5 Tips on Exit Strategies

1.

Plan your exit when you start the business. Will you sell your company, pass it on to children, or take it public?
2.

Take time to understand how your chosen exit affects business planning. Will family members need to be trained to replace you, for example?
3.

Consider the cost of each strategy—loss of the ability to keep financial information private if you sell or go public, for example.
4.

Be aware that your investors will have their own exit strategies. Be prepared to discuss their desired timetable for exiting your business, how they see it happening and their expected return on investment.
5.

Plan well ahead for a satisfying life when you leave your current business. Consider starting another business, teaching, volunteering—or becoming a philanthropist.

5 Tips on Building a Sound Business Plan

1.

Write a business plan with a complete financial and marketing plan.
2.

Your marketing strategy should be built around your strengths, your competitor's weaknesses and your customers' desires.
3.

Test the reality of your business—know why it will work and how you will make it work. Think your business through step by step.
4.

Allow at least two hours every week for thinking and planning. Do not allow anything to interfere with this time. You run the business. Don't let it run you.
5.

Establish an annual operating plan. Review it and update it monthly with appropriate employees.

Business start-up tips

Starting your own business is one of the most challenging but rewarding experiences you will ever embark on. While there is no way to eliminate all the risks involved, careful planning and research can improve your chances of success.

The following tips will give you an overview of what's involved in starting out on your own, and the issues you will need to address. Written by Business Link

1. Assess your skills

Firstly, do you have all the necessary skills to run a successful business? Being a self-starter goes without saying, but do you have the drive, determination, initiative, motivation and mental and physical energy to start a business? You'll need to be a good communicator and manager, as well as creative, flexible and able to plan and make decisions under pressure.

2. Research the market

It may be your passion or hobby but is it a viable business proposition? Find out all there is to know about your market before taking the huge step of implementing your business idea. Your market research should cover the size of the market, the demand for your products/services, and your likely competitors.

3. Create a winning business plan

A good business plan is pivotal to obtaining finance and will help you to focus on where you want your business to go and how you're going to get there. It should include a description of your business and management team, information on your products/services, revenue projections and financial requirements, and marketing and operational plans.

4. Take advice

Always seek advice, guidance and support in all aspects of your business - from the initial concept and business planning, to ongoing development and beyond. This will also help you to look at your business objectively, which can be difficult when you are so closely involved.

5. Know the law

Make sure you understand the legal intricacies of starting and running a business, including VAT registration, the legal requirements for your type of business (e.g. sole trader, limited company, partnership), partnership contracts, health and safety, and employment law.

6. Identify the best finance options

Once you've calculated how much money you need to start and run your business, it's best to shop around to ensure you find the best finance options available to you. This could be funds from business partners or investors, a bank loan or overdraft, or you may be able to borrow from friends and family. Work out what's best and safest for you.

7. Formulate a sales strategy

Think about the product or service you are selling and how you are going to package and present it. Decide on the most cost effective sales channels to reach your target market personal contact (e.g. direct selling, retail), telesales, direct mail or the internet. Ensure that you build up a profile of who your customers are and what they want.

8. Keep on top of bookkeeping

The paper chase can be incredible when first starting out in business, but it pays to keep on top of it all. Many small business owners end up managing the accounts themselves, especially when first starting out. For this reason it's essential that you find an accountant that you can trust, and who can advise you on the financial aspects of running a business.

9. Recruit the right staff

When you're ready to recruit staff, identify the areas of the business where you'll need help and expertise. Can you afford to employ staff with the relevant experience? Enhance your offering by drawing attention to the breadth of experience an employee will gain working for a start up, as well as opportunities to grow with the company.

10. Find the right location

The decision on where you base your business needs to be carefully considered, taking into account costs, competition and accessibility for staff and clients. Also consider the kind of image you wish to convey with your business premises. Do you need to attract passing trade in a busy area or is it more important to have cheaper or larger premises in a less prominent area?


source :www.teneric.co.uk

Selecting target price

Pricing strategy has made increasing challenge for many companies, because of deregulation, information from the buyer, global competition is tight, slow market growth and opportunities to improve the company’s market position. Price impact on the financial performance of important and influential position in the value of the brand in the minds of customers. Price is also possible to be a representative measure of the quality of products when customers are difficult to evaluate the product compound.
In the process of pricing and selling a product, companies should follow the procedures consisting of six basic steps, namely selecting the target price, determine the demand, the cost estimate, analyze competitors, price and select the method of selecting the end of the price.

The first step is to select the target price, such as survival, the maximum short-term profits, sales volume, market demand, winning in the market, competition, prestige or status quo. The company aims to survive will try to lower the price. Profit is not as big, over the price can cover variable costs and some fixed costs. Target is only for the short term and long-term expected in the company

Profit is the maximum estimate made by the company’s request and cost associated with alternative prices and choose the price that now generate maximum profit, cash flow or return on investment (ROI). This strategy can be done with that request and the cost can be known, but in fact it is estimated that difficult. This strategy ignores the long-term performance, ignoring the effects of variable mixture of marketing, competitor reactions and legal constraints on the price.
Goal-oriented in the volume of sales made by companies set prices in such a way to increase sales volume. Company assume that the volume of sales that will generate higher per unit cost of lower profit and higher long-term and assume that the market is sensitive to price.

Targets in winning market share is done by increasing or maintaining market share without taking into account the fluctuations in sales in the industry. Target winning market share in the company often used for products that reach the adult stage in the life cycle of products.
Target market demand and pricing, which is associated with customer expectations and the purchase of a special situation. Target is often known as the “price to give what the market will”.
Target price competition designed to rival or outdo the price of competitors. The aim is to maintain the perception of good value relative to competitors. Tempo Scan Bodrex set the price so that it can compete with competitors.
Target prestige done with the design consistent with the price of a product that has a high status or prestige. The price was designed with little attention cost structures or competitors.
Targets of the status quo is the target price set to keep the price of existing business in memepertahankan position relative to competitors.

Conducting business with a pleated profit

To benefit many more done by empowering the income and expenses. Because the formula is the income benefits reduced cost. The first step is done with income menggenjot do with aggressive marketing. Revenue is the multiplication of the price with the volume of sales. Various marketing strategies used to increase the volume of sales, from the cost leadership strategy in a holistic strategy to differentiation. Not enough with that strategy, plus more focus, focus on the leadership of both costs and focus extensively on differentiation. Cost leadership strategy in a holistic weight advantages compared to competitors and price differentiation strategies on the benefits of the product, personnel, services, channels and the image compared to competitors.Meanwhile, to reduce costs by making efficiency soundly in all lines. Sometimes even lines on the development of human resources, facilities such as education, training, health benefits and trimmed out. But thus trimming the cost of the development of human resources that the company is dropping, because the effect on the company’s overall revenue. This caused the fall of the business to employees.There are other ways to increase profits, which folded as the Ali bin Abi Talib. “O noble woman, whether you have something that can be eaten by your husband?” Question Ali to his wife, Fatimah . “By Allah I do not have something a bit, however, this money Dirham 6 from the results of wage twist hair. Money will I buy food for Hasan and Husayn “Fatimah responsibility. “O noble woman who, given money to me is Dirham 6″ said Ali. Fatima give Dirham 6 money to Ali bin Abi Talib. After the money is received, Ali outside the house with the intention to buy food for both his sons. Suddenly in the middle of the road he met a man that said “Who would lend to Allah, The Controlling Dzat and surely Allah will fulfill his promise.” Ali eventually approach the person with the money Dirham 6 under a bit of home to buy food for their children. After the money was given Ali, he went home.When Fatima knows her husband to return home without bringing any food, he continued to cry. See his wife crying, Ali directly asked “O noble woman, what you crying?”. “O son of Messenger of Allah uncle, I see you bring home with no food” Fatimah responsibility. “O noble woman, I have Dirham 6 currency debt was to God” said Ali. “If you do, that I agree” said Fatimah.Then Ali bin Abi Talib out trying to place the Messenger of Allah, suddenly in the middle of the road he met a Bedouin who are guided camel. Ali then approached the Bedouin, the Bedouin said “Hasan’s Father, buy this camel.” “I do not have the money to buy your camel and fully that you” said Ali. Bedouin: “I sell a camel is paid by then.” Ali: “If so, how much of this camel you selling?”. Bedouin: “I sell it with the price of Dirham 100.” Ali: “OK, I bought this camel, but only after the payment later if I get the money.”After the Ali bin Abi Talib lead a camel the new purchasing. But not so much by Ali to face a Bedouin others, who asked him “Hasan’s Father, whether you want to sell your camel?”. Ali: “True, I want to sell this camel.” Bedouin: “How much does it cost?”. Ali: “The price of camel is Dirham300.” Bedouin: “OK, I buy your camel with the price.”After the Bedouin to approve the price, he immediately pay Dirham 300 in cash to Ali. After receiving the payment, Ali control of the she-camel to the Bedouin was. Then he returned to his home. Fatimah know when her husband came, he with the smile of love saying, as practices that do every time he welcomed the advent of her husband. Fatimah then asked him “Father of Hasan, what you take today?”. “O daughter of the Prophet Muhammad, I have to buy an animal with a camel with the payment later, Dirham 100. Then I sell the camel with the price of Dirham 300 in cash “replied Ali. “I agree only on what you do, provided that bring death and improvement” said Fatimah.After chatting with Fatimah is enough, he went out again to the right Messenger. At the time he entered the door of the mosque Prophet with a smile and see when Ali is near, he said, “Father Moore, whether you talked to me that, or I give the news to you?”. “You just give the news to me,” replied Ali. The Messenger of Allah said, “Father Moore, whether you already understand, is actually a Bedouin camel to sell it, and both the Bedouin who buy?”. Ali: “Allah and His Messenger know better.” Messenger: “Lucky once you are lucky … … … … … …. Lucky … … … O Ali, you have trust with 6 Dirham God, Allah give you Dirham 300 as a substitute for every Dirham get Dirham 50. The Bedouin are the first Gabriel, while the second is Israfil. ” According to the history of other states that the first person to sell the camel is Gabriel, while the second is Michael.


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