Subsidies loan for open up a Branded retail Garments outlet?

I am working on a business plan for retailing branded garments as a Franchisee/consignment agent which will generate employment and a good revenue as well as for state govt.

The approximate project cost is 25L.

In the min time I want to know about the subsidies loan schemes from Indian Govt. or bank loans for this kind of retail business.

Please also suggest me other finance options.

No.. No subsidies on garment business.

But If you are starting business first time and you are graduate recently, not have past job record. In that case you can get discounted loan , but max 5 lace and require hard document,

You may contact us on

What is it called when you retail a product that is not yours and a percentage of your revenue goes to the own?

What is it called when you retail a product that is not yours and a percentage of your revenue goes to the owner of the product?

Consignment the act of consigning, which is placing any material in the hand of another, but retaining ownership until the goods are sold or person is transferred. This may be done for shipping, transfer of prisoners, to auction, or for sale in a store (i.e. a consignment shop).

Features of consignment are:

The relation between the two parties is that of consignor and consignee and not that of buyer and seller
The consignor is entitled to receive all the expenses in connection with consignment
The consignee is not responsible for damage of goods during transport or any other procedure.
Goods are sold at the risk of consignor. The profit or loss belongs to consignor only.
The word consignment comes from Fr. consigner "to hand over or transmit", originally from Lat. consignare "to affix a seal," as was done with official documents just before being sent.

Sales Revenue and Retail Sales?

When x units of a certain luxury commodity are produced, they can all be sold at a price of p thousand dollars per unit, where p= -6x +100.
A) express the revenue R(x) as a function of x.
B) How much revenue is obtained when x=15 units are produced and sold?

A manufacturer has been selling lamps at the price of $50 per lamp, and at this price consumers have been buying 3,000 lamps a month. The manufacturer wishes to raise the price and estimates that for each $1 increase in the price, 1,000 fewer lamps will be sold each month. The manufacturer can produce the lamps at a cost of $29 per lamp. Express the manufacturer’s monthly profit as a function of the price that the lamps are sold, draw the graph, and estimate the optimal selling price.

The demand function is p=-6x+100
Revenue = price x quantity sold = xp = x(-6x+100) = -6x^2+100x

R= -6x^2+100x


At x=15, R = -6(15)^2 +100(15)
R = 150

Revenue = (50+x)(3000-1000x)

When x=0, R=50 x 3000
When x=1, price =51 , amount sold = 2000
when x=2, price = 52, amount sold = 1000 etc.

Cost = 29×3000=87,000
Profit = Revenue-Cost = (50+x)(3000-1000x) – 87,000

Profit = 150,000-50,000x+3,000x-1,000x^2-87,000
dP/dx = -50,000+3,000-2,000x = 0
1000x = 50,000
x= 50

Optimal selling price = $50 per lamp

Exploiting The Internet As Money Machine!

The internet is the greatest money machine in these days. Google, Yahoo, Amazon or Ebay have achieved a higher market capitalization than many traditional brick and mortar companies. Google has grown within a few year to a value of more than $77 billions.

How is most of the money made?

The big search engines make most of the money with advertisement revenues. Google Adwords and Overture are the leading cash machines. Other search engines and directories also rely on advertisement revenues. The higher their Google Page Rank, the more often they demand fees for directory listings. DMOZ is the only directory with a top Page Rank, where a listing of a website is free of charge. It is, however, almost impossible to get listet at the Open Directory Project.

Other big players benefit from the internet as market place. It’s a viable business to provide good and reliable payment services for the millions of internet merchants. Clickbank, Paypal, Stormpay and others are great in this business and make their money with getting fees from their services.

A lot of followers also benefit

This great market place has attracted a lot of other participants. They benefit, because the internet community still grows. They offer books, music, travel booking, retail shopping and much much more. Already established brands have a great advantage if they join the internet market place. Many users type in automatically the names of big brands, if they are looking for something.

How can a small or home business benefit?

The above mentioned companies have been lucky because they have started as pioneers from scratch in an early stage of the internet or they have been backed by an already prominent brick and mortar firm.

It seems that the best places are already occupied. Newcomers have to find niches and new opportunities. A lot of website owners try to promote goods as affiliates. They do not need to invest much money. The best way is to sell a good that just can be downloaded. No warehouse and shipping are needed. New opportunities to make an extra income evolve, e.g. getting paid for taking surveys or reading ads. There are no limits for innovations.

What has to be considered?

* Ask yourself, what you can do best, how you can use your own skills in the internet business. * Research a marketing niche that looks promising. * Write a small business plan.

* Limit your own investments. * Research, what you can get for free or for low costs for your business.

The conclusion of all is: Do the right things right! Try it at least!

Lil Waldner

Picking Stocks for 2009. January 16, 2009

PICKING STOCKS FOR 2009. January 16, 2009.

I’m expecting 2009 to be a better time for investors. Not an easy time, as in the one-sided market of the late 1990s when everything one bought went up, but an easier time than 2008 – at least for those willing to engage in a little market-timing. And that’s although I expect rallies will only be bear market rallies within an ongoing bear market.

Why an easier time then?

Last year my newsletter’s market-timing strategy portfolio gained 9.2%, one of the very few advisory services that were up for the year in which the S&P 500 lost 38.5%, hundreds of mutual funds and hedge funds closed due to heavy losses, and even ‘best investor in the world’ Warren Buffett was down 31.8% for the year. But it wasn’t an easy year. The extreme volatility made for stress, and the need to stick with mutual funds and ETF’s due to the higher risk in individual stocks took some of the fun out of it.

The outlook is different in that regard for 2009. Of the many stocks that plunged severely last year, some plunged for good reason, while others sank in sympathy with the market, or were sold simply because mutual funds and hedge funds had to sell something in order to raise cash to meet their record level of redemptions.

I believe that has quite a number of stocks on the bargain table, which is a lot different than when 2008 began.

One I mentioned to you in my December 26 column was Zimmer Holdings, symbol ZMH. Zimmer is about as far away from the troubled financial, housing, and retail sectors as you can get. To remind you of what I said in December, the company designs and manufactures orthopedic implants, including joint, dental, and spinal replacements. I believe its 54% stock plunge last year was overdone, and recommended its purchase. It’s up about 2% since that Dec. 26 column. The encouraging thing about that is how well it held up even as the S&P 500 plunged back down 10% over the last two weeks.

In my newsletter this week we featured another individual stock, which may have appeal to those looking for income as well as those seeking potential capital gains.

It is Cedar Fair, symbol FUN. Cedar Fair operates popular regional theme parks, and water parks, in 13 states in the U.S. and one province of Canada.

The parks include Cedar Point in Ohio; Knott’s Berry Farm and Soak City USA in California; Dorney Park/Wildwater Kingdom in Pennsylvania; Valleyfair in Minnesota; Worlds of Fun in Kansas, Michigan’s Adventure Park: Canada’s Wonderland in Toronto; Kings Dominion in Virginia; and Carowinds in North Carolina.

Cedar Fair is noted for exciting rides. Its Cedar Point Park in Ohio offers 65 rides and 16 roller coasters, including Top Thrill Dragster, one of the world’s tallest and fastest coasters.

In addition to thrill rides for the brave, the parks are family oriented with water slides and wave action pools, as well as attractions for smaller children themed around the ‘Peanuts’ comic strip characters.

While the recession is having an effect on attendance at theme parks, Cedar Fair’s regional attractions, each only a few hours from large population centers, are faring much better than the destination-vacation type theme parks. The company just reported a couple of days ago that attendance in its 4th quarter was 8% higher than the same quarter a year ago, and estimated average daily spending per guest declined only 1%.

The company’s aggressive annual expenditures for new rides and attractions have always been key to keeping visitors returning, and Cedar Fair has announced expenditures of $62 million for 2009 additions, including a huge new coaster at its King’s Island Park in Cincinnati. Company president Dick Kinzel says, “It is likely that many of the difficult market conditions we faced in 2008 will be present in 2009, and we will continue to focus on adding value to the guest experience through new shows, thrill rides, family attractions and special events. I believe we have an excellent overall entertainment package lined up for 2009 that will appeal to today’s budget-conscious consumers.”

Revenues have increased in each of the last ten years. Going forward the worsening recession will probably have a greater negative effect on attendance (and the bottom line). But I believe that with the stock having plunged 57% along with the rest of the market, the potential negatives have been pretty much already factored into the share price.

Cedar Fair may also have appeal for those looking for income. A limited partnership, Cedar Fair must pay out most of its earnings to investors in the form of dividends. The partnership has increased the dividend for 21 straight years. At the current depressed stock price the dividend yield is a robust 15.5%. Even if the company had to cut its dividend for the first time, the yield would probably remain at a high payout.

Meanwhile, according to FirstCall/Thompson Financial, of seven analysts surveyed, three had a ‘strong buy’, three a ‘buy’, and one a ‘hold’ rating on the stock.

As always this is my opinion and there are no guarantees in investing, but I believe Cedar Fair is a good choice for 2009, for both income and potential capital gains.

Sy Harding publishes the financial website and a free daily Internet blog at In 1999 he authored Riding the Bear – How To Prosper In the Coming Bear Market. His new book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

Sy Harding

I have been working in retail( 2part time jobs) for the last 3 years, have received a letter from Inland Reven?

a letter from Inland Revenue, claiming that my employees didnt tax me enough for these 3 years and I owe them around £ 4200, which they intend to collect from my wages during next 12 months, but if they do this, I will have no money on living, whats the way out?

You need to go and talk to Inland Revenue at their local office. Maybe that way you can come to some sort of agreement. However, I feel that you will have to repay what you owe, whether your fault or the employers.

Taxes- Fundamentals and Basics

A Tax is an enforced contribution which helps the government in various services such schools, utilities, public health care units and laying of roads. Taxes, which are levied by various entities of government, are present in different forms. The most common among them are indirect and direct taxes. Direct taxes are those that are paid to government directly through income taxes which are paid yearly. Indirect taxes refer to those which come from purchase of goods from retail revenues. There are different rates of taxation fixed by the Federal government; but the counties and states can fix their own tax rates depending on the various public works that need to be done in the state.

The history of taxation takes us to prehistoric times. It’s known that the ancient Egyptians were the first to introduce a tax system .Livestock and goods were the modes of tax as currency was not widely used. Tax were given based on their type of work and individuals who were unable or refused to pay, were punished. References to taxes also date back to European history where every product from window to even bread was taxed. These taxes helped the soldiers in gaining victory in wars by affording the expenses spent to buy weapons.

Taxes are always paid in the form of percentage though there are many other methods followed. These percentages vary according to the entity that decides them. Indirect taxes reach the government more quickly as people pay the tax along with the purchase of the goods. The retailer, on calculating the amount of tax payable to state and federal government, pays them to appropriate office of revenue. Taxes related to real estates and other property is paid on yearly basis. Individuals and retailers who don’t pay taxes are viable for imprisonment and stiff fines by the government.

Taxes have proven to be an important part in the history of the world. There is almost no country in the world that doesn’t have a contention with their current tax system’s and when this controversy over tax system occurs ,the people protest saying that the tax rate is very high or question as to whether these taxes are utilized properly. As a matter of fact, it was the taxation of tea which lit the fuse for America in gaining independence. In addition to that, these taxation issues have served to be the most sorted topic for politicians. Whether or not taxes are helpful, large amount of things depend on these tax systems. It is this intricately structured tax system that helps the citizens to get the basic needs provided by the government.

Abhishek Agarwal

Is Now Really be a Good Time to Start a Franchise Business in Australia?

With most of the developed economies either in, or heading for a recession, can now really be a good time to start a franchise business in Australia?

Firstly, recession in Australia is not by any means a certainty and even if it does happen, it seems that it will be less severe and have a faster recovery than most other economies. But still, bad times are bad times, is it wise to start a business in less than ideal conditions?

The answer to that is unique to each person that asks the question, but generally speaking, if most of the other factors influencing your decision are still positive then you shouldn’t let a weak economy dissuade you from taking the plunge.

Of course there are some cautions. Go through your business plan again (the real one, not the one you did for the banks!) and analyse how well you will fare with reduced revenues. Quite possibly it may simply mean a slightly longer period before you hit break-even.

If your funding isn’t already in place, you might find it harder to secure a business loan, at least for the next few months until the banks have sorted through some of their woes and a sense of stability returns to the financial markets again.

There are plenty of factors that will work in your favour if you go ahead with your business start-up plan.

Firstly, talented people should be much more available and for less expensive wages than at any time during recent years. If you are looking for partners, there will now be a pool of people just like you who are looking for an opportunity, people who realise how fragile a career in the corporate world can be and are looking at ways to take more control of their future. Some up these may have received a retrenchment package or be cashed-up through prudent savings. Not many potential investors are going to trust the financial markets or fund managers any time soon and this ought to make investing in a franchise a much more attractive proposition.

It will be easier to negotiate a lease and get the rental significantly cheaper than it was just a few months ago. Office renovation and shop-fitting expenses will be cheaper, as will perhaps any new or second-hand equipment that may be required for the new business. Consider using the services of a “virtual office” which can handle everything from answering telephone enquiries to secretarial services to basic book-keeping. Most of the time your clients won’t even realise they are not talking to one of your employees and you may find that the level of professionalism they bring to your business helpful in the start-up phase.

Buying a franchise as distinct from creating your own unique business, adds a level of safety that should not be underestimated. Franchises that have been around for a while have already weathered economic downturns in the past and have proven strategies in place to see it through this one as well. If the franchise is relatively new, the creative minds and determined personalities who founded the business are probably still at the helm and you can be sure they are not about to let their business fail.

All the usual advantages of a franchise apply. Franchisors have the buying power to negotiate the best prices on raw materials or ingredients while franchisees have a good knowledge of their customers and their neighbourhood and stand to profit from the trust and familiarity of the franchised brand.

When choosing a franchise don’t underestimate the newer arrivals in the market. Although their brand may not have the instant recognition of the market leaders, often their artwork, advertising and business models are as equally professional. People are naturally curious about a new brand and if it looks interesting and their logos and catch-phrases have appeal, they are likely to give it a try.

Do the same yourself. First test each franchise you are considering as a customer, evaluate the product and make an assessment from this perspective. Next talk to as many franchisees as possible. You should be able to arrange this through the franchisor. Add to this your feelings about the branding and the business concept. Although more caution is warranted with a new brand, you may find it a much easier franchise to buy into compared to a more expensive established one and if it grows quickly, being one of the pioneers should bring greater rewards. Don’t be afraid to negotiate. If the franchisor feels that you are the right person you may be able to get a substantial discount, or a deferred payment scheme of some sort. Explore these alternatives openly an honestly with the franchise sales team. An eagerness to negotiate doesn’t mean you you are coming from a position of weakness, if done professionally it could demonstrate that you have a mind for business and that could work in your favour.

Look at what is happening in other states. Does a new car wash franchise in Perth seem to be taking off? Are there any in Sydney, yet? Or does that new juice bar franchise that started and grew quickly in Melbourne have similar take-up rates in Adelaide? How well would it be accepted in Brisbane or the Gold Coast? If it is the retail sector that you are interested in look around your local shopping centres. Which businesses are doing well? Which ones are under-represented? Does this represent a niche that could be successfully filled by your new business?

Remember, when things are going well, people assume they will keep going well, when there is a recession, people fear the worst and wonder if it will ever end. Now may well be the best time to put the contrarian principles into action and become established during times of economic weakness, get the bugs ironed out and be well positioned to benefit from the good times just over that next hump.

Michael Tunstill

Big 3 Irish Banks to Survive as Separate Entities

There is something common about Allied Irish Bank, Bank of Ireland and Anglo Irish Bank ? All these banks are struggling with their balance sheets and revenues. In such a scenario, you would find that some element of external assistance is welcome. A 10 Billion Pounds making a bailout plan is something all these banks were waiting for!

Anglo Irish Bank is one of the biggest banks, that is seemingly poised to be taken over by one of the other two banks.

Couple of months before, the Government had planned for a fiscal revival. As on date, you would find that the Government has somewhat been pushed back on the agenda.

The 10 Billion Pound was seemed to a good enough amount to rescue the fortunes of the banks. But what really happened over time is ? This amount has not been good enough for these banks to survive!

The stocks of all these banks were supposed to hit a new high. But quite the converse happened this time around. The stocks of all these banks hit an all-time low on some of the subsequent days.

There have been a lot of plans laid by the Government trying to finalize the lending norms for the financial institutions.

Anglo Irish Bank is poised to have a change at the top. The change is expected to come through Richie Boucher, the head of retail financial services for Bank of Ireland. He is been seen as a guy who could take over the role of Chief Executive Officer of the AIB.
What is one big problem for the Anglo Irish Bank? Well ? For most struggling banks now, assets is something they need. The story is not any different for the AIB with it requiring 2.6 Billion Pounds.

The Bank of Ireland seems to require an injection of 3.4 Billion Pounds and the AIB may require an injection of about 3.9 Billion Pounds.

EBS and Irish Nationwide is seemed to be set for a merger. This merger would bring together two societies and needless to say, a financial turnaround is on the cards for sure.

It has also emerged that distressed Irish banks will have to pay the Government a premium of 10pc per annum to avail of the new ?10bn rescue fund.

It is widely believed that the stakes in AIB is pretty low this time, with seen erosion in the capital some days ago. This possibly has also resulted in having a fix on the sale value of AIB.

The announcement coming from the government could have resulted in some kind of cheer with the banks. In fact, the 11th hour news from the government seems to have bought in more gloom for these banks.

It remains to be seen how the bailout money would be spent on the banks. In fact, ask most financial experts and this is one question that they fail to answer. It remains a suspense, which can only be revealed with time.

Mallabraca, a private US Equity firm, for now does not seem to show any interest in the Anglo Irish Bank.

Gen Wright

If you give away product do you deduct it's retail or it's wholesale value?

If I open a bake shop and give away product to attract customers do I deduct it’s wholesale value or it’s retail value? I mean I would just be losing out on the wholesale cost, but for taxes or projections do I also factor in the lost revenue that I would make from it’s retail value?

One is the real cost to put them out there, the other is lost income, so do I list the lost income?

I’m asking from a perspective of doing taxes, as well as for how it would apply to doing business plan projections.

Thanks in advance for your time.

My initial answer wasn’t clear. I wanted to change it so it makes more sense. First I will assume that you are in the US.

All the items you buy for your business are expenses. Ingredients included. If you were to give away your product you would not need to deduct anything for taxes as your initial purchase of the ingredients counts as loss.

You will still want to keep track of all your expenses and profits on a balance sheet, but you will not be able to take a second deduction from the product you give away.

Everyone does a balance sheet differently. Just make sure it’s clear enough for you, your accountant and your bank to understand.

I would suggest having an internal report showing sales vs giveaways to see if your marketing campaign is effective, but that would really only be for your benefit. To know where the money is going.

Hope that helps!