Home Based Business – 4 Proactive Measures For Business Development

Home based business owners must develop leadership skills to achieve the desired outcome. Methodical business methods must be replaced with the innovative solutions to bring about output oriented changes.

Effective Solutions for Problems:

Creativity can be used with sales techniques and discount offers for products to enrich the customer interest. Non essential spending must be cut down to have a positive effect on the bottom line.

Quality measures can help determine the appropriateness of a product with respect to client requirements. Primary business operations can be sustained for growth with a critical blend of management and leadership capabilities.

Directed Strategies for Growth:

The following measures can be put to practice to move towards more business development:

·         There should be constant monitoring and measurement of the factors which promote growth to augment movement towards goals and objectives of a home based business.

·         Certain critical success factors of a business have to be identified and communicated with coworkers and partners. This can help bring about strong focus with utilization of resources and available workforce.

·         The identified critical factors for success can act as a mutual point of reference to perform and help achieve targets within the stipulated time frame.

·         The desired customer satisfaction rate, product range and market share values can be increased in tune with the quality of relationship shared with suppliers.

·         Strategic goals and objectives of a company must be examined in relation to the current status of the functional areas.

·         Essential elements of a business strategy are devised from internal business forces, competency plan and entrepreneurial environment conditions.

·         Characteristics adopted to maintain business sustainability against challenges, barriers and external influences must be analyzed in detail.

·         The form of production undertaken, quality of marketing campaigns and volume proposition rendered must be considered.

Management Rationale:

Financial accounting must be paid adequate attention to achieve balanced books. Home based business owners must be aware of critical numbers that indicate operative efficiency. Successful entrepreneurs adopt the management rule “first things first”. Immediate efforts should be dedicated to completion of tasks laid out at the present moment.

An ability to face pragmatic situations and act on them requires non idealistic preference. Necessary changes must be incorporated in the functional business model to bring about prosperity.

Essential Entrepreneurial Actions:

Guidance in functional areas outside expertise can be obtained form third party sources. Essential business operations must be carried out in difficult conditions to work at endurance.

Constant evaluation must be carried out with the status of component factors to move towards desired goals. Problems should be identified and a multi-dimensional approach for a solution must be devised.

Residual Income Business Opportunity – Product Development

Launching your product with positive impact and giving your residual income business the best chance of successfully making money online relies upon you having spent enough time researching your target market properly.

It is a mistake that internet marketers and any other online residual income business owners make, to fling themselves headlong into creating a website, taking the time and trouble to set up squeeze pages (lead capture pages) and sales pages without first establishing that the products they intend to sell have enough demand on the internet.

There are two common mistakes made.

First of all, not finding out if the size of the market online is big enough to sustain your sales targets. And by that I mean checking out keyword research tools to find out exactly how many active daily searches are being made for the products in question.

And second of all, (which is a bigger problem) advertising products on the internet that are in demand but the competition is so great that it is virtually impossible for the new start business to get their wares in front of their potential customers.

That is why the savvy online marketer really gets to grips with niche marketing. Understanding that a product can satisfy lots of niche markets and as a consequence each niche market should be tackled differently to the rest.

Let me give you an example of how this may work.

Let’s say you were trying to sell rechargeable batteries. If you simply advertised your rechargeable batteries on the net you would be competing with a massive number of sellers out there, in fact probably too many to make a real impact.

However, if you were to niche your products into tailoring them for specific markets for example Samsung digital cameras, Kodak hand held video recorders, Petzl head torches, Gillette nose hair trimmers, you get the idea!

If you chose say 50 niche markets you would be reducing your competition massively, satisfying a much more targeted need and therefore be much more relevant to your target audience as well as finding it much easier to get your offer in front of them.

Therefore, niche marketing is fundamentally important if you want to be successful marketing and selling your products online.The question is how do you achieve that in the best way that will keep you ahead of your competition?

Online And Offline Business Development And Tips

By Business Development we mean the methods or techniques used to develop an economic or business enterprise. The first step in business development is to assess a business. Then its full potential is realized using various tools such as sales, marketing, customer service and information management. A meticulously planned strategy for expanding the business in a desirable direction is necessary every now and then. To achieve sustained growth it is necessary to be prepared to meet any unforeseen circumstances with resourcefulness. In case of large well-established firms, business development may often refer to building and running strategic associations and coalitions with other, intermediary companies.

Previously all businesses relied solely upon offline media and business development strategies to grow the business. However the internet has begun to make a large impact on the global markets. In 2007, online marketing is projected to constitute nearly 12-15% of global budgets. The internet has become a major source of revenue, information, beta testing and R&D for many of the companies. Many of the smaller firms are preparing to make use of the social media boom and grab a share of this up-and-coming market. The best way to go ahead for medium sized companies eager to increase their size rapidly while keeping the companies essentials would be to take note of these points:

The core team must work as a single unit and also be excited about forthcoming ventures. Individual skills should be developed through scrutiny and testing people. As a source to companies who seek a global approach to the internet, you must offer the best possible vertically integrated experience.

Offline Media

In offline media, marketing firms are in the forefront. There is some responsible person, who administers the overall employment of all marketing policies and tactics. The reason for this is that there are enormous sums of marketing millions to be utilized and optimized. But now the marketing dollars are moving from conventional media to a balanced synergy of online and offline strategies. Hence a lot of alterations can be estimated.

Online Media

There is an immense business prospect in understanding the big picture of the internet and how the online marketing dollars can have a serious impact. The lack of good quality, highly skilled executives in the upper levels of management is a major hindrance to India’s progress in this direction. Also transparency is a very important part of online business. Otherwise customers may not repose trust in the companies. Be ready to take smart steps whenever required, because that is the way to go in online marketing. Take your opportunity when it comes.

The right way to go would be to diversify the business using both online and offline undertakings. In comparison, perhaps the best feature of online business is the unlimited marketing scalability. Rather than depending just on local customers, it is possible to have customers from any part of the globe on the internet. The only major drawback is that direct face-to-face transactions are not possible. Hence many people still prefer to buy commodities from their local shopkeepers and businessmen. The local market and customers shouldn’t be forgotten. It is more likely that they would constitute a bigger portion of your consumer base. Each of them therefore has its own importance and the best road for any businessman would be to take the middle path of integration.

Eight Steps To The Next Level – The Business Plan, “The Engine of Small Business Development”

This is the second of a series of articles describing how small business owners and managers can drive their business growth and profitable development through the creation and implementation of a business plan.

I know the prevailing view among many small business people is that “planning” is for the larger, more substantial business and “they are too busy running their business to have time for planning”. Indeed, many small business owners are “too busy” running the business, but they ignore, at their own peril and survival, that “failing to plan is planning to fail.”

I am convinced that the small business owner will benefit from engaging in this business planning process because of the nature of carefully examining and thinking through the way their business competes and operates; – and how that will align with their determination of “what business they want to be in”.

This business planning process yields a stronger, more profitable business which provides real value to its customers and the marketplace.

The business planning process described in this article is the most logical, pragmatic and practical examination possible of the small business. This process is far from arcane or mysterious, but totally focuses on the reality of the small business environments (the business, the economy, competition, customers’ needs, wants and desires) as well as the determination and allocation of the firm’s resources).

Business Planning Process – Eight Major steps

For the past thirty years, I have successfully used the following business and strategic marketing planning process. The following process consists of eight major steps which are sequential and continuous. I will describe the nature and function of each of these steps.

This process applies to all types of organizations; regardless of size, products, services, or industry…. I have even used this process with a national religious organization.

1. DEVELOP MISSION AND POSITIONING STATEMENT
2. SITUATION AUDIT
a. Internal
b. External
3. WOTSUP ANALYSIS
4. MAKING ASSUMPTIONS
5. DEVELOPING OBJECTIVES
6. STRATEGY DEVELOPMENT
7. SPECIFY TACTICS AND ACTIONS
8. PREPARE FORECASTS/BUDGETS/FINANCIALS

1. MISSION AND POSITIONING STATEMENT

With respect to the definition of your businesses’ purpose and mission, there is only one focus, one starting point; it is the customer or user of your products/services. The user defines the mission of any function or business. The question “what is our mission or purpose” “what business do we want to be in?”, can therefore be answered by only looking at your business from the outside, from the point of view of the customer or potential customer. What the user or customer sees, thinks, or believes at any given time must be accepted by your business management as an objective fact to be taken seriously.

By definition, the customer is purchasing the satisfaction of a need or want.

For example, here is a well-known and real example of a business mission which defined the way in which that company conducted its activities.

A drill bit manufacturer defined its mission as determining “what size holes customers need” their focus was directly on customer needs and not on their product specifications. They were customer-focused and very successful.

Once the mission statement has been completed develop the positioning statement for competitive advantage and prepare the USP – your unique selling proposition. “Why the business is able to provide more effective solutions and greater value than the competitors.”

2. THE SITUATION AUDIT- Internal and External

The situation audit is a description and analysis of past, present and future data (information) which provides the basis for pursuing the business planning process. It is an organized method for:

  • collecting pertinent information
  • interpreting its effect on the business’s environments (market conditions)
  • analyzing significant trends
  • projecting all pertinent factors, which could influence company activities.

3. WOTSUP ANALYSIS

The acronym WOTSUP stands for Weaknesses, Opportunities, Threats and Strengths Underlying Planning. This step flows naturally from the fact base (Situation Audit). The Weaknesses and Strengths constitute an internal analysis, i.e. “what are we at good and bad at?”-

Opportunities and Threats, on the other hand, form an external analysis. From this analysis, objectives can be formulated with specific action plans designed to overcome weaknesses and threats by exploiting the business strengths and opportunities.

4. MAKING ASSUMPTIONS:

Assumptions make planning possible. Without the use of assumptions, planning would be almost impossible. Since planning deals with the “futurity of current decision-making” and events in the future are almost impossible to predict with unfailing accuracy; – assumptions make planning possible.

5. DEVELOPING OBJECTIVES

Overall objectives are the real crux of the Business and Marketing Planning Process. They deserve every last ounce of time and effort – often frustrating. The objectives form the umbrella under which the balance of the whole planning structure is built. Because of the key role they play they must be thought through and be expressed in the most specific and concrete fashion. In simplest terms an objective is… “what do you want to accomplish?” Objectives are prepared to overcome weaknesses and threats developed in the WOTSUP Analysis and to exploit the opportunities and strengths.

6. STRATEGY DEVELOPMENT:

Once the objectives have been developed, the preparation of strategies is the next step in the process. Strategies, must explain, in a broad sense, how the objectives will be achieved.

7. SPECIFY ACTION PROGRAMS:

After the objectives and strategies have been developed, describe the work to be performed. The actions must be very specific; what work is to be done, by whom, how and when.

8. FORECASTS/BUDGETS/FINANCIALS PREPARED:

The action programs when completed form the basis for budget preparation. The cost of each action and the revenues derived from the detailed actions generate the operating budget and cash flows for the Business Plan.

Many organizations confuse planning with budgeting. One important purpose of the budget is to ensure the business has adequate financial resources to function. Budgeting is about not failing, planning is about what is possible.