business 101 everything you need to know about business and startup basics
When. You think of business the culture, of the, goals of business what do you think of money. Profit. Power. Greed. Crushing. The competition look. Business. Can be those things sometimes, it has to be about those things but, the reality is that's, for most of us that want to earn a living without compromising. Our morals without hurting, others to get ahead business. Is about creating, good things for customers, it's about satisfying. Our employees, and our business partners, make. No mistake business, is about making money but, you can't make that money without customers. Employees and business, partners yeah, believe, it or not business is about making people, happy, making, people comfortable it's also about, learning and growing so, you can know how to make people happy and comfortable in the future but. Remember business, is not about achieving one of those things it's about doing all of them today, tomorrow, five. Years from now 20, years from now great. Business is not about overnight, success, great, business is about indefinite. Success. Contrary. To what movies, may have taught you business is not just about understanding, money be. Successful, in business you, need to understand, people, what. A customers, want how. Do they want it how, can I get more from my employees what. Kind of company, do people respect, you. Need to understand, infrastructure. Buildings. Roads, the internet the legal system you need to understand, resources. Supplies. Raw, materials, energy you. Need quality resources. At a good price. Business. Is art, and these, are our paints, and our canvas. Money. People. And infrastructure. That's, the tangible, stuff how about the intangible. Stuff to. Be successful, in business you also need to be aware of what happened yesterday what's. Happening right now and, how, I can use data information. And knowledge to, make better decisions, tomorrow. Finance. Accounting. Sales. And marketing, supply, chain management human. Resource management information, technology. Instead. Of thinking of these functions, as being about investing. Selling. Manufacturing. Hiring, and firing think. Of them as tools, to help you understand. And people. Think, of them as data centers think. Of them as groups of people with knowledge think. Of them as aids in making decisions that will make people both, happy, and comfortable. Wealth. Power. And greed those. May be cool words to motivate teenagers, that dream about becoming millionaires overnight. For. The rest of us those. That actually work, those, that want to create a better world those, that want to become active, members of our global society, get. Ready to learn about real, business, because, by understanding money, people. Information. Resources. And infrastructure, by, understanding how to make customers, happy you'll. Have the ability to start and successfully. Run your own company you'll. Be able to the most out of a nonprofit organization, you'll. Even be able to maximize government's, of value to the community and in, the process, you.
Will Become a valuable resource for any organization. Making. Money being. Profitable, that's the goal of every business but, it's not very easy no. Matter how big or small companies. Of every size often struggle, to make a profit I'm, serious how, can that be how. Can a company not, make a profit and still be, in business well, before we try and answer that question you, need to first understand, the basics, of profit, profit. Is the amount of money left over after a company pays all of its bills profit. Is calculated, using this, simple formula, revenue. Minus, cost equals, profit looks. Simple, but in fact it isn't, that simple. Formula, has so, many layers let's. First, concentrate, on, revenue. Revenue. Is the amount of money a company collects from its customers. Cost. Cost. Is the sum of all the expenses, for a company we. Need to subtract, all of the costs, from, the revenue it's, a very challenging balancing act every. Company in every industry is trying their best to. Tip that scale in the revenue direction, there. Are a couple of ways to do this, increasing. Sales can be tough as a, result, many, companies, try and control costs by, cutting employee, hours and using. Lower quality, materials, but, by doing that you, may a lien eight customers, down. Low your revenues do. You see the challenge, to. Grow quickly you, need to do things like buy more land open, facilities. Invest. In more inventory, and hire, and train lots, of new people that's. A lot of money there, cost to constantly, grow are very high and so even a few months of good sales may, not be enough to, make a growing company profitable. Startup. Companies often lose money for many years before they start making a profit soon. You'll start to see every story in the news as a signal, of profit, try, right now go. To a reputable, news site and look, at the headlines war. On terrorism does. That mean lower sales for Airlines does, it mean increase, sales for a military supplier, the, price of oil how. Does that impact the cost of trucking. How. Does it impact the revenue of an oil company. Child. Birth rates increase, a new, cancer, drug is approved a massive. Snowstorm is due hit your part of the country the, government passes, a new law in each. Case think. About which companies, will see changes, in revenues, and which, companies will face changes, in their costs, making. Money being. Profitable, that's, what businesses, try to do these. Are the big decisions, business, executives, face on a daily, basis. In, business every decision, big, and small has an impact, decisions. Can result in consequences, we anticipated. Or they can sometimes take us in directions we, never considered, impacting. Things we never imagined, as humans. Most, often we tend to first consider how, things will impact us individually. Next. We may begin to consider the impact, on those we know those. We care about and those we have to answer to in business. Those. Who will be impacted, by the decisions we make they're. Called stakeholders, and as, a business manager it's your job to consider, all known, as well, as all possible stakeholders. Customers. Employees. Owners. Investors. Upper, level managers, and other fellow employees, they're. All stakeholders. That, always, need to be considered. Considering. Stakeholders, isn't just about evaluating. Situations, before you make a business decision, it. May also be the key to influencing.
Your Employees, or your, boss that change, could result in a chain reaction of, positive, outcomes. They. May not only influence, how they feel about the recommended, change it may also get them excited, about how this relatively, small decision. Could, impact them and those around them, the. Key to seeing and evaluating, stakeholders, is to have a powerful, imagination. So. As you, make big decisions today, consider. The stakeholders, who. Are those that, are most likely to be impacted. Immediately, who, might be impacted, tomorrow, next. Month next. Year who, might be impacted, by your decision, 10 years from now, yeah. It might seem strange at first but, this is the first step in becoming a visionary. Business, leader. What. Makes you valuable why would someone want to hire you don't. Be shy if. You don't take stock of everything, going for you you may be wasting, something so. What. Makes you valuable you. Have a special skill perhaps. You're willing to travel, can, you speak multiple languages. Perhaps, you're young and energetic or maybe you, have experienced, that most others don't have, perhaps. You have excellent, connections you. Have access, to smart and influential, people perhaps, you. Have a car. These. Are your personal resources, it's. Good to know what you have at your disposal because. When you set a goal you need to know what you have going for you and you. Also need to know where, you come up short it, tells us the resources we lack it. Tells us what we need to get before, we can actually go after our goals. Companies. Need to do the same thing very, often they have a large collection of people machines. Buildings. And inventory, that they can use to work towards their goals and while. Most of the resources I listed, for the company are tangible, like. People companies. Must consider their intangible, resources what. Are the intangible resources a company, may, have available to them perhaps. They, have a well known and trusted brand name, maybe. The, company is a cool image that customers love perhaps. The company has excellent, credit or maybe, the company is liked and trusted by, important, government officials, like a. Person, no company, has everything, and like a person, companies, can make the mistake of miscalculating.
Their Resources, we've. All probably thought at some point we had a strength only to find that others were much better than us or perhaps, we thought one, of our strengths, was really valuable only, to later find out that no one really cared that we could do a handstand, it. Can be embarrassing when we discover that something we thought was a resource, might actually be a weakness or a liability in, business. Being, aware of your resources, is vital, in knowing what you have and knowing, what you need it's. Critical, to know that, you have something special, something. That could differentiate, your company from, the competition. Or. Something. That could be used to develop new products, or reach, new customers, knowing. Your resources, is also vital in selling your company's potential investors, and in. Our cutthroat world, where, the battle to get talented, people to join your company gets more intense each day, companies. Often attract, employees, by listing, all the positive, things the, company has going for itself, basically, by listing, its most valuable resources. And as. Our world changes, at such a rapid, pace a company. Will have a hard time staying competitive, if they aren't aware of what they have and what they lack, which. Of these does, your company have, any. One of these might be the thing your, company will need to get an edge any one. Of these might, be the difference between being, prepared, to change, or getting swallowed, up by change, so. Let's first consider your, goals, what. Do you want to do do. You want to write a book, start. A tech company do, you want to develop a video game, now. Let's, take stock of your resources, what. Are the resources, you, have at your disposal, what. Are the strange, things, you, have that someone else might not have what. Are your differentiators. Then. Ask yourself, what. Are the things you, lack to achieve your goal. Okay. Now. It's time to, get someone, to believe in you if you. Wanted me to invest, in you how. Would you try and sell me sure. Having, a good idea would be nice but, if you didn't have some valuable resources, at your disposal I'd. Probably feel a little nervous, about investing. In you, to make that idea real. Resources. That's. What makes you valuable. So. You want start business, well what kind of business I'm not talking about what, you might make sell, or service, instead I'm talking, about the ownership, who. Will own and, run your business let's. Go through some of the common, forms, of business ownership. Let's. Start with, a sole, proprietorship. One. Owner with, all of the management power one, owner that can claim all the profits, they, carry all the risk and get. All the rewards. But. Add, more. Owners then, we have a partnership, each. Owner is, a partner. Each shares, in the profit, do. All partners, run the firm not. Necessarily, a partner. That's active, in managing, the firm is a general. Partner, a partner. That invests, money but. Is otherwise not, active, in running the company there, a limit, partner. Perhaps. A partnership, wants to grow but, they need more cash to expand, the. Present, owners can sell some of their shares in, the company to investors, the. Company, is now a corporation. Those. Investors, their. Stockholders. Therefore. They're. The owners and they, can easily sell their shares at any time. Corporations. Are legal, entities, in effect, they, have legal rights just like a person, which means the, corporation. Is responsible. For anything that might go wrong the. Investors, at worst, can, only lose the value of their stock, but. Who. Runs the company for. A corporation, the. Owners, that. Is the stock holders they. Can elect, a board of directors, that, board. Can choose the top executives, in the company but.
The Board of directors, cannot influence, day-to-day. Activities, in the company what. Does this mean well, to a certain degree in a corporation. Stockholders. Own and, managers. Manage. There. Are many other nuances in trying to choose the best ownership, model for your organization. But, hopefully, now, you know some of the basics, associated. With the most common, ownership models and hopefully. You'll, be able to consider the important, issues and ask, the right questions. As you, move forward in developing your, organization. You. What, are the products you love to buy the, ones you love to shop for the ones you research, electronics. Cars. Furniture. Or maybe it's clothes. For. People that love clothing, what. Makes for a great purchase what, would make for a great shirt, or dress. Perhaps, it's the design, of the clothing what, do you like classic. Modern. Outrageous. But, to be truly great it, needs high, quality, fabrics, this. Is something you'll want to wear again, and again and it'll need to survive getting washed. Perhaps. You, value excellent, workmanship, solid. Stitching, consistent. Sizing, not. All of us have an unlimited, clothes budget though so, the price will also, be important to the customer and the. Company needs to make a profit so they'll be concerned, with their costs, for. Some of us we want something from a brand we trust or perhaps a brand that others will admire so, marketing. And branding will be important, we, can't visit every, store or online retailer, we, don't visit every fashion, block so, the clothing company has. To get their clothing, so that we can see it so. Many things need. To go right for, us to find this one special, article, of clothing and if, they want us to buy from them again and again they'll, need to consistently. Satisfy, us in all, of these categories over. And over again it's. No wonder that the most successful and. Progressive, global companies value. Cross-functional. Teams so. While you may expect luxury, brands like Coach, Chanel. Gucci, and Prada to, be filled with dozens of great designers, a real. Business, person understands. That a successful, company in an industry, where creativity, and innovation, are required, a, successful. Company needs. Cross-functional. Teams, small. Well. Managed teams made, up of very different people with very different skills, so. Not, only does a company like Chanel, have great designers, but, they also have people skilled in marketing. Purchasing. Manufacturing. Finance. Engineering. Strategy, and probably, a number of other areas. Each. Of those functional, experts, brings, different skills, different. Problem-solving. Techniques, each, is creative, in their own way each, judges. Success, in a different way this. Is why companies like Apple, Nike. And Lexus, has such a long track record of success, each. Of these companies values, people that understand, the importance, of product, quality. Innovation. Design. Marketing. And of, course profit. As you. Consider your company, its, strengths. Its weaknesses. Consider. The respect, and attention paid, to all the different functions in your company be. Sure your company gives a voice to a varied group of leaders they.
Can See mistakes you wouldn't consider they. Can also expose, you to opportunities. You would have never known about, long-term. Success. Takes, a true commitment to. Cross-functional. Teams. Cost. Quality, and speed are all related, to company, flexibility, for, example when you buy a car you're given certain options a vehicle. Color leather. Or fabric interior. Electronics. Navigation, and media options tire. Options, but. They, don't ask you the type of battery you want in your car they don't ask you what kinds of spark plug for your engine they also don't ask what types of oil and antifreeze to, use in your car why. Well, the company is trying to balance a number of things they. Want to give you choices so, the car feels special, so, the car feels like it's yours, but. They, can't let you choose everything, because offering. The customer choices. Requires, extra, time extra inventory, and it's possible, the customer, really doesn't care if. The company offers you 10, different tire options, for one car they, would probably need to carry inventory of, all 10 tires lots. Of inventory in low, volumes, higher. Per unit prices, from the supplier plus, your, workers now have to become more versatile, at. The same time when, companies offer lots, of options, customers. Might, be willing to pay a premium, to get exactly, what they want, also. When, a company offers more options it's possible. To attract, a wider market, of customers, now. We have cars for, people that like different, colors for. People that want luxurious, leather interiors, and also. For parents that would rather have cloth interiors, that are easier to maintain. We. Also have a car that appeals, to people that just want a car with basic, stereo, options, as well, as families. That want the very best media, options, for those long trips with the kids so, as. Your, company develops, new products, and services consider. All of the possible, options which. Options, does, the customer value most, for. Each feature, how, many options, will you need to offer and are, they willing to pay the premium, for that option does. That make your market bigger while. Offering that option deliver a profit, at the. Same time which, features, our customers. To accept s standard. Standard. Features are easy to mass-produce, if materials. Are needed you can buy them in bulk for, a good price and fewer. Options might, make it easier for a customer, decide whether. Or not they, want to purchase your product or service, the. Next time you go anywhere. A restaurant. A coffee, shop the, post office, the grocery store consider. All the choices they let you make consider. The ones they don't and then. Try and think about, how the number, of choices impacts.
Their, Cost their, quality, and their, speed. You. In business. Pretty much everything, customers, enjoy requires. Some, materials, a great. Meal required, delicious, ingredients, a movie. Experience required, comfortable, seats even. Your massage was made better with fragrant, nourishing, oils. Companies. Must recognize, that every, material purchase, is an opportunity. To improve the product, or service, provided. Procurement. And materials, management are the segments of the company that fund suppliers, purchase. The materials and then make sure that this inventory, is stored and used effectively if done. Right procurement. And materials, management can improve, customer, satisfaction, they. Can contribute to the company's profitability, and by. Partnering, with reliable. Suppliers, they, can help the company develop, a stable, supply chain that can be counted on to continuously. Deliver high, quality products and services to, the consumer, to, illustrate. These points let's, use a cell, phone as our example product, and. Actually, since, we're buying parts, for this cell phone let's consider just one part, of the, cell phone the battery, what. Does our company need to think about let's. First consider the consumer, what. Does the consumer expect. They. Want value a long-lasting. Battery at, a reasonable, price they. Probably also want a battery that is safe a small. Lightweight. Battery, that won't overheat, if. This, is what the customer values and if those are the things that we advertised. The, battery in some way needs to fulfill the customer's expectations a. Great. Battery helps. Make our phone better a better. Phone will sell more units and thus our revenues, go up now. That we made the customers, happy let's, remember that revenues, alone won't bring us a profit we. Need to consider our company's, needs, the, company needs, to control costs, while. We're buying great batteries, for our customers, we, have to know what, the total cost of purchasing, these batteries will be I'm. Not just talking about the per unit cost you. Must consider the total, cost of these batteries, the. Cost of storing, bad. Costs, associated, with theft and damage the. Cost of negotiating. And placing, orders from battery companies, and don't forget that, someone needs to pay for the delivery, of those batteries so.
If Keeping costs low is, important, to your company you'll, need to remember inventory. Costs include the cost to buy hold. And order, inventory, that. Brings us to the final party, involved, in our battery purchase, the, supplier, the. Battery supplier, will ultimately, dictate battery, cost and the quality of the battery, but. They also impact, our cellphone company in other ways if they, can fill orders quickly we, can keep low inventory, levels even. If we run out of stock it won't take long to get a new shipment for. That kind of service though we'll, probably have to pay a higher price on the. Other hand a slower. Supplier, may, have lower per unit prices but, will need to carry more inventory, since, we have to place orders, early just to be sure they'll, be able to fill them before, we run out of batteries, this. Takes care of our battery needs today but. How about the next generation, of cell phones we'll, need stronger, batteries, that fit in our new phone design and we still need to control our costs in modern. Business suppliers. Our business. Partners, when. We saw more phones they. Sell more batteries on the, other hand if they, make batteries, better, we may sell more phones because. Of this suppliers. And innovative, manufacturers. Must, work together to, understand, the customer, develop. New technologies. And also, to develop manufacturing. And logistics strategies, whether. Your company is buying cell, phone batteries, Tomatoes. Theater. Seats or even massage oils, it, needs to consider the customer the. Supplier, and our, company, as you. Head back to work today ask, yourself, these simple, questions, are. The, customers, happy with, the materials, they buy or use. Do. We consider our supplier, a partner. Our. Suppliers, involved. In helping us develop better products, and services. And do. We consider, the cost of holding inventory, or just, the cost of purchasing, if, your. Answer to any of those questions is no you, are likely missing, an opportunity to. Maximize your, company's potential. Look around you look at your stuff, how. Was your stuff made which, items, were made well and which items were not which. Companies, do you always trust to make good stuff, your. Favorite car, clothing. And electronics companies. They, can only say, your favorites if they can deliver high-quality goods, over. A long period of time, good. Manufacturing. And quality control, are vital, components, of building a global brand that, customers, are loyal to so, let's, take a look at some of the primary issues manufacturing. Managers, think, about every, day and let's. Use a car, company as our example so. Once. They have a design, for a car they, need to know the demand, how. Many cars will be needed each month, perhaps. It's, a brand new model so, we, might not sell too many the first year but. Forecast, telesales, will grow significantly next. Year so. Just how big should our facility, be remember, a facility. That's too big will be a waste of money but, if it's too small we're just not having enough cars to sell in. Manufacturing. Cost, is almost always, a key consideration. So. We have to know how, much money will, it cost for materials, labor. Transportation. Facilities. And energy, to make each vehicle. How. Flexible, is our manufacturing. Process, how, many choices do, we give customers, do. We let them choose car color do, we offer a navigation, system can. They get upgrades, on seats, entertainment. Systems Sun roofs which. Brings us to quality, what, exactly, this quality, mean to you, aesthetics. Durability. Reliability. Speed. Manufacturing. Must make a car, that, their market deems to be high quality and, even. Then what's, good today won't, be good enough next year. Manufacturing. Facilities must be ready to continuously, improve. Then. There's the question of where, the cars will be manufactured, and by whom, should. We make them in the country where they will be sold or should we make them in another country. Should. Our company make them or should we hire a contract, manufacturer, to make the cars for us, what. Our issues manufacturers. Consider when, making these types of decisions. Cost. Of course materials. Energy, labor. Real estate taxes. All so is it possible, that the country, has more access to skilled labor or do, they have easy access to material, and energy related resources. Perhaps. The contract, manufacturer, has so much experience making, these types of high quality products. That you know they, can make them better than you could ever make them yourself. Location. Can also impact, speed perhaps. Their location, makes for easy movement of inbound, and outbound materials. Perhaps. Your end item, is big and expensive. Manufacturing. Location, may impact, your delivery, times and perhaps you, might be able to avoid import, taxes. Currency. Might also be a factor imagine.
That You are selling, a product in Europe, investing. Euros and getting paid in Euros minimizes. The chance that profits, might be wiped out by big swings and exchange rates and in, some cases choosing. A manufacturing. Location, might take into account the stability, of the country political. Stability crime. Rates inflation. Rates labor, laws and culture. Executives. Don't have to worry about what might happen tomorrow at their factory, that might be five or even ten, thousand miles away, the. Companies, that make your favorite, stuff Apple. Lexus. Nike, Samsung. Mercedes, they. Have transformed, their corporate, images, into global brands but. Without, a backbone, of high quality manufacturing those. Companies would not survive. Making. Their customers, happy means, that every, single product you buy from them meets, or exceeds, expectations. So. As you, use your favorite product today think. About who made it when. It was made where. It was made and what. They are doing right now to, make the next product you buy from them even. Better. In, just the last few years the term logistics, has gotten very popular global. Companies like DHL, UPS. And FedEx are known, as logistics, companies but, what exactly is, logistics. I mean is it just getting finished goods to a customer's, home or perhaps to, a store, where these goods can be put on a shelf ready, for purchase, yeah. That's. Logistics, but it's just a small part of what the world of logistics, and compasses you, see logistics. Doesn't just happen in the last mile before a product gets to the hands, of the user logistic. Happens before, a product is even made even. In the most simple, supply chains raw, materials, and components are shipped, to manufacturers, finish, goods are shipped to distribution centers and from their products. Make their way to, a retail, store or an online retailers. Picking and packing warehouse, where finally. They can be shipped to your home all. Along, the way there, are important, decisions to be made that will impact whether the shipment was quickly, delivered, safely. On time, in the right amount and of course at a reasonable, cost, plus. We, want to know that our logistics. Process, is flexible. Big, orders small. Orders perishable, products heavy products, dangerous, goods orders destined. For big cities and others, heading towards a farm, domestic. Orders and foreign, orders and. Nowadays. Customers. Want to be informed, customers. Want to have the ability to track, their shipments. Marketing. And manufacturing are, important, but, a great product that comes with a big shipping cost and then arrives late, damaged. Or to the wrong address ruins. The customer experience as a. Result, logistics. Specialists, are constantly. Making decisions, that must make customers, happy and keep, the company profitable, so. How can a logistics, manager, keep, the company profitable, keep. Inventories, low, move. Inventory, as quickly as possible and, at, the lowest possible cost. Empty. Trucks and containers waste, fuel so keep, trucks, and containers full, by planning, effectively. And don't, get caught unprepared. Stock-outs. Rush, shipments, and shipping errors are extremely. Expensive and can mean the loss of a customer, forever, so. In the end logistics. Managers are tasked, with making all sorts, of decisions that balance, cost speed. And customer, satisfaction. What. Types of decisions, well should. We use a truck, train. Ship. Or plane. What. Type of packaging, is needed to keep the items safe, they. Also consider, storage, issues like what's, better having. High levels of, long term inventory, sitting in a warehouse or, low. Levels of inventory, moving quickly through distribution, centers and if. You're shipping globally. You'll, need to consider issues like import. And export laws, tariffs. And documentation. You. See logistics. Is about a lot more than delivery, oh and. Don't, forget, materials. Don't just move in the direction of, the customer, reverse. Logistics deals, with returned, items, items. Requiring, repair, that need to be sent to a repair center and, reusable. And recyclable, packaging, as. Companies. Look to control cost reduce. Waste and eliminate, product loss while, still getting the right good to, the right place at the right time, companies. Need to consider, all of, the pieces of the logistics, puzzle, Logistics. Is beneficial. For, everyone, involved. Customer. Get what they want how. They want and, when. They want it and companies. Can, make it all happen with. Minimal cost and waste. Now. That you have a better understanding of, some of the vital pieces of the logistics, puzzle think. About which pieces your company, may not be considering. You. Whether, your company has customers, wants, customers, or if you're already successful. Company wants even more customers knowing. That customer, is vital, to securing sales so. As the company looks to start selling, their products and services often. One of the very key questions, they need to confront early, in the process is who.
Should My company, want as customers, who is our, target market well. Your target, market, should probably include people that you're capable of satisfying, while still earning a profit that way, they're. Happy and you're. Happy so, how. Do companies, describe. Their target markets well. Target. Markets, can be described, in a number of different ways is. Your target market made up of men or women, how, old are they where do they live what. Language, do they speak what. Are their hobbies what, do they do for a living how, much money do they make or better yet how. Much money do they spend and, is, it, possible, your target market, is not made up of people, perhaps. Your target market is made up of other companies, and it. Doesn't matter where your company is today, if you're, a brand new startup, company a large, global firm with a rich history or maybe, your, future company, is only an idea in your head, knowing. Your market is important, to being successful today, and in, the future why. Well. A company and its, marketing, team and Salesforce have only so much time and money they. Need to use their resources wisely. We're. Not just making sales today we're. Building a target, market that is loyal to our brand so. Whether you want to know your customers, desires today, or tomorrow, whether. You want to use your company's, money and time wisely or if, you just want to find new customers for. Your products and services. Understanding. Your target market. Is vital. To the evolution, of your company. Friends. Family. Business. Partners, there, are so many people in our lives and so many others we, have yet to meet. Developing. And maintaining relationships with, all of them can be difficult, but. These are the people we count on for, support. Stability. And growth. Nowadays. Companies, understand, that their customers, serve the same purpose, customers. Support. The company, a loyal. Customer, base provides. Stability and our, present, and future customers, provide, an opportunity for, growth so how, can companies reach. Their customers, how. Can they create an emotional, connection that, will drive a person to, buy your product or service, well. There are three basic issues, that, need to be considered. Who's. The target market, you'd like to reach, what. Does the company want to say and how will, that message, be delivered. Let's. Start by considering, the target, market, a good. Marketing, department, will isolate people, that. They would like to target as potential, customers, sometimes. The market is quite narrow so reaching most of them might be rather simple on the, other hand some, target markets are large and diverse they. Contain people with very, different lifestyles. This, could pose challenges. In reaching all of them in a simple, and cost effective manner so, we may need to dissect the, target market into smaller, slices, reaching. Each slice, with a different, message or using, a different medium, now. That we know the market what, do we want to say to them are we trying to make them curious. Do. We want to stir emotions. Excitement. Inspiration. Fear, perhaps. The. Goal is to build trust, some. Companies, want to invite customers to be part of a group, ultimately. We, hope the, customer, will be called to action make. A purchase, join, our club visit. Our website, while. A good product or service will satisfy a customer, customers. Need to be aware that the product, exists, they, must trust they will get value, their purchase, and they, must be driven to seek out the product, or service, and then, purchase it. Developing. A message, that can quickly inform. Inspire. And move, someone act that's. Not easy it requires creativity. And a deep understanding of. Human behavior. With. Our message in hand it's now time to deliver the message to our target market how, can we make contact with the customer. Digitally. In, their cars at an event in a, trusted, atmosphere. Perhaps. They hear about us through a friend or maybe they, learn about us at a store, each. Of those mediums, is different, so, a marketing, executive has. To be able to send the same message using, different, mediums, is your. Message something, that can be delivered using audio. Video. Pictures. Digital. Messaging, is your. Message simple, enough that it can be powerfully, delivered by other people, all the. While we, need to remember that our budget is limited so. As we consider identify, the target, market for our message, crafting. A message for that market and then delivering, that message so, it is heard, or seen. By our customer, we. Have to ask ourselves are, we, maximizing. Our investment, if we, spend a million dollars to communicate, with 200,000.
Potential Customers, how. Many of those people will, need to purchase our goods and services such. That we make a profit. Relationships. Are a two-way street. Both. Parties, need, to feel enriched, by the relationship, by. Knowing your target market. Crafting. A meaningful, message and knowing, how to deliver, that message via, multiple. Mediums. Companies. Can, communicate, with, customers new. And old. Customers. Are interested, they're, actually, considering, making a purchase they've. Taken the step to seek out a representative, or maybe they're, at your website perhaps they, even decided. To visit your store. Now. It what. Are some of the key issues that need to be considered in making, that first sale and then having, them purchase from us again at. This point typically, customers, are looking for trust. Comfort. Stability, and growth all. Play, a part in moving, a customer, to make a purchase. Therefore. Your people, your, website, and your facilities, all need, to demonstrate that you are committed, to the customer, and their needs that, the company cares that the company will be here, if you need assistance and that. The company is looking for opportunities, to get better, the. Facility. Signage. Furniture. Cleanliness. How. The company representatives. Look and act, the words that are used documents. Customers. Are required to fill in and sign, they. All carry, messages are your. People, facilities. And websites sending, out messages that, drive sales or are they driving away potential customers. Let's. Consider delivery. Even. When a customer, is ready to purchase from your company they'd like to know when the product, or service will be delivered, fast. Delivery free. Delivery easy, in-store, pickup, installation. It's, important, to know what, your target market, wants, and needs and it's important, to understand, what, your competition, is offering, the. Final, hurdle in making a sale is processing. The sale, especially. On that first sale or with any major purchase. Before. You give your money over to any person, or company a number, of questions probably race through your head how. Many floors do I need to fill out why. Do. I need to sign a contract, what. Does the contract say what. Types of payment are acceptable, when. Will they tell me the final and full price of the transaction, before. The transaction is complete will representatives. Push me to sell additional, products and services what. Are the options, for cancelling, or changing my order what. Happens if I'm unsatisfied. With my purchase, what. Are the return policies, what, happens, if the item stops working you are. So close, to closing. The deal and still. There, are so many opportunities to scare away the sale, whether. You're selling to a new customer, or a return, customer, consider. The importance, of your sales resources. Sales, reps facilities. Website. Work. To provide competitive, delivery, options, and create, hassle-free. Business. Processes, that protect both your company, and your, customer. Customers. They're, here, they're, interested. Now, it's your job to show the customer that, you are committed, to giving them what they want and, demonstrating. That the transaction, is only the first step in developing, a, long term relationship. You. Whether, you're starting a new business developing. A new product or service offering or even, if you're developing an, improvement, initiative, at your company, you. Are exploring. Unchartered. Territories, an explorer. May need food and supplies but in business you'll, need money for our adventures the. Question of course is how, much money it's. A very difficult question, to answer, having, lived through some failures, and successes has its value, good. And bad remembering. The key to success, in another project or better yet knowing, what killed your project last year can, be vital to understanding, the true financial needs, of a new project and the. More daring your project, the. More unknowns, there are, so. Having, a vivid imagination can. Be useful, in developing a budget what. Will be needed if you run into design problems, what, happens, if your product catches on quickly what. Happens if there's a product recall. Truck. Accidents, warehouse. Fires a movie, star uses, your product on TV are. You ready for everything, good and bad, even. When a company, is an overnight success it, doesn't, mean the company started yesterday and then became profitable, today, they. Purchase, materials and, equipment, they, buy or lease offices. And factories they.
Hire And train people and then, they. Open the business does. Your financial, budget have enough money to even get you here notice you, haven't even made a sale yet so, far it's only money going out the door now. That sales begin you may be saying now, we can be profitable, not so fast until. You pay for everything, you have spent up to this point you aren't making a profit it could take months or even years, before you're actually, making a profit let's. Say it only takes six months to turn a profit did your financial, budget account for six months of wages, rent. Materials. Energy, equipment, and maintenance office, supplies. Perhaps. You, also start to notice that, if sales continue, to grow you'll, need to get more space hire, more people use, more energy, buy more machines and materials, will. You have enough money to expand. Even, when revenues are just, beginning, to blossom so. Whether, you start a new company launched. A new product or start, an improvement, initiative, you'll need to have the money to start the project, support. The project before revenues, are generated and also. Be prepared to fund growth and expansion, if success, comes quickly. Discovery. And innovation are, exciting, for any company, but, they come at a price. Be. Sure your, company is prepared, to pay. Knowing, how much money is needed to launch a business a product, or an initiative is difficult. But, once you have a number it's time to find the funding perhaps, your company has the extra, cash lying around even. Then though you'll need to show your plan and projections. To the finance department and hope they, think that, your idea is worth investing, in if. Your idea looks like it'll get the company the best return on investment, great, but, for many of us getting. The money will not be that easy so, let's, look at some options for, borrowing the money this. Is called debt financing, common. Types of debt financing include, loans and bonds. Alone. Is a transaction, where a borrower, gets money from a lender and agrees, to repay, the money in a certain amount of time sometimes. Weeks sometimes. Months and sometimes, over many years the. Lender could be a bank a friend. A family member or even a credit card company, why. Does, the lender, give the money to the borrower well the. Lender expects, to make money by getting interest. On the loan and in, the case of a secured, loan if the, borrower does not pay back the money the. Lender can take assets, from the borrower as payback if your. Company gets a loan you, are taking on certain, risks, you, must be ready to pay back the loan or make periodic, payments when the loan comes due not. Paying back the loan in time could bring penalty, fees, result. In the loss of company assets, it could, hurt your credit rating and if, you're borrowing from friends and family you, risk damaging the relationship in, some, cases though companies. Could issue bonds. Bonds. Are essentially, small-scale. Loans from investors, and just. Like a bank they, will pay you interest. How. About if we don't want to borrow the money what. Can we give investors, instead of interest payments we, could give them a stake in the company big. Corporations. Can issue stock, each, share of stock might be sold for, $100. The, company, gets, the hundred dollars to invest in new ventures the. Owner of the stock now owns, a very, small percentage of the company how, small well some. Companies have millions, or even billions, of shares, but. Suppose a company sells, even just 1, million shares the. Company, might be able to raise tens, or even hundreds. Of millions of dollars very quickly. Small. Private, companies though might, look to venture. Capitalists. These. Folks will give you money but, they'll, want ownership, in return for, example you, might sell them 25, percent of the company for, a five million dollar cash, investment. The. Company now has 5 million dollars in cash but. In return, the. Investor, will demand you, grow the company such. That their 25 percent stake in the company will, grow as the company grows then. Again some. Entrepreneurs, raise money by selling parts, of the company to friends and family, again, this. Is very risky they. Now feel entitled to manage, the company or perhaps ask. For their money back if they don't agree with your management. Loans. Bonds. And equity, investments are, sort of classic, ways companies, raise money but, nowadays we, also have. Crowdsourcing. Money online. Business. Competitions. Where startups, present, their ideas and judges, award funds to one or more companies, companies. May also seek grants, or gifts, from the government, or charitable organizations, often, this. Type of financing is available to companies that are either owned by or serve. Underprivileged. Or underrepresented, groups. Look. Raising. Money is not easy and often, it's, not risk-free, so.
Understand. Your needs and understand. The trade-offs so, you can explore, the financing. Opportunities, that are best for, your company. Success. Is great. But. Now what in many. Cases companies, work so hard to break even that they never even imagine, what to do with the profits and strangely. The, more profits, that there are the, more questions, there will be about how to use them that's. Why the, best companies, plan, for success, they. Already know how they'll use the profits, or at least they, have ideas in some. Cases the answers, are easy if, profits, were promised, to investors, you, may need to distribute some of the funds and if. You have lots of investors, you may need to figure out who gets paid first it's. Also possible, that some investors may look to divest once. The company is turning a profit so. The, company, might have to be prepared, to give the investor, back their entire investment, plus any appreciation. In their share of the company if you. Didn't, get your money from investors you, probably borrowed, money for this or other ventures, you may want to pay off some of these debts the. Government, they, always want their cut too so, your company needs to plan to pay taxes, on those profits, and let's. Not forget about the people that made this success possible how. Do you think your employees, feel when the company starts generating profits, proud. Happy. Excited. Relieved. Yeah. Probably, but, they also probably, feel like they deserve a reward is your. Company prepare, to pay out bonuses to keep employees happy and keep, them energized, for the next few months and while, bonuses, are great, some, want something more permanent, perhaps. A raise, or a, promotion. Maybe, education. Incentives, or employees. Would just like to see the offices, improved, and don't forget that, your competitors, will try and steal away your best employees, in an effort to copy your success, are. You prepared, to pay up to keep those employees. Perhaps. You, still have money left over what. Else could you do well, you, might want to continue, to grow this opportunity. Investing. In more people, facilities. And materials, may be required. You, might need to invest in research and development, innovating. This product or service, or, perhaps. Developing, new products, and service offerings, it's. Also possible, the company may want to invest in other companies, and their, new business ventures and, some. Companies, even want, to share their good fortune with others by, giving to charities, they believe in or, investing. In the communities, where their employees live and sometimes. They provide special, offers, and awards, to their customers. But, the reality, is the. Best companies, do not distribute. Donate. Or invest, all their profits. Saving. Some of that money is an, option. Times. May be good, now but we never know what lies ahead a bad, economy new.
Competitors, New, business, opportunities. Having. Accessible, cash and accompany savings, might be the key to comfort, and happiness in the future, the. World of business is, filled, with risk and failure any good, business person knows that and thus, they, prepare, to deal with adversity but. The. Best business people not only survive. The day-to-day struggles, of business they, are also prepared, to deal with success. Is. Your company prepared, for, the challenges, that come with success, if not. Your, success, may be very, short-lived. You. Why, do companies decide to bring on new people perhaps, they. Need to grow a department, maybe, they, need to replace a person that left it's. Possible. The company requires a new, type of employee to fill a modern, need, whatever. The reason to make a good hiring, decision, the company, needs to be able to describe, the position to be filled, what. Type of employee, they, want to fill that position and. Also. How, much it will cost to, effectively, fill that position, let's. Say we want to hire someone to redevelop, our website, and then, to, manage and grow the website in the future, how. Would you describe the positions, so that it sounds interesting, so. That we can attract, the very best, candidates. Motivated. Professionals. But. For. A person with a bit of experience, and for someone motivated. To develop, a strong career this. Particular, web development, job sounds, exciting, they're, interested. They, like us that's, good. But, do. We like them let's. Tell them what we expect. Hopefully. The unqualified, have, now moved on and the best candidates, are now working on their resume look. We, can't interview, everyone, so, we need to do our best to find great candidates, and entice, them to apply for the job. Communicating. A job description and job requirements, and, then being sure, that the best people know about the job is only, the first phase of finding, a great person, to join our company. Now. That we have applicants, we need to figure out which candidate, is the best fit for that job and our, company, so, how, do companies, figure out who to hire well. Let's consider what, we might want from, our web developer, they, need to talk to executives, they, need to have the ability to develop creative, content, they need to have technical. Skills they. Have to understand, our culture and our, ethics, and they, have to be trustworthy. How. Could you see if the candidates, have everything, it takes to be successful in this job. Interviews. Sure. But. How. Could you their ability, to develop creative content. How. About a ski to see some of their past work did. They have a portfolio, of work how. About technical, skills perhaps. We, can have them take a test maybe. We can give them some homework that, they could bring, to the interview. Are. They trustworthy. Nowadays. Most, companies will also do some sort of background check, with law enforcement and, perhaps also with past employers, and, once. The interviews, are over you'll also need to consider some other issues, what, happens if no one is fully qualified will, you be willing to take someone that is mostly, qualified, also. Are your, hiring practices, legal, and ethical is. Diversity. For your company, government. Mandated, or part, of a plan for corporate excellence and. Who. Gets to make the final, hiring, decision, their, new boss a, top. Executive the. Person that interviewed, them or perhaps, someone, in human resources, and even. When you find the best candidate, and decide. To make them an offer there, is still the question of whether or not they will accept the offer the. Best candidates, often have lots of options, to choose from. Offers. Counteroffers. Negotiations. And signing, a contract may be all part, of the hiring process. Once. They accept the position, you will need to gather their personal, information for, company records and sign. Them up for a benefits, package, once. We have them in the system the new employee might, go through a corporate, orientation. And then, they, might get trained on equipment, or business, processes, imagine. Going through all of that all, that time, all those resources, and then finding out you. Hired the wrong person, great. People, are the key to, a great work environment and excellent. Customer satisfaction. Recruiting. Evaluating. Hiring, and training employees. Is extremely. Expensive. Companies. That do not take these processes, seriously, waste lots of time and money and are, then stuck. With a subpar, workforce. The. Best companies want. The best people they, will fight, for them and once, hired the, company is looking to get the very best that, person has to offer that means, finding, their strengths. Identifying. Their weaknesses, providing. Opportunities, to develop their skills and as, the, person grows putting. That person into leadership, positions. That. Will both help, the company, grow and also.
Keep The employee satisfied. Bigger. Small companies. Want to measure the performance of, their employees, and the, bigger the company the, more the company will rely on data, but, which. Data, what. Should a company measure, and why, do companies, measure. Companies. Measure because. They need to know areas, of strength from. Those strong people, and groups they, can learn about success, and pass, along that knowledge to others in the company, companies. Need to find weaknesses, so they can fire people just. Kidding firing, people is expensive. There's, no guarantee, the next person hired will be any better, so, finding. Weaknesses, helps, the company know what, types of help to give those that are struggling in a. Company we, are all part, of a corporate family and as such we need to help those in need think, of it this way you, hired them so, they, are your responsibility. Another. Reason companies measure, is to motivate employees, think. About a time someone, said they were going to measure your individual. Output, did, you up your game didn't. You start noticing details, perhaps. You even started, getting creative, about how to solve problems. Focused. And creative, employees, companies. Love, that but. Remember. Good, measurements, will motivate good, behavior, bad, measurements. Might motivate bad, behavior, and while, the performance metrics, may motivate employees temporarily. They, won't stay motivated unless, they, are rewarded for that excellent, output. So. The, best employees, will expect, money. Promotions. Awards. Job, security, and corporate. Benefits for content you'd excellence, all. Of this is not easy though companies. Face all sorts of challenges in measuring and motivating, like, what well, coming up with good performance, metrics is difficult. Some. Things like, attitude, customer. Service, and work ethic are difficult, to measure also. Sometimes. It's difficult to evaluate individuals. When, they work in teams even. A single, bad performer, on a team could bring the whole team down and even. If a company can identify the, best workers, it's, hard to reward them all rewards. Must be doled out in a fair, and legal manner, also. While. One employee may want more money another, may prefer a long term contract or perhaps a promotion, and let's, not forget that, we also need to keep underperforming. Employees, motivated, providing. These employees, feedback, giving. Them advice and bidding, them assistance requires. Excellent, people skills if. You're too harsh they, may become timid they, may avoid making decisions, and taking, risks on the other hand if a manager is too nice the, employee may believe that there is no need to change their behavior, so, let's. Take a little self quiz are, you a good employee what.
Are Your strengths, and you prove it to me with numbers based. On your strengths, how. Can you help a company grow, how. About weaknesses, what, types of training and support would you like from your company. Finally. If you, prove yourself successful. In your job what. Would you expect in, return, for. Many of us coming, up with answers to all of those questions can be tough now. Imagine, being responsible. For coming up with answers to every, question for. Every employee in your company if, you. Can do that and do. It well then. You're doing with the very best companies, in the world do. Do, you love where you work whether. The answer to the question, is yes or no the, more interesting, question is always why. Why. Do you hate or love your company, let's. Look at some of the common, issues that motivate, us to love or hate our company, in, some. Cases we. Just don't like what we do. Tedious. Work. Simple. Work repetitive. Work interacting. With angry, people delivering. Bad news to, good people those. Types of jobs numb, our brains and they, hurt our soul nonetheless. These. Jobs exists, and in many cases these jobs are required and often, the, people in those jobs know this, still. In return. They, want to be told that their work is appreciated they. Want to know the company is working hard to make their jobs easier whenever. Possible, the. Place where you work can also impact, your psyche, people. Love clean modern. And safe workplaces, they want a good balance of interaction, with co-workers and also, areas of privacy, lighting. Furniture. Technology. The neighborhood, the restaurants. Transportation. Options, the lunchroom all of, these things can make coming to work each day harder. Or easier and while, a company can't give you everything employees. Appreciate when, the company improves, the work environment. There. Are many ways to pay employees. Hourly. Wages annual. Salary, sales. Commission, year-end. Bonuses, stock. Options, signing. Bonus upon hiring, each. Of these has its own pluses, and minuses, for the employee and the company, some. Companies, and employees want minimal, risk others. Prefer to motivate workers, based, on their recent performance, so. It's, important, to remember that, some employees, might prefer an annual, salary, others. May want the, risk and rewards that come with getting paid on Commission, and perhaps, others, would like some combination, of the two, perhaps. Employees, desire some personal, benefits, medical, insurance, retirement, packages, is the, company willing to take care of your family will they take care of your significant, other will they assist, with education, expenses, can, you work from home how. Much vacation will, they provide you perhaps. They have free food and beverage in the office can. You bring your pet to work free. Shuttle to work or how about valet parking, perhaps. They have a fitness center in the facility, there, are so many possible, benefits, a company can offer again, though while, some employees may love all of these benefits others, may trade fewer benefits, form or pay for.
Some, Employees job, security, is of vital importance. Especially. For employees with families, a long-term. Contract and a steady wage may be better than wondering if there still be able to pay for food and shelter next month, and while. Long-term, contracts, may not be possible for everyone when. Employee knows that they work at a company that values stability, cares. About employees, and their families, and, understands. When workers need time off to care for themselves and a family member that. Type of commitment and loyalty to employees, is something, that can create a special, bond between the, company, and their employees. Finally. The, very best companies want employees that are always getting, better why. Because. Some employees, get new jobs some. Get promoted to better jobs in the same company eventually. Some, folks will retire and on occasion, someone. Needs to be fired because. Of this companies. Must develop all of their employees such that when someone leaves someone. Else is ready to take over and by, educating, and mentoring employees. Exposing. Them to new projects, and giving them promotions, the company, earns the trust of their best employees so. Let me ask you again do. You love where, you work hopefully. Now. You not, only know the answer, but, you also know why. Developing. A satisfied, workforce, is tough to do if you, love your company hopefully. Now you appreciate. How truly, special your, company is. Much, like romantic, relationships, ending employee relationships, can be difficult, and while some human relationships, last for a lifetime the. Same is not true in business eventually, employees. Leave the company, sometimes. They leave you other. Times, you, must end the relationship and, like, with romantic, relationships. The end may be smooth, and easy but other times the, end comes, with friction. How. Can companies minimize. The friction well, it all starts, on day, one the. Day you hire an employee what. Is said and what is, signed, that. Is an opportunity, for a company to make a smooth, ending, possible, companies. Need to be sure not, to set false expectations. And they must be clear about what would constitute termination. If, the company is too harsh on day one a bad, relationship may, have already started if the company is not specific, enough it, could shield bad employees, from termination. There. Are a number of reasons companies, terminate. Employees illegal. Behavior. Inappropriate. Behavior, poor. Performance, lying. About skills, or past jobs there. Are all common, reasons for firing an employee and unfortunately. Even, good, employees, may be laid off when a company, is struggling financially, no, matter what the reason a company, must be truthful. They must tell workers why they let them go and all, managerial. Statements, related, to terminations. And layoffs must be documented. Also. Companies, must be fair all, employees. Must be treated the same way, inconsistencies. And employee evaluations. May be construed, as discrimination. When. Appropriate consider, providing departing. Employees a severance, package why. It, can build goodwill it, can soften the blow when layoffs, of good workers are required and in, a contentious, parting, of the ways it can bring about a swift, resolution in, all. These cases though it is important, to document the, purpose, of the severance, while. Terminating an employee for any reason can be difficult sometimes, employees, leave the company by choice they. May get a new job at another company they may decide to leave to get a degree and of course, some, folks decide to retire in. All of those cases it's vital, to try and set up a final meeting an exit, interview this. Allows the company to thank the employee for their service find. Ways to stay connected and ask, them for their positive and negative experiences with the company in an effort to improve the employee experience in the future in the. Case of retirees, staging. A retirement, event can be helpful to everyone saying their goodbyes and allow management, to recognize, the employees complete contributions.
To The organization, the. Person retiring is celebrated. And other. Workers may be motivated to build a deeper, relationship, with the company that takes time to honor employees. That have given a good part of their lives to this company. The. Best companies, are the rules of terminating, employment, they, respect, labor laws when bad employees, are involved and they. Know the importance, of honoring their, retirees and, they. May even have specialists. That are responsible, for ending employment, relationships, in the company. Saying. Goodbye is never, easy but. In the world of business it's, something, you'll, need to face. You. Perhaps. You, like Starbucks coffee maybe. You love to buy things from amazon.com, do. You have a Netflix account where. Do you buy your groceries which. Cell phone provider do you use the. Companies that sell you the things you need they, appreciate, the purchases, you've made from them but they. Want to keep you as a customer so, they're probably more interested, not, in what happened yesterday but, what you need today and, what, you'll need in the future now. More than ever companies, are relying on customer, data to discover the mistakes, they've made in the past and to help inform, the business, decisions they face today, the. First hurdle in using data to make better decisions is, gathering, data some. Companies, have an advantage in that they require, that you create an account and then via. Digital, devices they, can track all of your behavior, when you use your account. Because. Of the digital account, they have your personal, data and they also have your transaction. Data for. Companies like Amazon, Netflix, and, your cell phone provider, gathering. Data can be rather easy. Grocery. Stores and Starbucks,