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Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Definition: Business Management Skill

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Leadership is back in fashion. Of course, it never truly disappears from the front line of management. But when the Harvard Business Review devotes a whole issue to the subject, it's clear that leadership has passed into the conspicuous phase of its attention cycle. That isn't surprising. The horrendous cases such as Enron, WorldCom, Tyco, Ahold, Hollinger, Parmalat and the Wall Street investment bank scandals that have burst into the headlines plainly share a common factor: either lack of leadership or much too much of the wrong kind.
Identifying wrongness is easier than identifying what constitutes the good in leadership. Creating a rotten, pervasive climate of amoral greed (Enron) is wrong: so is the equally greedy pursuit of headlong, heedless growth by acquisition (WorldCom): so is sustaining unreal growth by tricky accountancy (Ahold): so are common thievery (Parmalat) and its close relative, financing a private lifestyle with public company millions (Tyco and Hollinger). As for the Wall Street financiers who aided, abetted and co-authored the frauds, their leadership was apparently confined to counting its own individual and collective loot.
The obvious negatives do help to establish some of the positives. A good leader, for example, lays down and maintains the basic values of honesty and truthfulness which are vital for good management. But how does the latter differ from good leadership? Everybody knows that good businessmen and women may be bad managers - hence the failures of entrepreneurial businesses that introduce effective management either too late or not at all. But whether a good manager can truly be bad at leading is quite another matter.
BUSINESS, NOT FINANCE
I once asked a revered Japanese CEO, Ryuzaburo Kaku of Canon, how it was that he, having spent his whole career in financial functions, had achieved such a spectacular success at leading the company onwards and upwards to world eminence. He was surprised by the question: he wasn't a finance man, he explained politely - he was a businessman. He showed me (as he showed every visitor, I suspect) an old piece of paper which made his point. As a young finance executive, he had plotted Canon's profits against its new product introductions.
Every time the latter rose, so did profits, after a suitable interval - and vice versa.
On achieving power, Kaku promptly followed the logic of his observation, demanding and getting more new products, and reaping the anticipated golden harvest. His leadership was both good business and excellent management. Astute business people know the key importance of keeping the product or service offer fresh and vibrant. A good manager understands that excellent analysis will tell you where to direct organisational effort in order to obtain the best returns.
Whether you approach from the business or the managerial side, the next stage is the same. Action must follow. Decision without action is no better than indecision - indeed, in one way a whole lot worse, since it involves expending and wasting so much energy. I have previously mentioned a dearly loved editor of whom it was said,

Cleaning Business Plan should Focus on Target Market

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In this age of globalization, not only goods but people too are continuously on the move. A business plan for a cleaning agency should make out its case from this perspective. There has been manifold increase in the number of households where both husband and wife work. This has resulted in more disposable income and less of time for household chores like cleaning and the like. Taking the hectic schedule into account, opening an agency that takes care of residential cleaning makes a lot of sense.
Your business plan for a cleaning agency should talk extensively about the opportunities present in this area. Care should be taken to highlight those aspects that reflect your ability to run the business. Your interest will be best served if the business plan for your company specifically mentions the target audience it has in mind. This, apart from focusing on your enthusiasm and passion for the business, will also enable you to serve your customers better and in a more efficient way. Certain factors must be given due consideration while preparing a proposal for a cleaning business.
Target Audience
This is the most important aspect of your business proposal. Proper identification of your target consumers will free you from sundry distractions. It will allow you to concentrate all your efforts in one direction. There is no room for ambiguity here and the same should be reflected in the company business plan that you prepare.
Your plan should clearly convey your preference. You may choose to cater exclusively to high-income households where working couples may be short of time or motivation to take up the cleaning job. Likewise, you may decide to focus your efforts on middle-income households, bachelor hostels or student lodges. Catering to this segment may result in lower profit margins but there is every chance that a higher volume will more than compensate for the depressed operating margin.
Expenses
List out clearly, what expenses you are likely to entail. A business plan for a cleaning agency should seek to answer questions like - where will the business be located? State whether you own the property or will you be taking it on lease or rent? In case of rent or lease specify the financial and legal terms.
To run a cleaning agency, you will also need to buy disinfectants, chemicals, broom, dusters, mops, and vacuum cleaners among other things. State where you will source it from? The reliability of your suppliers also matters a lot. Specify whether they will extend credit to your business; if yes, then on what terms and conditions? Also, dresses and overalls for the cleaning staff, as well as stickers and logos for your cleaning service vehicles will add to your budget and a provision for the same should find a mention in your business plan.
Making the Sale
This part will deal with how you intend to price your service. An analysis of your competitors and their pricing strategy will help you set a competitive price for your service. However, it should be made compulsory that your pricing should in no way come in the way of efficient services. Training and motivation levels of your staff will also matter a lot in this line of business.
A business plan for a cleaning agency should be able to convince a potential financier that you have the ability to run the business. It is an expanding industry and hence, has immense potential for growth. A well-researched and written plan will convince the investor that you are capable of utilizing this opportunity.


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Criteria For Franchising A Business

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Customized Fat Loss is a nutrition and workout program to help you burn off unwanted body fat and lose weight so you can get that great, healthy and sexy body.



There are a number of criteria a business owner must consider before deciding to franchise his business.

Satisfy an enduring need with suitable reward.
The product or service offered must have long-term market potential. Franchisees will have been advised to look for business opportunities that take advantage of coming trends and avoid those based on passing attractions or fads. Although franchisees may not expect substantial returns on their investment in the first couple of years, they will expect by the end of the initial franchise period to have paid off their bank loan (as will the bank) and to have achieved a reasonable return on their initial investment. The franchisor must ensure that there is sufficient margin in the business for the franchisee to pay on-going fees to the franchisor and to make money for him/herself.

Possess a clear identity.
Potential franchisees will evaluate the clarity and distinctiveness of the franchisor's identity, name and image. They will be looking for an operation that has the potential to develop sales through its brand and reputation.

Display a proven track record.
As with any good investment an investor will need to be able to evaluate the past success of the concept. Potential franchisees, and those from whom they may be borrowing, will want to be assured that the franchise is proven, both financially and operationally.

Possess easily transferable operational methods. Successful franchises are based on operations that do not require a potential franchisee to have any experience of the particular business. Regardless of the franchisee's experience, the methods of conducting the business must be transferable, allowing the franchisee to run it as successfully as the franchisor.

Have capable management to provide adequate support. For the franchisor, franchising means decentralisation, with greater power being handed down to unit level. It also means the franchisor will have to deal with a new type of workforce whose motivation is very different to that of the company's own staff. While franchisees can be highly motivated, they can also be very demanding on the franchisor's staff. As the franchise develops the franchisor will be expected to invest in research and development to ensure that the business methods, products and services continue to meet changing consumer needs. It will also be necessary for the franchisor to provide on-going support to franchisees to assist and encourage them to develop their business and to improve its overall performance. In addition, the franchisor must see to it that the level of support provided is sufficient to ensure that the network as a whole maintains the quality standards set out in the operating manual.


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The 3 Week Diet is a revolutionary new diet system that not only guarantees to help you lose weight — it promises to help you lose more weight — all body fat — faster than anything else you’ve ever tried.