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01 Jun 2017
Strategies for Managing a Fast Growing Company-humfauji.in

Strategies for Managing a Fast Growing Company

Satya Nadella, CEO of Microsoft once said that, “Longevity in the business is about being able to reinvent yourself or invent the future.”If you’ve been part of a start-up that has experienced rapid growth, then you’ll understand how important it is to constantly improvise and build systems that measure qualitative factors such as customer satisfaction, day-to-day market learning and incorporating innovation.Of course, that sounds much easier said than done but it needs a lot of time, energy and effort from the Core team to bring change, embrace growth and scale up. Also, you will find yourself juggling between organizational and managerial changes while keeping up with an increase in sales.

Regardless of how beneficial or detrimental acceleration there has been, you have to sustain these challenging changes and you have to grow along. But, how do you do it? Here are some tips on how to manage a fast growing company basis my experience as a COO of Hum Fauji Initiatives.

Have a medium-term goal

Yes you read that right. When planning out business, people mostly aim for either short-term or long-term goals.But a series of medium-term goals serve as the stepping stone of the bigger vision i.e. marking a name for your brand and yourself. Many fast-growing business owners change their goals too often, never quite completing a plan before starting the next one. So set medium-term goals and deliver it. You can also seek short-term goals simultaneously like setting skills, gaining market experiences, business accomplishments, etc. that will help you achieve the medium-term objectives faster.It also helps the management team and works effectively to keep the pace of your brand ambassadors, the CFPs in case of Hum Fauji Initiatives. You facilitate your staff way this and it leads to a healthy work environment.

Keep your customers happy, always

Who do you want to see happy at the end of the day? Your customer. No matter what stage your company is, you can never stop listening to your customers. In fact they are the direct reflection of how your product or service is. So always find a way to communicate with them, get immediate feedback, and find a way to keep them happy. Put in place a formal approach to listening to customers all the time and acting on their input. In short, when customers are happy with your business, nothing can stop your company’s growth.

At Hum Fauji Initiatives, customer service and customer feedback is significant. We conduct timely trainings for our team to help them understand the consumer insights and preferences. It is also essential to integrate the company values in the entire team.

Build a good team 

Having team members with right kind of skills is essential for a fast growing company. To maintain the structure, system and vision of your company, you need to recruit and hire the best people available so they can run each of their departments. By doing so, you can focus on the overall strategy. And once you form that team, you ought to develop an approach to managing your growth, possibly with the help of a mentor. In last 7 years, we have been guiding our team internally through one to one counselling and we also do it with the external experts who master the skill-sets that we want to inculcate in our team members as per the evolving ecosystem of financial advisory services.

Find a great mentor

As an entrepreneur, you have lot on your shoulders. A mentor with experience as an entrepreneur or business executive can take a lot of weight off your shoulders. You have the benefit of their experiences and the advice of someone who has been there before.When you are touring or busy pulling more and more business, your mentor can handle your teams and guide their projects. A good mentor with defined roles will any day add better productivity.

Subtract the old, add the new.

When it comes to business, there can be lots of factors or strategies that used to work but not anymore. You have to get rid of them. There are probably a bunch of things you’ve always done that slowed you down without you realizing it. It could be the systems your team use or traditional way of communication. You have to constantly think of modes that can put your employees into something more productive.

Managing a fast growing business requires constant changes in tactics and sometimes it involves tough decision making. This can involve addition and subtraction in the services we deliver, the territories we expand and also at times the people we work with –you have to be vigil and rational be it the choice of vendors or the team. Here I do not mean to be judgemental about the people you work with but I am suggesting about the dilemma a business owner has to undergo and how necessary it is to be rational about the larger business goal – the vision that you had begun with.

By applying the above strategies and learning to manoeuvre quickly will help your business grow and succeed. At Hum Fauji Initiatives, it is been a full circle of experiences, dilemma, an array of events where we go to learn & unlearn and the above is as per my experience as a COO of this amazing dream initiative I chose to be a part of – the Hum Fauji Initiatives.

For more information, feel free to reach us on, contactus@humfauji.in or call + 011 – 4240 2032, 40545977, 49036836 or

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04 Apr 2012
Taxation of House Rent Allowance (HRA)

Taxation of House Rent Allowance (HRA)

We often come across people who consider HRA as the amount which is given in-lieu of accommodation and hence fully exempt from tax. There are an equal number of people who consider it as fully taxable – hence, if they get, say, Rs 20,000 as HRA per month, they consider that they are effectively getting only Rs 14,000 if they are in 30% tax bracket. None of the above is actually true, as explained below.

HRA is the amount paid by the employer to an employee as a part of the salary package. HRA is given to meet the cost of rented accommodation taken by the employee for his stay. A person can claim exemption on his house rent allowance (HRA) under the Income Tax Act if he stays in a rented house. The exemption of HRA is covered under Section 10 (13A) of the Income Tax Act and Rule 2A of the Income Tax Rules.

Two conditions should be met to avail the exemption on HRA:

  • The rent must actually be paid by the assessee for the rented premises which he occupies.
  • The rented premises must not be owned by him.

Please do not confuse the above two conditions as ‘conditions for grant of HRA’ – it is not so. These are the conditions to be met if you wish to seek Income Tax exemption on HRA which has been granted to you by your employer.

While calculating HRA, we effectively calculate the amount that is exempt from being considered as part of the salary. This implies that complete HRA will be considered as part of the salary, except the amount as calculated below.

The amount of HRA exempt is the LEAST of these 3 conditions:

  • Actual amount of HRA received by the person in the relevant period during which the rental accommodation was occupied by him.
  • Amount left after deducting one-tenth (1/10th) of the person’s salary for the relevant period from the actual rent paid by him (Rent paid minus 10% of salary). [Note: No deduction if rent paid does not exceed 10% of salary]
  • In case the house is in Mumbai, Calcutta, Delhi or Chennai, 50% of the salary of the person in the relevant period. In case the house is in any other place, 40% of the salary of the person in the relevant period.

Example to Calculate HRA

The deduction is available only for the period during which the rented house is occupied by the employee and not for any period after that. For example, during the year 2012-13, assume an assessee resides in Pune and gets a salary of Rs 8 lakhs as basic and Rs 3 lakhs as HRA. He pays an actual rent of Rs 2.4 lakhs.

Amount of HRA exempt would be least of the following three conditions:

  • Actual HRA received = Rs 3 Lakhs
  • Excess of rent paid over 10% of salary, i.e., Rs 2.4 lakhs less Rs 80,000 (which is 10% of Rs 8 lakhs salary) = Rs 1.6 lakhs.
  • 40% of salary (as the accommodation is in Pune), i.e., 40% of Rs 8 lakhs = Rs 3.2 lakhs.

As, out of these, Rs 1.6 lakhs is the least, it will be allowed as a deduction from salary for the year. Thus, HRA considered as part of the salary would be 3 lakhs less 1.6 Lakhs = Rs 1.4 lakhs, which will be counted as his taxable income.

Definition of salary

For the purpose of arriving at the deduction available, salary means the basic salary and also includes the Dearness Allowance (DA), if the terms of employment provide for it, and the Commission based on a fixed percentage of turnover achieved by the employee.

When is the deduction not available

The deduction for HRA is not available in case the employee lives in his own house. The deduction is also not available in case the employee does not pay any rent for the accommodation used by him, eg, living with his parents and paying no rent to them.

Feel free to write, mail us at contactus@humfauji.in or Buzz us in on tele numbers 011-4054 5977 / 4240 2032 / 4903 6836 or send us a SMS / Whatsapp on 9999 053 522

 

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