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5 Things Every Entrepreneur Should Know

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Entrepreneur

Your Product Should Fill a Need

Perhaps the number one rule of business is that your product or service should fill an existing need. And it should solve a problem in a better way than any existing product currently on the market. Do your research so you know what your competition is, and forge ahead.

42% of product launches don’t succeed because there is no need for the product or service. Can you think of examples of such failures?

  • New Coke – Original Coke didn’t need to be improved so customers boycotted this new version.
  • The Zune – Microsoft tried to compete with Apple iPod and failed to create a product better than what already existed.
  • Google+ – Google attempted its own social media network, but became another example of a service that couldn’t outdo what was already available.
  • Bic for Her – Women don’t need pens specifically designed for them, so this pen flopped.
  • Hammacher Schlemmer’s Night Vision Camcorder – marketed toward children, this product doesn’t solve a practical problem; why do kids need to record things in the dark?

Sometimes a novelty product takes off because, although it’s impractical, it strikes a chord with customers. However, you may not want to take that risk! Your product or service should stand the test of time, and not just end up the gag gift at the next Holiday office party.

Start Early

As soon as you have your idea, get started!

Research your brand or business name the right way to see if they’re already trademarked. Even if it will be a while before you launch, apply for the necessary permits and licenses now. Doing so will give you peace of mind while you secure funding or save your own money, develop a business plan, and work on your brand’s mission statement, slogan, and marketing strategy.

Keep it Simple

Your mission statement should be clear and concise. Everyone in your business should know what they’re working toward, and how to achieve it.

Examples of Mission Statements

A mission statement tells your employees and customers what your brand is all about. It should concisely share your brand values, your company’s actions, and your company’s objectives. It is not what you hope your company will become but, rather, what your company currently is. When drafting your mission statement, start by answering the following questions:

  • Who?
  • What?
  • Why?

Mission statements are usually about three sentences long, and provide direction to your brand and its employees. Keep in mind that your mission statement should include attainable goals for your company, i.e. objectives you’re already working toward. Be sure to include inspirational messaging and personality without being cliche; avoid popular slang that may date your brand or phrases that don’t provide clear direction.

To get your creative juices flowing, here are some examples of mission statements that get the point across.

  • To bring the best personal computing products and support to students, educators, designers, scientists, engineers, businesspersons, and consumers in over 140 countries around the world. – Apple
  • Bring inspiration and innovation to every athlete in the world. – Nike
  • Offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy, and safety. – L’Oreal
  • To strengthen our position in the marketplace by developing high-quality relationships with our supplies and customers and earning a reputation of dependability, innovations, and exceptional performance. – M&M’s
  • Creating loving connections through our blankets. – Minky Mamas
  • We deliver the promise of the digital world to our customers. We make their innovative lifestyles possible.  – Verizon

Examples of Slogans

Can you name the brands responsible for these popular slogans (hint: some are listed above)? Chances are the simple phrases stand out in your mind and immediately make you think of the product or service they represent.

  • Think Different
  • Just Do It
  • Because You’re Worth It
  • Melts in Your Mouth, Not in Your Hands
  • The Breakfast of Champions
  • Can You Hear Me Now?
  • What’s in Your Wallet?
  • The Happiest Place on Earth
  • They’re Grrrrrrreat!
  • Nothing Runs Like a Deer

Slogans are catchy phrases, short and sweet, that are used in a brand’s advertising. We repeatedly see them on packaging and billboards and hear them on commercials. A lasting slogan can be used out of context and still conjure up thoughts of the brand it represents. You want your slogan to potentially offer a promise as well as make a lasting impression on potential customers.

Market Yourself

Marketing your brand can seem overwhelming. Where do you start? How much do you spend? Customers may stumble upon your product or service with an Internet search, but how can they know your brand is reliable? This is where marketing comes in.

Once you know your mission statement, have a slogan, and a brand aesthetic, you have to get to work. Your message needs to not just reach people, but the right people. Social media makes it easier than ever to target your demographic with paid or sponsored content. It’s a less expensive way to analyze your customers’ behavior and engage with them. Your online presence establishes a connection with potential customers, building trust in your brand. Marketing is more than just selling your product or service; it’s telling your story to your customers. It’s an opportunity to further expand upon your mission statement and let your customers know why you started your business in the first place. Through this storytelling, you can share your passion for your product and build your reputation.

Also, it is important to speak the language of your target audience. Be buyer-centric, not seller-centric. If you are a company, for example, that offers power storage solutions for solar users, don’t drone one about your fancy stuff. Most buyers don’t care about the science behind the solution. Instead, talk about the importance of being prepared for natural disasters or illuminating your home renewably, etc.

Sometimes You’ll Fail

As an entrepreneur, sometimes you’re going to fail. There’s no such thing as an “overnight success” in business, so pull up your bootstraps and know that there’s a lot of work ahead.

Tips for Overcoming Failure

  • Plan for failure – regularly analyze your business’s strengths, weaknesses, opportunities, and threats to stay one step ahead.
  • Manage cash flow – get a good forecast of your income and expenses so you can plan for the future.
  • Focus on your customers – keep your customers at the forefront of your business so you have support in leaner times.
  • Reframe failure – sometimes you can take a step back and see failure as a setback rather than a stopping point.
  • Invest in your team – don’t go into business alone if you don’t have to.
  • Invest in your business – be sure your IT systems and software help you work smarter and not harder.

With a clear vision, mission statement, and business plan, you can find yourself on a bumpy, but manageable path to success. Remember that it won’t happen overnight, but even the best ideas take time to catch on.

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The advantages and disadvantages of a SWOT analysis

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The advantages and disadvantages of a SWOT analysis

Small company entrepreneurs must develop benefits that customer’s value and manufacture and provide them in ways that are superior to the competitors. A corporation must identify its present business and operational objectives and goals while considering elements that influence the same to tackle the challenge. Companies participate in systematic brainstorming, which a SWOT analysis can back.

SWOT analysis: What is it?

You might find reading about the SWOT analysis’s components helpful to comprehend it well. The business can utilize this assessment technique to evaluate the elements contributing to the organization’s growth. Although SWOT analysis is a crucial component of strategic planning, many executives underuse it for various reasons.

The importance of a SWOT analysis

Business executives are forced to pause their current activities and evaluate the organization’s direction through the SWOT Analysis. It is the distinct feature of a strategy plan and enables executives to meet with all internal stakeholders to go through the organization’s short- and long-term objectives. Threats and opportunities are where this tool excels.

It might be simple to neglect to consider the company’s growth opportunities throughout the hectic workday and meetings. By going through the SWOT analysis, executives can ensure they don’t miss out on any lucrative chances.

The SWOT Analysis tool can address these problems properly since its design is so straightforward.

The SWOT Analysis Process: How to Complete It

•        Choose Who Should Attend:

Leaders will want a variety of viewpoints to develop a SWOT Analysis, but they must prioritize who participates. The group must represent diverse occupations, racial and ethnic groups, and prior professional experiences. However, leaders should watch the group size since it will be difficult to hear everyone out.

•        Pick an assistant:

Someone should assume the position of an impartial facilitator so that the leader may participate in the SWOT analysis. It must most likely be a neutral third party from outside the organization.

•        Defining a clear goal or clear plan:

Despite the possibility that this is not the case, a SWOT Analysis require due to a situation that many businesses are currently confronting. Several conditions may influence the setting and dialogue for the SWOT Analysis.

•        Come up with some ideas:

According to the facilitator, every team member should discuss the company’s advantages. The simplest approach is to use a flipchart to record everyone’s responses. The objective here is to record everyone’s input on paper, not to assess each response or remove duplicates.

•        Eliminate Double-Shots:

Following the collection of all ideas, facilitators should work with the group to merge related ideas and eliminate duplications. The primary concepts and points need to be the only ones on the flipchart at the end of this procedure.

•        Make clear and recognize:

Now is the opportunity to address team members’ concerns with any of the strengths identified. The significance of various concepts may be explored in greater detail, their importance can be discussed, and everyone can agree on why they are included in the list by doing so.

The advantages of SWOT analysis

Anyone who understands your firm can execute a SWOT analysis, one of its key benefits. You may also employ a SWOT analysis when dealing with a difficult scenario in a short time. It implies that you may improve your company without paying a consultant or business adviser from outside.

Focusing on the most significant elements influencing your organization is another benefit of a SWOT analysis. A SWOT analysis can help you:

•        Develop business objectives and plans for accomplishing them by

•        Better understanding of your company

•        Addressing its shortcomings

•        Thwarting its threats

•        Seizing chances using its strengths.

Disadvantages and Drawbacks of SWOT Analysis

Suffer from uncertainty

•             The sensitivity of SWOT analysis to ambiguity is a major drawback. A SWOT analysis results in a lengthy list of the object’s essential strengths, weaknesses, threats, and opportunities. The overall structure, however, does not offer a way to order the items in the list or choose which of the discovered criteria gives more importance.

•             The propensity for a one-dimensional viewpoint stir up is another issue. A factor view as a strength, weakness, opportunity, or danger under the SWOT paradigm. On the other hand, a factor might be both a strength and a defect or just a strength and an opportunity. Threats might sometimes come from options. The SWOT framework does not offer a way to handle overlaps.

Inclination to be judgmental

•        Even if a SWOT analysis does not need technical skills, it is crucial to stress that this framework informs by study and data.

•        Additionally, the use of data may be restricted to account for an individual’s inevitable cognitive or personal bias. When examining something that piques their attention, some people have the propensity to find positive aspects.

•        Another drawback of the SWOT analysis is that it is constructive and carried out without using critical thought, which can result in an inaccurate portrayal of the strengths, weaknesses, opportunities, and threats.

Summary:

The main benefit of SWOT analysis is its capacity to connect an organization’s or a specific component’s internal strengths and weaknesses with its external opportunities and threats. In developing a strategy or scenario analysis, it is a crucial component.

However, applying SWOT analysis has significant drawbacks because of its propensity to provide unclear and subjective facts or information. Because it does not explain the implications of the discovered strengths, weaknesses, opportunities, and threats, this evaluation method cannot be employed independently. It is crucial to remember that a SWOT analysis is not a simple strategic process.

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10 Important Benefits of Saving Money

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10 Important Benefits of Saving Money

Your life will be better if you save money. You know that saving money can be challenging, particularly if you have developed unhealthy habits. Many people spend over their means because they get comfortable with the lifestyle it allows them.

To save money, you must sacrifice other aspects of your life, which is never enjoyable. The benefits of saving money are greater than you probably realize; therefore, it is all worthwhile.

Reasons why to Save Money

Some of the prime reasons for starting to save money right away are as follows:

Financial self-reliance

The ability to manage one’s finances freely is one of the most crucial reasons to save money. It means that you won’t need your paycheck every month to support your existing livelihood.

Major life decisions, including changing jobs, booking a trip, getting married, establishing a business, or even retiring when you want to instead of working but you have to, may be made without stress, when you have enough saving. If you have financial independence, you can make these important life choices without feeling stressed.

Unexpectedly high costs

Every day, you all face unforeseen costs that may arise from a health crisis, automobile difficulty, home maintenance, or even a family event. If you have money saved up, it’ll be easier for you to handle these unexpected expenses.

Having some money set aside as a backup plan for these costs is usually preferable.

Instead of borrowing money from friends or relatives, you should set aside some cash in an emergency fund. Regularly accumulating an emergency fund will help you stick to your budget and keep an eye on your monthly spending.

Going to purchase a house

The important financial decisions a person can make is his own house. But even if you want a mortgage, you still have to put down some money. Only if you have sufficient funds saved up will you be able to pay this.

Purchasing a vehicle or another expensive item

It would help if you had money set up before you could purchase a new automobile or any other pricey item. Saving money allows you to avoid putting in a lot of long hours to pay off the high-interest rates for a new car. It would help you organize your expenses first, then save money.

Unexpected medical needs

Health scares, and other unexpected medical situations happen, whether you like them or not. The best action is to establish an emergency fund designated only for medical expenditures and associated costs. Please verify that you only use that money for life-or-death situations and refrain from using it for anything else.

Preparing for retirement

The day when individuals could only retire at age 60 has long since passed. The goal of the current generation is to put in a few years of effort and accumulate enough cash to bed early and enjoy life. You can guarantee you can retire when you want by setting aside money and creating a nest egg. Decide if you’re going to work or pursue other goals after setting them and working very hard to achieve them.

Planning a trip

Traveling teaches individuals about different cuisines and civilizations while also relieving their distress. Even though the majority of us desire to travel, trips to the US, Australia, or Europe can cost many rupees.

The cost may be even higher if you enjoy staying in five-star hotels or travel frequently. The finest thing you can do is save money to go on a trip.

Investment for your saving plan

According to economists, you ought to put your money to work for you. You may easily fight inflation’s growing expenses by investing in long-term plans, strategies, and schemes. You may increase your interest rate and receive more income on your paycheck by eliminating wasteful spending and setting up a weekly savings plan.

To lead a fulfilling life.

Although it can assist, being orderly won’t always make you happy. Organizing and taking charge of your future and financial concerns means setting away some money to use when necessary because there are so many aspects of your future that you will have no control over. Saving has no downside and only positive outcomes for the future.

You may ensure that your family will be adequately cared for by practicing disciplined saving. When bad things happen, your money may serve as a safety net for your loved ones and aid them in getting through any financial challenges.

Some ways and tips to help you save money

You might attempt the following methods if you are new to saving or find it difficult to stay motivated to save money.

Use credit cards carefully: Credit cards may offer a little reprieve, but their high-interest rates will quickly destroy your money. To keep your savings intact and growing, it’s a good idea to keep your debt to a minimum and limit your credit card usage.

Keep a record of your spending: If you find it challenging to save money regularly, consider recording and maintaining a record of your monthly expenses. It will provide you with a clear picture of where your money is going.

By avoiding certain purchases, you may decide which items are not crucial and work toward saving more money.

Establish a budget for savings: Coming up with a monthly budget is helpful. It allows you to concentrate on what matters, lowers your risk of overspending, and enables you to save as you had intended.

Conclusion

You may escape life’s uncertainties by saving money, giving you a chance to have a fulfilling life. You may navigate over many of life’s humps and crags by setting away money in a systematic way.

In times of need, it can help you and give your family a safety net in case something bad happens.

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Can You Get a Credit Card with High Limit, How & How to Use It?

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Credit Card with High Limit

Depending on your finances’ security, getting a high credit limit on your credit card can be beneficial or harmful. Increasing your credit limit is helpful if you can pay your credit card bill on time every month. It can also raise your credit scores by reducing your credit use ratio. However, if you have a problem with spending, a high credit limit can make it worse.

What Is a Credit Card with a High Limit?

Credit management may be considerably easier if you use a different card just for business expenses. Smaller business owners may still use personal cards, but choosing a business card can frequently result in superior perks including improved expense tracking, higher purchasing limits, and more significant rewards to earn.

Use the appropriate one properly because a business card may be a business’s essential tool. High-limit credit cards’ flexibility and borrowing capacity are sure to appeal to potential cardholders. When comparing cards, it’s important to comprehend what a large credit limit means. You won’t pay interest for borrowing against the credit until the debt is paid in full by the statement’s due date. However, if you want a loan for a period longer than that, you will be responsible for paying interest until the full amount is due.

How Do Credit Limits Work?

The credit limit defines the greatest amount of credit the lender will grant for a credit account, such as a credit card. When buyers buy something with recognition, they can do so immediately, essentially borrowing money from somebody, understanding that they would be reimbursed later. Like any borrowing, credit card plans have consequences for missing payments and frequently have caps on the amount of money that may be given out. The announced dollar amount of a bank loan is comparable to a credit limit. In this respect, it’s somebody’s money” that the borrower is permitted to utilize.

The credit limit is not a set card; rather, it is customized to the specific applicant. Lenders when determining a credit limit consider all the credit history, perceived ability to pay and the potential borrower’s current borrowing behavior.

Credit limitations and available credit, commonly referred to as the full funds, are linked but not the same. While a credit card limit is a set amount that indicates total borrowings, every time a cardholder swipes, available credit is decreased. When a balance on a credit card pays off in full, the amount of credit that is then available rises once again to reach the credit limit.

Having a High Credit Limit: What Does It Mean?

Although most frequently classify any limit over $5,000 as high, limitations can go well into the thousands of dollars. Terminology will differ on what might be called a high limit for a specific card.

However, limitations might also be high or low regarding the card number’s overall financial situation. Credit limits compare among various credit card plans. This method of determining credit limits is crucial since they can be higher than what a person may have available to pay a credit card bill. High credit limits act as a dual-sided cards because of this.

How Do High-Limit Credit Cards Work?

A high-limit credit card offers the holder a sizable amount of monthly credit. The credit usage percentages for this card are the same as for other cards, so the cardholder shouldn’t anticipate borrowing or spending anything close to the entire value of their credit limit. To maintain and improve credit, cardholders should pay no and over 30% of the total credit available across all accounts, ideally between 1% and 10%.

Increasing your credit limit in a number of ways.

Online request submission. 

Many credit card companies let their cardholders submit an online request for credit limit increases. When you log in, look for a request submission option. You should update your income details. A higher income may suggest greater financial security, which issuers may consider when assessing your request.

Make a call to the firm that issued your card. 

When you contact the number on the back of the card, ask a customer service agent if you are suitable for a higher credit limit. The representative could inquire about the basis for your request and whether your income has recently increased.

To find automatic increases, look.

When a cardholder has had it for a long time and has been using it properly, some companies automatically increase their credit limit.

Make a new card request.

If you’ve made prompt payments on previous credit lines in the past and have good credit, your application for a new credit card with a higher amount might be approved. Even if the limit on the new card isn’t higher than the limit on your current card, your overall credit limit increases.

Conclusion

It is understandable why all types of credit card customers consider high credit limits a desirable proposition. A high-limit credit card is a symbol of good financial standing, and obtaining one is a great objective for cardholders who are still building a strong credit history.

Pursuing a high credit limit can still have drawbacks, but it’s more important to comprehend the rules of the credit card you have already so that it can be used wisely and help you build good credit in the future.

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