Tag Archives: Business

What is Importance Of Cost Management Training?

There are some categories of business owners out there who did not see any need to engage the staff in any form of training that targets waste reduction. To these set of business executives, they believe things will naturally fall in line. There are some others who are of the belief that they only need partial training of their staff in some areas of their business while other areas do not need the involvement of cost management training. We are going to look at the importance of making sure that every member of staff undergoes this course for the overall interest of the business endeavor.

* Effective Management Of Cost

The overall target of any business set up is to maximize profits and reduce the costs. This course will help in generating a huge amount of savings year in year out for businesses that avail its staffs the benefits of undergoing the course. It will help companies the opportunity to effectively use their resources to maximum benefits. It will help determine the cost of different services and products. It helps an organization to know if a supplier’s quotation is reasonable or not. It helps to facilitate improvements both within the organization as well as with the suppliers.

* It Helps In Measuring Performance

With an effective cost management of the operations of any business concern, it will become relatively easy to measure the performance of the business through the results of the finances posted. The two major factors that make up the value of the firm can be determined; they are the Risk and Profitability factors. Financial decisions which increase risks will be avoided while decisions that encourage profitability will be embraced. Good financial decisions are therefore made at the end of the day.

* Better Use Of Resources

When an organization knows the cost implications involved in the business process, they will behave privileged information that will enable them to make decisions that will ensure that they avoid pitfalls that lead to wastages. Many companies who are not versed in this process of this will definitely find themselves losing out at the end of the day. When you are able to manage the resources effectively well, you will be able to put such to judicious use and hence maximize the profits at the end of the day. Only companies whose staff has the benefits of this type of training from a reputable service provider like Zoe Talent Solutions can be in a position to make the best use of available resources.

The Handwriting So Far

You can reason from the points so far made that it is glaring that this training is highly important if a business is expected to get the best benefits. You need the experts to carry out the training exercise if results are to be achieved. With due respects to the service providers around in this notch, it is very glaring that every company needs a service provider that stands out in the midst of the rest like a star in the distant horizon. They can be relied upon for total and holistic solutions that will give any business the best benefits ever.

We are not yet done with the benefits that you will derive from carrying out the training for the benefit of your business. Take a look at the following as well:

* Project Cost Management

When you allow the experts to implement an effective management on cost for your firm, you will be in control by being in a position to keep your budget under that control. There are cases of businesses that overshoot their budget estimates; in such cases, there will be a problem over the effective completion of such projects.

It is best to have a detailed analysis of what the cost is involved before you move into the business execution proper to be able to sail through without any form of a hitch. There are three key components involved. They are:

* The Project Cost

You need a detailed estimate of the cost of each of the units that make up the project

* Your Budget

When you have known the units that make up the project; you will be required to carry out a cost of what is involved in each of the units which will form the baseline for the project. The approved baseline is the budget for the project.

Cost Control

When you have gotten to the execution stage of your project; there is the need for effective control of the project. This can only be done by the experts.

Final Take

You need to carry out this process if you want the best for your business. For the best service provider you must be on the lookout for experience and the one with the best portfolio or you can click here to visit our recommended business management website.

7 fatal mistakes which may end up your business career

Some people manage to build a career quickly, climbing up the career ladder, while others, having good skills and education, can earn a penny without any perspectives. Keep in mind that it is not a university, when you can type “MBA application essay”, visit any site like this – https://admission-essay.com/mba-application-essay and solve your problem. To gain success, you should follow some pieces of advice:

  1. Pressure on the pity.

Unfortunately, many employees of companies have resorted to this technique, when it comes to some of their blunders. Employers should not be interested in the reasons for your sleeplessness during the all night and in the number of children, whom you need to feed. All he wants from you is a precise performance of your tasks. If you make a mistake at work, you need to accept it and fix it and do not make any excuses. Of course, your chief can understand your situation, but tell him two or three plaintive stories and you can forget about career development in the near future.

  1. I do not know how to do.

If there is a task that requires skills from you in which you are not sure, do not give up right away. Say that you may need more information, ask clarifying questions, but you should not abandon your responsibilities. If the manager thinks that you can carry out these tasks, he is right. After completing this task, you will increase your chances of promoting, and even if it does not happen all at once, you get a new valuable skill.

  1. Lack of loyalty.

There is a fashion among employees to criticize the leadership or any aspects of the company. It is not necessary to maintain the very active general mood. Managers will not promote the staff who constantly criticizes this company even if all of them are geniuses.

  1. Wrong image.

Many companies do not have a strict dress code but you should not abuse this right. The assistant, who wears jeans and a sweater, has fewer chances to get a promotion to a junior specialist, than the one that adheres to a business style. Companies are often judged by the look of its employees, and those positions that require communication with partners will get only those who look quite presentable.

  1. Indiscipline.

The habit of being late to work or missing the deadlines, spoils the image of the employee in the eyes of the leadership and also interfere career growth.  Even the order on the table is sometimes important because some managers associate the mess on the table with the mess in the head.

  1. The absence of apparent desire to grow.

Sometimes employees do not show that they are interested in a future career. They are not interested in the work of the company and they are not trying to acquire new skills. In this way, they lose the ability to express themselves.

  1. Excessive shyness.

If the company opens an interesting vacancy and you are interested in this position, it is a good idea to be active. You should speak with your executive officer, who is looking for an employee or with the personnel department. You have higher chances to get this position because you are a better candidate than an outsider, who do not know the features of the company.

Despite these seven main rules, there are some additional, which will be useful, too. So, do not be lazy. It sounds a little bit trite, but laziness is often the main reason, which does not allow the employee to move up the career ladder. If he performs all of the tasks grudgingly, he is not appropriate for a higher position, which requires hard work. You should also maintain good relationships with colleagues, because the decision about promotion does not depend on the executive officer. He can ask someone from the staff whether there is a decent candidate. Any big company is a kind of a big village where everyone knows all about each other. The phrase “we have such a good girl, I’m sorry she is so long in the same position” in the smoking room may be really important. Finally, do not forget to show how carefully you work. Quite often noticeable people are not those who work a lot, but those who work noticeably. Do not forget to carry out all your tasks in a timely manner, to take the necessary reports and fill them in details.

Therefore, these tips are quite simple and if you avoid these mistakes in your work, your promotion will not take a long time and you will not be obligated to do something supernatural to gain success.

15 Best Business Ideas with Zero Investment

In today’s economic scenario, there is a quite lesser chance of getting a job. But still people study abroad and approach a higher degree of education for their bright future. But there are people or professionals who want to make a job for their own self. And for that there are many business ideas with zero investment. Professionals with confidence and passion can take up small business ideas with zero investment.

Top 15 Business Ideas with Zero Investment

To make a difference in this world a person or a professional need to make a difference and take risks as well. Therefore, to make those tough choices one need to step forward and decide. Here are some of the choices and great business ideas with zero investment.

1) Recruitment Firm

For a start up a person with with good networking skill and communication can build a recruitment firm. A recruitment firm where he or she can contact people who are suitable for different types of job in their own specialty and skill. It is one of the major start up business ideas with zero investment in India because of the huge manpower availability.

2) Web Developer

Skilled and professional web developer and website builder can start one of the website for their business or for others as well.

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3) Event Organizer

Some people have their skill to organize a party. And arranging all types of elements for  an event or a party is not an easy thing, but people with talent can be a fortune out of it.

4) Freelancing

A freelancing is one of the new business ideas with zero investment. These freelancing provides a professional advertise their skill and expertise in a task.

5) Interior Designer

There are people with skill and talent when it comes to interior designing. It’s something what they are made for. And for people with right talent it turns itself in a positive change.

6) Tailoring

One of the common business idea which is mostly pursued by the women and men. But most of the households depend on such business ideas which can be less risky for people on the edge.

7) Tuition Class

As mentioned above, another common business idea which definitely delivers reasonable income. Moreover, with the help of education and smartness people even can make money out of tuition services also.

Also Read : 

8) Wedding Planner

Being a wedding planner is not a small thing. Handling a whole wedding arrangement, and calling all the decisions along with responsibility requires people with leadership quality.

9) Real Estate

Working in the real estate is more likely to receive a good commission and respect in the field. And a skilled professional can earn a great amount of income with real estate with better ideas to sell properties.

10) Insurance Agents

The work of insurance agents is same as real estates. The only difference is that they sell property and insurance agents sell policies.

11) Content Writing

Writing is something which came out before, but content writing is one of the innovative business ideas with zero investment. Content writer, are more often fall in the category of freelancers.

12) Dancing Classes

Professional with dancing abilities can open their dance class and invest their talent for a long run.

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13) Career Counseling

The career counseling work is similar to the work of recruitment firm. But the difference is that they help people in making a right decision while choosing their career options.

14) Mobile Food Shop

It is one of the best business ideas with zero investment. And this business idea definitely works with a tasty food and service.

15) Customized Jewelry Making

People even design some jewelry using crafts and paper. And because of constant change in the fashion industry people hire professionals with suck skills.

Therefore, all these business ideas with zero investment can deliver great margin of profit, if the business is structured and executed perfectly.

To conduct business within India, it is always advised to use a PAN card.

20 Business Ideas after Retirement in India

Post retirement are the golden years of your life which you have been patiently working towards. Finally, the time has come when you can sit back with a cup of tea and a really good book and enjoy your leisure time- guilt free. However, there are a few workaholics out there who simply cannot stand the idea of being idle. Some might even like to make some extra pocket money after retirement.

Top 20 Business Ideas after Retirement in India

Here are 20 business ideas after retirement that you can try out:

1) Blogging

Some of us out there have a natural flair for writing. Start your own blog, or join a freelance company which allows you to write at your own time. Not only will it help exercise your mind, you can also earn a substantial amount of money out of this business venture.

2) Rent out Property

When you finally have enough funds to do so, buy some property and rent it out. Use your retirement package to help fund the mortgage, and earn pure passive income with this business idea after retirement in India.

3) Teaching

What best way to make indefinite use of your skills than going into the teaching line? you could join some place, or even tutor kids from home on any subject of your choice; be it music, art, math, English, etc.

Recommended Read : 

4) Write e-books

With the world slowly becoming more and more technologically advanced, e-books have become extremely common. Use your expertise to write an e-book and sell it over the internet for some fame as well as money.

5) Consulting

Training new and experienced staff of a company in your line of expertise could be the best business idea after retirement for you to venture into.

6) Sales

Get online and sell products which you own, or which are supplied to you by a business. You can either produce these products at home for a small cost price, or work on commission basis for another business. Either way, it can turn out to be a good small business idea after retirement.

7) Fine Arts

Turn your creativity into a business after retirement. If you have always loved to have painting, drawing, pottery, sewing or making hand made products as a hobby, now is the chance for you to turn it into a business after retirement. Sell your hand made stuff online or through sales at exhibitions.

8) Food business

Some of us have a natural flair for cooking. You can turn your special recipe into a commercial adventure by involving yourself into the food business after retirement in India. 

Also Read : 

9) Work for your former employer

Many companies offer this option to retirees where you can opt to work for your previous organization, but from the comfort of your own home and timings. You can continue doing the job you have become so skilled at- from home.

10) Retail Business

Have some antiques which you want to sell off? What better place to do this than the internet. You can also put up your antiques for sale at auctions and exhibitions.

11) Childcare Services

For those individuals who simply cannot have enough of being around kids, getting into the childcare business can be a good business idea after retirement. You can get help from your family and work from home, while doing one of the most heart-warming jobs in the world.

12) Call Centre Jobs

While many companies require you to work at their office, you can also work from home at a call centre job after retirement.

13) Tour leader

Enjoy travelling after your retirement with your expenses taken care of by signing up as a tour guide. You can opt for a local, nation or even international tour leader business.

14) Garden Maintenance

For all those out there who have a green thumb, getting into the gardening business can be rewarding and a good way to spend your time after retirement. Make some money doing what you love and making a difference to people’s lives.

Also See : Top 10 Business Ideas for Beginners

15) Tax Services

If you are one of those individuals who enjoy doing taxes, you could find tax servicing to be a lucrative business idea after retirement.

16) Pet Sitting

For all the animal lovers out there, there is literally no better job after retirement than pet sitting your favourite animals for a small amount of money.

17) Bed and Breakfast

If you have a large enough place, you can start your own bed and breakfast business after retirement, provided you can provide the breakfast as well!

18) Professional Speaking

A venture with endless potentials, become a professional speaker after retirement if you have good communication skills and are a good orator.

19) Translator

If you are bilingual, an online translator can be the best business idea after retirement for you.

20) Florist

Anyone with an eye for beauty and love for horticulture can turn this passion into a business after retirement.

Top 20 Business Ideas for Women at Home in India 

Considering India to be the largest demographic in the world, a women entrepreneur is capable of running a large firm along with managing family and home. Women surpass men in understanding domain, general expertise, flexibility and risk taking. Here we provide top 20 business ideas for women at home in India.

List Of 20 Business Ideas For Women at Home

There is a vast scope for women in India to startup a firm, either small or large, especially if they are educated and understand how things work. Given here are some of the best business ideas for women at home.

1) Affiliate Marketing

Though, tough to understand, this startup gives easy returns. The owner can affiliate to a big e-store and divert its customers to them, earning commission.

2) Boutique Store

With changing fashion trends, it is easier to start a boutique store from home. Buying stocks at wholesale rate is required, making it a hot business idea for women in India.

3) Book Keeping

Accounting services including e-filing, sales tax, service tax, etc. can be provided. This home based business is ideal for women who are well-versed with the commercial fundaments.

4) Blogging

Blogging is a powerful way of communicating information online for easy and quick money. Hence, it makes up one of the best business ideas for women at home.

Also Read :

5) Beauty Parlour

This type of business needs proper knowledge and skills. Starting your own parlor at home is an amazing idea to make easy money.

6) Training For Computer Courses

A computer training institute can be started from home. This requires a very low investment and time devotion. It gives good value for the input.

7) Craft Making

Hobbies like candle making, basket weaving or making decorative pieces using plaster of Paris, can become one such own business ideas for women in India.

Recommended Read : 10 Most Profitable Small Scale Business Ideas

8) Biscuit Making

Being yet another skilled work that cannot be done by just anyone, it becomes an awesome business idea for women at home. Maintaining the quality is a must.

9) Baby Sitting and Day Care

Working women who cannot stay at home to look after their young ones look out for centers that can do so. This business can be initiated on a very small scale. Proper care and security should be maintained.

10) Glass Etching

This is a small business idea for women in India. Females with a creative mind and hands-on skills can start doing the business from home location with a very low capital.

11) Catering and Food Delivery

Stay at home women who cook well can try their hand in the catering business. From tiffin service to small events like birthday parties, this business has a great potential.

Also See :

12) Tuition Classes

Women, who have expertise in any subjects, can impart academic support to school going children. This startup requires almost no cost if initiated from home.

13) Virtual Assistance

A virtual assistant can check and organize emails, to-do lists and schedules without being physically present in front of the client. This very own business idea for women can kick start with a few requirements.

14) Social Media Profile Consulting

All high profile people and business have accounts and pages over Twitter, Facebook, LinkedIn and so on. You can help their business grow by managing social networking profiles. This is an easy startup idea for all women.

15) Processed Food Selling

Many women have the knack of making papads, jams, chutneys, pickles and sauces at home. If a steady quality can be maintained, this task can be taken upto a startup scale. The initial investment is quite low.

16) Home Fitness Centre

This is a good business idea for women who can train other people to be fit. Classes like aerobics and Zumba can be started. This startup can be held at the home location.

17) Organic Gardening

This greenhouse project can be built up with a low initial investment, if there is enough space at home. The turnover against investment is good, as sales are easy.

18) Designer Lace Making

Knitting laces is an easy business idea for women at home, having the required skill set. Later on a commercial lace making machine can also be set up for business expansion.

19) Translating

Knowing a special national or a foreign language can make you earn money by setting up your own translating business from home. Hooking clients is very easy.

20) Resume Writing

If you were in the corporate sector, initially and have been at home lately, use your skills to write polished resumes for others. Making money is easy and quick.

Conclusion :

In this digital era, it is necessary to make utmost use of technology for easy handling of the business as well as from a marketing point of view. These top 20 business ideas for women at home in India can empower women to gain control of their own finances. 

Top 10 Business Ideas for Beginners in India

For beginners, it can be a challenge to finance a new startup. It should be kept in mind that these business ventures made by freshers should be something that does not require a huge capital input, initially. You must have heard how many big businessmen started with only a mere amount of finance. In this article we list down top 10 business ideas for beginners in India.

10 Easy Startup Ideas For Beginners In India

Starting off with a small investment protects the first-timers from major monetary risks. Other things like resource optimization, capital expenditure planning, creativity and skill sets, sponsorship and product identification in market play a huge role for best business ideas for beginners. Here, you can go through a few startup options.

1) Advertising

Starting up a digital marketing agency requires a small set up and low investment. Online marketing consulting can also be done for other businesses. Promotional product sales, outdoor ad consultancy and many more options come under this niche. Hence, advertising is the best business idea for beginners in India.

Also Read : 10 Best Online Business Ideas with Low Investment

2) Small Courier and Delivery Services

This type of easy business idea for beginners in India, are at a boom. Tie-ups with a few clients and employing few fresher initially will do the deed. With around INR 1 lakh – INR 10 lakhs investment, you can get healthy returns in 6-8 months.

3) Accountant

If you have studied commerce and accounting, your services are much needed by other firms and companies. It is easy to build your own base for own accounting startup. This type of business can be done from your home location and even online.

4) Home Cleaning Service

This startup may require employment from the beginning, but it is considered as an easy business idea for beginners. Here, investment and risk factor, both is lowkey. With a few equipment and quality products the start-off can be handled. Proper marketing is necessary.

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5) Web Designing And Development

This creative business idea for beginners requires specific skills. But, if you are a thorough web developer, it is easy to convert your talent into a startup and make good amount of money. Students who are well versed with web designing and development should not lose this amazing business opportunity.

6) Event Planning and Management

For people with strong communication and managerial skills, planning events is a lucrative option. Weddings, parties and other events can be easily organized with low inputs. Timely delivery of services and keeping promises is a must.

7) Car Washing and Detailing

This service doesn’t always require high-end equipment or a large monetary input. This is one of the most superb business ideas for beginners in India, as it can be set up at any location which is in reach of your clients.

Also Read : 

8) Landscape Photography

Focusing on observations and creative talent, this art business idea for beginners is an easy option for introverts. High quality photography equipment and cameras are required in the beginning. Selling of photographs can be done online.

9) Online Tutoring

Starting up an online tutoring firm on your own is a great method of providing academic assistance. The communication can be done through the internet and phones. This makes it an easy business idea for beginners from home.

10) Interior Decoration

Another perfect business idea for beginners can be, decorating office spaces and homes. Buying the right furniture, placing the correct artifacts and even choosing the color of the walls, all comes under this easy to begin startup option.

These were the top 10 business ideas for beginners in India. There are many aspects on which the selection of your startup depends. It is very important to put in initial effort into the business, irrespective of the option you choose.

Always remember, to engage in business or financial transactions in India, it is important to apply for a PAN card.

Top 10 Online Business Ideas in India with Low Investment

Today, retired professionals, women at home and students are looking out to earn extra income which does not ask for much investment. Though, searching for such an opportunity seems like a tedious task, many online options have surged up in the market which can give you easy returns by just a small investment. In this article we show you top 10 online business ideas in India with low investment.

10 Amazing Online Business Startups In India That Don’t Cost You Much

It is all over the news channels, newspapers and media, how people are able to earn millions and billions from just an online business. So, if you are looking for a smart yet, easy way to even, switch your career, think about an online startup to make easy money. We have sorted some of the best options for you.

1) Be a Blogger

The best online business idea for students is blogging. You create a website for writing up daily experiences, travelling, passion, hacks and numerous interesting topics. When these websites are visited, you make money.

Also Read :

2) Quick Money Through Freelancing

Freelancing is one of the best online business ideas from home. All you need is a PC and your skills at writing. The startup can initially return upto INR 30,000 every month and can go higher depending on the business. This also proves to be a great online business idea for moms at home.

3) Your Own YouTube Channel

Creating a YouTube channel for review of gadgets or recipes and various other stuffs is currently the best online business idea in Delhi and Mumbai. Publishing of videos can be done on a regular basis. Again, earnings depend on the number of views.

4) E-Selling

If you want a simple online business idea that is easy to handle, then nothing is better than online selling. It is not necessary to have your own products. Products can be bought from local manufacturers and sold.

5) Domain Flipping

The flipping works when the domains are bought at a cheap price and sold for a good amount of money. This can be a good business idea at home. The only thing to be looked for is the quality of the domain.

Recommended Read : Top 30 Business Ideas with Low Investment

6) Become A Virtual Assistant

Virtual assistance is one of the best online business ideas for women. You can be a personal assistant to anyone without being physically present for your client.

7) Affiliate Marketing

This is a popular online business idea without investment. The investor needs to sign up with any affiliate company to promote or sell its products. Though it is tough, but the income potential is very high.

8) Forex Trader

If you have a good understanding of how the Forex works, there is no better money making business than Forex trading. It is a hot online business idea for students and requires nearly, no investment.

Also Read : 

9) Training And Consulting

With expertise in a particular field, online consulting and training can be provided to people who need it. Things like online tutorials, nutrition, finance and job placements can be handled online.

10) Social Media Profile Manager

There are a lot of small businesses and high profile people who have individual pages over social media, but do not have the timeto manage or update them. Thus, managing such profiles and keeping their followers updated, becomes an easy online business idea with no investment at all.

Final Words

There can be many online business ideas suitable for different types of people. The top 10 online business ideas in India with low investment listed above can make a good deal of money, provided they have the required skills and also, willingness to put in appropriate effort and time. 

10 Most Profitable Small Scale Business Ideas

These days more and more people are getting into entrepreneurship. Especially youngsters want to be their own boss, have their own work timings and above all make handsome money by their own work. With our growing economy there are many new business opportunities coming up. Some of them need huge investments while some can be started with a few thousand rupees. Earlier we have also discussed about 30 Business Ideas with low investment. In this post we will list down 10 Most Profitable Small Scale Business Ideas. Please note that the investment required can be more or even less depending upon the location where you start the business. Also, quite obviously the profit will vary from person to person.

10 Most Profitable Small Scale Business Ideas

Let’s that with a well known business idea i.e., a food joint.

1) Food Joint

You must have noticed that some small food joints are full of customers. This is because the need for food will never end. Rent a small place nearby some offices and you will see how your business flourishes. Employees, especially bachelors have to depend on outside food for filling up their tummy. You can cash in on their needs. You just need a small place to rent, 1-2 cooks and groceries for this business.

2) Tuition Classes

If you are well educated and specialize in one or more than one subjects then you can go for this business. This requires virtually no investment as you can start tuition classes from the comfort of your home. Though printing and distributing pamphlets could help you scale up your business.

Also Read : 

3) Blogging

You can write on something that you have knowledge of. The investment required is just a few thousand rupees for domain and hosting space. Of course you need a computer and an internet connection. Make sure to do a thorough research before starting professional blogging.

4) Content Writing

Become a freelance content writer and start earning. There are many bloggers, companies, websites which are always on the lookout for great content. If you can write well, make it your profession.  One can make a good amount of money with content writing

5) Photography

If you are passionate about photography or willing to learn it then you need just a good camera. You can become an independent photographer. Pre wedding shoots, wedding photography are very common these days.  Slowly you can scale your business and then employ people as the need arises.

Also Read : 

6) Social Media Manager

We all know how powerful social media is. Startups, individuals and even celebrities require the services of a social media expert to handle their social media accounts to boost their popularity. Also, many companies need them for advertising. Being good at social media can take you places.

7) Dance/Music School

To start with, you just need a place on rent and a couple of teachers. Many kids and teenagers who aspire to do big in life start learning at a young age. You can scale your business as and when the number of students increase.

8) YouTube Channel

YouTube has tremendous earning potential. You can make a professional YouTube channel on whichever topic that interests you like music, health, yoga, cooking etc.  If your content is good and engaging, nothing can stop you from earning big.

9) Tiffin Service

Many corporate companies and even bachelors have to depend on Tiffin service for their food requirements. You can start a hygienic, well organized service and it will surely do well. Make it something by accepting online payment, online order and your service will stand out from others.

10) Wedding Planner

Wedding is a big industry in India. You only need to organize a great wedding. You will have to make contacts with vendors. Two or three good marriages will give you enough money to scale your business. You can then hire people and then you will only have to manage them and keep a check on their work.


Repo Rate Meaning & Definition | Reverse Repo Rate | Repo Rate vs Bank Rate

Repo rate, reverse repo rate, bank rate- do they sound alien to you? You might have heard or read about these terms in news especially when there is a discussion of finances involved. Well if you don’t know the meaning of these terms, you are not alone. Through this post we would like to explain what exactly Repo Rate means and how it affects the common man. Apart from this we will also explain what Reverse Repo Rate means. You will also get to know what is bank rate and the difference between Repo rate vs Bank Rate.

Repo Rate Meaning & Definition

Repo rate is the term used for the rate at which the central bank of any country (The Reserve Bank of India, for India) lends money to commercial banks whenever there is a shortfall of funds. Monetary authorities use repo rate to control inflation. Whenever there is inflation, the central bank increases the repo rate.  What it does is, it acts like a disincentive for the banks to borrow money from the central bank. This leads to reduction in the money supply in the economy of that country and hence helps in arresting inflation.

The central bank, like RBI in India has to take a contrary position in case of a fall in inflationary pressures. Repo and reverse repo rates facilitates the liquidity adjustment in the economy.

Reverse Repo Rate

Reverse repo rate is the inverse or Repo Rate. It is the term used for the rate at which the central bank of a country (Reserve Bank of India, for India) takes or borrows money from commercial banks within the country. The Central bank usually borrows money from commercial banks to control the money supply in the country. If the reverse repo rate increases, it will decrease the money supply. While a decrease in reverse repo rate would lead to increase in money supply. Other things would remain constant.  Also, on increase of reverse repo rate, the commercial banks get more incentives to park their funds with the central bank (RBI). This leads to decrease in money supply in the market.

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Bank Rate vs Repo Rate

Bank rate is often called as discount rate by financial institutions. The bank rate is used by commercial banks while borrowing money from the central bank.  Commercial banks secure a loan when they anticipate shortage of funds in their own bank.

The Bank Rates have a direct impact on the money the commercial banks lend to their clients. The lending rate charged by the central bank is passed on by the commercial banks to the customers who take a loan from these banks. If the central bank charges a high rate from the commercial banks, the commercial banks will charge high interest rates to its customers who take a loan from the bank. Similarly, if the central bank charges low rate from the commercial banks, the commercial banks will charge low interest rate from the customers who take a loan from the bank.

One can say that repo rate and bank rate are quite similar. Repo rate is also known as repurchasing rate. Repo rate is used like a repurchase agreement in a banking transaction. Now, one would like to know what a repurchase agreement is. When a central bank like RBI sells securities to commercial banks and plans & agrees to repurchase those securities after a stipulated period of time at a pre-defined price, it is called repurchase agreement. Hence, the interest rate used for repurchase of these securities is known as a repo or repurchase rate.

Difference between Bank Rate and Repo Rate

Let’s take a look at some of the differences between bank rate and a repo rate.

  • Usage of Collateral – In a bank rate no collateral is involved. But in a repurchase agreement securities are used as collateral, which are ultimately repurchased at a later date.
  • Difference in rate – If you notice the general trend in the market, you will find that bank rate is comparatively higher than a repo rate.
  • Effect on Lending Rate and Term Period – Repo rate is usually used to fulfill the short term fund requirements of businesses. Central banks try to reduce liquidity in the economy by increasing the repo rate. That said, it has no affect on the market rate of interest, as commercial banks take the additional burden for securing their customer base. However, when the bank rate increases, it affects the lending rate offered to customers directly. This discourages them from taking loans which lead to a damage of the overall economic growth. Repo rate may have an impact on the investment amount. But the impact is not as drastic and direct as a bank rate.
  • Loan vs. Securities –Bank rate usually has to do with loans, while repurchase or repo rate deals with the securities. The bank rate is charged by the central bank upon lending loan to commercial banks. On the other hand, the repo rate is charged for repurchasing of securities.

30 Business Ideas With Low Investment

India has a fast growing economy with a huge working population. This makes it a big business market. Startups with a low investment and a big idea tend to work well. Learn about the large number of business options for small investors.

30 Business Ideas With Low Investment

30 Business Startups Which Need Low Investment

Let us see some low investment business options available in India.

1) Food Delivery

This low investment startup requires proper client management.Easy on the pockets, this is the most suitable business idea after 12th

2) Property Brokerage

With no investment cost, you can earn a good commission by cracking decent deals. It is suggested a good business idea after retirement.

3) Wedding Planning

This type of business requires a creative edge and a lot of contacts with wholesale suppliers for decorative items.

4) Grocery Delivery

This is a low cost business. The investment involved is buying the goods in bulk at cheap rates.

5) Private Tutorials

This is the best business idea for students. This can be started as a business idea from home where, the investment cost is nothing.

Recommended Read : 10 Most Profitable Small Scale Business Ideas

6) Food Trucks

To make this a low  investment business ideas in India, there is a heavy investment required initially for management and procurement.

7) Pre Recruitment Consultancy

The company pays you per new candidate. This business is one of the hottest business ideas in Delhi.

8) Handmade Chocolates

This low budget startup plan makes an excellent business idea from home. With a very few equipments and some wholesale stuff, the clients’ orders can be taken in bulk.

9) Retail Garments

They need to be bought bulk,which is the only major investment required in this low cost businessplan.

10) E-Taxi

This taxi service requires heavy investment initially. This startup should have a great business idea and plan for a good kick start.

Also Read : 

11) Insurance Agency

For being an insurance agent, it is important to be able to persuade people to buy the product. Hence, this becomes one of the most low cost business startup.

12) SEO Consultant

This start up requires a computer and some skills only. Market for the blogs and websites online and make them visible and rank on the search engines.

13) Yoga Instructor

If you have a knack for yoga, teaching it is a good source of building easy money. It requires a private space initially but can also be started from home. Hence it is a good business idea from home.

14) Web Designing

This is one of the best business ideas for B.Tech computer science and IT students, as everyone cannot design webpages. This startup can be run using a personal PC from the comfort of your home.

15) Catering

This can become an amazing business idea for women having good cooking skills. This can be a low cost start up from home and may require money put in as a one-time investment.

16) Online Book Store

Start an e-shop for books. Get paid online and deliver books to them. It can give easy returns over investment.

17) Resume Writing

Being a highly recommended business idea for retired professionals, writing resumes is an easy task which can be done from anywhere with the help of a PC.

18) Used Car Dealerships

This can be considered a very low cost business plan. It can be started with being a middleman in a single car deal. It generates high income for almost, no investment.

19) Car Wash

This business needs heavy initial investment over equipment and labour. But, as the business gain marketing, this startup gains huge money.

20) Beauty Parlour

Consider this startup to be the best business idea for women. It requires a few equipments, a private space, skilled professionals and some products.

Also Read : 

21) Boutique

Running a boutique for fashionable garments is an easy business idea and plan. It requires a shop on rent, and bulk purchase of garments from the wholesalers..

22) Matrimony Services

This business can be a good business idea for women as well as a great business idea for retired women. It needs a lot of contacts and database but can be done just over phone calls.

23) Housekeeping

This servicecan be started from a simple app. This can be provided for people who do not get time for heavy cleanup of theirhouses or even spas and therapies.The service management should be a prompt one.

24) Customized Jewelry

Learning how to make customized jewelry is rather an easy skill. Once you get your hands on it, it can be the low cost business idea for women.

25) Thrift Shops

Buy and sell second hand goods. Good marketing and sales skills are the only requirements for this business.

26) Digital Photography

You only need to own a good quality high-end camera and can get easy returns only by small photo shoots. This can be a good business idea for students.

27) Fitness Center

This is the most trendy business idea in Delhi. People who have the skills to work out can teach others the same with minimum investment on equipment and space.

28) Organic Gardening

Being one of the best business ideas from home, organic gardening involves low monetary investment and can get high margins on it.

29) Trash Management

Trending as a good business idea in India with low investment, it requires an initial heavy set up which can give major returns later on.

30) Paying Guest

This is an ageold business idea from home as it gives great returns with the help of minimum investment.

With proper management, execution and marketing, it is possible to device a perfect startup with a low investment cost in a country like India.