Category: Business

Strategic planning and management is one of the keys to the success of the business. And this is what brought Warren Buffett to where he is now. He is the world’s second richest man according to the Forbes Magazine. His net worth is approximately $62 billion. Buffett is often called the Oracle of Ohama or Sage of Omaha. Right now, he is the largest shareholder, chairman and CEO of the company Berkshire Hathaway.

From a capital of $35 when he was still a teen, he grew largely by billions. He has shown a potential during his early years .In 1945, when he was still a freshman, he and a friend purchased a second-hand pinball machine that they placed in a barber shop. After some few months, they already owned three machines in different locations, His interest and dedication for business was already noticeable at a very young age which continued until today.

Now, he is one of the world’s greatest investor. Almost all businessman focusing on buying and selling industry have heard of Warren Buffett. Experts have now come up with the Warren Buffett Business Factors, a compilation of business principles that was used by the Sage of Omaha. He was the only man in Forbes rich list to have made it purely from buying and selling stocks and shares. In Buffett’s own words, he quoted:

Im 15 percent Fisher and 85 percent Benjamin Graham. The basic ideas of investing are to look at stocks as business, use the market’s fluctuations to your advantage, and seek a margin of safety. Thats what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.

This is a brief view of Warren Buffett’s Business Factors that is applicable for all business owners.

1. Always stick to what you know, and that which is within your area of experience, expand on that experience, and stay focused.

2. Only enter into a business agreement, investment, or project where you can reasonably predict the outcome with certainty.

3. Only enter into a business agreement, investment, or project where you can reasonably predict the outcome with certainty.

4. Maintain emotional detachment in your business dealings. Invest only with a business perspective, do not let the others or the crowd persuade or dissuade you, but rather develop your self and your trust in your self. Make a point of learning from your mistakes.

5. Identify what kind of business deal you want, then determine what you are willing to pay. Small fluctuations in the price of what you need to buy can vastly affect your returns in the long run.

6. Work out the return on capital of your business, and try to make every business deal at least the same if not better than that return.

7. Use other peoples money to leverage returns. If your return on capital is greater than the cost of using other peoples money, then make sure you use their money as much as possible, not forgetting about your margin of safety. Warren has had great success with insurance companies, using this principle.

8. Only appoint or work with managers of outstanding quality. Use managers who act in the best of interest of the business and hence the owners of the business at all times.

Caterpillar Business Strategy for Increasing Revenues
It is the battle of the fittest in the business world. Every company is seeking to grow either to new territories or in existing ones on the expense of competitors. Businesses that are not able to grow wither in the competitive global market. Today there is no pure “local market”; everyone wants to be everywhere. The global business world is becoming a “local market” and it is getting smaller.
If during the 1990″s branding was the main marketing strategy for a company, and defining a specific market segment was necessary for gaining expertise and market definition, during 2012 and beyond there will be less companies that will strategically brand themselves into one product line. Companies will try to go out of their market niche earlier in the company’s life span than before.
Long term and short term strategy will change, and we will find more and more companies widening their product array to the point that these products won”t have a direct connection to each other. This means that companies’ strategic way of thinking will be one of profiting from what the market wants; in essence “” “Caterpillar Business Strategy”.
The “Caterpillar Business Strategy” is basically another way of looking at the global market. This course of action is defined by seizing your opportunities regardless of brand marketing, market niche and international identity. The main aspect to be considered is global trends and profit opportunities.
Why “Caterpillar”? Because every company today has basic legs on which they stand upon. These legs are connected to the body but also to each other. This organization structure has a lot of downsides to it that will be detriment in future global comparative abilities. The caterpillar has many more legs, which are not connected to each other, so if one of them falls it is still stable. In addition, it is near the ground because of its long horizontal structure. It is also agile so it can cope with changes. With all these attributes the caterpillar is the best alternative for future strategic business development planning and company structure.
In the end it is all about growing within the global business world, in which it is more and more difficult to survive. Companies have to find more sophisticated business expansion strategies, adopt structural changes and have greater safety nets when the going gets rough. This “Caterpillar business strategy” is an exsellent solution.

A business management program has become a highly popular professional course which is being pursued by a large number of students.Some people are amused by the soaring popularity of a business course. So, what is so different about a MBA program? What does it has to offer? Well, in this course, you’ll learn about a managing a business, the different business activities/operations, skills to manage those functions and equip with abilities so that you are able to find good jobs in the corporate world.

Get started with reading the below discussion and you’ll get to know what a business management program offers:

Management education: A business management program equips you with knowledge about how business organizations work. You are trained about the different business functions that make a business venture run. Marketing, sales, Finance, Human Resource Management etc. are taught in this course. A full-time business program is of 2 years. The first year of the program will teach you about the core business functions and in the second year, you’ll get acquainted with an in-depth knowledge of any one the main business functions you choose to specialize in. You can choose a specialism among 3 main areas of business, namely, Marketing, Finance and Human Resource.

Skills gained: A management course which focuses on different management functions and the process involved in different factors of production. So, you’ll be equipped with problem solving skills and deliver results to get the best results by performing a particular business function. You’ll be trained to work with limited resources and making optimum utilization of them. Training will be provided to extract the best results and you’ll gradually become performance oriented.

A MBA Degree/Management diploma is just not a professional course, but it’s a way of life. It teaches you to be organized, helps you gain knowledge in conflict/ stress management, problem solving skills, time management as you get vast experience through live projects, student-industry interactions, seminars etc. which open up a whole new world for you. Management institutes impart Skills Training which helps students in adopting a positive towards personal and professional life.

Jobs found after graduating in management course: A business management course will enable you to develop abilities in various business functions and you will specialize in one activity among the three main disciplines namely, Marketing, Finance and Human Resource Management and you can find jobs accordingly.For example, if you have specialized in Marketing Management, you can take up jobs in Sales, marketing, Retail or if you have specialized in Financial Management you become job ready for the financial services industry or you can work in the audit, accounts department etc. You”‘ll start from being an executive and move up in the corporate hierarchy and become Team Lead, assistant managers, Manager and so on.

Your business location should be tailor-made to fit with your company budget, spacing requirements and ease of operation. For some business owners, leasing affords a sense of freedom and relieves the financial burden of a down payment, yet may be too restrictive for some kinds of operations. The decision to buy a piece of commercial property offers its own set of risks and rewards, and should be considered carefully before entering into a mortgage contract.

Leasing Commercial Space

1. Cost Effective

Leasing a commercial space will usually require a one to two month move-in deposit, making the rental space a cost efficient way to do business. New business owners may be strapped for cash, and by leasing, rather than purchasing, your storefront or office is cost effective to set up shop with minimal funding.

2. Flexibility

Leasing a commercial space gives the entrepreneur plenty of room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make the lease payments, the terms may be only a matter of months to be released and start over in another location.

3. Freedom

Setting up shop without the burden of a mortgage to pay allows a sense of financial freedom. Albeit, a purchased piece of commercial property could be leased or sold to another, there could be months before the owner receives any income from the property. A hefty mortgage may also interfere with business profits and may demand downsizing of personnel.

4. Maintenance

A leased office or shop has a landlord to lean on, taking away tedious responsibilities with the plumbing, electricity and security. In a leasing situation, any repairs or legal liabilities are left in the hands of the building management team.

5. Subletting

In some situations, you may sublet your leased office space to another. However, this must be cleared in writing from the management office, and careful attention given to their rules and regulations for renting out the space.

Buying Commercial Space

1. Secured Location

Buying a piece of commercial property adds assurance that the space is secured and cannot be given to someone else. In a leasing situation, when the lease expires, the renewal process may not have the same initial terms, thus proving unfavorable to renew. However, when you purchase, your prime location is secured.

2. Equity

As with a residential piece of property, a commercial owner may take out cash against the mortgage. In an emergency financial crisis, having a mortgage to borrow from lends a sense of security and provision of funds. Most commercial purchases will require 20 to 25 percent down on the purchase price, giving instant equity to the business owner.

3. Remodeling

When you have bought a property, it is your to do with as you wish. Remolding, expansion and reconfiguration are yours for the taking. The ownership allows the business structure to be molded around the enterprise for a perfect fit and usage of space.

4. Tax Deductions

The interest on a commercial loan is tax deductible, with allowances for deducting any depreciation.

5. Lease Your Excess Space

If you own the property, you may lease your excess space without any restrictions from a third party over your head.

The idea behind using a social networking site as Facebook as a venue for doing business is building a user base in the form of a community who respond to you as a person or to your product. If you just turn your page into one big advertisement, you are not going to get much in the way of a response. You need to educate people about the product without coming across as a hard sell.

You want to create the impression that you are here for socializing, not business. People will come to trust you and be more likely to buy your product or service if you can do this.

Facebook has built in tools which can be used to build your business. These include:
– Social Ads
– Pages
– Beacon
– Insights
– Platform
– Polls

These tools can help you to build awareness of your brand through this social networking site and bring in potential clients. Needless to say, you are going to have to learn to use them effectively. Read on to find out how to harness these tools to build your business using social networking sites.

You can learn how to take further advantage of these features by visiting the facebook website business section.

SOCIAL ADS

Social ads have a lot of promise for building your business since they can go directly to the news feeds of your Facebook friends. Anyone who is on your friends list will be able to get the word about your business right on their profile page.

This is also a very easy way of target marketing. You can control exactly who sees your ads – and target marketing is the way to get sales.

FACEBOOK PAGES

You can make a Face book page for a business, just as you would for yourself. This allows people to interact with and even become friends with your business. It is a great way to make a lot of people aware of your product and your brand who would not otherwise.

You know when someone becomes friends with your business on Facebook that you have a potential client; at the very least, they have shown some interest. People can interact with your business as they would with any of their other social networking site friends – they can leave comments and generally enhance the experience of a visit to your page.

You can use this social networking site to your best advantage by adding features that will appeal to your target market and fit in with the brand image you are aiming to create. Quizzes, games, a Facebook group and so on.

FACEBOOK BEACON

Like social ads, Facebook Beacon gives you the ability to build your business by promoting yourself via your Facebook friends news feeds. You can set Beacon to notify all of your Facebook friends whenever you have a new product available, or any other sort of news or information you would like to disseminate amongst your Facebook friends. All you need to do is to add a little code to your Facebook page (this can be done by copy and paste, so no need to panic).

This encourages more interaction with your page, the website of your business and your company in general. This also helps get the word out about your businesses product or service.

Do not fret that you will be mercilessly spamming your Facebook friends and invading their privacy – they can opt out of these updates at any time they choose. You of course have the same ability for Facebook Beacon updates from others.

FACEBOOK INSIGHTS

If you are using facebook as a method of promoting your business you will of course want to know just who is checking out your Facebook page, clicking on your ads and joining your friends list. Facebook Insights is a tool which can give you a lot more detail on these sorts of statistics, which can help you to evaluate the efficacy of your campaign.

Armed with this information you can make the call as to whether viral marketing is working in your favor. Word of mouth is one of the best means of advertising and Facebook can facilitate it on a large scale. Facebook Insights lets you figure out what parts of your campaign are working and which are not as well as giving you valuable demographic information which will help you refine your campaign further.

FACEBOOK PLATFORM

Facebook Platform is an exciting tool for business indeed. Programmers can use this tool to build programs which will work with Facebook and add to the usefulness and fun of your Facebook page. If people like what you have on your page, they will spread the word and this build your client base.

You can add all manner of different applications to your site using this platform. Many opt for games, quizzes and other interactive features. You can have a look at the Applications page on the Facebook site to get an idea what sort of things others are using the platform for. These kinds of features can really help you build your brand image; take advantage of them.

FACEBOOK POLLS

Facebook polls can be a great way to gather demographic information from people using the site. Since you can make the poll interactive and fun to use, you’ll have no trouble gathering data. Best of all, you can target your polling.

You can make sure your polls are targeted just where you want them to be since you already have access to some data such as marital status and age of your Facebook friends. This helps you keep your polling relevant.

Do not forget about these valuable tools – they can really help out your business.

Anyone who is willing to put in just a little bit of effort can make their own applications for Facebook. You just need to learn Facebook Markup Language – there are plenty of tutorials online which can help you learn the ropes of this quickly.

Remember to have a look through what is already out there in terms of Facebook applications before you develop your own. If everyone is already using a very similar application, not too many of your fellow facebook users will be enticed by it. Do something a little different if you want to grab the attentionof people.

CREATING APPLICATIONS FOR BUSINESS

With just a little bit of programming know how, anybody can make and distribute their own applications. You’ll be doing this to build your business and it can make a big difference. Applications can really draw in people and keep them on your site. Games are especially popular and can build your brand while keeping users engaged and entertained.

You would be unwise to neglect the use of these applications available to you through Facebook. They can help get the word out about your business – and that is why you made a Facebook page for your business in the first place, no?

You will also be building a sense of community amongst all of these potential customers which will help you get sales.

Here are a few tips for getting the best results from your applications:

1) Make it relevant
In marketing, relevancy is everything. If your potential customers can not get into it, or if it is unclear how the application ties into your product or service, rethink your application.

2) Privacy policy
Even if they are on facebook to socialize, people still want their privacy to be respected. This is why there are friend lists and groups, to which one must be invited. Privacy is a natural human desire and Facebook facilitates this while still allowing for socialization. Remember to respect the privacy of users and retain that trust you have worked so hard to build with them.

3) Free distribution
Once your application is finished and ready to go, you will distribute it. You can do this by listing it on the site along with all of the other Facebook applications and then invite others to install it. If your facebook friends like your application, they will spread the word.

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