Monthly Archives: October 2016

Confused About Selling Your Product or Business Idea? A Marketing Plan Can Help!

A good marketing plan helps you identify and reach potential customers and convert them into paying customers. A good marketing strategy is like a true guide which gives your business the right direction to work in. That’s why many businesses also hire marketing planning consultants to get a good marketing strategy for their business.

The following points will describe why a marketing plan is good for your business.

1. A Guide to Move Forward:

Marketing planning acts like a guide for businesses on the ways to promote its products and services and reach to target customers. If done in time, marketing planning can cause drastic increase in the sales of a business.

Marketing Plans

2. Overall Integration of the Business:

Marketing planning is not just limited to reaching out people but also to plan the pricing of products and services to create an upper edge over the competitors. Thus, marketing planning integrates  management, heads of the department and marketing team of the organization.

3. Predict Future Sales:

With an efficient marketing planning a business owner can get an estimate of future sales and create work plans accordingly. This helps the finance department to create budgets and the human resources department to plan for employees accordingly.

Predict Future Sales

4. Improve the Company Product or Service:

An effective marketing plan involves consideration of even minute details of the company. It also involves comparison of quality of products and services with other businesses in the market (competitors). This helps to take a reality check of the company in terms of quality, customer interest, customer response and accordingly take measures to improve to it.

Grow your Business  Sales

Keeping all these factors in consideration helps the company grow and pursue its goals.

Things You Must Know to Raise Capital for Your Business

The following are 5 important things you should consider before you plan to raise capital for your business.

Analysis- The Capital You Need:

The first question you need to ask yourself is how much capital you will need for your new business venture. The answer to this question is a strong business planning. A complete and comprehensive business plan makes you think about your business critically, and identify the capital required for your business to operate at each stage of growth.

Analysis- The Capital You Need

Having a realistic picture about the current and future capital needs of your business can save you from chances of failure and debts. After all, even a freelancer needs to eat before his work is accepted, published and marketed.

Strategy- How to Raise Capital?

The next step after knowing the amount of capital you need is to look for the source from where you can raise the capital. This depends on your aim to raise the capital. The primary source of raising capital for startups is generally oneself in the form of home equity loans, credit card advances, loans from family, etc.

How to Raise Capital?

But in case you are thinking of taking your business to next level then you will have to look for private investors such as investment banks, accredited investors, and venture capital funds for capital. They usually propose an investment in the form of debt, equity, or a combination of both.

If you are confused about your options about the capital raising sources you can even consult a reputed business consultant or financial advisors. These people are expert and experienced enough to show you the right direction.

Explore- People Interested in Investing in your Business:

Raising large capital for your business can be challenging. Therefore, you will need to find out sophisticated investors seeking maximum return for assuming the risk of a new business venture.

Exploring People for Investments

The first option that strikes everyone’s mind is family and friends because they are less discriminating than professional investors. Other investor options are Venture Capitalists, Angel Investors, Institutional Marketplaces, or Crowdfunding Sites and Platforms.

Documentation- Know Your Legal Responsibilities to Potential Investors:

If you are seeking funds from individual investors, a legal responsibility towards them is necessary. These legal obligations and offerings are regulated through the US Securities Act of 1933 and the Securities Exchange Act of 1934.

A great business consultant will guide you through the procedures, making it simple for you to access the equity markets and compliance with the required regulations. This can help avoid future legal problems.

Negotiate- A Win-Win Agreement:

A funding event involves two parties- the investor and the company. In some cases there may be a single investor while multiple in some others. Some situations even reach to a take-it-or-leave-it while in others, there is intense negotiation. In some cases, parties strive to conclude at a point or an agreement that is beneficial for both.

Negotiation is a skill that comes through learning and practice. It is recommended to seek advice and assistance from a professional in order to make the wisest decisions.