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Types of Marketing

Types of Marketing

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.

Online Marketing

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.

Affiliate Marketing

Internet affiliate marketing, is one of the most popular online marketing mediums used today. Here, revenue is shared between an online merchant and the owner of a particular website. When a end user signs up for a particular product of an online merchant through a website, the website owner receives a commission from the online merchant.

In the recent past a number of different types of internet marketing strategies have been developed. Video ads which are published online are increasingly being used by corporates. These ads are cheap and easy to shoot and they provide you with such a wide variety of audience that was unimaginable in the past. The price of production are reasonable and it is possible to run a video marketing campaign online at much less cost than the traditional advertising.

Other online strategies are pay-per-click advertising, banner advertising, and email marketing. In pay per click advertising, you need to place your bids on search terms. Once you have done that when the relevant keywords are searched by internet user, your ads would be visible to him.

In banner advertising a graphic advertisement is created and then is placed on applicable websites. This advertisement, when clicked on by the interested internet surfer, directs the customers to the website of the advertiser.

Email marketing uses email addresses to promote new products and offers so that potential customers comes to know the new trends in the market.

Article marketing is another type of online marketing wherein you write an article or get someone to write it on a particular product or services and publish them in web directories. With the kind of reach the internet has the chances of customers knowing about your product is high and as a result you would be more likely to gain more customers.

Marketing Your Products Offline

Even in this digital age the advantages of traditional marketing also called direct marketing can’t be overlooked. By using a combination of offline and online marketing strategies, you can reach a wider audience. There are several people who say that direct mail marketing has passed its use by date. However, it still can be used as a potent force to make people aware that you exist. When we say direct mail it means flyers, brochures and postcards which are sent directly through mail. They usually contain a call-to-action response so that the customers feel compelled to notice your product. When you use direct mail you also have to know the addresses of the people, the geographic location which you want to target and expenses on postage and printing material.

Radio and television are other means which can be used to market your products offline. These are some of the most high profile campaigns and they have the capacity to reach a high number of audience in a very short period of time. The main disadvantages of using these as a medium of marketing is their high cost. However, these mediums are an excellent tool which can be used to create a brand name in the market.

Word-of-mouth Marketing

This is the oldest form of marketing and is still being used today. It is one of the most powerful tools of advertising. If you are able to provide an excellent product or service, a satisfied customer would refer your product to his or her acquaintances and friends. You need to travel the extra mile so as to build a relationship with your customers. As a result customers, if satisfied, would keep coming back and if they refer someone you will be able to get more leads. You can try to give some form of discount coupons or run promotion campaigns for regular customers so that you make them feel special which results in building a loyal customer base.

Advertising in a Print Media

Print marketing means advertising your products in a magazine or newspaper. Advertising in these mediums carry numerous messages; it may either for brand promotion or may be in direct response. The focus may be on a particular set of audience who goes through a particular publication. If you want to target people in Chicago, you need to publish your advertisement in the most popular daily newspapers of Chicago. Due to the strict deadlines of publications, be it newspapers or magazines, make sure to prepare your advertisement well in advance.

Communal Marketing

Communal marketing takes the views of the public and involves them while developing an advertising campaign. The consumers are invited to share and express their ideas on the use of the brand and what it would mean to them by giving their personal stories. This results in what is called ‘consumer generated content’ which is then included into the advertising campaign. At the end, the final result of this collective effort is showcased and other people are invited to share the results. This provides the brand with ways to connect with their core market besides opening new avenues to gain new customers.

Having said this, there may be a feeling that it is similar to word-of-mouth or viral marketing. However, it is not the same as communal marketing aims at achieving a higher level of publicity within highly relevant groups of people.

So, use the above-mentioned types of marketing and marketing tips, and see your product being accepted by a larger audience. However, you need to be patient as you can’t expect overnight results.

Management Styles and Techniques

Management Styles and Techniques

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.

Management Styles

Teamwork Style

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.

Directing Style

In this style of management, the manager communicates the “goals, expectations, and standards” to the employees very clearly in the beginning itself. The manager is in direct control of the situation literally, i.e., he dictates to the employees what tasks have to be done, how they have to be done, and the deadline for those tasks. The manager has all the decision-making powers and seldom asks the employees for a feedback. This management style is considered slightly impersonal, but sometimes, such situations arise in organizations, such as meeting a deadline or when the number of employees is too huge, that only top-down management approach or directing style of management can bring desired results.

Participatory Style

Participatory style of management is based on the principle of “faith”. Under this style of management, the leadership and management places full faith in the abilities of the employees. The tasks are given directly to the employees and are well-explained to them in advance. Their inputs on the tasks are also given due importance. The employees know how their work is fitting into the organization’s big goals. When their inputs are sought and they are also made aware how important they are to the health of the organization, their motivation levels become very high and they perform better. This style is usually seen in smaller organizations with lesser number of employees.

Management Techniques

Management techniques are those management concepts or strategies, which are followed to run an organization efficiently and profitably. Management techniques, whether pertaining to employees, the customers of the organization or the partners, in case of partnerships, should be chosen only after evaluating the needs of all three. An example of a management technique pertaining to employees is the use of incentives, so as to motivate them, or to provide them with training in order to update their skills. Management techniques pertaining to customers are usually aimed at keeping them happy and satisfied so that they keep on coming back. An example of this, could be the various discount offers that are given to the customers on special occasions, such as Christmas. Whatever management techniques are chosen by organizations, the main thing to consider is that they should fulfill the needs of the organization and also, of the employees, customers and the partners.

According to business experts, the most effective techniques are those that are a mix of all the styles. The management styles that are followed, should depend upon the situation that an organization is facing. In the fast changing business environment, it will neither be practical nor profitable, to stick to only one style. That is why the management gurus, when giving management tips, always insist that only the organizations that evolve their management techniques, according to the ever-changing corporate culture, will survive to see the future.

How to Create a Franchise Business Plan

How to Create a Franchise Business Plan

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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 business and the second is to sell your idea to entities that could finance your venture. Financial planning is the most important part.

Franchise opportunities are often advertised in newspapers. Business plans related to them, need to be written carefully. This is because, not only is it your blueprint for execution of business activity, but it is also an advertisement of your idea, which you hope to sell a financier, to get seed capital.

How well your business will run, depends on how well you plan and execute it. Leave no stone unturned, while preparing the groundwork for your business. The more specific, detailed, and adaptable business plan you have, more are its chances of success.

Making a plan is comparatively easier as you already have guidelines from a franchiser, about how he expects the business to be run. The possibility of innovation is really very less in case of this plan, as the franchiser usually dictates the designing, look, and operation of a business place. Usually, all these franchise outlets are clones and all that a franchise owner can decide is the location and scale of operation.

Tips on Creating a Plan

Writing a business plan proposal is an art. Let us discuss, what constitutes a good plan and what it should include, section wise.

Introduction to Your Idea
The first part will be a general introduction to the product that you plan to sell, its market popularity, challenges, and risks involved in the endeavor. This should also include the profit sharing ratio, that you will have with the franchiser.

Management Information
This will involve information about the planned chain of command in your business and the management hierarchy. It may also involve the names and designations of the pre-appointed people in the management, along with their work experience details.

Marketing
This will obviously involve the details of how you plan to entice customers for your product. Give a detailed plan of your marketing strategies, target customers, and budget.

Pro Forma Financial Projections
This is the projected performance of your business, which is based upon your market research and it’s extrapolated out of it. This should be a detailed report of expected income, profit, turnover, and operating cost. It should be a sort of future expected balance sheet, based on actual market data and research. You must back up your income projections, with real market data.

Finance Requirement
This part is for the financier, to whom you are selling your business idea. It should include a detailed analysis of the total cost of operation, marketing, salaries offered, purchasing, and other costs. You should come up with a definite amount of money, that you need and expect from the financier and should also include the profit sharing expectations.

Advantages of Hiring an Advertising Agency

Advantages of Hiring an Advertising Agency

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 experience in the field, it will know exactly what to do, when to do it and most importantly how to do it! This will not only save you the headache of coming up with your own idea, but it will definitely be better than what you can come up with. Plus, they have a constant exposure to different types of clients, customers and consumers. This gives them an edge over a layman in coming up with ideas to sell a product.

Professional Approach to the Work
Due to the high level of experience and exposure that agencies have over laymen, they also have a strictly professional approach to their work. While a company may consciously or unconsciously end up bringing an emotional approach to the ad, an agency leaves no room for this. However, this does not mean that the client’s sentiment is not taken into account. It is the combination of the client’s sentiment, the ad agency’s creativity and the customer’s demand that together make the perfect ad. The agency sees to it that all these ingredients are present in an ad. It adds a level of finesse and class to a crude idea that the client has, thus making its professionalism clearly visible.

Well Versed with Tips and Tricks
Another edge that an advertising agency has over its clients, and this is a point that proves its expertise in the field, is the knowledge of the tips and tricks in transforming a dream of the client into his reality, and in turn, a dream of the customer. An ad agency is a knowledge bank of all the small intricacies that go into making a successful ad. This knowledge comes only from experience. For instance, just like a journalist will know exactly what questions he must ask in order to sensationalize a celebrity’s interview, an ad agency knows what appeals and which audience to target and also how to do it, when coming up with an ad campaign for a client.

Media Selection Ability
Choosing an advertising agency to do your work for you has one more very important advantage. Due to its exposure, experience, knowledge and indispensable resources, it also has the ability to know and choose the appropriate kind of media to showcase your ad campaign. Because they are constantly in touch with the media world, they know which media is suitable for what kind of products, they know what demographic to appeal to through which media and also know which media costs how much and how to use these costs to turn in the favor of the client. The agency can guide the client about the above and thus ensure that the campaign is successful.

Diversion of Workload
A company is only as good as the products it manufactures. Hence, the prime focus of any organization should be on the products or services that it manufactures. For your company, the prime focus should be the product that you wish to sell. And for the advertising agency, it is the ad that it makes for you. Needless to say that when the agency’s focus is on your product, you’ll have less to worry about with regards to marketing strategies and selling tactics. All you have to concentrate on is manufacturing and leave the rest to the ad agency. It will fulfill its responsibility towards you as its client and you will have an impressive ad campaign for your product. Everyone does his own job and reaps his own benefits.

Ideas For Creative Business Financing

Ideas For Creative Business Financing

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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 loss, then go ahead and take the money from it. The upside to this is that you are taking an interest free loan from yourself and saving quite a bit of money on that end. You can even repay this loan in variable installments, and not suffer penalties for it.

Family and Friends: This is also a good option for you to acquire funds for your business venture. Depending upon what you discuss with your friends and family members, you can choose the method of repayment, and also if you are liable to pay interest. The downside to this is that if you cannot repay the money back in the time that you promised, you stand to lose a good relative or friend.

Partners: Another way of generating funding is to take on partners in your business. This is again a matter of choice, and your partner must have the money and the inclination to invest.

Loans: This may not be a very creative idea, but some banks offer very interesting kinds of personal and business loans. It is worth a shot to go have a look at these options. You may just strike a gold mine, and find the perfect method of financing your new venture.

Sell the Junk: If you have any unused premises, or unused inventory lying around, or unused trademarks and licensing rights, it is a good idea to sell them to those who need them. This is a good method of recycling your own assets to create finance for your enterprise.

Sell Shares: Selling the shares of your company is a time-honored method of creating finances for your company. If you have a new company, you can do it. You can also do it, if you own a well-set company. You can also sell the shares to your employees. Talk to your CPA and get more details.

Advertise: This sounds silly, but sometimes an advertisement can also generate interested financers for your project. Putting word out there ensures that you generate interest from persons looking for a good investment opportunity. It also gives you a chance to advertise about your company along with it.

These few ideas should help you generate funds for your new venture. Good Luck!

How to Market Your Invention

How to Market Your Invention

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 present in the world right now. Duplicating ideas and inventions is one of the easiest things to do today, so you must be very careful about who you deal with. If you are satisfied that the person(s) you are dealing with are working in your best interests, then you can go ahead and follow these instructions on marketing your inventions.

Step #1: Recognize Your Target Market
You cannot figure out the ways to market without knowing who to sell them to. Since you have created the invention, you will be the best judge of who it is meant for, and who are the people who will use it the most. Keep these targets in mind and then think of ways to reach out to them. Every business venture and marketing operation starts off with this planning process and the recognition of the targeted audience before anything else.

Step #2: Create a Marketing Plan
Once the target audience has been pinpointed, you must start working on a plan to reach out to them. Utilize the various media outlets like the local press, the national press, the international press, the Internet, television, radio, trade publications, magazines and other outlets. Make your presence felt and create an awareness campaign that brings your invention to the attention of the world. Make use of some advertising techniques like OTL advertising (Over The Line), BTL (Below The Line) and OOH advertising (Out Of Home). Allocate a budget to all of these avenues and choose the best course possible and enlist the help of a professional if the need arises. Also remember to file for a patent for your invention or someone else will undoubtedly steal your idea, no matter how small scale it may be. You will need to enlist the help of a patent lawyer for this purpose.

Step #3: Settle on a Pricing Strategy
For this purpose you will need to decide the price at which it is sold, and also the distribution strategy that you intend to follow. Pick a price that covers your operational costs and gives you some profit, but do not name an overly ambitious price. Tie up with retailers and distributors so that the product will be supplied to the market on a timely basis. Admittedly, this is a process that will heavily depend on the nature of the product itself. Some people also choose to get their product licensed and bought by an existing seller in the market and sell it under their brand name. Deciding on how to carry out all these procedures will certainly require the help of a seasoned professional in this business.

There are many more nuances and subtleties to marketing a product, but they are all further subsets of these aforementioned steps. Entrepreneurship is not an easy path to go down, but it can ultimately be a very fruitful one. You should know that a majority of new ventures that come up, perish and fail within no time. So one needs to have good business acumen to make things like this work, but most importantly, one needs to have a good product to sell.

Effective Marketing Strategies Advertising vs Public Relations

Effective Marketing Strategies Advertising vs Public Relations

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

Advertising refers to any form of paid and impersonal presentation of ideas, goods, or services by an identified sponsor.

Advertising Types

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 offers that will further entice the customer to buy a product.
Comparative Advertising: These types of advertisements, indirectly or directly, compare the product to be marketed with another of a similar type. Generally, when there are only a few (usually, two) major players in the market, one or all of these business competitors use this advertising strategy.
Rememorative Advertising: Advertising done through this type is usually in case of a product that is well-established and has a strong-hold on the market. This type of advertising is used only to remind the consumer about the product.

Advertising Graph

Growth Phase: The function of advertising assumes immense importance at the onset or launch of a product. The advertising is usually in full swing in this phase. All the advertising techniques are put to use in this stage. Initially, informative advertising is employed. In the latter part of this phase, informative as well as persuasive advertising is utilized.
Established Phase: Once the product has established a standing in the market, a combination of persuasive, comparative, and rememorative advertising is observed with informative advertising kept at its lowest.
Declining Phase: In this phase, the whole process of advertising is suppressed. Rememorative advertising may be used in isolated cases. If there exists any chance of revival of the product, a novel advertising approach may be applied.

Objectives of Advertising

To generate awareness about a product or a service offered.
To inform the consumer about the various features of the product or service.
To induce the customer to buy the product or avail the services offered.

Secrets for Good Advertising

Repetition of advertisements
Strategic placement of advertisements (including time)
Target market considerations and segmentation while advertising
Quality of advertisements
Form of advertising

Public Relations

Public relations refer to any form of unpaid communication, designed to generate a positive image of a company in the market. It can also be considered as a planned effort by an organization to the establishment of favorable opinion for the organization and its products and services.

Public Relations Tools

News
Speeches
Special Events
Written Material
Audiovisual Material
Corporate Identity Material
Other (social cause, websites, employees)

Public Relations Graph

Growth Phase: As in the case of advertising, public relations in the growth phase is of utmost importance for the organization and considerable time and effort is deployed for public relations.
Established and Growing Phase: It has been observed that most companies do not entail much importance to public relations once the product is past its growth stage. However, PR deals with the image of the organization on the whole and is not limited to a particular product. Hence, ideally, PR should have a graph that doesn’t fall below a minimum predefined value. The PR strategy should be attributed a predetermined level of importance throughout the lifetime of an organization, and a spike should be observed with an increase in PR activities when any new product is launched.

Public Relations – Objectives

Maintaining a rapport with the public
Generating repeat buyers
Maintaining long-term relationships with the clients

Secrets for Building Good Public Relations

Most organizations and its managers tend to neglect public relations as an effective marketing strategy. Even when employed, PR often is not a well-planned and well-managed activity. It assumes a very random form and this can hurt the prospects of an organization and its products. The most paramount suggestion when using PR as a marketing strategy is that it should be given its due importance.

Giving enough importance to PR.
Planning and organizing PR activities.
Significant social work or assistance to social causes.
Introducing every change in top-level management through news and talk-shows.

Advertising vs. Public Relations

Advertising has an extremely wide reach, and thus, is one of the most effective tools of marketing. Additionally, its expressive nature enables it to strongly influence the consumer. A total control over how the advertisement will be presented to the end-user is possible. This facilitates better planning and strategizing of the advertising function in an organization. As against this, the quality of the news, the features of the product it highlights, the placement of this news piece when media relations is used for PR, are all beyond the control of an organization. Advertising also allows a control over the place, time, duration, and repetition; contrary to PR.

Advertising in itself implies paid ways of generating positivity in the market about a product. As against this, PR deals with building long-term relationships and promoting a positive image of the company. PR relates to the unpaid ways of ‘being in news’. Thus, the cost incurred for the process of advertising is much higher as compared to that required for building strong public relations. An activity that is a result of public relations like news, gives the product review from the perspective of a third person and also gives a detached comment on the product. Thus, a PR activity is perceived to be more legitimate and believable by the customer.

Both advertising and public relations can be used as tools for branding. It is important to remember that advertising or public relations, alone will never comprise the marketing strategy of an organization for its product. A combination of both is mandatory for effective business marketing and in order to ensure the success of a product.

Marketing Strategies and Tactics

Marketing Strategies and Tactics

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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

Build Relationships

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 competitors.
A good way to do that is to stay ahead of the competition by offering innovative, technologically-advanced products.
For this, a business’ market research should be very strong, so that change is anticipated in advance and action taken accordingly.

Create Advertising Campaign

The advertising campaign should be such that it highlights all the advantages and strengths that a company’s product and services have over the one’s offered by competition.
The unique selling point, also known as USP of the business, can be something like an excellent after sales service or a guarantee period, which is much longer than what is offered by competition.
This should be creatively stressed upon in the advertising campaigns.

Offer New Products and Schemes

This is one of the most effective and commonly-used tactic by many businesses today – new products as well as new schemes are offered to customers from time to time.
When a business introduces new products in the market, its customer base increases as new customers purchase this product.
At the same time, when old customers see some new innovative features in the latest product, they make further purchases too.
This increases the sales volume as well as revenue for the business.
Another way to increase sales, is to offer some new schemes during the festival and holiday seasons, such as one product at fifty percent discount on another one, especially if the business has some unsold stock of goods lying beforehand.

Implementation of the Strategies

The strategy that is set should be very realistic and measurable. It should also be applicable for a very long time.
For proper strategy implementation, measurable goals should be set.
Goals can be defined in monetary terms, such as doubling the sales revenue in six months.
Once the goals are set, a strategy that sets the business apart from competition should be devised and implemented at the right time in the market.

Proper formulation as well as appropriate implementation of strategies is equally important for them to be truly successful. This however does not end here. Post their implementation, measuring how successful they have been in generating revenue and sales, helps in the formulation of strategies for the next year.

Effective Financial Management Tips

Effective Financial Management Tips

 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.

Tips

This management practice involves the optimum use of funds issued via equity, especially in the case of a business. This source is the best from the risk point of view since there is no involvement of any repayment. Management of business funds should ideally capitalize on equity capital, in spite of it being the most expensive source of funds. Furthermore, it should also involve calculation of risk, cost and control, and maintenance of the cost of funds at minimum. This is done with the intent of establishing a proper balance between the involved risk and optimized control.

Tapping Foreign Investments
In today’s competitive business world, mobilization of funds is very important. The implications play a very significant role in the overall growth of the venture. Financial management involves the raising of funds through the domestic and foreign market. When considering overseas solutions, direct and foreign institutional investments are major resources to tap, in order to raise the required funds. This whole mechanism designed for effective procurement of funds has to be periodically reviewed and modified, understanding the changing requirements of foreign investors.

Utilization of Funds
The ultimate goal cannot be addressed or achieved without first designing a strategy to ensure the proper utilization of funds. This helps to evade situations in which the funds remain idle or lack of profitable utilization of funds in hand. When availing of funds for the business, it is important to understand the involved cost and risk factors. Wastage of funds will only result in the business objectives not being met and ultimately, loss. The funds existent within the business should be critically reviewed from time to time and employed properly and profitably.

Scope and Extent
It has become imperative to address sound financial management in all types of organizations to guarantee efficient use of all resources. Research reveals that many firms liquidate because of mismanagement of funds and not, as it is commonly believed, because of obsolete technology or the lack of skilled labor. It is, in general, designed and customized according to different client needs to optimize output from the assessed fund input. In a situation where resources seem scarce and the demand for funds is high, its proper utilization is an absolute necessity.

The objectives of efficient financial management include maximization of profit. However, profit maximization is a limited objective and if it becomes the sole focus, then the approach only leads to more problems. This aspect must take into consideration, the relationship between risk and profit and work towards achieving a balance. The value of a business is analyzed on the evaluation of the stock market price. Thus, all in all, this financial practice should take into account, present and expected future income and the dividend policy of the firm to come up with a near-perfect understanding of the company’s progress potential.

How to Raise Money for a Business

How to Raise Money for a Business

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.

Personal Savings

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.

Venture Capitalists

This is the next most obvious source for your initiative. Venture capitalists are professional agencies who put in venture capital into an upcoming business. What they get in return is either its share, or a share of the profits, or pretty high interest rates. It may sound like exploitation, but this is one of the best ways to get money. Venture capitalists are always looking for new and innovative business ideas that are likely to succeed.

Angel Investors

These are a refined form of venture capitalists, but many people think that they mean the same thing. Angel investors are less demanding than venture capitalists and remain with your initiative in the long run. Usually, these are someone who you would know personally, and they are simply looking for ways to get a higher return on their investment. How companies raise money depends a lot on the nature of the business and the method of entrepreneurship adopted. Angel investors also help them by providing some guidance and mentoring.

Personal Borrowings

Here is a method that should be avoided as far as possible. You can borrow money from someone you know, namely your friends, family, or other people. The problem here is that once you mix business and personal relationships, things start to get a bit sour. This is a situation that needs to be handled with great tact and diplomacy, and not everyone can manage to do that. Still, this is a method that many people consider.

Bank Loans

Another answer is to approach a bank for a small loan. With banks, you will not be required to pay a very high interest rate, but you will need sufficient documentation about the business model of your initiative. Along with that, your credit history and financial stability will also be scrutinized, in order to find if you are worthy of getting a loan. Most people would love to get it, but are simply not eligible. This is especially true for someone looking to collect the money, without owning any fixed assets.

Advertising

Here is another answer, but one that requires a suitable amount of investment and more than a fair share of patience. If you can handle the advertising of your upcoming company well, you can get more than enough money to sustain it in the long run. There are some websites that also allow you to advertise your business plan and then suit you up with a matching investor. This is a slightly unreliable method for sure, but it works wonders if one can find the right match.

Other Options

One can approach some small-business investment companies, business development commissions, life insurance companies, or a money broker. The reliability of these options will not be very high, and their demand may be exorbitant, but if you have run out of all other options, then this is something that you will need to resort to.

You should act as early as possible, in order to get sufficient capital and business financing. There is a variety of sources available, and as long as you have a great and reliable plan, you will be able to procure capital. It is not all that difficult; all you need more than anything else is faith in yourself.