After yesterday posted about the tangible benefits of management information system, we continue with discuss the other advantages of management information systems : intangible benefit of sistem information management
Often the intangible benefits of sistem information management is the critical point in the course of business of a company's wheel. Because it is intangible, the following aspects are often overlooked or not detected.
1. Increased customer satisfaction
Good management information system will speed up the process so that, the time required to serve a customer can be faster.
2. Improved quantity and quality of information
Information is an important component of business today. Who controls the information would act more responsive to changes and trends in the future.
Application of good information system will certainly generate reports compilation of data that is managed by qualified and comprehensive database. This can be achieved for each of the reporting process is executed automatically by computer machines.
3. Improved quality and quantity management decisions
It is inevitable that any decision-making relies heavily on information that supports the policy to be taken. It can only be realized if information systems can provide information that is relevant, accurate, current and can be retrieved at any time
4. Improved quality and responsiveness number of the competitors' condition
Aspects of business intelligence is very important since a long time with a variety of formats and needs. To reach the point of rapid and appropriate response on the dynamics of the competition will require information systems that can collect, analyze and compile the information needed by decision makers in the company.
5. Improved operational efficiency and flexibility
All business owners would want these. The more efficient and flexibly an operational then this indicates the low cost to run it. This can be achieved due to cut the bureaucracy in the company after the implementation of good information systems.
6. Improved quality of internal and external communications
A good information system must be supported by electronic data communication network systems that are reliable as well. With the application of good information systems, each party both inside and outside the company can exchange information more effectively and efficiently.
7. Improved quality of planning
Planning is an essential process for businesses. However, any plan that will be made then of course needed the support of adequate information into practice. If not then the plan may be disoriented and did not reach its target because of mistake information into its base.
8. Improved quality control and supervision.
With the information system is built and maintained properly then any activity within the business environment can be constantly monitored. Monitoring is certainly an impact on improving control over every procedure and activities occurring within the company.
conclusion
management information system is essential for business development. There are many benefits that can be obtained from the business owner application of information systems. To be able to keep compete with competitors will require a good and reliable management information systems. Information system importance in business.
Benefits of Management Information System for Business Development (1)
6:30 PM
business management, small business
Current business era is an era where information flow is very vital role than the flow of goods. As great as any of a businessman and monopolize the flow of goods, it does not mean anything if he does not have accurate, current, easily accessible and controllable in the mastering its distribution.
Therefore it is one of the company assets of modern business is highly valuable information system that has a high response rate and focus on its users from all aspects.
Exactly how much importance and benefit of management information system for a business? Information systems are built well and correctly, among others, can increase productivity, reduce the stock of material production, eliminating activities that do not have the benefit (value added), improve service and customer satisfaction, coordinating every part in the enterprise and improve the quality of management policies.
While in general the benefits of management information systems can be categorized as tangible benefits and intangible benefits.
Tangible benefits
An information system is built and maintained properly will provide tangible benefits could be seen that in fact achieved its movement through the income and expenses incurred by the company.
Indicators of success / benefits that have an impact on revenue enhancement is the increased sales in existing markets and expansion into new markets.
A good information system can be used not only for the storage of electronic data alone but must be able to support the analysis required by management.
So with the support of good information system can be obtained then the information is accurate, reliable, current and easily accessible on the condition of the company's sales.
With the report presented by the rapid and can be accessed at any time that the decisions taken can be faster and precise on the existing market dynamics.
In terms of cost reduction can be done on reducing the amount of factual analysis of the human resources involved in the business, reducing operational costs such as supplies and overhead, the reduction of goods / material in warehouse stock, reduction of maintenance costs and providing equipment that is not too expensive
Examples of reduction of the number of human resources is in the process of recording financial transactions. If previously in the accounting process should be managed by five person with the implementation of the good accounting information system is done by one person enough.
This is due to the Accounting Information System which is integrated so any bookkeeping process can be processed directly from each of the relevant sections without having to go through the process of refilling the data.
Stacking material supply problems during the production is often burden of the company assets, with the implementation of supply chain management module in information systems developed greatly help solve the problem.
With the support of supply chain management then the Stacking stocks of material production can be reduced to a minimum. Where the company simply ordered to suppliers only when the inventory reaches the minimum limit.
Next post: intangible benefits of management information system
Therefore it is one of the company assets of modern business is highly valuable information system that has a high response rate and focus on its users from all aspects.
Exactly how much importance and benefit of management information system for a business? Information systems are built well and correctly, among others, can increase productivity, reduce the stock of material production, eliminating activities that do not have the benefit (value added), improve service and customer satisfaction, coordinating every part in the enterprise and improve the quality of management policies.
While in general the benefits of management information systems can be categorized as tangible benefits and intangible benefits.
Tangible benefits
An information system is built and maintained properly will provide tangible benefits could be seen that in fact achieved its movement through the income and expenses incurred by the company.
Indicators of success / benefits that have an impact on revenue enhancement is the increased sales in existing markets and expansion into new markets.
A good information system can be used not only for the storage of electronic data alone but must be able to support the analysis required by management.
So with the support of good information system can be obtained then the information is accurate, reliable, current and easily accessible on the condition of the company's sales.
With the report presented by the rapid and can be accessed at any time that the decisions taken can be faster and precise on the existing market dynamics.
In terms of cost reduction can be done on reducing the amount of factual analysis of the human resources involved in the business, reducing operational costs such as supplies and overhead, the reduction of goods / material in warehouse stock, reduction of maintenance costs and providing equipment that is not too expensive
Examples of reduction of the number of human resources is in the process of recording financial transactions. If previously in the accounting process should be managed by five person with the implementation of the good accounting information system is done by one person enough.
This is due to the Accounting Information System which is integrated so any bookkeeping process can be processed directly from each of the relevant sections without having to go through the process of refilling the data.
Stacking material supply problems during the production is often burden of the company assets, with the implementation of supply chain management module in information systems developed greatly help solve the problem.
With the support of supply chain management then the Stacking stocks of material production can be reduced to a minimum. Where the company simply ordered to suppliers only when the inventory reaches the minimum limit.
Next post: intangible benefits of management information system
Twitter Account which Should be Followed by a Businessman
7:04 PM
small business
Twitter has become a very popular social media. Used by school children, celebrities, athletes, politicians, cultural, economics and the business, whether it is already established as well as for the newly initiated business. The site is popular because they can obtain information and needs via twitter. Such promotions, discussions or just simply sharing personal information.
In addition, many websites that use twitter account to share current information about the content of the website. While others rely solely on twitter even as the main medium for distributing information - interesting information about its business.
Following several twitter accounts that should be followed by businessmen or those who have just started the business. These accounts share information each day - information about tips, tricks, and various other matters relating to business development. Maybe it can be a source of inspiration when running a business.
@ smallbiztrends
Anita Campbell, contributor of open forum shares advice, tips and tricks of business every day.
@ exectweets
This account has the support of Microsoft, provides a variety of links that lead to well-known articles that discuss the ins and outs of the business of the various layers. Starting from employees to the top management from various countries.
@ HarvardBiz
Presenting tips, business statistics, tricks and links that lead to interesting articles.
@ NYTSmallBiz
This account is designed for small businesses. Created by one of the New York Times contributor.
@ CFOwise
Accounts that are useful for small businesses. Created by an open forum contributor.
@ OPENForum
This account belongs to an open forum. Followed by the business community, because the content of the website is focused on business development issues through the use of internet technology. Every day they share business experiences, tips and tricks. Headline articles in the forum, always distributed via twitter account, so that visitors can look at what the most recent articles and the most preferred.
@ Ramit
This account is the the official account of the author of "I Teach You To Be Rich". This book won achievements as a bestseller book version of the New York Times. Owner of the account focuses on the topic how to change a hobby into something that could make money, it can also be applied to small business units.
@ BeyondThePedway
Provides a variety of success stories video footage obtained from interviews with entrepreneurs and business people.
@ StartupNation
This account is not only share tips and advice business, but they also often provide discounts, coupons and special offers to its followers!
@ Makeuseof
Provides instruction, demonstrations and the links that lead to exciting online software and devices, also software that can help business productivity.
@ McKQuarterly
Provides links that lead to internationally renowned business journal which is very useful for business development. On twitter, they usually present the key words that are discussed in the journal.
In addition, many websites that use twitter account to share current information about the content of the website. While others rely solely on twitter even as the main medium for distributing information - interesting information about its business.
Following several twitter accounts that should be followed by businessmen or those who have just started the business. These accounts share information each day - information about tips, tricks, and various other matters relating to business development. Maybe it can be a source of inspiration when running a business.
@ smallbiztrends
Anita Campbell, contributor of open forum shares advice, tips and tricks of business every day.
@ exectweets
This account has the support of Microsoft, provides a variety of links that lead to well-known articles that discuss the ins and outs of the business of the various layers. Starting from employees to the top management from various countries.
@ HarvardBiz
Presenting tips, business statistics, tricks and links that lead to interesting articles.
@ NYTSmallBiz
This account is designed for small businesses. Created by one of the New York Times contributor.
@ CFOwise
Accounts that are useful for small businesses. Created by an open forum contributor.
@ OPENForum
This account belongs to an open forum. Followed by the business community, because the content of the website is focused on business development issues through the use of internet technology. Every day they share business experiences, tips and tricks. Headline articles in the forum, always distributed via twitter account, so that visitors can look at what the most recent articles and the most preferred.
@ Ramit
This account is the the official account of the author of "I Teach You To Be Rich". This book won achievements as a bestseller book version of the New York Times. Owner of the account focuses on the topic how to change a hobby into something that could make money, it can also be applied to small business units.
@ BeyondThePedway
Provides a variety of success stories video footage obtained from interviews with entrepreneurs and business people.
@ StartupNation
This account is not only share tips and advice business, but they also often provide discounts, coupons and special offers to its followers!
@ Makeuseof
Provides instruction, demonstrations and the links that lead to exciting online software and devices, also software that can help business productivity.
@ McKQuarterly
Provides links that lead to internationally renowned business journal which is very useful for business development. On twitter, they usually present the key words that are discussed in the journal.
Increasing Productivity with Management Information System
6:05 PM
business management
Information within a company can be likened to blood flow in the human body. Information is essential to support the continuity of growth of the company, so there is a reason that the information is necessary for a company. The main problem is that an enterprise's information systems are often too much information that is not useful or meaningful (too much data in the system). Understanding the basic concepts of information is very important in designing an effective information system (effective business system). Setting up the steps or method in providing quality information is the goal in designing the new system.
What is management information system? Management information system is an integrated set of part or entities that interact to accomplish a particulars function, objective or goal. Therefore it is a computer based method that provides information for decisions making on planning, controlling and organizing the operation of the sub-system of the firm and provides a synergistic organization in the process.
Management information system is described as a pyramid building in which the coating consists essentially of information, transaction description, annotation status, and so on. The next layer consists of the sources of information in support of day-to-day management operations. The third layer consists of resource information system to assist planning and tactical decision making for management control. Top layer consists of information resources to support planning and policy formulation by management level.
The part of an information system includes: a hardware which is used for input / output method and storage of information, program used to process information and also to instruct the hand ware part, databases which is the location in the system where all the organization information will be automated and procedures which is a set of documents that describe the structure of that management information system.
There are giant amount of information available for manager and this had therefore meant that managers are increasingly relying on management information technique to access the exploding information. Management information services helps manager to access correct, relevant, and up-to-date information which is the more definite way of making correct decisions. It also helps in automation and incorporation of research and management science techniques in to the general management information technique for example probability theory.
Based on this relevancy, management information method ought to be installed and upgraded in various organizations since today's managers need them to access information for management functions and managerial decision making.
What is management information system? Management information system is an integrated set of part or entities that interact to accomplish a particulars function, objective or goal. Therefore it is a computer based method that provides information for decisions making on planning, controlling and organizing the operation of the sub-system of the firm and provides a synergistic organization in the process.
Management information system is described as a pyramid building in which the coating consists essentially of information, transaction description, annotation status, and so on. The next layer consists of the sources of information in support of day-to-day management operations. The third layer consists of resource information system to assist planning and tactical decision making for management control. Top layer consists of information resources to support planning and policy formulation by management level.
The part of an information system includes: a hardware which is used for input / output method and storage of information, program used to process information and also to instruct the hand ware part, databases which is the location in the system where all the organization information will be automated and procedures which is a set of documents that describe the structure of that management information system.
There are giant amount of information available for manager and this had therefore meant that managers are increasingly relying on management information technique to access the exploding information. Management information services helps manager to access correct, relevant, and up-to-date information which is the more definite way of making correct decisions. It also helps in automation and incorporation of research and management science techniques in to the general management information technique for example probability theory.
Based on this relevancy, management information method ought to be installed and upgraded in various organizations since today's managers need them to access information for management functions and managerial decision making.
Brand Guidelines : The Importance of Company Branding
5:54 PM
branding
A brand is usually associated with the logo, sign, name, or other pics that consumers associate along with your product/ service and corporate identity. But in fact, brand also incorporates other factors, and encompasses those matchless characteristics that distinguish your product, and sets it apart from the competition. Brand also relates to the quality of your product, the way you do business, and the way you are perceived by others. Branding is all about establishing an identity, and becoming recognized for it.
Branding strategy is a key idea in promotion circles, as it is the pivotal springboard that can thrust your business forward. A well-defined and strong company brand will drive sales, build customer loyalty, generate brand value. It also will be the catalyst for business growth, as consumers will be motivated to buy your product / service.
There is no denying the importance of branding including the small business. Business branding is therefore important to any scale business, because it communicates information about your business and product to the market. It will -of course- influence the cost of your product, packaging, promotion and marketing strategies, distribution channels, and more. But all the costs it will pay off if the consumer is familiar with your products as good quality products.
Consumers are always willing to buy products / services they trust and know previously. A well defined brand gives you a competitive advantage in your niche market. It lets you charge more for your product / service, knowing that consumers will stay loyal, and buy it at the higher cost. That is the result of consistent reinforcing of the brand, which allows positive responses from consumers.
Branding also important to attract new customers. When a customer comes to you because of all they have heard about your product and business, then you can be definite that they are serious about purchasing. When you run branding and marketing campaigns, you are basically throwing out a wide net to attract a huge number of customers. From there your branding marketing guys spend time with those leads to find out who is serious. consumers came about due to a branding strategy that effectively communicated the solution the customer was looking for.
Brand design is an effective way to facilitate the growth of your business. When successfully implemented, branding can give you a strategic position in the market, and finally lead to increased profit. This is achieved because of the inflow of new customers, and the continuing support of existing customers. Branding builds brand loyalty and value, attracts new customers, and makes you different from the competitors. These are all key parts in ensuring the continued profitability of your business.
Branding strategy is a key idea in promotion circles, as it is the pivotal springboard that can thrust your business forward. A well-defined and strong company brand will drive sales, build customer loyalty, generate brand value. It also will be the catalyst for business growth, as consumers will be motivated to buy your product / service.
There is no denying the importance of branding including the small business. Business branding is therefore important to any scale business, because it communicates information about your business and product to the market. It will -of course- influence the cost of your product, packaging, promotion and marketing strategies, distribution channels, and more. But all the costs it will pay off if the consumer is familiar with your products as good quality products.
Consumers are always willing to buy products / services they trust and know previously. A well defined brand gives you a competitive advantage in your niche market. It lets you charge more for your product / service, knowing that consumers will stay loyal, and buy it at the higher cost. That is the result of consistent reinforcing of the brand, which allows positive responses from consumers.
Branding also important to attract new customers. When a customer comes to you because of all they have heard about your product and business, then you can be definite that they are serious about purchasing. When you run branding and marketing campaigns, you are basically throwing out a wide net to attract a huge number of customers. From there your branding marketing guys spend time with those leads to find out who is serious. consumers came about due to a branding strategy that effectively communicated the solution the customer was looking for.
Brand design is an effective way to facilitate the growth of your business. When successfully implemented, branding can give you a strategic position in the market, and finally lead to increased profit. This is achieved because of the inflow of new customers, and the continuing support of existing customers. Branding builds brand loyalty and value, attracts new customers, and makes you different from the competitors. These are all key parts in ensuring the continued profitability of your business.
Branding Strategies
5:53 PM
branding
Logo and Brand is a highly influential element in a company. Brand logos serve as an identity that represents the image of a company in the eyes of consumers. Branding is an image. Branding it is not easy, it takes a lot of sacrifice, and therefore branding requires a relatively expensive cost. The payments will be very cheap, if you realize when the future of brand management is far more important, than a little sacrifice for the future that much better. To simplify the process of branding itself, it helps us focus on one direction, namely how to create the impression, and the presumption of good to the audience that we aim at, because it is not easy, and very tiring. As for branding visually, we leave it to the experts. Choose your branding consultant for your internet branding needs wisely and certainly should not be too eager to find the cheapest branding consultants or branding agency, be sure to choose a consultant that is really expert.
What is a branding? Branding is a process that is used by the business owner to utilize marketing strategies to increase their service or product image in order to make it is more readily recollected by the customer. Branding helps the service or product to make a favorable impact on the target customer while the branding concepts help in outlining the guidelines that should be followed during the branding process.
Branding of any service or product ought to follow some constants that help in establishing a brand in the long run. The online branding strategies ought to have the following constants in your branding formula:
Branding ought to be safe
Play safe and do your research in the event you are catering to international audience. In the event you are using symbols in your logo make positive they do not offend the target market in any way or you can chances of shutting your shop before making any sales. Therefore keep the regional and cultural sensibilities in mind in the coursework of the branding process.
Branding ought to be simple
The most popular brands in the world have simple, simple to keep in mind logos. The reason behind this idea is we tend to keep in mind and associate ourselves with simple things and select to ignore complex ideas.
Branding ought to be different
Your brand ought to have individuality, ought to be different. Good brand names ought to stand out from other similar product or service; otherwise the whole idea of branding is lost. Only an individualistic brand makes a mark on the psyche of the target customer and they remembers it when they makes a purchasing decision.
Those are the most important branding ideas which are the basis of all branding processes are brand attributes, brand promise, and brand character. Brand attributes are the features that explain the customer's experience like quality, innovation or customer support. The attributes help the company to deliver the brand promise. A brand promise is a promise or dedication the company makes to its customers. The promise ought to be clearly said and tells about the most important benefit of the product. Brand character is the characteristic the customer experiences when they experience the brand. Thus the essence of the brand is a symbiosis of all.
Personal branding and business branding is very important. But there are so many companies that have not been considered important a branding. They are in a state of deep sleep, or playing with their own world, with competitors underestimating that rapidly growing continuously without them knowing it. And so they are aware when their image is getting worse, outdated, and far behind with their competitors, the company will be in haste or perhaps careless to take shortcuts, while hoping they can be shot over their competitors.
What is a branding? Branding is a process that is used by the business owner to utilize marketing strategies to increase their service or product image in order to make it is more readily recollected by the customer. Branding helps the service or product to make a favorable impact on the target customer while the branding concepts help in outlining the guidelines that should be followed during the branding process.
Branding of any service or product ought to follow some constants that help in establishing a brand in the long run. The online branding strategies ought to have the following constants in your branding formula:
Branding ought to be safe
Play safe and do your research in the event you are catering to international audience. In the event you are using symbols in your logo make positive they do not offend the target market in any way or you can chances of shutting your shop before making any sales. Therefore keep the regional and cultural sensibilities in mind in the coursework of the branding process.
Branding ought to be simple
The most popular brands in the world have simple, simple to keep in mind logos. The reason behind this idea is we tend to keep in mind and associate ourselves with simple things and select to ignore complex ideas.
Branding ought to be different
Your brand ought to have individuality, ought to be different. Good brand names ought to stand out from other similar product or service; otherwise the whole idea of branding is lost. Only an individualistic brand makes a mark on the psyche of the target customer and they remembers it when they makes a purchasing decision.
Those are the most important branding ideas which are the basis of all branding processes are brand attributes, brand promise, and brand character. Brand attributes are the features that explain the customer's experience like quality, innovation or customer support. The attributes help the company to deliver the brand promise. A brand promise is a promise or dedication the company makes to its customers. The promise ought to be clearly said and tells about the most important benefit of the product. Brand character is the characteristic the customer experiences when they experience the brand. Thus the essence of the brand is a symbiosis of all.
Personal branding and business branding is very important. But there are so many companies that have not been considered important a branding. They are in a state of deep sleep, or playing with their own world, with competitors underestimating that rapidly growing continuously without them knowing it. And so they are aware when their image is getting worse, outdated, and far behind with their competitors, the company will be in haste or perhaps careless to take shortcuts, while hoping they can be shot over their competitors.
Online Business Optimization Strategies
7:23 PM
online business
Running an online business gives entrepreneurs an amazing chance to scale and expand their operations. While offline business requires a physical presence like offices, stores or kiosks in every location, an online business can operate virtually by digital actual estate. Expanding is simple, and scaling businesses can be achieved without the necessity for expensive physical locations.
Still there's some major errors that beginner online entrepreneurs tend to make when they scale their businesses. The road to jogging an online business is paved with lots of potholes, from expanding quickly to moving in all the wrong directions. These strategies are designed to take your business to new heights without countless setbacks and help you accomplish worthwhile business optimization.
1. Focus on marketing before you start your business.
Of the major things my clients need and the make-or-break part of any online business is marketing. The net is crowded, and there is no chance to survive without a massive customer or client base that knows how to find you. The world's most profitable companies invested in marketing before they expanded their businesses.
2. Package & sell your information
Informational products are popular, in the net world. From guides on mastering online business to simple how-to sets for learning a brand spanking new skill, informational products make up a large percentage of online sales. In the event you have got skills that would otherwise only be valuable in a service business, think about turning them in to an information product that you can sell online.
3. Whenever feasible, add products to service businesses
Service businesses are a nice short-term model, but as a long-term earning option alone, they are not. It would be an effective use of your time to generate a product to enhance your sales. The main issue with service businesses is the dearth of scalability and long-term earnings potential. By walking a service business, you are fundamentally tying a value to your time and working to that alone.
4. Set a value for your time
You have set up your online business, invested in some manual & paid promotion options, & have began to earn over $100 a day. The only issue is that it is taking 12 hours to do it. There will be times, when jogging an online business, that you will rack up a impressive every day earnings total. Ignore it. Every day totals are misleading & are not an correct metric for judging online business success.
What is much more valuable is the amount of time that goes in to that income. Set a maximum value for your time, & generate an online business that gives you options on where to spend it. Sometimes services might be worthwhile, other times product-based work might be the best solution. Either way, set a maximum cost for an hour of your time, & design a business that lets you earn above it.
5. Stick to the 80/20 Rule.
Pareto's Principle -known as the 80/20 rule- dictates that 80% of your returns, in this case, business profits will come from 20% of your actions. Your aim in jogging an online business is not to do as much as you can, but to accomplish as much as you can. Focus on the ultra-profitable 20% that contributes to
your business, and eliminate as much of the fluff as you possibly can.
Still there's some major errors that beginner online entrepreneurs tend to make when they scale their businesses. The road to jogging an online business is paved with lots of potholes, from expanding quickly to moving in all the wrong directions. These strategies are designed to take your business to new heights without countless setbacks and help you accomplish worthwhile business optimization.
1. Focus on marketing before you start your business.
Of the major things my clients need and the make-or-break part of any online business is marketing. The net is crowded, and there is no chance to survive without a massive customer or client base that knows how to find you. The world's most profitable companies invested in marketing before they expanded their businesses.
2. Package & sell your information
Informational products are popular, in the net world. From guides on mastering online business to simple how-to sets for learning a brand spanking new skill, informational products make up a large percentage of online sales. In the event you have got skills that would otherwise only be valuable in a service business, think about turning them in to an information product that you can sell online.
3. Whenever feasible, add products to service businesses
Service businesses are a nice short-term model, but as a long-term earning option alone, they are not. It would be an effective use of your time to generate a product to enhance your sales. The main issue with service businesses is the dearth of scalability and long-term earnings potential. By walking a service business, you are fundamentally tying a value to your time and working to that alone.
4. Set a value for your time
You have set up your online business, invested in some manual & paid promotion options, & have began to earn over $100 a day. The only issue is that it is taking 12 hours to do it. There will be times, when jogging an online business, that you will rack up a impressive every day earnings total. Ignore it. Every day totals are misleading & are not an correct metric for judging online business success.
What is much more valuable is the amount of time that goes in to that income. Set a maximum value for your time, & generate an online business that gives you options on where to spend it. Sometimes services might be worthwhile, other times product-based work might be the best solution. Either way, set a maximum cost for an hour of your time, & design a business that lets you earn above it.
5. Stick to the 80/20 Rule.
Pareto's Principle -known as the 80/20 rule- dictates that 80% of your returns, in this case, business profits will come from 20% of your actions. Your aim in jogging an online business is not to do as much as you can, but to accomplish as much as you can. Focus on the ultra-profitable 20% that contributes to
your business, and eliminate as much of the fluff as you possibly can.
6 Reasons Why New Businesses More Often to Fail
6:08 PM
small business
A newly established businesses are usually very vulnerable to failure, especially in the first one to three years. In fact, according to the Small Business Association (SBA) as much as 30% of new businesses fail to reach its second year.
While 50% failed to reach its fifth year, and 66% did not succeed until the tenth year in operation. The results of their study also showed only 25% of businesses that managed to survive until more than fifteen years.
Nevertheless, should not be a business failing for granted. With a plan, appropriate funding and flexibility, a business has a greater chance of success. For that reason you should know the six mistakes that can destroy a business.
1. Did not conduct a market research
Suppose you intend to open an ice cream company, all capital is set up and your intention was unanimous. But you can not see the fact that the current rainy season, when people need a warm meal and not the opposite. In addition, with many brands of ice cream out there, your competition becomes increasingly severe.
Mistakes like these that make you lose before competing. You should be able to find what is required by the market, not to force your product into the market. It would be easier to provide something that is needed rather than having to create something new, and forcing people to spend money on it
2. Business plans that are less mature
A solid and realistic plan that is absolutely needed a business. In that plan, you must load a reasonable target, how to achieve these targets, the prediction problem to be facing, and how resolve the problem.
In achieving these targets, you need a lot of research and surveys. The plan must also contain the cost to business and operational strategies and schedules. You must run the entire plan as well. If you try to deviate from the initial plan, for example, increase spending or change the strategy, you can lead to failure. Unless you find a problem that could kill your business, if not, stick to the original plan.
You should also be able to quickly change the decision. If there is a problem looking for a solution soon, if spending swelled immediately downsize. More and more problems would mean higher the potential failure of your business.
3. Do not have access to additional capital
If you've just opened a business and did not go well, much less capital drag and its business was on the verge of death, you are in a position that is not good to seek a loan.
To prevent it happening, from the beginning you have to be realistic, use existing capital to be able to achieve the targets that have been determined so as to make your cash flow continues to flow. Too much thinking about borrowing for capital in opening a business is not a good start.
4. The location is bad, does not exist on the internet and the lack of sales promotion
The location is bad, of course, be a negative factor for businesses, especially those that rely on customers of pedestrians. But, currently there are more important, namely the existence in cyberspace. The existence of your business on the internet and social networking as important as the original location in the real world. That way, customers will find your business quickly so it's easier to get customers really need in your business. The next step is to start serving them.
The existence is similar to a sales pitch. Not only must you be sure these promotions to customers, but also have the right customer. Make sure you do a sales pitch to people who are interested in your business. Make other people not only like your business, but need and want your business is. Thus, you will be forming a line of loyal customers.
5. Be lulled by success
Once you formulate a plan, running a business and get a customer base do not be too satisfied with the results. It may be that it is too early to feel satisfied. Continue to monitor the market situation and find out whether you should change your business plan.
Being in the position most needed to make you have plenty of time to maintain the strategy so that it can remain successful. Do not feel satisfied if you can not change the world.
6. Too fast to expand
If your business has begun to run well and headed towards success, it's time to expand. But, how you expand the business to be the same as building a business from scratch. Do not be hasty and too confident in opening a branch for your business.
Make sure you find the right markets and regions to expand. If you are planning to diversify its products, not to deviate from the initial business lines, or you will be stuck in forming a new business like starting from scratch again.
If a business grows too fast and did not follow some of the above points, such as market research, strategy and business plan is good, then the business can quickly drown.
conclusion:
Although the average new business, usually small and medium businesses, rarely last long does not mean your business will fail just like that. Through planning and flexibility, you can avoid these mistakes over and become part of the 25% that survived more than 15 years in business.
While 50% failed to reach its fifth year, and 66% did not succeed until the tenth year in operation. The results of their study also showed only 25% of businesses that managed to survive until more than fifteen years.
Nevertheless, should not be a business failing for granted. With a plan, appropriate funding and flexibility, a business has a greater chance of success. For that reason you should know the six mistakes that can destroy a business.
1. Did not conduct a market research
Suppose you intend to open an ice cream company, all capital is set up and your intention was unanimous. But you can not see the fact that the current rainy season, when people need a warm meal and not the opposite. In addition, with many brands of ice cream out there, your competition becomes increasingly severe.
Mistakes like these that make you lose before competing. You should be able to find what is required by the market, not to force your product into the market. It would be easier to provide something that is needed rather than having to create something new, and forcing people to spend money on it
2. Business plans that are less mature
A solid and realistic plan that is absolutely needed a business. In that plan, you must load a reasonable target, how to achieve these targets, the prediction problem to be facing, and how resolve the problem.
In achieving these targets, you need a lot of research and surveys. The plan must also contain the cost to business and operational strategies and schedules. You must run the entire plan as well. If you try to deviate from the initial plan, for example, increase spending or change the strategy, you can lead to failure. Unless you find a problem that could kill your business, if not, stick to the original plan.
You should also be able to quickly change the decision. If there is a problem looking for a solution soon, if spending swelled immediately downsize. More and more problems would mean higher the potential failure of your business.
3. Do not have access to additional capital
If you've just opened a business and did not go well, much less capital drag and its business was on the verge of death, you are in a position that is not good to seek a loan.
To prevent it happening, from the beginning you have to be realistic, use existing capital to be able to achieve the targets that have been determined so as to make your cash flow continues to flow. Too much thinking about borrowing for capital in opening a business is not a good start.
4. The location is bad, does not exist on the internet and the lack of sales promotion
The location is bad, of course, be a negative factor for businesses, especially those that rely on customers of pedestrians. But, currently there are more important, namely the existence in cyberspace. The existence of your business on the internet and social networking as important as the original location in the real world. That way, customers will find your business quickly so it's easier to get customers really need in your business. The next step is to start serving them.
The existence is similar to a sales pitch. Not only must you be sure these promotions to customers, but also have the right customer. Make sure you do a sales pitch to people who are interested in your business. Make other people not only like your business, but need and want your business is. Thus, you will be forming a line of loyal customers.
5. Be lulled by success
Once you formulate a plan, running a business and get a customer base do not be too satisfied with the results. It may be that it is too early to feel satisfied. Continue to monitor the market situation and find out whether you should change your business plan.
Being in the position most needed to make you have plenty of time to maintain the strategy so that it can remain successful. Do not feel satisfied if you can not change the world.
6. Too fast to expand
If your business has begun to run well and headed towards success, it's time to expand. But, how you expand the business to be the same as building a business from scratch. Do not be hasty and too confident in opening a branch for your business.
Make sure you find the right markets and regions to expand. If you are planning to diversify its products, not to deviate from the initial business lines, or you will be stuck in forming a new business like starting from scratch again.
If a business grows too fast and did not follow some of the above points, such as market research, strategy and business plan is good, then the business can quickly drown.
conclusion:
Although the average new business, usually small and medium businesses, rarely last long does not mean your business will fail just like that. Through planning and flexibility, you can avoid these mistakes over and become part of the 25% that survived more than 15 years in business.
