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Can I Start a Business from Home with a Small Investment?

Nripen

Nripen Bhatt  |7 Answers  |Ask -

Start-Up Expert - Answered on Nov 10, 2024

Nripen is the founding director of Rafts and Rivers LLC, a Texas-based global higher education think tank.
He has 25 years of business consulting experience and is currently mentoring over 100 start-ups, helping students turn their ideas into successful businesses.
Through his company, Nripen is supporting and managing 107 incubation centres and accelerators located within state and central universities in India.
An alumnus of the Indian Institute of Management, Calcutta, Nripen is an expert in fintech, edtech, food technology, retail, B2B, product and service launch strategies, app development and UI development.... more
K Question by K on Feb 22, 2024Hindi
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Career

Pvt. Job for the last 30 years. No investment . No property. Living in parental home. Now planning to quit the job ASAP. Need to start business asap from home with small investment max. upto 3 L. No family member in support. Advise needed immediately. Thanks with best wishes

Ans: Dear K,
A lot of business can be started with the capital of Rs.3 Lacs but have you worked on what do you want to do, what is your expertise, how would you deliver, what is the location of your business, who will be your customers.
You are sounding highly dissatisfied with your job, you need a proper counselling, do not take any career affecting step in haste. Take proper advise by elaborating your present situation with the background of the problem.

Regards
Career

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Ramalingam

Ramalingam Kalirajan  |7209 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Money
Hi, I am 42 yrs old and have 21 years of experience in sales and marketing. I have approx. 60 lacs of savings including PF and 10 lacs equity portfolio and 1 cr of real estate assets. I want to quit my job and start business. I had done some home work also in some products. I have 15 lacs of medical policy. 30 lacs of term plan and approx. 7 lacs of traditional plan of insurance. How can I go ahead. Pls advise
Ans: Your 21 years of experience in sales and marketing have led you to build a solid financial foundation. You have Rs. 60 lakhs in savings, Rs. 10 lakhs in equity, and Rs. 1 crore in real estate assets. Additionally, you have a medical policy worth Rs. 15 lakhs, a term plan worth Rs. 30 lakhs, and a traditional insurance plan worth Rs. 7 lakhs. This is a strong base to start from as you contemplate beginning your own business.

Evaluating Your Decision to Start a Business
Starting a business is a significant decision that requires thorough evaluation. Your experience in sales and marketing is a great advantage, and it's crucial to leverage this as you transition into entrepreneurship. Ensure your business plan is comprehensive, covering market research, product demand, competition, and financial projections.

Ensuring Financial Security
Before you quit your job, it’s important to secure your and your family’s financial future. Here are a few steps to ensure financial security:

Building an Emergency Fund
Ensure you have an emergency fund that covers at least 12 months of living expenses. This fund will act as a safety net in case your business takes longer to generate profits.

Reviewing Insurance Coverage
Your medical policy of Rs. 15 lakhs and term plan of Rs. 30 lakhs are essential for protecting your family. Consider increasing your term plan coverage to match your current income and liabilities.

Evaluating Traditional Insurance Plan
The traditional insurance plan of Rs. 7 lakhs may not provide the best returns. Consider surrendering it and reinvesting the proceeds into mutual funds for better growth potential.

Planning Your Business Finances
Starting a business requires careful financial planning. Here are steps to help you get started:

Creating a Business Budget
Prepare a detailed budget for your business. Include initial setup costs, monthly operating expenses, marketing costs, and other miscellaneous expenses. This budget will help you understand your financial needs and plan accordingly.

Securing Initial Capital
You have Rs. 60 lakhs in savings, which is a good starting point. Decide how much of this amount you are willing to invest in your business. Keep a portion of your savings intact as a safety net.

Exploring Funding Options
Consider exploring funding options such as business loans, angel investors, or venture capital if your business requires additional capital. Ensure you understand the terms and conditions of these funding options.

Diversifying Investments
While starting a business, it's essential to continue growing your personal wealth. Diversifying your investments will help you achieve this. Here are some options to consider:

Mutual Funds
Mutual funds are an excellent way to diversify your investments. They offer the potential for higher returns through professional management. Consider investing in a mix of equity and debt funds based on your risk appetite.

Types of Mutual Funds
Equity Funds: Invest primarily in stocks. Suitable for long-term goals due to their growth potential.

Debt Funds: Invest in fixed-income securities. Suitable for short to medium-term goals with lower risk.

Hybrid Funds: Combine equity and debt investments. Provide a balance of risk and return.

Benefits of Mutual Funds
Professional Management: Funds are managed by experienced fund managers.

Diversification: Spread your investments across different securities, reducing risk.

Liquidity: Easy to buy and sell units as per your needs.

Power of Compounding: Long-term investments can grow significantly through compounding returns.

Risks of Mutual Funds
Market Risk: Returns depend on market performance.

Credit Risk: Risk of issuer default in debt funds.

Interest Rate Risk: Changes in interest rates can affect debt fund returns.

Power of Compounding
Investing in mutual funds for the long term allows you to benefit from compounding. Reinvesting your returns helps your investments grow exponentially over time. This is a powerful tool for wealth creation.

Strategic Investment Approach
Here's a strategic approach to investing in mutual funds:

Asset Allocation
Equity Allocation: Given your moderate risk appetite, allocate 60-70% of your investments in equity funds.

Debt Allocation: Allocate 20-30% in debt funds for stability.

Hybrid Funds: Allocate the remaining 10-20% in hybrid funds for a balanced approach.

Regular Investments
Set up systematic investment plans (SIPs) to invest regularly in mutual funds. This approach helps in averaging out the cost of investments and reduces market timing risk.

Review and Rebalance
Regularly review your investment portfolio. Rebalance your portfolio to maintain your desired asset allocation and adjust based on market conditions.

Managing Business and Personal Finances
Balancing your business and personal finances is crucial. Here are some tips to help you manage both effectively:

Separate Business and Personal Finances
Keep your business and personal finances separate. Open a separate bank account for your business transactions. This will help you track your business expenses and income more efficiently.

Budgeting for Personal Expenses
Create a budget for your personal expenses. Ensure that your personal expenses are covered by your emergency fund and any income generated from your investments.

Monitoring Cash Flow
Regularly monitor your business and personal cash flow. This will help you identify any potential financial issues early and take corrective action.

Financial Goals
Set clear financial goals for your business and personal life. This will help you stay focused and motivated. Review your goals periodically and adjust them based on your progress.

Seeking Professional Advice
While you have done commendable homework, seeking professional advice can provide valuable insights. A Certified Financial Planner (CFP) can help you with detailed financial planning and investment strategies tailored to your goals.

Final Insights
Your solid financial foundation and prudent planning are commendable as you embark on your entrepreneurial journey. Balance your business ambitions with personal financial security. Diversify your investments, keep your emergency fund intact, and regularly review your financial goals. Your experience in sales and marketing will be invaluable as you start your business. Wishing you the best of luck!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Nandita

Dr Nandita Palshetkar  |23 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Dec 06, 2024

Health
I am 51. I have been diagnosed to have multiple fibroids. 3 Months ago, my bleeding did not stop and was told it was due to my fibroids and had to be given hormones treatment to stop. But, since then I had 2 normal periods. Right now, I am not taking any medicines. What further action I need to take for my fibroids issue. Please advise.
Ans: Hello
You are 51 with fibroids, with menorrhagia
Firstly,
1) We Need to get usg 3 D pelvis done with fibroid mapping.
2) Blood test to see for CBC, tsh , prolactin, tsh level
Since you are 51 and if your hemoglobin is maintained and bleeding controlled, we can wait and observe with regular usg monitoring for fibroids
Since you are 51, there are chances of you being in perimenopause and menopause, so there are chances fibroids reduce in size, and you become asymptomatic because post menopause estrogen level drops and fibroids are estrogen dependent.
If wish to go for conservative management:
a) Cyclic Oc pills or continuous Oc pills to create pseudoamennorhoea which will control dysmenorrhea and bleeding
B) Lupron Depot is a synthetic hormone that reduces the body's production of estrogen and progesterone, causing a temporary menopause-like state. This can shrink fibroids, stop menstrual periods, and improve anemia.
Uterine fibroid embolization:
This minimally invasive procedure involves injecting small particles into the uterine artery to block blood flow to the fibroids.
Radiofrequency ablation (RFA):
This treatment uses microwave energy to treat smaller fibroids in people who haven't reached menopause.
Progestin-releasing intrauterine device (IUD)
This option is for women with fibroids that don't distort the uterus. It can reduce heavy bleeding but doesn't treat the fibroids.
But if symptoms like
Heavy periods
Pain
Frequent periods
Drop in hemoglobin
Disturbed quality of life
Then best option will be removal of uterus keeping ovaries intact if ovaries are healthy to maintain hormones.

...Read more

Anu

Anu Krishna  |1367 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 06, 2024

Asked by Anonymous - Dec 04, 2024Hindi
Relationship
My in-laws family are having very good relations with our next door neighbour from the time of grandparents of my husband. I know them (uncle, aunty, their son, daughter in law & a kid) from 7 years (from my marriage). Uncle (26 years elder than me) favours me a lot. I requested for my placement in the company he is working in. I got the job there just after 1 year of my marriage in the company by the help of uncle. Uncle was in very senior position in the company. He was handling both audit & sales department. I wanted to work under him to have great experience. Company accepted my request. But most of the time, he was staying outside the city. Company arrange hotel for him as well as for a male colleague for back support him outside city. I requested the company to let me travel with him outside, but company was not ready to give separate room for me because of cost cutting. Even if I pay my expenses for separate room, it will be over budget for me if I spend so much frequently. So, I asked for permission from my husband & company to let me share the room (2 separate beds) with him. My husband believe on him more than anyone else. Fortunately, company & husband permitted me to share the room (2 separate beds) with him. Since then onwards, I was travelling with him outside to many cities but I was sharing room with him always. Uncle was taking care of me just like his own daughter. He was scolding me if I wear any inappropriate clothes by mistake or if I do anything wrong. He was calling me daughter instead of my name. I feel safe & comfortable with him. He is committed to work in the same company till his death. I committed the same. Now, from 1 year, there are changes in his behaviour. He has started calling me by my name instead of ‘daughter’. He has stopped saying anything if I wear inappropriate clothes. And the biggest thing is he has started flirting with me. Not the weird flirt, but a healthy flirt. He is complimenting on my looks, my dressing sense, my personality, etc. To be honest, I am still feeling comfortable & safe with him. I am still enjoying my official life by working under him. Sometimes I just smile & sometimes I flirt back (with no wrong intentions). He never touched me with any wrong intentions. My curiosity is why he changed after so many years ?? Nothing is changed in his personal life. His family is well & good. So, what made him change towards me ?? I have not told about this change to my husband otherwise he will take tension unnecessary. I believe that it’s ok to hide few such things if we are not having any wrong intentions. Also want to know if I should be concern about it or not ?? I am never going to take any step against my husband. I love my husband truly, but I don’t know what’s going on in the mind of my uncle ?? I want to know your view point in this situation.
Ans: Dear Anonymous,
It doesn't take a lot of smartness to figure out that this 'Uncle' has begun to have some 'feelings' for you...
Oh and the decision to stay in the same room and then justifying as that he takes care of you like his own daughter. You do realize that once the daughter grows, the fathers also have a sense of respecting the boundaries of his own daughter, right?
And kindly explain this to yourself: There is another male colleague traveling; why can't he share the room with 'Uncle' and you as a woman be given a separate room?
Please come to your senses before your company starts talking and it will not just get ugly at the workplace but also the place where you stay. PLUS your family is going to have a hard time processing what went wrong with their friendly neighbors.
Be smart, be wise and kindly put an end to this 'uncle-daughter' labels and understand that he is most likely beginning to grow feelings and just out of respect for your in-laws is being in his place. And your 'uncle' is never going to come and tell you this...these signals that you have mentioned are enough...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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