Blog Page 239

How to Increase business by motivating your sales team?

You can increase your business by motivating your sales team. Motivated sales team brings more business. If you are facing challenge of retaining your manpower especially sales team this post is for you. In this post, I will share proven ideas to motivate your sale team without spending a single penny.

There are two ways to motivate your sales team. You can motivate your team by increasing salary or commission. It is one of the best motivation but during bad business scenario, it would be difficult for you to spend money.  So, here are 5 proven ways to increase business by motivating your sales team.

Increase business

How to Increase business by motivating your sales team?

#1 Freedom to share & implement new ideas

You should give freedom to share & implement new ideas to your sales team. It is proven way to motivate your staff. Doing routine work may become boring in few days. If your teammates come up with new idea you should encourage the same.

If none of the people are coming up with new idea you can keep brainstorming session where teammates can share ideas related to increase the business. The best and most promising idea should be implemented.  This will increase their confidence level and they will feel motivated.

#2 Run contest and celebrate with winners

The second proven way to increase sales is keeping contest among your sales team. This contest would be for daily, weekly or monthly basis. The salesman who achieved maximum sales can be given Title such as “Sales person of the day” or “Hero of the day” or “Star performer”.

In addition to giving title, you can celebrate success by arranging small get to gather. This could be small tea samosa treat. These small ways can motivate your sales staff to increase business.

How to Increase Business? – 5 Powerful Sales Techniques

#3 Set Target at the Starting of Month

You should set the target at the starting of the month. When you start your month without any target your energy gets wasted and you would not able to achieve anything in the last. Thus it is important to start month with target.

You should conduct meeting at the starting of the month and set target for the individual sales member. The target should not be moderate target. It should not be like that it can be easily achieved or tough to achieve. Make sure to write this target on the White board and update it on daily basis. Whenever your sales team see numbers on the white board they will stay focused and place efforts in increasing business and sales.

#4 Create atmosphere of competition and collaboration

Competition is important when it comes to increasing sales and business. The competition should be fair and healthy. You should create atmosphere or competition and collaboration in your company.

You should appreciate teammates who helps each other and work towards sharing knowledge with others. You should appreciate teammates who are key player and work in team collaboratively instead of pulling legs of other team members.

The positive atmosphere will surely help sales team to increase business.

#5 Make sales team feel valued

Your sales team should feel valued. In order to do so, you need to give attention to your team mates. You can make them partner in taking small but important decision such as where to keep stocks? which product to be ordered?  This will make them feel valued.

Appreciate your team members in public if they do good job. You should also participate in their happiness and grief. You can celebrate their birthday and job anniversary.

The bottom line is you should not take people working under you as taken for granted. You should feel them valued time to time. It is one of the best way to motivate your team member for increasing sales.

Over to you

I hope you liked ways mentioned above to increase business by motivating your sales team. I am sure if you follow the advice given above you will be able to achieve big sales target and grow your business.

Fundamental Analysis of the Stock – Important Factors to check

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What is Fundamental Analysis? How to do Fundamental Analysis of the Stock? These questions were asked to me by many blog readers.

Well, before getting the answers to your query. Let me ask you one simple question – How you select stock for investment? Your answer could be –

  1. I make investments based on the advice of friends and relatives
  2. I follow Stock Broker Tips for investing in the stock market
  3. I invest in a stock based on news associated with stock
  4. I do proper research and study about a stock before making an investment

I am 100% sure most of you would select option 1 to 3. Only few will select option 4. If you have selected option 4 you are in the right direction. Whatever you are doing in terms of research and study is known as fundamental analysis of the stock.

The synonym of fundamental is basic or essential. Whenever we purchase any product including food and vegetable we check the basic or essential elements of the product. We also check the price of the product before buying. It is nothing but fundamental analysis.

I hope you have got the answer to the question what is fundamental analysis? Now, let’s take a look at the second question.

fundamental analysis of stocks

How to do Fundamental Analysis of the Stock?

Fundamental analysis means checking the basic and essential elements of the company. In other words, you need to check the financial condition, the health of the business and analyze various other critical parameters before investing your money. I usually check the following factors as a part of fundamental analysis.

#1 Net Profit

The first thing you need to check is the net profit margin of the company. Net profit margin means profit that is generated after all types of deductions. It is profit after tax and after deduction of operating cost and overhead. Please note that Net Profit is not gross profit. A Gross profit is a difference between sales and the direct cost of goods sold before making any deduction. The net profit margin of the company should be consistent. In case the net profit margin is low or not growing it is not advisable to invest in such companies.

#2 Profit Margin

Checking the net profit of the company is not enough. You also need to check the profit margin. Profit margin is calculated on net income and revenue. The logic here is the increase in earnings of the company is good but it should not increase revenue cost. The profit margin shows how much money the company earns on its revenues. This analysis is more useful in comparing the similar type of companies.

The formula of Profit Margin is given below.

Profit margin= Net income/Revenue

The company should show a higher profit margin. A higher margin indicates the company is controlling costs incurred against competitors. This is usually calculated in percentages.

#3 Return on Equity Ratio

The return on Equity ratio is one of the critical factors to consider while doing a fundamental analysis of the company. ROE is the ratio of revenue and profit to the shareholders. To be more specific it shows how much profit a company can earn with the money invested by its shareholder.

The formula for calculating Return on Equity Ratio is given below.

Return on equity = Net Income / Shareholder’s Equity

The outcome of this ratio is in the form of rupees. This ratio contains important information about leverage, revenue, profits, margins, and returns to the shareholders. The ROE value should be higher.

#4 PE Ratio

PE ratio is also known as the price to earning ratio. It is commonly used to know the valuation of share.

The formula for calculating PE ratio is given below.

PE = Price per Share / Earnings per Share

The PE ratio is always calculated on the current price of the share. The PE ratio helps in understanding the valuation of the stock. Higher the PE ratio that means the share price is high compared to its earning. This ratio is used in comparing with other companies in the same sector or to its own historical PE.

#5 Price-to-Book (P/B) Ratio

The price to book value is another important ratio to consider while doing a fundamental analysis of the stock. This ratio is used to compare the stock market value with its book value.

The formula of calculating price to book value is given below.

P/BV Ratio = Current Market Price per Share / Book Value per Share

Book Value per Share = Book Value / Total number of shares

If the price to book value ratio is higher than 1 it denotes that the share price is higher compared to its book value. This ratio is generally seen to know the future prospects of the company.

#6 EPS

Earnings per share is one of the important parameters to check. The EPS shows the amount of money earned by the company per share. Higher the EPS better is the company. The EPS of the company should be increasing in a consistent manner.

The formula of EPS is given below.

Earning Per Share = (Net Income – Preference Dividend)/Weighted Average Number of Shares Outstanding

You should also compare the EPS of one company with another company in the same industry. The EPS of the company should increase steadily.

How to get data for doing fundamental analysis?

The data/information for doing fundamental analysis of the stock can be easily obtained from the financial statement of the company.

I generally make use of screener.in to get the stock-specific information.

You just need to visit the screener.in site and enter stock name. You will be able to see all financial information including balance sheet, P&L, financial ratios, peer comparison etc.

You can also export this stock information in excel for doing further analysis.

How you do financial analysis of the stock? Share your views and experience in the comment section given below.

7 Learnings from Scam 1992 web series – The Harshad Mehta Story

Scam 1992 Web Series – The Harshad Mehta Story is grabbing attention of everyone. Best dialog delivery, acting, story and learning of stock market. This web series has everything. In short time this web series has become top web series.

I watched the trailer of this web series on YouTube. The trailer was exciting and being a finance guy I could not resist myself from watching this series. I watched entire web series on SonyLIV. The web series is 10 hours long. It was great experience to watch the story of BSE’s Bachchan Big Bull Harshad Mehta. Entire 15 years’ stock market journey of Harshad Mehta is shown in this web series. How Harshad Mehta entered in the stock market? How he has grown so big? How he fought with his competitors Manu Manek, Radha kishan Damani and Rakesh Jhunjhunwala? What was 1992 stock market scam?

scam 1992

In short from Zero to Hero to Criminal the life story of Harshad Mehta is included in this web series.

After watching web series, I can say, this web series is simply superb!

I could learn lot of things from this web series and though to share with all of you. So, here is 7 Learning from Scam 1992 web series – The Harshad Mehta Story.

Also Read – Rakesh Jhunjhunwala Portfolio Holdings – December 2020

7 Learnings from Scam 1992 web series – The Harshad Mehta Story

#1 Leaning is Life –  सीखना बंध तो जितना बंध

Learning is everything. You can learn and earn. Harshad Mehta has zero knowledge about stock market when he started his journey. In order to learn stock market, he took job as jobber (dealer) at the initial stage. He was fast learner and he could learn stock market very soon. He soon opened his trading account and started making money. He had learning attitude and he applied his learning and intelligence in the stock market for making money.

The lesson learned here is one should never stop learning in the life. If you don’t have knowledge of specific field you can first do job in that field and once you learn you can start your own business.

#2 The biggest risk is not taking any risk – रिस्क है तो इशक है

The famous saying of Mark Zukerberg – “The biggest risk is not taking any risk” is shown very practically in this web series. Risk hai to Ishq hai is famous dialog of this web series. Harshad Mehta has taken risk in his life to enter in the stock market for making money. His decision of starting own in the stock market and money market was bold decision. The entire success of BSE’s Bachchan Harshad Mehta was on this decision.

The lesson learned here is one should take calculated risk in the life. Play it safe in life does not work if you want to have big success.

#3 Money attracts money – पैसा ही पैसे को खींचता है

Harshad Mehta has proved that money attracts money. You can make money from money in the stock market. You need to select right stock for investment at right time. Harshad Metha made a big money from the stock market. He used funds obtained from various sources to create bull run in the stock market.

The lesson learned here is if you have small money you can grow it to big money by doing business or by stock market investment.

#4 Team is Important –  टीम से सफलता की सम्भावना बढ़ जाती है

Team is utmost important in business and even in the stock market.  Manu Manek the Black Cobra shown in the series has made bear cartel (team of people) to control the stock market. The bear cartel was against Harshad. Even Harshad Mehta said he want to build team of 100 people to create history.

The learning here is to build a Fortune, First Build Great Team. High performance team is important to get success in the business.

#5 Become Expert in the Subject – ज्ञान ही शक्ति है

You should become expert in the subject which you are dealing with. The ability to understand stock market at the fullest was strength of Harshad Mehta. He could see hidden part of stock market as well as loopholes in the system. He could build investment strategies based on various indications. He could able to outsmart the bear operators and create bull run as he was aware of all happening of the stock market.

The learning here is you should have knowledge of subject in which you are dealing. You can make use of your expertise in order to get succeeded in life.

#6 Trust is Everything – विश्वास बनाये रखना बड़ी बात है

Trust is everything. Harshad Mehta has grown big and gained lot of fame. Many people were considering him as hero. He has gained unimaginable success. However, he became victim of own greed. He crossed the limit and entered in to illegal practice called as scam. Once scam details were out he lost all that he had including trust. The entire Indian stock market and banking system got affected by the scam and he was sent into jail.

The learning here is one should maintain trust of the people. Trust is utmost important for business and in every works of life. Second learning is you should never enter into illegal practices which are against law.

#7 Never make investment by taking loan – ऋण लेकर निवेश से बचे

You should never make any investment by taking loan. In order to make big money from stock market, Harshad Mehta has taken big loan. He has used unethical ways to take loan which he could not return. Stock market is sensitive and one cannot predict stock market moves. Better to take risk that can be calculated not like taking a blind risk like Harshad Mehta.

Learning here is never use illegal practice to take loan and second is never make stock market investment by taking a loan.

I hope above lessons would help you while dealing in business and in stock market.

If you have learned any other lessons from Scam 1992 web series and the life of the real Harshad Mehta, feel free to share your thoughts in the comment section given below.

NPS SIP – How to setup NPS SIP and get Same day NAV?

NPS SIP – The facility of doing SIP is now available for the NPS Subscribers. The new facility of NPS SIP is called as D-Remit facility. If you are NPS subscriber, you can transfer fund directly from your bank account using D-Remit facility. The same day NAV is applicable for the amount transfer using this facility. The entire facility is simple and hassle-free. You can make contribution on regular basis – daily, monthly or quarterly basis. It is just like mutual fund systematic investment plan (SIP) where money gets deducted from the bank account and investment is made in NPS units.

This facility will boost investment in NPS. It will also help investors in doing regular investment in auto mode. Here is step by step guide explaining – How to setup NPS SIP and get Same day NAV?

The pre-requisites of using this facility are

  • Active NPS PRAN
  • Mobile Number updated in NPS
  • Internet banking with any Bank

How to setup NPS SIP and get Same day NAV?

Virtual Account creation at NPS

1) To use NPS SIP or D-Remit facility, NPS subscribers requires virtual ID. This virtual id is to be created first before starting SIP. This virtual ID is also identified as virtual account. This account can be created on Central Recordkeeping Agency (CRA) portal for National Pension System. No additional cost is involved for NPS subscribers to avail the D-Remit facility by creating a virtual id.

2) The subscriber needs to enter PRAN number date of birth, captcha and request for OTP via SMS or E-mail. OTP will be sent on register mobile number or email id for verification of PRAN.

Virtual Account Creation NPS

3) The virtual id generation is a one-time activity and this ID is permanently attached to PRAN for the purpose of D-Remit. The separate ID is required for Tire 1 and Tire 2 Account.

4) These virtual IDs are unique for Tier I and Tier II NPS accounts. These virtual IDs are required only for remitting NPS contribution through “Direct Remittance” for all other purpose PRAN is required. SMS and e-mail alert will be generated and sent to subscribers once virtual ID is created and authorized. The information of virtual ID and IFSC will be shared with NPS subscribers.

NPS SIP or De-remittance via Virtual Account

Once information about virtual account and IFCS is known setting up NPS SIP is very easy. Follow the steps given below for NPS SIP.

Login to your Net banking portal via Internet banking user ID and password. After logging into the net banking, the subscriber needs to add the virtual id as beneficiary with the unique IFSC details of the trustee bank to transfer fund or set up auto debit from their bank accounts. The facility of NEFT/RTGS/IMPS can be used for this fund transfer. As per PRDRA the fund transfer made using D-Remit should have narration “NPS Contribution for D-Remit”.

NPS SIP Setup

Subscriber can enable SIP in their bank accounts through net banking by setting up standing or scheduling instructions for auto debit of desired investment amount on his/her chosen date.  As per the Net Banking features, Subscriber will also have an Option to decide the frequency of SIP (like monthly/quarterly/once in two months etc.)

The funds received on T day till 9.30 a.m on any working day (other than Saturdays and Holidays) will be considered for same day investment. The contributions received post 9.30 AM on T day shall be invested on the next working day (i.e) T+1 day Currently NPS contributions received through e NPS/ POPs are invested as on T+2 days. Hence D Remit optimizes returns on NPS contributions by advancing its investment substantially.  There is no additional cost to avail the facility of D Remit for creating Virtual ID.  The minimum amount contribution via this facility is Rs.500.

Benefits to NPS Subscribers

NPS subscribers will get following benefits by using this facility.

  • Ease – One can invest in a disciplined and phase manner using SIP
  • Power of Compounding – Better long term benefits compared to one-time investment
  • Rupee Cost Averaging – No need to time the market 

Over to you

Do you think NPS SIP facility will be useful to NPS subscribers?

Are you planning to use this NPS De-Remit facility?

Share your views in the comment section given below.

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