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Why Financial Planning Is Necessary For Businesses?




Reasons Why Content Writing is Important in 2022

You’ve heard us talk about content writing before. And now, we want to dive into why it matters even more in the future.

We all want to see our ideas come alive in front of our eyes. The Internet has become the ultimate place connecting individuals from all over the world. People share their lives through social media, write blogs, create vlogs, and read stories written by other authors on platforms such as Medium or Hubspot. This makes great content writing important because it helps you reach out to others around the world via the web.

As the Internet grows larger, it becomes harder to stand out from the crowd. That’s where good writers come in. An article can literally change someone’s life forever. Whether they decide to follow your blog or sign up for your mailing list, you want them to remember you. And the only way to do that is to give them something worth reading.

Content writing is a strategy that helps your business grow, it works like marketing products & services through different Digital Branding Channels. You probably already know that content marketing is important in today’s competitive marketplace. But according to experts, even though content has become an essential part of every business strategy, only 50% of companies actually execute their strategies properly. And guess who plays the biggest role in executing these strategies? Yes. YOU!

Content writing is undoubtedly one of the most challenging types of job out there. The good thing is that no matter what type of business or niche you are targeting, there is always something new to write about.

However, it is not enough to simply create content. You also have to develop a unique voice that resonates with your audience. If done correctly, your readers will connect with your content and you will gain followers, subscribers, and clients.

What makes content writing important? What role does it play in the modern day? If you want your brand or company to stand out from the crowd, then you definitely should consider adding some quality content writing into your marketing mix. That said… reason why content writing is important in 2022.

Content writing has become very critical these days because of its importance in today’s ever changing technological ecosystem. Every business today realizes the importance of content writing to increase the overall activities of the business.

Every business needs to create a content writing strategy which impacts the reader in a very positive way when done correctly. It not only provides answers to the problems but also gives them reasons to get inspired and make informed decisions about buying or taking service from your business.

This is the power of content, which is only going to increase in the coming years as well. With the advancement in business and the opening up of several industries of different sizes, content writing will be highly in demand in India as well as around the world.

Content writing: here’s the reason why content writing will be so important in 2022.

1. Content improves brand reputation by building trust

Content allows you to connect and educate your customer, and build your brand’s name in the market. And build trust and relationships, and you encourage transforming by giving customers the information they need to make an educated purchasing decision. The content is also used for building the reputation of your business. Building trust can help your business establish a good brand reputation.

2. Content helps influence conversions

Content can help to influence the audience and you can connect to your customer by giving them relatable content. In this you have the freedom of writing and displaying your creativity through this you can convert their buying decision.

3. Content helps improve your SEO efforts

The importance of content becomes more clear when looking at the role that content plays in helping your business build and improve Search Engine Optimization. SEO plays an important role in improving visibility for your business online, if you want to improve SEO, you need to create optimized content.

4. Creating good content is a cost-effective way to bring in new leads

Content can help your business by bringing new leads. Lead is important for small businesses that rely on online traffic, grow their brand, and increase sales. Content marketing is not only good for lead generation, but it’s also in budget.

5. Content qualifies your brand to showcase your subject matter expertise

Customers want to know that they are dealing with experts who know the ins and outs of the industry. This is another answer to why content is important. Content allows your brand to illustrate its expertise in the field while providing valuable knowledge that can help customers make a more educated purchasing decision.

Every time that you publish a new blog post or other pieces of content, you’re showing leads and customers how much you know about the business and the challenges that you face. At the time of making a purchase, customers will remember the brand that provided them with the information they needed to better understand their problems, solutions, and other options.

6. Content helps you set yourself apart from your competitors

Content is important because content marketing merges into all other areas of your marketing strategy. It also holds together your campaigns and what ultimately helps make them successful. Without the best content, all you have is ideas. And ideas, no matter how great, will not transform into a great campaign.

With all the benefits of content, it’s easy to see why content is important for businesses of all sizes. It helps you boost visibility, but it can also help you build stronger relationships with your leads and customers.

7. Content helps support nearly every other marketing strategy

Content is important because content marketing merges into all other areas of your marketing strategy. It also holds together your campaigns and what ultimately helps make them successful. Without the best content, all you have is ideas. And ideas, no matter how great, will not transform into a great campaign.

With all the benefits of content, it’s easy to see why content is important for businesses of all sizes. It helps you boost visibility, but it can also help you build stronger relationships with your leads and customers.

8. Authentic Information content

With more and more people turning towards the internet for information, it has become very important to provide authentic information to your target audience and existing customers.

The whole purpose of creating pure content is to share information that is of value to your business. You will have to create content that will appeal to an audience, help them to make better decisions, inspire and create confidence in your brand,

Authentic information content when disseminated builds trust like nothing else. It is a form of long-term investment where consumers become very supportive of your products and services, and recommend them to others.

You should create content that your audiences should feel the personal touch of as if you are talking to them personally. This creates a great impression. These types of written content can go a long way to a bond between you and your audience

5 Major Types of Content 

1) Blogging: Blog posts are the most effective type of content marketing. In that discussion or informational website published, often informal diary-style text entries (posts).

2) Video: Video content writing is any content format that features or includes video. Common forms of video content writing include vlogs, animated GIFs, live videos, customer testimonials, recorded presentations and webinars in writing format.

3) Podcasting: A podcast content writing is basically a roadmap for your episode and you can decide how many details you need to make it from point A to Z in written format for your readers. 

4) Infographics: The very purpose of infographic content writing is to relay information. You want to develop content that people can use, so it must be accurate. Whether you’re the one supplying the data or presenting facts from another source, make sure they’re accurate. Check your data collection and check it again.

5) Email: Email content writing is any message sent to a subscriber, customer or prospect’s inbox on a personal basis or by the auto process. 

Advantages of Content Writing

1. Improve your search engine rankings.

2. Content writing provides broad facts that grab readers’ attention, product comparisons, thorough statistics, and extra information to encourage people to purchase.

3. Content writing educates and instructs buyers and clients before they become serious about spending money.

4. Content writing helps to promote a product’s or service’s utility across digital media platforms.

Relevant content writing techniques you should be using today

1. Create an attention-grabbing headline so that readers will read the rest of your work. If the headline does not trigger the reader’s attention or make the reader go through the topic, your content will fail to accomplish the desired results.

2. Start off by creating an attention-getting introduction after the title. According to the survey, you have three seconds to grab readers’ interest; so make sure the intro should influence readers’ to read the rest of your content.

3.  Strong research skills to understand the subject you’re writing about. Your content should include statistics, facts, and analytics to provide credibility to support your claims. 

4. Find your niche before creating your content, you should determine at least one idea you wish to express.

5. Adopt a unique tone in your writing that reflects your company’s personality, target audience, company objectives, and brand image.

Summary 

So, here you have the reasons why content writing is so important for businesses. It helps you to have an edge over your competitors in the market. It also helps to establish a relationship between you and your audience so that the two businesses can work simultaneously and create a strategy that is profitable to both. 

This is the power of content, which is only going to increase in the coming years as well. With the advancement in business and the opening up of several industries of different sizes, content writing will be highly in demand in India as well as around the world.

FAQ’s on Content Writing:

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Difference Between Machine Learning and Deep Learning

In today’s technology-evolving world, new technologies designed to make our lives easier are constantly being introduced to us. One of these critical technologies is AI or artificial intelligence. You may be familiar with artificial intelligence, machine learning, and deep learning. Sometimes, they’re even used interchangeably. But those terms are related, and have their own distinct meaning and they’re more than just buzzwords.

Deep learning is a subset of machine learning, and machine learning is a subset of artificial intelligence, also known as (AI). You can think of them as a series of working for concentric circles, with AI occupying the largest, followed by machine learning, then deep learning.

In simple words, deep learning is AI, but AI is not deep learning exactly. Machine Learning and Deep Learning are the two main concepts of Data Science and the segments of Artificial Intelligence.

Most people think that deep learning, machine learning,, and as well as artificial intelligence are the same things but in actuality, all these terms are different on their own but related to each other. In this article, we will learn the difference between machine learning and deep learning. But before learning the differences, let’s first have an introduction to machine learning and deep learning.

What is machine learning?

Machine learning refers to the study of computer systems that learn and adapt automatically from user experience, without being explicitly programmed and suggest to you the data.

With simple AI, a programmer can tell a machine how to respond to various sets of instructions by the hand-coding method. With machine learning models, computer scientists can “train” a machine by feeding it massive amounts of data.

The machine follows a set of rules known as an algorithm to analyze inferences from the provided data. The more data the machine parses, the better it can become at performing a task or making a decision.

How Machine learning works with an example

Music streaming service is Youtube music which learns your music preferences to offer you new suggestions according to the song you are listening to.

Each time you indicate that you like a song by listening through to the end or adding it to your library, the service updates its algorithms to feed you more accurate recommendations according to that previous song. Netflix, Amazon and Hotstar use similar machine-learning algorithms to offer personalized recommendations.

Some useful ML algorithms are

  • Decision Tree algorithm

  • Naïve Bayes

  • Random Forest

  • K-means clustering

  • KNN algorithm

  • Apriori Algorithm, etc.

What is deep learning?

Where machine learning algorithms generally need human correction to provide data when they get something wrong, deep learning algorithms can improve their outcomes through repetition, without human intervention.

A machine learning algorithm can learn from relatively small data sets, but a deep learning algorithm needs big data sets that might include diverse and unstructured data.

Deep learning is an evolution of machine learning. Deep learning is a machine learning technique that layers algorithms and computing units or neurons into what is known as an artificial neural network.

How Deep learning works with an example

Deep learning uses both structured and unstructured data for training. Virtual Assistants are cloud-based applications that understand natural language voice commands and complete tasks for you. Amazon Alexa, Siri, and Google Assistant are typical examples of deep learning.

They need internet-connected devices to work. Each time a command is fed to the assistant, they tend to provide a better user experience based on past experiences using Deep Learning algorithms. Some more  Practical examples of deep learning are a vision for driverless cars, money laundering, face recognition and many more.

Some popular deep-learning models are

  • Convolutional Neural Networks

  • Recurrent Neural Networks

  • Autoencoders

  • Classic Neural Networks, etc.

Difference Between Machine Learning and Deep Learning

Parameter

Machine Learning

Deep Learning

1) Data Dependencies Great performances on a small/medium data set. Great performance on a big dataset.
​2) Hardware Dependencies Work on a low-end machine. Requires a powerful machine, preferably with GPU: DL performs an amount of matrix multiplication.
3) Feature engineering Understand the features that showcase the data. No need to understand the feature that showcases the data.
4) Execution time From a few minutes to hours. Up to weeks. Neural Network needs to compute an important number of weights.
5) Execution time Some algorithms are easy to interpret some are almost impossible (SVM, XGBoost) Difficult to impossible

Machine Learning and Deep Learning Future

The possibilities for machine learning and deep learning will be high! The increased use of robots is a given, not just in manufacturing but in ways that can improve our everyday lives. Every industry will likely change, as deep learning helps things like a prediction.

On the financial front, machine learning and deep learning will help companies and even individuals save money, invest more wisely, and allocate resources more efficiently. And this is the beginning of future machine learning and deep learning trends. Many areas that will be improved are still only a spark in developers’ imaginations right now.

Conclusion

In this article we have given you all the basics regarding machine learning versus deep learning, its difference, meaning and future. Deep learning has attracted a lot of attention in those years, both in the academic and business sectors.

According to a survey about the state of AI in 2020 stated by McKinsey, AI adoption keeps adding value in ventures while deep learning use in business is still at an early stage.

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Here Are The Responsibilities Of A Company’s 17 Positions: From Highest To Lowest

Positions in the company or corporate titles are given to those who have a certain level of responsibility for a company’s success and profitability. They are the individuals who must strategize, plan and collaborate to keep a company or working for an organization operating efficiently.

Every organization exists and operates within a particular context. These contexts define the boundaries of how things function in organizations and shape the ways people behave in them. Every person or group in the organization plays a role and contributes meaningfully to its success.

People who assume responsibility for various functions of the organization, whether managerial or non-managerial, play central roles in shaping the organizational environment and subsequently influence the way people behave.

While some positions are clearly more challenging than others, there are a host of challenges faced by every employee throughout their career. Having a particular position in the company and responsibilities likely vary depending on each company and their needs. And they are the core of the workplace.

The position in the company is key to attracting talent and often represents an employee’s seniority on the team. In most cases, a position in a company will also let you know what department an employee works in.

Before joining a company, you should assess your skills, interests, motivations, and goals. Once you determine what kind of position will suit you best, you can apply for it and prepare yourself for success.

Position in a Company

A position in a company is simply a job title you take on as well as the necessary duties under it. When you fill a position in a company, you perform all the tasks the employer assigned to you in the initial job description.

There are many different levels, positions and types of employment, but all classes help assist with the day-to-day operations of a company. Within any successful organization, there are various job positions that have authority over others since higher-level positions manage entire teams.

There are three primary types of positions in a company: executives, management, and operational. Here is the guide to positions in a company and their responsibilities.

1. Director of Operations:

A director of operations is responsible for the profitability and growth of an organization. They collaborate with various departments to improve the functionality and processes of doing business for each department.

The role may also work with project managers for specific programs they need to develop budgets. Some companies have a chief operating officer (COO) and directors of operations positions. A director of operations will report to the chief operating officer in a company that has both positions.

Responsibilities of the Director of the operation:

  • Review, analyze and evaluate business procedures.

  • Implements policies that will improve day-to-day operations.

  • Ensures work environments are productive and safe.

  • Manage manufacturing, purchasing, and sales departments, ensuring each is reaching goals set by departmental and company leadership.

  • Planning, controls, implements, monitors, and forecasts budgets and costs of sales in each division to achieve financial objectives.

  • Oversees the Hiring and training of departmental managers.

  • Organizes and schedules departmental managers.

2. Vice President :

Corporate vice presidents are the second or sometimes come in third in command in a company, depending on the company’s specific structure. They may also have a specific area of expertise that they apply to their roles and responsibilities. This title is similar to or the same as chief of marketing or chief marketing officer.

 Some organizations have one vice president or multiple vice presidents depending on the size of their organization or the industry. Other vice presidents work in middle management and deal more directly with supervisors of middle management.

Responsibilities of Vice president :

  • Look after daily activity and productivity

  • Maintaining the company’s image

  • Overall budgets and goals for the director and managers in the firm

  • Working with the CEO and board of directors to uphold the company’s policies, strategies, planning and goals

  • Constantly keep reviewing the company strategy and innovations

3. Chief Executive Officer:

The CEO has authority over all other employees in an organization. All other C-suite executives and their teams report back to the CEO. Sometimes, the chief executive officer is a member of the board of directors, an elected body of stakeholders that own large portions of stock in a given company or the sole business owner.

Responsibilities of Chief executives officer:

  • Manages and directs the company’s primary goals and objectives.

  • Look after employment decisions at the executive level of the company.

  • Leads a team of executives to consider major decisions: acquisitions, mergers, joint ventures, or large-scale expansion.

  • Works with the board of directors and other executives to establish short-term and long-range goals & objectives, and related plans and policies.

  • Oversees the organization’s financial structure, ensuring adequate and sound funding for the company’s mission and goals.

4. Chief Financial Officer:

The CFO’s responsibility is to deal with all the financial goals of a company and report to the CEO. It takes years of experience in accounting, management, and plenty of relevant education to obtain a senior management position as a chief financial officer.

Responsibilities of Chief financial officer:

  • Manage the company’s financial planning

  • Perform risk management by analysing the company’s liabilities and investments

  • Decide on investment strategies and risks

  • Control and the organisation’s fundraising plans and capital structure

  • Ensure cash flow is appropriate for the organisation’s operations

  • Supervise all finance matters in the company

  • Prepare reliable current and forecasting finance reports

5. Chief Information Officer:

The CIO oversees all the IT–related information technology for a company. As a senior vice president or chief officer at a company, the CIO reports directly to the CEO or the president while managing a team of IT managers and specialists.

Responsibilities of Chief information officer:

  • Creating business value and goals through technology

  • Manage the development of customer service platforms

  • Approving IT architecture

  • Establishing IT policies, strategies, and standards

  • Developing and approving the latest technology

6. Chief Marketing Officer:

The responsibility of the CMO is to make decisions for the marketing department. Under the leadership of the chief marketing officer, various marketing specialists and managers implement social media strategies, digital marketing campaigns, etc.

Responsibilities of Chief Marketing officer:

  • Oversee a company’s advertising and sales strategy.

  • Drive revenue by increasing sales through marketing strategy.

  • Develop the structure of the marketing department.

  • Approve and create marketing campaign ideas.

7. Chief Operations Officer:

The COO’s responsibility is to operate at a company as a senior manager. As the daily operations manager, they work with middle managers as well as fellow C-suite employees to ensure day-to-day processes operate at maximum efficiency in the firm.

Responsibilities of Chief operation officer:

  • Implementing business operations.

  • Create policies that promote company culture and vision.

  • Implement business strategies, plans and procedures.

  • Set comprehensive goals for the performance and growth of the company.

  • Create policies that promote culture and vision.

  • Oversee daily operations of the company and the work of executives.

  • Submit reports to the CEO on all matters of importance.

8. Human Resources Manager:

Some companies might have a chief human resources officer (CHRO), while others will likely have an HR manager report to the COO. HR managers ensure every employee receives training and onboarding and has an avenue to raise concerns about their work environment basically overseeing the employees. Those in human resource management might also oversee recruiters.

Responsibilities of Human resources manager:

  • Recruits, interviews, hires and trains new staff in the company

  • Manage the daily workflow of the department.

  • Provides constructive and timely performance.

  • Manage discipline and termination of employees in accordance with company policy.

9. Information Technology Manager:

An IT manager likely reports to the CIO or CTO. One IT manager might oversee cybersecurity, while another might specifically run internal networks for the business.

Responsibilities of Information technology manager:

  • Organizing events to increase staff motivation and engagement in the workplace.

  • Analyzing data to calculate the cost-benefit ratio

  • Concern problems in the company’s supply chain through quality control checks

  • Create programmes for employees’ professional development.

10. Marketing Manager:

Marketing managers run individual marketing departments and supervise a dedicated public relations marketing team, whereas another marketing manager might look after a team of SEO-specific marketing specialists.

Responsibilities of Marketing manager

  • Strategy development and planning of campaigns that can promote and generate traffic.

  • Implementation of the marketing campaigns.

  • Creating engaging and informative content for the website, social media, and any other content marketing channels.

  • Building sustainable relationships and partnerships.

11. Product Manager:

A product manager’s responsibility is to oversee the development and improvement of products within businesses, whether that creates goods, services, or both.

Responsibilities of a Product manager

  • Understanding and representing customers’ needs.

  • Monitoring the market and competitive analyses.

  • Design a vision for a product.

  • Prioritizing product features.

12. Sales Manager:

The sales manager ensures sales representatives meet their quotas, improve their sales-related work, and operate as ideal company ambassadors. A sales manager also keeps updated with strategic planning for broader, long–term sales goals.

Responsibilities of a Sales manager:

  • Meeting the sales targets of the company through effective planning and budgeting.

  • Sets the targets for the sales executives and other sales representatives.

  • A sales manager must ensure the targets are realistic and achievable.

  • Understand who can perform a particular task in the most effective way.

13. Administrative Assistant:

Administrative assistants or you can say, executive assistants organize and plan the schedules of managerial or executive-level employees. They might just report to their immediate supervisors or to a chief administrative officer as well.

Responsibilities of an Administrative assistant:

  • Organize and schedule appointments for leaders.

  • Plan meetings and write minutes.

  • Write and distribute emails, memos, letters, and forms.

  • Create regularly scheduled reports.

  • Update and maintain office policies.

14. Bookkeeper:

Businesses need people to keep track of their financial status. That’s where a bookkeeper role comes in. These accounting professionals can eventually enter the ranks of management to become CFOs. The CFO (Chief Financial Officer) is the person responsible for managing the company’s financial operations and strategy.

Responsibilities of Bookkeeper:

  • Establishing different accounts for the company.

  • Maintaining records of financial transactions.

  • Defining bookkeeping policies.

  • Developing systems to account for financial transactions

  • Maintaining subsidiary accounts

15. Business Analyst:

Internal analysis to see how they can improve business. Business analysts work with COOs (Chief Operating Officers) and the departments under their supervision to encourage business development on all fronts.

Responsibilities of the Business analyst:

  • Analyzing and evaluating the current business processes and identifying areas of improvement

  • Researching and reviewing business processes

  • Training and coaching staff members in departments.

  • Developing and monitoring project performance

  • Working  with senior management, partners, clients and technicians

16. Sales Representative:

The Sales Representative is responsible for selling products and meeting customer needs to complete the potential sales outlets. They ensure that the customer is satisfied while making a purchase.

Responsibilities of the sales representative:

  • Review a company’s target market and identify avenues to generate new leads.

  • Creating a strategy for leads and reaching out to new clients using various channels.

  • Negotiating prices and closing deals with clients.

  • Participating in company meetings with sales leads to keep up with changes in the sales team infrastructure and updated quotas.

17. Software Engineer:

Software engineers are programmers who design new software for companies, improve existing programs and provide quality assurance for any upcoming initiatives developed in code. Software engineers can climb the ranks to become CTO  (Chief Technology Officers).

Responsibilities of the software engineers:

  • Execute full software development.

  • Develop flowcharts, layouts and documentation to identify requirements and solutions for the company.

  • Write well-designed code for the website.

  • Develop software verification plans.

  • Maintain software functionality

Summary

Positions in the company or Corporate titles are given to corporate officers to show what duties and responsibilities they have in the firm. Such titles are used by publicly and privately held for-profit corporations, cooperatives, non-profit organizations, educational institutions, partnerships, and sole proprietorships also considered corporate titles and in this article, we have covered 17 positions in a company.

FAQ’s:

Must read articles:

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The Finance Industry: An overview of its types, principles, and basic concepts

Finance is an essential part of any business; without proper financial resources, no business can run; the finance processes of having a finance goal can be related to planning, execution, control, and maintenance of financial resources.

Finance is the process of raising funds or capital for any kind of business expenditure which can be in the form of credit, loans, or invested capital to those economic organisations that most need them or can put them to the most productive use. The financial companies that channel funds from savers to users are called financial intermediaries.

They include commercial banks, savings and loan organizations, and such non bank institutions as credit unions, insurance companies, pension funds, investment companies, and finance companies.

What is finance? Let’s find out.

Finance is money management and includes investing, borrowing, lending, budgeting, saving, and forecasting. The study of finance helps us better manage our finances and invest wisely.

It involves the collection, analysis, and interpretation of data regarding the financing of companies and countries. Finance deals with both public (government) and private sectors.

There are two main ways to define finance: either as the study of economic activities (e.g economics) or as the theory of investments, banking system, insurance, credit, taxation, and money supply.

There are also three major components of finance: the economy, the markets, and organizations. These elements interact through the exchange of goods, services, assets, information, and ideas across borders.

There are three main types of finance:

(1) personal,

(2) corporate, and

(3) public/government.

3 essential types of finance

1. Personal Finance

Personal finance is for the person who needs it for any situation or activity. Therefore, related financial strategies depend largely on a person’s earnings, needs, goals, and desires.

Personal finance involves analysing the current financial position of individuals to formulate strategies for future needs within financial limits. Personal finance comes in a range of activities, including using or purchasing financial products such as credit cards, insurance, mortgages, and various types of investments.

Personal finance also involves planning, implementing, and managing financial activities that impact individuals. These activities can include earning five principles of financial transaction management.

The five principles of finance can be summarized as follows:

Consistency: Transactions must be handled in a consistent way. That is, policies and procedures have been established to address similar types of transactions in a routine way.

Timeliness: Transactions must be managed within a period of time consistent with time frames.

Justification: There must be a reason for the transaction that supports the project’s goals to guidelines outlined by federal agencies or a private sponsor.

Documentation: Documentation is important to support the transaction. It must be retained, organized, and complete enough to stand up to an audit.

Certification: Transactions must be approved and carry all the correct authorizing signatures for income, spending money, saving, investing, and borrowing.

2. Corporate Finance 

Corporate Finance involves the financial activities related to running a corporation division or department usually set up to oversee those financial activities. Startups may get capital from angel investors or venture capitalists in exchange for a percentage of ownership.

If a company thrives and decides to go public, it will issue shares on a stock exchange through an initial public offering (IPO) to raise funding. In other cases, to budget its capital properly and effectively, a company with growth goals may need to decide which projects to choose from finance and which to put on hold.

3. Public Finance

Public finance includes tax, spending, budgeting, and debt-issuance policies that affect how a government pays for the services it provides to the people. It is a part of the fiscal policy of the country.

The governments help prevent market failure by overseeing the allocation of resources, the distribution of income, and economic stability. Regular funding is secured mostly through taxation which people have to pay. Borrowing from banks, insurance companies, and other nations also help finance government spending.

How did the financial system develop?

The financial system plays an important role in the economy of the country. It enables the financial intermediation process which facilitates the flow of funds between savers and borrowers, thus ensuring that financial resources are allocated efficiently towards promoting economic growth and development.

Financial sector development is about overcoming “funds” incurred in the financial system. This process of reducing the costs of acquiring, enforcing contracts, and making transactions resulted in the emergence of financial contracts, and market intermediaries.

Financial Services – what are they?

Financial services are the services that allow people and businesses to acquire financial goods. An example is the financial service offered by a payment system provider when it accepts and transfers funds between payers and recipients. This includes accounts settled via checks, credit and debit cards, electronic funds transfers etc.

The financial services sector is one of the most important sectors of the economy. It helps drive a nation’s economy, providing the free flow of funds, capital and liquidity in the market. The financial services sector comprises various financial firms, including banks, investment houses, finance companies, insurance firms, lenders, accounting services, and real estate brokers.

When this financial sector and a country’s economy are strong, consumer confidence and purchasing power grow. When the financial sector fails, it can drag down the country’s economy as well.

What Are Financial Activities?

Financial activities are the initiatives and transactions that businesses, governments, and individuals undertake as they seek to complete their personal goals or economic goals. They are activities that involve the inflow or outflow of funds. Examples include buying and selling products or any kind of assets, issuing stocks, initiating loans, and maintaining accounts.

When an organization sells shares and makes debt repayments, it comes into financial activities. Similarly, individuals and governments are involved in financial activities when they take out loans and pay taxes, which further specific monetary objectives.

In layman’s terms, what does a financial statement mean?

A financial statement is a report that shows the financial activities of individuals and their financial performance. Lenders and investors use it to check a business’s financial health and earnings potential.

Financial statements can cover any period of time, although they’re most commonly prepared at the end of a month, a quarter, or a year.

Types of financial statement

There are four basic financial statements in accounting:

1. Balance sheet:

A kind of review of your business’s financial condition at a single point in time, it shows what you own which you can consider as your asset vs what you owe as your liabilities.

2. Income statement:

Also called a profit and loss statement, this report shows your business’s revenues and personal finance expenses or even your business. Expenses are subtracted from revenues to show your business’s profit or loss figure, which is known as net income.

3. Cash flow statement:

This report shows changes to the cash coming in and out of your business over some time. It only records cash and includes amounts received from lenders and investors. A cash flow statement shows whether you can cover short-term expenses like bills, employee payroll, etc.

4. Statement of changes in equity:

A statement of owner’s or shareholder’s equity, or statement of retained earnings, shows how much money your business keeps (rather than pays out to shareholders or owners). Often, these retained earnings are used to make debt payments or are reinvested in the company.

Important Terms related to finance

The finance terms you show know

  1. Accounts Payable

  2. Accounts Receivable

  3. Asset

  4. Balance Sheet

  5. Cash Flow

  6. Fixed Asset

  7. Income Statement

  8. Liability

  9. Profit & Loss Statement

  10. Annual Percentage Rate

  11. Collateral

  12. Loan-to-Value

  13. Debt-Service Coverage Ratio

  14. Lien

  15. Personal Guarantee

  16. Financial Statements

  17. Debt Consolidation

  18. Gross Profit

  19. Statement of Cash Flow

  20. Credit Limit

Is Finance an Art or a Science?

Financial planning can incorporate both art and science. As an art, it involves creativity, customisation and an individual’s behavioural relationship with funds. And in the scientific part involves mathematical calculations on amounts needed for various goals, and assumptions on performance based on views leading to certain decisions for investment reasons, whether should it be residential or commercial.

Finance Jobs: What’s the Pay?

Highest-paying finance jobs

  1. Insurance advisor.

  2. Financial analyst.

  3. Senior accountant.

  4. Hedge fund manager.

  5. Financial software developer.

  6. Private equity associate.

  7. Chief financial officer.

  8. Chief compliance officer.

Finance vs. Accounting: What’s the difference?

The basic difference between finance and accounting is that accounting focuses on the day-to-day flow of money in and out of a company or firm, whereas finance is a broader term for the management of assets and liabilities and the planning of future growth.

Accounting is more about accurate reporting of what has already happened in the past and compliance with laws and standards. Finance is about looking forward planning and growing money or losses.

Summary

Finance represents money management and the process of acquiring needed funds for personal or business use, Finance also encompasses the oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems.

There are four main types of finance: banks, institutions, public accounting, and corporate. Courses within the finance major offer a solid background in many subjects including Financial markets and intermediaries.

FAQ’s on Finance:

Must read articles:

– Why Financial Planning Is Necessary For Businesses?

– How women can become financially strong – Gemini Dhar




5 Important Strategies that Entrepreneurs in India Apply to Become a Unicorn

How should I start my entrepreneurial journey? Should I take investment or bootstrap my way into entrepreneurship? Is there anything else that I should keep in mind before starting off?

Entrepreneurship has always had its fair share of myths. Some believe that only rich people can run their own businesses while others say that they don’t have the skills required to succeed in running one.

Regardless of these misconceptions, some entrepreneurs choose to build something from nothing. This requires passion, determination, perseverance, and grit. While the path toward becoming an entrepreneur can be long and winding, there are certain things that can help.

In order to create value for themselves, entrepreneurs need to have the right mindset. They need to have the ability to look beyond limitations and accept challenges headlong. The road ahead can get tough and overwhelming, but staying motivated through thick and thin is key to building a successful venture.

Entrepreneurship has always had its roots in India. Indian entrepreneurship is now being seen globally. More than a decade ago, India was known to be a land of startups and entrepreneurs. Today, Indians are the largest number of startup founders and investors worldwide.

In the venture capital industry, the term unicorn refers to any startup that reaches a valuation of $1 billion. To become a unicorn startup, a company is required to reach an investor valuation of $1 billion or more, and there are only 554 unicorns worldwide in India, there are 106 Indian unicorns which have raised beyond $94 Billion in funding and are valued at around $343 Billion combined as of 2022.

The term was first coined by Aileen Lee, founder of Cowboy ventures when she referred to the 39 startups that had a valuation of over $1 billion as unicorns. The term was originally used to lay emphasis on the rarity of such startups and the definition of a unicorn startup has remained unchanged since then. However, the number of unicorns has gone up.

The term ‘unicorn’ originally refers to a mythical animal and is used to emphasize the rarity of startups having a $1 billion valuation. Only privately owned startups can become unicorns.

“Reporting by Inc42 shows that four out of the 10 fastest Indian unicorns are from the e-commerce sector. Some of the highest valued e-commerce unicorns are Flipkart, Meesho, Nykaa, and Cars24.”

Source: https://inc42.com/

India is developing rapidly because of its large population and huge potential. In addition, India offers great opportunities for entrepreneurship. Many young people who wish to start their own businesses turn towards such countries as China, Brazil, Russia or Indonesia, where the growth rates are higher. These countries also offer favorable conditions for new investments.

There are five important strategies entrepreneur in India apply to become a Unicorn  and create a company that impacts millions of lives. Let me give you a brief overview of each strategy and why they matter.

The Features Of Unicorn Startup

The process to be a unicorn is not easy and each and every unicorn has its own story and strategy. All the unicorn companies have a similar set of features that makes them unicorn startups.

1. Innovations for Consumers:

The unicorn companies have brought a disruption in the industry they belong to. They change the way people do things and gradually create a necessity for consumers. They are also known to rapidly innovate and stay ahead of their competitors.

The innovative strategies are what make them a unicorn company. Now let’s see an example of Airbnb which is known to have changed the way people planned their way while travelling. Another example you can take is Oyo, Oyo rooms have changed the way people used to book accommodation while travelling.

Paytm, particularly Paytm Wallet changed the way people paid for things offline and online. They all have the vision to become a daily part of consumers’ lives.

Innovating for consumers allows a benefit over the competition and helps the firm to become and, consequently, remain, market leaders in which they operate and manage to go through the demanding path that is to rule a new market through their product and service.

2. High Technology:

Most unicorn ventures have a business model which works on a higher level of technology.  According to the survey, almost 87% of the unicorn products are software, 7% of them being hardware, while the other 6% of them are based on products and services.

3. Consumer-focused startups:

Its main goal is to simplify and make things easy for consumers and be a part of their day-to-day life. Another main feature is keeping their products and services affordable.

Over 62% of the unicorns are particularly B2C companies.

Source: https://www.business-standard.com/

4. Privately owned:

Nowadays many known unicorn companies are privately owned which gets their valuation bigger when an established venture invests in them. It is because the company’s valuation boosts when they receive funding from established investors – both Indian and global. There are more than 361 private ventures around the world valued at over $1 billion. India has 16 of these companies, which are taking up 4% of the overall share.

5 Strategies Entrepreneurs in India do differently

While this unicorn startup strategy doesn’t guarantee that you’ll become a unicorn, it’ll help you to a better understanding of the processes and business strategies that startups utilize to succeed in their markets.

1. Start with growth-driven MVPs

  • A unicorn begins with building a Minimum Viable Product (MVP)

  • Identify the consumer’s problem and get a solution

  • Know your potential target market

  • Create a product or service that’s accessible, user-friendly, and cost-effective.

The purpose of building an MVP is to launch a product or service quickly, based on an idea, with a small budget. MVP development solutions let businesses collect users’ feedback for the primary product and include it in future production. With an MVP, one can find the right audience, pull the ideas based on experience, and save time.

Develop an MVP (Minimum Viable Product) features included

  • Test the MVP with customers to get feedback.

  • Make changes to the MVP based on feedback.

  • Calculate the costs to build the product or the service.

  • Build and launch your product or service.

2. Determine Your Business Model

Determining Your Business Model will help you to identify that your product solves real problems based on user feedback and develop a strong value proposition that sets you apart from others.

Price your product based on:

  • The value provides users

  • Competitor prices

  • Target market demographics

  • Select sales channels for your product or service

  • Execute a local or small-scale to validate your business model

  • Focus on delivering positive customer experiences

  • Gather customer reviews

  • Review your business model

3. Secure Funding

Funding in the early stages is perhaps the biggest hurdle you face as a founder. The very first round of funds for a startup in that pursuit of the first $1 billion comes in the form of funding. You have got investors or angel investors who could be friends, family, mentors, or the entrepreneur themselves backing the start-up.

Here are some more examples

  • Raise venture-backed capital through Series rounds

  • Prepare a pitch

  • Pitch to investors

  • Prepare for due diligence

  • Negotiate with investors and sign the contract

  • Launch a crowdfunding campaign

  • Communicate the benefits of investing in your company

  • Set a funding goal

  • Promote your campaign

  • Take a from Banks

  • Venture capital firms

  • Online business loan providers

4. Expand your startup

Great ideas don’t have value until you do something with them. What separates unicorns from the rest of the pack is that they have the right people, skills, tools, and data that can give you a strong base to work from in the rest of your business.

  • Ensure you have a great product which is market fit

  • Standardize processes for customer acquisition and sales

  • Develop advertising and marketing strategies

  • Expand your business to other locations/markets

  • Add new features or products to existing offerings

  • Build a team by hiring new talent

  • Create new departments according to the need

  • Attract new investors

5. Goal is essential

If you want to be a unicorn startup, you need to set your goal & work on it like one from the start. Assume that you’ll learn some hard lessons and fail along the way, but you should always manage as if you’re guaranteed success.

That is, any decisions you make or policies you define today should align with your long-term goals. As founders and entrepreneurs need to believe in their vision, goals, service & product, and people so strongly that your default assumption is a success.

Unicorn’s Companies Of 2022

  • Fractal, 
  • LEAD, 
  • Darwinbox, 
  • DealShare, 
  • Polygon, 
  • Livspace, 
  • ElasticRun, 
  • Xpressbees, 
  • Uniphore, 
  • Hasura, 
  • CredAvenue, 
  • Amagi, 
  • Oxyzo, 
  • Games 24×7, 
  • Open, 
  • Physics Wallah, 
  • Purplle, 
  • LeadSquared.

Summary

To become a unicorn startup, a company is required to reach an investor valuation of $1 billion or more, and there are only 554 unicorns worldwide and in India, there are 106 Indian unicorns which have raised more than $94 Billion in funding and are valued at around $343 Billion combined as of 2022.

According to the survey, almost 87% of the unicorn products are software, 7% of them being hardware, while the other 6% of them being based on products and services.

FAQ’s

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