Author: busin-wTde8

Stages of Business Growth

  1. Initiation: There can be varied reasons for a business start-up but the main values in running the business are of those who are the founders. We can see that company exhibits the main skills of the founder in its spirits, for example, if the founder is an engineer, he will emphasize in production rather than sales and marketing which should not be neglected. Main efforts are centered on the acceptability of the product in the market. If the owner can provide the demands of business i.e. time, energy, and finances, he/she can move to the second stage. Otherwise, he/she will have to wind up their business as there is limited time for the company to stay at one stage. Here the main focus changes to establish the company and earn profits. With this financial push company will need to formalize the system and start record keeping, an unskilled manager can’t handle this all. After this, there will be demand for change in administration’s style because of increased activity in his business.
  2. Growth: The moment a company moves forward to the expansion stage it should be able to earn a decent profit, but that profit will not go to the owner. This is because it will be invested in the business in order to assist in the capital demands of the company. It demands time for coordinating functional managerial activities; it demands complicated organizational structure mainly focusing on functional lines. Now research and development will be established in order to increase product range. At the start, it will be on a smaller scale because of lack of capital. If management continues changing its environment, the company can stay at this stage for some time. In many cases, owners sell their business at this stage for substantial benefits. The increase of new markets and product will demand more finances. This stage faces larger competitors who deal the situation by putting stress on emerging firm; this stress can be in the form of very low prices as well. At this stage over trading is the biggest threat if not handled properly it can lead the business to demise. As the company grows it need to extend geographical trading and distribution, so ‘supervised supervision’ will be required at this stage. If new competitors enter the market and the owner wants to maintain his shares, he will have to put more capital by himself or attract some partners.
  3. Expansion: This stage demands proper management reports, budget control, and dispersed authority, along with a formal accounting system. Basic adaptation at this stage will be to systemize administrative roles which are keys to survival through this stage. The expansion stage demands stable long term funds which will be important and if there is not plan for partners then this stage must be considered right now. Although retained earnings are major forms of funds but dividends are the special attraction to the investors; at this stage these are inevitable. Now company’s track record will help in gaining long term loans but the company will have to give security in the form of assets.
  4. Maturity: At this stage main issues are about expense control, search for growth opportunities and productivity. The direction of authority can be towards functional lines or it is reorganized with production lines. As there is severe price competition, therefore, productions department should be the center of focus and authorities should emphasize on innovative moves towards betterment.

Now basic investments are in sales and marketing struggles and maintenance and plant up gradation. The company grows up to a level that income is sufficient to tackle this but occasionally more long term load prove to be a support. At this level firm may limit its operations or move on, normally acquisition or floatation in order to become a large corporation.

Move From Employee to Entrepreneur

  • Get clear on your goals/passions – It’s not enough to decide to become a business owner. There are several questions and things to consider before you move forward in becoming a business owner. You will need to think about what kind of business you wish to run. You`ll need to determine if you wish to grow it from scratch, buy an existing business or purchase an available franchise. But even before you decide that- you should think about how the business will fit in with the rest of your life. Running a business can be a huge commitment of time and money. So ask yourself what do you enjoy doing or what will bring you joy? You will spend much of your day on your business so it’s a good idea for the business to provide work you actually enjoy doing. Ask yourself what you are most passionate about? What would you love to do? What is your dream job/business?
  • Do your research/homework – Don’t make any rash or impulsive decisions and don’t leave your day job until you are absolutely sure of what you want to do and have a plan for doing it. Take the time to do good research by researching the industry, the marketplace, your potential target clients, your competitors. Do proper business research including a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Get a good handle on projected revenues and realistic operating costs as well as an understanding on how long it will take to breakeven and generate more revenues than expenses. Identify your personal strengths and skills and determine if there are any skills gaps. Determine how you will close any skill gaps or lack of expertise. Which gaps can be closed through skills training? Which gaps can be closed through recruiting the right people? Which gaps can be closed through coaching or mentoring? Determine what options and opportunities are available to you right now?
  • Learn from others’ mistakes – There is no shortage of people who have started or run a business. Speak to as many people as you can who have gone before you. Learn what you can about what works, what doesn’t, and what mistakes others have made. Don’t waste valuable time and money. Be open to hearing others` perspectives on what they would have done differently. Hindsight is always 20/20.
  • Business Plan ahead – Do the work and develop a business plan. While it may be a lot of work, it will be time well spent and most financial institutions will require one if you are searching for financing. The process of business planning is not only to prove to the bank that your business will be a success, it’s also a roadmap for you to follow to ensure success. Running your business finances can be like running your weekly, monthly or yearly personal budget – so if you haven’t developed good budgeting and financial management skills, it might be particularly challenging and doubly important to have a solid business plan.
  • Hire a mentor – Starting and running a business can be challenging or even lonely at times. In addition to the day to day operations of the business, you may be mentally or emotionally overwhelmed by being a business owner. Having a safe place to go to for advice, guidance, and accountability or simply as a sounding board can be just what you need to help you make the transition into entrepreurship easier and smoother. Good coaching and mentoring can really help you fast track your transition.

Common Startup Mistakes Must Avoid

Not prepping for it

Would you participate in a competition without some preparation and practice? No, you wouldn’t. Then why start a business this way? You need some prelaunch training to get you all warmed up because you have to have skills and knowledge to get started. Bear in mind that any startup requires focus, hard work, concentration and dedication from its entrepreneurs and you have to be ready to provide all that instead of just deciding to jump in.

Mixing a business with products

One of the biggest mistakes that most startups make is not thinking beyond the product. They have a product that can solve a problem and that’s all they concentrate on. However, if a startup wishes to survive in the long term, it needs to offer its customers something that will have them coming back for it again and again. Therefore, you need to think of potential revenue streams after the product has been purchased by customers. Think about longevity, where the business will be in three to five years, and this will help determine if there is a business or not.

Not hiring experts

Another major blunder that startups end up making is taking on everything. It is not possible for an entrepreneur to be good at everything. But, it is a fact that every aspect of the business needs to be dealt with expertly, especially in tricky areas such as legal and tax issues. If anything is structured in the wrong way, it will eventually come back to haunt you. Therefore, it is better to hire experts for dealing with major issues. It will cost, but it will definitely pay off in the long run.

Not checking data

Just because you believe you will succeed doesn’t mean that you actually win. You actually have to crunch some numbers, look at the market and do an analysis to know if you can and will. There needs to be proper and reliable data that validates your idea as something that can be profitable and viable. When you have collected some data, you can use it for creating milestones or key performance indicators to check exactly how your business is progressing.

Moving too quickly

One of the top reasons that startups fail is because they simply move too fast. A number of them are able to raise money and when they have the cash, it is spent on the wrong things. By the time they figure out that it is a mistake, it is often too late for them. What do they usually spend on? The funds usually go towards hiring people or marketing, but the fact is that neither of these are necessary for expansion. It is not a good idea to start spending unless you have a way to generate more.

Following the wrong idea

A lot of entrepreneurs who enter an unfamiliar market or first-time entrepreneurs often make the mistake of following the wrong idea. They are so focused on their idea that they don’t realize it is failing. In this competitive market, you cannot simply make decisions based on gut; you have to have evidence to back it up. You need to see exactly how a product fits in the market and do an experiment on what features or changes attract customers to it.

Entrepreneurial Leadership

Talk about relentless determination. Here is a guy who knew no quit. I mean he never gave up on catching that prize! We can talk about determination in another post; but, picture this. The Acme box arrives and Wile E. dives into the contents with excitement and renewed determination. He thinks that this is the one. This is the idea: the invention and the contraption that is going to finally work in aiding him to catch that bird.

After emptying the contents, he straps on a rocket, puts wheels on his feet, and lays down railroad tracks along the road the Road Runner is going to come down. He dons his helmet and waits eagerly. Without hesitation, the Road Runner appears in a flash and stops and gives his customary greeting – “Beep Beep.” And, off he goes. The coyote, ready to pounce, lights his rocket and bends into position and the fuse goes out. It is a dud! As he stands up in complete frustration and takes off his helmet, WHAM! He is hit by a train coming down his tracks. Who is the conductor? Beep Beep! That’s right, his nemesis, the Road Runner.

I always laugh to myself. But, it also reminds me what Will Rogers said, “It’s not enough to be on the right track. You’ll get run over if you just sit there.” Many entrepreneurs feel this reality when they are beginning their businesses. The question is often asked, “How do I get my business off the ground?” The truth is, after finally quitting your job, and launching out after your dream, it is not enough to just get started. If you can’t get that business humming and get the cash flowing, then you are just sitting there; and failure is your destiny.

How do you get it going? I have discovered that succeeding in business is like getting a plane in the air. The secret to getting a plane off the ground is overcoming the law of gravity by replacing it with the law of aerodynamics and lift. Therefore, if you want to improve cash flow in your business, then you have to improve productivity by getting the results that produce lift. Lift is that force that moves your idea from a hobby to a hustle.

There are four things that you must do to break the gravity that is holding your idea to the ground: Lean on the gas. Inspect the gauges. Focus on tracking straight. Transition by changing the trajectory.

Simply put, there must be massive action employed in the business that is immediately evaluated with corrective actions taken according to the critical feedback. You must also focus your attention and not veer to the left or right by the distractions of life. And finally, you must change your trajectory by aiming all this energy towards a goal that is massive enough to stretch you into a new dimension. Those are the key fundamentals to getting your business flying!

Small Businesses That Generate the Biggest Profits

Some industries are more Soloprenuer-friendly than others. Accountants and bookkeepers, real estate sellers, attorneys, landlords and certain healthcare practitioners are all able to operate a one-person shop quite well, perhaps with a single employee to provide administrative help.

Educational requirements and professional credentials pose a formidable barrier to entry for several of these high-yield business opportunities, most notably dentistry, chiropractic, law and accounting (CPA or certified financial analyst). In contrast, real estate sales requires only a license to do business, the right relationships and no real selling skills if you are in a hot market. If someone with a broker’s license brings you into the business, you can work under the umbrella of that person’s credentials.

I look askance at the stated prospects for attorneys, however. There have been many mergers between big law firms and as a result, many lay-offs. From a former employee of a very prestigious law firm who was let go six or seven years ago and eventually started her own boutique firm, those who venture out on their own can encounter stiff competition in certain legal specialties. Welcome to the new normal. Below are the small businesses that on average have the healthiest profit margins.

Business Net profit margin

Accounting / Bookkeeping 18.4%a

Landlords 17.9 %

Legal services 17.4 %

Management of companies 16.0 %

Real estate sales 14.9 %

Dentist’s office 14.8 %

Health practitioners (chiropractors, etc) 13.0 %

Medical & diagnostic laboratories 12.1 %

Automotive equipment rental or leasing 12.0 %

Graphic and industrial design 11.4%

Warehousing & storage 11.0 %

Management, scientific, or technical consulting 10.3 %

Trends in International Marketing

  • Social media
    One of the most effective tools for today’s professional marketers can be summed up in two words: social media. No longer just a tool for sharing pictures of family and cute pet videos, social networking sites like Facebook, Twitter, Instagram and more are now an undeniably common way to market and advertise your products and services worldwide. The power of social media as a marketing tool is evidenced by the major league companies that now utilize it with impressive results: companies like Nike, Starbucks, Pampers, NASA, Denny’s and many more can attest to the fact that social media is still a remarkably effective avenue for marketing products and services around the globe.
  • Video advertising
    Live video streaming is a feature that has become increasingly popular among social networks. Using live video streaming for international marketing and advertising efforts is particularly effective for its ability to give consumers and potential customers the opportunity to experience a “real-time” event no matter where they are on the planet. Several companies have found live streaming to be a particularly useful way to conduct question and answer sessions with viewers. This kind of active participation creates a unique connectedness between the business and its customers, greatly enhancing loyalty to the brand on the part of the participants and allowing the viewers to provide live testimonials about the product or service.
  • AI (Artificial Intelligence)
    International companies are currently exploring the power of AI to more effectively track and analyze consumer shopping behaviors in countries around the world. This type of information was, until just recently, an extremely time-consuming and challenging set of statistics that was typically only reserved for the largest, most profitable companies which had the manpower required to collect and analyze the results. But thanks to AI, this type of information will soon be within the grasp of marketers working for virtually any size organization.
  • Cross-sector marketing
    Put very simply, cross-sector marketing refers to the practice of utilizing the popularity of other brands to increase the reputation and success of your own. The fast-food industry provides a good example of cross-sector marketing at its most basic level. Studies have shown that fast-food restaurants that are clustered together within a short distance of one another report markedly higher sales than those in more isolated locations. This may sound counterintuitive, but the fact is that several different fast-food restaurants located within the same few blocks provide the consumer with a great variety of choices and increase the likelihood that shoppers will stop to eat. Professional marketers project that cross-sector international marketing will become more commonplace in this coming year, including an increase in strategic partnerships to gain a greater level of success for all those involved. Marketing is, without a doubt, not what it used to be. The fact is that our digital age provides marketing professionals with more opportunities than ever before. Although all these trends are important to keep in mind, remember that the most important aspect of any international marketing campaign is something much more basic: you must be able to effectively communicate with consumers and customers in other countries. And that will mean employing the services of an experienced, professional translator. The first step in your international marketing efforts can take place today by contacting a reputable translation company and finding the translator that best suits your company’s needs.

Business Analytics Training

The Business Analytics training is a guidance method for each and every individual who wants to show their skills in the industry of trade and commerce. It is going to support them for their ever need. They can operate their work smoothly. But there are a number of things which are there to be synchronized in an account to make that happen.

Every company has their own teaching method. They try to make their students capable by providing various guidelines. Each and every company offers something extraordinary to their students. Selecting the essential materials and much more will be precisely significant when making an allowance for how to run the industry properly.

The way how the provisions are actually ordered will be quite significant. But maximum times ordering by greater quantities will provide the companies as well as the opportunities to just save cost on the provisions. But it is just going to be possible if a company has the place to store an individual which will not be utilized right away through. It is actually something which has to be considered.

If you are opting for the course to add your career, or just you have an intense concentration in Business Analytics training and need to relish the long term profession doing what actually you love, you will then find that the corporate accreditation can offer you along with a myriad of advantages that you can like on a private level on a regular basis.

Not each and every individual love being stacked in front of a computer screen managing analysis. But numbers of people are out there, who actually enjoy this kind of seasoning from the certain company. In fact, one can easily prove and showcase their skill and expertise by getting this specific exercise. Utilizing this drill, you can easily increase your talent which will help you a lot to progress your career smoothly. Some of the companies are there who try to give a complete knowledge to their clients so that they can operate their corporate smoothly.

The advantages of this course

So many people join this particular seasoning just because they enjoy it thoroughly. But apart from interest one of the main advantages of this particular accreditation is that anyone can easily prove their capability to operate the job. When positioning for a place that needs this sort of exercise, containing your authorization is a symbol that you are extremely talented to meet the responsibilities which are needed. Along with that, you can increase the probabilities of being chosen.

One can find that the certification is acknowledged by the industry specialists that are a key benefit, particularly when smearing for the location or an elevation only within your corporation. You can find that it is easily familiar, not only by establishment directors and owners but also by the colleagues and peers.

Accomplishments of the training

There is another advantage of holding this particular authorization is the progression in occupation potential that it may offer. When you begin in any kind of job, you start at the lowest, and you operate your way to top. You may just be considered for progression if you have an applicable industry information, teaching and experience.

Tips to Gain Focus On Business

  1. Set out clear goals to help you align your focus. Think about what you would want to accomplish and layout a strategy on how to achieve them. Goals work as a road-map towards your larger aspirations. They should be realistic and timely. Goal setting will motivate you to put in the work you need to accomplish them.
  2. Prioritize, have a clear picture of what needs your immediate attention, what you can put off for later what you can delegate or not do at all. This calls for planning ahead putting into consideration the deadlines and timings for particular tasks. This will help you to re-organize your mind and put you into focus.
  3. Maintain a simple organized work space. Remove unnecessary junk and clutter form your working space. Have things in front of you that you need. You should get rid of photos, journals, magazines and receipts on your desk and shelves to create a less distracted work-space.
  4. Turn off technology and focus on the task at hand. Flashing screens, new email notifications, vibrating cellphones is a constant source of distractions. Schedule the times outside of work when you will use your phone or tablet, and then put the technology away outside those times.
  5. Focus on doing one thing at a time as opposed to multi-tasking. This way you will avoid taxing your brain by having it shift form one task to another which will lead to exhaustion and inefficiency. You are going to have to stop multitasking if you want to beat the competition and by increasing your focus you will get more done in less time. So avoid tackling two tasks simultaneously, it is better to get completely done with task A before switching to task B.
  6. Block your time. This simply means dedicating a certain number of hours to a certain task blocking off your time from other tasks that demand your attention. This will help you focus on the task you are working on.
  7. Automate some operational activities such as financial management. This reduces the amount of time needed to manage finances. The free-up time will in turn be re-directed to the core business be it customer service or sales.

Financial Advisor Help A Business

Businesses owners are who are found not to be consulting with a professional financial advisor also didn’t have any plan on how to address future change that was inevitable which affects the business with large impact. These professionals have the required and necessary experience, expertise, and qualification to allow owners to make the most of their capital investments. They can evaluate the viability of a business model to enable them to draw outlines of strategies while creating timelines for the path towards profitability.

Here are some fundamental benefits that can easily express how a financial advisor can help a business.

  • Competent Help

To make life easier, a financial advisor understands which questions ask to find out the correct answers for business owners. Effectively enhancing the efficiency while adding to profitability, these experts focus on the action to provide results. The modern entrepreneur has many roles to play in a business and stretch themselves thin at times. While tending to IT needs and then rushing to packaging and delivery section to follow up on orders, many important financial matters may become burdensome. Cash flow monitoring and aspects of monetary essence can be easily mishandled leading to severe obscurities. Mismanaging money is the most commonly recurring problem for many businesses. Hiring a financial advisor has to be one of the best things that can happen to a business.

  • Cost Savings

While performing specific functions for a business, the owner will not be able to control the path the business is on. small business owners save time and money by hiring a professional that carry out complex tasks which ultimately lead the owner to make decisions that are based on facts, figures, and numbers and also from a position of strength. Accounting processes, for example, to monitor expenses can be established by a financial advisor that in turn leads to ledger-bliss. A capable advisor can help business owners to avoid mistakes that may cost them dearly and save them a lot of angst.

  • Planning Ahead

In dealing with matters of the finances, a cool perspective is greatly needed. Being overwhelmed or confused can lead to inadequate decision-making processes that won’t be able to hold in the future. Professional advisors can provide clarity, vision, and direction that is the foundation of stability and growth. By giving facts and assessing the schedule, they can navigate through financial issues. Planning and projecting outcomes of the future in a business can be tricky and many business owners seldom consider market changes, technology, or other aspects that can prove to be crucial in a business.

Ways To Raise Money For A Business

Raising Money

When you venture into the market seeking ways to raise money, you get hundreds of people advising you on the different ways to raise and manage money. However, none of them may ever sign a check for you. There are rough and smooth times in the market. We have listed some simple ways of raising capital.

Seed Capital

The amount of money you bring in when venturing into any kind of business initiative is the seed capital. You can also take the advantage of angel investors today. There are people who are ready to fund start-up industries all over the world. However, you need to have a strong project to attract angel investors. You have to make sure that you keep up the trust reposed on you by these angel investors.

Bank Loans

Availing bank loans is the second most popular way of raising money other than bringing in one’s share of capital. In this liberalized age, you can find many banks formulating loan options for new start-up entrepreneurs to acquire machinery, working capital, etc. Some banks have plans where you do not have to provide any kind of collateral security. Searching for such options should be your priority.

Raise Funds

You can raise funds from people you know such as friends and relatives. You can also raise funds from the market. Having a viable project on hand is a pre-requisite for raising funds from the market. People will have to believe in your ability to generate profits. No one likes to invest in a loss making company. The first steps are difficult. However, if you overcome the initial hardships and prove your ability to succeed, you will never face any shortage of funds from the market.

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