entrepreneurship qualities
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Enterprising Entrepreneurship 1
Charms of an Entrepreneur 2
Credentials of an Entrepreneur 4
The Changes & Challenges 7
Risk Taking - the Way 10
Entrepreneurship Skills 12
Skills Enhancement 15Communication 18
Express to Impress 21
Presentation Skills 23
Time Management 30
Men Management 32
Leadership Skills 35
Team Building 38
Resource Management 41Crisis Management 44
Problem Solving 46
Creativity 49
Business Idea Generation 53
Business Ideal Identification 55
Business plan - a Case Study 58
Business Market 61
Marketing Strategy 63Selling Techniques 64
Customer Relationship Management 66
Financial Management 70
Pricing, Costing, Profit 77
Accounting & Legal Aspects 79
Business Mistakes 83
Towards Excellence 87
Catalog
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Be an Entrepreneur
Entrepreneurship is a social phenomenon and it is not inherent
within a person, rather it exists in the interaction between people.
To be a successful Entrepreneur it requires an out of way thinkingby acquiring various skills and efforts in learning to understand a
business. Entrepreneurship is the future of our modern India. It
reflects a ray of hope for the unemployed to earn a living and
maintain a dignified life and also for the economic development of
our country.
Entrepreneurs are the driving forces behind any economy. They
create large corporations out of backyard enterprises. Henry ford,
Bill Gates, N R Narayanamurthy, Dhirubhai Ambani and many
other were people who envisioned a dream and took risk to achieve
their dream. They marched to a different beat. They were
innovators, inventors, and adventurers.
Entrepreneurs are people who do things, which are not generally
done in the ordinary course of a business. It is not surprising that
every fortune 500 Enterprise in existence is the result of an
entrepreneur's enterprise and perseverance. Entrepreneurs are
pillars of industrial strength - the movers and shakers who
constructively disrupt status quo.
Enterprising Entrepreneurship
1
1
Innovation is the specific tool of
entrepreneurs, the means by
which they exploit change as an
opportunity for a different
business or a different service. it
is capable of being presented as
a discipline, capable of being
learned, capable of being
practiced. Entrepreneurs need
to search purposefully for thesources of innovation, the
changes and their symptoms
that indicate opportunities for
successful innovation. And they
need to know and to apply the
principles of successful
innovation.
-Peter F. Drucker,
The Father of Modern Management
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SEEING AN IDEA FLOURISH INTO SPECTACULAR
Entrepreneurs are idea builders. Unlike most people who only go
with the flow, they have innovative minds that are able to
conceptualize winning ideas. When an idea is born, it takes onerisky movement that sets its pace. Entrepreneurs are motivated by
thought of seeing these ideas becoming ideals
FEEDING ONE'S PASSION
Not all people are the same. Not all people want the same things
and this is what sets everyone apart from one another. Who you
are as a person and as a worker will be dictated by your passions
in life. If you are working to feed your passion, if you are doing
something that you love, then you will never go weary. Manypeople remain in stagnant situations because they are doing things
that do not mean anything to them. Successful entrepreneurs take
magnificent leaps forward because they are invigorated by their
passion for success and their commitment to their goals.
BUILDING BETTER LIVES
If there were one thing that truly sets an entrepreneur apart from
normal people, it would be the dream to build better lives for
people. They do not get into business only for their personal gain,instead they work hard because they know that their efforts will
ultimately provide comfort to those whom they could reach and it
could, even a little, bring something good for many people around.
Entrepreneurs are a different breed of businessmen and they are
different not just in the leaps of success that they were able to
achieve but this difference is mostly signified by the very attitude to
be significant. Their motivations brought them to where they are
now and these motivations could be yours as well.
3
Nobody talks of entrepreneur-
ship as survival, but thats
exactly what it is and what
nurtures creative thinking.
-Richard Branson,
Founder Virgin mobile.
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Whenever we talk about a business term it is essential to analyse
its meaning, ENTREPRENEURSHIP i.e. trying to identify market
opportunities, arranging resources to bring an imaginative idea to apractical situation and investing these resources in order to attain
long term gains for everyone involved in it.
A. BE GOAL-ORIENTED, ACCOUNTABLE AND
DISCIPLINED
Knowing where we're going is the first step to achieving your
dreams, and a clear vision and plan will help you reach them. Even
as conditions change in and around business, always have a target
that directs daily actions and take consistent and regular steps
toward actually reaching it. Have people and tools in place to keep
on track, whether that's regular check-ins with an accountability
partner or weekly reviews. Remember that, at the end of the day,
the buck stops with the head. No matter what schedule or approach
is, it must be disciplined and steadily move in the direction of goal.
B. BE ADAPTABLE, RESILIENT AND DETERMINED
Change is inevitable, and there will be plenty of times one will need
correct course and modify plans so that his/her business isn't left
behind.
Be ready and willing to accommodate changes in the marketplace
and be careful not so rigid that we miss opportunities for growth
and improvement. In addition to being adaptable, it's important to
be OK with failure. "Fall seven times, get up eight," as the proverb
goes.
Credentials of an Entrepreneur
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4
Seek first to understand, then to
be understood
-Stephen R. Covey
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Mistakes and failure come with the territory of being a successful
entrepreneur, and if we're not making mistakes, we're not putting
ourselves out there enough.
Being in business for ourselves will push to the breaking pointsometimes, so we'll have to be determined and remind ourselves
how far we've come. Find assistance through other entrepreneurs
and small business owners who can help, through difficult times
and challenges. It takes a great deal of commitment and dedication
to see a business to success, but if we stick with it, we will
eventually get there.
C. BE CREATIVE AND OPEN-MINDED
Solving problems, promoting businesses and expanding into new
markets will require a good dose of creativity and imagination.
Without it, every setback and obstacle will seem insurmountable.
Look for possibility everywhere. Think of how other industries deal
with issues we are facing and find ways to adapt those solutions to
work for our business. Stay flexible, make room for a variety of
possibilities and believe that there's always a way.
D. BE CONFIDENT AND OPTIMISTIC
One will come across plenty of resisters along through the way to
success, so it's important to become very selective with hearing
and about whose advice to seek. Find mentors and other big
thinkers who can call on for inspiration and advice, and most
importantly, believe in self and abilities.
E. BE PERSISTENT
There will be plenty of times when one just has to stick with an idea
long enough for it to take hold. It takes persistent and a whole lot
of the same thing over and over to finally make progress.
F. BE AN AVID LEARNER
So much can be learned from the experience of others, and
fortunately, there are thousands of books out there from
entrepreneurs who have achieved success. Many such books are
available for free at local libraries or inexpensive through book-
trading sites. One new book every two weeks is over two dozen by
the end of a year!
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Keep your feet on the ground
and your thoughts at lofty
heights.
-Kiran Mazumdar-Shaw,
Founder BIOCON India
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G. BE AMBITIOUS AND DRIVEN
Without motivation, it will take a lot to justify the hard work and time
required to get a business off the ground. No one should care more
about your success than you, and if you're not driven to achieveyour goals, every obstacle will provide the perfect opportunity to
quit.
H. BE A SELF-STARTER
Neither your mom or your teacher nor your boss will be there to
make sure you show up and do the work for business. So you have
to be self-starting, making sure that you have regular, dedicated
time to move the big rocks each day.
I. BE PASSIONATE
Above all, one should be passionate about the work. It's a choice
to go into business, so why not choose something we love to do?
There's no reason to dread starting a new day, so find something
passionate about that build business and life around it.
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There is no failure except in no
longer trying.
-Suhas Gopinath
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When someone asks you if it is going to rain, you make your best-
estimation by saying that it might, but you cannot guarantee that it
will. The charm glitters there. It is all about hope and facing thechallenges passionately.
A. MEGA BUSINESSES:
The advent of much bigger competition, especially regional and
national chains, into the same geographical area poses an
immediate threat to the startup business. With deeper pockets of
money, they can outspend the start up businesses in every aspect
of their business and still charge lesser for their products.
Big businesses control the entire supply chain and they can
manipulate it to meet the customer needs dynamically. They also
leverage high-end technology to keep costs under control in a way
that cannot be emulated by the startup businesses. They also have
several partnerships which allow them to bundle a wide variety of
products and services for their customers.
B. FINDING AND RETAINING QUALIFIED WORKERS:
Initially small businesses cannot pay the level of wages or benefitsthat can be offered by large businesses. Another key factor is the
visibility of the organization. A start-up business may be unable to
provide the depth of knowledge or experience that will enable an
employee to make a major transition into another company or
business entity easily.
Hence, most start-up businesses find it much more difficult to hire
and retain skilled workers. They have to look for employees within
a reduced pool of candidates, some of whom may be transient.
The Changes & Challenges
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Never leave that till tomorrow
which you can do today.
-Benjamin Franklin
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particular industry. The major risk with a start-up business initiating
and living with outdated technology is that of competition
leapfrogging over it and quickly reducing it to oblivion. Also new
technology usually brings the promise of reduced costs and/or
increased revenue.
One cannot talk about new technology without mentioning the
Internet. Most start-up businesses are not technically savvy
enough to use the Web effectively. They also cannot afford to hire
expert site designers to map out a good online strategy. While
blogs are becoming more popular, even people in IT industries and
big companies do not realize their importance yet, until.
F. ACCESS TO ADEQUATE CAPITAL:
Many start-up businesses find it very difficult to obtain finance,
especially if they are with new strange ideas or if they are relatively
unknown. Lenders require security for loans and many start-up
businesses may not have adequate security to be accepted.
Changes in banking organizations, particularly large mergers, have
affected lending to start-up entrepreneurs. During downturns in the
economy, the capital crisis grows more severe as banks reduce
lending to riskier borrowers, to which category entrepreneurs
belong.
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In order to be a success in business, there is one thing you must
do. You cannot be successful without it. That is WORK. I have nottold you anything new. Everyone knows that you cannot be
successful in anything without work.
Why does not everyone work? Because some lack the one thing
that makes men want to work-ENTHUSIASM. That is something
no one can give you. You must acquire it yourself, and the only
way that you can become enthusiastic about anything is to have
a thorough KNOWLEDGE of it. You have never seen an
enthusiastic man who was lazy.
-Thomas J. Watson
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Think beyond the unthinkable."
Product cycles are too short; markets are deregulating too rapidly.
Risk entrepreneurialism is as much an idea as a business tactic.
Product cycles are too short; markets are deregulating too rapidly.
Innovative products and services relentlessly flood the
marketplace. No one can predict the future, but that does not stop
people from wanting to find ways where they can get an idea of
what is to come.
Prior to the early 1990s, the conspiracies were limited. It was then
started the intuition through drastic changes in every field. It is all
about determining, to the greatest degree of development, justwhat is going to happen down the road following the plenary
scenario.
Through diagnosing the scenario one can make statements about
events, but at the same time the outcome is going to be unknown,
may be. It is often called making a best-estimation of what is going
to happen. Without it, before the world scenario on track, giving
plenty of opportunities to upcoming entrepreneurs. There are
ample number of sectors and applications which really give a
chance to emote, to each individual entrepreneur daily, their tricks.
Risk is the potential having a chosen action or activity (including the
choice of inaction) will lead to a loss (an undesirable outcome).
Possible losses themselves may also be called "risks".
Almost any human attempt carries some risk, but some are much
more risky than others. Risk is as old as man and has been an old
time friend of businesses. There is no approach that will make risk
to go extinct in business environment however; it can be controlled
Risk Taking - The Way
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Business, social responsibility
should not be coerced; it is a
voluntary decision that the
entrepreneurial leadership of
every company must make on
its own.
-N.R. Narayana Murthy,
Infosys
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to an appreciable level. As an entrepreneur, everyone is duty
bound to reduce risk level to a minimum and may continue to make
profit. To this end, better risk management strategies are good
inhibitors of business failures.
No matter what the sizes are, to protect a business against risk, an
entrepreneur needs to do the following:
1. DISASSOCIATE PERSONAL FROM BUSINESS:
Activities that bring about risks to an organization need to be
stopped. For instance, if a business fund is not separated from a
personal fund, the temptation of using the company's fund for
personal expenses will always is there. Quick and unilateral
decisions of top members of the management most times posegreat risks to the company.
2. SPREAD THE RISK:
There is no need for the risk to be concentrated on your desk
alone. Spread the risks in the form of contracting out some
projects/services with a performance bond signed by the
contracted firm can help. Sometimes, selling out products on credit
to trusted customers can help to minimize the risk of obsolesce and
high inventory cost.
3. REDUCING RISK THROUGH BETTER MANAGEMENT
CONTROL:
If the pros and cons of running an organization is properly spelt out
for management, staff, employee and customers etc, certain risks
will be averted in the business. Proper management of the
company's data also helps to prevent risk. Hardcopy data can be
digitalized and stored by reputable data managers for safety.
4. INSURING AGAINST RISK IF POSSIBLE:
A company need to insure against damage brought about by fire
and natural disasters.
5. APPLY IMPROVED TECHNOLOGY:
If risks will be averted, modern techniques need to be applied in the
operation and service provision of any company. This will enhance
the business supply chain management hence making service
provision to be excellent.
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The three things that are most
essential to achievement are
common sense, hard work and
stick-to-it-iv-ness....
-Thomas Alva Edison
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Some of the most common questions on the theme of
entrepreneurship are, "What characteristics determine who will be
a successful business owner?" And "Why does one person takesuccessful advantage of an opportunity while another person,
who's equally knowledgeable, does not?"
For all this sort of questions, there might be no real definitive
answers. What we do know is that successful business owners
seem to have certain traits in common. These traits fall into four
categories:
A. PERSONAL SKILLS:
The first things to look at are once personal characteristics, values,
and beliefs. Does he/she have the inner spirit characteristic of
successful entrepreneurs?
I. Drive and persistence
II. Commitment
III. Risk tolerance
IV. Self determination
V. Vision
VI. Initiative
VII. Control
VIII. Resilience
While one is born with a certain temperament or personality, the
traits listed here can certainly be fine-tuned. However, trying to
change a personality completely is much more difficult - some
might say impossible. When assessing entrepreneurial personality,
Entrepreneurship Skills
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Great things are done by a
series of small things brought
together.
-Dhirubhai Ambani
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be aware of areas where one is completely at odds with the
"average entrepreneur," as they need to compensate for possible
weaknesses in these areas.
B. INTERPERSONAL SKILLS:
Running own business is all about working with people. One has to
be cordial and communicate with and satisfy employees,
customers, suppliers, shareholders, investors and more.
One's ability to communicate with them is critical to entrepreneurial
success. The types of interpersonal skills that need to be good at
are:
Communication Skills
Listening
Team player
Leadership and motivation
Conflict Resolution
Personal Relation
Negotiation
Interpersonal skills are developed over time and some people are
more gifted in this area than others. The more we work with people,
the better we become at deciphering the complexity of human
relationships.
C. CRITICAL AND CREATIVE THINKING SKILLS:
Entrepreneurs need a well-developed set of critical thinking skills to
organize and administer a successful venture. As an entrepreneur,
we must be able to find the necessary information to support wise
decisions about a venture.
Creative thinking
Problem solving
Opportunity identification
Decision Making
Creativity and innovation require discipline and are based on a
discrete set of skills. This means that we can learn to improve our
creative thinking skills and break out of traditional thinking patterns.
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The more you are willing to
accept responsibility for your
actions, the more credibility you
will have.
-JRD Tata
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Skills management is the practice of understanding, developing
and deploying self skills. Skills enhancement management
provides a structured approach to developing individual andcollective skills and gives a common vocabulary for discussing
skills...
CREATIVITY & INNOVATION:
Creativity is an act of turning new and imaginative ideas into reality.
Creativity involves two processes: thinking, then producing.
Innovation is the production or implementation of an idea. If you
have ideas, but don't act on them, you are imaginative but not
creative.
"Creativity is the process of bringing something new into
being...creativity requires passion and commitment. Out of the
creative act is born symbols and myths. It brings to our awareness
what was previously hidden and points to new life.
CREATIVITY AND WORK:
Creativity is a core competency trait for leaders and managers and
one of the best ways to set a company apart from the competition.
Corporate Creativity is characterized by the ability to perceive the
world in new ways, to find hidden patterns, to make connections
between seemingly unrelated phenomena and to generate
solutions.
Generating fresh solutions to problems and the ability to create
new products, processes or services for a changing market are part
of the intellectual capital that give a company its competitive edge.
Creativity is a crucial part of the innovation equation.
Creativity requires whole-brain thinking; right-brain imagination,
Skills Enhancement
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Watch, Listen and learn. You
cant know it all yourself. Anyone
who thinks they do is destined for
mediocrity.
-Donald Trump.
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artistry and intuition, plus left-brain logic and planning.
Creativity is fostered in organizational cultures that value
independent thinking, risk taking, and learning. They are tolerant of
failure and they value diversity.
INNOVATION:
The central meaning of innovation thus relates to renewal.
Innovation can therefore be seen as the process that renews
something that exists and not, as is commonly assumed, the
introduction of something new.
The other way, Innovation can be seen as a change in the thought
process for doing something, or the useful application of new
inventions or discoveries. Innovation could be either way.
1. The introduction of a new good - that is one with which
consumers are not yet familiar - or of a new quality of a good.
2. The introduction of a new method of production, which need by
no means be founded upon a discovery scientifically new, and
can also exist in a new way of handling a commodity
commercially.
3. The opening of a new market that is a market into which the
particular branch of manufacture of the region in question has
not previously entered, whether or not this market has existedbefore.
4. The conquest of a new source of supply of raw materials or
half-manufactured goods, again irrespective of whether this
source already exists or whether it has first to be created.
5. The carrying out of the new organization of any industry.
"QUALITIES OF AN INNOVATOR"
These days, the "innovation thing" is something of a no-brainer.
Indeed, it seems that any company worth its low-salt lunch hasidentified innovation as a core competency worth developing.
It follows as
Curious. . . . . . . . . . . . . . . Actively explores the environment,
investigates new possibilities, and honors
the sense of awe and wonder.
Self-motivated . . . . . . . Responds to deep inner needs, proactively
initiates new projects, intrinsically rewarded
for efforts.
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There is nothing too difficult to be
accomplished when done
carefully with unflinching
endeavour.
-Thiruvalluvar
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Visionary. . . . . . . Highly imaginative, maintains a future
orientation, thinks in mental pictures.
Takes risks. . . . . . . It goes beyond the comfort zone,
experimental and non- conforming,courageously willing to "fail."
Playful/humorous. . . . Appreciates incongruities and surprise,
able to appear foolish and child-like, laughs
easily and often.
Self-accepting. . . . . . . Withholds compulsive criticism of their own
ideas, understands "perfection is the
enemy of the good," unattached to "looking
good" in the eyes of others.
Flexible/adaptive. . . . Open to serendipity and change, able to
adjust "game plan" as needed, entertains
multiple ideas and solutions.
Committed to learning. . Continually seeks knowledge, synthesizes
new input quickly, and balances information
gathering and action.
Persevering. . . . . . . Its hardworking and persistent, champions'
new ideas with tenacity, committed to
follow-through and bottom-line results.
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Be the Change you wish to see
in this world
-Mahatma Gandhiji.
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PERCEPTION:
If we feel the person is talking too fast not fluently or does not
articulate clearly, we may dismiss the person. Our preconceived
attitudes affect our ability to listen. We listen uncritically to personsof high status and dismiss those of low status.
MENTAL STATE:
People don't see things the same way when under stress. What we
see and believe at a given moment is influenced by our
psychological frames of references-beliefs, values, knowledge,
experiences and goals.
These barriers are filters that we use to decide what is useful for
us. No one can completely avoid these filters. If you start taking
every information and message you get seriously, you would be
overloaded with information. But if you are not consciously aware
of this filtering process, you may lose a lot of valuable information.
A way to overcome these filters when you want is through active
listening and feedback.
20
Theres a way to do better....
find it.
-Thomas Edison
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To really succeed at presenting and build up effective presentation
skills, there are several key areas to focus on. And once mastered
these skills, everyone will be able to create a presentation with aclear message and deliver it with confidence.
These key skills areas are:-
Planning and writing the presentation
Using visual aids effectively
Overcoming presentation nerves
Delivering the presentation confidently
Answering questions competently
SKILLS FOR PLANNING & WRITING THE PRESENTATION
Planning the presentation involves much of the work that one is
going to do before the actual delivery of presentation. This is a very
important area and it's also one that many people should consider
improving their skills in.
A key part of this planning is to research the presentation audience,
if the audiences are known, there are chances to get understand
them and mean what their preconceptions might be.
One also needs to get to grips with the purpose of the presentation
- so that it is very clear about what they are trying to achieve from
it.
Then it's down brainstorming what are actually going to say and
then structuring this into "digestible" portions within the beginning,
middle and end.
Presentation Skills
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Just as a cautious businessman
avoids investing all his capital in
one concern, so wisdom would
probably caution us also not to
anticipate all our happiness
from one quarter alone.
-Sigmund Freud
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If you take time to 'warm up' into it you may well 'lose' your
audience even before you've got to your key message.
Building rapport with the audience is an essential ingredient in
making a good impact. The more confident you feel, the easier it isto connect with your audience.
There are many ways you can generate this confidence by
developing your delivery skills - the way you use your voice, body
language and space so that you fully engage with your audience
from the beginning right until the end of the presentation.
SPEAKING CONFIDENTLY:
Speaking confidently is one of key areas that you need to look at in
order that you get your message across clearly. It's important to
speak at the correct pace and not to rush, so you have to think
about speaking a little more slowly than usual.
It's also important to speak clearly - so that you don't insult your
words together - as this will make you sound hesitant.
So, by speaking at the correct pace and pronouncing your words
clearly - especially the ends of words, you will sound more
confident and convincing to your audience.
SOUNDING INTERESTING:
The ability to sound interesting is also really important because,
although you might be passionate about what you are saying, if this
doesn't come across well to your audience, then they won't be
convinced.
To sound interesting and enthusiastic you need to use more
expression in your tone of voice so that you avoid a monotone
style. You may also emphasize key words which will help to
influence the overall meaning of your messages.
Injecting pauses into your speaking also helps to create an impact
as well as helping you to control your speed so that you don't race
ahead too quickly making it hard for the audience to follow.
You can use all these techniques to help change the tone and
dynamics of your presentation and this will help keep the interest of
your audience throughout your presentation.
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There is no telling how many
miles you will have to run while
chasing a dream.
-Anonymous
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all stick and no carrot. It is recorded that the Great Wall of China
was built by the first emperor Ch`in Shih Huang Di and other
despotic rulers and satraps by mobilizing men through brute force.
Indeed, the brute force achieved the aim but the dynasty perishedbecause the men rose in revolt. Man management, as we
understand today, was lacking. Mass mobilization of manpower, a
quality of the Chinese nation did achieve results but the cost in
terms of life, limb and emotional health was tremendous.
SENSE OF FULFILMENT:
Bread is important but man does not live by bread alone. He has to
have a sense of fulfillment after he has done his day`s work. Above
all, it is the will go a long way in raising his enthusiasm andequipping him to face the change.
In today's comprehensive world the most important and most
difficult job is to manage people. One who is the leader, manager
or mentor must lead, motivate, inspire and encourage them.
Sometimes one will have to hire, fire and discipline or evaluate
them.
"People are our most valuable asset" is a clich which no member
of any senior management team would disagree with. Yet, thereality for many entrepreneurs is that their people remain
under valued
under trained
under utilized
poorly motivated
Consequently perform well below their true capability
The rate of change facing entrepreneurs businesses has never
been greater and they must absorb and manage change at a much
faster rate than in the past. In order to implement a successful
business strategy to face this challenge, entrepreneurs must
ensure that they have the right people capable of delivering the
strategy.
The market place for talented and skilled people is competitive and
expensive. Taking on new staff can be disruptive to existing
employees. Also, it takes time to develop 'cultural awareness' of
33
Time is the scarcest resource;
and unless it is managed,
nothing else can be managed.
-Peter F. Drucker
The Great wall of China
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product/ process/ organization knowledge and experience for new
staff members.
The human nature can be very simple, yet very complex too. An
understanding and appreciation of this is a prerequisite to effectiveman management and motivation in the workplace and therefore
effective management and leadership.
There is an old saying: you can take a horse to the water but you
cannot force it to drink; it will drink only if it is thirsty, so do the
people. They will do what they wanted to do. Whether it is to excel
on the workshop floor or in the ivory tower they must be motivated
are driven to it either by themselves or by external stimulus.
34
The clock represents our
commitments, appointments,
schedules, goals and activities -
what we do with and how we
manage our time. The compass
represents our vision, values,
principles, mission, conscience,
direction.
-Stephen Covey
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A LEADER:
There are leaders and there are followers', as the saying goes, and
developing good leadership skills can create the distinction
between the two. Many people believe a strong leader is born and
not made. This is not necessarily the case.
As with anything, educating to encourage make a great leader or a
person with superb leadership skills takes time, energy and
commitment. A leader is a person who has strong principles,
courage and dedication to a clear vision.
People follow a great leader because he is representative of the
beliefs of a group. This person is often a well-principled individual
who is focused on a common goal and eliminates excess fear and
doubt. The followers of the leader often provide the necessary
support for the team to advance and succeed in achieving their
goals. An individual with good leadership skills will recognize and
reward the team for the greater cause.
WHAT ARE LEADERSHIP SKILLS?
These skills are different than those required to be a manager.
Leadership and management are not the same. To be a leader,one needs an exclusive set of human relations and interpersonal
skills.
To influence one needs a number of component skills. Some are
fairly easy to develop others take a long time to protect. To get from
A to B one can choose many different ways. For example:
One can ride a bicycle or ride a plane. One is easy to learn but not
so fast. The other is fast but not easy to learn.
Leadership Skills
13
35
When you realize how perfect
everything, you will tilt your
head back and laugh at the sky.
-Buddha
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A team comprises a group of people linked in a common purpose.
Teams are especially appropriate for conducting tasks that are high
in complexity and have many interdependent subtasks.
Team building is pursued via a variety of practices and can range
from simple bonding exercises to complex simulations and multi-
day team building retreats designed to develop a team (including
group assessment and group-dynamic games) usually falling
somewhere in between.
It generally sits within the theory and practice of organizational
development, but can also be applied to sports teams, school
groups, and other contexts.
Team building is not to be confused with "team recreation" that
consists of activities for teams that are strictly recreational.
Team building is an important factor in any environment, its focus
is to specialize in bringing out the best in a team to ensure self
development, positive communication, leadership skills and the
ability to work closely together as a team to problem solve.
REASONS FOR TEAM BUILDING:
Improving communication
Making the workplace more enjoyable
Motivating a team
Getting to know each other
Getting everyone "onto the same page", including goal setting
Teaching the team self-regulation strategies
Team Building
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38
One of the secrets of success:
do not be discouraged by
failure.
-Anonymous
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Resource management is the efficient and effective deployment for
an organization's resources when they are needed. Such
resources may include financial resources, inventory, human skills,production resources, or information technology (IT). In the realm
of project management, processes, techniques and philosophies
are the best approach for allocating resources appropriately
The process of using resources in the most effective and efficient
way is very significant task. These resources can include tangible
resources such as goods and equipment, financial resources and
manpower resources such as employees and officials. Resource
management can include ideas such as making sure one has
enough physical resources for one's business, but not anoverabundance so that products won't get used or making sure that
people are assigned to tasks that will keep them busy and not have
too much downtime.
RESOURCING AND RESOURCE MOBILISATION:
Resourcing means assigning actual resources (a rather cold
expression which normally means people) to the project.
There are two very different aspects to this:
Deciding which resources to apply to which work items in the
project plan and
Actually getting the resources to work for the project.
RESOURCE PLANNING AND SCHEDULING:
The allocation of resources to the project plan is part of the overall
process of planning, estimating and resourcing the project. Each
time the plan is reviewed and revised, resourcing will be
addressed.
Resource Management
15
41
It takes 20 years to build a
reputation and five minutes to
ruin it. If you think about that,
youll do things differently.
-Warren Buffett
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MOBILISING RESOURCES:
Getting the resources requires very different Project Management
skills. Just because one put something in the plan and get it agreed
does not mean that it will happen.
It usually takes strong support from the Project Sponsor and
constant
attention from the Project Manager to make sure the participants
are released to work on the project as agreed. These resourcesusually have enough work to keep them busy full time in their
normal line departments.
One has to convince them and their managers that it really is
essential to make them available - even though it causes pain in
their own departments. Getting the right level of input is particularly
difficult where resources are only planned to be working part time
on the project. Try to get them physically away from their line job
and working from the project team's own accommodation
otherwise they will constantly be diverted back to their regular job.
43
Here is a summary of the overall process...
What do we
need to do?
Which skills orCapabilities will that require
How can we rationalize the skillsrequirements into defined roles
How much of each type ofcapability is required?
How do we assign actual resources to fillthose roles in an optimum way?
How impact has the actual allocation hadon the plan and estimates?
Which people might we obtain tomeet those goals?
RESOUR ING
ESTIM TING
PL NNING
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not meet for a while, appearing to let the project fall by the wayside.
But people will still be thinking or have ideas occurred to them in
the shower or write down thoughts on cocktail napkins, etc.
3. ILLUMINATION:
Without warning, ideas or innovations can come any time - the
"aha!" or "eureka!" experience. More commonly, there is no
immediate "killer insight," but some new angle that may occur, or
some sudden, burning, unexplainable need to return to work on the
problem - often a sign of creative "labor pains." When the creative
project has been a team effort, sometimes the only thing needed is
to get the original group members together again after a period of
time, and then "pet!" - The spontaneous exchange among them
can bring forth an idea that no one member could articulate alone.
4. EXECUTION:
This is the stage that separates mere creativity from successful
innovation. New ideas require action, stubborn determination, and
ability to build change coalitions while marketing the idea to critical
skeptics. Perhaps more than anything else, it takes courage and
persistence. Since the execution stage is more about social skill
than it is about the technical skill that produces the innovative idea,
this is the stage where organizational management can be mostactively helpful in promoting business creativity.
FIVE BUSINESS PRACTICES THAT CREATE INNOVATIVE
CULTURES:
Entrepreneurs who want to create an innovative business must
understand the steps of the creative process, but that alone is not
enough. To promote business innovation entrepreneurs should
commit to the following business practices and institutionalize them
in the domain.
50
Anyone who stops learning is
old, whether at twenty or eighty.
Anyone who keeps learning
stays young. The greatest thing
in life is to keep your mind
young.
-Henry Ford
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1. SELECT THE MOST PROMISING INNOVATORS BUT
ENCOURAGE UNEXPECTED SURPRISES:
To build innovative "conservatory" in an organization, executives
may want to gather out the most promising ideas and provide themwith extra resources. Those are the people who can benefit most
from the "buffer zones" in step two. But the other practices listed in
this section should be generalized throughout the organization, if
possible, so that innovators in unexpected places will have the
room to produce ideas and results.
2. CREATE "BUFFER ZONES" FOR THE MOST INNOVATIVE
PEOPLE:
Here, creating "buffer zones" means building a kind of protective
cushion around creative people or around the innovative teams,
within an organization. That means eliminating the ways that
policies or other work pressures get in the way or discourage the
information gathering involved in the preparation stage. It also
means being sure that the tools and resources are available when
creative people go looking around for data or answers to questions.
3. GIVE INNOVATORS ROOM TO "PLAY:"
For innovators, anything they can do to mess around with the kinds
of data or projects that they see as helpful - will be helpful.
But during the incubation stage, activities that may look like useless
diversions - that may not even look like work - are all necessary to
allow the deeper parts of the brain to solve a problem and make
new connection. The key to letting people have room to "play" is to
refrain from judgment of their activities or methods.
4. RESIST THE TEMPTATION TO LOOK FOR IMMEDIATE
RESULTS:
Any team can develop incremental solutions or recommendations.
There is no business or technological process that cannot be
improved through study and modification. But to build a culture that
truly encourages innovation, the pressure to get immediate results
will yield only incremental improvements and the need to meet
deadlines can sometimes kill the creative process before the
illumination stage.
While it is true that deadlines can focus creative teams and
encourage timely ultimate illumination, setting deadlines should not
51
Never tell people what to do,
and they will surprise you with
their ingenuity.
-General George S. Patton
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Business ideas are all around you. They are being in your garage,
in your basement, in your kitchen and in your children's room. You'll
find them in magazine ads, at your neighbor's house and at work.They are right there in the vegetables you brought in from the yard
. . . in the stack of papers next to your laser printer . . . in the back
of your truck . . . and at the back of your mind.
A business idea is a concept which can be used for commercial
purposes.
It typically centers on a commodity or service that can be sold for
money, according to a unique model.
There are several methods for developing and testing a business
idea. The ability to come up with a business idea can be
transformed into a viable business, where ideas supported by
feasibility and a business plan can then be sold to interested
investors, firms, and interested parties for a lump sum or a
management contract, or as agreed.
Business ideas, if introduced at the right time, when demand for
such service or a product introduced by the idea is expected to
surge, can lead to a very profitable business. Business ideas arealways available through different sources; however, it is the
application applied on these ideas and timing makes all the
difference in failure or success.
A New product idea can come from several sources. They may
come from internal sources, researchers, sales personnel,
engineers, or other organizational personnel. Brainstorming and
incentives or rewards for good ideas are typical intra-firm device for
stimulating the development of products ideas. New product ideas
may also arise from sources outside the firm-customers,
Business Idea Generation
19
53
Once you replace negative
thoughts with positive ones,
youll start having positive
results.
-Anonymous
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competitors, advertising agencies, management consultants and
private research organizations. Asking customers that they want
from producers and organizations have helped many firms to
become successful and to remain competitive.
Direct observation of competitors' products, customers' evaluations
of their product features and the grapevine of suppliers and other
who serve competitors often contributes ideas. Ethical and legal
issues can arise from clandestine activities, yet such activities
sometimes occur. Disassembly and intensive analysis of
competitors' product is common.
Another approach is to use brainstorming in which small groups of
customers toss out new product ideas. Such sessions may last one
or two hours and are largely unstructured and freewheeling.
Leadership keeps the interchange moving and the discussion on
the desired track. Focus group interviewing is a technique similar
to brainstorming. The session is freewheeling, but they often go
beyond ideas generation to include evaluation and discussion of
related issues.
54
Be not afraid of greatness;
some are born great, some
achieve greatness, and others
have greatness thrust upon
them.
-William Shakespeare
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One way to test a business idea is to do a SWOT analysis. A
SWOT analysis is a technique to identify Strengths, Weaknesses,
Opportunities and Threats of enterprises or projects wherebyinternal and external factors are considered.
Rate the strengths, weaknesses, opportunities and threats as very
important or less important; Evaluate your business idea; Decide if
you are going to continue with your business idea.
A SWOT technique can be applied to the functional areas of an
enterprise as well as projects, products and services. For the
purpose of starting a new business, the Strength, Weakness,
Business Idea Identification
20
55
Obstacles are those frightful
things you see when you take
your eyes off your goal.
-Henry Ford
Opportunities
How do you ensure your
weaknesses will not stop
you from opportunities?
How will you fix
weaknesses that can
make threats have a real
impact?
How will you leverage
your strengths to benefit
from opportunities?
How do you use your
strengths to minimize the
impact of threats?
External
Threats
Stre
ngths
W
eaknesses
Internal
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An intact plan for business is useful and very necessary to focus
and get an overall picture of what to do in order to build plenary
enterprise. On top of that, a good business plan is an absolutemust if one wants to convince institutions or individuals to loan
money or invest in their business.
The real value of creating a business plan is not in having the
finished product in hand; rather, the value lies in the process of
researching and thinking about business in a systematic way. The
act of planning facilitates to think things thoroughly, study and
research about the facts and look in to ideas critically. It takes time
now, but avoids costly, perhaps disastrous, mistakes later.
One way to organize business plan is to compose it like an
informative news article, explaining the "who," "what," "when,"
"why, and "how" of the business.
Who are you?
Write about your background and previous experience in your field.
Tell about your notable accomplishments and about your partners
and staff. If your company has been in business for some time now,
then write about your "track record." Explain what your company
has already accomplished and give an idea of how it stands in
relation to competitors in your particular field of business.
What are Your Products or Services?
What are you producing or what are you going to produce? What
are your products or services? What kind of revenue will these
activities be bringing in or what is the expected range of revenue
once the products are launched? Answer these questions giving a
Business Plan - A Case Study
21
58
I think that only daring
speculation can lead us further
and not accumulation of facts.
-Albert Einstein
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BUSINESS CASE STUDY
A case study is a research methodology common in social science.
It is based on an in-depth investigation of a single individual, group,
or event. Case studies may be descriptive or explanatory. The
latter type is used to explore causation in order to find underlying
principles.
A case study - review:
1. General, theoretical knowledge is more valuable than
concrete, practical knowledge.
2. One cannot generalize on the basis of an individual case and,
therefore, the case study cannot contribute to scientific
development.
3. The case study is most useful for generating hypotheses,
whereas other methods are more suitable for hypotheses
testing and theory building.
4. The case study contains a bias toward verification, i.e., a
tendency to confirm the researcher's preconceived notions.
5. It is often difficult to summarize and develop general
propositions and theories on the basis of specific case studies.
60
Great dreams of great dreamers
are always transcended.
-APJ Abdul Kalam
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Market is the group of consumers or organizations that is interested
in the product, has the resource to purchase the product and is
permitted to acquire the product. It includes
Total Population.
Potential Market -
Those in the total population who have interest in acquiring the
product.
Available Market -
Those in the potential market have enough money to buy the
product.
Qualified available market
Those in the available market who legally are permitted to buy the
product
Target Market
The segment of the qualified available market the firm has decided
to serve.
Penetrated Market
Those in the target market who have purchased the product.
Business Market
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61
Hope sees the invisible, feels
the intangible and achieves the
impossible.
-Anonymous
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Marketing strategy is a method of focusing an enterprises energies
and resources on a course of action which can lead to increased
sales and authority of a targeted market.
A marketing strategy combines
PRODUCT DEVELOPMENT,
PROMOTION,
DISTRIBUTION,
PRICING,
RELATIONSHIP MANAGEMENT
and other elements; identifies the firm's marketing goals and
explains how they will be achieved, ideally within a stated
timeframe.
Marketing strategy determines the choice of target Market
Segments, Positioning, Marketing Mix, and Allocation of
Resources. It is most effective when it is an essential component of
overall firm strategy, defining how the organization will successfully
engage Customers, Prospects, and Competitors in the market
arena.
Marketing Strategy
23
63
Always do your best. What you
plant now, you will harvest later.
-Anonymous
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Selling is similar to playing a game. Every game has its own set of
rules and regulations to ensure fairness amongst the players.
Guidelines are also provided to prevent players from breaking therules and playing unfairly.
No matter which industry you are working in, there are rules to
guide each player in a fair and reasonable way.
In order to perform well, there is a need to follow some rules.
Anyone who is unclear of the rules of the selling game will definitely
get eliminated by competitors. In selling, these are some golden
rules to know and master, in order to stay competitive in the long
run.
The rules are:
Practice the proper sales knowledge, techniques, mindset and
skills
Never say no to constant learning and strengthening yourself
in all aspects to stay competitive
Practice what you have learnt and perfect it.
Only this can help become a big winner in a sales game.
Sales techniques that focused on the customer's needs or building
customer relationship are
1. Attention: One has to get the attention of the prospect through
some advertising or prospecting method.
2. Interest: Build their interest by using an emotional appeal such
that it reminds them and stimulate to buy.
Selling Techniques
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64
An entrepreneur tends to bite
off a little more than he can
chew hoping hell quickly learn
how to chew it.
-Ratan Tata
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CUSTOMER SATISFACTION:
In Business, the term customer satisfaction is a measure of how
products and services supplied by a company meet or surpass
customer expectation. It is seen as a key performance indicatorwithin business and is part of the four perspectives of a Balanced
Scorecard.
CUSTOMER DELIGHT:
An effective CRM brings new customers for more. It causes new
customers to come. It takes to out of the realm of being the same
as all the others and places you clearly at the top. It distinguishes
you from the rest. It allows you to sell your product or service for
more money than the competition. It allows you to make more
return on your investment. It allows you to reward your employees.
In this article let us see what different people say to achieve
customer satisfaction and customer delight.
CUSTOMER SATISFACTION - DISTINGUISHED
APPROACH:
1. ENCOURAGE FACE-TO-FACE DEALINGS:
It's important to meet your customers face to face at least once or
even twice. A client finds it easier to relate to and work with
someone they've actually met in person, rather than a voice on the
phone or someone typing into an email or messenger program.
When you do meet them, be calm, confident and above all, take
time to ask them what they need. A potential client spends over half
the meeting doing the talking and well on the way to a sale.
Respond to Messages Promptly & Keep Your Clients Informed.
This goes without saying really. We all know how annoying it is to
wait days for a response to an email or phone call. It might notalways be practical to deal with all customers' queries within the
space of a few hours, but at least email or call them back and let
them know you've received their message and you'll contact them
about it as soon as possible. Even if you're not able to solve a
problem right away, let the customer know you're working on it.
67
Do not say, It is morning, and
dismiss it with a name of
yesterday. See it for the first
time as a newborn child that has
no name.
-Rabindranath Tagore
Yeah maam, youre my customerand Ive a gift for you.
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2. BE FRIENDLY AND APPROACHABLE:
It's very important to be friendly, courteous and to make your
clients feel like you're their friend and you're there to help them out.
There will be times when you want to beat your clients over thehead repeatedly with a blunt object - it happens to all of us. It's vital
that you keep a clear head, respond to your clients' wishes as best
you can and at all times remain polite and courteous.
3. HAVE A CLEARLY-DEFINED CUSTOMER SERVICE
POLICY:
This may not be too important when you're just starting out, but a
clearly defined customer service policy is going to save you a lot of
time and effort in the long run. If a customer has a problem, what
should they do? If and all the first option doesn't work, then what?
Should they contact different people for billing and technical
enquiries? If they're not satisfied with any aspect of your customer
service, who should they tell?
There's nothing more annoying for a client than being passed from
person to person, or not knowing who to turn to. Making sure they
know exactly what to do at each stage of their enquiry should be of
utmost importance. So make sure your customer service policy is
present on your site and anywhere else it may be useful.
4. ATTENTION TO DETAILS (ALSO KNOWN AS 'THE LITTLE
NICETIES'):
Have you ever received a Happy Birthday email or card from a
company you were a client of? Have you ever had a personalised
sign-up confirmation email for a service that you could tell was
typed from scratch? These little niceties can be time consuming
and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all yourcustomers, it's something. It shows you care; it shows there are
real people on the other end of that screen or telephone; and most
importantly, it makes the customer feel welcomed, wanted and
valued
68
There is nothing either good or
bad, but thinking makes it so
-William Shakespeare
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The requirement of fixed assets is related to types of industry. A
manufacturing concern will require more investments in fixed asses
than a trading concern. The working capital needs depend upon
scale of operations. Larger the scale of operations, the higher will
be the needs for working capital. A wrong assessment of financial
needs may jeopardize the survival of a concern.
CHOOSING THE SOURCES OF FUNDS :
A number of sources may be available for raising funds. A concern
may be resort to issue of share capital and debentures. Financial
institutions may be requested to provide long-term funds. The
working capital needs may be met by getting cash credit or
overdraft-facilities from commercial bands. A finance manager has
to be very careful & cautions in approaching different sources.
FINANCIAL ANALYSIS AND INTERPRETATION :
The analysis & interpretation of financial statement is an important
task of a finance manager. He is expected to know about the
profitability, liquidity position, short term and long term financial
position of the concern. For this purpose, a number of rations have
to be calculated. The interpretation of various ratio is also essential
to reach certain conclusions on financial analysis and interpretation
has become an important area of financial management.
1. COST-VOLUME PROFIT ANALYSIS :
This is popularly known as "CVP relationship". For this purpose,
fixed costs, variable costs and semi variable costs have to be
analyzed. Fixed costs are more or less constant for varying sales
volumes. Variable costs vary according to the sales volume. Semi-
variable costs are either fixed or variable in the short term.
Moreover, a firm will have to generate an adequate income to cover
its fixed costs as well. The financial manager has to find out the
breakeven point that is, the point at which the total costs are
matched by total sales or total revenue.
2. WORKING CAPITAL MANAGEMENT :
Working capital refers to that part of firm's capital which is required
for financing short-term or current assets such as cash, receivable
and inventories. It is essential to maintain proper level of these
assets. Finance manager is required to determine the quantum of
such assets.
72
Limitations live only in our
minds. But if we use our
imaginations, our possibilities
become limitless.
-Anonymous
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FAVOURABLE AND UNFAVOURABLE FINANCIAL
LEVERAGE
Financial leverage may be favourable or unfavorable depending
upon whether the earning made by the use of fixed interest ordividend bearing securities exceeds the explicit fixed costs, the firm
has to pay for the employment of such funds or not.
The leverage will be considered to be favorable so long the firm
earns more on the assets purchased with the funds than the fixed
costs of their use. Unfavorable leverage occurs when the firm does
not earn as the funds costs.
SIGNIFICANCE OF FINANCIAL LEVERAGE
Financial leverage helps in deciding the appropriate Capital
Structure. One of the objectives of planning an appropriate Capital
Structure is to maximize the return on equity shareholders funds or
maximize the earning per share.
Financial leverage is double-edged sword.
On one hand, it increases the earning per share and on the other
hand it increases the financial risks. High financial leverage means
high fixed financial cost and high financial risk i.e., as the debt
content in Capital Structure increases, the financial leverageincreases and at the same time the financial risk also increases i.e.,
risk of insolvency increases.
The finance manager is required to trade-off between risk and
return for determining the appropriate amount of debt.
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the pricing decisions of competitors. For example, setting the price
too low may threat a price war that may not be in the best interest
of either side.
Setting the price too high may attract a large number of competitorswho want to share in the profits. And here for new products, the
pricing objective often is either to maximize profit margin or to
maximize quantity (market share). To meet these objectives, skim
pricing and penetration pricing strategies often are employed. Skim
pricing; attempts to "skim the cream" off the top of the market. By
setting, a high price and selling to those customers who are less
price sensitive.
Penetration pricing pursues the objective of quantity maximization
by means of a low price. The pricing objective depends on many
factors including production cost, existence of economies of scale,
barriers to entry, product differentiation and rate of productdiffusion, the firm's resources and the product's anticipated price
elasticity of demand.
78
Planning without action is futile,
action without planning is fatal.
-Anonymous
Economy Penetration
Skimming PremiumHig
h
Low
Low
Pricing Strategies Matrix
High
Price
Quality
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purposes, to help you save for the future, and to keep order in your
finances.
Accounting costs in a business, records the expenses of
production. A deficit in production lets a company know that inorder to be more productive a change may be needed. Most
businesses have an accounting cycle that can chart the
performance of a company. The accounting cycle makes sure the
company records are accurate and the company complies with
state laws and regulations for tax purposes.
A successful company will remain to strict accounting policies. A
proprietor of a company relies on the accounting department for
accurate records, correct balance sheets and performance charts
to share with the stockholders or investors.
All functions of a company are related to the accounting
department in some way. As an accounting professional, there are
many opportunities for work and advancement within a company.
Accounting software has even added more efficiency and ease in
the bookkeeping or payroll departments.
Bookkeeping is the recording of financial transactions.
Transactions include sales, purchases, income and payments byan individual or organization. Book keeping is usually performed by
a bookkeeper. Bookkeeping should not be confused with
accounting. The accounting process is usually performed by an
accountant. The accountant creates reports from the recorded
financial transactions recorded.
DEBITS AND CREDITS:
These are the backbone of any accounting system. Understand
how debits and credits work and you'll understand the whole
system. Every accounting entry in the general ledger contains both
a debit and a credit. Further, all debits must equal all credits. If they
don't, the entry is out of balance. Out-of-balance entries throw your
balance sheet out of balance.
ASSETS AND LIABILITIES;
Balance sheet accounts are the assets and liabilities of a firm.
When we set up your chart of accounts, there will be separate
sections and numbering schemes for the assets and liabilities that
make up the balance sheet.
80
Diligence is the mother of good
luck.
-Benjamin Franklin
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After developing personal and business budgets that can sustain
the company for the time you think it'll take to get to break even,
add at least 50%, suggests Mr. Manohar, a management
consultant who specializes in growth. "That's managing your risk."
That commitment isn't yours alone. You need ongoing buy-in from
family and friends. Make sure your time and money also is spent
on family or a significant other.
Lesson: Don't let a launch cause lifelong regrets.
In the end, many missteps occur because new owners insist on
doing everything themselves. Instead, review what you do best and
try to delegate or outsource the expertise you lack. And when the
inevitable errors do arise, remember the old adage: Learn fromyour mistakes.
Mistake 7: WAITING FOR TIME AND EXCUSE:
Learn to manage your time correctly. Work will always be there
tomorrow. Working 20 hours a day is not bad for as it is your
business you will responsible for everything, but sometimes is very
unhealthy too, though one should be adoptable.
That is time away from your business cannot help you to refocus
and remind you of what you're working for.
Lesson: Time is everything
86
I have no special talents. I am
only passionately curious.
-Albert Einstein
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