4 Oct 2013

Know your Industry

Each Entrepreneur is responsible for his business decisions.For smooth running of an organisation, he should check the below things:
1.    How difficult is a new firm to establish in  your industry?
2.    Which are the competitive products in the target market?
3.    How much strong is your Suppliers and Buyers to negotiate the prices ?
4.    What is the expectation of quality?
5.    Is there an access and availability of Land , Labour and Capital ?
6.    Which firms dominate your local market and why ?
7.    Is there any scope for launching a new product to beat the competitors
8.    Which firm have the Price Leadership and why?

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SWOT and PEST Analysis of a Business

         Strategic business planning involes two types of analysis of an organisation.SWOT analysis check internal factors and PEST analysis identify external factors.

     SWOT Analysis

Strengths –  Find out the existing strengths and competitive advantages of organisation.
 Weaknesses – identify existing weaknesses in functional areas.
Opportunities – Estimate the opportunities and growth potential in the target market.

Threats – Calculate prevailing threats to the business growth.


PEST Analysis 

Political: Identify the impact of local, national and international political conditions.Stability of a government,regulatory framework and taxation are part of political factors.

Economic: Changes in Economic and industry growth rate might affect the company’s future.Some major economic factors are Annual Budget ,Inflation, stability of rupee , Export and import policies and purchasing power of the public.
Social: Social factors include age,sex,education, standard of living, culture etc.These factor determine consumer trends and business environment.

Technological: World is fastly changing with  technology innovation in the field of communication and business process.A company must avoid outdated technology with a focus on research and development.

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Strategic Business Planning

   
    Strategic business planning is a process of restructuring the core strategies in a company.It starts from the vision and mission of an organisation.It evaluate internal and external factors influencing the growth of a firm and make a road map for success.
           Evaluation of current performance is very important in strategic planning. Consultant get the feedback of core management areas and competencies and implement the new strategy for each department.
           Business strategy should be a specific ,consistent and fit with the market environment.It should mobilize and utilize resources to beat the competition. Setting corporate culture and maintaining standards are very important.Professional development and corporate image also possess a major role in strategic business planning.A good business strategy look into the future potential of 10 to 15 years and fuel long term growth.



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What is a business model?

Business Model is considered as the structure of a business, to generate revenue from various sources.Let us look into the core areas of business model.
1.    Every business starts from a business idea.It should be unique and practical to test in the target market.
2.    Industry trends determine the total demand potential revenue in a market.Business model should fulfill the local market needs.
3.    Competitive analysis will help to differentiate your products from others.
4.    Skilled manpower is essential for business success.
5.    Entrepreneur should have adequate working capital and emergency fund to meet regular operations in any situations.
6.    Marketing and sales strategies pave the way for market penetration.
7.    Branding, Promotion and Online presence are essential to succeed in today’s business environment.
8.    A business model contains sales projections for near future and medium term.
9.    Financial projections must be equipped with cash flow, balance sheet and income statement.
 10.Tactical planning for periodic changes in the target market enhances the core business model

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3 Oct 2013

What is a Business Plan?



    An ideal Business Plan is a Comprehensive road map  to reach financial goals.Key Sections ofa Business Plan are the following :


o   Business description, Ownership and Management
o   Vision and Mission
o   Objectives and Key initiatives
o   Opportunities in the potential market
o   Features of products and services
o   Industry overview
o   Industry trends and outlook
o   Competitive advantage
o   Sales and marketing strategies
o   Strategies of Pricing ,Promotion and distribution
o   Financial projections
o   Sales forecast 
 


Business plan offer the clear information for entrepreneurs to make well informed decision.

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