Choosing the right marketing weapon

Rifle or shotgun - which is the better marketing approach? The question leads to a long standing arguments in business.

A shotgun shots a number of small bullets with the hope that at least some of them hit the target. In the same way, 'shotgun marketing' involves reaching as many people as you can, such as mass marketing through TV, Cable, radio and the web without a particular end-target in mind.   

On the other hand, a rifle brings things into focus, takes a careful aim, and then only you pull the trigger. 'Rifle marketing', thus, typically involves selecting target audience based on their demonstrated interest.

So, which weapon you want to choose? Both the approaches have their benefits, but it seems that the rifle approach is the better one for the resource-challenged Small and Medium Enterprises (SMEs).

In today's diverse market, it is not possible for a SME to serve all buyers in the entire market even for specific product or service category. The reason is simple: buyers today are too numerous, too widely spread, with too different needs. Therefore, rather than competing in an entire market, SMEs should identify small parts of the market that they can serve in a more meaningful way.

Historically speaking, the target market approach has never been popular with Indian businesses. They have, over the years, engaged in mass marketing to produce a single product on a mass scale and distribute and promote the product on a mass level. But with the changing scenario of the market, marketers today need a 'rifle approach' to identify different sub-markets, select one or more of them, and put a concentrated effort in them.

Now, the question is how can we segment a market and on what basis. There is no single way to segment a market. It depends on the firm which is marketing its products; it has to find out different segmentation variables and choose the best one to address the specific condition of the target market. Another important point is that the strategy of market segmentation differs depending on whether a business is dealing with consumer market or business market.

Firms dealing with end consumers, usually the following bases are used in segmenting customers: 

• Geography: The market is divided on the basis of location which may be of any level, like urban, hills or plains, climate, etc. The reason behind such segmentation method is  that people who live in the same area usually share some similar needs and wants.
• Demography: In this type of segmentation, bases such as age group, family size, gender, occupation, education, religion, race, social class are considered. With most companies, this is the most preferred method as consumer wants and preferences are, often highly associated with their demographic characteristics.
• Physiography: Consumers do not buy products purely on the demographic variables. Therefore, marketers need to go beyond demographic attributes and engage in psychological segmentation, which involve examining attributes such as personality, and lifestyles of the target customers. A combination of demographic and physiographic segmentation often results great. 
• Behaviour: While using this base, customers are segmented based on their knowledge, attitude towards use of or response to a product. Consumers, in this method, can be segmented as light user, medium user or heavy user, positive, indifferent or negative, etc.    

In addition to the above, a firm can use different segmentation variables like sociocultural variables, use-related characteristics, use-situation factors, benefits sought, etc. for segmenting a market.

Business marketers, can use many of the same variables in segmenting the consumer markets. However, it is important to go for some specific segmentation approaches for business markets, such as:

• Customer type: Business markets can be segmented based on the end users. For example, a small business manufacturing electric motors may have a broad customer base in industries like automobiles, departmental stores, etc. But the firm will do better if it chooses the most potential segments from them and concentrating marketing efforts for customers from those segments. 
• Customer size: Business customer can be divided as per their size of business. For example, a SME selling iron casting products can mark large and reputed companies as major accounts while small customers can be be grouped under minor accounts. According, different strategies and different level of efforts can be put to handle these different groups of customer.
• Type of buying: Also, a firm can divide its business customers based on the type of buying exhibited by its customers. Buying situations differ from customer to customer. Situations like new buy, modified rebuy, and straight rebuy are different from each other in a significant way. A better understanding of these buying situations can help a firm significantly to prepare their strategy more efficiently.    

Thus, a product market for a firm, both dealing with end consumers or business customers, can be divided into various markets or segments. But still after that most small and medium businesses find such segments large enough to serve effectively. In such situation, niche marketing could be a better approach for them to sub-group the market segments further.

Niche marketing is marketing strategy where a marketer targets a smaller sub-segment within a market segment. In other words, this approach is more focussed - marketers tailor their products as per the needs of a small group of customers but, at the same time, they do not customize their offers to each, individual customer.

The niche marketing strategy, which is ideal for a SMEs to survive in a market populated with strong and big industry players, is based on a narrow competitive scope. It means a market niche is chosen where customers have distinct preferences and a competitive advantage can be achieved by optimizing strategy for the target segments. For example, a firm can seek a cost advantage in the target segment or it may look for differentiation in the target segment. 

Whether it is segment marketing or niche marketing, a modern day business enterprise must bring differentiation and focus to stay ahead of competitors at least in some aspects; it must be unique in the industry in one way or another; it must have a focussed area to concentrate. Small players can hardly imagine of changing the rule of the game, so they must play smart with the right marketing weapon.

Beat Competition, Stay Ahead

I have observed that most Small and Medium Enterprises (SMEs) waste their time thinking about what they did last week, month or year when they should instead be thinking about what they need to do tomorrow. My advice for these SMEs would be: instead of spending valuable hours analyzing results, put your energy into developing future market strategies, and in identifying how you can position your business as a market leader. 

I believe that before you decide that you want to be the best in your domain, it is of utmost importance to look into your strategies and ask yourself whether the tactics you are applying are focused on dealing with competitors' actions or not. Unless you do so, your profits and your standing in the market will remain stagnant. 

Cliched though it might seem, and as all management gurus will reiterate, I strongly believe that any business has to satisfy its customers, earn their satisfaction and loyalty, and subsequently achieve the maximum share of its target market on its way to the top. 

However, it is easier said than done. Market capturing process is however not easy since your competitors too will not sit idle as you work on your strategies, just to see you capturing the market. And even if you are able to climb to the No 1 position, the game will continue, which is why your planning needs to continue to maintain the top position. 

To keep one's business ahead of competition, one needs to develop marketing strategies smartly. Certain activities in businesses including competitive pricing, promotional strategies, advertising, quality consciousness, innovation, after-sales service, distribution network and sales force, etc. need to be focused on to beat one's competitors.

Ideally, I have seen several SMEs cutting costs and trimming corners to maximise their gains without even thinking that doing so weakens one's ability to execute and thus eliminates resources to do new things. Smarter companies on the other hand, recognize the opportunity to pounce on customers and take away business during weak market dynamics.

If you always do what you have always been doing, then you will end up doing nothing new. So pull up your socks and don’t just do what you want to do. Take stern actions intended to hurt your competitors. Because that's not just one of the many options you have...it's the only option to take you to the top.

Branding - success mantra for every business

Branding today is the success mantra for every business, and particularly for SMEs. There is no doubt whatsoever that an effective brand name, combined with a well known corporate image, usually allows a company to charge more for its products and thus increase its profit margins. No one can deny the fact that a brand value reflects how a product's name, or company name, is perceived by the marketplace.

Companies often err in their thinking when they presume that branding is not very important for old businesses and only rookies need to worry about it. In reality, branding is equally important for both newbies and established businesses as corporate branding strategies will significantly help a company in creating a highly effective and well-established corporate identity.

Contrary to what SMEs usually think, branding is not about getting one's target market to choose oneself over competition. Branding for SMEs should actually be about getting one's prospective clients to view the SME as the only solution provider to its problems.

I believe that for a SME to succeed in branding it must understand the needs of its customers and prospects and this can easily be done by integrating one's branding strategies through those of the company at every point of public contact.

In actuality, the experiences and perceptions of buyers and future prospects of the brand you are offering is what makes it a success. SMEs should understand that a good brand will deliver the message you want to convey clearly and thus confirm your credibility. A good branding strategy will also connect your target prospects emotionally and will motivate the buyer and thus cement user loyalty for future deals.

Lost in the crowd? Get yourself an effective branding strategy. This is what the doctor will prescribe for a growing SME. As the battle for customers intensifies day by day, a strong brand can work wonders. It is thus very important for SMEs to spend time in researching, defining, and building one's brand. SMEs need to take brand building seriously owing to the fact that ultimately it is the brand that is the source of a promise to one's customers. Branding is the foremost level of marketing for a company and one you cannot do without –right?

How Business Savvy Are You?

The first step to success is knowing what goods are lying where and for how long

IF YOU ARE A BUSINESS owner, having a system in place for counting and maintaining inventory or stock is essential for the success of your business. Managing inventory well will bring higher returns on investment and more customer satisfaction.

Stock Just The Right Amount

Too Little: Having inventory can make you lose sales and customers to your competitors. Also, keep in mind unexpected orders. Suppose you have many small customers, and a few large ones that account for say 40% of your sales. What happens if the one of the latter wants to buy up a large chunk of your stock? Logic would say that always accommodate the large customer, but you cannot afford to displease the smaller buyers.

Therefore, don't take chance in an effort to minimize investment in stock

To Much: The more inventory you have means the more money you will spend on overhead costs, loans, insurance, etc. So, analyze your needs, keep a record of the entire range of goods including reorder points storage space required and item location. Take into consideration shelf life of perishable goods, and seasonal and festive demand. And as for predicting requirements of large customers, the best way is to be aware of their consumption patterns and business model.

Follow the 80/20 Rule

About 20% of the items you sell will provide about 80% of your profit, because they sell the most. It's a fact that less expensive items often sell faster and need to be replaced more often sell faster and need to be replaced more often. For instance, when you sell ten items that cost Rs. 5 as often as a single item that costs Rs 5 as often as a single item that costs Rs. 50, you will have made sales of Rs. 50 with the Rs. 5 items. So, keep these fast-selling products at the top of your re-ordering list. And invest 80% of your funds in these items.

Keep Track of Time

Turnaround Time: This is a major consideration when maintaining inventory. Not all products sell at the same rate. So, knowing which products move quickly and which ones more slowly will go a long way towards helping you achieve a balanced inventory. Follow the simple technique of noting the date of purchase and order quantity every time it is replenished, to get a snapshot of turnaround time for each time.

Lead time: It is the time between reordering and the actual receipt of goods. Order Processing, order filling, and transportation usually take place during this time, which could be days, weeks, or months, depending on your supplier. It is therefore critical to be aware of manufacturers production cycles and last order dates, location of your suppliers good owns, and even stock positions of your competitors if possible.

Safety margin: As a precaution, order extra quantities to reduce chances of a shortage, or order a few days earlier. Having reserve stock can come in handy.

Consider cost of inventory

Inventory is often the single most significant asset; it is expensive and has to be managed carefully, else you may lose money. Cost of inventory involves rent, maintenance, insurance, finance cost, pilferage and damage, and even value of stock that may never be sold. These costs when added up, erode profits.

Pilferage and damage percentages are always greater when there too much inventory. It's much easier for theft to go unnoticed when there too much stuff, and breakages and damages are more likely to happen.

When there excess inventory, markdowns (distress discounting) are always higher, because excess inventory invariably slows the rate of sale of everything. The longer merchandise remains unsold, the greater the markdowns that will be necessary to move it through.

Minimize chances of pilferage and breakage by installing a good lighting system in the godown. A CCTV system would act as a deterrent too. Fix narrow and wide shelves according to product categories, label the shelves, and also number them. This will enable you to access items quickly, plus keep a check on their movement.

Inventory accounting: LIFO, FIFO, WAC Keeping inventory means that when you add or remove items from your stock, you will have made a note of it. Here are the most commonly used methods for inventory accounting.

LIFO (Last In First Out): In this, you will sell the most recently purchased inventory first. Suppose you purchased five units for Rs 10 each last month, and five more units for Rs 12 each this month. Using LIFO, Rs 12 would be the rate assigned to each item taken out of inventory until all the five recently purchased are gone. For each item sold after that, Rs 10 would be recorded.

FIFO (First In First Out): In this, you will sell the goods you receive first. Using the example above, you would record the Rs 10 items before the Rs 12 items. This means the value of your inventory is at its most recent price. FIFO is usually used during periods of relatively low inflation.

WAC (Weighted Average Cost): In this method, each time new inventory is added, the average cost of the items is recalculated. In the example above, the average cost of the ten items would be Rs 11 after the month's purchase was made. Now each item taken out of inventory would be recorded as costing Rs 11.

Get Tech Savvy

Having an active inventory record will help to move your business forward. It's a good idea to invest in an inventory management software that controls accounts receivables, accounts payables, inventory and general ledger. The basic idea is to improve the speed with which you turn your goods into receivables, and receivables into cash.

You should also consider bar coding all your products. A bar code system allows items to be scanned at the sales counter and speeds up the transaction process, and also automatically updates the inventory records when products are sold or purchased. This increases the efficiency or your business

SAP Business One The only software you require to run your business know more

Advantages and Disadvantages of ERP - Enterpriese Resource Planning

Advantages of ERP Systems
There are many advantages of implementing an EPR system. Few of them are listed below:

• A perfectly integrated system chaining all the functional areas together
• The capability to streamline different organizational processes and workflows
• The ability to effortlessly communicate information across various departments.
• Improved efficiency, performance and productivity levels
• Enhanced tracking and forecasting
• Improved customer service and satisfaction

Disadvantages of ERP Systems
While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

• The scope of customization is limited in several circumstances
• The present business processes have to be rethought to make them synchronize with the ERP
• ERP systems can be extremely expensive to implement
• There could be lack of continuous technical support
• ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future

Simple Fact: -

STD Code of Hyderabad, India is 040

Implementation of Enterprise Resource Planning

Implementing an ERP system in an organization is an extremely complex process. It takes lot of systematic planning, expert consultation and well structured approach. Due to its extensive scope it may even take years to implement in a large organization. Implementing an ERP system will eventually necessitate significant changes on staff and work processes. While it may seem practical for an in-house IT administration to head the project, it is commonly advised that special ERP implementation experts be consulted, since they are specially trained in deploying these kinds of systems.
Organizations generally use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

• Consulting Services - are responsible for the initial stages of ERP implementation where they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.
• Customization Services - work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are made for many core routines, there are still some needs that need to be built or customized for a particular organization.
• Support Services - include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

ERP implementation process goes through five major stages which are Structured Planning, Process Assessment, Data Compilation & Cleanup, Education & Testing and Usage & Evaluation.

• Structured Planning: is the foremost and the most crucial stage where an capable project team is selected, present business processes are studied, information flow within and outside the organization is scrutinized, vital objectives are set and a comprehensive implementation plan is formulated.
• Process Assessment: is the next important stage where the prospective software capabilities are examined, manual business processes are recognized and standard working procedures are constructed.
• Data Compilation & Cleanup: helps in identifying data which is to be converted and the new information that would be needed. The compiled data is then analyzed for accuracy and completeness, throwing away the worthless/unwanted information.
• Education & Testing: aids in proofing the system and educating the users with ERP mechanisms. The complete database is tested and verified by the project team using multiple testing methods and processes. A broad in-house training is held where all the concerned users are oriented with the functioning of the new ERP system.
• Usage & Evaluation: is the final and an ongoing stage for the ERP. The lately implemented ERP is deployed live within the organization and is regularly checked by the project team for any flaw or error detection.

Simple Fact: -

Climate is Tropical and Dry in Hyderabad, India.

ERP System Improves Productivity, Speed and Performance

Prior to evolution of the ERP model, each department in an enterprise had their own isolated software application which did not interface with any other system. Such isolated framework could not synchronize the inter-department processes and hence hampered the productivity, speed and performance of the overall organization. These led to issues such as incompatible exchange standards, lack of synchronization, incomplete understanding of the enterprise functioning, unproductive decisions and many more.
For example: The financials could not coordinate with the procurement team to plan out purchases as per the availability of money.
Hence, deploying a comprehensive ERP system across an organization leads to performance increase, workflow synchronization, standardized information exchange formats, complete overview of the enterprise functioning, global decision optimization, speed enhancement and much more.

Simple Facts: -

Altitute of Hyderabad, India is 536 Meters

Ideal ERP - Enterprise Resource Planning System

An ERP system would qualify as the best model for enterprise wide solution architecture, if it chains all the below organizational processes together with a central database repository and a fused computing platform.

• Manufacturing: - Engineering, resource & capacity planning, material planning, workflow management, shop floor management, quality control, bills of material, manufacturing process, etc.
• Financials: - Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and billing (contract/service)
• Human Resources: - Recruitment, benefits, compensations, training, payroll, time and attendance, labour rules, people management
• Supply Chain Management: - Inventory management, supply chain planning, supplier scheduling, claim processing, sales order administration, procurement planning, transportation and distribution
• Projects: -Costing, billing, activity management, time and expense
• Customer Relationship Management: - Sales and marketing, service, commissions, customer contact and after sales support
• Data Warehouse: - Generally, this is an information storehouse that can be accessed by organizations, customers, suppliers and employees for their learning and orientation

Simple Facts: -

Hyderabad, India area is 217 Sq Km

Integration is Key to ERP - Enterprise Resource Planning System

Integration is an exceptionally significant ingredient to ERP systems. The integration between business processes helps develop communication and information distribution, leading to remarkable increase in productivity, speed and performance.
The key objective of an ERP system is to integrate information and processes from all functional divisions of an organization and merge it for effortless access and structured workflow. The integration is typically accomplished by constructing a single database repository that communicates with multiple software applications providing different divisions of an organization with various business statistics and information.
Although the perfect configuration would be a single ERP system for an entire organization, but many organizations usually deploy a single functional system and slowly interface it with other functional divisions.

Simple Fact: -

Hyderabad, India is also known as "City of Pearls"

What is ERP - Enterprise Resource Planning

ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology and Specific Business Objectives.
In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise wide information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution which in turn influences their decisions in a productive way. At the core of ERP is a well managed centralized data repository which acquires information from and supply information into the fragmented applications operating on a universal computing platform.
Information in business organizations is accumulated on various servers across many functional units and sometimes separated by geographical boundaries. Such information islands can possibly service individual organizational units but fail to enhance enterprise wide performance, speed and competence.
The term ERP originally referred to the way a large organization planned to use its organizational wide resources. Formerly, ERP systems were used in larger and more industrial types of companies. However, the use of ERP has changed radically over a period of few years. Today the term can be applied to any type of company, operating in any kind of field and of any magnitude.
Today's ERP software architecture can possibly envelop a broad range of enterprise wide functions and integrate them into a single unified database repository. For instance, functions such as Human Resources, Supply Chain Management, Customer Relationship Management, Finance, Manufacturing Warehouse Management and Logistics were all previously stand alone software applications, generally housed with their own applications, database and network, but today, they can all work under a single umbrella - the ERP architecture.
In order for a software system to be considered ERP, it must provide a business with wide collection of functionalities supported by features like flexibility, modularity & openness, widespread, finest business processes and global focus.

Simple Facts: -

Hyderabad, Capital of Andhra Pradesh, India.

How Biometrics Work

A biometric system can operate in the following two modes:

Verification – A one to one comparison of a captured biometric with a stored template to verify that the individual is who he claims to be. Can be done in conjunction with a smart card, username or ID number.
Identification – A one to many comparison of the captured biometric against a biometric database in attempt to identify an unknown individual. The identification only succeeds in identifying the individual if the comparison of the biometric sample to a template in the database falls within a previously set threshold.

The first time an individual uses a biometric system is called an enrollment. During the enrollment, biometric information from an individual is stored. In subsequent uses, biometric information is detected and compared with the information stored at the time of enrollment. Note that it is crucial that storage and retrieval of such systems themselves be secure if the biometric system is to be robust. The first block (sensor) is the interface between the real world and the system; it has to acquire all the necessary data. Most of the times it is an image acquisition system, but it can change according to the characteristics desired. The second block performs all the necessary pre-processing: it has to remove artifacts from the sensor, to enhance the input (e.g. removing background noise), to use some kind of normalization, etc. In the third block features needed are extracted. This step is an important step as the correct features need to be extracted in the optimal way. A vector of numbers or an image with particular properties is used to create a template. A template is a synthesis of the relevant characteristics extracted from the source. Elements of the biometric measurement that are not used in the comparison algorithm are discarded in the template to reduce the filesize and to protect the identity of the enrollee.

If enrollment is being performed the template is simply stored somewhere (on a card or within a database or both). If a matching phase is being performed, the obtained template is passed to a matcher that compares it with other existing templates, estimating the distance between them using any algorithm (e.g. Hamming distance). The matching program will analyze the template with the input. This will then be output for any specified use or purpose (e.g. entrance in a restricted area).

Biometrics Basics

Biometrics comprises methods for uniquely recognizing humans based upon one or more intrinsic physical or behavioral traits. In information technology, in particular, biometrics is used as a form of identity access management and access control. It is also used to identify individuals in groups that are under surveillance.

Biometric characteristics can be divided in two main classes:
Physiological are related to the shape of the body. Examples include, but are not limited to fingerprint, face recognition, DNA, hand and palm geometry, iris recognition, which has largely replaced retina, and odor/scent.

Behavioral are related to the behavior of a person. Examples include, but are not limited to typing rhythm, gait, and voice. Some researcher have coined the term behaviometrics for this class of biometrics.

Strictly speaking, voice is also a physiological trait because every person has a different vocal tract, but voice recognition is mainly based on the study of the way a person speaks, commonly classified as behavioral.

It is possible to understand if a human characteristic can be used for biometrics in terms of the following parameters:

• Universality – each person should have the characteristic.
• Uniqueness – is how well the biometric separates individuals from another.
• Permanence – measures how well a biometric resists aging and other variance over time.
• Collectability – ease of acquisition for measurement.
• Performance – accuracy, speed, and robustness of technology used.
• Acceptability – degree of approval of a technology.
• Circumvention – ease of use of a substitute.

Biometric Technologies Available: -
· Fingerprint
· Iris
· Retina
· Palm Vein Pattern
· Hand Geometry
· Finger Geometry
· Face Recognition
· Voice Recognition

Biometric Technology Adoption Application: -

Biometric Technology Adoption in Very High Risk (Related to social safety): - Nuclear Plants, Mint Bureau, Arms and other.
Biometric Technology Adoption in High Risk Areas (Related to social trust): - Banking, Immigration, Medical Health Care etc.
Biometric Technology Adoption in Low Risk Areas: - Employee Attendance Recording, Office Area Access Control, User Tracking and observation.
Biometric Technology Adoption in Logical Access control Computer Logins, Information Access Control, protect computer network, etc.

Compete by Creating a Well-Run Company

Building a work team that runs like a well-oiled machine is one of the most surefire ways to protect your company from competition today and in the future. Efficiency and productivity emerge in organizations that focus on making sure that teamwork is possible and that information sharing is routine across an organization. The tight-knit work teams in these companies share information freely and broadly across the organization and, therefore, tend to have happier customers, better employee retention and higher productivity.

Use the following tips to oil the gears of your machine and compete more effectively.

Evaluate information flow
Informed teams are competitive teams. With this in mind, create a system to ease the sharing and flow of information across your teams. Do you have an information “blockage” with one employee? Do you lack technology to make it easy for your team members to coordinate efforts? Weaknesses like these can prevent even the most satisfied and well-intentioned teams from collaborating in a way that is essential to retain and increase competitiveness.

Research and implement best practices
Give your team the opportunity to do their best work by educating them about how things are done best. Each industry and discipline has best practices. Management best practices are also readily available. Regularly gather and share information on best practices in order to give your team the information they need to build their skills.

Two implementation details can help with the success of this information sharing. One, determine if your team needs support in building the skills needed to attain the level of expertise required to do these best practices. Two, ensure that best practices are presented to your team as something to strive for as a means of improving their work experience. This is a better approach than holding up best practices as an example of team shortcomings.

Provide a flexible working environment
Well-run companies tend to have programs in place that provide training, career advancement and flexibility. Whether these programs are formal or not, employee satisfaction, improved morale and the associated productivity increases can be tied to how a workplace accommodates an employee’s needs and preferences. Staff members who have the opportunity for advancement or skill building are more likely to feel satisfied with their jobs and more likely to do their best work. Likewise, those who are allowed some flexibility — whether it is time off for personal responsibilities or occasional telecommuting to manage a long commute — are also likely to be happier.

A line can be drawn for many teams between satisfaction and the ability to focus, work hard and share information required for the company to do great work.

Create an environment that encourages mutual respect
Another way to describe this is to “limit the number of annoying people on your team.” One or two people who horde information, speak negatively or ignore deadlines or otherwise challenge team work can derail your productivity and diminish your competitiveness.

It’s quite easy to justify keeping these staffers in place if they contribute intellectually, creatively or otherwise. Their contribution equation though, needs to include the cost they extract from the team. One way to arrive at this cost is to determine how many incidents (missed deadlines, comments, etc.) occur over a given period of time. Arrive at a time or financial cost for each incident and do the math. Also keep in mind that each time this person “strikes,” other team members are affected and lose productivity because of frustration.

Focus on retention
Team strength builds over time and the stronger your team, the more competitive your company. Learn what is required to keep your teams intact and employed with you and then create a retention system. You can conduct research within your company to learn what changes can positively affect retention. Speaking with key team influencers in your organization to get an on-the-ground perspective may also help.

Tool you need to become Best Run Business: -

Affordable Business Management Solution

Be Bold and Learn To Think Big

Big Think Strategy: How to Leverage Bold Ideas and Leave Small Thinking Behind
By Bernd H. Schmitt, Harvard Business School Press, Boston.

The goal of Big Think strategy is to leverage bold ideas and leave small thinking behind. Moreover, we must create the organizational structures and processes to support individual projects and keep the organization focused on Big Think.

The Big Think strategy process consists of six interrelated tasks. The first three tasks concern strategy formulation:
· Sourcing new ideas
· Evaluating the ideas
· Turning the ideas into a Big Think strategy

The following three tasks concern strategy implementation:
· Executing Big Think
· Leading Big Think
· Sustaining Big Think in the organization

While these strategy and implementation tasks may seem familiar, Big Think offers a unique approach, incorporating new methodologies and tools, for each of the six tasks. To remain focused on Big Think, we must employ this approach and not fall back into a Small Think mentality.

Sourcing New Ideas
Small Think strategic planning tries to source new ideas solely by analyzing a host of market and competitive factors. But for Big Think, sourcing really new ideas requires that we go far beyond this simple analytical toolbox. The creative tools used as part of Big Think idea sourcing are all about seeking new connections. We must find new associations by connecting seemingly unrelated concepts. We must benchmark outside our industry (not only within), question long-held assumptions (the sacred cows) of a business, and step out of the timeframe of the present. We must strip down our business strategy to its very core to get more radical ideas. Most important, we cannot source ideas only from within the organization; we must include customers in the idea-sourcing process.

Evaluating the ideas
Effective idea sourcing should generate multiple ideas, which then must be evaluated before we choose which to pursue. Small Think asks a number of decision makers within the organization to evaluate new ideas according to their familiarity and similarity to past initiatives but never asks whether the idea will radically impact the business. To remain focused on Big Think, we should cluster and evaluate new ideas first in terms of their potential for lasting impact and whether they will change markets. Only then should we ask whether new ideas are doable. Ideally, the evaluation process should be as broad as possible, not only including expert decision makers.

Turning the ideas into a Big Think strategy
Too often, a strategic brief gets bogged down in corporate mission-speak, irrelevant data, and linear strategy maps, until the core idea is diluted by Small Think. Instead, Big Think demands that you capture your bold ideas in a crisp image that you further develop using our Big Think strategy quadrants: organizational capabilities required, opportunities and challenges in the business networks, the customer value created by the strategy, and the role of the market ecosystem in bringing it to life. The strategy development process of Big Think resembles the score of a Mahler symphony: you are weaving your bold ideas into a dynamic whole that provides a clear plan for achieving your goals.

Executing Big Think
With Small Think, even the best new strategy can get bogged down in the execution: inertia slows the launch, the rollout is divided between silos (manufacturing, marketing, service) that never communicate, and the customer is nowhere to be found. Executing a Big Think strategy demands tremendous effort; it can feel as if you have to pull a ship over a mountain. Rather than getting buy-in from your employees, you must tap into their dreams. Rather than wasting time on aligning the entire organization perfectly around the strategy, you must organize flexibly. Finally, you must attract your customers’ attention through bold communications.

Leading Big Think
Big Think requires leadership. It cannot succeed with Small Think’s aversion to risk and focus on short-term results. Leaders at various levels of the organization must have the guts to take on the Big Think project, the passion to stand behind it, and the perseverance to see it through to ultimate success. Otherwise, you may just as well let robots do the work. Big Think leaders have a broad view of how to instill fundamental change. They do not just have a plan; they have an agenda. To stay motivated on the way, they consult a diverse group of experts and move in different circles in their professional and social lives.

Sustaining Big Think in the organization
The ultimate challenge of Big Think is not just to set up one successful Big Think project but to implant Big Think into the organizational tissue. For that to happen, we must break down Small Think’s organizational silos to assume an interdisciplinary mind-set. Moreover, employees must view work as play, and play as work, and be entrepreneurial. We need employees who are what I call “Big Thinky Heads.” These are people who radiate a childlike excitement about new ideas. To keep them excited, we constantly expose them to new information that is relevant to their projects and stimulates their thoughts.

Bernd H. Schmitt is Robert D. Calkin Professor of International Business at Columbia Business School. He advises business executives on strategy, creativity and innovation, and he is a frequent keynote speaker at conferences worldwide.

Link to get the book: -
Excerpted from Big Think Strategy: How to Leverage Bold Ideas and Leave Small Thinking BehindBernd H. Schmitt; Harvard Business School Press, Boston.

Imporve Efficiency For a Stronger Bottom Line

For many small and midsize enterprises (SMEs) like yours, achieving profitable and sustainable growth is both an aspiration and a challenge. With “economies of speed” as a distinct advantage, you can adopt a wide range of strategies for maintaining business momentum and outperforming much larger competition. Modern technologies such as integrated business software have become increasingly crucial to helping SMEs gain higher operational efficiency and transparency while setting a solid foundation for future growth. By leveraging solutions based on modern technologies that best fit your needs, you can achieve profitable growth in a highly dynamic market.

Market Dynamics and Challenges
To more effectively address the challenges in today’s highly dynamic market, small and midsize companies must increasingly focus their limited resources on the areas of highest impact:
Managing costs and protecting margins are essential to a company’s ability to survive and thrive in various economic cycles.

• Acquiring and retaining the best customers requires even faster response and deeper understanding of their needs and trends.
• Controlling cash flow and working capital requires companies to more precisely monitor every dollar.
• Maximizing results with scarce resources means companies must optimize use of their limited working capital, employees, and assets.

Market Dynamics and Challenges
As sophisticated business management software solutions become more readily available to small and midsize enterprises, they are emerging as essential management tools to help organizations cut costs, improve business performance, and enable revenue growth, especially in times of uncertainties. Integrated business software can:

Connect your company’s assets, employees, and customers to maximize operational efficiency while reducing errors and costs

• Provide a complete view of your customers so you can tailor services to meet their demands and exceed their expectations, thereby maximizing revenue
• Capture crucial data and deliver full transparency across the enterprise that allows you to be more effective in managing priorities and optimizing resources
• Provide real-time information so you can better control operations, make better decisions, and anticipate and respond faster to changes, thereby reducing risks.

I look forward to hear your comments.

Solutions for Small Businesses and Midsize Companies, Made to fit your needs. Designed to help you grow.

Small & Midsize Companies Business Software Links: -

SAP

Microsoft

Oracle

Sage

How to Make Your Small Business Look Big

Free web-based email makes you think of dead-giveaway addresses like ninja-girl9378@hotmail.com, which are unsuitable for putting on a business card or resume. But setting up your own email server or paying a hosting provider to do it for your small organization can be costly or time-consuming. The good news is you can get all the benefits of the leading web-based email service out there -- Google's Gmail -- with a yourname@yourdomain.com address for free.
With a Google Apps account, you can look like you've got a full IT team behind your small organization but get the simple setup and access that web-based applications offer. Google Apps (formerly named "Google Apps for Your Domain") includes Gmail, calendar and document sharing, simple web site hosting, and instant messaging to all the people involved at your dot-com for free.
Here's how it works. Say you own a web site domain name like thejonesfamily.com. (That you've got to pay for; prices range from $10 to $60 a year.) You can create accounts like jill@thejonesfamily.com, jack@thejonesfamily.com, and sarah@thejonesfamily.com. Each person gets his or her own email account, calendar (for sharing amongst the group), instant messenger account on Google Talk, and Google Docs account for sharing and collaborating on office documents like spreadsheets, Word documents, and slide shows.
The most obvious advantages to using Google Apps is the low cost, zero maintenance, and data storage "in the cloud," which means your email, documents, and events are always available anywhere you can get online with a web browser. You don't need an IT system administrator to create accounts and give users access to services; you can do that all yourself using Google Apps' dashboard. You don't have to worry about data backup (it's all stored on Google's servers), hitting email account storage limits (Gmail's up to 7GB of storage per user now), or futzing with VPNs, firewalls, or specific software. At any time you can choose to switch to another provider and take your domain name with you, which means you don't have to change your email address if you decide Google Apps isn't working for you.
The main disadvantage to using Google Apps' free plan over paying a hosting provider is that if the server goes down or you have problems with your account, you don't have a direct line to tech support. (A $50/year Google Apps account does include phone support for "critical issues." I don't have experience with this, but in general Google is notoriously bad at offering tech support on an individual basis. When you have troubles, you've got to scour mailing lists and blogs to find out what the story is.) Also, some organizations might not feel comfortable storing private information or documents on Google's servers.
But for a family, softball team, side business, small business, or individual who just wants professional-looking email addresses and an easy way to share documents and calendars, Google Apps is a great solution. While I do back up my email to my computer from my Google Apps account periodically just in case the day comes when Gmail's down and no one's home, that day has not come yet.

Some useful Links for Google Apps
Authorized Google Apps Reseller

The Power of a Good Business Plan

Not every business can get away with something as simple as the initial business plan for Compaq Computer. It was a sketch of a portable personal computer, scratched on the back of a placemat from House of Pies Restaurant and Bakery in Houston.

This valuable placemat is ensconced in a glass case in Compaq’s headquarters. That placemat was enough to persuade venture capitalist Ben Rosen to invest in the budding business proposed by three engineers, a business that turned into the fastest-growing startup ever founded up to that time.

But that is very much the exception. Don’t count on your back-of-the-envelope jottings to provide sufficient justification to persuade your unfriendly local loan officer to approve that six-figure line of credit for your business. No, you must develop a workable business model for your startup or a plausible plan for the major expansion of your existing business.

Like all business plans, yours needs to answer the key questions about the purpose of your business: What will it do, and how will it earn money doing it, on a sustainable basis? Small businesses in general are more susceptible to business failure caused by inadequate business planning. There is less leeway for financial missteps. A million dollar boondoggle that causes a quarterly profit dip in a large enterprise can cripple a small business

You may not have a choice about whether to develop a business plan. Most businesses are required by their source of financing to create one. Before a bank will advance a loan, it wants to know how the money will be used and how it will be repaid. Before your board of directors or your division chief approves your annual budget, especially with that big new investment you'd like to see them make, they want a convincing rationale explaining how the risk of this investment will generate rewarding profits and when. Financials are an important part of every business plan. But it’s not the only component, nor even the most important. Before you can intelligently talk about finances, you must create a business model, which is the economic rationale for the existence of the business.

Writing your business plan helps refine your thinking, and that may be its greatest value to you. When you first set down your plan, it may look great. But in the cold light of the following day, you may realize it has some holes or requires additional explanation.

Do you need a business plan even if you don’t require financing? A loan officer is like a friend who will lend you an umbrella, as long as it’s not raining. When you have a desperate need for financing, a bank has you over the proverbial barrel. Don’t count on getting a good deal for financing when you desperately need the money.

So the best time to prepare the financial component of a business plan is when you don’t need money.
Say what?
If your plan shows that your financial requirements are modest and could in all probability be self-financed, that just whets a banker’s financial appetite. You’ll look like a good client to sign up for a line of financing because it appears as though your business will have no problems paying back any money borrowed. Bankers like low risk. A well-thought-out business plan lets you show how you will manage risk, which is the thing bankers like second best

Check out Business Plan Pro Software for making your own business plans.

11 Killer Instincts of Entrepreneurship

Here's a quick look at the 11 Killer Instincts of Entrepreneurship:

1. The Solution Instinct: This is about ideas and always seeing them. It's about seeing new opportunities while traveling, shopping, or working. Seeing problems and potential solutions to those problems is at the heart of valuable ideas and business models.

2. The Detective Instinct: This is about fact-finding and due-diligence. It's about letting go of the emotion and excitement of a good idea and taking a venture-capitalist approach. This instinct is something that keeps one constantly assessing how a business model will work, scale, and succeed... without personal bias.

3. The Great Communicator Instinct: This is about connecting and constantly selling. It's a constant awareness that every point of communication matters. Whether communicating with partners, investors, vendors, employees, or competitors; every communication is an opportunity to strengthen your company.

4. The Youthful Genius Instinct: This is about doing what you love. When we were young, we dreamed big dreams and showed glimmers of what we might become. Tapping into the expectation of our youth is central to successful entrepreneurship.

5. The Entrepreneurial Heritage Instinct: This is about how our heritage can reveal some or our natural gifts. What has your family and ancestors been successful at already? Exploring your roots can help one tap into opportunity. There is a reason why many families pass along entrepreneurial success and create "dynasties" of their own.

6. The Risk-Taker Instinct: This is about going out on a ledge. No risk, no reward. It's a fundamental factor of business building or almost any major endeavor. Finding the calculated balance of risk and opportunity is key.

7. The Work-Horse Instinct: This is about paying the price. Doing whatever it takes. Those "overnight successes" usually require at least 5 years of hard work and incredible sacrifice to get there.

8. The Thick-Skinned Instinct: This is about being tough. Resilience, optimism and a positive mindset reside in every great entrepreneur. The fundamental key to success in attaining goals? Never give up.

9. The Flexibility Instinct: This is about being willing to change. Emotion and pride must be removed from the process while building a business and paying attention to the best route to take. The right path naturally eventuates; if you're willing to recognize it and take it.

10. The Human Instinct: This is about people. Attracting the best people is more important than the business model itself. Treating people well, leading well, and serving with care is a fundamental reason why anything worthwhile should be built in the first place.

11. The Knowledge-Quest Instinct: This is about constantly learning. Reading, thinking, listening, observing, absorbing, and applying is a hallmark trait of a great entrepreneur.

These are unique instincts and in my experience, everyone possesses at least a touch of each of them. And it's my observation that every natural instinct can be discovered, uncovered, and developed by anyone interested in doing so.

Do You Have the Right Stuff to Be an Entrepreneur?

What does it take to start a successful business? While there's no such thing as the perfect entrepreneur, even Bill Gates has made mistakes, a number of personal qualities can help you to build a successful business. If you pass muster on most of these traits, you're off and running.

• You can delegate: No matter how smart and energetic you are, it's a mistake to try to attend to every detail yourself. Unless you're a solo act, you're going to have to trust employees to do their jobs so that you can run the business.
• You know how to teach others: In order to delegate successfully, you will need people with appropriate skills, and they may have to learn some of those skills from you.
• You are self-motivated: As a business owner, you won't have a boss to tell you when to get to work. If that's a problem, keep your day job.
• You can work with numbers: You will spend a fair amount of time keeping track of money, expenses, revenue, taxes, and the like. A math phobia won't help.
• You don't mind making mistakes: You will make mistakes; the trick is to learn from them and move on. Not everyone finds that easy to do.
• You like to work: Contrary to myth, you don't need to be a workaholic to start a successful business. Many entrepreneurs find that it makes more sense to establish a reasonable working pace, one that lets them strike a balance between work and their personal lives. That said, don't start a business unless you enjoy work. There's going to be plenty of it.
• You don't mind selling: You'll have to sell products to customers, of course. You may also need to sell lenders or other financial backers on the prospects of your company. And you'll need to convince potential employees to accept jobs with your firm rather than going to work for the competition.
• You don't quit easily: You'll encounter obstacles that might stymie some individuals. You'll have more success if you are the type of person who relishes such challenges. A dash of optimism is essential; it will help you handle the uncertainty that is part of every venture.