In order to attract customers and close profitable deals, firms must create an effective sales proposal. The following five components are necessary for each and every sales proposal:
Introduction:
Start the sales proposal with an attention-grabbing opener that is succinct but effective in grabbing the prospect’s attention. Establish rapport with the client by expressing a clear knowledge of their needs and issues, and by clearly stating the aim of the proposal. Emphasize the value proposition and distinctive selling features of your goods or services in this part.
Problem Statement:
Identify the specific issues or challenges the customer faces and describe how your product might successfully address them. Provide relevant case studies or illustrations of how your solutions have benefited clients who are comparable to you. By demonstrating empathy and a comprehension of the client’s problems, you can win the client’s confidence.
Solution Overview:
Give a thorough explanation of the suggested solution, emphasizing its advantages over other options and its features and benefits. Make the solution unique to the needs of the client and highlight how it supports their strategic and business goals. To improve comprehension and clarity, make use of visual aids like graphs, charts, and product demonstrations.
Pricing and Payment Terms:
Give a detailed description of the suggested solution’s price structure, taking into account any one-time, recurring, or subscription payments. Give clear price details and decompose the expenses to make comparison and assessment simple. To prevent any misunderstandings or disagreements later on, you should also clearly state the terms of payment, including the payment schedule, the invoicing procedure, and the accepted payment methods.
Call to Action:
Provide a strong call to action at the end of the sales proposal to compel the client to take the next action, which could be arranging a follow-up meeting, signing a contract, or deciding what to buy. Give the client precise directions on how to continue and clearly state the intended result. Demonstrate your belief in your capacity to produce outcomes and extend a helping hand whenever needed to resolve any issues or queries.
Conclusion:
To sum up, a well-written sales proposal need to have an attention-grabbing opening, a comprehensive problem description, an outline of the solution that is appealing, clear payment terms and pricing, and a powerful call to action. You can improve your chances of success and persuade potential clients in an efficient manner by including these essential components in your proposals.
Here are a few well-liked small company concepts that you can launch in 2024:
Education book Store and Stationery shop
An educational bookstore is a type of business where the primary product sold is educational literature. It is frequently used to describe paper that has coordinated designs and logos. Paper, envelopes, pens, pencils, notepads, note cards, and other supplies are included with this. These products are sold in a stationery store.
2. Catering Services
For any event or celebration, caterers offer services like food preparation, delivery, and presentation. Serving food and beverages to a large gathering, such as during a wedding or party, is known as catering.
3. Photographer
A photographer is a person who works as a photographer. It’s also simple to start small and grow this kind of business. Put an end to tinkering with your smartphone’s photo apps. It’s time for you to put your abilities to use and make the most out of your photography business if you want to discover how to launch one on the side and develop it into a full-time source of income.
4. Advertising Agency
A company that makes advertisements for other businesses or organizations is known as an advertising agency. The prior stronghold that advertising firms had over brand marketing is eroding. Advertising firms might be in charge of the following duties in addition to creating, organizing, and managing a company’s advertising needs: Taking charge of talks. Developing customized advertising campaigns.
5. Bakery
A bakery can operate as a wholesale company, supplying baked products to food stores and institutions, or as a retail company, operating out of a storefront and selling baked goods to customers. This is predicated on the realities that humans must eat and that many people value fresh goods enough to be willing to pay for them.
The following are the top five small investment business ideas:
Travel Agency
It refers to an agency that sells and arranges travel services such as transportation, lodging, tours, and trips. In addition to booking reservations, they help customers choose their location, transportation, and hotel, as well as tell them about passport and visa requirements, currency exchange rates, and import tariffs.
Data Centre Consultancy
It is one of the top small investment business ideas to start in India. Data center facilities consulting services that provide hybrid infrastructure-ready data centers as an integrated component of IT strategy. A data center is outfitted with a reliable power supply and high-speed connections.
Career Guidance Centre
The employment Guidance Centre strives to enlighten high school students about courses of study, employment possibilities, and potential professional trajectories. The service and activities are meant to help people of any age, at any stage of their lives, make educational and employment decisions to manage their career path.
Health Club
It is typically a commercial establishment that charges members a fee to use its health and fitness facilities and equipment. A health club can offer three significant advantages: motivation and camaraderie, teaching and supervision, and equipment and facilities. Motivation is essential, especially for individuals who are just beginning to exercise. The first steps to fitness are the most difficult.
Organic Food Service
Organic growers use natural substances and physical, mechanical, or biological farming methods to the greatest extent possible. It must be free of artificial food additives and is frequently processed using fewer unnatural methods, materials, and circumstances, such as chemical ripening, food irradiation, and genetically modified components.
Ratio analysis is the process of using a financial statement to quickly integrate an entity’s performance in important areas. Managers and investors can assess the situation of the company by comparing the links between the financial statement accounts through ratio analysis. It gives us important financial data and highlights the areas that need more research. The process of regrouping data using mathematical relationships is known as ratio analysis, and interpreting the results is a difficult task. A solid understanding of the methods and procedures used to create financial statements is necessary for ratio analysis. When done well, it offers the analyst a wealth of financial data that is beneficial. The ten most crucial financial ratios for a company are as follows:
Financial Ratios for Business
Quick Ratio
A fast ratio demonstrates that, even in the event of an unforeseen circumstance, a company can fulfill its financial commitments and settle its liabilities. This ratio shows how much liquid capital a business has on hand to cover its short-term obligations. A greater ratio indicates a higher level of solvency for the company and a lower likelihood of bankruptcy.
Quick Ratio is equal to Current Liabilities & Provisions – Bank Overdrafts / Current Assets, Loans & Advances – Current Inventory – Prepaid Expenses.
Current ratio
A company’s current financial strength can be seen through the current ratio. It is comparable to the Quick Ratio and is likewise used to assess a company’s short-term solvency. Strong short-term solvency is indicated by a high current ratio for the company. This is also known as the working capital ratio at times.
(Total Current Assets, Loans & Advances) / Total Current Liabilities & Liabilities is the current ratio.
Inventory turnover ratio
The frequency with which a business turns inventory into sales is indicated by the inventory turnover ratio. This ratio also shows the duration of inventory holding. Inventory converts into revenue faster and more efficiently the shorter the holding period.
Cost of goods sold divided by average inventory is the inventory turnover ratio.
ROI (Return on Investment)
ROI essentially evaluates the financial return on investment between the amount you put in your company and its earnings. This ratio calculates your company’s profitability. Your company will make more money the higher the ROI Ratio. Before making an investment in any business, investors also use this ratio as their main signal.
ROI is calculated as follows: Earnings – Initial Expense / Initial Expense
Return on Capital Employed (ROCE)
This ratio shows the company’s return on total investment. This ratio, when compared to the industry average, provides an indication of the company’s financial performance and is the final gauge of the business’s overall performance and productivity of capital employed. When analyzing capital-intensive businesses in the telecom, oil and gas, heavy industries, etc., ROCE is a highly helpful ratio.
Profit before interest and taxes / total capital utilized is known as ROCE.
Return on Equity (ROE)
The income received by equity shareholders is shown by this ratio. A high ratio is indicative of a strong dividend, promising future, and high capital market valuation.
Equity Share Capital + Reserves and Surplus +/- Deferred Tax Assets or Liabilities equals Equity Shareholder Funds.
Profit after tax minus preference dividend divided by total capital employed is ROE * 100.
Earnings per Share (EPS)
One of the crucial financial parameters for a company is earnings per share. The earnings per share of a corporation are displayed by this ratio. It is among the crucial profitability indicators for analysts and investors. When valuing a company in a merger or other transaction, this ratio is the primary factor taken into account. A greater percentage conveys a favorable impression of the business. Greater returns are indicated by a larger ratio.
The amount of net income received on each share of a company’s stock is measured by earnings per share, or EPS.
Preference dividend / Number of equity shares / Profit after tax equals EPS.
Debt-Equity Ratio (DER)
This ratio shows how much of the company’s funding it is using from loans. The debt-to-equity ratio displays the total long-term debt of a company as a proportion of the total equity held by its owners.
Increased debt means increased interest-bearing fixed liabilities and increased risk to the company’s finances. Additionally, this ratio shows whether the business has the best possible capital structure to increase returns to equity shareholders.
Long-term debt / Equity is the debt-to-equity ratio.
Debtor Turnover Ratio
This ratio illustrates how well debtors are turned into cash. The pace at which debtors are turned into cash increases with the ratio. This ratio can also be expressed as a number of days.
When calculating the working capital ratio, only cash and cash equivalents are taken into account. The whole value of cash on hand, which includes investments that mature in less than 90 days or similar products, is referred to as cash equivalent. Cash equivalents include things like commercial paper, Treasury notes, and Treasury bills. The cash ratio can be found using the formula below:
Cash ratio = Cash and cash equivalents / Current liabilities
Odisha, a state renowned for its varied industrial landscape and spirit of entrepreneurship, provides a number of loan schemes and financial assistance programs to help MSMEs in the state expand and thrive. These programs are designed to support economic sustainability, encourage innovation, and meet the financial needs of small enterprises. Here are some significant credit programs that are offered to MSMEs in Odisha:
Gramodyog Rozgar Yojana (GRY)
GRY is a credit scheme designed to encourage rural entrepreneurship in Odisha. The Khadi and Village Industries Commission (KVIC) implements the initiative through its state and district offices. The recipients of this initiative will receive financial help in the form of loans and grants with competitive interest rates and flexible repayment terms. The scheme also offers beneficiaries training and skill development programs to help them start and run profitable enterprises. Here are some of its main highlights:
Loan amount: ₹10,000 to ₹25 lakhs.
Interest rates: 4% for general beneficiaries, 2% for SC/ST, women, and differently-abled recipients.
Rural/Urban: Only available in rural areas.
Loan tenure: 7 years.
Gender: Male / Female
Mukhyamantri Krushi Udyog Yojana Odisha
The Mukhyamantri Krushi Udyog Yojana Odisha is an MSME loan plan designed to help small and marginal farmers, entrepreneurs, and unemployed youth in the state of Odisha. The initiative offers loans for the purchase of land, equipment, and tools. The initiative also includes training for farmers and entrepreneurs to help them enhance their skills and knowledge. Here are some of its main highlights:
Loan amount ranges from ₹10 lakh to ₹25 crore.
Interest rates range from 4% to 9% annually.
Rural/UrbanAvailable to both rural and urban residents.
Loan tenure: 7 years.
The margin money subsidy covers 25% of the project cost for SC/ST, women, and differently-abled beneficiaries.
PM Vishwakarma Scheme
Prime Minister Narendra Modi introduced this plan on September 17, 2023, on the occasion of Vishwakarma Jayanti. It offers technical training and financial help to traditional artists and craftspeople around the country. This initiative also offers an 8% interest subvention on the borrowing amount. Here are some of the significant highlights:
Loan amount: Up to ₹3 lakh.
Interest Rates: 5%.
Rural/Urban: Available to both rural and urban residents.
Loan tenure: 18-30 months.
Gender: Both Male and Female
Credit Linked Capital Subsidy Scheme (CLCSS)
In October 2000, the Government of India established the Credit Linked Capital Subsidy Scheme. This plan offers MSMEs with the necessary financing to upgrade their present technologies. Businesses can utilize this initiative to improve their existing plant and machinery and increase profits. This policy has no upper loan limit, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. It has the following primary features:
Loan amount: no upper limit.
Subsidy: 15% of loan amount.
Annual guarantee fee: 0.75-1.0%.
Loan tenure: Flexible tenure based on the repayment capacity
Pradhan Mantri MUDRA Yojana (PMMY)
The Pradhan Mantri Mudra Yojana (PMMY) is a major central government plan that debuted in 2015. It makes microloans to non-corporate, non-farm micro, and small businesses in both rural and urban locations.
PMMY provides loans in three categories, based on the stage of business growth and finance requirements:
Shishu Mudra: Up to Rs. 50,000
Kishore Mudra: Rs. 50,001 to Rs. 5 lakh
Tarun Mudra: Rs. 5 lakh to Rs. 10 lakh
MUDRA loans are available through a variety of financial institutions, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).
Unlike other loan schemes, PMMY has no age, gender, duration, or interest rate requirements. All of these elements can vary depending on the loan category and the lending institution’s policies.
Prime Minister’s Employment Generation Programme (PMEGP)
PMEGP is a credit-linked subsidy system operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) that intends to provide job possibilities through the establishment of micro-enterprises. The primary beneficiaries of this initiative are women, traditional and potential craftspeople, and unemployed youngsters. Here are some of its primary features:
Age: Minimum age of 18.
Interest rates: vary between 11% and 12% based on the bank.
Loan tenure: 3-7 years.
Education qualification: VIII standard pass.
Maximum loan amount: Rs. 1 Crore.
Subsidy: 15% to 35%.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It promotes financial institutions to offer collateral-free credit solutions to micro and small businesses. In the event of a default, the bank might submit a claim with CGTMSE. Here are some of its primary features:
Loan amount: Up to 5 crore.
Collateral is not required.
Loan tenure: 5-10 years.
Annual Guarantee Fee: 0.37%-1.35%.
Age: Minimum age is 18.
Stand-up India
Stand-up India is a central government project that began in 2016. It offers bank loans to women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start their own businesses. Existing firms are ineligible for loans under this scheme because they are intended for new businesses only. These loans are supplied by a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and small financing banks.
This initiative offers loans ranging from Rs 10 lakhs to Rs 1 crore. Interest rates and tenure vary depending on the type of the firm, as well as other considerations such as the lender’s credit policies.
SIDBI Make-in-India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)
The national government established SMILE, a project to provide financial help to 25 identified sectors as part of the ‘Make in India’ strategy. This project encourages the ‘Make in India’ concept among entrepreneurs. SMILE provides ample finance for both the establishment of new firms and the expansion of existing ones. Here are some of its primary features:
Maximum loan tenure: 10 years.
Loan amount: ranges from Rs.10 lakh to Rs.25 lakhs.
Interest rates: vary based on corporate requirements.
Nature of the loan: Term and quasi-equity loans
These are some of the financing packages offered to MSMEs in Odisha. Each program has its own eligibility criteria, and MSMEs can select the one that best meets their needs. MSMEs can meet their financial demands while also contributing to economic progress by taking advantage of these incentives.
Here are five well-liked, cutting-edge start-up concepts that you can launch in India in 2024:
1. Taxi Services
Given the exponential growth in demand, the taxi cab industry is reaping massive profits. A taxi, also known as a cab or a taxicab, is a form of hired vehicle with a driver that is often utilized by a single or small group of people for a non-shared ride. A taxicab transports people to destinations of their choice.
2. Car Wash Services
An auto wash is a place where cars are cleaned on the outside and sometimes the inside as well. To offer a full-service, premium car wash with a restaurant, gift shop, and full auto detailing so that clients would feel like they are getting a fantastic deal and can enjoy a satisfying meal while their car is being washed or detailed.
3. Furniture Sales
An establishment that sells furniture and appliances for the home is referred to as furniture and appliance sales. This industry encompasses all businesses and ventures engaged in the creation, production, marketing, and distribution of household appliances that serve as decorative accents or useful things.
4. Animation Studio
An animator creates what are known as frames, which are several images that, when combined, give the impression of movement. A business that creates animated media is called an animation studio. The largest of these businesses design the goods to be created, own the actual machinery needed for manufacturing, hire people to operate that machinery, and have a sizable portion of the revenue from the sales or rentals of the media generated.
5. Tailoring Service
a kind of company established to offer customized services that has a large number of knowledgeable, proficient, and trained staff members as well as machinery, equipment, space, property, management, and technology. A tailoring company specializes in custom-fitting clothing for each individual consumer. In addition to providing style advice, tailors often alter pre-existing clothing for their clients.
Punjab offers a variety of loan schemes and financial assistance programs to encourage the growth and development of MSMEs in the state. The province is well-known for its rich cultural legacy and strong industrial sector. These programs are designed to help small businesses get the finance they need, encourage entrepreneurship, and boost the economy. The following are some important lending programs Punjab offers MSMEs:
Punjab National Bank (PNB) MSME Loan Scheme
PNB provides financial assistance to MSMEs for a variety of purposes, including the purchase of machinery, working capital, infrastructure development, and technology upgrades. These programs span a wide range of corporate operations, from start-up to expansion and modernization. Here are some of the significant highlights:
Loan amount: Up to 5 crore.
Repayment periods: Vary based on loan amount and kind. Typically varies from 3 to 7 years.
Interest rates: Range from 8.50% to 13.5%.
Age: Minimum of 18 years.
Gender: Male/Female
Punjab State Cooperative Bank (PSCB) MSME Loan Scheme
The PSCB provides financial support to MSMEs for a variety of purposes, including working capital, machinery purchases, and infrastructure development. Like PNB, Punjab State Cooperative Bank (PSCB) offers initiatives that cover all elements of business operations, from start-up to expansion and modernization. Here are some of the significant highlights:
Loan amount: Up to 5 crore.
Repayment periods: vary based on loan amount and kind. Generally, up to seven years.
Interest Rates: 7% – 12%.
Age: Minimum of 18 years.
Gender: Male / Female.
Mahila Udyam Nidhi Scheme
The Mahila Udyam Nidhi Scheme offers financial help to women entrepreneurs looking to start new businesses or grow current ones. The primary goal of the initiative is to support female entrepreneurs throughout the state. Please be aware that these schemes are now exclusively offered through Punjab National Bank. Here are some of its features:
Loan amount: Up to Rs. 10 lakh.
Loan interest rate: 5% annually.
Loan tenure: 5-7 years.
Educational Qualification: 10th standard.
Age and Gender: Women aged 18–55 years
Punjab State Scheduled Caste Land Development and Finance Corporation (PSSCLDFC) MSME Loan Scheme
The Punjab State Scheduled Caste Land Development and Finance Corporation (PSSCLDFC) provides a variety of financing initiatives to help Scheduled Caste individuals in Punjab with various economic pursuits. It gives financial help to SC entrepreneurs starting new businesses or expanding existing ones. Here are some of the significant highlights:
Loan amount: Up to Rs 30 lakh.
Loan interest: 5%-8%.
Loan tenure: 3-15 years
Age range: 18-55 years
Category: SC.
Credit Linked Capital Subsidy Scheme (CLCSS)
In October 2000, the Government of India established the Credit Linked Capital Subsidy Scheme. This plan offers MSMEs with the necessary financing to upgrade their present technologies. Businesses can utilize this initiative to improve their existing plant and machinery and increase profits. This policy has no upper loan limit, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. It has the following primary features:
Loan amount: no upper limit.
Subsidy: 15% of loan amount.
Annual guarantee fee: 0.75-1.0%.
Loan tenure: Flexible tenure based on the repayment capacity
Pradhan Mantri MUDRA Yojana (PMMY)
The Pradhan Mantri Mudra Yojana (PMMY) is a major central government plan that debuted in 2015. It makes microloans to non-corporate, non-farm micro, and small businesses in both rural and urban locations.
PMMY provides loans in three categories, based on the stage of business growth and finance requirements:
Shishu Mudra: Up to Rs 50,000.
Kishore Mudra: Rs. 50,001-Rs. 5 lakh
Tarun Mudra: Rs 5 lakh to Rs 10 lakh.
MUDRA loans are available through a variety of financial institutions, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).
Unlike other loan schemes, PMMY has no age, gender, duration, or interest rate requirements. All of these elements can vary depending on the loan category and the lending institution’s policies.
Prime Minister’s Employment Generation Programme (PMEGP)
PMEGP is a credit-linked subsidy system operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) that intends to provide job possibilities through the establishment of micro-enterprises. The primary beneficiaries of this initiative are women, traditional and potential craftspeople, and unemployed youngsters. Here are some of its primary features:
Age: Minimum age of 18.
Interest rates: vary between 11% and 12% based on the bank.
Loan tenure: 3-7 years.
Education qualification: VIII standard pass.
Maximum loan amount: Rs. 1 Crore.
Subsidy: 15% to 35%.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It promotes financial institutions to offer collateral-free credit solutions to micro and small businesses. In the event of a default, the bank might submit a claim with CGTMSE. Here are some of its primary features:
Loan amount: Up to 5 crore.
Collateral is not required.
Loan tenure: 5-10 years.
Annual Guarantee Fee: 0.37%-1.35%.
Age: Minimum age is 18.
Stand-up India
Stand-up India is a central government project that began in 2016. It offers bank loans to women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start their own businesses. Existing firms are ineligible for loans under this scheme because they are intended for new businesses only. These loans are supplied by a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and small financing banks.
This initiative offers loans ranging from Rs 10 lakhs to Rs 1 crore. Interest rates and tenure vary depending on the type of the firm, as well as other considerations such as the lender’s credit policies.
SIDBI Make-in-India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)
The national government established SMILE, a project to provide financial help to 25 identified sectors as part of the ‘Make in India’ strategy. This project encourages the ‘Make in India’ concept among entrepreneurs. SMILE provides ample finance for both the establishment of new firms and the expansion of existing ones. Here are some of its primary features:
Maximum loan tenure: 10 years.
Loan amount: ranges from Rs.10 lakh to Rs.25 lakhs.
Interest rates: vary based on corporate requirements.
Rajasthan’s economic development relies heavily on small and medium-sized enterprises (SMEs). The rise of the MSME sector has resulted in a huge increase in demand for financial support. To meet this need, numerous financial institutions and the government have developed a variety of lending plans for MSMEs. These lending schemes are intended to give financial assistance and encourage entrepreneurship. The following are some of the prominent financing packages offered for MSMEs in Rajasthan:
Rajasthan State Financial Corporation (RSFC) MSME Loan Scheme
The Rajasthan State Financial Corporation (RSFC) offers this initiative to help the state’s MSMEs expand. The initiative offers term loans, special loans, and working capital loans to MSMEs that operate in the manufacturing, service, and trading sectors. Here are some of its details:
Loan amount
Upto Rs. 5 crore
Interest Rates
9.75% to 11.50%
Loan Tenure
3-10 years
Gender
Both Male and Female
Residence
Indian citizen Residing in Rajasthan
SME Saral Loan Scheme
The Rajasthan state government offers this scheme. The SME Saral Loans Scheme provides both fund-based and non-fund-based financing. It provides loans for working capital, fixed assets required for corporate operations, capacity development, modernization, technological upgrades, and so on. Here are some of the significant highlights:
Loan amount
Minimum Rs. 10.00 lacs and maximum of Rs. 500.00 lacs.
Interest Rates
@8.40% onwards
Loan Tenure
Upto 84 Months
Gender
Both Male and Female
Residence
Indian citizen Residing in Rajasthan
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme:
The Rajasthan State Industrial Development and Investment Corporation (RIICO) offers this initiative to support the state’s industrial development. The program offers financial assistance to MSMEs for the establishment of new units, the growth of existing units, and the updating of technology. Here are some of the significant highlights:
Loan amount
Upto Rs. 50 crore
Interest Rates
8.5% to 11.5%
Loan Tenure
7-10 Years
Gender
Both Male and Female
Residence
Indian citizen Residing in Rajasthan
Credit Linked Capital Subsidy Scheme (CLCSS)
In October 2000, the Government of India established the Credit Linked Capital Subsidy Scheme. This plan offers MSMEs with the necessary financing to upgrade their present technologies. Businesses can utilize this initiative to improve their existing plant and machinery and increase profits. This policy has no upper loan limit, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. It has the following primary features:
Loan amount
No upper limit
Subsidy
15% of the loan amount
Annual guarantee fee
0.75%-1.0%
Loan tenure
Flexible tenure depending upon the repayment capacity
Pradhan Mantri MUDRA Yojana (PMMY)
The Pradhan Mantri Mudra Yojana (PMMY) is a major central government plan that debuted in 2015. It makes microloans to non-corporate, non-farm micro, and small businesses in both rural and urban locations.
PMMY offers loans under three categories, depending on the stages of business growth and funding needs:
Shishu Mudra: Up to Rs. 50,000
Kishore Mudra: Rs. 50,001 to Rs. 5 lakh
Tarun Mudra: Rs. 5 lakh to Rs. 10 lakh
MUDRA loans are available through a variety of financial institutions, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).
Unlike other loan schemes, PMMY has no age, gender, duration, or interest rate requirements. All of these elements can vary depending on the loan category and the lending institution’s policies.
Prime Minister’s Employment Generation Programme (PMEGP)
PMEGP is a credit-linked subsidy system operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) that intends to provide job possibilities through the establishment of micro-enterprises. The primary beneficiaries of this initiative are women, traditional and potential craftspeople, and unemployed youngsters. Here are some of its primary features:
Age
Minimum age of 18
Interest rate
Between 11% -12% depending on the bank
Loan tenure
3-7 years
Education qualification
VIII standard pass
Maximum Loan amount
Rs. 1 Crore
Subsidy
15% to 35%
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It promotes financial institutions to offer collateral-free credit solutions to micro and small businesses. In the event of a default, the bank might submit a claim with CGTMSE. Here are some of its primary features:
Loan amount
Up to 5 crore
Collateral
Not required
Loan tenure
5-10 years
Annual Guarantee fee
0.37%-1.35%
Age
Minimum age of 18
Stand-up India
Stand-up India is a central government project that began in 2016. It offers bank loans to women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start their own businesses. Existing firms are ineligible for loans under this scheme because they are intended for new businesses only. These loans are supplied by a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and small financing banks.
This initiative offers loans ranging from Rs 10 lakhs to Rs 1 crore. Interest rates and tenure vary depending on the type of the firm, as well as other considerations such as the lender’s credit policies.
SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)
The national government established SMILE, a project to provide financial help to 25 identified sectors as part of the ‘Make in India’ strategy. This project encourages the ‘Make in India’ concept among entrepreneurs. SMILE provides ample finance for both the establishment of new firms and the expansion of existing ones. Here are some of its primary features:
Loan tenure
Maximum 10 years
Loan amount
From Rs.10 lakhs to Rs.25 lakhs
Interest rates
Depending on enterprises’ requirement
Nature of loan
Quasi-equity and term loans
These are a few of the financing options offered to MSMEs in Rajasthan. Each program has its own eligibility criteria, and MSMEs can select the one that best meets their needs. MSMEs can meet their financial demands while also contributing to economic progress by taking advantage of these incentives.
PMEGP Loan and subsidy is implemented by the Khadi and Village Industries Commission (KVIC), which serves as the national nodal agency. The initiative is implemented at the state level by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs), and financial institutions. Here’s a step-by-step method to getting the PMEGP loan and subsidy:
Understanding PMEGP:
Learn about the PMEGP Loan program’s goals, requirements for eligibility, and advantages. Make sure your company endeavor complies with the goals and regulations of the program.
Project Proposal Preparation:
Create a thorough project proposal that includes your business idea, estimated PMEGP Loan and subsidy costs, financial predictions, and potential for creating jobs. Provide information about the project’s location, the infrastructure needed, and a market analysis.
Training Programme Attendance:
Participate in the Entrepreneurship Development Programme (EDP) training course offered by State KVIC Directorates or the Khadi and Village Industries Commission (KVIC). The goal of the program is to help participants build their entrepreneurial abilities and manage their microbusinesses successfully.
Submission of Application:
Get the PMEGP Loan and subsidy application form at the closest KVIC office or the official website. Complete the application form completely and affix the necessary supporting documentation, such as the PMEGP Loan and subsidy proposal, identification and address verification, and bank account information.
Application Submission:
Send the filled-out application and all necessary supporting documentation to the appropriate KVIC office or online. Make sure the application is filed in the appropriate format and by the deadline.
Application Scrutiny:
The applications will be examined carefully by the KVIC officials to ensure that they are eligible and feasible. To assess the feasibility of the suggested project PMEGP Loan and subsidy, they might go on field trips and make evaluations.
Loan Sanction and Subsidy Approval:
After the application has been successfully reviewed, the KVIC will work with the chosen bank to approve the loan amount. The amount of the subsidy will also be approved in accordance with the project cost and the subsidy guidelines that apply to the beneficiaries in question.
Loan Disbursement:
The approved bank will transfer the approved loan amount to the beneficiary’s bank account. Make ensuring that all loan distribution procedures and documents are followed by the bank.
Project Implementation:
As soon as the project proposal and guidelines have been approved, begin implementing the project PMEGP Loan and subsidy . Make good use of the borrowed cash to establish the microbusiness and get the tools and supplies you’ll need.
Monitoring and Reporting:
Observe the reporting and oversight guidelines provided by the KVIC. Send in financial statements, progress reports, and other paperwork as needed to keep an eye on the project’s performance and execution.
Conclusion
Process that includes creating a project idea, submitting an application, having it reviewed, getting approved, and putting it into action. Aspiring entrepreneurs can access financial support to launch and expand their micro-enterprises, which will help create jobs and stimulate the economy, by carefully following these steps and abiding by the program’s rules.
A projected balance sheet, also known as a pro forma balance sheet, depicts the estimated total assets and liabilities of a corporation. A pro forma balance sheet is a table of future estimates. As a result, it will assist your company in managing its assets now to achieve greater results in the future.
The asset will include both long-term (non-current) and current assets. Long-term assets will comprise the structure, land, machinery, and vehicles. Current assets include cash in hand/bank, receivables, and socks for the short term.
On the liability side, we have both non-current and current liabilities. Non-current liabilities include term loans, while current liabilities include accounts payable and short-term loans such as working capital loans.
If you have asked for a company loan for your new project or wish to purchase new fixed assets, you may be required to submit a projected balance sheet. By presenting a well-crafted forecasted balance statement from Finaxis, the bank will be certain that the business unit is feasible for investment/loan.
How to Prepare Projected Balance Sheet
Step 1: Calculate cash on hand and cash at the bank
If you do not have a cash booking record, you can show cash in hand after reviewing your business’s cash balance. You can also check the available balance at the bank. Both will be considered current assets on your balance sheet.
Step 2: Calculate Fixed Assets
Notice everything around you. Make a list of assets whose benefits you receive for longer than one year. Check the price on cash memos or past bills. Try to calculate the time it will be in use. If you’ve used it for three years. Its worth will undoubtedly decline owing to depreciation. Charge 10% to 20% per year on all fixed assets up to the usage period, using any form of depreciation. The system will now present you with the fixed asset’s current cost. Display it on the asset side of the balance sheet.
Step 3: Determine the value of financial instruments
If you put your money into stocks, bonds, or other financial assets. Write down the purchasing price. If it has declined, you can also display the current market price of financial instruments.
Step 4: Calculate your business earnings
If you have not prepared a profit and loss statement. You can compare your expenses to your revenue. If your income exceeds your expenses, you will make a profit. That amount will be shifted to the balance sheet’s liabilities side. You should only deduct charges for which you received benefits in one year.
Step 5: Calculate the business’s liabilities
These liabilities include bank loans, secured loans, and other debts. This will be included on the liabilities side of the anticipated balance sheet.
Step 6: Calculate the Business’s Capital
Business capital can be calculated by removing outside liabilities from total assets. This will also increase the liability side of the balance sheet.
Conclusion:
Non-finance/accounting people will be puzzled about how to create the projected balance sheet for their project report. We, at Finaxis help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India.
To sum up, creating a projected balance sheet needs thorough research, precise forecasting, and wise decision-making. These stages, along with the use of financial modeling methodologies, allow firms to create projections that are both realistic and useful for strategic planning and decision-making.
