Archive for the ‘Business’ Category

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Enterprising Lady

Monday, October 17th, 2011

Young Jamila Jennifer Abubakar was born and raised in this village. Her supportive parents—Ognade, from the same village and Annette, who is English—said that from an early age, Jamila had a distinctive talent for growing flowers and plants. Her knowledge widened the more she read and from the age of eight she had her own patch of garden at the family home. Jamila left school to begin her own business selling her flowers to locals and nearby towns. Her parents acquired an economical van for her so that she was able to deliver her goods to more distant places and she soon gained a reputation for herself. She donates ten per cent of her salary to a village charity which serves poorer people.

Annette Pangna-Ng, Jamila’s 44 year old mother says, of her daughter, “Since she could read she would consume gardening books by the cartload. She learned about planting in season and she learned about the best soil and compost before she was even ten years old. She had her own vegetable garden too, but it was really flowers and plants that held her interest. Jamila now has her own business and she employs a local girl to help her.”

Jamila’s father, Ogande—who was born in the village—said “I am most proud of my daughter. She has an enterprising nature and she has already employed a young girl, who helps to bring money to her poor family. She is an example to all young people that they can achieve anything they put their minds to.”

Don’t Try to Beat Them – Joint Venture With Them

Thursday, November 12th, 2009





The old business strategy, “If you can’t beat ‘em, join ‘em,” can be so true for a joint venture. Business owners want to succeed in keeping their business sustainable and growing. And usually the biggest obstacle for a business is competition. But do you view your competition as that which must be conquered, or have you really taken a look at your competition and analyzed how you can work to increase profits together?

The psychology of competition has always been that of beating the other companies. There must be a clear winner and a loser. However, this does not have to be the case in business. It is quite possible that you and your competition can put differences aside and work towards mutually beneficial goals. But in order to make that work, you need to remove the face of “the other guy” and become an informed and strategic-thinking entrepreneur.

Analyze the Competition

Before you can figure out how to work together, you need to know the similarities and differences between you and your competition. First, take a good, long look at your competition. Gather and write down information about their business process. Where do their customers come from? How is their product packaged? Where do you see their advertisements?

Learn everything you can about how your competition works. Become a “secret shopper” and make a purchase. You can hire someone or get an associate to do this work if your competition knows whom you are. First-hand knowledge of business practices can be some of the best data. How do they treat customers? How fast was their service? What is their d?cor if they operate in a retail shop or office? Casually ask other customers about their experiences with your competition.

Formulate a Strategy

Once you have gathered as much information as you can about your competition, analyze their strengths and weaknesses. Is their packaging inferior? Do they provide much better customer service than you? Find the points where your competition could help your business, as well as the strengths you possess that can help them.

After you have pinpointed potential areas in which you can combine efforts, formulate a point-by-point presentation that you can use to convince your competition that by working together you can both enjoy increased revenues.

Approach the Competition

This could be the hardest part, especially if you have had an adverse relationship with your competition in the past. But remember the past is history, and you want to look toward the future with high expectations of success. Agree to bury the proverbial hatchet.

Take them out to lunch or invite them over for a formal meeting. Outline for them your strategic plan that shows specifically how you can combine strengths to generate higher revenues. Can you create more attractive packaging? Can you use your cost-cutting method of production with their stellar customer service? Remember to focus on showing them how they can benefit from your strengths.

If your competition has an open mind, then a joint venture can easily be agreed upon if the benefits are there. Remember to maintain a professional and business-like attitude and your competition can see that you’ll be easy to work with. If your competition agrees with your plan, then congratulations! Move forward to setting your plan in action and enjoy the benefits of your joint effort.

Copyright (c) 2009 Christian Fea

Men Versus Women in Home Business Ventures

Sunday, September 27th, 2009





So many times when people think about home business opportunities, they conjure up thoughts of women working from home in their pajamas. While this is not a far-fetched image, it should be made perfectly clear that men are making their mark in the home business world as well. In fact, it is felt across the board that men are even more diligent at running a home business than their female counterparts. Why so? Let’s compare how men and women handle home businesses differently.

Risk Takers at Work

Starting and running a home business requires a certain amount of risk. You need to invest money to make money. Men are more apt to take these risks than most women. A few of the reasons surrounding this fact are that some husbands are leery of letting their wives put too much money into a venture that might not hit the ground running. Another reason is that men are more comfortable with footing some extra capital for their own business to make it work. They don’t let drawbacks and failures guide their heart, but use these instances to drive them forward with different avenues of making things work. Women tend to feel more reserved when they run into a failure.

Choosing Power Rather Than Security

Men tend to make decisions about their home businesses based on the need for power and control. This desire to make a business successful has no end. A man constantly sees ways to improve and make his business better. Women, on the other hand, tend to reach a comfort level in their home businesses. When a woman is generating her expected income, she is content and wants to keep the status quo. This is not true of all female business owners, but it is true for most.

One Uses Impulse and Another Appreciates Advice

Another striking difference between home businesses run by men and women are their choices when it comes to taking advice or making impulsive decisions. Women tend to be more careful about their choices and welcome the advice of their peers before stepping into the unknown. Men are more eager to make decisions based on impulse and instinct when it comes to business decisions. This comparison seems to boil down to the fact that women like security and have a nurturing side. Men have been the decision-makers down through the centuries, and it seems to be their inbred nature to make spot decisions with ease.

The statements made above are comparisons made based on most cases. You will undoubtedly find a woman who thrives in taking risks on her home business, while you will also see a man who is content to watch his business flourish in the same way it has for years. As with most things in life, men are bigger risk takers, and women tend to focus on family and security. It is not unnatural for men and women to reverse these roles, and each should be commended for their home business success, because success is measured differently for different people.

7 Tips for a Successful Business Venture

Saturday, September 5th, 2009





It is pretty easy to set up a new business but the actual challenge lies in surviving the cutthroat competition and to stimulate growth over the years. One of the prime reasons why most of the businesses face a very tough time is the lack of proper marketing plan and minimal focus on branding. After all, only when you are able to market your products properly to your target segment will you have a chance to generate revenue to take your business forward.

While a business success is largely dependent on concerted effort of various major functions, during the early years it is most important to focus on branding. Your branding effort should be strong enough not just to introduce your company name to your target segments but also create an impact on them. For a new business the marketing and branding strategy should ideally be able to establish its presence, create name recognition, build credibility among the target market segment and contribute to its status and reputation. Here are seven tips that would actually help you to achieve success with your new business.

Write Down Your Business Plan – This should be the first step. Probably the most common and biggest mistake that most entrepreneurs do is not creating a proper documentation of their business plan. We all know what we plan to do; yet it is important to write it down in a formal business plan. It is always easier to follow a written plan. Your business plan should contain your business description. Objectives, marketing strategy and budget, Business overview, facilities and infrastructure, description of products and service, Industry overview, Regulatory Issues, Implementation plan and financial plan. Focus on your Branding – Do everything you can to promote your brand. Get a professionally designed logo that would justifiably represent your business to the people. Get your business cards, letterheads, brochure and marketing collaterals designed and printed by professional design and printing house. Ensure that your logo design is properly placed in all these. Don’t fall pray to those cheap DIY logo and branding solutions, they might save you a few $$ to start with but it would actually take a toll on your brand image. Create a Web Presence – It is most crucial for every business, irrespective of its size, to have a website of its own. Most consumers do their initial research on the web before making a buying decision. It is important that they are able to find you at that stage. Also a website adds value to your brand and gives you an added medium to communicate with your customers. Get your website designed and developed by professional web developers. Your website should ideally be an extension to your brand and provide complimentary information to that of your brochures and print materials. Try to update your website often with useful information, this gives your visitors a reason to check back your website regularly. Create an Advertising Strategy – Most business organizations invest in advertisements but often a business does not get the maximum ROI on its advertising spend because the advertising strategy is not effective or at times, there is even no fixed strategy. Make sure your advertisement is targeted specifically at your market; for example, if you are a local store, it doesn’t make sense for you to advertise on a global media, rather the local newspaper is a much better option for you. Be consistent in your advertising effort. The more your customers see your company ad, the deeper impact it creates on them. It has been observed that a 5-minute ad film served 10 times creates a greater impact on the consumer than a 50-minute ad film. For your ad composition, it is always advisable to consult a PR agency. If you are trying it yourself, ensure that your advertisement leaves your customers with a good reason to contact you and your brand and USP is properly presented. Publicity is the Key – Yes, do whatever you can to put your business on the forefront. There are various things that you can do for publicity. Send out a press release announcing a Grand opening for your new business, with a short description of your products and services. Keep your press release short, error free and interesting. Write letters to the editors of local newspapers and magazines about your industry and product. Send out further press releases to communicate other business happenings. For example, if you win a business award, get membership to a professional organization, offer services to any charity or even if you are hiring an industry recognized for a key position in your business. Try writing articles and reviews for local publications and industry magazines. This would help to build your credibility as an expert and would add value to your business brand as well. The amount of trust people place on such experts is much more than what you can get by buying the best ad slots on top magazines. Business Networking – Word of mouth is undoubtedly the best form of advertisement and the more you expand your business network, the more you can have such publicity. Try joining professional organizations in your industry; be a member of Chamber of Commerce; attend networking meets and special events that give you a chance to interact with more people. Volunteer to join a NGO, get associated with a charity organization, or school board. You will not only be paying back your community but also be putting yourself and your business in front of the public. Measure, Analyze and Decide – These should actually be continuous processes in your business life cycle. You have laid out a business plan but this doesn’t mean you will be blindly following it. Measure the output that you are getting from all the efforts that you put into your business. See if it is more or less than what you projected. Analyze the reasons for any variance, whether positive or negative, and then use the result of this analysis to make educated decisions for the future. You need to keep in mind that you should not be too quick to judge anything. To get a decent understanding of your business processes, you should give them sufficient time to run, which will allow you to have enough data to perform a fruitful analysis.

Business Plan For Joint Ventures

Friday, August 14th, 2009





Every business should be started with a plan. A plan provides a guideline for the business people involved to proceed in the right direction, and these guidelines form the foundation of the plan. If the business is small enough, all those who are involved directly in the business may come up with the plan. However, a large scale business may require professional help such as from a lawyer and an accountant to guide them through the steps in forming the plan and including vital information about the business for the future.

A joint venture business is no different in case of the requirement of a business plan. There are five main pointers to be included in this plan that are:

1. Executive summary – The executive summary is a short note on your business, its goals and a short description of your plans to reach that goal. It should form the introduction to your business plan so that anyone who reads it will only get a sneak peak into your business. Although it forms the beginning of your plan, you should form this at the end of everything so that you know exactly what to put into it.

2. Company description – A company description should not be too long. It should include what the joint venture is about and the number of partners involved. The share of each of these partners and the details of the product should be briefly mentioned. This description should not exceed more than two to three pages.

3. Market strategies – Before starting a business is it taken for granted that the investors are taking into account the current market situation of the particular product or service that is being sold. In order to form concrete market strategies to gain profit and beat competitors you must analyze the market and research on the existing businesses in the same niche.

4. Competitive analysis – Every market will have competitors posing a threat to your profit margin. Unless you are running a monopoly (which is hardly possible in case of a joint venture) you should analyze the market to understand which strategy to adopt in order to outrun your competitors. For this you also have to test the demand of the product or service you are selling. Depending on the existence of this demand you should tap into the customer base that is relatively untouched by others in the same line of production.

5. Financial projections – In order to be eligible for granting of loans and financial aid from banks and other institutions you need to have a detailed summary of the finances of your business. This should include any investment, capital or otherwise, made by you and your JV partner. You should also have a list of all assets, financial or otherwise, related to the business. This information should be projected professionally. Hire a lawyer and/or an accountant to get this done.

You may also include into your business plan any special production plan or managerial procedures that any joint venture (JV) may be adopting during the course of business. Seek help form the Small Business Administration for more help as needed at SBA.gov.

Does Your Business Venture Have Strategic Importance?

Thursday, June 4th, 2009





Starting a business venture requires tremendous planning. One of the foremost concerns of entrepreneurs embarking on a new business should be whether the business venture has strategic importance or not. The importance of strategic planning is reflected in the valuation a company may get due to the same. Needless to say, a new venture based on strategic value in an industry will be more attractive as compared to one with no or low strategic value.

An example of strategic planning that paid off is Baazi dot com, which was modeled on eBay. The strategy behind such a move was perhaps to increase the valuation of the company from the point of view of acquisition. When eBay wanted to enter the Indian market, acquiring Baazi made sense because it saved them the time and effort required for creating a market reach and customer base. In the process the latter made a huge sum. So the valuation of Baazi was based more on what it could offer another company looking to acquire rather than on its profits.

Businesses that command a premium price generally have a certain value-added potential. This could be in terms of distribution, customer base, geographic location, proprietary technology or intellectual or patented property of importance. For example, the time at which Vodafone acquired Hutch new licenses were not being given in the telecom sector by the government. Vodafone by taking over Hutch not only took care of that aspect, it also minimized market risks which it otherwise would have had to face as a new entrant in the industry.

Similarly, Subhiksha, one of India’s fastest growing retail outlets commands a healthy valuation today because of its market reach and customer base. Though the cost of operations might be very high in the beginning, the strategic policy to reach out to as many people as possible helps the business.

Business Angels vs Venture Capitalists

Saturday, May 23rd, 2009





Have you these amazing ideas which you’re sure you can put into practise and make a living out of your ideas. If so you’re more than likely looking into financial help to put these ideas into practise. You may think bank loans, credit cards and loans off family and friends are the only options but Business Angels and Venture Capitalists are also a good option to consider.

Business Angels what are they you may ask, they often work as individuals who themselves are entrepreneurs and have made their dream come true in whatever business sector they chose. They have now have the experience and financial backing to help other entrepreneurs to start their own business just like themselves years ago.

Venture Capitalists are very similar to Business Angels they are often from an entrepreneur background have made a successful business and now would like to give back to other entrepreneurs and help them with finance for their new start-up business.

So you’re asking what is the difference between them both, they are:

Business Angels – Give you the financial help you need when you need it, and invest their own money in your business. If it works within an angel network the angels will pool together with their investment as well as sharing research they each do. Angels understand the needs of a new business as they have been there themselves and therefore they not only offer financial help but they can offer good advice when no one else will.

Venture Capitalists – Give you the financial help you require when you need it but uses pooled money them and others have in a professionally managed fund. Venture Capitalists like to take an active role in the business they are investing usually being a director or on the management board of the business.

So if you’re looking for some financial help for your new start-up business or even your struggling business you don’t just have the options of:

o Family

o Friends

o Banks

o Loans

o Credit Cards

You have the option of using a Business Angel or a Venture Capitalist. Which ever one you decide to use the only way you’re going to show your serious in wanting their help is to have a well planned and thorough business plan.

A business plan will not only be used to show your investor what you planned ideas are and your predicted returns in the next few years will be it will also be used for you to run your business well. It will show others what your initial goals were and if you succeeded in these as well as any risks you planned for and if any of these actually occurred and if they did, did you cope ok with rectifying the risk.

It shouldn’t just be placed in a drawer and forgotten about it should be regularly updated. Your business will continue to change and usually out of your control and you should reflect on these changes within your business plan. You should have contingency plans to deal with any external influences that would affect your business and the way in which you run it.

You should now be a little wiser of the facts of the difference between these and how they can help you.

The Basic Strategies of a Successful Online Business! 11 Keys to Success!

Thursday, March 19th, 2009





For all intents and purposes, there are basic principles as well as a fundamental approach that leads to a successful business. These principles can be incorporated into any business strategy and when done correctly can lead to a fruitful business. Once these are in place, a business can grow and thrive. But without these principles, a business may flounder and never reach its ultimate goals.

Common Threads Running Through Businesses that Succeed!

So what does it take to get on track and what must be done to achieve the kinds of results that make for a successful business? In my search to understand what’s behind the successful entrepreneur, I’ve discovered some common threads running through the businesses that succeed. One of the most important is a happy environment. Why? Because a happy environment is a productive environment. So although you may not need to incorporate all of these keys, putting most of them in place will ultimately create a business that leads to success.

To simply the basics of a successful business, the following 11 keys are found in most successful business ventures:

1) Start with a business plan and marketing strategy. Having all your ideas in place will provide you with a road map for success. Check on the plan regularly and update it as required. If you want to get to a certain place, you have to follow a particular path.

2) Develop a holistic marketing approach; holistic marketing means all parties involved in your business matter. Whether you work with outside people or work with an in-house team, everyone must be aligned and in agreement with your goals. If not, find new people.

3) Involve as many people on your staff in weekly meetings and include them in various planning strategies. We are sometimes blinded by our own way of thinking and others can be more objective. Allow others to help you identify areas of strength and areas needing improvement.

4) Be organized. No need to be fixated and rigid, but keeping procedures and systems in place helps keep a business operating smoothly. Disorganization makes it very difficult to succeed.

5) Involve your clients. You want your clients to be happy therefore gaining feedback about your services is crucial. If necessary, make changes if you get similar feedback from a number of clients

6) Stay involved in your community. By joining organizations you keep the word out about your business. Volunteer to speak at presentations or attend community events so people become familiar with you.

7) Be willing to delegate. As hard as it is to give over a task and as much as you think you’re the only one who can do it, you’ll be amazed at how much more efficient things become when you’re willing to let go. Allow others to contribute.

8) People are the driving force behind any business, which means it’s imperative that you keep employees and clients happy. Make sure you’re up-to-date on whether clients are pleased with your product or services and allow employees to tell you how they really feel.

9) Occasionally, allow things to happen. It can appear that things are changing in a direction that displeases or scares you but interestingly enough, change is usually good for a business and generally brings surprises that are very satisfying.

10) Set new goals every once in a while and keep reaching for higher ground. Visualize how you’d like your business to be and watch things transform before your eyes.

11) Never forget to show your appreciation and gratitude to those who help you on your way. Your clients are the ones who make your business a business, so every once in a while make sure to say thank you for their loyalty and their business.

Always remember that everything starts at the top. You show others exactly what type of business you run by your actions. Consequently, it’s important that your actions demonstrate precisely how you want to be known.

Copyright2005

Financing a Small Business Venture

Thursday, March 12th, 2009





Starting a business venture is a process that involves understanding yourself as a person and identifying your skills, your goals in life, the environment that you live in and the opportunities available. Opportunities range from the traditional businesses that have thrived over the years or business ventures that are just taking root. First, you have to have the determination to start on your own and deliver services that are up to the standards set in the industry.

You will need to develop a strategic plan that accurately presents your business as a viable entity, defines your expected future results, and one that you will be comfortable working with. Its important to note that, starting a small business venture requires that you have some money. There are various ways through which one can get this cash. You could inject your own savings into the business or you could borrow from the bank or other financial enterprises. Before you borrow from the banks, be sure that the business enterprise will pay off the installments plus any interests charged on the original principle amount.

If you keep up with the payments, it will be good for you since you will have convinced the banks that you will be a reliable borrower. Your credit rating will also go up, and the chance of your business surviving will be higher. If you do not have a lot of money, yet you have a bright business idea, you could get an unsecured loan from banks and other financial institutions. If you have enough capital to start up a business, you could still borrow while using your accumulated assets, such as buildings, stocks, vehicles and machinery to back up the loan.

If small business owners feel uncomfortable borrowing from banks, they could finance from their own savings. This has an advantage since, if they make profits, they do not pay back the money to the bank, and they end up keeping the interests that could have been charged to themselves. If a business owner decides to invite other investors to fund the business through equity financing, then the profits are shared equally among the contributors. This eventually reduces the amount of money taken home. The bottom line is that, if you do not have debt to pay up, you keep all the money you make to yourself.

Choosing an Accountant – A Make or Break Decision for Your Business Venture

Wednesday, February 25th, 2009





Make no mistake, in the unhappy event of things going horribly wrong, it’s you in the hot-seat, even if you think the accountant is to blame. So don’t settle for the phonebook lottery approach. This is a VERY important decision, take your time, and do the research.

This article is a checklist of some basic steps you can take to avoid the cowboys!

1/ Ask around! If you have friends/associates in business then ask them to recommend an accountant to you. Accountants can be invaluable if they’re good and disastrous if they’re bad. If you know someone who has been through a few financial cycles with their accountant and still speaks well of them, that’s a really good sign!

2/ In most countries, declaring you have qualifications that you don’t is illegal. So find out what qualification your accountant has. If you’re in doubt get them to confirm it in writing.

Meet your accountant face to face in their premises. It’s great if your accountant is happy to visit you at work or even at home. But when you’re trying to assess their professionalism you need to look them in the eye over a desk in their office. There are two very practical reasons for this. Firstly, you can at least be fairly sure you have their real business address. Secondly seeing your accountants workplace can help give an impression of the state of their business, and their attitude to their work. If the surroundings don’t look like your definition of a productive work environment, then perhaps they’re not, or perhaps you have different standards.

Ask your potential accountant how he/she will work, perhaps he will want to impose a set of practices upon you, perhaps this is just what you need. But on the other hand you need a system that you can understand. If he wants you to adopt a set of practices make sure you understand how they work.

Who will do the work? Find out if you are speaking to the person who will actually do the work on your behalf, if not, you need to speak to them.

Remember you are making the first tentative steps in what may well be a very long relationship. Think of your accountant as you would a major shareholder in your company, is this someone you’d be happy to discuss all the prickly details of your finances with?

Telephone your accountant “out of the blue”. He will most likely be busy, that’s understandable, but did he get back to you? It’s amazing how many fall at this first hurdle. If he can’t be bothered to call when you’re a new client imagine yourself one week from a government deadline! An accountant who doesn’t value your business is a liability! (excuse the pun).

This may seem a little over the top, but just remind yourself who is liable for the decisions your accountant makes! If your accountant can’t communicate the decisions he makes; operate in an organised and timely manner; and treat you with respect you shouldn’t be giving him your patronage and you certainly don’t want to accept liability for his work!

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