118070262_662019167747000_1408915490822360467_n

Mapping your future: how to align your household budget with long term financial goals

Al-Dai al-Ajal Syedna Mohammed Burhanuddin (RA) states: “Properly balance your household expenditure. Do not spend more than what you earn. One should create a budget according to his earnings.”

The importance of proper budgeting and prudent spending has been discussed numerous times through the ages by Awliyaullah AS. So how does one actually go about planning their budget wisely and hashing it out with their long term financial goals?

Let’s begin by understanding what a household budget really entails.

A household budget is a plan that outlines how much money a household expects to earn and spend over a certain period of time, typically a month. It helps individuals and families manage their finances by tracking income and expenses, and making informed decisions about how to allocate their resources. The budget includes a list of all sources of income, as well as fixed and variable expenses such as rent, utilities, groceries, transportation, entertainment, and savings.

How much of an impact does a household budget have on the financial security of a family?

A household budget can have a profound impact on the long-term financial security of a family. By creating and sticking to a budget, families can develop healthy financial habits that can last a lifetime. Here are a few ways that a household budget can help improve long-term financial security:

Reducing debt: A budget helps families control their spending and avoid unnecessary debt. It is imperative that you set aside a certain amount each month for the repayment of your Qardan Hasana if your installments are running.

Saving for the future: A budget helps families identify areas where they can cut expenses and allocate those savings towards long-term goals, such as saving for a child’s education. 

Preparing for emergencies: A budget helps families set aside funds for unexpected expenses or emergencies, such as a car repair or medical bill. By having an emergency fund, families can avoid going into debt or having to dip into long-term savings to cover unexpected expenses.

Building financial discipline: By creating and sticking to a budget, families can develop the discipline and skills needed to manage their finances effectively over the long term. This can help them avoid financial mistakes and make informed decisions about their money, leading to greater financial security and peace of mind.

What are long term financial goals?

Long-term financial goals are financial objectives that an individual or family sets for the future, typically spanning several years or even decades. These goals are usually tied to major life events or financial milestones, and require sustained effort and planning to achieve. Here are a few examples of long-term financial goals:

Education: A very common long-term financial goal is to save for a child’s education, such as college or graduate school. 

Homeownership: Buying a home is a major financial goal for many people, and requires long-term planning and saving. 

Starting a business: Starting a business is another long-term financial goal that requires planning and preparation. This might involve developing a business plan, identifying funding sources etc.

Deeni Umoor: Attending Ashara Mubaraka with Huzurala TUS, Ziyaafat, Ziyaarat of Karbala Moalla, and performing Hajj among other umoor also need to be accounted for when apportioning money under different long-term financial goals.

Setting long-term financial goals is helpful for several reasons:

Provides clarity and direction: Long-term financial goals provide a clear sense of direction for an individual or family’s financial future. They help to identify what is important and what needs to be accomplished in order to achieve a desired financial outcome.

Encourages financial discipline: By setting long-term financial goals, individuals are forced to think beyond immediate financial needs or wants and adopt a more disciplined approach to managing their finances. This helps to prioritize spending, avoid unnecessary debt and expenses, and ultimately build wealth over time.

Establishes a plan of action: Setting long-term financial goals requires the development of a plan of action, which can help to identify key steps needed to achieve these goals. This can help individuals to break down large, complex financial goals into smaller, more manageable steps, making them feel more achievable and less daunting.

Provides motivation: Long-term financial goals can provide a sense of motivation and purpose, which can help to maintain focus and commitment towards achieving these goals over time. By establishing clear, measurable goals and tracking progress towards them, individuals can see how their efforts are paying off and feel encouraged to continue working towards their financial goals.

Increases financial security: Achieving long-term financial goals can increase financial security and stability, by building wealth and developing healthy financial habits. This can help individuals and families to weather unexpected expenses, or other financial setbacks, reducing stress and anxiety around finances.

So what are the steps you can take to align your household budget with long term financial goals?

Identify your long-term financial goals: The first step is to identify your long-term financial goals. This will give you a clear idea of what you are working towards and what you need to prioritize in your budget.

Assess your current spending: Take a close look at your current spending to see where your money is going and identify areas where you can cut back. This might involve reducing discretionary expenses such as dining out or entertainment, or finding ways to save on essential expenses.

Create a budget: Once you have a clear sense of your long-term financial goals and your current spending habits, create a budget that allocates your income towards your goals. 

Monitor your progress: Regularly monitor your progress towards your long-term financial goals, and adjust your budget as needed. This might involve making changes to your spending habits or finding ways to increase your income to help you reach your goals more quickly.

Make adjustments as needed: Over time, your long-term financial goals may change or your financial circumstances may shift. It’s important to regularly reassess your goals and make adjustments to your budget as needed to ensure you are staying on track.

Aligning your household budget with your long-term financial goals can be helpful as it provides a roadmap for achieving your goals, helps you prioritize your spending, promotes financial discipline and healthy habits, and provides peace of mind that you’re on the right track.The new FY is nigh! Use the household budgeting tool of Idaarah al-Tijaarat al-Raabehah that can help you by providing a structured approach to managing your finances, making it easier to track your income and expenses, identify areas where you can cut back, and allocate funds towards your financial goals. It can also help you monitor your progress towards your goals and adjust your budget as needed.

13 Tips to Become a Successful Entrepreneur

13 Tips to Become a Successful Entrepreneur

Entrepreneur- a person with the drive, hunger, and willingness to succeed and generate something innovative in the production environment of a country. The role played by an entrepreneur is simplistic and effective as he/she utilizes the available factors of production like land, labour, and capital judiciously to produce a finished good or a service that can be further sold in the market and the cycle of revenue generation can be maintained to a considerable degree. 

Thus a successful entrepreneur is a true beacon of success and vitality in society contributing productively and thereby bringing about immense opportunity for investment encouragement in the economic environment. Following productivity tips must be followed by an entrepreneur to attain success:-

Mastering networking skills

The Entrepreneur must know how to create marketing communication between his organization and the clients who would become the benefactors of the services provided by the organizations. Therefore the entrepreneur must be confident about handling official communication and therefore must be adept at taking unique and motivating marketing decisions that would propel the popularity of the produced goods and services exponentially. 

Importance of business cards

The importance of introductory business cards is at times devalued since it does not rank among the most specific functions for organizational growth. But being the entrepreneur of an organization you should introduce a system of business cards that would make the clients aware of your business prospects and what vision you have for the organization. Similarly, business cards also act as an introductory mechanism to introduce your clients to your business credentials and what you have achieved as an organizational entity. 

Be contagious

You can only survive in these cut-throat days of the competitive environment if you have the capacity and tendency to impact people’s lives. Thus through your speeches and introductory lines, you should be able to make an impact in the lives of other people. Thus you should be contagious so that people are completely unable to ignore you and your presence becomes infectious. 

Communication should be done strategically through the phone

It is important to understand that communication should be maintained properly in an organization since communication is the basis for all organizations and it is an essential element of the organizational procedures operating in the economic environment of a country. Moreover, it has become imperative that mobile communication has accelerated and the importance of mobile communication is imperative in a business environment. Thus mobile phones are to be maintained properly to ensure that the mobile communication module is properly regulated. Therefore the importance of mobile communication strategy is imperative for organizational growth. 

Also Read: Top lessons businesses must learn from COVID 19 to grow post-pandemic

Don’t over-assign importance to money

Yes, the monetary incentive is very important but if you over-assign and over-rely on the monetary incentive you would lose out on the specifics of the organizational growth, and entrepreneurship is personal fulfilment. Thereby to increase productivity you should be involved in a productive relationship where you find the required quantum of enjoyment. Thus you should not over-assign importance to the functioning of the monetary variable in the economy. 

Make the conferences interesting and make your presentation within the time

It is very important to make the presentations on time. The presentations from the true representation of a company’s policies and objectives. Thus you should make your presentations crisp and short. The client’s interested to hear what you have to talk about. 

Have an Impression on someone you meet

This criterion is very important in the growth of the business. You should possess the flair of talking, the confidence level, the negotiating capability, and the relevant sense of responsibility. It helps you create an impression on the client and would thus help you grow productively. 

Improve Leadership skills

Another important criterion is to improve and grow leadership skills. A true leader is someone who can motivate the subordinate, organize the workforce. He is someone who possesses the capability to attach an emotional angle along with the existing sense of professionalism. Whenever a subordinate employee gets a pat on the back. He encourages to work more hard thereby yielding better results. 

Productivity linked scheme

It is very important to assign relevance and importance to the productivity of the entrepreneurship venture. The entrepreneur should possess the acumen to understand the functioning of the processes. It is very important to link productivity with the processes that take place in the enterprise. 

Brush up on public speaking

Public Speaking is very important. Public Speaking means speaking with the client and engaging in an active interaction and communication module. So entrepreneurs must brush up on the capability of public speaking. 

Initiate business processes

Being an entrepreneur you should possess the capacity to initiate a business process. Moreover, an individual should be the initiator and you must encourage your subordinates continuously. 

Think creatively

Creative Thinking is one of the most important aspects of organizational and entrepreneurial Growth. It helps in the generation of ideas and a creative mindset brings about the dynamic initiative in an organization. 

Bring about positivity

Being the leader of an organization, you must be responsible for bringing about positivity and enthusiasm in the work processes. 

Business entrepreneurship ventures and their subsequent growth are highly dependent on how productive an entrepreneur in a business organization is. 

If you are looking for the right solutions for your small or medium business, or even substantial and appropriate advice or mentorship, click here

Also read: 7 Tips for Building A Customer Service Team For Your Business

Psychological Biases that impact the purchase of a product

INNOVATION THE DRIVING FORCE BEHIND BUSINESS GROWTH AND DEVELOPMENT

INNOVATION: THE DRIVING FORCE BEHIND BUSINESS GROWTH AND DEVELOPMENT

Syedna Aali Qadr Mufaddal Saifuddin TUS states: “Ply your trade and business according to the demands of this day and age”

Innovation is one of the most critical drivers of business growth and development. It refers to the introduction of new ideas, methods, products, or processes that create value and generate growth. Innovation can take many forms, including product innovation, process innovation, business model innovation, and organizational innovation. By continuously pushing the boundaries of what is possible and creating new solutions, businesses can remain relevant, competitive, and successful in a rapidly changing market.

Let us walk you through the different forms that innovation takes and what it means for your business.

Product innovation is the development of new products or significant improvements to existing products. It is an essential component of business growth and development as it allows you to offer unique and valuable products to their customers. Product innovation can result in increased sales and market share, as well as higher profit margins. For example: Smartwatches- Combining the functions of a traditional watch with that of a smartphone, such as fitness tracking, messaging, and voice assistants.

Process innovation involves the introduction of new or improved methods of production, distribution, or service delivery. By streamlining processes and reducing costs, businesses can increase efficiency and improve their bottom line. Process innovation can also result in improved customer satisfaction, as businesses are able to provide faster and more reliable services. For example, Automation of manufacturing processes through the use of robotics and artificial intelligence.

Business model innovation refers to the development of new or improved ways of conducting business. This can include changes to the company’s revenue model, distribution channels, or customer engagement strategies. By exploring new business models, you can remain competitive and find new ways to generate growth. For example, Freemium models, such as Spotify and LinkedIn, which offer basic services for free and charge for premium features. 

Organizational innovation involves the introduction of new ways of working and organizing people, processes, and technology. This can include changes to the company’s culture, leadership, and structure. By creating a supportive and innovative environment, businesses can foster creativity and encourage employees to develop new and innovative solutions. For example, Google’s unique organizational culture and focus on innovation has allowed the company to create new and successful products, such as Google Search and Google Maps, and achieve significant growth.

Innovation is not just about developing new products or improving processes. It also requires a willingness to take risks and embrace change. Companies that are innovative are often willing to try new things and experiment with different approaches. They are not afraid of failure and understand that sometimes, even failed experiments can lead to valuable insights and opportunities for growth.

Innovation also requires a strong focus on the customer. Businesses that are innovative understand the needs and wants of their customers and continuously work to meet those needs. They listen to feedback and use it to improve their products and services. This focus on the customer not only results in improved customer satisfaction but also helps companies to identify new opportunities for growth.

In conclusion, innovation is a critical driver of business growth and development. It allows businesses to create unique and valuable products and services, increase efficiency and profitability, and remain competitive in a rapidly changing market. Companies that are innovative are willing to take risks, embrace change, and focus on the customer, and these attributes are key to their success and growth. By continuously pushing the boundaries of what is possible, your business can achieve growth and success, and shape the future of your industries.

Small Business Ideas for 2021

Small Business Ideas for 2021

Business Ideas

The Business environment- a marketplace, which may be virtual or physical where the exchange of goods and services takes place. This holds a monetary transaction being the crux of the transfer and unilateral payment interfaces. The components of a business environment are both internal and external elements. 

Following are some of the innovative business ideas that can be adopted by a business model-

Investment in socially impactful sectors

Investment options should become varied if you are to survive the sea change that 2021 will undergo. Create a varied portfolio for your investment options. It should not stick your funds to one particular sector. It may lead to redundancy of your funds upon the arrival of difficult times. Investors should be aware of the social and economic impacts that a business module may have on the functioning ecosystem of society. 

Usage of solar energy by setting up a production unit

A production unit must be set up to navigate the power surge sources of Solar Energy so that the energy generated can be converted into other forms of energy sources and can thus be used for large scale manufacturing, construction, and industrial activities. A Solar Power Unit or a business organization must be set up which would primarily use Solar powered cells to harness the solar energy, ensure and establish an adequate storage environment, and would also be able to set up a distribution unit which would help in the segregation of the energy resources among the various sectors. 

Create an energy supply control unit of a business model

A business model henceforth would only generate viability and benefit in environmental functioning if it is capable of generating a significant quantum of alternative means of energy. For this process to materialize you would require the creation of an energy supply control unit in each office environment. For example- In an office set-up where more than 100 employees are working, the office space required is large and thus the electricity expenses associated with the office are also huge. To curb the electricity bill the office environment may utilize the energy generated by the energy supply control unit and thus regulate the functioning of the office systems through the use of this alternative source of energy. 

Also Read: Top lessons businesses must learn from COVID 19 to grow post-pandemic

Digital Marketing

With the growing digitization, marketing has become more advanced. Today, we can see new updates on digital marketing in terms of search engine optimization, social media marketing, PPC marketing, content marketing, and more. Digital marketing help business with the maximum reach and traffic to sell their services/product at affordable pricing. 

The building of internet infrastructure

The way the business models have evolved, it is imminent that business structures would become highly dependent on the functioning of the Internet as a proper bandwidth would be responsible for sealing business deals rather than physical interaction with the prospective consumers. Thus a company must be active on the Internet, building a foundational base of software infrastructures that would not only strengthen external business communication but would also develop the internal interaction module among the employees of an organization. 

E-Commerce niche store

A well-maintained E-Commerce niche store must be set up to identify the areas. It help in modifying business aspects and bring growth in the transportation. E-Commerce models utilizes internet applications for the majority of transactions. This would become important for bringing about conceptual growth and diversification of the business module. 

Development of warehouse/inventory management system

One of the most critical functions of new business models would be to develop a viable Inventory Management System. It stores surplus goods and help in rationing them during crisis and shortage. Warehouses should be constructed in each business workspace to encourage this form of management. 

Doorstep delivery system

The threat of the impending virus spread still looming large in the psychological makeup of the individual. It can be critical to establishing a doorstep delivery system. The consumers can order goods and services remotely and would be delivered to the postal address.

Mobile payment interface

Finally, the online payment for goods and services through UPI and Mobile Wallets should be encouraged. It reduces the physical exchange of monetary currency and bring about safety in economic transactions. 

Conclusion

In conclusion, the world of business is expected to undergo rapid changes in 2021. Fasten your seat belts and get ready since it is going to be a bumpy yet exhilarating ride with business models adapting to sustain in the market. 

If you are looking for the right solutions for your small or medium business, or even substantial and appropriate advice or mentorship, click here

Also Read: Major Cybersecurity Mistakes Business Owners Can Avoid

Vital Business Skills for 2021 To Learn

15 Business Review Sites Where Customers Rate You

15 Business Review Sites Where Customers Rate You

Business review

Business enterprises have grown and diversified on a massive scale. Incorporating wholesale changes to the process of evaluating functioning mechanisms and elements to dilute business profiles they can easily be able to produce goods and services and sell them in the appropriate market framework. Business review websites are essentially portals. 

Following are some of the premium business review websites where the customers will be able to rate you-

Google My Business

One of the primary instruments to share business knowledge and where the customers can post independent reviews and feedback comments about the products they used from your business model is beneficial when it comes to determining whether it is appropriate to purchase the product or not. 

Bing Places for Business Review

Bing is one of the most popular search engine models currently present on the Internet and through the function of attaching business search options and review posting mechanism, Bing has become one of the most popular destinations to check business reviews posted by the consumers who have used the designated products and services. 

Facebook Reviews

The application of social media channels has improved tremendously with it being the most desired platform to reach a large customer base and create awareness about the functioning of the required products and services. 

Better Business Reviews

Better Business Reviews (BBR) is the most trusted business review website where individuals navigating their way through the digitally optimized have the opportunity of recommending favorable business environments and how their functioning can be beneficial for the growth of the entrepreneur. 

Amazon Business Reviews

Amazon allows customers to post reviews along with allocating stars on the usage criteria of the product which goes on to indicate what his feedback after the use of the product was. For example- the overall maximum stars allocated for the use of a product or service is 5. The consumer provides either 3,4,5, 1, and 2 stars which are then graded into overall customer satisfaction levels. 

Yellow Pages

Yellow Pages offers the business entity with the option of modifying their webpage content by moderating portfolios, business components and thereby ensuring that adequate modification can take place regarding the overall feedback and monitoring mechanism that is provided on the product. Yellow Pages has gradually shifted its area of operation to the online digital mode. 

Also read: 7 Tips for Building A Customer Service Team For Your Business

Tripadvisor

Another business review website from where you can gain a significant idea about the hotels, price ranges of the hotels, and the subsequent tariff charges attached with it. Through TripAdvisor, you can post reviews after staying in one of the hotels there and you can communicate whether you had a fruitful, productive stay or an unproductive duration of stay. 

Opentable

If you are a registered restaurant business owner you should get yourself registered with OpenTable. It gives you the option of allowing customers to make reservations at your hotel at discounted prices. It enables them to write honest reviews about the food. 

PlanetRate

This web engine allows customers to write reviews about companies and how they function. The reviews mentioned there help customers in identifying which companies would be most beneficial to interact in a business exchange transaction with. 

Glassdoor

Glassdoor allows employees to post honest reviews about the working mechanisms of the company. The user needs to put honest opinions and work ideas about the environment of a company. 

G2

G2 is one of the prime business review posting sites for business conglomerates and enterprises. News and information gathered about how business entities perform important functions. 

Manta

Manta is the prime business review site that deals with small business setups. Customization of a business profile on Manta is feasible thereby moderating business feeds regularly. 

WebMD

WebMD posts medical information to help customers acquire information about medicine companies and business enterprises. It produces and sells medicines in the market or through means of e-commerce. 

FinancesOnline

This website helps in the proper tracking of computer software. The tracking is on the basis of the needs and specifications of the customers. It helps in orienting the business needs of the consumers. 

TrustRadius

It is an online review source that designs for software businesses. The users of this website are verified through their existing Linked In account. 

Conclusion

Business enterprises and their review mechanisms help maintain a climate of unbiasedness and impartiality thereby helping consumers obtain the best quality of services. 

If you are looking for the right solutions for your small or medium business, or even substantial and appropriate advice or mentorship, click here

Also Read: Major Cybersecurity Mistakes Business Owners Can Avoid

Vital Business Skills for 2021 To Learn

Developing strong communication skills and effective negotiation tactics

Developing strong communication skills and effective negotiation tactics

Effective communication and negotiation skills are crucial for success in any profession, whether you’re a business executive or a teacher. Being able to convey your ideas and persuade others to see things from your point of view can help you achieve your goals, build strong relationships, and resolve conflicts.

One of the key components of effective communication is the ability to listen actively. This means paying attention to what the other person is saying, asking clarifying questions, and providing feedback to show that you understand their perspective. Additionally, it’s important to be able to express yourself clearly, using appropriate language and nonverbal cues to convey your message.

In addition to effective communication, effective negotiation skills are also essential for success. This means being able to effectively advocate for your interests while also taking into account the needs and concerns of others. Good negotiation skills involve being able to identify and understand the underlying interests of the people you’re negotiating with, and then finding ways to meet those interests while also achieving your own goals. Additionally, it’s important to be able to manage conflicts and build consensus to reach mutually beneficial agreements.

Active Listening:

  • Understand the Importance of Active Listening: Active listening is a key component of effective communication, as it allows you to understand the other person’s perspective and build trust.
  • Ask Clarifying Questions: When someone is talking to you, ask questions to gain a better understanding of what they’re saying and to show that you’re paying attention.
  • Provide Feedback: Give verbal or nonverbal feedback to show that you understand what the other person is saying.

Clear and Effective Expression:

  • Use Appropriate Language: Choose your words carefully and use confident, assertive language to convey your message effectively.
  • Be aware of nonverbal cues: Pay attention to your body language and use it to reinforce your message.
  • Use gestures: Use gestures to help convey your message and make it more persuasive.

Understanding Underlying Interests:

  • Identify the Other Person’s Interests: Understand what the other person wants and needs to find ways to meet those interests while also achieving your own goals.
  • Find Common Ground: Look for areas of agreement and build on them to reach a mutually beneficial agreement.

Managing Conflicts:

  • Identify the root of the problem: Understand the underlying issues that are causing the conflict.
  • Find areas of compromise: Look for opportunities to compromise and find a solution that meets the needs of both parties.
  • Use creative problem-solving techniques: Use creative problem-solving techniques to find a solution that works for everyone.

Building Relationships:

  • Be respectful: Show respect to others, even when you disagree with them.
  • Be trustworthy and reliable: Build trust by being dependable and following through on your commitments.
  • Practice good overall behaviours: Your overall behaviour , including punctuality and being well-mannered, will also contribute to building strong relationships.

Practice and Improvement:

  • Practice in various situations: Try negotiating in different settings to gain experience and improve your skills.
  • Read books and articles on negotiation: Learn from experts in the field by reading books and articles on negotiation.
  • Attend workshops or take a course: Learn from professionals by attending workshops or taking a course on negotiation.

One example of an organization with strong communication and negotiation skills is Google. Google is known for its effective communication and collaboration within the company, as well as its ability to negotiate with other companies and organizations.

One of the key ways that Google fosters effective communication is through its use of internal communication tools such as Google Docs and Gmail. These tools allow employees to easily share ideas and collaborate on projects in real time, regardless of their physical location. Additionally, Google encourages open communication and fosters a culture of transparency, which helps to build trust and create a sense of community among employees.

Google is also known for its effective negotiation skills. For example, the company has been able to successfully negotiate with various partners and organizations, including government agencies and other tech companies. Google has also been able to successfully negotiate fair and mutually beneficial partnerships with other companies.

Moreover, Google has a reputation for being able to negotiate effectively in the areas of patents, as well as with media companies. This has allowed the company to continue to innovate and expand into new markets.

Overall, Google’s strong communication and negotiation skills have played a major role in the company’s success and its ability to navigate the constantly changing tech industry.

In conclusion, effective communication and negotiation skills are crucial for success in any profession. By actively listening, expressing yourself clearly, understanding the underlying interests of others, managing conflicts, and building relationships, you’ll be able to achieve your goals and build stronger relationships with the people around you. With practice and continuous improvement, you can develop these skills and become a more effective communicator and negotiator. As seen in the example of Google, a company with strong communication and negotiation skills can navigate the constantly changing business landscape and continue to innovate and expand. Therefore, it is important to invest time and effort in developing these skills to improve your chances of success in any field.

Business Incubators Encouraging the Growth of Startup Environment

Business Incubators: Encouraging the Growth of Startup Environment

With Covid 19, the pandemic blues hitting the world over and impacting the business scenario drastically it has become imperative for newer business models to adopt a flexible strategy whereby they can incorporate a work culture that can be accessed remotely without even physically arriving at the office premises thereby reducing the chances of infection contraction drastically. Thus the growth of business startups has accelerated the need to find a suitable business model that can function from a remote surrounding. Business Incubators are the business elements that provide a business model with administrative functioning and advisory services so that the business models can operate efficiently.

Business incubators play an important role in diversifying the business prospects and thereby bring about a change in the organizational culture of a business operation activity. Following are some of the most important resources provisioned by the Business Incubators which help in the growth of the business element or Firm-

Provision of Financial Resources

The primary activity of a business incubator is to create a provision of financial resources. It has a business firm that can tap into in times of depressionary trends and anti-growth tendencies. Business Incubators introduce the business to angel investors and venture capitalists. Both of whom have an adequate supply of funds and are in search of investment prospects. It helps regulate their income but also gain exposure in the business environment. 

For example- Suppose Firm A is a startup venture. It decides on providing online cloud computing services to its clients. For establishing the cloud computing software program, the business would require a huge amount of funds provided by the Business Incubators through their communication with the venture capitalists. Financial Capacity determines the organizational strength of a business firm thereby analyzing its functioning capability. Thus Business Incubators play an important role in this regard. 

Also Read: Why You Shouldn’t Be Afraid Of Starting A Business In Your Twenties

Providing Management Support

The business incubators provide to the business environment is through the creation of management culture. An incubator provides management services in the form of Financial Management. It provides funds for firm audit, assurance, and business analysis, and Human Resource Management. It refers to the process of using human beings for completing complicated tasks of the organization. 

Specialization is required in Human Resource Management. It can function efficiently only if a provision for Organizational Support System is created. An organizational support system can become effective only when there is proper provisioning of adequate human resources. 

The business environment would require knowledge-based support from a group of individuals. They must have expertise in the quality control and marketing department. Their skill sets, knowledge resources, and implementation capability would determine the future course of action for a business model. 

Establishment of Inter-Personal Relationship between Startups and Incubators

A synergy of discipline and commitment is created between the Startups and the Incubators. It results in a fruitful long-term relationship. The business incubators are brought to a close. The contacts established and the relationships formed go a long way in determining a future course of business. They also influence the startups to create avenues of employment in the country where it is operating. 

Conclusion

Business Incubators play a quintessential role in the growth of the startup environment of a country. They bring adequate growth in the prospects of business functioning. By providing support services to the startup bodies it generates job prospects in the economy for freshers, trainees. Moreover, it brushes up their skills, and personnel who possess the capability to generate fresh thoughts and ideas which diversify the business environment and its operational activities. Thus Business Incubators are incredibly important for the growth of a startup environment in the country. 

If you are looking for the right solutions for your small or medium business, or even substantial and appropriate advice or mentorship, click here

Also Read: Top lessons businesses must learn from COVID 19 to grow post-pandemic

6 Digital Marketing Trends To Scale Your Brand in 2021

 

8 highly effective habits for young entrepreneurs

How to successfully pivot your business model in response to market changes

In today’s fast-paced business environment, being able to pivot your business model in response to market changes is essential for success. In this blog post, we will discuss the steps that you can take to successfully pivot your business model, including assessing your current business model, identifying market trends and opportunities, and developing a new strategy that takes advantage of those trends and opportunities. We will also discuss the importance of communication and collaboration in successfully pivoting your business model, as well as the role that technology and data can play in helping you make informed decisions. Whether you’re a startup or an established business, these tips can help you navigate the ever-changing landscape of the marketplace and stay ahead of the competition.

Assess your current business model:

The first step in pivoting your business model is to take a step back and assess your current model. Look at your revenue streams, target market, and value proposition. Identify any pain points or areas where you are not seeing the results you want. This will help you understand what changes need to be made to pivot successfully.

Identify market trends and opportunities:

Once you have a clear understanding of your current business model, it’s time to start looking at market trends and opportunities. This can include researching your competitors, looking at customer feedback, and studying industry reports. Identify areas where there is a gap in the market or where you can add more value to your customers. This will help you understand how you can differentiate yourself and stand out in the marketplace.

Develop a new strategy:

Once you have identified market trends and opportunities, it’s time to develop a new strategy that takes advantage of them. This can include changes to your product or service offerings, new target markets, or changes to your pricing or distribution channels. It’s important to be flexible and open to new ideas.

Communicate and collaborate: 

Pivoting a business model is not something that can be done in isolation. It’s important to communicate and collaborate with your team, partners, and customers. Share your new strategy with them and get their feedback. This will help ensure that everyone is on the same page and working towards the same goal.

Utilize technology and data: 

In today’s fast-paced business environment, technology and data play a crucial role in making informed decisions. Utilize data analytics tools to track and measure your progress, and use technology to automate processes and streamline operations. This will help you make data-driven decisions and pivot your business model more effectively.

Keep an eye on the competition:

It’s important to keep an eye on what your competitors are doing. Not only to know what they are offering but also to know how they are positioning themselves in the market. This will help you identify areas where you can differentiate yourself and stand out in the marketplace. It will also help you be aware of any new trends or shifts in the market that your competitors may be taking advantage of.

Focus on customer needs: 

Ultimately, your business model should be focused on meeting the needs of your customers. Keep them at the center of your pivot strategy. Make sure you understand their pain points and what they are looking for in a product or service. Use this information to develop a new strategy that addresses their needs and provides them with value.

Stay flexible: 

The business environment is constantly changing and you should be ready to adapt as needed. Stay flexible and be prepared to pivot your business model again if necessary. Don’t be afraid to make changes and always be open to new opportunities.

An example of a company that successfully pivoted its business model in response to market changes is Kodak. Kodak was one of the leading manufacturers of film cameras and photographic film in the 20th century. However, as digital cameras and smartphones became more prevalent, Kodak began to see a decline in demand for their products. In response, they pivoted their business model to focus on digital imaging technology and services such as online photo printing and image management software. They also diversified into commercial and packaging printing, as well as licensing their brand and technology to other companies.

Another example is the company Blackberry, which was once a dominant player in the smartphone market. However, with the rise of iPhone and Android devices, they started losing market share. Blackberry pivoted its business model to focus more on enterprise software and services, such as mobile device management and cybersecurity solutions. This pivot helped the company stay relevant in the market and continue to generate revenue.

These are just a few examples of companies that successfully pivoted their business model in response to market changes. The key takeaway is that it’s important to stay aware of market trends, be open to new opportunities and be ready to adapt when necessary to drive growth for your business.

In conclusion, pivoting your business model can be a challenging but necessary step for staying competitive in today’s market. By assessing your current model, identifying market trends and opportunities, developing a new strategy, communicating and collaborating with others, and utilizing technology and data, you can successfully pivot your business model and drive growth for your business. Keep in mind that the process of pivoting is not a one-time event, it’s an ongoing process that needs to be continuously monitored, evaluated and improved.

Questions to help you decide if a late-in-life business is right for you

Questions to help you decide if a late-in-life business is right for you

Business environment thrives on principles like hard work, determination, and motivation to excel, “we have heard this statement repeated quite often in our daily lives” and have thus influenced our decision-making process and our thought-provoking ideas. We have to grow up in an environment where there have been preconceived questions that business is only for those with a handy amount of liquid capital while service is for those risk aversive people who prefer not to dwell deep into the complications of the business environment and prefer to stay afloat by working for a reputed organization and earning their share of the salary which is dependent on their earning expertise and competence level. 

From the above discussion, you might be wondering whether yes, your perception over the business environment and its subsequent functioning is truly lucrative and you might think that all these years you have spent your life following a partially true maxim. 

But if you do not take the risk, you would be having a life full of regret and missed opportunities. Thus before starting a business and getting into the depths of it just analyze the following set of questions which would help you contemplate the importance of the fact that business is for all time and all ages-

What are your objectives for the growth of your Enterprise?

Have a perfect knowledge about the reason why you are starting the business in the first place and have a clear objective and goal along with the requisite planning to fulfill that objective. 

How do you want to correlate your life with your business startup program?

Understand the fact that your life should be resembling your business prospects and objectives. The lessons you learned in life must be reflected in the business proposition you are starting. 

Which essential aspects of your life would you like to keep personal?

Personal and Professional Life should never come together and you must learn to make a difference between the priorities and demands of both these lives. 

Also Read: Top lessons businesses must learn from COVID 19 to grow post-pandemic

Essential Tips for Growing Your Business

How much capital would you possess for starting your business?

Through careful understanding and study, understand the requisite amount of capital that will be necessary for starting the business process that you will be involving yourself in, and understand the demands of the specific business model.  

Which personality characteristics should reflect through your business?

Your business model should be a reflection of your required personality. It should be confident, growth-oriented, and receptive to all the hurdles that you may face in the process. 

Which achievements of your professional career would you like to advertise through your business?

There should be no self pompousness acting in this regard behind your decision making. You will only be able to advertise and propagate your business properly if people are aware of your credentials and your accolades if known to them would instill a sense of confidence in you. 

Are you capable and receptive to suggestions?

You should be aware of your surroundings. You should ask yourself if you are always receptive to advise and what others have to say to you. If you behave Impolitely with them, it spells doom for your future business prospects. 

Are you interested in making people happy, joyful, and satisfied?

As a business firm, your primary aim should be to satisfy the needs of the consumers. Thus their happiness would directly indicate whether your business would have a positive or a negative outcome. 

What kind of customers would you like for your business to cater to?

You must possess an attitude to serve all varieties of customers. It help you understand a variety of problems and issues that you might address through your business decisions. 

Which objectives of your target customers would you like to achieve?

You should have a clear idea about the kind of objectives that your target customers. Else, prospective customers would have and you should work consistently towards fulfilling them. 

Conclusion

Thus if you’re late in the business environment don’t get demotivated. Start vigorously, work hard and sincerely and you are bound to taste success. Well, don’t get bogged down at all. It is true that the business environment is feasible for someone with determination and passion to excel. Moreover, it is a keen understanding capability of the facets or components of business scenarios. It is also true that no time is too late for starting a business. So instead of getting demoralized and non-receptive to such critical decisions at this juncture of your career, you might as well take the risk because you have nothing to lose if you do. 

If you are looking for the right solutions for your small or medium business, or even substantial and appropriate advice or mentorship, click here

Also read: 7 Tips for Building A Customer Service Team For Your Business

 

Beyond the Numbers A Guide to Understanding and Analyzing Key Metrics like ROI, LTV, and Churn Rate

Beyond the Numbers: A Guide to Understanding and Analyzing Key Metrics like ROI, LTV, and Churn Rate

If you’re going to make informed business decisions, you need to look beyond the numbers. Generating leads, marketing to customers, and closing deals is an art. It’s why Google Analytics exists. It’s why we have business intelligence tools in place. For as much as we try to quantify from “this user did this and then it led them here” or “that user got value out of this piece of content,” there’s still a lot of subjectivity involved on the part of how humans translate that into dollars and cents, leads, users, etc. What works for you will likely not work for others.

What are metrics?

Metrics are a measurement of success. Metrics help you understand how your business is performing and what you need to do to make it better.

There are three main types of metrics:

• Business metrics measure the health of your business overall. They can tell you whether or not your company is growing, where it’s growing most quickly, and which areas need more attention.

• User metrics measure how engaged users are with your product or service. These numbers can help you determine whether people are using your product as expected if they’re finding value in it and if they’re likely to come back again soon.

• Financial metrics quantify how much money (and time) has been spent on a project or campaign. Financial metrics can help show where money was well-spent and where it wasn’t—and then guide future decisions about investments in new initiatives or campaigns.

Understanding your operating costs and profit margin

First, let’s talk about how to understand your operating costs.

These are the costs required for you to operate your business on a day-to-day basis. They include things like overhead expenses (rent, utilities, payroll), as well as other costs that you incur to run your company (advertising, marketing materials). Operating expenses are typically listed on an income statement.

Next up: profit margin! Profit margin is simply the amount of money left over after subtracting all of your operating expenses from your total revenue. Profit margin is expressed as a percentage of revenue and can be found on an income statement or balance sheet.

Measuring your ROI

You can’t get the most out of your business without measuring your ROI.

ROI is a ratio that compares the return you get from an investment to the investment itself. It’s calculated by dividing the total revenue generated by a specific action (like a new marketing campaign) by the total cost of that action.

We recommend that all companies track their ROIs because it helps them make smarter decisions and improve their bottom line.

Calculating your LTV

Calculating your LTV (LifeTime Value) is one of the most important metrics you can track in your business. This is the total amount of money that a customer will spend with you over their lifetime, and it’s an indicator of how well your business is performing.

LTV is calculated by multiplying customer acquisition cost, or CAC (the cost it takes to acquire a new customer), by average revenue per user, or ARPU (the average amount of money each customer spends). To calculate your LTV, take the following steps:

  1. Calculate your customer acquisition cost by dividing marketing expenses divided by the number of customers acquired.
  2. Calculate ARPU by taking total sales divided by the number of customers in the same period.
  3. Multiply CAC by ARPU to get LTV

Calculating your conversion rate

Conversion rate is one of the most important metrics in your business. It’s a measure of how many users take a specific action on your website, like signing up for a free trial or making a purchase. If you have a low conversion rate, it means that you’re not doing enough to convert visitors into customers.

To calculate the conversion rate, divide the number of people who took an action by the total number of visitors to your website over a given period. For example, if you have 100 visitors in May and 10 of them sign up for your free trial, then your conversion rate is 10%.

Understanding and calculating churn rate

What is churn rate?

The churn rate is the percentage of customers who leave your business for one reason or another. It’s an important metric to understand because it tells you how well your business is doing at keeping its customers happy and engaged.

Why does it matter?

Every business wants to keep its customers happy and engaged so that those customers will continue using their services and buying from them for as long as possible. If a company has a high churn rate, it means they’re losing a lot of its customers, which can be financially devastating to the company. It may also mean that they’re not doing enough to keep their existing customers happy, which could mean they’re not offering good products or services—or that they’re not offering enough of them.

How do you calculate it?

The churn rate is calculated by taking the total number of customers who left over a given period (usually one month) and dividing it by the total number of customers who were still with you at the beginning of that period (also known as your “base”). So if you have 100 customers at the beginning of the month and 20 leave during that month, your churn rate would be 20/100 or 0.2 or 20%.

Metrics can be your guiding light when it comes to making decisions at your startup. The only way to succeed is to apply the right formula of strategies and get a tangible result. If you can effectively apply key metrics, you will be successful.