SME Digital World

Author: SDW Editorial Desk

How to choose the right emailing solution

How to choose the right emailing solution

In today’s fast-paced workplace, efficient communication is crucial for productivity. This is particularly true in high-volume industries like shipping, where streamlined communication is essential for smooth operations.
Although email serves as a versatile communication tool, it can become time-consuming and tedious without proper management tools.
The effectiveness of your team’s collaboration and communication hinges on the email software you choose.

What is Email Marketing?

Email marketing is a direct digital marketing approach that utilizes emails to engage with a business’s audience. It involves sending promotional or informative content to subscribers. Typically, email marketing aims to raise awareness of products or brands and generate leads or sales.
This marketing method plays a crucial role in a company’s overall strategy, aiding in the development of customer relationships and maintaining engagement between purchases. As an email marketer, you have the privilege of being a guest in your customer’s inbox, allowing for more personalized communication and connection.

Email marketing Software

Various vendors offer email marketing services in the form of software. These programs equip businesses with essential tools for creating and executing email marketing campaigns, including templates, email design tools, and contact management solutions. Once you’ve crafted your message and chosen your target contacts, the service handles the email distribution from its servers.
Additionally, email marketing software services offer diverse analytics to enhance your campaigns. You can monitor metrics such as open rates, bounce rates, unsubscribes, and other relevant data points. These insights enable you to refine and optimize your email marketing efforts for better results.

Pros and cons

Pros of email marketing software:
1. Low cost: Email marketing software offers an affordable solution for businesses looking to conduct marketing campaigns without hefty investments. It enables users to execute campaigns independently, without the need for extensive HTML or design skills.
2. Increased traffic: Email marketing software can drive traffic to your website, potentially leading to increased sales opportunities. By directing recipients to your site through engaging email content, you can enhance brand visibility and encourage conversions.
3. Customization: These tools provide customization options, allowing you to tailor your email campaigns to suit the preferences and interests of your target audience. You can segment your email list based on various demographics, interests, and behaviors to deliver personalized content.
Cons of email marketing software:
1. Limited support: While some vendors offer technical support options and resources such as informative blogs, users often lack direct assistance in designing and executing email campaigns. This means that businesses may need to rely on internal resources or third-party expertise for campaign management and optimization.

Must have features

Here are some essential tips and features to consider when selecting email marketing software:
1. Email list segmentation: Look for software that offers email list segmentation capabilities. This allows you to tailor your communication to different segments of your audience based on factors such as interests, purchase history, or stage in the sales funnel. Segmentation helps personalize your messages and maximize engagement and conversions.
2. A/B testing: Choose software that includes A/B testing features or integrates with tools that support this functionality. A/B testing allows you to experiment with different email elements, such as subject lines, content, or calls-to-action, to determine which variations resonate best with your audience. This data-driven approach helps optimize your email campaigns for maximum effectiveness and ROI.
3. Marketing automation tools: Look for software that offers robust marketing automation capabilities. This feature enables you to set up automated email workflows triggered by specific actions or events, such as sign-ups, purchases, or website interactions. Automation saves time, ensures timely communication with your audience, and helps nurture leads through the sales funnel.
4. Contact management: Choose software that provides comprehensive contact management features. This allows you to organize and segment your subscriber list based on various criteria, such as demographics, behavior, or engagement level. Effective contact management ensures that you’re targeting the right audience with relevant content, while also helping you maintain a clean and up-to-date contact list by managing duplicates and unsubscribed contacts.

Choosing the right email marketing software can significantly enhance your ability to reach customers and drive sales effectively. With a plethora of email marketing services available, each offering various pricing options, finding a solution that aligns with your business needs and customer preferences is feasible. Alternatively, outsourcing email marketing to an agency can also be advantageous. Regardless of the approach you choose, leveraging the appropriate tools will undoubtedly elevate your marketing efforts.

May 7, 2024
Extended Season of Down Rounds for Indian Startups

Extended Season of Down Rounds for Indian Startups

The trend of down rounds in the startup ecosystem is persisting and expanding. Nearly 20% of the major venture capital deals in 2023 and up to April this year involved significant reductions in valuations. This marks the highest proportion since 2015, according to data from Pitchbook.
Before 2023, the highest incidence of down rounds occurred in 2017, when 17% of VC deals were executed with valuation cuts following the exuberance in funding observed during 2015-16. Analysts anticipate this trend to continue throughout the year, spelling challenging times for startups ranging from large unicorns to growth and early-stage ventures.
Deepak Gupta, General Partner at WEH Ventures, explains, “Down rounds may continue for some time as the inflated valuations from 2020-21 have yet to align with company performance, and growth stage deals remain subdued compared to historical levels.” Gupta suggests that many founders who postponed fundraising in 2023 will now need to seek funding, potentially leading to down rounds.
Of the 20 venture capital deals this year, primarily focused on growth and late-stage rounds, four have occurred at reduced valuations. In 2022, out of the 84 deals in growth and late-stage funding, 17 were down rounds.
Recent funding rounds illustrate this trend. PharmEasy, an online pharmacy retailer, secured $216 million in a deal led by Ranjan Pai’s Manipal Education and Medical Group, valuing the company at $710 million — significantly lower than its $5.6 billion valuation in 2021. Similarly, Udaan raised $340 million in December 2023 at a valuation of approximately $1.8 billion, down from its peak of $3.2 billion in 2021.
Indian startups witnessed a funding slowdown in the first quarter of this year, raising $1.9 billion compared to $2.2 billion in Q4 2023. This downturn followed consecutive growth quarters in 2023, with total funding amounting to $8.4 billion for the year, significantly lower than the $25 billion raised in 2022 and the lowest in the past five years, as per Tracxn data.

May 6, 2024
Do you know about various ways of Succession Planning for Family-Owned Business?
Do you know about various ways of Succession Planning for Family-Owned Business?
Positive Facts to know about
India as a country is the 3rd largest in the number of family businesses.
75% of publicly traded companies & 85% of private entities are family-owned.
79% of India’s GDP is contributed by family-owned businesses which is the highest globally.
60% of the Indian households are employed by the family-owned businesses.
Hard Truth to know about
45% of the family businesses have no formal channels of business communication.
Only 11% of families have a conflict resolution mechanism in place.
Merely 10% of the family businesses make it to the 3rd generation.
Succession modes for Family-Owned Business
Will – It is the most powerful document as it has all the power to supersede the Succession Laws prevalent for the time being in force. In the absence of the Will, it is the applicable Succession Law that will prevail. If any immovable property is passed through a will, then probate is mandatory provided that the immovable property is in Mumbai (Bombay), Chennai (Madras) & Kolkata (Calcutta). Nominations cannot over-rule a Will, so it is advised to have a nomination in line with a Will.
Family Trust – It has a Settlor, Trustees & Beneficiaries. The trustees can be any Professionals. Trust can be revocable or irrevocable however advised to have irrevocable trust due to taxation benefits. Trust is a pass-through entity for taxation purposes. The trust can be a discretionary trust (where the share of the beneficiaries is not known) or a specific trust (where the share of the beneficiaries is known). Discretionary Family Trust brings flexibility to vary the distribution based on the desires of the Founder/Promoter. The trust is governed by the provisions of the Indian Trust Act, of 1882.
Hindu Undivided Family (HUF) – Since December 2005, daughters are considered as Coparceners in the Father’s HUF is a very positive amendment that is not known to many so the Daughter can become Karta of the Father’s HUF provided the Father has no Son to become the Karta after his demise. Females cannot form HUF.
Family Settlement Agreement (FSA) – It must be a family asset that is passed on through the generations. FSA is completely tax-free.
For any queries & clarifications please feel free to reach out on + 91 – 9819880244 or info@bsga.in
About the Author
CA Bhavin S Gala, a Practicing Chartered Accountant based out in the financial capital of India, Mumbai has a decade of work experience with SMEs in the areas of Succession Planning, Family Governance, Corporate Law, Strategic Advisor to the Promoters and value Management Consultancy Services.
Disclaimer
The views expressed herein are solely those of mine and not of my Firm nor those of the ICAI or any of its committees. The ICAI and my Firm do not accept any responsibility for omission or inadequacy of the contents in this document and for loss caused to any person who acts or refrains from acting in reliance on the contents of this document irrespective of the cause of / reason for the loss.
May 6, 2024
Are Technological Advancements Boosting Electric Mobility in India?

Are Technological Advancements Boosting Electric Mobility in India?

Our daily lives are increasingly shaped by technology, from waking up to smart notifications to navigating traffic and making online purchases seamlessly. Digitization has revolutionized travel, enabling us to avoid congestion, book rides effortlessly, and receive real-time updates on driver arrival times. Against the backdrop of sustainability gaining traction, technological advancements are playing a pivotal role in accelerating electric mobility in India.
Analyzing the cost-benefit perspective, technology constitutes just 2% of total mobility costs but delivers a substantial 98% outcome, highlighting its critical role in service delivery. Efficient operations in mobility rely on maximizing utilization, minimizing costs, and ensuring exceptional user experiences, all achievable through leveraging technology.
The transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) represents a significant evolution in India’s automotive landscape. The increasing adoption of EVs, coupled with advancements in charging infrastructure, is paving the way for a cleaner and more sustainable mobility ecosystem. Noteworthy technological developments include high-end, tech-driven charging solutions like fast chargers and wireless charging, addressing challenges such as range anxiety and advancing our electric mobility vision. Countries like China and South Korea have embraced this trend, with others poised to follow suit. Domestically, initiatives like the FAME scheme are spurring domestic manufacturing and expanding charging infrastructure availability. Further enhancements in battery technology and renewable energy integration promise even more sustainable mobility solutions.
The future holds promise for electric autonomous vehicles (AV-Es), expected to see burgeoning demand. These vehicles combine the benefits of EVs and autonomous technology, offering a more efficient and eco-friendly alternative to ICE vehicles. AV-Es will play a crucial role in enhancing road safety by minimizing human error, a key factor in 94% of collisions, ultimately leading to faster commutes.
Urban areas often grapple with parking challenges, exacerbating emissions and traffic congestion. Smart parking systems are reshaping urban mobility by integrating parking data with transportation systems to provide real-time traffic updates and optimize travel routes. Leveraging technologies like sensors, data analytics, and real-time data, these systems enhance parking space utilization, reduce congestion, and minimize time and fuel spent searching for spots.
The global smart parking systems market is poised to reach $8.68 billion by year-end, with the Asia-Pacific (APAC) region, particularly India, driving rapid growth due to factors like traffic congestion, limited parking spaces, and environmental concerns. Emerging tech trends include contactless parking systems, cloud-based management solutions, AI-driven predictive parking, and blockchain-enabled secure transactions, poised to dominate the mobility market.
Smart parking is integral to sustainable mobility initiatives, aligning with smart city strategies to meet growing urban mobility demands. These advanced systems are expected to boost alternative transportation options like cycling and carpooling, especially when integrated with EV charging infrastructure.
In India, public transport is vital for mobility and livelihoods, especially in congested, polluted urban centers. State governments are enhancing public transportation accessibility through innovation and technology to address rising fuel costs, aging fleets, and growing populations. Features like real-time information, contactless payments, and mobile ticketing aim to enhance convenience and accessibility.
The advent of digitization underscores the importance of big data in transportation planning, traffic control, and infrastructure optimization. By analyzing transportation data, agencies can identify traffic patterns, predict demand, and plan future needs efficiently.
In summary, technological innovations, from EVs to smart parking systems, are reshaping India’s mobility landscape toward a more sustainable and connected future. The transition to electric mobility is bolstered by government support, aiming for 30% vehicle electrification by 2030 and a net-zero target by 2070. Achieving a smarter, greener, and more connected mobility future will require collaborative efforts across government, the private sector, transportation agencies, mobility providers, and startups.

Originally posted on: https://www.hindustantimes.com/ht-insight/future-tech/are-technological-advancements-accelerating-electric-mobility-in-india-101714651271185.html

May 3, 2024
Increasing Issuance of GST Demand Notices Driving Growth in GST Collections

Increasing Issuance of GST Demand Notices Driving Growth in GST Collections

The surge in GST collections is partly attributed to the rising number of GST demand notices being issued to companies, prompting many to express their intention to appeal against these orders.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG India noted, “The sustained growth in GST collections, with the latest figures marking the highest collection ever, reflects the strength of the domestic economy. Notably, the growth from domestic transactions at 13.4 percent outpaces that from imports at 8.3 percent. Another contributing factor to this growth could be linked to the deadline for GST audits and the consequent issuance of notices during this period.”
Several companies have reported receiving GST demand notices from authorities, with many indicating their intent to challenge these orders.
For instance, Apollo Tyres disclosed receipt of an order from the Sales Tax Officer, Delhi, under the GST Act demanding GST payment and imposing a penalty of Rs 13.94 lakh. The dispute concerns input tax credit (ITC) utilization and other matters, according to the company. Apollo Tyres stated, “The company intends to appeal before the Appellate Authority in due course. The impact of this matter on the company’s financials, operations, or other activities is not material.”
Similarly, Crompton Greaves Consumer Electricals revealed receipt of an order from state tax authorities in Mumbai for the period from April 2018 to March 2019, imposing a demand of Rs 22.49 crore.
“Considering the merits of the case, prevailing laws, and advice from consultants, the company plans to appeal against this order before the Commissioner (Appeals) and anticipates favorable outcomes from the appellate authorities,” the company stated.

May 3, 2024
Banks Extended Rs 24.6 Lakh Crore Credit to MSMEs in March: RBI Report

Banks Extended Rs 24.6 Lakh Crore Credit to MSMEs in March: RBI Report

According to the latest data from the Reserve Bank of India (RBI) on sectoral deployment, banks provided a gross credit of Rs 24.67 lakh crore to micro, small, and medium enterprises (MSMEs) under priority sector lending in March this year. This credit deployment witnessed a notable growth of 19.2 percent from Rs 20.69 lakh crore deployed in March 2023.
The total bank credit to MSMEs under priority sector lending in March represented 15 percent of India’s non-food credit, amounting to Rs 164.11 lakh crore during the month.
Breaking it down segment-wise, credit deployment to micro and small enterprises (MSEs) surged by 20.1 percent to Rs 19.76 lakh crore in March 2024 from Rs 16.45 lakh crore in the corresponding period of the previous year. Similarly, credit to medium-sized businesses grew by 15.8 percent to Rs 4.90 lakh crore from Rs 4.23 lakh crore during the same period.
Despite the upward trajectory in bank credit to MSMEs, non-banking financial companies (NBFCs) remain at the forefront of credit support to MSMEs. According to a banking sector performance report in December last year, NBFC loans to MSMEs exceeded three times the loans extended by banks.
Comparing the year-on-year growth in MSME credit by banks and NBFCs, as of March 2022 and March 2023, NBFCs demonstrated a robust growth rate of 21.2 percent and 42.4 percent, respectively, surpassing the growth rates of banks at 12.7 percent and 12.4 percent during the same periods.
As of March 2023, services MSMEs held a dominant 66.6 percent share in NBFC credit to MSMEs compared to 33.4 percent for MSMEs in industries.
However, one of the persistent challenges for MSMEs remains the lack of access to credit. A report by Lighthouse Canton, a global wealth and asset management company, highlighted that the development of digital public infrastructure (DPI) for digital products and services in a country has the potential to address nearly half of the credit gap faced by MSMEs in low and middle-income nations. Furthermore, the adoption of DPI could facilitate credit access for an additional 16-19 million MSMEs in these countries.

May 3, 2024
Why Family Disputes cause terrifying damage to the Family Business &; its valuation?
Do you know why Family Disputes cause terrifying damage to the Family Business &; its valuation?
It is because the Family Business is governed by strong ethos and family values, however, less attention is paid to the critical aspects such as Family Governance. Family Governance is the family constitution.
Some of the known family disputes that are reported in the news &; the public are:
Gautam Singhania
Kirloskar
Hinduja Brothers
Murugappa
Ambani Brothers
The Family Constitution is nothing but a translation of the intention of the family into a governing document that acts as a bridge between family members and business matters.
Predominant Benefits of Family Governance
Bridge the gap between family values and corporate governance
Addresses family business dynamics
Promotes transparency
Prevention of conflicts
Preservation of unity
Wealth Management
Accountability
Creation of legacy
Key Ingredients to Any Family Constitution
Family Vision
Governance Structure
Control & Management
Distributions
Capital Allocation
For any queries & clarifications please feel free to reach out on + 91 – 9819880244 or info@bsga.in
About the Author
CA Bhavin S Gala, a Practicing Chartered Accountant based out in the financial capital of India, Mumbai has a decade of work experience with SMEs in the areas of Succession Planning, Family Governance, Corporate Law, Strategic Advisor to the Promoters and value Management Consultancy Services.
Disclaimer
The views expressed herein are solely those of mine and not of my Firm nor those of the ICAI or any of its committees. The ICAI and my Firm do not accept any responsibility for omission or inadequacy of the contents in this document and for loss caused to any person who acts or refrains from acting in reliance on the contents of this document irrespective of the cause of / reason for the loss.
May 3, 2024
India Attracts Foreign Investors for Boosting Critical Minerals Sector

India Attracts Foreign Investors for Boosting Critical Minerals Sector

India is actively courting foreign investors to bolster its critical minerals sector, aiming to diversify mineral extraction beyond dominant countries like China and mitigate supply chain vulnerabilities.
During the critical minerals summit’s concluding day, Invest India showcased substantial business prospects in critical mineral processing to foreign investors, detailing fiscal and non-fiscal incentives designed to spur growth in this emerging sector.
Mining states like Odisha and Andhra Pradesh also presented industry incentives, highlighting India’s growth trajectory and state-level efforts to foster supportive infrastructure. The summit emphasized a cluster-based approach to promote synergies across mineral extraction, refining, and end-use, particularly in low-carbon technologies.
Under the Narendra Modi government’s accelerated exploration efforts, over 100 critical mineral blocks are now in the pipeline for auction to mining companies.
Critical minerals such as lithium, chromium, nickel, graphite, cobalt, titanium, and rare earth elements are indispensable raw materials for electronics, electric vehicles, renewable energy, defense, and high-tech telecommunications. Given the dominance of a few countries in mineral extraction, notably China, diversifying the supply chain is critical to mitigate geopolitical uncertainties.
Discussions at the summit highlighted the importance of regulatory certainty, financing frameworks, and Environmental, Social, and Governance (ESG) standards to attract investors. Invest India and the Industrial Promotion and Investment Corporation of Odisha (IPICOL) were lauded for their facilitation services in establishing processing and beneficiation capabilities in India.
The summit brought together a diverse range of Indian and international stakeholders, including industry leaders, startups, government officials, scientists, academics, and policy experts, aimed at accelerating the domestic production of critical minerals to support India’s economic growth.
Veena Kumari Dermal, Joint Secretary in the Ministry of Mines, emphasized efforts, both domestic and international, to secure critical mineral supply chains, enhance skill development, and focus on mineral recycling in India during her closing remarks. Dermal also highlighted India’s processing technologies for critical minerals and referenced offshore mining regulation amendments. The summit served as a transformative platform for dialogue and collaboration, paving the way for further discussions to outline steps necessary for India’s emergence as a global leader in the critical minerals sector.

Originally posted on: https://smefutures.com/india-woos-foreign-investors-for-big-push-to-critical-minerals-sector/

May 2, 2024
When is the right time to implement ERP?
When is the right time to implement ERP?
For growing businesses, staying ahead of the curve is vital for long-term success. Implementing an Enterprise Resource Planning (ERP) system can be a key tool to propel your company forward. However, determining the right time to introduce an ERP is a critical decision with significant implications. It can mean the difference between efficient scaling and encountering serious obstacles that hinder growth.
ERP implementation comprises two key components: selection and deployment. In the selection process, decision-making is typically faster for smaller companies. This is because companies with fewer than 100 employees often have simpler business processes compared to larger enterprises. Avoid rushing the selection process; take time to compile a list of potential vendors, schedule demos and meetings, and conduct thorough due diligence.
To enhance the chances of a successful implementation, it’s beneficial to choose specific times that can facilitate the process:
Consider your growth plans when deciding on an ERP system. If you aim to expand market share, product range, customer base, or revenue, choose an ERP system capable of supporting your growth. It aids in scaling operations, resource management, and regulatory compliance while adapting to evolving customer demands, industry trends, and competitive pressures. Implementing an ERP during rapid growth may pose challenges like complexity, resistance to change, or technical issues. Plan ahead and implement the ERP before reaching growth limits to mitigate these challenges.
Opt for implementation during slower business periods. This allows for more dedicated time and attention to be allocated to the implementation. With fewer distractions and urgent tasks demanding attention, employees can concentrate better on comprehending the software and grasping its functionality. Minimized distractions contribute to a higher success rate in implementation.
When the organization is fully prepared and all employees are adequately informed about process updates, it’s the optimal time for initiating an ERP implementation. Continuous communication ensures employee understanding, contributing to project success. Assess the organization’s current state; if undergoing internal transformations or staffing shortages, postponing implementation may be wise until positions are filled or tasks are less burdensome, enabling active employee participation and comprehensive understanding of new processes.
Conclusion
Take your time when considering purchasing an ERP system for your company. Involve multiple stakeholders and consider seeking outside expertise independent of vendors. Create documentation to evaluate each ERP system, weighing the trade-offs between on-premise and cloud-based solutions. Purchasing an ERP is a significant step for your company, signifying growth and the establishment of standards to manage business processes and financial reporting. Some of the best ERP Software are Vision ERP, SAP, Oracle, Sage and more.
May 2, 2024
CRISIL SME Tracker: Positive Shifts for Chemicals MSMEs

CRISIL SME Tracker: Positive Shifts for Chemicals MSMEs

The outlook for the domestic chemicals industry is improving as demand rebounds and inventories stabilize.
In the previous fiscal year, factors such as oversupply from China, weak demand in developed markets, and inventory adjustments led to subdued revenue growth.For the current fiscal year, Crisil Research expects the industry to rebound by 7-9% from a lower base.
While certain segments like dyes and pigments, discretionary industries, and agrochemicals continue to face challenges, these are seen as temporary obstacles, and the medium- to long-term outlook remains optimistic.
This positive outlook is particularly beneficial for the 292,856 micro, small, and medium enterprises (MSMEs) that constitute 30% of the domestic chemical industry (according to Ministry of Chemicals & Petrochemicals data), with significant clusters in Thane, Mumbai, and Ahmedabad. Nearly half of these enterprises are engaged in organic manufacturing, while others focus on dyes and pigments, soaps and detergents, with agrochemicals making up 8%.
Among industry segments, specialty chemicals, representing 19-21% of the domestic industry, are expected to see margins rebound by 200-300 basis points this fiscal year after facing erosion last year due to high-priced inventories and lower product realizations.
Within specialty chemicals, agrochemicals are projected to achieve 10-12% revenue growth this fiscal year after experiencing degrowth last year due to low prices and weak demand caused by El Niño and subsequent deficient rainfall. Agrochemicals margins are expected to normalize from the second quarter due to destocking of high-cost inventories.
Colourants, another significant segment of specialty chemicals, are forecasted to achieve 4-6% revenue growth this fiscal year, driven by expectations of interest rate cuts in Europe and the US boosting discretionary spending. This follows a decline of 1-3% last year due to recessionary pressures and inflation affecting market sentiment.
Overall, domestic producers may still face margin pressures as prices of key bulk materials could remain depressed due to ample supplies and the commissioning of newer capacities.

May 2, 2024