Connect with us

Management

Getting started in business

man

When you are thinking of starting a new business, one of the first things you need to ask yourself is what business model your company will adopt. Your business model is your company’s blueprint for making a profit. It explains what product or service your company plans to sell, how you will market your product or service, how much your business will cost to run, and how your business will turn a profit.

The best business plan is the one that allows you to fulfill your clients needs at a reasonable cost, while still remaining true to your company values and objectives. Three good questions to ask yourself in the business model planning stage are:

  1. Do you have a unique value proposition that makes your product or service valuable?
  2. Who is your target market, and do they have a need for your product or service?
  3. What makes you different from your competitors? Will your business model be difficult to copy?

Without these essential elements, you don’t have a way of generating revenue for your business. Some other elements to ask yourself when selecting a business model include: cost structure, key metrics, resources, problem and solution, revenue model, revenue streams and profit margin.

Some of the most popular business models include the manufacturer model, which is utilized by Dell Computers and Hewlett-Packard. This business model sees a manufacturer convert raw materials into a product. Another popular business model is the retailer model. Retailers purchase goods from distributors and then sell them to the public. Stores such as Nordstrom and Target have seen great success in this space.

Even companies that are innovating the business world tend to adopt characteristics from more traditional models. For example, Netflix has transformed the way you watch shows and movies but their company essentially runs on the subscription business model. This model asks customers to pay a monthly fee in order to utilize the product or service. In the case of Netflix, you pay a monthly fee to access their app.

You should start writing your business model in the beginning stages of your business plan. This way, you answer some of the most important questions about your business right out of the gates, rather than realizing at the end of your planning stages that profitability is not an option.

There are twelve main business models for you to choose from. Once you’ve found one that fits your business needs, you can begin to adapt it and make it your own. The right business model for you depends entirely on what you are selling, how much it costs to produce, and who you plan to market it to.

If you don’t know where to start, the visual below details the main business models explained with coffee.

Let me know if you have any questions!

business-models
Continue Reading

Finance

5 Ways Your Business Can Slash Expenses Now

startup

When you feel the time has come to slash business expenses to reduce overheads, then there are plenty of different approaches to achieve this goal. Needless to say, when there’s been too little attention on spending less up until now, they’ll be greater opportunities for savings. However, don’t despair – there are always a few ways to make it happen.

Here are five ways that your business can save money.

1. Purchase Recycled Office Furniture

Whether you’re wanting to replace tired desks or chairs that are now proving unstable or a new office is being equipped, it’s necessary to set the office up with what the staff needs.

While companies often only look at buying new furnishings, there is another option, and that’s used office furniture, including workstations, chairs, desks, tables. Near new workstations, for example, are a good purchase for startups with a limited budget. With more than half of all new businesses going to the wall every year, many of these companies sell off their office equipment and chattels making it a far more affordable option for businesses keen to improve their carbon footprint. Used office furniture from reputable suppliers is high-quality and often comes with a warranty.

2. Optimise the Marketing Plan

Instead of marketing across many different channels and seeing varying results with each one, try narrowing the marketing strategy down. Examine the results to determine which channels and marketing campaigns have delivered the most customers at the lowest customer acquisition cost. In case that’s unclear, the customer acquisition cost is based on the average amount that it was necessary to spend to secure one new customer.

Once you know this information, it’s possible to tweak advertising plans to only spend on the most profitable campaigns from a customer acquisition standpoint. This optimises the current marketing approach to reduce the total marketing spend while delivering the same results.

3. Reduce Recruitment Costs

Look for ideas that will cut down on recruitment costs.
For instance, ask existing outperforming staff for a recommendation of a friend or colleague who might be interested in joining the company. Also, see if there’s anyone that you’ve been impressed with who could be invited to come on board.

When you’re using recruitment consultants, get the best deal in terms of what they charge. Check around on different job boards for the industry and other alternatives. See if you can do some of the recruitment work in-house to avoid the often-extortionate recruitment fees by putting in a bit of legwork.

4. Improve Systems and Limit Staff Meetings

Most workers aren’t that productive. Repeatedly, research has shown that office workers tend to grind for half the day and lose the other half to inefficient processes and procedures, overly long meetings, excessive breaktimes, gossiping, using social media and the internet, and more.

Breakdown each role so that there are systems and processes to follow. Remove all redundant steps to cut out the time-wasting elements. Also, have the staff members suggest better ways to get their work done, which often results in time savings there too. With meetings, go in with a plan, stick to it, set a time limit on the meeting, and get everyone back to work right after.

5. Be Greener

Use green technologies and ideas to save money on energy expenses.
Look at everything from energy-efficient light bulbs, dropping PCs down from performance modes to lower energy ones, and turn off what’s not being used all the time. Ask the staff for their suggestions on other ways that the company can be greener – employees often have amazing ideas in this area that can be implemented quickly.
There are a good many ways to save money as a business. Thankfully, it doesn’t mean it’s necessary to operate like a Scrooge either.

Continue Reading

Management

How Agile Training Can Improve Project Performance

startup

Project management is a complex practice that requires the many stages of planning, execution, monitoring, and others. Usually, you work with a planned set of activities that are completed in a rigid sequence, with little to no room for changes. The ultimate goal is to achieve a particular result within a specific time while considering constraints.

Over the years, the agile methodology has become more popularly used in organizations. The approach has proven to be effective in improving project performance and responding to market dynamics compared to traditional forms of project management. However, given the differences between agile and traditional styles, agile training is crucial to making the shift in management practice.

Agile is About Increment and Iteration

Agile is essentially a mindset or framework that you can adopt in your organization’s projects. It is about breaking down work into smaller and more manageable pieces called user stories that are delivered in repeated cycles called iterations.

The rationale of the approach is to have shorter cycles so that you can continuously respond to changes and adapt to them rather than trying to deliver everything in one go at the end.

As its name implies, agile refers to being able to move quickly, especially in today’s volatile market. With such an approach, you can measure performance at the end of each cycle, so you immediately know how consumers respond. Although agile was initially targeted at software development, it has, over time, emerged as a global strategy that can be used in any organization.

Benefits of Agile Methodology

Nowadays, managers are embracing the agile methodology because the short iterations help lower risk and take action at the early stages. With an agile approach, you can expect to get a higher product quality since you are frequently testing it during the development stage. Since agile is flexible, you can make adjustments and developments incrementally to improve your product.

The agile method can also help you increase customer satisfaction since you can respond to dynamic and changing needs in the market. Likewise, being able to deliver products to the market quicker will merit positive reception from the consumers. Another benefit of adopting the agile approach is that the fast iterations will help you generate quicker returns on investment (ROI).

Agile Training is Critical

To successfully adopt the agile methodology, getting agile training is crucial. In the agile approach, collaboration among team members is critical, so ensuring that each member is well-versed with the strategy will help maximize its benefits. You have to train your team to be consumer-focused so that you are always addressing needs.

There are many agile training frameworks existing today, with one of the most popular ones being Scrum. The Scrum team typically consists of a Scrum Master, Product Owner, and developers.

The Scrum Master leads the team and ensures that the development team is effectively fulfilling its goals. The Product Owner then makes decisions for the projects, which include writing the user stories. Finally, the developers create the software and conduct continuous testing throughout cycles.

With the popularity of the agile approach today, you will find several training courses available to get you started. Courses typically tackle different project life cycle frameworks, essential agile values and principles, and the roles of each team member. Once you complete your training, you will become a certified practitioner, something that will surely give you an edge in the workplace.

Continue Reading

Management

Top 9 Best Tips for Distributed Teams Management

hands earth

Managing remote teams is a challenge for any business, however, it’s a strategy used more often now as skills improve in nations where the cost of living is less. Companies are always seeking ways to gain more market share. What can inhibit growth is the expense of staff so hiring workers that can work remotely from the company’s main operating centers, is a strategy that’s work the effort.

Do you remember when working from home a day or two a week first came in? Initially, there were trust issues, i.e. are workers productive when they work from home? The challenge with allowing staff to ‘hot desk’ and work remotely was how the company could track their productivity.

When staff are in the office, they are visible, however, when they’re working from home before ‘monitoring apps’ they are not visible. Now monitoring is possible the challenge that remains is how to coordinate projects with team members located in different countries, with varying time zones.

In this article, there are a few tips on how to work with distributed teams to deliver what customers require, but for less outlay.

1. Live Meeting

For long-term projects with a fairly young team, try to organize an initial live meeting. Even with today’s technology, there is no better way to build a strong team than spending a few days together. And although at first, it may seem overly expensive, for high-priority projects this will be an investment that will have a high return in the long run.

2. Organize the Workflow

As a team leader or project manager, pay particular attention to the direct organization of team meetings and project management. The topics discussed, role distribution, project plans and documentation are of particular importance when managing a distributed team. It should be noted that for a one-hour telephone conference, it is still necessary to spend several hours on administrative preparation.

3. Time Difference

If you are in the United States, do not expect your project colleagues who are working remotely from another part of the globe to have a conference with you. Unfortunately, there’s not always a perfect time in the international team that would be convenient for everyone. Therefore, you will have to adapt to each other in turn. Again, due to the time difference, you might want to try to ensure that your calls are not longer than one hour.

4. Don’t Forget About Team Building

Spend a lot of time “offline” with individual team members. Make face-to-face meetings with each team member for training, feedback, motivation and building relationships.

5. Stay Connected

Take some formal and informal teamwork after your initial meeting. Acquaintance with someone as a person, and not just as a resource, allows you to build relationships based on trust, cooperation, and loyalty. Thus, it wouldn’t hurt to connect on social media, etc.

6. Cultural Differences

Learn another culture – learn a few phrases, at least how to say and write “hello” and “thank you”. You do not have to fluently speak a foreign language, your colleagues and partners will appreciate the respect you have shown. But it’s worth being careful, some project managers sometimes overdo it and then lose credibility in the eyes of their project teammates.

7. Use Technology, But Use Appropriately

Web conferencing, chats, blogs and video conferencing can be useful and can be used by you to achieve your plan. The only thing is, do not get carried away with these tools, use them appropriately.

8. Use Classic English

Although English is an international language, avoid local dialects, metaphors and anything else that can be confusing. This can be difficult right away – ask your teammates for advice.

9. Provide Information in Advance

Team members in another country may want to translate the material to you send or at least have time to read it in advance. It is very difficult to read and understand non-trivial information in a non-native language.

Summary

Technology has made it possible for people to choose where they want to live yet find fulfilling work and careers.

Companies have invested in their staff with diversified teams and business models that keep costs down yet deliver value to clients and stakeholders.

Continue Reading

Trending