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Kharcha paani

Why India needs OPD insurance

Most Indians avoid doctor visits due to prohibitive costs of health care, thus leading to eventual hospitalisation. OPD insurance can help.
Sourced from the FICCI Feedback Report, ‘A Guiding Framework for OPD and Preventive Health Insurance in India- Supply and Demand Analysis’

The working population in India spends about 60% on the out-patient healthcare treatment annually from their pockets due to the skewed primary care system in India. Despite this, India has the lowest number of Primary Care visits by individuals, hence leading to hospitalisation cases. This is as per the FICCI-Feedback Consulting report titled ‘A Guiding Framework for OPD and Preventive Health Insurance in India; Supply and Demand Analysis’.

The objective of the report is to analyse the demand and supply needs for primary and preventive care insurance and suggest the business potential for the insurers and government stakeholders by introducing OPD insurance covers for primary care. At present, this has not been an area of focus for the insurance companies, leading to various issues that as discussed in the report.

As per the findings, about 16% of the urban population with a paying capacity and existing policy holders would be potential target group to purchase OPD covers if the primary care system is framed in a proportionate way with the right Government intervention.

Insurers suggest that the biggest barrier for offering OPD covers in India is the lack of data for pricing the covers and unorganised regulatory guidelines for primary healthcare. As per the report, early detection, regular health check-ups and preventive methods, could result in preventing a proportion of 44% of hospitalisation cases.

The IRDAI recently launched the report in a function in New Delhi. As per a release, “While the need to include primary and preventive elements in health insurance products is undisputable, it has not made much headway given the concerns relating to likely misuse and overuse. This paper has come at an opportune moment giving scope for discussions not only regarding the supply and demand side aspects of primary and preventive care but also the environment within which these aspects operate.”

The paper, produced by Feedback Consulting in partnership with FICCI’s task force on ‘Primary and Preventive Care’ provides the international big picture framework and a detailed local market opportunity with actionable solutions.

The report analyses the primary care practices of select countries like Brazil, China, Turkey, Thailand, Indonesia and South Africa to draw learnings from an India perspective. The report also highlights local case studies about healthcare start-ups such as Practo Technologies, Qikwell Technologies and Portea Medical for insurers to galvanise the potential of the primary care market.

Three major actionables can enable the OPD insurance market in India – Capitation-based products to allow risk sharing with aggregators and health administrators; electronic health records for frictionless platforms to administer OPD claims, and closed provider networks to align providers and insurer’s interests.

Read the entire report here.

(Picture courtesy www.kokilabenhospital.com. Image is used for representational purpose only)

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Kharcha paani

Start ups: Plan small, reap big

Start ups should not be too ambitious in scope, despite regular funding. Keep your goal large but your scope small.
by Reyna Mathur

Jignesh Parikh runs a web solutions company in Mumbai with his college friend and partner, Ketan Joshi. The duo currently caters to about 20 national clients, and is in talks to increase their office space and staff strength this fiscal. “We have been in business for 10 years now, and it is this year that we are going to increase our office size for the first time. Till now we have been operating from a 10×20 space, which has a low rent and maintenance costs. We have been fortunate to receive so much business despite only five staff members for so long,” Jignesh says.

Despite the modest nature of their office, their business is experiencing a turnover of Rs 6 crore for the last two years. “We realised early on that we were in the digital business, which does not require a posh office. It requires a robust computer and Internet setup, so we invested our initial money in them.” Low overheads and only a minimal staff – all of them web developers, two of them freelance staffers – ensured that of the hefty profits made, only a small portion went towards payments every month. Eventually, the duo has now made enough money to move into a bigger office and hire two more full-time staff.

It is quite easy to run your own start-up provided you are clear in your mind about not wasting your resources for any reason, and are prepared to not even have the money to afford the rent on an office in the initial period. If you get a few basics right and change your approach, you can start small but have big returns on your initial investment.

You are there to do business, not to impress others. No business person in the world, unless backed by a strong funding model, has the means to have a huge staff and a posh office on ownership basis. When you start your enterprise, realise that you are starting it to realise a personal goal, and not to impress people with how big and well-equipped your office is. Many start-ups insist on putting in all their money to keep up appearances, which ultimately leads to huge losses (especially if the expected turnover doesn’t happen). For example, if you have just opened a café, don’t invest in too much imported equipment and staff. As more and more customers begin to trickle in, you can look at investing more money.

Don’t take an office if you don’t need one. Some businesses, especially freelance ones, don’t need an office set up at all. If your work requires you to travel often and take in business via meetings, you might not need a permanent office but a space to keep your computers, phones, printers etc. For a few days, try operating from your home or take up a storage space for rent. In case you need to conduct meetings, you can call them to a café. The overheads you save will help you invest in an office in the future.

Use communal office spaces. Many cities in the country are now offering start-ups and new businesses the use of ‘communal working spaces’, where a lot of entrepreneurs converge at one spot to carry out their daily work and even conduct meetings with clients. The working spaces offer a fixed spot with a computer and Internet connection for a month or longer, depending on the payment plan you select, apart from free use of the facility’s conference rooms and tea/coffee dispensers. Certain places also offer a courier service for your packages at a separate charge. At a monthly rental of not more than Rs 2,000, you get a complete office set up without any overheads.

Replicate, replicate. It is a good idea to maintain a team of experienced freelancers to do all the tasks that a full time staff can do. You will save the money you would spend on their salaries, plus they will each have their own set-up for completing the tasks. You might only have to pay for transporting certain paperwork and equipment, based on your businesses, to and from the freelancers’ postal address. If your work entails the same set of tasks to be done repeatedly (like editing technical papers), pay five freelancers to do it. The work will be replicated five times over at lower costs to you.

(Picture courtesy knowstartup.com. Image is used for representational purpose only)

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Kharcha paani

How to make money as a self-employed person

Don’t let the pressures of being in business for yourself bog you down. Strategise carefully to manage your business finances.
by The Editors | editor@themetrognome.in

Nobody expects business to be an easy affair to handle, but some people make a difficult task impossible by reckless and foolish behaviour. You can’t predict when your next big contract will be signed or when you can announce that you are breaking even, but with the help of cautious spending and common sense habits, self-employed persons can make sufficient money out of their work to lead quite comfortable lives.

Make a list of all expenses. Since your business is going to pay for your household expenses, you need to have a clear idea of what your home expenses are every month, and the times they are likely to increase (like in the case of a family wedding coming up in a few months, or fees for a new course for your child). Once this list is made, preferably with a month-by-month projection, you will be in a better position to devote a minimum percentage of your income to the home. Keep this sum of money fixed till such time inflation or necessary expenses necessitate reallocating more money.

Minimise overheads and expenses. If you are finding the going tough on the business front, causing stress at home, you might consider scaling down your operations, at least for a little while. If you can make do with three full-time staff instead of five, relieve the extra staff and save on their salary. You might even cut down your own salary for a while. Also, make sure that there are no wasteful expenses taking place in the office – air conditioners being left on when nobody is there, printouts being taken repeatedly when only once will suffice, employees leaving computers on even after they leave office, etc. All of these unnecessary expenses can be easily done away with by careful monitoring.

Accept that there will not be fixed income. Being a self-employed professional, whether on a freelance or a business basis, means that your income will be different every month. Some months will be a financial windfall, while others will be very lean. For the times when money is low, anticipate the reduction in business much before you hit a troublesome patch, and set aside funds to help you keep the office running even when there is no business. Business or not, you still have to shell out money for salaries, overhead, water and electricity, etc. so be on the guard before trouble actually comes knocking.

Never make the home finance the business. A mistake that most businesses in the red make is to use up all their assets to keep the office running. They forget why they went into business in the first place – to give a comfortable life to themselves and their families. Hence, the ideal business model is one in which the money flow is one way: from office to home, and never the reverse. People make the mistake of selling off personal assets like jewellery or mortgaging their homes to raise money. Still others take heavy loans against property and insurance policies, hoping to replace all the sold or borrowed assets when money comes later. Your office and home and two separate entities, so you cannot use your home to fund your office.

Invest wisely. You will need to secure your and your family’s life by timely investment in suitable insurance policies, equity bonds, mutual funds, etc. However, don’t opt for the first savings instrument you come across. Take professional help in planning for your family and your business. Your accountant will tell you how much income you will lose by way of paying taxes based on a projection of your business, so make sure you set aside this sum months in advance. Also, your spending should be the same, irrespective of how much money your business gives you. Never be tempted to splurge recklessly when you have surplus funds on hand.

(Picture courtesy www.wordlypost.in. Image is used for representational purpose only)

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Kharcha paani

5 reasons to shop online

With a credit card and access to the right websites, online shopping is the smartest way to save time, effort.
by Dipen Tewari

What would you rather do – make your tired way to the shopping mall to pick out a dress by a reputed brand, or save time and pick the same dress online? As our spending power increases and more and more people get connected to e-commerce, shopping online for a variety of products is becoming the norm, rather than an exception.

Earlier, people were cautious about sharing their credit or debit card information on the Internet. However, with sites enhancing their payment gateway security, shoppers slowly started buying such items as books, perfumes and movies online. Slowly, as sites started offering photographic views of such categories like clothes, shoes and bags, people ventured into buying even these items online. Now we have reached a stage where shoppers are buying expensive diamond jewellery, home appliances, and even furniture online.

If you’re still one of those people who are not shopping online, here’s why you need to check out this option:

Save time. Let’s face it, most of us really don’t have the time to trudge to the nearest mall or department store to check out the sale for a brand that’s been advertising in the papers. We can’t say when we will be done with work, and after facing the long day in the office, how many of us are really in the mood to shop? Instead of checking out products in a physical store, we can save a lot of time by checking out the same merchandise online, comparing the best prices and placing our orders. It’s often that simple, and you save yourself a lot of precious time.

Save the effort. Bibliophiles buy books by the dozen at times, and after browsing for the correct titles and buying the books, they have to cart the heavy purchases home by themselves. Or, there may be people who are scouting for an attractive dining table and who are haggling with the store owner over the transportation costs of their new furniture. Both these categories of shoppers can benefit from shopping online. Not only do many e-commerce portals offer different views of such product categories as clothes, shoes, bags, furniture, even crockery and household utensil sets, they also ship the merchandise to your doorstep for free. It’s really not worth the effort to go to the shops to buy what is so easily available for sale on the Internet.

Save money. Shopping sites like Flipkart have regular discount days every week, if not finite sale periods where customers get very heavy discounts on products. By merely sitting at your workstation or scrolling on your mobile, you can shop on the go for a wide range of needs, compare your spends and make the best purchases. Most reputed portals these days also have tie-ups with banks for cash back offers on selected categories and brands, or on all purchases. Ultimately, you end up saving quite a lot of money with no extra associated costs of travel borne by you.

Change what you don’t like sitting at home. Most e-commerce sites in India offer a ’30-day return’ option for purchases, even for such items as clothing and bags that you may have used during this time. As long as the product is not being returned to the company in a mangled condition, it is taken back with either a full or partial refund (depending on company policy on returns, condition of the product and reasons for returning). This normally happens with categories such as shoes and clothes, where people can mistakenly pick the wrong size or colour; however, jewellery companies such as Caratlane also take back sold merchandise. The best part is, just as the product is delivered to your doorstep, so is it picked up from your home, thus making the entire process convenient for you.

The entire shopping universe at one go. Sure, a mall offers you the widest possible range of products in one spot, but no mall in the world can stock all the brands and services that you require. This is where online shopping portals do the trick – on one gadget, you can access every possible product category, the corresponding brand selling the product, the price range for it and the delivery system. What’s more, these days there are sites that even compare the prices and products across a spectrum of other e-commerce sites, so the shopper is not confused by the wide array of options.

(Picture courtesy www.kgns.tv. Image is used for representational purpose only)

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Kharcha paani

Cheaper to buy space in city malls?

ASSOCHAM report finds that mall space in Mumbai and other metros has dropped by 30% rental value with lower footfalls.
by The Editors | editor@themetrognome.in

Rising inflation and higher living costs have taken a toll on our favourite pastime: shopping. Tighter budgets are prompting many Indians to stay away from shopping malls. This has resulted in lower footfalls and high losses for retailers. On the other hand, if you are looking to buy shop space in a mall, now might be a good time to do it.

As per a new study published by ASSOCHAM (Associated Chamber of Commerce and Industry in India), a “slowdown in consumer footfalls, coupled with online shopping that provides convenience of delivery at door steps, have led to troubles for the shopping malls which are suffering 20 to 25% vacancy rates and 30% drop in rentals in the last one year.” The study finds that this trend runs parallel to a global one, where declining footfalls in retail space in over 200 shopping malls across the US, UK and other countries has lowered commercial space rentals. In the US, the malls are facing 46% vacancy rates whereas malls in UK are impacted by 32%.

“On the other hand, the  Indian e-commerce industry appears to be unaffected by the demand slowdown and is likely to clock a compounded annual growth rate (CAGR) of 35% and cross the $100-billion mark in value over the next five years,” the study finds, pegging the e-commerce industry in India presently at $17 billion.

Continuing on the strong growth momentum of 2015, the e-commerce industry is estimated to see a 72% increase in the average annual spending on online purchases per individual in 2016 from the current level of 65%, the study said. Online shopping mainly focusses on purchasing electronics, books, music, apparel, sporting and outdoor goods.

“It is true that the online shopping has shown handsome growth while the brick and mortar malls are witnessing slowdown. It looks that the growth in e-commerce looks impressive because of quite a low base and increasing penetration of internet,” ASSOCHAM Secretary General DS Rawat said. “The brick and mortar outlets on high streets and inside malls are trying to hold on through lower prices and deals. In India, sales in shopping malls have dipped by 25 to 30% and footfalls by 15 to 20% compared to the same period last year.”

There were around 50 operational malls in 2005, a number that rose to 610 in 2015 in top 10 cities. Additionally, with improvement in infrastructure such as logistics, broadband and Internet-ready devices, there is likely to be a significant increase in the number of consumers making purchases online, the study said. It estimates around 65 million consumers in India to buy online in 2015, as against around 40 million in 2014.

“The challenges of suburban sprawl, worsening automotive traffic, rising fuel prices and the increased difficulty of time management in modern families have made going to the mall a planned activity,” adds the paper.

Mobile technology is also having a huge impact on brick and mortar retail. Amazon recently reported that roughly 8 to 10% percent of their total sales are being generated by mobile devices, and expect this trend to continue upwards.

(Picture courtesy www.indiantravels.com. Image is used for representational purpose only)

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Kharcha paani

5 ways to ‘read’ your employees

You’ll know what your employees are like if you observe, communicate and listen constantly for information and read the signs.
by Reyna Mathur

Consider this situation: you are the leader of a team of young trainees, and you are entrusted with the job of finding out the strengths of each person and fit them to the correct role. How do you achieve this? Do you take one-on-one interviews and ask them point blank what role they would like to do? Or do you opt for a more creative approach to find the answers more effectively?

HR professional Mayank Shetty advises, “The best way is to get the team together for a tea session in the canteen, where we would all get to know each other’s names and break the ice. Then I would suggest a bonding activity like going for a film.” He suggests that putting a new group in a situation where they have to share information with each other and even possibly pay for travel, food and entertainment goes a long way in telling the leader about each person. “For instance, I would notice at once if somebody is unwilling to pay for food, or is not forthcoming with information when asked which film they want to see. I would also note if somebody takes more initiative and plans for the whole group.”

You might want to note these 5 potential ‘red flags’ in your employees:

1. Reserved, uncommunicative employees. There may be at least one person on the staff who is silent most of the times and prefers to be by himself even in a group. Many people suffer from shyness which is often mistaken for aloofness. Try and get the person to speak up more, but don’t get pushy. It is normal for new joinees to be quieter than the rest of the staff, but if the employee has been with the office for over six months and still does not have an office friend, it means that the person functions best when left alone and should not be forced to participate unless ready.

2. The ‘funny’ employee. Every group has at least one ‘office clown’ who can be relied on to keep the atmosphere light. This person will have a joke ready for every situation. However, observe the person’s interpersonal communication with others – does he or she make hurtful comments about the others under the guise of a joke? Does he or she make racist, sexist or obscene comments that may embarrass others? You should clearly indicate that any hurtful or vulgar conversation will not be tolerated in the office. On the other hand, if the employee is also seemingly popular with the staff on an individual level, it means he or she is a good listener and employs humour to make friends.

3. The backlog employee. Your staff will have one person who habitually carries today’s tasks over to the next working day. Observe this person’s working habits for a while to judge why this happens. It might be as simple as plain procrastination, or it may be that the person is so burdened with tasks that he or she runs out of time to complete them. Speak to them if you find that he or she doesn’t finish the work out of laziness. If you need to reassign duties to this employee, do it at the earliest before the backlog increases. If necessary, team up this person with another team member who is finicky about finishing all tasks on deadline.

4. The give-me-everybody’s-work employee. Some members of the staff like to assist others on their projects, but very soon find themselves in a situation where they are doing all the work. This sort of employee is unable to say ‘no’ and hence, gets taken advantage of by the others. Clamp down on this situation at once, and take the employee aside to know why they are doing work outside their own ambit of duties. At this point, they should be able to communicate their problem areas clearly with you, provided you create a non-threatening discussion environment. If they still cannot speak up after gently probing, it simply means that they lack the gumption to defend themselves. You should think twice before putting this person in charge of a team or a project.

5. The ‘It’s not my problem’ employee. This kind of employee cannot be a team player, because he or she does not believe in rolling up their sleeves and getting down to completing the job. Their overall outlook is that they will do only as much as they are paid to do, and will categorically refuse to assist another team member or own up responsibility for an issue. This employee will also refuse to work beyond the stipulated working hours and make excuses to skip all-nighters. The best way to get this person to be productive is to put him or her in charge of a project and convey that the team’s progress will reflect in his KRAs.

(Picture courtesy www.wsj.com. Image is used for representational purpose only)

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