What should I do to open my own business?
I am not sure how many of us have never asked this question to ourselves and if you are one of them certainly you will find this post more interesting than anyone else. Reason is not that you are any way different than most of the people, the reason is you are even backward in nasty and time wasting thoughts of peoples imagination.
So let’s come back to the point. Why after more than three years of job and more than 26 years{those are excused who knew my real DOB} of my life I came to vomit all this with you when I certainly know that I will listen those preoccupied thougts from your mind that yahan per sabhi budhimaan hain kripyaa gyaan na baatian. So my sincere sorry to those gyani peoples that if they want to skip this is their own wish.
By d way … I wondered yesterday again when I saw the most intrigued topic of two college students who wanted to open there own business and I correlated that with the add of naukari.com that how passionate and the thought of opening a business is. I also correlated that with our college time gossips when we used to met with our zero programming skills and used to open big empires, and that too was happened when we had decided who is going to be CEO, CFO of CTO. True our thoughts were impulsive, our intentions were right and our motive was genuine.
But had we missed anything? Were we lacked in capability? What was the reason that we were not even together with those thoughts of opening something of our own and now we laugh, move forward and never turn around to them?
Do we hate them? May be the answer of this can make some on of us closer to those ideas closer to those dreams and closer to real success of their own thoughts and imaginations.
Monday, November 14, 2011
Monday, June 06, 2011
The War between Touch screen and Stylus
Topic may look something funny but it is not....
I wrote this para with this completely irrelevant topic because the situation is like this only. Taking democracy as LCD display and politicians as a Stylus i am not sure what is going to be the situation. At one side we say that we have the worlds biggest and finest democracy where people has the right to express, right to protest and right to go any where with in the country, then why the security guards of politics are opposing it. Some times we feared that waving Indian flag with in the periphery of India can create communal disharmony... Other time we say that a gathering more than a fix number can create a imbalance to the peace of a city and disallowing that then where are those human rights and where is the government who believe to be the one going to ensure this for the common man. Where is the judiciary to protect this and where are the common man to ask for this. But yes it is tough to feel that we are in such a transition phase that nth g could be said right or wrong.
Confused ..... to whom we have to go with .... the stylus {Government} or to LCD {Country}
I wrote this para with this completely irrelevant topic because the situation is like this only. Taking democracy as LCD display and politicians as a Stylus i am not sure what is going to be the situation. At one side we say that we have the worlds biggest and finest democracy where people has the right to express, right to protest and right to go any where with in the country, then why the security guards of politics are opposing it. Some times we feared that waving Indian flag with in the periphery of India can create communal disharmony... Other time we say that a gathering more than a fix number can create a imbalance to the peace of a city and disallowing that then where are those human rights and where is the government who believe to be the one going to ensure this for the common man. Where is the judiciary to protect this and where are the common man to ask for this. But yes it is tough to feel that we are in such a transition phase that nth g could be said right or wrong.
Confused ..... to whom we have to go with .... the stylus {Government} or to LCD {Country}
Tuesday, May 24, 2011
How a credit card works when you shop….??
A small situation to make us understand the funda…
Priya: I want to buy a Sony digital camera costing Rs.20,000, but I don?t have any cash right now.
Raj: Why don?t you use your ICICI Bank credit card? Never heard them say ? Hum Hain Na ??
Priya: I am quite skeptic about using these cards. I pay using the card, get a bill after 30 days and pay after another 20 days. This is a maximum of 50 days interest free loan. Why does any bank do it?
If I borrow Rs.20,000 on personal loan at 11%.
Interest to be paid for 50 days = Rs. 20,000 * 11% * (50/365) = Rs. 301.40.
Here the bank is giving me a loan without interest when I use the credit card. Something is wrong somewhere!
Raj: Well? let me tell you how it works when you use your card to pay for the camera.
• You present your ICICI Bank credit card ? a VISA card.
• Sony World swipes your card on a machine provided by Citibank. Lets call Citibank ? the acquirer bank and the process of Sony World swiping the card on that machine ? requesting authorization .
• Citibank communicates with the card issuer ? ICICI Bank through VISA Network to check if the card is valid and has the required credit limit.
• ICICI Bank reviews and approves / declines which is communicated back to Sony World.
• You sign a receipt called Sales Draft given by Citibank. This is the obligation on your part to pay the money to ICICI Bank. Data on this receipt can be captured electronically and transmitted.
At the end of day or at the end of some period Sony World chooses:
o Sony World submits the receipt you signed to Citibank who pays Sony World the money. Sony World pays Citibank a fee called Merchant Discount . Let us say this is 6% of the sale value = 6% * 20,000 = Rs. 1200
o Citibank sends the receipt electronically to a Visa data center which in turn sends it to ICICI Bank.
o ICICI Bank transfers the money to a settlement bank which in turn transfers the funds to Citibank.
o Citibank pays ICICI Bank an Interchange Fee of 4% of the sale value = 4% * 20,000 = Rs. 800
o 20 to 50 days later ICICI Bank gets the money from you ? and you don?t pay the interest!!
Priya: Interesting! So Sony World pays more than the interest that I should have paid for the loan that I take. I, as a cardholder have the following benefits
1. Convenience of not having to carry cash.
2. Credit availability ? free of interest.
However what benefits does Sony World get for paying so much money? Isn?t it more profitable for them to take cash? They can save as much as Rs.1200.
Raj: Certainly. Some retail outlets offer you discounts if you pay by cash, don?t they?
However when you don?t count the money that you are spending, you tend to buy more! Cards encourage this ? called impulse purchase .
If you did not have access to credit, you would not have bought the camera this month ? or may be not any time soon either. By accepting cards, the merchant is actually extending you credit at the risk of the card issuer. He pays money to the banks to carry that risk.
Priya: So ICICI Bank uses this money to pay back to us when they announce 5% cash back. They insist that the Sales draft that I sign at the retailer should also be from ICICI Bank. This means they are saving on the Interchange Fee and also pay me a part of the Merchant Discount that they get.
Raj: Exactly! If you have noticed, ICICI Bank gives you the cash back in the next credit card statement. They keep the ?cash back? money for a maximum of 60 days before passing on a part to you. This accrues them interest too.
Say if ICICI Bank earns an interest of 6% per annum for the cash they carry ? they get Rs.1000 * 6% * (60/365) = Rs. 10
That is not huge, but money nevertheless. And when you consider that almost everyone in this city shops with a credit card these days, it is a big sum.
Priya: And that also explains why banks tie up with petrol pumps ? like ICICI Bank has tied up with HPCL and I could re-fuel there without having to pay the fuel surcharge of 2.5%. The card issuer and the acquiring bank is the same and that saves interchange fees.
Raj: Good! You seem to have figured out how it all works! Let me summarize:
Priya: Sooper! Toh ab shopping chalein?? Lets not miss this Christmas and New year Shopping Festival!
Priya: I want to buy a Sony digital camera costing Rs.20,000, but I don?t have any cash right now.
Raj: Why don?t you use your ICICI Bank credit card? Never heard them say ? Hum Hain Na ??
Priya: I am quite skeptic about using these cards. I pay using the card, get a bill after 30 days and pay after another 20 days. This is a maximum of 50 days interest free loan. Why does any bank do it?
If I borrow Rs.20,000 on personal loan at 11%.
Interest to be paid for 50 days = Rs. 20,000 * 11% * (50/365) = Rs. 301.40.
Here the bank is giving me a loan without interest when I use the credit card. Something is wrong somewhere!
Raj: Well? let me tell you how it works when you use your card to pay for the camera.
• You present your ICICI Bank credit card ? a VISA card.
• Sony World swipes your card on a machine provided by Citibank. Lets call Citibank ? the acquirer bank and the process of Sony World swiping the card on that machine ? requesting authorization .
• Citibank communicates with the card issuer ? ICICI Bank through VISA Network to check if the card is valid and has the required credit limit.
• ICICI Bank reviews and approves / declines which is communicated back to Sony World.
• You sign a receipt called Sales Draft given by Citibank. This is the obligation on your part to pay the money to ICICI Bank. Data on this receipt can be captured electronically and transmitted.
At the end of day or at the end of some period Sony World chooses:
o Sony World submits the receipt you signed to Citibank who pays Sony World the money. Sony World pays Citibank a fee called Merchant Discount . Let us say this is 6% of the sale value = 6% * 20,000 = Rs. 1200
o Citibank sends the receipt electronically to a Visa data center which in turn sends it to ICICI Bank.
o ICICI Bank transfers the money to a settlement bank which in turn transfers the funds to Citibank.
o Citibank pays ICICI Bank an Interchange Fee of 4% of the sale value = 4% * 20,000 = Rs. 800
o 20 to 50 days later ICICI Bank gets the money from you ? and you don?t pay the interest!!
Priya: Interesting! So Sony World pays more than the interest that I should have paid for the loan that I take. I, as a cardholder have the following benefits
1. Convenience of not having to carry cash.
2. Credit availability ? free of interest.
However what benefits does Sony World get for paying so much money? Isn?t it more profitable for them to take cash? They can save as much as Rs.1200.
Raj: Certainly. Some retail outlets offer you discounts if you pay by cash, don?t they?
However when you don?t count the money that you are spending, you tend to buy more! Cards encourage this ? called impulse purchase .
If you did not have access to credit, you would not have bought the camera this month ? or may be not any time soon either. By accepting cards, the merchant is actually extending you credit at the risk of the card issuer. He pays money to the banks to carry that risk.
Priya: So ICICI Bank uses this money to pay back to us when they announce 5% cash back. They insist that the Sales draft that I sign at the retailer should also be from ICICI Bank. This means they are saving on the Interchange Fee and also pay me a part of the Merchant Discount that they get.
Raj: Exactly! If you have noticed, ICICI Bank gives you the cash back in the next credit card statement. They keep the ?cash back? money for a maximum of 60 days before passing on a part to you. This accrues them interest too.
Say if ICICI Bank earns an interest of 6% per annum for the cash they carry ? they get Rs.1000 * 6% * (60/365) = Rs. 10
That is not huge, but money nevertheless. And when you consider that almost everyone in this city shops with a credit card these days, it is a big sum.
Priya: And that also explains why banks tie up with petrol pumps ? like ICICI Bank has tied up with HPCL and I could re-fuel there without having to pay the fuel surcharge of 2.5%. The card issuer and the acquiring bank is the same and that saves interchange fees.
Raj: Good! You seem to have figured out how it all works! Let me summarize:
Priya: Sooper! Toh ab shopping chalein?? Lets not miss this Christmas and New year Shopping Festival!
Thursday, January 13, 2011
A culprit Mind
"I will do this provided me that... " it's a very common dialogue we say, hear and feel from top to bottom except the very few people of the world. I am not sure why so ...or if say that i know that, then i must say i am not that confident, dedicated and genuine to my own dreams, commitments and destiny.
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