Many people opt for franchise businesses nowadays. The advantage of opening one is having the guarantee of a branded product to back you up. The proven market popularity is something which reduces some of your anxiety regarding promotion of a new product. Presently, most product companies prefer opening franchise outlets and leave the management to private parties on a profit-sharing basis. A franchise is a mutual, win-win solution for the product company, as well as the franchisee. The management gets the benefit of a proven brand name and the company saves on operation and setup costs.
About the Plan
Firstly, a business plan is a blueprint of everything that you plan to do in a business. It is the practical realization of your abstract idea of a business, considering all ground realities. It is a plan of action, which is designed after market research, operation cost evaluation, and after a decision to start up that business, has been taken.
Such a plan is made with two intentions. One of them is to have a clear and precise idea of what you intend to do in your
Whether you are already a business owner, or are starting up new, the first thing that you will think about is finance. There are many ways of going about getting the money you need.
That said, you must also take into consideration several factors before you get the money. Have a look at the various options you have in front of you, and compare it with your business plan and projected revenues. Realistically speaking, identify how you would be able to repay the money that you are borrowing.
Here are some ideas that will help you get the money you want.
Savings Account: Here we are talking about your own savings account. Before you dip into your kitty of savings, consider the following: How much savings have you got in that account? Are you dependent on that money for your day-to-day expenses? How confident are you that your business venture will succeed? Be realistic while you make these considerations. If the savings account is not something you depend upon, and you can afford to forget about the money you take from it should you incur a
Organizations spend so much of their time, effort and money on coming up with them, the answer is quite simple. The aim of any business is to generate profits, and marketing strategies do exactly that – they help generate more business and revenue. They are devised not only with regards to selling and promoting a product, but also about the kind of customer service that the organizations will provide. Below is a list of some of the most successful tactics, which businesses have been implementing in today’s modern, competitive business scenario, to earn revenues and to keep the competition at bay.
Effective Marketing Strategies
People are very important in business, whether they are customers, suppliers, or employees of the organization.
It is necessary to form relationships with one’s customers so that they come again to make repeat purchases.
Relationships need to be built with employees as well so that the organization has a positive word of mouth in the market.
Differentiate from Competition
One of the most successful of marketing techniques is to create your own identity, which is totally different from the rest of the
The verb manage comes from the Italian word maneggiare which means handling (especially a horse), which is derived from the Latin word manus meaning hand. In the 17th and 18th centuries, meaning of the English word management evolved from the Old French word mesnage.
“Management is the art of getting things done through people,” says management consultant Mary Parker Follett. People are perhaps the most valuable resource of a business. But there are others, like financial resources, infrastructural resources, inventory, and technology, whose optimum use is essential for effective business management. According to Peter Drucker, “Managers give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals.”
Management skills are classified as political (used in building power and business networking), conceptual (used in analysis of situations), diagnostic (used in taking an action in response to a situation), technical (domain knowledge), and interpersonal (people skills).
Management quote by Peter Drucker
Frenchman Henri Fayol describes management as a composition of five functions, namely planning, organizing, commanding, coordination, and control. Modern texts have reduced them to four, which include, planning, organizing, leading, and controlling.
Planning in management
Planning involves identification of your business goal and finding
Management consulting is a sought-after, high rewarding field of work for many. The profile of a management consultant is considered among the highest paying jobs. It is a job that demands filling up technical gaps that exist in an organization to improve its productivity and efficiency. The management concepts are the cornerstones of these firms. Firms hiring such consultants are many, but the ones that top the list are only a few. Getting there takes a great deal of effort, which includes formal training and a good work experience. Consulting firms are breeding grounds of the best intellectual, analytical, and creative minds in the present day’s highly competitive and fast-paced corporate scenario. Here’s taking a look at list top firms with a brief overview.
Leading the list is Accenture, the world’s largest, and the most famous. It is considered to be a leader in the areas of systems integration and business process engineering. The company has presence in over 80 countries around the globe. Accenture is a spin off, of Arthur Andersen Consulting, a famous firm in its own right. Accenture grew bigger in terms of revenues and presence than Arthur Andersen by 2001.
Closely following is McKinsey. This is
A leader or a manager should be very careful, while choosing the business management styles and techniques for an organization. This is because the success of an organization depends upon the kind of management styles and the management skills which the managers exhibit. Some management styles are people oriented, while others are project or work oriented. Here are the three management styles which are primarily used by the managers in today’s organizations.
Here, tasks are accomplished by constituting teams first, and then dividing the tasks among the teams. It is commonly observed that tasks are accomplished more efficiently through teams. That is why most organizations follow this style of management. The different team members bring their knowledge to the table while accomplishing various tasks, and hence, tasks can be done more quickly in teams rather than by individuals on their own. In order to function properly, there should be proper workplace communication between the various team members and also between the manager and the team members. “Team spirit” is a prerequisite for the success of this style of management.
In this style of management, the manager communicates the “goals, expectations, and standards” to the employees very clearly in the
Financial management means putting together the economic resources at hand to make efficient use of them and taking decisions that can successfully culminate in acquiring more assets for the family or business. With effective utilization of funds, you can even attract finance to meet the short-term and long-term requirements of the family or firm. The whole process is intense and deals with the selection of specific or a combination of assets to deal with the monetary issue, if any. The overall aim is to reduce the size of the problem and ensure fiscal growth of the enterprise or family funds.
Financial Management Analysis
This analysis deals with the calculated and predicted cash inflow and outgoings. The analysis is directed towards the study of the effect of existent funds on managerial objectives. It handles everything, right from procuring the funds to effective utilization of the same. Dedicated analysis handles procurement of funds from multiple sources, and since the funds are from different sources, they naturally need to be addressed, considering the difference with regards to the potential risk and control.
This management practice involves the optimum use of funds issued via equity, especially in the case of a business. This source is the best
Good ideas may surface from the farthest reaches of the organization. Thus, the challenge for top executives is to stimulate experiments across the entire organization, select the most promising of the lot, and disseminate them quickly and appropriately throughout the business.
We are living in a time when information and technology has given rise to abundance, so the competition in supply market is growing at a steady pace. Good ideas, in times like these, need to be nurtured and applied as efficiently and effectively as possible, in order to reap economic benefits.
Early research on innovation tended to address the organization’s ability to respond and adapt to external and/or internal changes (Burns and Stalker) (Hull and Hage). Subsequent work on innovation stressed more on proactive innovation and distinguished between the types of innovation. There are three types of innovation (process, product/service, and strategy), each of which can vary from incremental to radical and from sustaining to discontinuous.
Emphasis was on the organization’s ability to promote both process and product innovation, regardless of an immediate need for change (Kanter).
Innovation vs. Invention
Joseph Schumpeter defines innovation as the combination and creative application of existing and new knowledge of elements to improve existing and/or develop
Exit strategy should be planned, keeping in mind the long and short-term objectives of the company owner. It should be considered and developed right from the beginning, once you have finalized with your long-term and short-term goals. Keeping the expectations according to your business, and planning the strategy will be helpful. Before you plan the exit strategy, it is required to concentrate on strategic planning, organizational planning, and financial planning of the company. The three important questions which you must address to yourself about your business before writing the plan are: to whom, by when, and for how much.
Writing the Exit Strategy
Choose the Best Exit Strategy for your Business
Selling the business to a family member.
Selling the business to other company, which is usually larger than yours (acquisition and merger).
Selling the business to Employee Stock Ownership Plan (ESOP), in which the stocks of the company is sold to the employees of the company itself.
Initial Public offering (IPO) is a risky strategy in which the stocks of the company are sold to the public. The investors need to take a risk because the traders get in (buy stocks) and out (sell stocks) and may cause a financial swing.
A home based business needs to have a proper plan in place for it to be successful. Working from home is a wonderful option for those of us who cannot, for whatever reason, go to an office for work. Several employment options exist for such entrepreneurs. However, to take advantage of the offers, you need to be well planned and organized.
First things first, you need to know in which area you want to provide work. For that you need to examine your skill sets and qualifications. That should give you a fair idea of which service you are able to provide.
Even at home, you should have a dedicated work area where you can work peacefully. Finding such an area is the key, especially if you are staying at home because of kids or some other responsibilities. You need to find a time and place, where you would not be disturbed or distracted. You can then fix the number of hours, that you can devote to your work based on these factors. Your earnings would therefore depend on the number of hours you can spend working, and how fast you can do your work within these restraints.
Financing a business, keeping the economic perspective in mind, is very different from obtaining a loan for personal reasons. From an economic perspective, the expenses that have to be borne by a business can be broadly classified into fixed costs and variable costs. Fixed costs remain the same, regardless of the level of production. In other words, whether or not a business is in operation, the amount of fixed costs will remain the same. Expenditure on machinery and equipment is an example of fixed cost. Variable costs, on the other hand, change, depending on the level of production. Variable costs are directly related to the level of production. The cost of raw materials is an example of variable cost. Hence, from the point of view of an economist: Total Cost = Total Fixed Cost + Total Variable Cost
From the perspective of accounting, costs can be classified as implicit or explicit. Explicit costs are expenses which can be accounted for in monetary terms. Both, rent and wages paid, are explicit costs. On the other hand, a businessman who does not pay his wife for assisting him in day-to-day workings of a business, is said to incur implicit costs. Hence, for the
The capital is one of the first things that needs to be taken into consideration when one is setting out on a business venture, and there are many different sources to obtain this capital. It is not necessary to stick to one particular source rigidly; even a combination of various different sources can be used.
Anyone who is wondering how to raise money for a restaurant, a start-up, an advertising agency, or any other small-scale venture should keep these methods in mind. Approaching the right people for it is vitally important for the success of the business, and if this is not catered to properly, it will be doomed from the very beginning.
This is the most obvious source of money for starting a business. If you have saved up enough money over the years, go ahead and make use of it to serve the underlying purpose. You will not be answerable to anyone, and you will not have to worry about repaying someone. If you choose this option, ensure that you are not using all your savings though. Many people neglect this option because if they lose it, they will have nothing left to live on.
This is the next
Social cost benefit analysis is a part of calculating the merits of a project or a government policy. As the name suggests, social cost-benefit analysis of anything is associated with its social impact. This means that how a project or a policy will affect people is analyzed. Only after calculating the opportunity cost of a project, it is approved.
The scope of social cost benefits can be applied to public investment and also to private investment. In case of public investment, it plays a major role in the economic development of a developing country. And, in case of private investments social cost benefit analysis is important as investments are to be sanctioned and are monitored by the government. There are two aspects of calculating the cost benefit analysis of any project. One is the private cost-benefit analysis and the other is social cost-benefit analysis. Though, social cost-benefit analysis is usually undertaken by the government.
Social cost is often in contrast with private cost. Major differences between social cost benefit analysis and private cost benefit analysis are as follows:
1. In social cost benefit analysis, not only profit but also other effects like how will it affect life of others are considered. Whereas, in
The American Marketing Association (AMA) defines marketing as the activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The contribution of marketing to the success of any business is highly significant. In fact, marketing has the power to determine the success of a particular product or service launched. Effective marketing involves the application of many strategies, two of which are: advertising and public relations. We shall attempt to understand these two terms in the following discussion. Henceforth, in this article, the use of the term product will refer to both, a service or a product that is to be marketed.
Advertising refers to any form of paid and impersonal presentation of ideas, goods, or services by an identified sponsor.
Informative Advertising: This includes advertisements that aim to provide the customer with information about the product. This form of advertisement informs the customer about the various features and the benefits of using the product.
Persuasive Advertising: The objective of this form of advertisements is to persuade the consumer to buy a particular product or employ a service offered. It usually includes some attractive additional features or special
Advertising has reached a very high level of importance in today’s fiercely competitive world. Cutthroat competition has compelled manufacturers to review their selling strategies and come up with unique and innovative ways to sell their products. This has in turn prompted them to hire advertising agencies to do the legwork for them. There are many reasons why hiring an advertising agency makes sense to a company. A few of them have been discussed in this Buzzle article. Go through them and you’ll know the benefits of getting your products advertised by professionals.
Exposure and Experience in the Field
The biggest plus point of hiring an advertising agency has is the immense level of experience that it holds in comparison to a company that is hiring it. Take your own company for instance. If you want to come up with a novel idea to sell your product, you will spend a lot of time and resources trying to come up with the perfect ad. Market research, creativity and the actual realization of the idea can take a very long time by which time the whole demand focus may shift totally. On the contrary, when you hire an agency, due to its tremendous
In recent years, the amount of money spent on advertising has reached staggering figures with amounts surpassing 500 billion dollars being thrown about. And that is a conservative estimate. The effectiveness of the various ad campaigns launched using the money spent is not as well documented, but for sure, there would have been many ads that fell way short of what they were intended to do; capture the imagination of the public and persuade them to spend on the brand or product advertised. Using different methods of advertising for creating advertisements that have recall for many years is difficult but not impossible. In this article we list out techniques and examples of ads using these techniques that will help you understand how you can raise the bar for the field of advertising.
Methods and Examples of Advertising
Create Characters: One of the best methods in modern advertising that you can employ in order to have an effect on the consumer’s mind is to create a character that will become synonymous with the brand that you are promoting. This is a great idea, but in order to ensure that character brings about brand recall, you need to have the character as your brand
Whether you are starting a company or you are already established in your field of expertise or about to launch a new product, you would always need to market whatever you produce. There is an old saying which says that the worst marketing is no marketing at all. Irrespective of your budget, there are several types of marketing which you can use to make your services known to people. There are some types of marketing like telemarketing and multilevel marketing, which you may opt to use, but the success rates have not been encouraging.
With the exponential growth of the internet over the last decade, internet marketing has become one of the most popular strategies used by every businessman. Today, most of the people, especially youngsters, search for information over the internet thereby, making it an excellent place to reach a wider audience. Internet marketing is also called online marketing, search engine marketing, web marketing, and e-marketing. Thanks to search engines, today you are able to place ads of your company and products alongside with your competitors at a competitive price.
Internet affiliate marketing, is one of the most popular online marketing mediums used today. Here, revenue is shared between
Marketing geniuses and advertising gurus have every now and then stated the crucial role of marketing campaigns in establishing the identity of a product and eventually making it a brand. For turning a product into a brand, effective marketing is of utmost importance. Apple’s iconic ‘Get a Mac’ advertising campaign and its iPhone launch are some classic examples of the power a good product, and excellent marketing strategy possess. Also, we can’t forget Nike’s ‘Just Do It’, or the ‘Think Small’ Volkswagen ads.
Tips for Effective Marketing
The importance of marketing is not a hidden fact for any firm. Instead, every firm is so aware about it, that the level of competition has become intense and challenging.
Hit the Bull’s Eye
The hallmark of every successful marketing campaign is to create a niche market; a target audience that has to be reached through effective usage of marketing tools. As a part of your campaign, you have to ensure that you influence those customers who are in your domain. Now, to zero in on the target audience, you’ve to carry out extensive market research. Neglecting this crucial parameter will deviate you from launching your product successfully.
Through marketing research, marketing teams gather data, and understand
It may seem like the world has run out of innovative inventions in the last few years, but the fact of the matter is that the most dedicated minds will always find ways to create something novel. The kind of technology and tools that are available to the common man today has made it possible to push new boundaries and explore new avenues, and people who are curious about how things work will always find a way to build something that has never been seen before.
Assuming that you have already accomplished this stage, you will now surely be looking to market your invention effectively. Finding the right audience for an invention is essential to its success, and this is another area where the massive technological setup in place comes in handy. There are a number of new channels and avenues in place today for people who are looking to sell things and these need to be managed in an effective manner.
Steps to Marketing an Invention
The most important thing to remember is to not get carried away by someone who is over enthusiastic to help you out. You must be wary of scams out there, because there are plenty of them