Limited Liability Partnership (LLP) is slowly becoming quite favorable for an e-commerce. LLP is a partnership where the partners enjoy limited liability. In case of bankruptcy, the personal assets of partners are not affected as the company becomes a separate legal entity in front of law.
The following are the features of a LLP:
- Separate legal entity
- Minimum 2 partners required whereas, no limit for maximum partners
- Limited liability
- No minimum capital contribution
Starting e-commerce business with partnership is more suitable for e-commerce than sole proprietorship. It is a form of business where more than one individual is the owner. They share management as well as profits and loss.
The features of Partnership are:
- Not a separate legal entity
- Unlimited liability
- Minimum 2 and maximum 50 individuals can make a partnership
- Partners are mutual agents
- Oral or written agreement
- A partnership deed has to be made and maintained
The advantages a partnership enjoys are listed below: (more…)
A private limited company is a type of company which allows limited liability to its share holders. Pvt ltd co is the most popular form of business for an e-commerce model.
If we consider other forms of business we will vividly understand why a pvt limited is most favorable.
- Limited liability: If a person has a proprietorship, being the owner, he enjoys all profits and suffers all losses and in case of any default in loan payment, his personal assets can be sold by the bank to repay the loan. Same goes for a partnership form of business. It is only in a pvt ltd, that the shareholder pays nothing.
- Existence: a business is the result of our hard work and dedication. Shareholders are mortals, they have an expiry date. With a proprietor’s death, his company dies too, as the proprietor and business are same in the eyes of law. Same happens with a partnership. In case of a pvt ltd company, the death of a shareholder doesn’t culminate in the shutting of the company. It enjoys immortality in the eyes of law.
- Transferability of shares: in a partnership, the partner’s ratio of share capital decides their profits and losses. A partner cannot transfer his shares, as it is not allowed. But in a pvt ltd company, a shareholder can sell his shares at any time. But, he must approach his fellow shareholders first, provided they deny, he can sell them to a new shareholder. This ensures the longevity of the company.
- Raising investment capital: an increased capital investment helps a business very much. But neither a proprietorship, nor a partnership can pool in investment after its incorporation from people other than themselves. It is only a pvt ltd that allows creating new shares and selling them to increase its capital investment. It is a great opportunity to gather capital. Making pvt ltd most desirable.
To register as a pvt ltd co, the following documents need to be submitted with the registrar. (more…)
E-COMMERCE AND SOLE PROPRIETORSHIP
E- commerce is the place to be for small and big businesses. An e- commerce can be registered as a sole proprietorship. It is one of the most common types as it is very easy to handle. It is most suitable for small startups.
Sole proprietorship possesses the following features:
- One man show
- Unlimited liability
- Maximum and minimum member is 1
- Easy setup and closure
- No separate legal entity
- Nominal cost
Sole proprietorship offers a great number of advantages. They are: (more…)
Startup India is a scheme launched by Shri Narendra Modi, Prime Minister of India on January, 2016. Under this scheme startups would be given certain benefits and exemptions for operations.
Which businesses are termed STARTUP under this scheme?
All businesses cannot be called startups and must fulfill certain criteria to be termed one.
- It must be registered as a private limited/ LLP/ partnership.
- It must not be older than 5 years on the date on application.
- The business should have a turnover of less than Rs. 25 crore.
- Startup must work towards innovation, development of new products, processes or services with technology or intellectual property.
- Certificate from Inter-Ministerial Board is essential to get 3 year tax exemption.
- Letter of recommendation for innovative nature of business from incubators.
What benefits and exemptions do the startups get? (more…)
A webinar is a seminar or conference conducted over the internet. Webinars connect people over different locations to share information and interact. Meetings, workshops, educational lectures can be done through webinars. Webinars can also be recorded and later shown, but this eliminates the interaction. They include power point presentations, videos, and interactive question answers.
Why use webinars?
Businesses can use webinar for the following reasons:
- Promotion of products: a business house can host a webinar to promote a product wherein a video clip can be showed regarding the product and then redirect to the purchase page.
- Build contacts: a webinar is great to introduce a business in the industry and make contacts with customers. It helps in building a brand name.
- Make an impression: webinars put a business ahead in the industry. It puts the business into direct interaction with users and helps build up an image for itself.
- Communication with clients: webinars prove to be direct and better communication with clients and help build up a relationship with them. Client training sessions, product release updates and question answer sessions provide a platform to grow a personal relation with clients.
- Adds value to business: webinars create a global presence for the business. It creates a big global market and enables to handle employees from remote places.
- Sales lead: with webinars the company can turn the participants into customers. This gives them a lead in the sale of their products.
- Low expense: webinars require very low cost to set up and are a lot cheaper than the traditional seminars. It also eliminates the cost for travel.
- Profit: when business expertise in topics related to industry, they can charge a sum for viewing the webinar to viewers.
What are the advantages of using webinars? (more…)
Viral marketing is a technique to use pre-existing social networking sites to increase brand awareness. It is a technique where a company cleverly induces users to pass on their advertising in forms of jokes, memes, videos and games. This type of marketing simply relies on users sharing the content. It can be categorized into intensive based, pass along based, trend based and undercover based.
A viral message too therefore, needs to be captivating, interesting, sufficiently attractive and social to be passed along on various sites. The content is the king.
What are the basics to be followed for successful viral marketing?
For successful viral marketing, three basic criteria must be met. They are:
- Messenger: market maven, social hub and salesperson are required to make a message viral. Market mavens are the persons who identify a message and turn it to their immediate social networks. Social hubs are network builders who know a thousand people and connect different sub cultures. Salesperson is the mediator who transforms the message from the maven to a more persuasive one and then forwards it to the social hub. These three messengers play the most crucial part by transforming an ordinary message to a viral one.
- Message: a message should be interesting, captivating and memorable to be passed along. It should be engaging and unique and at the same time, it should compel users to share it. It must earn the “must-see” tag.
- Environment: it refers to the correct time and occasion for a certain message. A message on the wrong time can prove to be disastrous.
Payment Gateway is the door to accept customer payment and to ensure that funds are available for payment to eCommerce. Online business needs an online procedure to accept payments from customers. There has been an increase in the number of payment gateways since the inception of eCommerce businesses. Previously the setting up of payment gateways involved a lot of lengthy procedures. But now, it has become quite easy as it involves only a few steps.
However, as there are numerous gateway options, it becomes difficult to select one. The following criteria will help a business zero-in on one payment gateway.
Mobile marketing is a very important part of digital marketing. As the use of smartphones have increased in recent years, they prove to be great for marketing and also tracking customer behaviour. Mobile marketing is done through smart phones. It provides time and location sensitivity and personalized information.
What are its advantages?
Smart phones have become a necessity and no longer a luxury item. Everyone who can spend a little over RS. 1500 can get their hands on a smart phone. With this increased popularity has grown the marketing industry. Advertisements through mobiles are the most significant one and most convertible as people spend maximum time on their mobile devices. The various other advantages are: (more…)
E-mail marketing is the marketing through use of emails. E-mails are generally broad casted to addresses in the database. Emails are used to send ads, requests business, promote sales. These emails contain images, graphics, and banner with text which inform the recipient about the business.
Why is it used?
E-mail marketing is essential tool of marketing as it enhances business and makes possible retargeting. E-mails are sent to new and existing customers. Not just promotions, emails regarding feedbacks and survey reviews are also conducted to establish a stronger bond with the customer. It increases loyalty, and convinces customers to buy again.
What are the advantages? (more…)