Building BusinessServices

Section 03

Business basics

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Twelve short guides that explain the money side of a business in plain words, with worked examples and the official rules behind them.

guides
12
minutes to read them all
75
official sources cited
19
  1. 01What a business is: income, costs and profitA business sells something people pay for, at a price above what it costs to make and deliver. This guide explains income, costs and profit with one simple example.5 min read
  2. 02Profit vs cash: why profitable businesses still run out of moneyProfit is a number on paper. Cash is the money in your account today. A business closes when cash runs out, even if the books show a profit.6 min read
  3. 03Working capital and credit cyclesWorking capital is the money tied up in stock and customer credit while you wait to be paid. Learn to count your cycle in days and how to shorten it.6 min read
  4. 04Break-even and pricingBreak-even is the sales level where you stop losing money. Pricing decides how quickly you reach it. Compare cost-plus pricing with market pricing using one worked example.7 min read
  5. 05Fixed vs variable costsSome costs stay the same whatever you sell; others rise with every unit. Knowing which is which tells you how risky your business is and how fast profit grows with sales.5 min read
  6. 06Reading a project report (DPR)A Detailed Project Report (DPR) is the document a bank or scheme reads before funding you. Learn what each section means and the red flags to check before you sign it.7 min read
  7. 07How a bank looks at your loanBanks judge a loan on five Cs, on whether your cash can cover the instalments (DSCR), and on security. RBI rules now bar collateral on MSE loans up to ₹20 lakh.7 min read
  8. 08Choosing a business structureProprietorship, partnership, LLP, One Person Company or private limited company: compare who is liable for debts, what it costs to run, and how much paperwork each needs.7 min read
  9. 09GST basics for a small businessWhen you must register for GST, when you can stay out, and how the composition scheme works for small traders, manufacturers, restaurants and service providers.7 min read
  10. 10Keeping books and recordsSimple, regular records tell you whether you are making money, help you get loans, and keep you safe in a tax check. Here is what to keep and a 15-minute daily routine.6 min read
  11. 11Hiring your first peopleWhat to set up before your first hire, and when Employees' Provident Fund (EPF) and Employees' State Insurance (ESI) become compulsory under the Code on Social Security, 2020.6 min read
  12. 12Grit: staying in businessMost small businesses do not fail on a bad idea; they fail on cash, one big customer or slow decisions. Here are the common reasons, and the habits that keep a business alive.6 min read