Five Tips to Succeed with a Franchise Business

Franchisee business is a good income source provided you select the right one and put in the best effort to grow. However there some useful tips when setting up a business under this model.

Let’s understand these:

1. Know what franchise business is and in and out of it:

Before thinking of starting about the business, you should know what franchising means. And when you acquire a franchise you must have extreme detailed know-how of the business (the technical and administrative characteristics that are essential to conduct a business process). First of all, you have to be aware of how much you know about the business and what the first step is to learn how to manage it.

This is not only achieved with the training period offered by all franchisors, but also during the first year of operation. Therefore, the advice is to take advantage of the training and guidance that franchisors offer, in order to learn from those who know how to run the business effectively.

2. Having the resources:

When starting a franchise, the brand must give the entrepreneur a budget of the total investment of the new business.

The task of the franchisee is to ensure that he has the full disposal of the resources. The recommendation is that the resources should be your own. And, if this is not possible, you may have as your first option a partner to contribute the missing capital or resort to bank financing, in which case it is recommended that this should not exceed 25% of the total investment.

3. Study the franchise contract very carefully:

The franchise contract frames the commercial relationship that the franchisee will have with the franchising brand.

Reading and understanding the whole of it will give the entrepreneur the necessary knowledge to properly manage the new business relationship, and thus know what the rights and duties are.

Contractual knowledge helps to avoid making mistakes that could cost the loss of the franchise due to breaches of contract. And it will also be known that the franchisor brand can be required to make during the existence of the business.

4. Be sure of the location:

While most brands advise on the correct location of the business, the franchisee must trust his franchisee.

There are two variables that depend on the entrepreneur; the first is not to worry, because this can be a delayed process and it is better to be sure of a good location, than to choose it in a hurry and wrongly. And the second is that the franchisee has easy access to that location so that the entrepreneur can be aware of his business.

5. Do not decapitalize the business:

Although it is likely that from the beginning a franchised business will generate profits, there is also the possibility that it will take some time to achieve them. So for these two cases two pieces of advice are: First, to have working capital within the investment, which allows the franchisee to cover the debts of the beginning of the operation. And secondly to allow the business to be capitalized during the first year, that is to say, that the entrepreneur during those first 12 months does not depend financially on it for his livelihood.

Home Rental Cost in Top 30 Cities of the World

Amongst the various plans people make, one is moving from one city to another and start a new life. This idea has become popular especially among young graduates. However the most important aspects to take into account while taking this important decision are the work and the place where you intend to live. Suppose you have already got the job, now comes the most complicated part and that causes thousands of headaches: rent a place to live.

If we rely on the generalized opinions and what can be found on the Internet, we will see that everything leads to almost the same, where cities such as London, New York or Tokyo always appear as the most expensive in the world. But thanks to research by RENT Cafe, you can have a little more light on this aspect, since it focuses specifically on the prices of rents within the 30 most important and attractive cities to live in the world – From $ 8.50 per square meter to more than $ 58.

First we must define what are these 30 cities. Thanks to the work of Institute of Urban Strategies of the Mori Memorial Foundation we have the ‘Global Power City Index‘. This research classifies each city in terms of its attractiveness based on six main criteria: economy, research and development, cultural interaction, habitability, environment and accessibility.

And the index is as follows:

Global Power City Index

As we see, London is the city with the highest rating within this research, since it has the highest offer within the six criteria that we already mentioned. Followed by London are New York, Tokyo, Paris, and Singapore completing the top 5.

Now, within the 30 most important cities, how is the rental situation?

This is where RENTCafé’s research comes in, which set a rent of 1,500 dollars a month, and based on this, we can now know how much space we can access depending on the city, with other interesting results.

In the following graph (Source: Statista) we can clearly see the size of the apartment, in square meters, which we will have access to in the different cities with a budget of 1,500 dollars per month. It should be noted that the image is limited to the first 25 cities.

As we can see, the price per square meter in Istanbul would be just 8.50 dollars, so $ 1,500 would give us access to a comfortable apartment of 176 square meters.

In contrast to Manhattan, where the square meter has a cost of $ 58.34, so we would only have the possibility of having a micro apartment of 26 square meters. That is, the size of an apartment in Istanbul is equal to the size of almost seven apartments in Manhattan.

Other conclusions we can draw is that for those $ 1,500 we can have three times more space in Shanghai than in Los Angeles, or that the price per square meter is five times more expensive in San Francisco than in Berlin. On the other hand, of the 30 cities covered by the study, four belong to Western Europe, which compete with Manhattan, San Francisco and Hong Kong to have the highest prices per square meter.

Additional reading: cost to raise a child in top 10 countries

Another interesting point is that outside the United States and Canada, no other city in America appears in the list, this despite of the fact that some of them have the lowest prices, but here we must remember that we are talking about cities capable of offering a Good life quality. On the other hand, Spain appears twice in the list thanks to Madrid and Barcelona, cities where the square meter has a price of $17.01 and $20.99 respectively.

If you wish to analyze these 30 cities from another perspective, the map alongside summarizes the study in a magnificent and clear way.


Thinking Of Raising Children In These 10 Countries? You Have To Go The Extra Mile!

Presently, a lot of people think twice about starting their own families. Who’s to blame? It’s not easy to raise children right now, considering how costly it can get to provide for their needs. According to an article published on Cost Freak, the cost to raise a child is, at least, $12,300 per year, and that only accounts for the basic needs. There are other factors to consider, including the income, location, and the marital status.

But that’s just the tip of the iceberg. There is more to see and be aware of when it comes to childcare. In fact, the Society at a Glance 2016 has revealed an eye-opening report about the childcare expenses in member countries of the Organization for Economic Co-operation and Development or OECD. It said that 15% of the household’s net income is the average cost to raise children; that’s no joke.

Statista, an online statistics company, has compiled the data and provided a better perspective of the OCED countries with the highest expenses on childcare. And if you have thought of raising your kids in one of these 10 nations, then you’d better make sure that you’re physically, mentally, and financially prepared for such arduous experience.

1. United Kingdom – 33.8%

On top of the list of countries with the most expensive childcare is the United Kingdom. The cost to raise a child in this country is very high that parents spend more than 33.8% of their income for their kids. And even before the rearing begins, childbirth is also expensive, averaging at $4,609, according to The Cheat Sheet.

The good news is that there is help from the government for middle and working classes. However, the subsidy is not enough that one of the providers chooses between working and staying at home with the child. The cost of living in London is even higher. Rent and entertainment are some of the highest priced in the world.

2. New Zealand – 29%

Next in line is the country of kiwis: New Zealand. Families in this country spend 29% of their income for their childcare. It is twice as much the expenses in Australia. There are a number of private providers, which have quality services for children, too. However, these services do not come cheap.

3. Ireland – 27.4%

Not only is the childcare system in this country not up to par, it is also very expensive. Many parents spent 27.4% of the net income since they want their child to receive the best education. But if you think about it, the costs are way too high. They are willing to pay higher taxes for government assistance with childcare, but so far, that has not happened yet. After school programs are also very expensive for children.

4. United States – 25.6%

Hold onto your seats as you may find this absurd. According to Huffington Post, the cost of childcare in the U.S. is apparently more expensive than the college tuition. This can imply how difficult it is to raise children in this country, especially when you don’t have a stable job. Most parents spend 25.6% of their income, but it significantly varies from state to state or which city you live.

5. Switzerland – 24.1%

In order to have a child at a daycare, parents have to shell out almost a quarter of their salary. There are very few tax breaks for families with children as well.

6. Canada – 22.2%

Even though people in Canada receive free health care, the cost of raising a child is very high. Childcare is expensive that parents have to spend 22.2% of their income. The big cities such as Toronto are safe, but they can make your wallet empty. Bottomline is: it is not cheap to raise a child in this country.

7. Australia – 15.7%

The basic necessities for children are expensive since they need to be imported. Many couples tend to limit the number of children they have due to the high costs of providing for them. Although childcare is expensive in this country, the Australian government has provided the Child Care Benefit. This payment is going to help parents for their child’s day care, outside school hours care (OSHC), and vacation care, as well as preschool and kindergarten.

8. Japan – 15.3%

This country is very expensive. A small apartment can cost a family several thousand dollars a month. The cost of childcare is very high as well as private education. Cheat Sheet has also revealed the average childbirth in the Land of the Rising Sun is skyrocketing at $61,000. In addition to the high cost of living, the limited space also has an impact on the Japanese family. Entertainment and food are also very high.

9. France – 9.7%

While France has more affordable childcare than other European countries, it is still very expensive. Both parents have to work in order to provide for their children. The cost of food is rather high as well, making an impact on the family size. While women can take off some time to take care of their child, it does hurt their career. The more time they spend out of their chosen work, the lesser the chances they have of getting a high paying job.

10. Germany – 9.7%

Childcare is not cheap in Germany. In many cases, mothers have to stay home to take care of the children because childcare is so high. It makes it difficult for both parents to go to work. By the time the child reaches the teen years, the cost goes up as well. It results in working full-time jobs just to feed and clothe their kids.

Lost Aadhaar Card or Not Received? Get e-copy in 10 Easy Steps

Aadhaar card has become a mandatory document. It acts as a valid proof of address and identity for various government schemes. Aadhaar card helps people cut down documentation that is required when verifying filed returns. Aadhaar has also eased the process of PF disbursement. With Aadhaar card, you can now get your LPG subsidy in your bank account. Also, the process of getting a passport has become simpler and time-saving with Aadhaar.

If you have lost your Aadhaar card or have enrolled for it but have not received it yet, you can get an e-copy of Aadhaar card online in a few simple steps, which are given as follows:-

  1. Visit the official UIDAI website
  2. Click the “Download Aadhaar” option present on the home page of the website.
  3. You will be then directed to a webpage wherein you will need to fill out the e-Aadhaar form.
  4. In this form, enter your enrolment ID or Aadhaar number, your full name – as printed on your Aadhaar card or as mentioned by you during the Aadhaar enrollment.
  5. Type pin code of the area you stay.
  6. Enter the captcha code.
  7. Enter your mobile number.
  8. Click the “Get one-time password” button.
    An OTP will be sent to your registered mobile number or email ID, which you need to enter in the form next.
  9. Lastly, click the “Validate & Download” button.

On completing this process, you will be able to view your Aadhaar card on your computer screen. Since it is a password-protected PDF file, download this e-copy of your Aadhaar and use it as a fully valid Aadhaar card to avail a number of government-based services. The password to open this file is the PIN code of your residential address. Also know how to get protected e-Aadhaar card pdf password.

Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). Every Indian citizen should have an Aadhaar card as it is used as the universal identity card that can verify an individual’s age, address, identity, etc. which are required to apply for a gas connection, phone connection, bank account, pension schemes, PF disbursement, LPG & other subsidies to name a few.

The details in the Aadhaar card include:-

  1. The name of the person (it belongs to).
  2. The 12 digit unique Aadhaar number or the UID (Unique Identification Number).
  3. The enrolment number.
  4. A passport size photograph.
  5. A person’s permanent address and date of birth (as per the records).
  6. A person’s gender.
  7. A barcode representing the Aadhaar number.

The purpose of Aadhaar card is to make the life of people simpler. Gone are the days when people had to go through a long tiring process to avail a single government benefit. Today all can be done online by furnishing just a single Aadhaar card as it would work as a valid proof of address and a proof of identity. In real terms, Aadhaar is not just a card to avail government benefits. It can also replace the need of driving licence, passport and Voter ID card. Linking Aadhaar with PAN Card has also been made mandatory by the Indian Government without which one cannot file their Income Tax Return (ITR). Also it is worth mentioning the fact that Aadhaar comes with no validity and hence can be used by a person for lifetime.

Considering the above mentioned factors, it can be well stated that the Government of India is changing the way it operates. Not only it is making the regime simpler but also making efforts to enrich the citizens’ experience. The key to this improved service is the process of delivering information and processing government transactions digitally through web and mobile applications that make government services easily accessible to each and every category of people.

Google “Tez” Payment App: Features, Competitors

Digital payment in India will be getting a giant push on 18th September. The world’s best company to work “Google” is going to launch a new payment service called Google “Tez”. In Hindi, Tez means Fast.


  1. It would be a digital wallet for storing Indian currency
  2. This app is made only for the Indian market and hence has been localized accordingly.
  3. Payment service would be available both on the desktop, as a Chrome widget, and an app. The app is expected to be made available on the Google Play Store.
  4. It would support credit and debit card
  5. As the name “Tez” suggests it is expected that using this service, user can instantly send or receive money to any mobile number
  6. Payments to various services can be made through the app such as prepaid recharge, post paid mobile bill payments and so on.
  7. At retail PoS, user would be able to just wave the smartphone to make payment. No swiping of credit or debit card would be needed.
  8. It is a completely different service than Google’s existing payment service called Android Pay.
  9. Tez would support Indian government’s Unified Payments Interface (UPI). And private mobile wallets such as Paytm and MobiKwik.

Competitors to Google “Tez”

  • The already existing players in India are – Samsung Pay & Truecaller Pay would be giving stiff competition to Google.
  • By this year end, Whatsapp may also launch peer to peer payments in India.
  • Mobile wallets such as Paytm, Mobikwik, Jio Money and other players

Check out differences between Tez and Paytm

BCG and Google – Report on growth of digital payment in India

After demonetisation, India has seen a significant growth in digital payments done via mobile, tablet and desktop/laptop.

  • As per the report published by Boston Consulting Group and Google India; the usage of digital payment system industry will grow to $500 billion by the year 2020.
  • Over half of India’s population will make use of digital payments by 2020.
  • And top 100 million users will drive 70% digital payments

Let’s see how fast Tez gains momentum in India in a already crowded digital payment system.



2017: Aadhaar Card for Banking, Income Tax – 5 New Rules to Know

After the successful demonetization activity which was primarily implemented to curb black money, control terrorism activities,  government has now made Aadhaar card mandatory in the following banking & income tax related purposes to further make life of tax offenders miserable.

New account opening: Whether you want to open a savings or current account, providing Aadhaar card number will be mandatory for the new applicants.

Existing bank account holders: Before December 2017, all the existing bank account holders will have to provide their 12 digit Aadhaar card number to the bank. Failure in doing so will make your bank account invalid.

Financial transaction above Rs. 50, 000: Until now for high value transactions above Rs. 50, 000; PAN card was must. However moving forward, Aadhaar number will be required for making any national or international money transfer for the amount above Rs. 50, 000.

Income Tax Returns: Until now individuals with income below the taxable limit were not required to file IT returns. And whether or not such individuals had PAN and Aadhaar card did not matter. However as per the government rule announced on 15Jun2017; any individual having PAN and Aadhaar card will have to link both these identity cards, whether or not income tax is filed or not by them. If this is not done (before the yet to be announced date), then permanent account number (PAN) card will become invalid. If Aadhaar number is not available then Aadhaar enrollment ID will be required.

Anyone having PAN card as on 01July2017, but eligible to get Aadhar card will have to notify IT department.

This is as per the section 139AA of the Act.

PAN card application: Any individual applying for a PAN card after 01 July 2017, will be required to quote 12 digit Aadhaar card number or Aadhaar enrollment ID.

What do you think about this law by government? Share your thoughts in the comment section below.

CreditVision Tool by TransUnion-CIBIL – Features, Benefits for Lenders

As non-performing assets and stressed assets grow bigger in size, the profitability of the financial institutions is getting affected. Currently banks take credit data from CIBIL and also use their own analytical insights run on their customer database to decide on any credit or loan application.

However with the launch of CreditVision tool from TransUnion-CIBIL; banks will now have more detailed information about an individual or any company’s financial transaction history.

The USP of the tool is to identify potential defaulters and potential new customers for loans and credit cards.

Read more about how to improve credit score.

This is how CreditVision tool from TU CIBIL will benefit lenders:

  • Consumer’s granular level of financial transaction history will be available of the apart from the currently used credit score.
  • Predict who is going to default in the near time.
  • Predict which defaulter is currently paying which lender and how much, who is prepaying and at the same time not paying.
  • Report on who is experiencing fall in their financials and whose account balance is improving.
  • Categorize individuals as credit revolvers, transactors, and outstanding builders.
  • Lend more: Identify borrowers, who can be given higher loan amount than the sanctioned amount.

How it will benefit borrowers or consumers:

Individuals with no credit score are many a times denied credit or loan. Because banks did not have any credit data to evaluate credit worthiness. However with Credit Vision, deserving non-customers will be offered automated loans without compromising the risk.

Features of CreditVision Tool:

  • Developed by TransUnion
  • It is an algorithmic software which studies customer pattern in payment, exposure and spend behaviour.
  • The software analyses last 3 years data.

So basically there will be improvement in making lending decisions, credit penetration will increase and access to credit will be improved.

Brief About TransUnion CIBIL:

  • TransUnion CIBIL is the India’s most renowned credit information company. They maintain credit history/records of over 500 million consumers and business entities.
  • India’s leading public and private sector banks, NBFCs, financial institutions and HFCs are members of TU CIBIL.
  • TU CIBIL collects, analyzes and delivers information about the credit history of the borrowers (individuals, small, medium and big enterprises). And provide this information to its members. This information is then used by the members to make credit decisions about individuals and businesses.

26 Differences/Similarities: Commercial Vs. Co-operative Banks

There are 4 different categories of banks in India. These include:

  1. Commercial Banks – Includes scheduled and non-scheduled banks
  2. Co-operative Banks
  3. Regional Rural Banks
  4. Payment Banks – This new category of the bank was very recently approved by the Reserve Bank of India.

Although most of the banks offer similar kind of services; there are key differentiating factors. In this article we’ll discuss the differences between commercial and co-operative banks.

Listed in the below table are the similarities and differences between these two categories of the banks:

Sr. No.FeaturesCo-operative BankCommercial Bank
1Governed by whomCo-operative Societies Act of respective state and Banking regulation actBanking Regulation Act
2Functioning objectiveGoal is mutuality and self help. Profit is not the objectiveWealth generation
3Is there any voting power to borrowersYesNo. Borrowers are account holders.
4OwnershipMembers of co-operative societyShare holders
5Regulatory BodyReserve Bank of IndiaReserve Bank of India
6Interest rate on loanLowHigh
7Interest offered on depositsLowHigh
8Prepayment charges on loansNilYes
9Processing charges on loansNilYes
10Quantum of loan amount offeredLimitedCan be very high
11Loan disbursal processing timeSlowFast
12Eligibiiity criteria to get loanNot very strictVery strict
13Is membership required to avail loanYesNo
14Credit score checkYesYes
15Shares of bank required to get loan?YesNo
16Most prominent inMainly rural areas. But they also operate in urban areasMainly urban areas. But also operate in rural areas in small scale
17Range of services offeredLimitedBroad
18Credit recoveryWeakVery strict
19Operating scaleSmallLarge
20Area of operationLimited to city/state and to some extent outside of stateAcross country and outside India
21Target audienceMainly to farmers, small businessmen and rural industries.Mainly to individuals and businesses
22Governing ActCooperative Societies Act, 1965Banking Regulation Act, 1949
23Funds availabilityLimitedMassive
24Are they nationalised?NoYes
25Do they operate mutual fundsNoYes
26Who regulates lending and deposit ratesRespective banksRBI

The ultimate objective of all these banking entities is to increase financial inclusion by reaching people from remotest locations in India and offer various services such as loans, savings account, money transfer, credit cards and many others.


Aadhaar Card for IT Return, Insurance, Mutual Funds

With an objective of providing unique identity to every Indian, Aadhaar card was launched in 2009. The project is implemented by Unique Identification Authority of India (UIDAI). The benefits of Aadhaar are many and especially poor people can get benefits from the following (there are many):

  • Jan Dhan Yojana, cooking gas subsidy
  • Healthcare schemes such as RSBY, Janashri Bima Yojana, Aam Aadmi Bima Yojana
  • Social security schemes
  • Food and nutrition schemes such as mid-day meals, food security

We’ll now explore how having Aadhaar card will help you in financial transactions apart from the above listed ones:

  • Buy Insurance Policy: Submitting KYC documents is not required. For buying policy, visit the insurance company website and select the online policy. Then enter all the required details. After entering Aadhaar number, some of your personal information will be fetched automatically and displayed on the screen. You can then buy insurance policy online without submitting physical copies of KYC documents.
  • E-verifying income tax: By doing this, there won’t be a need to file Income tax return verification form physically to the Income tax department office in Bengaluru. This is for the individuals with Aadhaar card verified by the electronic verification certification (EVC) system. For doing this:
  1. You will have to link Aadhaar and PAN on the income tax website:
  2. Go to e-filed returns and choose form, click on e-Verify
  3. Next step is generating Aadhaar OTP for verifying return
  4. Once you receive an OTP, you can complete the remaining process.

The existing option of sending ITR-V form manually to the IT department is time consuming. And with Aadhaar linking, time will be saved as verification will be done electronically.

  • Mutual funds investment: With Aadhaar it is possible to invest online when PAN card is not KYC compliant. For doing this, individual needs to visit KYC registration agency website and provide required details such as PAN card, asset management company name, details of bank account through which funds transaction will take place. Provide Aadhaar card number and 10 digit mobile phone number. System will send OTP on this mobile. Enter this OTP on Aadhaar authentication section of the website, upload attested copy of e-Aadhaar. You can also perform this process on the website of mutual fund company.

UWIN Card: Benefits, Features, Social Security Schemes

Despite of various social security schemes in India, it is not reaching the workers from unorganised sectors as expected due to the lack of awareness of their benefits. This is resulting in such schemes are not meeting their purpose.

Keeping this mind, government of India is going to launch UWIN card (Unorganised Workers’ Identification Number) for these workers.

  • It is a smart card scheme especially for workers from unorganised sector.
  • Through this, card holders can avail benefits of various social welfare schemes.
  • Condition is that these workers should not be a part of Employees Provident Fund Organization or Employee State Insurance Corporation.
  • It will be a chip based card and 40 crore workers would get benefit.
  • 88% of India’s population work in unorganised sector.
  • This scheme would be launched in phases and in the initial phase target is to issue 10 crore UWIN cards.
  • Every state will launch awareness programs of this card.
  • Technology for this card will be provided by NIC.

Card is expected to bear the following details of the worker along with UWIN card name and logo:

  • Name
  • Photo
  • Date of birth
  • Gender
  • Aadhar number
  • Unique ID
  • Card issuing authority

What are the unorganized sectors in India?

  • Unorganised sector are those enterprises (proprietary or partnership) having less than 10 workers.
  • Few sectors include forest workers, tribal workers, fishing, handloom, sweepers, construction, mining, transportation etc.
  • These sectors do not have much regulations or provide protection to their workers.
  • Such workers are not aware of risks in their job and are often exploited due to extended working hours, improper safety measures, low wages, unhealthy working conditions and others.
  • Most importantly they are not aware of the social security benefits and how to avail them.

Which are the social security schemes in India?

There are various social security schemes in India covering health, insurance, pension, banking and others which includes: