In the knowledge economy, commercial organizations deal with more and more intellect and less and less material. As the critical component in a product/service value proposition is knowledge, professionals like to strike it on their own/partner with fellow professionals rather than serve a large company because of high margins in the service sector. Generally, professionals are highly skilled because of their academic background and rich work experience that is being leveraged to offer value-added service in a niche area. These individuals have enjoyed key positions in different organizations/verticals in the past and intend to apply that knowledge and skills in serving corporate clients in increasing revenues or decreasing costs or adding value. Professionals deeply engage with clients on a retainership basis that gives a steady income for a definite period of time (generally 6 months to 12 months). They also help other clients in one and done deals that provides one-time income. Hence, professionals have a regular source of income from one set of clients to meet operational expenses and another set of clients who seek their advisory services in consideration for a decent fee.
Generally, professionals have a head start because fee-based services that they offer do not require any serious funding. The initial set up costs of a professional firm involves office automation such as computer hardware, software, photocopiers, fax, and printers including rental advance paid to the landlord. This capital expenditure is met either through savings or hire purchase or personal loans. It takes lot of grit and determination to establish a professional practice requiring strong networking skills with people who matter. The teething troubles of a professional firm because of an erratic flow of income makes it difficult to sustain the operations. Most professionals learn the basic tenet – No Network, No Work through the school of hard knocks. To reap synergistic benefits every professional require: participation in seminars, workshops, and symposiums; subscription to journals and magazines; contribution to content in print, electronic, and print media; entertain fellow professionals; and visit clients frequently by being flexible on location to share their valuable thoughts and practices. All these recurring expenses of a professional firm are usually met through swiping credit cards for any kind of purchase, entertainment, and travel needs.
In order to scale up the practice and to take it to the next level, a firm needs to hire more professionals. It is a highly people-intensive and knowledge-driven business activity warranting attracting, nurturing, and retaining talent. A small firm will not have enough cash flow to attract strong minds nor can offer partnership upfront. Hence, most professional firms stay small and local and cannot scale up to become regional or national players. Banks are also not supporting the growth of these organizations as this is not a material-intensive activity that can be offered as collateral to raise short-term working capital. Loans cannot be extended to the firm as they are not asset-driven. Professionals avail loans in their personal capacity to fund the organizational activities making it the most expensive format of doing business. Group Funds are the most appropriate as they provide greater flexibility to save and borrow simultaneously and optimally.
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Group Fund provided me the additional capital – when I needed it the most – for expanding my business. Ever after, I never thought of chit funds the way I did! - K.P. Loknath, Builder.
With GroupFunds the purchase of any asset (car, house, gold, etc.) becomes easier because of the breaking-up of capital cost into smaller amounts. You can build the finance for your asset according to your convenience, advance planning, and repayment capacity. - K. Muralidhar , Project Manager, TCS, Hyderabad
GroupFund offers the best source of finance at lower interest rates, and also provides insurance against unforeseen contingencies. Unlike financial institutions, I can draw upon my fund for any purpose – education, marriage, religious function, spiritual tour, medical expenses, or just about anything! - Sridhar, Team Lead, Infosys
I always wanted to buy a high-end digital camera to pursue photography, but did not have enough money. I was skeptical about finance from banks. Group Fund provided me the necessary finance. Group Fund is not only reliable, transparent, and trustworthy, but obtaining finance when you need is hassle-free and quick, with minimum documentation. - Bharadwaj, Web Developer in TrendaSource
Group Fund lets your worry about car finance take a back seat, allowing you to occupy the box-seat! - S. Giridhar, Project Manager, SRAOSS
Getting a home loan is easy these days, but paying it back is a big problem. Group Fund allows me great flexibility in repaying my debt in small and easy installments. - G. Manohar, HR, Pegasys
When my daughter’s marriage got fixed, I was worried about arranging finance within a short period of time. Group Fund came to my rescue like a savior. I was also able to pay off the loan without any hassles. - S. Anand Swamy, Designer, OMS3
My daughter was very keen in pursuing her higher studies in medicine from abroad. Group Fund helped my daughter in realizing her dream. Unlike banks, I got the money I required without any documentation or delay. Group Fund gave me both joy and peace of mind. - M. Santoshi, HR, APS Associates
After my retirement, I was worried about my finances. But, thanks to Group Fund, all my worries have now been put on the back-burner! - K. Nandu, TL, Soft Tech
My mother fell sick suddenly and had to be hospitalized. She had to undergo a major operation of the spinal cord. I fell short of money and at that time, Group Fund gave my mother a new lease of life by providing the necessary finances. - M K. Mohan, Programmer, MMG