s $227 billion. That doesn’t imply that it’s all bed of roses for all business persons in this ecosystem.
Several variables influence the global viability of successful ed-tech firms. One of the biggest challenges of educational technology is the complexity of the sector itself. To explain this better, let’s take a classic example from China’s education boom last year (2020), which surged to over $10 billion. It was a fiesta for ed-business individuals.
Fast-forward to this year; the situation appears gloomy as the values of deals sit below $2 billion. A major driver of this plummeting is the Chinese government’s crackdown on ed-tech startups, with Tencent, Alibaba, and other active corporations taking a hit. Many experts have expressed their opinions on its implications, including Bloomberg analysts. However, these situations are influenced “by powers that be.” Other times, Edtech startup founders get it completely wrong.
Breaking it Down to Numbers
Here is a breakdown of factors that wipe out startups from the market:
Achievability for non-technical users (5%)
Non-sustainable monetization model (5%)
Slow-moving in accepting innovation (11%)
Oversaturated market (16%)
Limited budgets (26%)
Long sales cycles (32%)
Others, such as finding tutors (5%)
These statistics may give a rough idea of where Edtech startup challenges stand. However, things are not as dismal as they seem, and there is hope on the horizon. Over my eight-year experience in Edtech, I’ve learned to adapt and overcome a tough environment and market. There are also successful Edtech businesses that have weathered the highlighted factors.
I have been privy to exclusive reviews from such firms. Here is a review of WriteMyEssayOnline, an essay writing service provider:
“I’m so happy I learned about Write My Essay. Running 2 businesses and doubling up on classes, has proven to be an unrealistic task. Since using them, I have been less stressed. The work has been of superior quality.”
Perhaps, the review can be replicated for other Edtech startups. It’s up to the founders to make the right decisions at the right time and then let the business take its course. A startup is a hard game to win, but it is not impossible.
Reasons Edtech Businesses Fail
Startups in the educational technology industry fail during their early stages for various reasons, including the following:
The Inability to Solve a Problem
Although there may be a need in the educational market, if the startup doesn’t have a solution for it, it would be like running a marathon without shoes. The founders must be committed to finding a solution that will add value to the lives of teachers, students and parents. However, a business is not an end in itself. So, entrepreneurs need to ensure that their products are highly valued to ensure customers and users are constantly in need of them.
Lack of Clarity of Vision and Goals
Businesses thrive on vision and clear goals. Without a vision, a startup founder would never know where to start. The entrepreneur may not realize what the end goal is and would thus expend extra efforts on irrelevant educational projects. Additionally, the business model should be crystal clear for all the Edutech team members. If there is no plan to make money out of the venture, while providing quality educational services, the business would probably be doomed from the onset.
Failure to Understand the Market
Educational products and services must satisfy the target market’s needs and ensure that no aspect is left unaddressed. While the Edutech product is in development, the entrepreneur must consider its impact on the target audience and the environment at large, in other words, how the market will react to it. There should be room to test the waters and make necessary adjustments when required.
Not Knowing their Strength and Weakness
Startups in the educational technology sector are particularly vulnerable, especially when they are in the early stages of development. As such, business owners must assess their strengths and weaknesses before embarking on this business. For example, if they want to sell online, they must have a good understanding of how to do it.
They must also understand how to appropriately adapt the technology to educate students. Technical implementation, team members, and market conditions can all be sources of vulnerability. Edutech entrepreneurs must address such weaknesses immediately before taking the project to its final stages.
Conclusion
Having identified the challenges encountered in the Edutech industry, there is a need for a comprehensive strategic planning system that could help an entrepreneur create a roadmap for the development of their business. Such a system would be invaluable in making their Edutech firms sustainable, valuable, and highly efficient towards meeting market demands. It would also help to avoid failures that are sure to come with any typical Edutech business venture.
Xiaomi Corporation is a Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing. Xiaomi makes and puts resources into cell phones, versatile applications, trimmers, headphones, television, and numerous other products. Ranked 468th, Xiaomi was the most youthful organization on Fortune Global 500 List of 2019.
Xiaomi launched its first cell phone in August 2011 and quickly picked up a piece of the overall industry in China. It became China’s biggest cell phone organization in 2014. At the beginning of the second quarter of 2018, Xiaomi was the world’s fourth-biggest cell phone manufacturer. Xiaomi later built up a more extensive scope of hardware catalog, including a brilliant home (IoT) gadget ecosystem.
Xiaomi has 15,000 employees in China, India, Malaysia, and Singapore; it is now expanding to different nations like Indonesia, the Philippines, and South Africa. According to Forbes magazine, Lei Jun, the CEO of Xiaomi, has more than $12.5 billion in assets.
Lei Jun is China’s eleventh most extravagant individual and 118th in the world. Xiaomi is the world’s fourth most important innovative startup in the wake of getting $1.1 billion subsidizing from financial specialists, pegging Xiaomi’s valuation at more than $46 billion.
Xiaomi was founded in April 2010 by Lei Jun. MIUI, the ROM made by Xiaomi, turned into an immense achievement and has been ported to numerous gadgets. Since 2014, MIUI can be downloaded and installed in more than 200 gadgets in both English and Chinese. By the end of 2013, Xiaomi had more than 30 million MIUI clients around the world, an impressive figure for a youthful organization.
The MIUI ROM isn’t as user-friendly as Apple’s iOS and gives modern administrations, for example, cloud reinforcement, simple to utilize music player, and an application store. The group at Xiaomi joyfully takes on fan criticism using numerous channels and updates the ROM regularly with bug fixes, improvement, and extra highlights.
In 2011, Xiaomi launched the Mi One phone. Xiaomi just doesn’t make its own product, but it fabricates its own equipment. The Mi One was a top-spec phone with signigicant features.
While commentators rush to call the Beijing-based organization “The Apple of China”, Xiaomi likes to contrast itself with Amazon. Xiaomi makes ground-breaking equipment which it sells and depends on administration and substance to make up a greater part of its income.
Xiaomi Ceo – Lei Jun
Xiaomi’s income in 2013 alone was over $5 billion, very noteworthy for a young organization. There are comparisons between Xiaomi and Apple as both are equipment and programming organizations, both have solid power over stock-chains, and both have a hot fanbase.
Aside from this, the two organizations don’t share anything else practically. Apple prices its phones at unbelievable costs and doesn’t take on a lot of client input, whereas Xiaomi is polar opposite.
Xiaomi dispatched 7.2 million phones in 2012 and 18.7 million phones in 2013. It even sold more than Apple in one quarter. In the principal quarter of 2014, Xiaomi sold over 11 million phones, more than what it sold throughout 2012.
The demand for Xiaomi keeps increasing because of the good-of its gadgets and the economical price at which its products are sold in universal markets, for example, Hong Kong, Taiwan, and Singapore.
Hugo Barra (ex-Google android official) has been tasked with the job of overseeing Xiaomi’s expansion beyond China. Malaysia, Philippines, Thailand, Indonesia, and India will see Xiaomi phones straightaway.
Xiaomi had some wonderful achievements in its third entire year as a device creator. The Company is on course to sell 60 million phones this year, and it has ensured footed (if rather moderate) strides into various markets in Asia, for example, Indonesia and India. The organization’s development is amazing given the the variety in its product catalog aside from phones.
An ongoing social marking report on Xiaomi by Resonance China dissects an enormous assortment of the startup’s procedures and shows how pleasantly they are working out.
Xiaomi’s Business Model
The business strategies are described below:
Xiaomi – A Web-Based Business Organization
Business visionary and Xiaomi prime supporter Lei Jun states Xiaomi as a web-based business organization—one of the numerous reasons he loathes the successive examinations among Xiaomi and Apple. They feel a comparison with Amazon is more relevant. Xiaomi has its e-store and has a customer-facing facade on Alibaba’s Tmall. The numbers back up Lei Jun’s case.
Xiaomi’s site is the third biggest business-to-customer (B2C) internet business store in China in terms of deals volume (behind Tmall and nearest rival JD). On China’s Singles Day on November 11, a business bonanza saw $9.3 billion spent on Tmall; and Xiaomi was the top brand on Alibaba’s commercial center that day.
Xiaomi sold 1.2 million telephones during the 24-hour deals occasion, piling on, alongside offers of some different devices, RMB 1.56 billion ($254 million) in items sold.
Xiaomi by and large sells its gadgets in constrained glimmer deals, ordinarily in clusters of around 50,000 to 100,000 in China and bigger sums abroad. Thus, Xiaomi fabricates only what is certain to sell.
The upstart organization’s attempt to close the deal doesn’t stop once somebody has purchased a phone. New clients find that their phone includes a pre-installed Xiaomi store application.
Most device brands use their landing pages as showrooms or celebrated online adverts. Xiaomi gets to the point by making its landing page into an unadulterated web-based business store.
Xiaomi’s e-store is updated every day to put an accentuation on which items are next accessible in its progressing streak deals. “Xiaomi’s item pages copy best practices from Tmall,” says Rand Han, the organizer and overseeing chief of Resonance China.
Tmall is China’s greatest image-arranged online commercial center with a huge number of merchants, for example, Uniqlo, Costco, and Burberry. That makes Xiaomi’s site design recognizable to the huge number of customers on Tmall and other mainstream online business locales in China.
It has the typical tabs to switch between pictures, details, and purchasers’ audits and appraisals. Apple’s site isolates all that stuff into the Apple Online Store, whereas Xiaomi keeps it upfront.
Uses Another Sort Of Social Trade
Since Xiaomi generally sells its phones over the web, online networking is significant. It does this in China, for the most part, using Weibo, and in new markets, Xiaomi uses Facebook, Twitter, and Google+.
On Weibo, Xiaomi regularly observes commitment levels well more than 60%, as per the Resonance China report, on account of incessant everyday posts on an amazing assortment of themes.
Not exclusively is there the standard buzz for items and news about glimmer deals, yet also motivating forces for retweets, how-to aides, and fun things like photograph challenges. Xiaomi’s Weibo will likewise retweet some popular substance significant to its users by circumventing China’s web. The retweet also binds into social issues around contraptions and innovation.
Each Item Range Has A Social Center
Xiaomi has 10 primary Weibo accounts, the most prominent of which is the Xiaomi Mobile Weibo with near 11 million fans; the latest account for the MiPad has crossed 500,000 followers.
Xiaomi’s corporate Weibo account has 4,000,000 adherents, demonstrating that individuals would prefer to communicate online with contraptions (as it were) as opposed to an organization.
Notwithstanding Xiaomi’s social records, the company’s administrators are likewise active on Weibo and fill in as brand representatives. Lei Jun has more than 11 million supporters, while Lin Bin has more than 4,000,000.
Consistent Shortage
Xiaomi’s glimmer deals help it get control over stock and lessen wastage, staying away from the sort of over-creation calamities seen as of late with Amazon’s Fire Phone and Microsoft’s Surface RT.
Xiaomi’s online life accounts, especially on Weibo and WeChat, play a key job in driving individuals to the enrollment page for each new blaze deal.
At that point, when a glimmer deal is finished, Xiaomi uses “fast sell-out” stats in further online networking postings; for instance, 50,000 Mi4 cell phones sold out in only 25 seconds. Not every person invites streak deals. The procedure is unquestionably much more mind-boggling than the typical snap-and-checkout on most online business locales.
The framework appears to have met with more analysis outside of China than it has in Xiaomi’s home country. When Xiaomi propelled in India in September, it confronted a reaction as interest exceeded supply by a factor of two-to-one, bringing about a rush of baffled and disappointed remarks on the brand’s Facebook India page. Notwithstanding those disadvantages, new phone manufacturers are imitating Xiaomi (OnePlus) using blaze deals.
For Apple, premiums start at about $700. For Samsung, it’s about $600. However, Xiaomi slashed it in half in 2011 by offering phones premium specs (yet a simple, blocky structure) at low prices – just $325. Xiaomi has also increased its equipment configuration game with the goal that the feel of the phone doesn’t contrast with the amazing specs.
Enlivened by Apple, Xiaomi instructs purchasers on its plan reasoning, underscoring attention on straightforwardness and usefulness in its items. Xiaomi’s very own rendition of Android, called MIUI, has additionally assisted with this superior feel as it is more preferred than most of the Android skins out there.
Runs Its Locale
Alongside its cautious online networking stratagem, Xiaomi is likewise starring dynamic in running its locale gatherings, or BBS. This is the place the brand’s most bad-to-the-bone fans, named “Mi fans,” meet to examine devices, share information, and by and large hang out.
This is something regular to Chinese organizations, yet to a great extent unused by significant brands abroad. Xiaomi’s BBS has 30 million enrolled clients and sees 579,000 new posts day by day.
Q2 of 2018 saw Xiaomi a 152% hop in its abroad income which is esteemed at about Rs 16,700 crores. The internet services help Xiaomi get a net benefit of around 60%. At the point when it at first began its tasks in India, Xiaomi profoundly relied upon informal publicizing to spare any kind of overhead cost.
This enabled the Chinese giant to sell its items (cell phones particularly) at a lower cost than its rivals. Xiaomi was able to pull in more clients as a result. More procurement implies more clients who use Xiaomi gadgets.
Some of its clients will, in general, become faithful to administrations like the MIUI, Mi Store, and so on. This is what Xiaomi needed ever since it began manufacturing phones. Selling the best of equipment at a lower cost and creating a dedicated fanbase is Xiaomi’s plan of action.
Xiaomi’s Smartphone Sales
Things weren’t, however, that simple for the Chinese company. After an underlying lift to its cell phone deals, Xiaomi went down in positioning not long after players like Oppo, Vivo, and Huawei (with Honor) overwhelmed the phone space through disconnected streams. Even though Xiaomi was the pioneer in the online space, individuals still favored purchasing phones physically.
Therefore, Xiaomi started to grow its disconnected nearness by opening Mi Home stores and joining hands with the neighborhood merchants. Opening Mi Home Stores achieved two targets:
Xiaomi now had one more channel to sell phones.
People visiting the Mi Home Stores would regularly wind up purchasing different extras like power banks, earphones, and other accessories fabricated by Xiaomi.
Business Growth Of Xiaomi Corporation
In the second quarter of 2021, Xiaomi’s total revenue amounted to RMB 87.8 billion. Xiami has recorded an increase of 64.0% year-over-year. It adjusted net profit for the period was RMB 6.3 billion.
The Chinese have a fixation with establishing world precedents. So when Xiaomi propelled 500 disconnected stores in India in October, 2019 at the same time, it registered a global record to its name. For a brand that has greatly depended on web-based blaze deals, opening so many stores was a new strategy.
Internationally, cell phone shipments declined 4.1% in the last quarter of 2018, topping off the “most noticeably awful year ever” for cell phone shipments as reported by industry tracker IDC. Be that as it may, India hasn’t seen any stoppage.
In 2018, almost 142.3 million cell phones were dispatched in India. That implies a development of 14.5% over the earlier year. Among the cell phones sold in India, Xiaomi has seen significant strides with a 58.6% year-on-year increment in unit deals in 2018 to capture a piece of the overall industry at 28.9% (IDC stats).
It has been in the Indian phone market for just four years but has overtaken Samsung. The latter has a 22.4% share of the overall industry. India represents more than 33% of Xiaomi’s cell phone deals all around.
In 2018, Xiaomi India booked an income of Rs 23,000 crore ($3.24 billion), a 174% development over the earlier year, selling telephones valued at a normal price of $142.53. Samsung’s cell phone business in India rounded up about Rs 37,349 crore ($4.82 billion) in a similar period, up 9% from the prior year.
The South Korean organization’s phones are valued higher with the catalog starting at $250.
Xiaomi’s Full Year Revenue
In 2016, Xiaomi propelled the RedMi Note 3 and the RedMi 3S — both selling like hot cakes and helping the organization cut into the offers of Indian makers such as Micromax and Lava.
Xiaomi presently sells disconnected in more than 40 urban communities and has more than 4,000 favored accomplices who sell Xiaomi phones. It likewise propelled enormous organization retailers that year through Sangeeta, Poorvika, Croma, and Reliance Digital. The third mainstay of the organization’s disconnected procedure was propelling Mi Home stores, which only sell Xiaomi gadgets.
One aspect that has worked very well for Xiaomi is the organization’s evaluating procedure. Xiaomi co-founder Lei Jun broadly said a year ago that the organization could never make over 5% edges from its equipment portfolio, adjusting the organization to its vision of going past being an equipment creator.
“India is very value touchy and almost (every) client survey of the Xiaomi telephone will say that it is useful at the cost,” says Vijay Raj, a Bengaluru-based blogger and analyst.
It’s not just about making modest smartphones. There’s likewise something exceptionally shrewd affecting everything here. As a Harvard Business Review article brings up, Xiaomi keeps its models in the market longer than other telephone producers.
So when segment costs fall, Xiaomi makes a benefit. A half-year prior, it posted a $2.1 billion benefit for its first quarter of business as a traded-on-an-open market organization.
According to one gauge, Xiaomi’s MIUI has around 70 million month to month dynamic clients. That makes it a ground-breaking conveyance stage. “They would need to investigate what we can do to make extra dollars of it,” says Kawoosa of TechArt. Xiaomi is making Rs 40-45 for each client for each month, he says.
MIUI was one of the earliest cell phone working frameworks making use of locally available infrared blaster to control apparatuses at home. It additionally presented clever highlights that make it simple for clients to duplicate one-time passwords for online exchanges and organize train booking affirmation messages to conspicuously show the PNR number.
Xiaomi’s Vs Other Brand Growth
Xiaomi likewise lets clients arrange two WhatsApp numbers on the same phone.. Xiaomi, generally speaking, has an arrangement of more than 200 items — extending from a pen to a cleanser gadget to consoles and PCs — a catalog created through its “biological system accomplices.” Most of these aren’t sold in India yet.
The organization plans to get as many brilliant gadgets as reasonably possible on a typical Internet of Things platform it calls the “Mi Home application”. The primary classes in India are presently telephones, TVs, control banks, sound, wearables, and air purifiers. In September, Xiaomi propelled a home surveillance camera.
During his visit to India, Xiaomi’s Founder and CEO Lei Jun discussed the organization’s arrangements, techniques, targets, and a few indications on the upcoming product offerings for the Indian market. Here are some key highlights of his discussion:
Plans To Expand Disconnected Piece Of The Pie
“If we see by and large market, online is a little piece… so it’s somewhat reliant on what number of individuals embrace the Internet. In China, after we have accomplished such a scale (in the online market), the test is how we can accomplish the equivalent in disconnected with effectiveness.
In India, after we accomplished over half piece of the pie in online space, the inquiry is how to do likewise in disconnected,” Jun said.
New Assembling Plant
Xiaomi recently enlisted a assembling plant in Andhra Pradesh and guaranteed that over 95% of its phones for the Indian market would now be produced locally. As indicated by this ET report, the organization may even take a gander at sending out Indian produced phones later on.
The cell phone producer as of late guaranteed that it has crossed $1 billion in income from its India operations. Xiaomi makes money by selling phones, wearables, frill, air purifiers, and so on.
In Q4 2016, Xiaomi was the second biggest merchant in India as far as phone shipments were concerned, as indicated by IDC. The organization’s Mi Band shipments additionally represented 10.3% of the Indian wearables market in Q2 2016.
More Stockrooms And Administration Focuses
The organization is additionally setting up a third distribution center in Delhi NCR and plans to twofold its administrations focus check from 250 to 500 by the principal half of this current year.
Note that Xiaomi has its web-based business store named mi.com in India. In July 2015, Xiaomi declared that it would also put in resources for setting up a claim distribution center and coordinations.
Plans To Enter The Money Related Division
As disclosed to The Hindu, Xiaomi will dispatch another arrangement of items, although Lei Jun didn’t mention what sort of items they would be. Jun additionally implied that the organization is keen on venturing into the money related segment in India.
We are investigating the probability of giving budgetary administrations in India. Be that as it may, this part is exceptionally managed. It requires various licenses. If we could get such licenses, we are glad to be a piece of this monetary administration’s development in India.
We have to comprehend if there are confinements on remote substances,” Jun says. Xiaomi additionally has an installment administration called Mi Pay that is only accessible in China at the moment and has tied up with Bank of China and Union Pay, a card arrange in China.
On Creating New Openings And Income Targets
Jun likewise talked about how the organization focuses on making 20,000 new openings in the following three years by venturing into disconnected retails, assembling, and dissemination. Addressing ET, Jun said that the organization plans to create near $15 billion in general income by concentrating on developing markets like India and Indonesia.
FAQs
What is the origin of Xiaomi?
Xiaomi was established in April 2010 by Lei Jun and headquartered in Beijing, China.
Who is the founder of Xiaomi?
Xiaomi was founded by Lei Jun, Lin Bin, Zhou Guangping, Wong Jiangji, Wang Chuan, Liu De, Li Wanqiang, and Hong Feng.
How does Xiaomi make money?
Xiaomi makes money by selling phones, wearables, frill, air purifiers, and so on. In Q4 2016, Xiaomi was the second biggest merchant in India as far as phone shipments were concerned, as indicated by IDC. The organization’s Mi Band shipments additionally represented 10.3% of the Indian wearables market in Q2 2016.
What makes Xiaomi unique?
Its varied and unique ecosystem of products and the different way of marketing makes Xiaomi Successful and unique from others.
Is Xiaomi trusted brand?
Xiaomi Corporation is a trusted Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing.
Why Xiaomi is successful in India?
Xiaomi propelled 500 disconnected stores in India in October at the same time, it registered a global record to its name. For a brand that has greatly depended on web-based blaze deals, opening so many stores was a new strategy. Internationally, cell phone shipments declined 4.1% in the last quarter of 2018, topping off the “most noticeably awful year ever” for cell phone shipments as reported by industry tracker IDC. Be that as it may, India hasn’t seen any stoppage.
Is Xiaomi and Huawei same company?
No, Xiaomi Corporation is a Chinese gadget manufacturer established by Lei Jun in 2010 and headquartered in Beijing, While Huawei is another multinational company of China and a competitor of Xiaomi.
No matter which business you are in, If you are working, there is a chance that you will have to face angry or dissatisfied customers. But many company representatives try to avoid the problem and just recite the “company policies” again and again, which is not what an angry customer wants to hear .
The dialogue of an angry customer leads the employees to become so frustrated that they use an unapologetic tone in the place of regret. Then the customer will feel like no one is listening to him and also that the customer is being ignored. This will lead to the company’s bad image in the customer’s eyes which is a bad thing for the company.
If you are thinking to handle this situation wisely and winning over your customer. Then you should read this article, below are the given tips on how to deal with angry customers and also on how to calm down an angry customer.
If you are dealing with an angry customer could be a great opportunity for you to turn the situation into a good situation. How you behave to the customer can make or break the perception of your company. Dealing with angry customers is hard, but instead of going away from the situation, you can use the situation to improve your product and build a great relationship between you and the customer.
According to research, 91% of unhappy customers do not actually communicate to companies that they are not happy with the product. Complaints from angry consumers serve as new insights that can help improve the company’s performance.
facts on angry customers
Listen To Angry Customer
If you also want to handle an angry customer in an effective way. So how to calm down an angry customer? The very first thing you can do is use active listening. Active listening refers to concentrating on every part of what the customer is saying so it can be clear about why they are upset with the product. Most people do not listen with the intention to understand but they listen with the intention to reply.
For diffusing angry customers, you should be present and give the customer your attention. Focus on the words that the customer is saying and avoid the anger behind their words. To show them that you are actively listening, repeat their complaint again and ask clarifying doubts. Try not to interrupt them, this can be the most effective to handle the situation. Listeninging to them carefully will also help you with what to say to an angry customer next.
Apologize
In winning your customer’s heart, an apology is a very must thing you should do to make them feel good. An apology for the problem they are having with your product. Dealing with an angry customer is hard, but you can start by acknowledging the mistake and letting the angry customer know that you are sorry for the problem that occurred.
First thing one should know on how to handle angry customer is by offering your sincere apologies. A thorough apology shows the customer you care about the situation and their problem. Give them a brief explanation of what you have understood about the problem. Try to keep the explanation short.
Showing empathy to your customers will help you guide your response to dealing with angry customers over the phone. Empathizing does not mean agreeing with whatever the customer is saying. It generally means you are understanding the customer’s situation.
By this, you can know how the customer is feeling. And now you will be relating to their problem at a personal level. This will basically show them that you respect them and you are listening to them.
Keep A Positive Tone of Voice
While talking to that angry customer, do not let the frustration enter between you two. This will be better for your conversation with your angry customer. In many examples of angry customer situations the employees may use negative words to match their tone of voice. This is not how you deal with an angry customer, as it will mess up everything. It’s very easy to argue with someone, but it’s hard to keep calm and to understand the situation calmly. You need to use a more productive way of conversation while handling angry customers.
Many employees don’t know how to calm down an angry customer. So before making your customers calm, you should maintain your calmness and take a moment to think about your answer. This can make the situation better than before. Think about your response to ensure any type of aggressive language. If you have enough time then take your time and come back to a better response. A small break will help you overcome the situation without any negative words.
Use The Customer’s Name
Using someone from their name can leave a strong impact on the person. So how would you handle an angry customer? The first thing you need to do is use the customer’s name will make them familiar with you. They will feel comfortable while interacting with you. This will lead you to a personalization level in the interaction. Using a name shows you care and you are a real person and also that you respect them. Try to use angry consumers name occasionally. Addressing them by their name too much can let you in a very awkward situation.
When a customer is angry with your company, it’s obvious that the trust between the company the customer has been damaged. Now it’s your task to rebuild and try to maintain the trust moving forward. If you have made a mistake, just acknowledge that and do not argue with angry customers on the phone.
When handling an angry customer, make sure you have all the history of that customer. This will help you in communicating confidently and that you are capable of solving the problem. If your not sure on what to say to an angry customer you should start by being honest with the customer.
Give them some behind the scenes view of things so that they can understand your situation too. Many examples of dealing with angry customers show that taking the responsibility for the mistake have calmed angry customers.
How To Win Trust
Don’t Take It Personally
Always keep in mind that this is a part of your work and not your personal life. The customer is not complaining to you but to the company. Many angry customers scenarios show that had their expectations from the company, but are now they are feeling cheated by the company. If you will take it personally situation will go out of your hand. It will affect your overall quality of work and mental health.
If your company is the one who ishandling an angry customer. Then your company team must know how to deal with angry customers face to face and should be skilful in the way they talk to the customers. Negative words and ways of talking will increase the anger of the customer and positive language will calm down the customer. Try to avoid languages that imply that the customer is accusing wrong. Using positive words will turn a worse situation into a good situation. Try to use words such as “yes”, “absolutely” etc.
Find The Solution
While handling your angry customer, the very main goal you have is to resolve their issue. Try to resolve it if something that you can do immediately to solve the problem. And if not, let them know that there is nothing you can do about it. And also you need time to solve the problem. Another important thing you must know on how to deal with angry customers is that you should give them an approx amount of time to which will take to solve the issue.
Be honest with the customers, try to meet the time you gave to the customer. If not then let them know that you need more time than this. Doing this will enhance your relationship with the customer, while the dialogue of an angry customer will also change. If you can not solve the problem on your own, try to connect to your company’s senior members. Handling angry customers this way will help you to solve the problem very fast.
You may have more experienced members in your customer service group that will help you in solving the issue very fast. The very most important thing you should do is let the angry customer know that you are trying to solve the issue, and it will be solved very soon.
If you will think carefully angry customers help us a lot in improving your company. They point out the root cause of their problem and help in improving your operational changes. It will be better if you keep the feedback from your angry customer. This way you can get help in diffusing angry customers and keeping the customers happy.
Conclusion
This is true that handling angry customers is a bit difficult task to do, but it’s not impossible. The main thing you can do only is to let the customer speak and you should communicate with them with respect and empathy.
Try out these tips for handling angry customers orstrategies for dealing with difficult customers. You will be able to turn a negative situation into a positive one. And also, you will build a better relationship between the company and the customer. Hopefully this article helped you understand on “how would you deal with an angry customer?”
Thank them for bringing the issue to your attention.
Explain the steps you’ll take to solve the problem.
Set a time to follow up with them, if needed.
Be sincere.
Highlight the case’s priority.
How to handle angry customer in difficult situations?
Coping With Difficult Situations.
Remember, Distress is Time Limited.
Put the situation into perspective.
Keep your thoughts Balanced and Truthful.
Focus less on the stressor and more on Solving the Problem.
Remember, You Are More Than This One Situation.
Seek support from Family, Friends and/or Counselors.
How to deal with an angry customer?
Stay calm.
Shift your mindset.
Acknowledge their distress.
Introduce yourself.
Learn about the person you are talking to.
Listen.
Repeat their concerns back to the customer.
Sympathize, empathize and apologize.
What is the best strategy to use in dealing with angry customers?
If the customer gets louder, speak slowly, in a low tone. As you approach the situation with a calm, clear mind, unaffected by the customer’s anger, their anger will generally dissipate.
There are four main types of marketing techniques that are being commonly applied these days – offensive marketing, defensive marketing, guerilla marketing, and flanking marketing. Among these, defensive marketing is known to be the most revered one due to the low risks attached to it. Read on to know everything about defensive marketing and some well-known examples too!
As the name suggests, defensive marketing incorporates a protective approach towards the consumers, irrespective of the skyrocketing competition. Once this mode is put into practice, much of the experimentation processes come to a halt. It is essential to understand that the company’s actual “defense” is regarding its position in the market, not the products sold.
The following three types are the best way to provide a deep insight into the core aspects of defensive marketing. Whichever form is applied, the test remains the same – the status of the company should not be degraded due to fluctuations in the market. This categorization is solely based on the means applied. They can be applied individually as well, based on the needs.
Position Defense
The existing position of the respective company in the market is to be maintained at any cost. One of the most important strategies applied is the deepening of all old bonds catering to customer satisfaction. This one is more prone to be the victim of offensive players.
Mostly, a single best-selling product is set as the focus. Accordingly, other parameters are modified to suit the economic conditions while building the brand name continuously.
Example of Position Defense
The automobile giant Mercedes prefers to stick to the same routine, irrespective of similar attempts being made by Toyota.
On the other hand, Apple does not focus on increasing the RAM of iOS devices by copying other brands. This helps the tech-savvy people rely on the quality.
Ultimately, the standards remain high and the position does not plummet at all.
Mobile Defense
A lot of changes are made in the direction of “not losing the current position”. The steps taken are mostly for backing up the company so that the diversity in products helps in compensating at all levels. The changes include broadening the target market, enhancing promotional mechanisms, adding more products to the catalog, and altering market segments each time.
Example of Mobile Defense
The widely known Indian Tobacco Company (popularly abbreviated as ITC) forms the best example for this category of developmental defense marketing. ITC has spread its scope to food ventures (the daily essential Aashirvaad wheat), and other significant commodities. Agribusiness is also a new inclusion, leading to even more profits with the increase in demand.
Counter-Offensive Defense
It is not just an exclusive type of marketing, but also another way of promoting defensive strategies. The simplest way to defend the position is to nullify the various downgrading attempts made by attacking companies. Mainly, the attack is dodged in such a way that it turns beneficial for the recipient company. Prices are reduced and products are improved.
Example of Counter-Offensive Defense
Almost all beauty brands have incorporated organic products in order to suppress the increasing popularity of purely organic brands. This increases the range and helps them grow at the same time. If the organic companies begin including synthesized products to tackle this attack, this would be regarded as a counter-offensive move in the direction of probable profits.
Now the doubt is – how is it a breakthrough? In such uncertain times, taking calculated risks has become the new norm. In other words, defensive marketing is an apt real-life depiction of how an investor or strategist looks before leaping. It is widely believed that this type of marketing is widely being used to balance the economy and maintain the flow of incoming ideas.
FAQ
What is the difference between defensive marketing and offensive marketing?
In defensive marketing, the organization focuses on its own betterment while offensive marketing techniques are driven by downgrading principles.
What are some of the reliable trends in defensive marketing?
The trends can be easily identified through a budget decline, use of media in promotions, propagation of defensive newsletters, and much more. These trends help in further streamlining the strategies so that the past mistakes do not overpower the sudden change in marketing technique.
What are the top strategies useful in the implementation of defensive marketing?
There are five Ps that make defensive marketing successful – pricing, partial distribution, product improvement, prudent advertisement, and the powerful awakening of the market. They help in managing even the most obsolete brands and making them shine in no time.
Ad Campaigns are a great way to communicate with your consumers and spread a positive message about your brand. But not all ad campaigns are successful you need to make sure you convey the right message. If you are planning to create an ad campaign here are few mistakes you should avoid.
An ad campaign can do wonders if the idea is well executed.
An Ad Campaign is generally made to send across a message revolving around a constant theme. These campaigns have a specified duration following questions like:
When will it air? And for how long?
Is it supposed to be a television commercial?
The campaigns are tweaked a little accordingly to fit the mediums that are being used. These campaigns are not limited to only a single medium. Mediums like social media, hoardings, newspapers, emails, etc. Can be used, a campaign could also be a series.
Why are Ad Campaigns created?
To inform the audience about a new/existing product or a brand in the market.
To stay connected to the audience.
To communicate a message or bring awareness among the consumers about a certain thing.
The mediums are chosen based on the objective and the message that a brand is trying to communicate. For example, your brand might have completed 75 years since it was established. So, to celebrate/inform the consumers about it, you create a campaign that delivers the message.
Media scheduling is important, but along with considering your current theme and the current situation. As the tweets came from Zomato on Twitter, that clarified that the ad campaign that was made back six months ago is bizarre.
Zomato did not consider for once that once its TVC (television commercial) series would be out, how would people react? All the damage could have been avoided if simply they had a backup planor would have bent their idea around something else.
Considering the audience was already engaged in a conversation around the treatment of the delivery workers of Zomato and other food delivery apps on various social media platforms.
Encoding and Decoding of the message
We often forget this, especially when we are making ad campaigns these days. Your brand needs to be super careful. Back in the days when ad campaigns were created, people would maybe talk about it. But now with social media platforms, the audience has the power to givefeedback. Communication is a two-way process.
While there are anonymous handles emerging on social media. Not wanting to reveal their identity but to bring attention to the issue of long work hours and low wages. Bringing it to the notice of how the food delivery staff is being treated.
Be your own critic, revaluate, learn, and do better
You should consider a small test marketing exercise before releasing your ad campaigns. Evaluate the campaign with your team, gather data, and analyze it.
Another part of it came when people also pointed out the money that might have gone into the creation of the Ad campaign. Rather than addressing the real problem here and looking for a solution.
Study the behavior of your audience:
How did they take it?
Was the message clear?
Does the campaign work?
Do you need some changes?
Is research needed?
Can you improve?
Is there more that you can do?
Is there space to grow?
See if it could be misinterpreted? Or could send out a wrong message to the audience.
Remember, marketing plans should always be flexible as the only constant in society is change. One is dealing with human emotions, competing with other markets, trying to stay on top, and when so much is happening mistakes are often made.
Example of Failed Ad Campaigns
Zomato’s ‘Har Customer Hai Star’ recent Ad Campaign
Recently, Zomato’s Ad campaign series with stars like Hrithik Roshan and Katrina Kaif were aired and have received backlash from the masses on social media. The campaign ‘Har Customer Hai Star’ glorifies the delivery boys. With the situation being the delivery personnel delivering his order despite the bad weather in case of Hrithik Roshan. Hrithik addresses him as jadoo and requests for a selfie saying “Ek selfie to banti hai”
But the personnel leaves anyway, happily without taking the selfie, in the rain, where we later discover the notification that he receives is for another order. With the voice-over following the lines:
“Hrithik Roshan ho ya aap, apne liye har customer hai star”
In the case of Katrina Kaif, when the delivery staff gets her the parcel, she asks him to wait while she brings him a piece of her birthday cake. There is the sound of a bell with the notification of another food order that he has to deliver. And the delivery guy goes on outing his duty first, without the cake.
The one mistake that Zomato made was the mistake of not keeping up with the opinion of the public. And was blamed for diverting the conversation that was going on around social media.
Remember when Facebook’s rating dropped from 4.0 to 2.6?
Facebook rating dropped to 2.4
This happened on Play Store and it happened quickly as Facebook, the famous social media app, kept flagging and deleting posts, censoring Palestinian accounts who were protesting Israeli military. Its rating also went down on the Apple Store with thousands of one-stars.
Keep your audience in mind while creating an ad campaign.
Remember, you can always do better.
Make a clear-cut message when thinking. Ask: what is it that you want to deliver?
Test marketing helps.
Do your research. Plan and schedule the campaign based on what is going around right now?
The key message should not be miscommunicated.
Remote communication is a two-way process.
Be sensitive.
Conclusion
We are living in the age of the 21st century. People on social media are well informed. The youth today talk about politics, gender equality, feminism, revolution, and care about issues that matter to them. Movements are made in a blink to make sure that change is made for good.
FAQ
What should be avoided when creating a marketing campaign?
Make sure your message is clearly conveyed, Be your own critic and do a test run before releasing your ad.
What are some marketing mistakes?
Making assumptions, Ignoring customer complaints, Faking popularity, and Ignoring the emotional drivers of choice are some of the common marketing mistakes.
What is the impact of advertising?
An ad campaign can create a positive impact on consumers mind that in turn can influence future behavior.
Social media is a digital world with limitless marketing exposure. Whenever we visit a social media platform, we see brand commercials popping on our screens. Why is social media such a big deal for advertisements? Well, the truth is social media platforms like Facebook, Instagram, Twitter, Pinterest etc. have added value as well as a great convenience to brands and companies that intend to market their business on social platforms.
Make note of these 24 effective Social Media Marketing Tips that’ll help you ace the world of social media.
Social media marketing is the connection with your audience with the help of social media platforms to build your brand, increase sales, generate revenue and drive website traffic. There are various tasks involving social media marketing tips and tricks such as writing blogs, publishing articles with great content, engaging your users, analyzing results, and running campaigns.
In these times, Social Media Platforms have increasingly become the most ‘popular choice’ for content creators and businesses to connect with their audience, which is why you need tips for social media marketing.
Considering the overwhelming increase in social media users in the last few years, classifying it as one of the most effective marketing tools would not be an overstatement. Marketers have acknowledged its huge potential and have been using the best social media tips extensively ever since.
24 Effective Social Media Marketing Tips (Infographic)
To start with, social media marketing requires creativity as well as an effective strategy to create a powerful impact on the ‘ever-competitive market’. Before implementing social media tips for business, you need to come up with a compelling marketing strategy.
Social Media Marketing Tips
Tips for Social Media Marketing (In Detail)
Here are the 24 effective Social Media Marketing Tips that will help you go!
1. Define The Goal
Aiming without a set target and a solid plan is like a shot in the dark. Brands with such a weak initial footing will most probably dismantle their management structure along the way, especially in highly competitive markets. This is why defining your goal is one of the top tips social media marketing.
Brands must know the 5 Whys behind their every decision. The objectives will be the main thrust of the social media campaigns. Try not to defer any longer, snatch a paper, and pen down your objectives!
But…Before we go ahead, here are a couple of marketing tips you should remember while objective setting:
Business enterprises should be able to answer questions like:
Who will visit our page? How will the audience respond? And the most important… What type of posts attract more audiences to the page?
It is not only the most effective social media marketing tip but also a vital step in the marketing process. Selecting a specific target audiencewill allow the business to focus and market their brand to a specific market that is more likely to respond and purchase the product. It is one of the easiest social media marketing techniques to find potential customers and generate business.
Another thing that should be ensured is that the selected market niche should be in majority. These social media tips take less effort to reach out to the customers and are more rewarding in case the business takes off.
3. Be consistent
What characteristics create a dynamic impact on the brand’s outlook?
Consistent marketing is the answer to this question. The social media marketing ideas must be consistent and frequent, as it is a very essential ingredient for customer satisfaction. Brands that keep their social presence active and always have something new to offer to their customers have higher chances of market domination.
Usually, businesses easily renounce from their social pages after a few emails or Instagram posts just because they could not intrigue their audience. It takes time for every brand to build a positive reputation. So why give in so early? Many brands grew their businesses on Instagram as it is one of the best social media platforms, The platform has also launched Instagram Business that allowed businesses to use tips for social media marketing to grow their presence.
It is crucial for brands to keep up with their aggressive marketing. It shows the confidence the brand carries with itself and increases the inflow of audience on the social media page. Once viewers gain familiarity with the brand, it leads to loyalty in no time, which is why being consistent is one of the top social media tips. Provided that the brand ensures customer satisfaction, the customers will return back to them in the future.
Marketers that record their strategies are 53% more likely to accomplish their goals. This calls for activity. Isn’t that right? All things considered… Writing down your social media marketing technique is the way to transform your vision into the real world. While you set up your methodology, keep note of the best social media platforms you will engage your audience on. Building a game plan is social media top tips, that ensures it targets your potential customers and lines up with your objectives.
Here are a couple of tips for social media that could help you plan your social media marketing strategy.
Create a list of upcoming celebrations and special days
Create theme-based content for a unique experience
Set up a list of hashtags for various platforms
Ensure it covers your essential functions, highlights and missions
5. Keep Track of Engagement
To ensure you’re getting the best outcomes out of social media marketing, you should be precisely following and gauging your marketing efforts. This why keeping a track of engagement is one of the effective social media tips and tricks in 2021. Over 40% of brands don’t keep track of their social media ROI, which implies that they will never know whether their strategies have been effective or not.
To analyze the tracking result, distinguished key measurements are imperative to your brand. A portion of the measurements that you need to search for include:
Engagement on Facebook
Retweets, mentions on Twitter
Clicks, and impressions on LinkedIn
Interactions on Pinterest
Likes, remarks and mentions on Instagram stories
Brands should analyze their social engagements at the end of every week and month in order to understand the pattern of interaction varies from post to post. It is best social media marketing technique as it makes it easier to assess the engagements and make decisions accordingly.
One of the proficient social media management toolsis what you need. How awful would it be to post manually on 8 eight different social media platforms, 3 times every day?
Damn. That is more like a nightmare for a marketer. All you will do is distribute, and nothing more constructive.
Why not leave the dull work to the software? Yes, that is possible! Attempt to computerize as much activity as possible. Other tips on social media marketing includes automating your social media updates would help you stay ahead of time.
Use a tool like ContentStudio to schedule your posts and auto-present the reports on the entirety of your social records and analyze the outcomes with the results. The fundamental purpose of using a tool is to prepare ahead of time. Scheduling posts is another social media sales tips, as they have an inbuilt calendar that makes it simpler for you to watch out for your posts.
Adding tweets, pins, posts, use hashtags and mention your social media pages is a common social media marketing tips and tricks. Such a methodology will spare you time, helping you be more profitable and stay intact to your marketing strategy.
Your audience may differ on social networks at different times of the day, which is why optimizing posts are best social media marketing strategies. To engage with them, you have to identify not just what kind of content is fascinating to them, yet additionally what segment of consumers avail your services.
So, how frequently should you post every day? What sort of content would draw more audience to your page? What is the ideal number of posts every day? These are basic inquiries that any social media marketer attempts to answer, it is another top social media tips as it a vital part of social media marketing.
To cut the chase, there is no definite answer. These answers can be determined from your analysis, experience and different trials of what works for you and what doesn’t. Anyway, timing is fundamental for your social media marketing strategy. It is significant not only to publish top-notch content, and locate the ideal posting recurrence for coordinating an effective social media marketing strategy.
7. Grow Your Subscribers Trust
Here is the trick! It is an inbuilt human nature to love free stuff. Good marketers offer freebies to their clients every once in a while. This is a useful social media marketing technique, as it a smart way to make them use your products especially when they haven’t tried it out.
Best part is they will never refuse and what if they absolutely love it!? If that’s the case, then “word of mouth” will play its part and subscribers will start pouring in.
Winning the trust of your consumers is what every marketer strives to achieve, making it the most effective social media marketing strategies. But clever marketers actually get the job done. And Botsify is an example of such a platform whose aim is to build the trust of its consumers.
It displays the affection and cares the brand has for its customers which leads to a long-lasting relationship. The aim of these social media tips is to increase your chances for future selling and that can easily be done from small meaningful gestures.
Here’s the reality: the motivation behind your social media page is to interact with your target audience and prompt them to share your content, which incorporates the cover images and banners of your social site.
Content of social pages that have appealing visuals get shared easily and increase interaction with the subscribers. Letting your page visually talk to your audience is a simple social media tip for businesses on social media.
So put your creative freedom into action (you can do this with Instasize), while ensuring that the visuals compliment your company’s theme/branding style and are exhibiting the products and services.
Your customer is hoping to build up a solid brand identity through online media, so ensure that you give a unique, prominent and dynamic visual outlook to the brand on the best social media platforms. Being consistent carries great significance and is the most effective social media marketing. You may add attractive images, video layouts but the basic theme should be untouched once the brand identity has been established.
Have a look at StartupTalky for a good example of attractive and user-friendly UI/UX.
9. Keep Improving the Customer Experience (CX) Strategy
Customer experience strategy is defined as the strategy created by a brand to provide a seamless and memorable experience to its customers and is a one of the tips social media marketing.
Both before and after the sales the customer experience (CX) characterizes the significant plans set up to convey positive, worthwhile experiences over those interactions. An effective customer experience is a social media marketing strategy that makes you consider various significant factors: focused insight of the market, competitive research, commercially useful data, mission and vision.
When constructing your customer experience strategy (CX strategy), you need to guarantee that you’re putting the entire muscle of your organization to work, not simply the guys that deal with the customers.
This social media marketing tip constantly evaluates and assesses feedback that you receive, you will come to the conclusion that it’s simpler to adjust the brand around the primary objective: prioritizing the customer experience and the relationship.
10. Work SMART
Defining your social media ROI objectives is among the best social media marketing tips. It is one of the most significant initial steps you would prefer not to miss before embarking on your social media adventures. On the off chance that you don’t set your objectives, your success or failure can not be determined.
Are you an awareness creator? Want new clients or generate income? Whatever steps you take will be viewed as your efforts can be taken as your social media ROI objective. What’s more, it’s significant that it’s a SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) objective.
Specific: A marketing tip is to not set an indefinite objective. Try not to state I need followers on Instagram. Rather state, I need to accomplish X number of followers from Y class of individuals. For instance, a true B2B specialist would state I need to get 1,000 followers from B2B entrepreneurs.
When you’re running promotions on Facebook, the platform is the best social media platforms for marketing, as it permits you to focus on a certain audience as you may want. At the point when you referenced the class of individuals you need to draw in, you get to specifically target that audience.
Measurable: You ought to have the option to gauge the success of your objective. Let’s assume you need to get likes from B2B entrepreneurs, cool. What number of likes? 1,000 likes. That implies you can gauge it. At the point when you get 1,000 likes, you’ve accomplished your objective.
Achievable and Realistic: Also, I know the impossible can become possible if we put our brain and resources into it. In any case, on the off chance that you know your assets and labour can’t take your likes game to 100 million in one month, then it’s advised to drop such an unrealistic goal.
Time-based: A time based social media ROI objective will sound like, “I need to get 100k Facebook likes in 10 months from B2B advertisers”. In order to make the most effective social media marketing strategy, you should manage your time. The beneficial thing about defining your objective is that it’ll allow you to focus on interacting with individuals that matter to your business. It will additionally assist you in staying organized and utilize your time efficiently.
Social media platforms are many but you should find out what works best. You can figure this out through some market research to define your target audience, followed by extensive competitor research, where you can check out the platforms used by similar brands of your niche. These social media marketing techniques will help you get a fair bit of idea regarding your target market and audiences along with the information that how similar products reach the consumers.
12. Set Up Social Media Content Calendar
Organizing things is always a blessing in disguise. With the increasing projects and the content requirements for each project, it’s easy to forget what you have posted or what you shall be needing next. A social media content calendar is a one of the top social media tips for business, as it is most essential part of a successful marketing strategy.
You can choose to organize your routine in the form of a social media content calendar, where you lay down your content strategy. A social media calender solves common queries such as, “How to market on social media?” or “How often should one market on social media?”. With the help of a social media calendar, you can place your content requirements, schedule your content in advance and revamp your social media strategy effortlessly.
13. Use The Art of Storytelling
Who doesn’t love a story? Whether it is Movies, books, or real life, all of us love to delve into stories. This art of storytelling can also be a big boon when it comes to marketing. Your knack for creative storytelling can attract your audiences and thereby, prove a huge help in turning them into loyal consumers.
You need not worry if you don’t have a flair for storytelling. You can either adopt the art of storytelling with the help of competitors and online lessons or hire professional marketers for it, because it is an effective social media marketing strategy. The first process might end up consuming a lot of your time. Therefore, it is wise to go for a professional marketer and brief them with your idea of storytelling to usher successful ad campaigns and audience interactions.
As we are delving deep into the digital ways most of us seem to have lost to apathy but your customers may expect a human touch or two to your brand. Therefore, you need to find more and more opportunities to keep humanizing your brand as much as possible in order to stay connected with your audiences and maintain a personal touch with them. If you are wondering how then using emoticons might be of some help to fill up the gap.
Emojis or emoticons, as their name suggests, emote on behalf of us. Life has really become fast these days for everyone and most of us, therefore, lack face-to-face interactions but using emoticons we can often convey our emotions more vividly than through texts.
15. Treat Each Social Channel Uniquely
Each social media has its own list of features and advantages. Therefore, it is wrong to confuse Facebook to Whatsapp or Instagram to Facebook or YouTube (which are best social media platforms for marketing) with any other platforms and follow the same strategy throughout.
You need to understand the nuances of each social media platform, engage in most of them for marketing purposes but treat each of them differently to enjoy a marketing boost!
16. Deep Dive into Social Media Analytics
The social media marketing tips does not always imply finding the trends and the best strategies and putting them to use. Checking the results of our marketing efforts is as important as the social media marketing campaign itself. Therefore, never ignore or shy away from checking your marketing progress.
This is because it’s only after you measure the results that you can weigh your success or failure and work accordingly. Take up social media analytics seriously and stay connected with the changing results regularly to progress each day.
Putting in relevant hashtags is important in almost all of the best social media platforms simply because they appeal to the rising trends and hit the target audiences. Well, this doesn’t mean that you have to overuse your hashtags. One of the top social media tips is using the right amount of hashtags as overusing them will rather make your content look like spam, thereby affecting your overall performance. Also, using the same hashtags for your content again and again won’t even be any good.
Therefore, it is wise to research thoroughly and determine the hashtags for your particular content and insert them in your content and keep repeating the same process on the other contents as well. This way your hashtags would be unique and effective, attracting only the target audiences and work making new social media marketing ideas. Here’s a complete guide to hashtag marketing that can come in handy.
18. Embrace your mistakes
Mistakes are a major part of any task we do. Nothing is flawless and this holds true especially in an ever-changing domain as marketing. However, it won’t be a great choice to ignore your mistakes because if you do that you can never rectify them.
Embracing your marketing mistakes is the best social media tip you can opt for! This will not only help you identify your mistakes and improve on them but will help you keep your brand grounded and always actively working to implement the best marketing practices.
19. Quality always the top priority
The best social media tips for business is to never compromise the quality. Whether it is your content, branding, or social media marketing, you need always to focus on quality work and embrace the best marketing practices. Quality work is a treasured attribute for any brand, which always proves to be benign for the brand. Therefore, quality should be your first priority anytime and anywhere.
Market research is another effective social media marketing strategy to successful marketing campaign. It not only helps in gaining important information about your competitors and revamping your marketing but also helps you steer away from all the mistakes and learn from them.
Marketing is changing its course every single day and research on your market and niches is the only option that will help you and your brand survive in the long run!
21. Connect with your audience (Polls, quizzes, contests etc)
One of the top social media marketing tips is to establishing a good relationship with your audiences. Good branding and marketing involve healthy interactions with your audiences along with keeping them informed about your brand and all the other updates regarding the same.
Gone are the days when interaction with the audiences was just meant via advertising, phone calls, and emails because nowadays we have got the world of social media that has brought the marketers and their audiences in the same loop.
Therefore, connection with the audiences has broadened its spectrum which includes interesting quizzes, polls, and contests that can be conducted every now and then to keep the audiences engaged. Another social media tips for business is adding overwhelming discounts and distributing freebies to the select winners are some other proven ways to motivate your target audiences.
22. Use the right tools
Marketing has been more widespread than it was ever before, especially with the rise of digital marketing. Now, we have more channels for marketing and enhancing audience interactions, but to avail all the advanced facilities and keep track of the latest trends. One of the latest social media tips for businesses is to adopt cutting-edge marketing tools.
As we find with SEO, SMO, and SEM, social media marketing also demands the use of state-of-the-art tools and premium features to steer ahead of your peers. Different tools have different approaches and therefore, you need to read about them before going for them. Sprout Social, Buffer, Hootsuite, Sendible, Quuu, MeetEdgar, Brandwatch, Talkwalker are some of the prominent tools you might try for social media marketing.
The sole motive of marketing is to stay ahead of the competition. This can only happen if you are alert of and updated on best social media marketing strategies , keep a track of the evolving trends, eyeing your competitors all along the time.
You can keep your social media marketing tools handy to stay informed of your marketing progress and regularly visit the relevant websites to take in all the latest updates right as soon as they are released.
24. Time strategy
If you are too slow in a particular segment of marketing, regardless of where you are marketing, you run the risk of falling behind. Therefore, it is wise to form a robust marketing strategy along with a time schedule with strict deadlines to attend. Finishing your marketing within a particular time not only saves you from wasting your precious horse but also helps you set aside some time to ruminate about your brand and what more you can add to it!
Conclusion
A compelling social media marketing strategy is a fundamental aspect of your business plan, and utilizing unusual approaches to associate with your audience is the technique that will further open doors to success. Hope these tips for social media marketing tips helps you in the way.
Measure the effect of your social media marketing and utilize your social media engagement analysis that can tell a lot about your meaningful interactions with your audience and how they connect with your business.
Social media marketing is the connection with your audience with the help of social media platforms to build your brand, increase sales, generate revenue and drive website traffic.
What is included in social media marketing?
There are various tasks involving social media marketing such as writing blogs, publishing articles with great content, engaging your users, analyzing results, and running campaigns.
Why social media is good for marketing?
There are various tasks involving social media marketing such as writing blogs, publishing articles with great content, engaging your users, analyzing results, and running campaigns.
Is social media part of marketing?
Social media is the biggest part of Internet Marketing which is part of Digital marketing. While it refers to specific websites, it can be one of the many mediums that are being used in digital marketing campaigns.
How effective is social media marketing?
By investing only a few hours per week, over 91% of marketers claimed that their social marketing efforts greatly increased their exposure. This is why Social media is one of the most cost-efficient digital marketing methods.
How to market social media?
Inorder to market on social media you should create profiles on multiple platforms, define your marketing goals, post content on a daily basis, Implement automation tools and encourage user-generated content.
An e-way bill is a type of bill generated when interstate or intrastate transportation of goods is involved. The e-way bill is accessible through the government’s e-way bill portal easily. This bill works as a legal transportation permit for goods transported between different states or between districts of states.
The essential and primary requirement of this bill arrives when the cost of goods to be transported exceeds ₹50,000. This is applicable for a person registered under GST. Every person applying for an e-way bill receives a unique e-way bill number.
All the e-way bill systems are primarily designed and controlled by National Informatics Centre, Government of India. This helps in secured and more easy tracking of goods transported across the country.
The e-way bill under the goods and services tax has two components. The first part is called Part-A, and the second one Is called Part-B. The first part focuses on extracting out the details of the goods to be transported.
The components under Part-A include the GSTIN number, the same consignment of goods value, Invoice or the challan number, pin code, or area code of the place where the shipment is to get delivered. The actual reason for the transportation of the goods, transport document number and the HSN number according to the turnover of the individual.
The second part Part-B includes the information and data of the vehicle in which the consignment will be transported. All further guidelines are provided in the e-way bill portal related to the GST.
When is an E-way Bill required?
E-way Bill system
E-way bill is necessary where the value of a consignment to be transported exceeds Rs 50,000. Any registered person may generate and carry the bill even if it exceeds the Rs 50,000 limit. That depends upon the registered person.
In case an unregistered person supplies the goods to a registered person, the registered person must take care of all the procedures and guidelines. The transporters also need to carry this bill if no other person involved in the transportation process has generated the invoice.
If the transportation process is carried out by the supplier or the receiver themselves, the e-way bill must be generated by them. In the case of transporting through a transporter, the e-way bill must be generated by the transporter.
When should an E-way Bill be generated?
E-way Bill system
An E-way bill is generated when the consignment value exceeds the limit of Rs 50,000. This might take place due to several modes of transportation. The methods are an inward movement of goods from an unregistered person, about a supply or reasons other than supply.
But in few cases, the consignment limit, even if it does not exceed the Rs 50,000 mark, needs a bill. This includes interstate transportation of the consignment of goods by principal to the job worker and interstate transportation of consignment or goods related to handicraft items by a dealer exempted from Goods and services tax.
There are several cases in which an e-way bill is not required for the transportation of goods:
Goods or consignments are transported under the customs department.
Goods are transported from one customs department station to another with a customs seal.
Empty cargo containers are transported through any mode Of transportation.
Transportation including non-motor vehicles.
Consignment is transported through railways under any government supervision.
Traverse cargo to and from Nepal and Bhutan.
Transportation of goods under the Ministry of defence.
Goods are exempted from the e-way bill system and requirements.
Documents required for generation of E-way Bills
The transporter ID or the vehicle number through which transportation is being carried out is one requirement. Invoice or challan or supply bills, transport documents including the transporter ID are other necessary documents. These are required documents to generate an e-way bill.
Step 1. Log in to the e-way bill digital portal on its website or application.
Step 2. Click on the ‘generate new’ under ‘the e-way bill’ button.
Step 3. Fill in the details asked.
Step 4. Transaction type- Select inward If recipient and outward if supplier.
Step 5. Select subtype applicable to your transportation.
Step 6. Enter document type, document number, and document date.
Step 7. Enter to/from details and then move on to the item details and fill it.
Step 8. Finally, move to transporter details.
Step 9. Print the e-way bill anytime.
E-way Bill Validity
For over-dimensional cargo, one day is the validity period, for instance, less than 20km. For the next additional kilometers, one more day is extended. For cargo other than the over-dimensional ones, one day is for less than 100 km and extended one day for another 100 km or the remaining part.
It can also be extended. The generator can extend the validity period of such e-way bills within 8 hours after expiry.
The e-way bill system has helped a lot to improve the transportation system in case of goods. Seamless, paperless, and tensionless digital documentation makes this a modern way to transport and track goods across the country.
In upcoming times, surely the loopholes in this system will get fulfilled. A step towards digital India and an innovative approach towards how goods travel in today’s date. This technology will save a lot of time and will bring more success to the logistics industry.
FAQs
What is e way bill?
E-way bill stands for Electronic Way bill required for movement of goods.
Who should Generate an E-way Bill?
E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person.
How is E-way bill generated?
E-way bill is generated from E-way bill portal by filling up the details required.
Inaugurating a business by capitalizing a hefty amount in it, is a tantamount predicament task to auctioning it off to someone you either know or not. Selling a business is not an easy decision made by an entrepreneur, because that business conserved as revenue in his life.
On the other hand, retailing any ilk of businesses depends on the nature and size of the business, whether it is a small or large corporation. Moreover, people won’t acquire any business without seeing a benefit in it. Everything comes at a price.
For instance, in a small business, buyers won’t see many benefactors in it as it is small-scale production and won’t exist for long-term growth. Meanwhile, if you peddle a large business, the very first thing a buyer looks for is- Long-term revenue and growth. So, ascertain the value of your business with the help of nature & size.
You can’t give away your business to someone’s hands without analyzing what comes next, like quotes ‘Think before you Act’; Sketch your future plan with the money you’re gonna get from selling your business.
Here are the things an entrepreneur or a businessman should definitely know before selling the business.
Selling off your business without any second thoughts will drive you to someplace either in a propitious or unpropitious future. Because you have done the diligence in growing your business which made your life better as well as contributed profuse services to people by gaining goodwill from it. But what if you have sold it to any wrong hands, this will bring a bad repute to you shortly.
So, Think twice before auctioning your business. If you are vacillating about selling your business, then don’t do it. Only if you are uncertain in monetary terms or challenging to manage your business, then you can look to market your business to someone who could do it efficaciously.
Self-evaluation is the first step that must be done when you think about selling your Business. What is the reason behind such a big step? There must be a clear-cut answer, which is acceptable by the buyers. Without a valid and clear reason, nobody is going to buy a business.
So before selling a business, you must have a well-structured strategy with the help of specialized personnel to avoid any mistakes you may make.
Why Self Evaluation?
Self Evaluation must give you the answer for the following:
Why am I selling my business?
You must have a point-by-point reason for this big decision at the starting stage itself, which makes it easy for you to stick to a particular area without getting confused at the later stages while communicating with the buyer. This may create a bad impact on the business. The reason also influences the buyers and their decision on the price.
Your decision for selling is solely based on profit value?
If you are in need of money and that is the reason behind the idea of selling, never make a hurry. That will only cause loss for your business sale. Just look for the perfect time and buyer with whom you feel comfortable selling your business.
What is your future plan?
Are you selling the business completely or do you want to remain as a partner or investor in your business? Think and make a clear decision about your association with the business in the future. Buyers must also be given the perfect answer about your vision on this.
Business is free of liabilities?
Business must be free of any liabilities, having which it will be a black mark, which will make an impact on the sales and price for sure. All existing liabilities, including personal, materialistic, money should be cleared even before making your decision to sell the business to the public.
Are all the papers clear?
Make sure that you have clear, complete, and well-structured documentation about the business. All vital records, including financial, marketing, business, and professional, must be included here. These documents make an impact on the buyer, let it be professional and profit documents.
What’s your next act?
It is cited that preparation is the sole key to success, so start prepping in advance in case you don’t want to lose a great opportunity in the near future. Always, compute your next step, because that is gonna manifest your position in the future.
These questions may pop up in your mind while selling your business: ‘What am gonna do after the business is bought? Will it be good for me and profitable in the future? Get ready to answer all these questions before giving away your only source of revenue. Therefore, plan subsequently to your list and set an alternative solution like- finance in some property and get revenue from it or become a partner in a company.
Well, the ending is the new beginning, you have to make up your mind in selling your business after analyzing what’s your next step.
Step 2. Know your Value
Selling your business is the decision you took that may have a numerous reason behind. But before getting into the sales, after evaluating your business, you have to know your value and you have to be clear about what you are looking into. This includes the following criteria:
It is best to evaluate your business first before going to a broker and discussing it because nobody knows your business as you do.
Estimate your business, including the incomes, taxes, earnings, profits, etc.
Know the market and market price.
Your assets and your earnings are more known to you. Try to get the best out of it when you decide to sell it.
Know your Stable status before Selling off
Check out whether you have sufficient money to pay off the expense or meet any other requirement for the future. Selling off your business may credit a large amount of money in your account, but will it be enough? Will it be adequate to survive till my last days? To sell your business in case you want to earn any profit out of it, start a new business or sell it if you are financially unstable to satisfy obligations.
Estimate the Value of your Business
Goodwill is the brand name, which you have earned in the locality of your business. Buyers will definitely pay a tremendous price when your business has a good reputation in the market and automatically accelerates demand. So, fix the purchase price according to the value of your business.
Step 3. Know the Opportunity Cost
Before selling your business, estimate the approx opportunity cost you will get in that. Generally, opportunity cost is the best alternative when a thing is foregone. You have to estimate the value you’re gonna get when you market off the business, ask yourself whether the opportunity cost of your business will be profitable or not? If not, what is the intention of selling it? And if yes, then how much are you gonna be helpful and what are you gonna do with it?
You don’t know the other side excepted acquiring price of your business. If you fix a higher price than the expected one, then the buyer won’t be amenable to acquire the business. So, determine the expected price of your buyer, then bargain for the price you want to sell your business.
Step 5. Know your Buyers
Being a business person, you may already know the trend and the top people in the industry. Professional reasons may be there behind the acquisition of your business. Always try to get the best buyer who believes in investing the worth you put for your company.
Instead of offering negotiable amounts to the buyers, wait for the right one when you get an intuition that the person is perfect to run your business after you.
Step 6. Target Multiple Buyers bidding
Don’t propose for one particular buyer, target various buyers and see how many of them (potential buyers) are inclined to invest money in the range that you have set for your business. Besides, this will augment your company outlook in terms of profitability as well as increase demand for your business in the market.
The business, which you have strengthened for years in good terms should be given to the right hands. If you have ceded your business in good hands, then the long-term growth of reputation is guaranteed for you in the near future.
Unlike, in case the business is rendered to wicked hands, then such a reputation which you have amassed for years before selling it would go trivial. So before trading your business, determine the potential of the buyers in sustaining the business credible.
While drafting a sale agreement, make sure the presence of a lawyer or someone who has pretty much knowledge about the agreement and drafting. Don’t miss out on anything because you could end up paying later. The agreement must be acceptable to both parties and any disputes must be settled before signing the agreement to avoid further confusion in the future. Some of the must-have agreements are:
Asset listings
Bill of Sale
Security agreement
Purchase agreement
The agreements must have the following details, which must be verified at the earliest.
Buyer and Seller Details
The detailed specification of the property
Terms of Payment
Terms and conditions
So are you ready to sell your business? Just take it as simple as it is. You know your business and its internal and external happenings. Make everything clear to the lawyer and the broker or any mediator if there is any. They will help you in drafting the perfect agreement.
Finding the potential buyer is the main aim and may take time. Be patient and wait for the one whom you think is eligible to take over your business. Time and price may not be in your hand. You will have to wait until you get satisfied.
If you find growth in your company after the decision of selling, let it be. Your profit will only increase with a company with great profit. More buyers will get attracted to your business and you will notice a hike in the estimated purchase value.
When a buyer gets interested in your business, they first send an IOI i.e. Indication of Interest. This is a document with their proposed terms and conditions and other details. This document is the primary thing based on which the owner decides whether to move forward with that particular buyer or not. After the IOI, the LOI or Letter of Intent is given to the buyer which includes the terms and data about the company, to give the buyer a complete picture of the business, which helps them to make a decision i.e. whether to move forward with the purchase of a business or not. The next document is the purchase agreement that contains detailed data about financial and legal terms and conditions. This is the final document to be presented during the sale.
Conclusion
Well, like said above, starting and selling a business requires a lot of time and effort. The thought of selling a business befalls when you face a financial crisis to meet business requirements and when you want to sell the business in order to start something new in the future.
The amount you receive in selling your business highly depends on the value of your business – Goodwill. On the other hand, finding a potential buyer who is promised to maintain your business on good terms after surrendering it to the buyer. Therefore; Keep in mind, work in progress to result well in a long-term process, if you are planning to sell off your business in the future at a higher price.
FAQ
What is the rule of thumb for valuing a business?
The common rule of thumb for valuing a business is to calculate your percentage of the annual sales, or the last 12 months of sales/revenues.
Do I have to pay tax if I sell my business?
Yes, you may have to pay tax if you sell your business.
What to do before you sell your business?
Few things you should know before selling your business is to estimate the value of your business, target multiple buyers bidding and Don’t fix the purchase price too high.
The Covid-19 pandemic taught us the importance of oxygen in our life. People were yearning for the most underrated thing, especially during the second wave of the pandemic in India. Somehow that underestimation resulted in hundreds of deaths in the country. The devastating display of what shortage of oxygen can do was seen all over the media during the second wave and honestly, it was heart-wrenching.
Any kind of beginning of a business depends on the demand or potential of that thing in the market. Saving lives is a noble deed, so what’s better than starting a business, which can saves lives, literally. The Covid-19 creates a huge demand for oxygen cylinders in the market, mostly in hospitals. So, starting an oxygen cylinder plant in a country that is in need of it, seems to be a good idea.
Although to follow up on this plan is a lot of work. So, let’s dive into the matter and find out how to start an Oxygen cylinder plant business in India.
“Business is all about solving people’s problems – at a profit.”
Things that are needed for an Oxygen Cylinder Plant
The Covid-19 pandemic may seem the reason but other than that there are other health-related issues that people suffer from, which can only be solved by oxygen cylinders. It can actually bring a ‘breath’ of relief, so the need for it has become more significant now. Following things are required for the business. First and foremost, a proper business plan is required to start with the business. The following things are what is needed.
Proper Training
Before indulging in this business, one needs to learn a lot of things, which include safety procedures. A proper training program will help in understanding the key details, that’ll be an asset in the future. It includes the positives, negatives and the risk that involved in this business.
Investment
Investment is one of the most if not the most important things that is needed for any kind of business. If someone wants to start an oxygen plant, at least ₹30 to ₹35 Lakhs is needed for the setup of the plant, so that it can deliver up to 24 cylinders every day. A proper location is also needed to construct the plant. It is not a small business, so naturally, a heavy amount is needed from the very first.
Manufacturing
To get a general idea, the manufacturer of a cylinder of oxygen should be contacted. They will provide the proper instruction from A to Z. i.e. from the manufacturing of oxygen in the plant to the filling of the cylinder with oxygen.
Some extra equipment is needed for the entire setup of the plant. These equipment’s will help in getting pure oxygen instead of harmful materials, they are:
PLC Control Panel
Vacuum Chambers
Glass Chambers
Injector wells
Solid State generators
Apart from all these, some other machinery are also needed in the cylinders, they are:
Oxygen Mask
Cannula
Pressure Gauge
Flowmeter
Other things to fit the system altogether
Proper installation of every piece of equipment is necessary for the entire plant to avoid the oxygen from getting polluted.
Things To Keep In Mind before starting an Oxygen Cylinder Plant
Just because someone wants to open an oxygen cylinder plant, they can, it’s not that simple. Some additional rules are necessary to be followed:
1. All rules and regulations are to be maintained while dealing with oxygen cylinders and their supply.
2. The oxygen in the gas cylinder has to be pure.
3. It must not contain any toxins or other chemical elements that can be harmful.
4. The oxygen has to be clean and pollution-free.
Transportation of Oxygen Cylinder Plant
The supply of oxygen will be mainly for medical uses and industry purposes. So while transferring them to hospitals or any medical center, special attention needs to be given. Oxygen in the cylinder is kept at high pressure, so the vehicle that’ll be used to transport the cylinders must be careful enough to avoid cylinders colliding with each other. If proper steps are not taken, it can cause an explosion. You should also review the Department of Occupational Safety and Health Administration and Transport Standards before transporting oxygen cylinders.
License Needed For Oxygen Cylinder Plant Business
As it is related to medical business, it surely needs some special permission:
Permission from the local board of the location the business will be set up is needed.
Incorporation Laws of the state must be scrutinized to know the rules of starting a legal and proper business. Also you need to register your business before you start your business.
How to Market your Oxygen Cylinder Plant Business
In any kind of business, marketing is important. Without marketing, a business can never flourish. Although it is a time where oxygen cylinder has huge demand, still marketing is important, to achieve a great number of profits. Some of the methods for advertising are:
Handing out flyers containing information about your oxygen plant to the people.
Contacting local media to get their presence known among the targeted customers.
To start an oxygen cylinder manufacturing plant in recent times, can be beneficial as the second wave of the Covid-19 leads to a shortage of oxygen all over the country. It is a good time to provide quality products to the people in need. A business that can save people while gaining profits for itself is surely an interesting and better option than just sitting and watching people suffer. One just needs to take a brave step and follow all the rules that can lead to a safe start of a business. It will do the noble job of saving lives and also will help in earning millions.
FAQ
Is Investing on an Oxygen Cylinder Plant profitable in India?
Yes, Investing in an oxygen cylinder plant can be quite profitable as the demand for oxygen cylinders is not ending soon.
What is the Cost of an Oxygen Cylinder?
The minimum cost of a 10.2 Litre of oxygen cylinder is ₹4500 and the maximum is ₹6500.
Which Company makes Oxygen Cylinders In India?
National Oxygen Limited, Axcel Gases, and Swastik Synergy Engineering Private Limited are some of the top oxygen manufacturers in India.
Shubham Kumar
