Profitable way of investing in Gold.

Investment in gold is a good option if you have dead income & you are planning to invest in some other division to make your portfolio more diversified. In one of my previous blogs, I told you, 3 reasons why to do investment in gold.?.  Once you plan to invest in gold, the next question will appear, i.e which options will be profitable for gold investment.

Because normal people tendency is, they purchase gold in form of bars, coins, jewellery or purchase gold certificate from a certified seller. Now the scenario has changed. The investor has In many other options are available for gold investment.

In this blog, I’ll give you through comparison between each option, which give you better clarity about the investment of gold.

Let first understand the options available for investors.

1. Physical gold
2. Gold ETF (Exchange-traded funds)
3. Gold Mutual Fund
4. Sovereign gold bonds
5. Digital gold

Sr.No	Factors	Physical Gold	Gold ETF	Gold Mutual Fund	Digital Gold	Sovereign Gold Bonds
1	Charges (calculate % w.r.t to purchase price of gold)	Making charges (5%-10%, storage &security expenses (2%) & GST (3%)	Total cost would be (0.5% to 1%). This include ·       Brokerage ·       Expense ration	Total cost would be (0.5% to 1%). This include ·       Brokerage ·       Expense ration	GST & spread (i.e. processing & transactional charges)	No charges.
2	Minimum Investment Amount	Minimum INR 48000rs/- for 10gms (W.r.t current market rate).	Minimum investment INR 4800/- for 1gms. (W.r.t current market rate).	Minimum investment INR 100/-	Minimum investment INR 1/-	Minimum investment INR 4800/- for 1gms. (W.r.t current market rate).
3	Purchase/ Platform to invest in gold	From jeweller	GROWW, ET NOW, ZERODHA etc trading platform.	GROWW, ET NOW, ZERODHA etc trading platform.	Bank, GROWW, ET NOW, ZERODHA etc trading platform.	Post office, Through Net banking (Nationalize Banks) & ZERODHA Platform.
4	Seller	BSI trademark jewellery must purchase.	SBI Gold ETF; HDFC Gold ETF; UTI Gold ETF; Axis Gold ETF; ICICI Prudential Gold ETF; IDBI Gold ETF	Axis Gold Fund; Aditya Birla Sun Life Gold Fund; Canara Robeco Gold Savings Fund; HDFC Gold Fund; ICICI Pru Regular Gold Savings Fund.	Augmont gold, Safe gold & MMTC-PAMP India Pvt. Ltd.  (These are leaders in the digital gold market)	Through RBI you will get a digital gold certificate
5	Key Risk Factors	Theft, Purity Issues, Loss during manufacturing	Market risk related to the volatility of gold prices	Market risk related to the volatility of gold prices	SEBI & RBI doesn’t have control over the seller	Market risk related to the volatility of gold prices
6	Advantage	keeping physical gold for function then not a bad decision.	You can liquidate the gold at any point in time & redeem your money.	You can liquidate the gold at any point in time & redeem your money.	You can liquidate the gold at any point in time & redeem your money. But while the redemption seller will charge some amount.	You will get 2.5% interest of your investment every year. Earnings are free from all duties.
7	Disadvantage	You won’t get satisfactory amount while selling off your gold. Because Jeweller will consider their profit.	You will charge by short term capital gain or long term capital gain w.r.t investment period while redemption.	You will charge by short term capital gain or long term capital gain w.r.t investment period while redemption.	You will charge by short term capital gain or long term capital gain w.r.t investment period while redemption.	8 years locking period & prematurity can be done after 5 years.
9	Profitable investment option	Bad option for investment perspective	Good option	Good option	Not preferable in comparison with gold ETF, gold mutual fund & SGB.	Very good option if you don’t have a problem with the locking period.
10	99.90% 24Karate Gold certificate.	Purity will be doubtful & questionable.	You will get a certificate but you can not convert it to physical gold.	You will get a certificate but you can not convert it to physical gold.	You can convert in physical gold but some charges may apply.	You can get a certificate but you can not convert it to physical gold.

 Conclusion:

Choices of options will depend on everyone conditions. But if you want to invest money in GOLD in long run then prefer Sovereign Gold Bonds. Because you receive regular interest during the investment period, But you are looking for investment in the short run i.e. no more than 3 years, you can opt for Gold Mutual Funds or Gold ETFs, which have high liquidity and availability.

 

3 Reasons Why to Invest in Gold.?

It’s natural and even very important for an investor to check whether an investment in a particular asset is a good investment or not. More sensible in the case of true for gold. In India, people hold the gold for their future plans like marriage & other cultural rituals, convert black money into physical gold or gold certificate, and other personal financial goals depending upon ambition.

As a being of entrepreneur/ service class person, 

Why would you invest in gold?

• Use as a currency.

In the global market gold is the only currency that has completed around 3000 years in the global market. It has the longest currency track record as compared to other currencies. In the global market there other currencies are available which has more value as compared to gold. But if we compared the track record of gold vs other any currency, gold has more long-term holding value.

Keep in mind that gold always has some value & you sell it when you need currency. That is the reason you need to add gold investment to your portfolio.

• Inflation Hedge

As we all know, inflation rises, the value of the currency goes down. Except for gold. In long run, almost all currencies depreciated over the period of time but the gold price increases. Also when inflation rates exceed the interest rate the saving instruments may not pay well, but gold pays the fare amount. This is how gold acts as an inflation hedge.

Keep in mind that, Gold has its own real rate of return.

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• No specialized Knowledge is Required.

Buying gold is way much straight forward. No training, equipment, tools & tackles are needed to recognize the gold.  As nowadays we can buy gold in physical form or in digital form as per our storage & security requirements.

Other Benefits like you can take the loan against gold, easily transferred to next-generation, a value never affected due to geopolitical tension, easily liquified in any shop, best replacement of stock & real estate market investment and does not deteriorate with time,

Image credit goes to the respective owner

Conclusion:

Make your financial profile more diversified. Because if inflation occurs, the value of your equity-based investment goes down but the value of gold arises dramatically. 

How to do Cross Culture Negotiations

Before any professional international or domestic negotiations, we always do some strategic planning or homework about tomorrow’s face off. While planning we always do some research & think about some factors like time, setting arrangements, situation, stakes of opposite parties, history of the parties, individual preferences, mood and nations of all the chaired persons. 

In an unidentified article, a Japanese journalist describes that “U.S negotiators are stubborn to agree”.

In this section, I’ve comprehended top countries negotiation approaches in terms of behaviour pattern, tactical style and cultural perspective. 

These could help negotiators and mediators prepare negotiations strategy for possible pitfalls to occur due to cross-cultural factors.

Kindly Note: Below approaches are only guidelines. It won't apply in every circumstance of negotiations.

The U.S. Approaches Negotiation

• U.S. negotiators are autonomous, independent, self-reliant and tend to think individually. They love to work singly rather than as a segment of a crew. They focus on one problem at a time

• U.S negotiators have a very much competitive approach in negotiations. If negotiation goes in a fall-back position then, negotiators come up with unrealistic offers and try to make a win-win situation.

• U.S negotiators are very much energetic, confident, and enjoy debating their positions.

African Approaches to Negotiation

African follow ancestors formal laws, regulations & give more emphasis on hierarchies. While cross-cultural negotiation both parties admire the laws & regulations made by their ancestors. The aim of  this is to get a positive outcome without any distress or hurt

Japanese Styles of Negotiation

Japanese negotiators are focus, interdependent and have a hierarchical orientation.

Japanese negotiators are known for their courtesy and try to establish connections before the negotiation begins. Japanese negotiators tend to put less emphasis on the literal meanings of words used in negotiation.

European Styles of Negotiation

European styles of negotiation vary according to territory, community, language is spoken and many other contextual factors. 

One group study found the French negotiators are very aggressive to achieve their goals. German and British negotiators were evaluated as moderately aggressive in the same study.

Latin American Styles of Negotiation

Latin American negotiators believe in systematic works & believe in associations.

In Central America, people respond to conflict very holistically rather than a linear, analytical one.

When Central American negotiators needed help while negotiations, they tend to look inside partials rather than outsider neutrals, 

They referred to the concept of confianza. Confianza means "trustworthiness," that "they know us" and "we know them" and they will "keep our confidences."

The Evolution of Negotiation

The above approaches of negotiation across national cultures are changing constantly. International business culture tends to privilege Western approaches to negotiation, centred on problem-solving and linear communication, as do many settings. As Western norms are balanced with Eastern and Southern values, and local traditions are balanced with regional and national approaches, negotiation practices continue their global evolution.

3 Principles for Successful Financial Budgeting & Forecasting.

Cash flow, budgeting forecasting,  etc. term which invokes headaches for many entrepreneurs. But for long-term growth, these few things will be more important for the long-term health of your business.

Budgeting & financial forecasting will help you have a clear understanding of your income and expenses so we can make smarter decisions about investment, expanses & to take control over our cash flow. As we all are aware practically business most of the time sooner or later strike with inevitable downturns. Cumulation of all financial budgeting will help us to understand what needs to be done to become more efficient and profitable.

 

By taking control of our budget today, we need to know three principles for successful financial budgeting & forecasting.

1. Identify All Sources of Revenue & Expenses

For financial budgeting & forecasting initially we have to start with the basics. That means identifying all the sources of income and expenses so we can have a better idea of how much money comes in and goes out each month.

After identifying revenue streams many entrepreneurs fails to track their expenses. Because every business has significant fixed and variable expenses month to month.

Let collect cumulative data of a 12-month period. Variations in income and expenses will give us a clear picture of what our profits looked like for each month.

2. Track Your Financial Data.

Monitoring past performance is one thing — but managing the cash flow is a continuous process. Because of this, you need to set up tools that will allow you to track your income and expenses on an ongoing basis. While past performance is helpful, understanding your current situation is ultimately what matters most.

Fortunately, in today’s time, many supply chain automation tools are available in the market which helps to track product sales, how much we’ve spent on key supplies, Sales, purchases & other financial data standardize automatically & all the latest figures in one place. Hence reducing staff’s workload. Vice versa if the finance team working with Excel, it can take weeks to obtain an updated “big-picture” view.

3. Secure Your Future

If your budget is securing the business with unexpected setback then only our budget called as successful budget. By analyzing past trends with our business, we can better predict future fluctuations in profit, expenses, and expansion.

By carefully analyzing the past and continuing to collect financial data from automation tools, we can predict future financial trends with confidence. Though the exact numbers will likely vary from year to year, this advance planning ensures that our budgeting appropriate at all times.

Conclusion:

By taking control of our budget today, we ensure that our business will still be here tomorrow. Though finances are hardly the most glamorous aspect of running a business, giving them the attention they deserve will help you have the financial security your company needs to thrive.

 

Transformation Leader: John D. Rockefeller.

 Profile & Short Description about John D. Rockefeller

Name	John D. Rockefeller
Parents	William Avery Rockefeller
Spouse	Laura Speiman
Born Date	July 8, 1839
Died date	May 23, 1937

In the world of history, John D. Rockefeller was the first billionaire and American oil entrepreneur. He was not rich with wealth but also from the heart. John D. Rockefeller first major philanthropist in the world because he gave huge wealth portions to the community. 

Why Rockefeller on the list of transformational leaders? 

Rockefeller had all the qualities of transformation leadership like he always maintains their ego in check, he had a skill of self-management and could take accurate risks difficult situations.

Here are Three Personality Traits that Gave a Unique Identity & Post of Transformational Leader.

Participative Leadership Style:

Rockefeller always encouraged the sub-ordinate & give chance to participate in the decision-making process and always provide continuous support, motivation, and encouragement to the workforce.

He always works in collaboration with the members of the team to determine the requirement of change, establish a vision for change with the help of member and thus implement the change in tandem with the committed group members.

Authenticity.

Authenticity is all about being honest and genuine regarding beliefs, values, and personality. This is the most important trait of Rockefeller. He was a highly integrated person and never compromised on things that hit his level of integrity. Being authentic made him a successful businessman & philanthropist. In any instance, Rockefeller did not compromise his values, personality, beliefs, and integrity. He always demonstrated positive behaviour and expected the same from his team. Thus, one of the most noteworthy traits of Rockefeller's personality reflected in his entire journey of leadership.

Flexibility & Adaptability

Rockefeller was flexible and adaptable. And could adjust in any context of different situations. During his operations, he accepts positive changes, revised plans as to when need and looked at the subordinates concerned during the implementation.

Conclusion:

Rockefeller had very good abilities to make a decision. He was more contingent in nature. His leadership style changes depending on the situation at hand. He was very curious about the sound implementation of the decision-making aspects. In addition to this, he was also very supportive of the workforce. He always provided continuous support to the workers and being participative and accomplished goals effectively and soundly. 

Also read:

Minda Dentler. True Example of Never Give Up

The Transformational Leader:- Cyrus the Great

Great Transformational Leader:- Mahatma Gandhiji.

Has a Feeling of Insecure Overachiever..??—Here is a solution

 In the corporate environment, one word is very much popular i.e “insecure overachiever.”…!!

In an organization when an employee work as a supernumerary person, too much disciplined, ambitious & ethical about his works but has a deep sense of inadequacy & constantly feel like they are not enough, such a kind of person known as “insecure overachiever.”

Insecure overachievers are always suffered from chronic stress related to illness. Because they overwhelmed with self-doubt, negative working stress & not indulge with family, friends & personal hobbies. However, they feel their personal as well as in professional life aren’t going in the right direction. Eventually ended up with one question i.e...

What is Happening in My Life…!!! 

But, 

In the corporate environment, many folks are doing less and work less than 30 hrs, travel different cities and getting paid millions of bucks & some are work like grinding themselves but barely get some something.

Then, 

How to perform well in the personal as well as professional life without a feeling of Insecure Overachiever

Change Your Poisonous Mindset.

All performers in the corporate world have a mindset that success needs hours of sacrifices. This not a fact..!. 

Excessive Hard work, overwhelmed work ethics & disciplines hurts your professional deliverables, personal life & holding you back from the next version of yourself. 

Put Yourself at the Centre of Your Life

Stop sacrificing your time with your spouse, stop skipping your workout time, No more skipping time with your friends. Love, happiness make your life more sustainable. When you force yourself to live a life as you love, it makes you more productive & efficient in your professional life as well as in your personal life. 

Money & Happiness is something you have to earn. When you receive both ingredients means you are a successful person.

Conclusion:

Positive mindsets, spending quality time with family, friends, children & spouse are the only ways to protect yourself from the feeling of Insecure Overachiever.

Prepare Your Business Plan- Step By Step Guide for Entrepreneur.

Let first understand what is business plan..?

A business plan is a formal accounting statement that numerically describes business goals, strategic financial plan and managerial steps for reaching those goals.

Generally, a business plan is synthesizing many different interdisciplinary concepts like business administration, accounting, banking, corporate Finance, management, promotion & marketing etc and all.

Before beginning with the step-by-step procedure about the writing of a business plan we need to understand some basics of financial management.

 let first understand the definition of some budgeting terminology.

Sales budget –  An estimate of future sales, often broken down into both units and dollars.  It is used to create company sales goals.

Production budget – An estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labour and material.

Cash flow/cash budget – An estimation of future cash receipts and expenditures for a particular time period. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.

Project budget – Costs associated with labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used to establish a project budget.

Balance sheet –Sheet represent assets, liabilities and differential net equity.

Income statement (profit & loss account) – Sheet represent revenues and costs.

Cash flow statement– Sheet represent quantity & quality of liquidity created &                                               absorbed.

Now Step by Step Guide to Outline Your Business Plan.

Step no: 1

Start your business plan by analysis of Your Potential Markets. Which mean who want your product or service?

Step no: 2

Define your Company goals, vision and what products and services will you produce or provide?

Step no: 3

How will you distinguish your product or service from others?

Step no: 4

How will you reach your customers and what will be your marketing champing strategy?

Step no: 5

Sales Effort: How will you attract customers?

Step no: 6

Workforce management: How will you hire and organize your workforce?

Step no: 7

Identify Company’s Initial Needs: What will you require to get started?

Step no: 8

Funding Sources: Where will you find your financing? 

Step no: 9 

Explain Your Financial Data: How will you convince others to invest in your endeavour?

Step no: 10

PESTLE and SWOT analysis

PESTLE: Strategic methodology to determine external forces that impact your business plan. comprehensively using Political, Economic, Social, Technological, Legal, Environmental trendy analysis for reviewing the macro environment.

SWOT: Structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project, to consider if the objective.

Step no: 11

Risk Analysis

Risk is a concept that identifies a possibility & measures the expected probability of specific eventualities (possible states of the world).

 It can be done two method

• Upside and downside risk, as a consequence of revenues' volatility
• Sensitivity and scenario analysis.

Kindly Note: 

First draft your business plan. At first, do not worry about capitalization, punctuation, and grammar. All you need to worry about is putting your ideas down on paper & prepare an effective and efficient business plan. Once a draft is ready, begin proofreading correct all the mistakes that you can find.  Organize your plan in a way investors find useful

In the end

Writing a plan is a difficult exercise, but it’s an important one for the future of the business. A business plan is not just about attracting investors but helps you organize your business better, with one document.