Tag: Industry

  • How to Overcome MLM Challenges – Multi Level Marketing Tips For Success

    How to Overcome MLM Challenges – Multi Level Marketing Tips For Success

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    There are plenty of helpful tips available to help you overcome your MLM challenges. In my opinion most of the challenges we face in MLM are avoidable but only if you start off on the right path. When I am faced with a challenge in my primary opportunity its usually around developing new techniques for marketing, lack of customers, or lack of money. As business owners in the field of MLM we are faced with difficult challenges but they aren’t unlike those that any other business owner faces. We do face different challenges because of the nature of our business but if you plan for the unexpected and have a vision for the day-to-day operations of your company you’ll be able to thrive in your business.

    Every day businesses are birthed around the world within a dynamic and formidable marketplace where only the toughest survive. If you are in the network marketing industry you know that our environment is particularly fickle and can be a tough training ground for the almost 25,000 people that join Multi-level marketing business everyday in the U.S. and the 95% that fail within their first year.

    Most people join network marketing companies not recognizing the importance of having a vision for how their business will grow and function in its infancy. There is concept that many large corporations use to lead their work on a daily basis and I think that it can be particularly effective for network marketers. Its called Strategic Planning. Planning is not a new concept to business corporations but it might be to those that don’t know about its extreme effectiveness for providing a roadmap for any business for periods of 6-months, to 3 years, to 20 years.

    By understanding the importance of this process and the questions that go into taking you through it, you can gain a better sense of preparedness for your company’s growth. As someone new to this industry you need as much structure in the beginning as possible to understand how to plan and set and meet your goals. By taking the first step in this process you will exhibit your commitment to your business and your leadership for your organization.

    You have to believe in something yourself first, before you can get others to believe.– Ashraf Seddeck, Oracle Corporation.

    What does your company do?

    What product or service do you provide?

    What is your mission statement?

    What are your company’s values?

    What is your plan for your first 30 days, 6 months, 1 year?

    What are your weaknesses/strengths?

    How will you market your business?

    Who is your competition?

    What might be challenges that prevent you from reaching your goal?

    What is your plan to grow your business over the next 12 months?

    What is your plan for recruiting for your business?

    What resources do you have to build your business?

    What is your budget for your business?

    What does your organization look like and what types of people are your recruiting?

    What actions are you taking on a daily basis to build your business?

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    Source by Inger L McDowell

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  • Understanding Young Living: Can You Really Make Money With Young Living?

    Understanding Young Living: Can You Really Make Money With Young Living?

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    Young Living is a Muli-Level Marketing company founded in 1993 offering essential oils and other related products. Additionally, they offer a business or income opportunity for those interested in marketing the company or their products to make an income stream. Something I think is neat is Young Living also has a non-profit organization that helps communities and families in impoverished areas in Ecuador, Croatia, and Uganda.

    The Thing:

    Young Living has a ton of products available based around essential oils. Some of the items they offer are Aroma Oils, Massage Oils, Diffusers, Oral Care Products, Healthy Cooking Oils, Animal Care Oils, Home Purification Oils, and of course accessories to carry your oils.

    1. Idaho Blue Spruce – This oil is designed to relax both mind and body and sells Retail value for $37.83.
    2. Animal Shampoo – No Kidding. This product contains several different oils including YLTG oil formulated by D. Gary Young and sells Retail Value for $20.72.
    3. Thieves Fresh Essence Mouthwash – This mouthwash is designed to thoroughly clean your mouth and comes in Spearmint and Peppermint flavor, selling 8 oz Retail Value for $14.47.

    It’s important to note, Young Living offers several different types of products! The categories of products and actual product in which I explained are far from all Young Living has to offer!

    The Opportunity:

    The question still remains; can you really make money with Young Living? In order to answer this question, we must look into their compensation plan!

    There are 3 Main payouts for people affiliated with Young Living such as Fast Start Bonus, Start Living Bonus, and Retail Earnings.

    1. Fast Start Bonus – You can earn 25% on your first-level personally enrolled distributors’ orders during the first three months of being a member. You can also earn an additional 10% on your second-level personally enrolled distributors’ orders.
    2. Start Living Bonus – Each time you enroll a distributor with a Premium Starter Kit, you can earn a one-time $25 cash bonus.
    3. Retail Earnings – With this payout you’ll be able to earn the 24% difference between the Retail and Wholesale price for the orders of your personally enrolled retail customers.

    To Conclude, Yes, You Can Make Money With Young Living!

    The Cost:

    For some, this is the most important question that has to be answered before even considering joining this business! I would be more than happy to be the provider of that answer!

    But first, understand that if you want to get involved with Young Living and begin making money, what you are doing is opening up your own business from home! All businesses require some type of start-up fee! However, in the world of Multi-Level Marketing, the price is generally much cheaper in comparison to a traditional type company. For example, in a traditional type business, such as Construction, you could spend around $5,000 to $10,000 just getting the thing started! In this industry, you likely will spend far less than that! Since we have been able to get that understood, let’s move on.

    In order to become involved and get started with Young Living, you will need to purchase a Starter Kit! They have several starter kits available; I will give a brief explanation of three of them!

    1. Basic Starter Kit – $45.00. This kit includes one 5ml Stress Away Oil, AromaGlide Roller Fitment, 10 Sample Packets, 10 Love It? Share It! Business Cards, 10 Love It? Share It! Sample Oil Bottles, 2 NingXia Red 2-oz. samples, Product Guide and Product Price List, Essential Oil Magazine, Essential Edge, and member resources.
    2. Thieves Premium Kit – $160.00. This kit is a specialty premium starter kit and includes 15-ml Thieves Oil, Thieves AromaBright Toothpaste, Thieves Fresh Essence Plus Mouthwash, 2 Thieves Cleaner, 2 Thieves Foaming Hand Soap, 2 Thieves Spray, 2 Thieves Waterless Hand Purifier, and everything included in the Basic Starter Kit mentioned above.
    3. NingXia Premium Kit – $170.00. This kit is also a specialty premium kit and includes NingXia Red 2-Pack, 30 NingXia Red Single Oils, NingXia Nitro, and everything includes in the Basic Started Kit above.

    Final Thoughts:

    The products offered by Young Living are interesting and definitely have some kind of originality to them. They also have a ton of products to choose from!

    The business opportunity is something you can definitely make money from. However, in my opinion, I believe their compensation plan is kind of weak in a comparison level to other companies in which I have done reviews over. If you know exactly what you are doing and are a professional Network Marketer, you will do fine with this company and even prosper. However, if you are a total newbie and have no idea how to generate massive income from Network Marketing, you will have difficult times making money in this company.

    The cost is overall pretty inexpensive. Their Basic Starter Kit is only $45.00 and their most expensive kit is $260.00. That means, you can start a business and begin generating income all from home for a little under $300.00, which is awesome!

    *Dustin Hale is NOT affiliated with Young Living or their business/income opportunity

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    Source by Dustin Hale

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  • 5 Steps to Move From Employee to Entrepreneur

    5 Steps to Move From Employee to Entrepreneur

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    Have you been considering quitting your day job in favor of starting a business? Have you just lost your job and are currently exploring alternative ways of earning a living? Have you always dreamt of owning your own business some day?

    Before you take the leap of faith into self-employment, consider these 5 steps:

    1. Get clear on your goals/passions – It’s not enough to decide to become a business owner. There are several questions and things to consider before you move forward in becoming a business owner. You will need to think about what kind of business you wish to run. You`ll need to determine if you wish to grow it from scratch, buy an existing business or purchase an available franchise. But even before you decide that- you should think about how the business will fit in with the rest of your life. Running a business can be a huge commitment of time and money. So ask yourself what do you enjoy doing or what will bring you joy? You will spend much of your day on your business so it’s a good idea for the business to provide work you actually enjoy doing. Ask yourself what you are most passionate about? What would you love to do? What is your dream job/business?
    2. Do your research/homework – Don’t make any rash or impulsive decisions and don’t leave your day job until you are absolutely sure of what you want to do and have a plan for doing it. Take the time to do good research by researching the industry, the marketplace, your potential target clients, your competitors. Do proper business research including a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Get a good handle on projected revenues and realistic operating costs as well as an understanding on how long it will take to breakeven and generate more revenues than expenses. Identify your personal strengths and skills and determine if there are any skills gaps. Determine how you will close any skill gaps or lack of expertise. Which gaps can be closed through skills training? Which gaps can be closed through recruiting the right people? Which gaps can be closed through coaching or mentoring? Determine what options and opportunities are available to you right now?
    3. Learn from others’ mistakes – There is no shortage of people who have started or run a business. Speak to as many people as you can who have gone before you. Learn what you can about what works, what doesn’t, and what mistakes others have made. Don’t waste valuable time and money. Be open to hearing others` perspectives on what they would have done differently. Hindsight is always 20/20.
    4. Business Plan ahead – Do the work and develop a business plan. While it may be a lot of work, it will be time well spent and most financial institutions will require one if you are searching for financing. The process of business planning is not only to prove to the bank that your business will be a success, it’s also a roadmap for you to follow to ensure success. Running your business finances can be like running your weekly, monthly or yearly personal budget – so if you haven’t developed good budgeting and financial management skills, it might be particularly challenging and doubly important to have a solid business plan.
    5. Hire a mentor – Starting and running a business can be challenging or even lonely at times. In addition to the day to day operations of the business, you may be mentally or emotionally overwhelmed by being a business owner. Having a safe place to go to for advice, guidance, and accountability or simply as a sounding board can be just what you need to help you make the transition into entrepreurship easier and smoother. Good coaching and mentoring can really help you fast track your transition.

    While there are many advantages to being an entrepreneur, it`s important for you to also consider the downside of self-employment. Become a business owner armed with as much information, skills and tools you can to ensure a successful transition from employee to entrepreneur.

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    Source by Linda Cattelan

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  • Emotional Labour – Organisational Behaviour

    Emotional Labour – Organisational Behaviour

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    Abstract:

    Putting on a good show, keeping face, professionalism in customer treatment can all be examples of emotional labour. When in the workplace dealing with others whether they be colleagues or customers we tend to give a positive emotional response despite the negativity of the other person (customer complaint) or our own current mood state (sadness, irritability) known as emotional dissonance. In this paper we will explore the phenomenon of emotional labour and its effect on workers productivity and social relations. The general outcome being that the strain of that dissonance creates mental health problems in the workplace.

    Introduction:

    Emotional labour can be seen as the affect of the current mood of a worker whilst engaging in interactions with others – putting on a good face for example despite feeling emotionally uncomfortable. (1. Robins/Judge 2013) These emotions can be driven by organisational expectations of an employees behaviour towards customers, clients and co-workers in support of the business goals to profit. For example in the service industry, customer complaints should be handled with a polite professional smiling attitude so that the customer perceives that their complaints are receiving serious attention. Despite the fact the service provider (customer relations officer) maybe be in a personal bad mood, have life problems or employment concerns – all this is swept aside to provide the company’s public positive image to the customer. For the employee engaged in such activities the strain of appearing positive and enthusiastic may cause both physical and emotional strain often leading to further deterioration in mood after work and in between assignments. You could argue that a good deal of the time we are in fact faking our emotions (feelings) in front of and towards others to support social conventions for example being polite. If a customer’s complaint is unreasonable, they are showing anger, accusing the company or misleading them and selling shoddy products – the company service support worker must maintain control over their own emotions despite feeling that the customer is wrong and the complaint is unwarranted or even ridiculous they still have to maintain the company driven reaction to the customer with calm professionalism. (2. Myler – Case Studies 2018) Some companies make being happy at work almost mandatory – where staff entertain, create an atmosphere or encourage excitement over the product and its associated feelings of happiness. For example, theme park staff forced to smile all day – try it yourself – it is very stressful to keep a happy demeanor in the face of disgruntled visitors waiting hours in a queue for a five minute ride or the phone shop worker being asked to entertain the queue of waiting customers with hi-fives and silly games. (3. Grandey et.al. 2010) Many customers in fact reporting discomfort at being targeted for unwanted attention and interaction). Therefore there is a difference between felt emotions (what I am actually thinking and feeling) than with displayed emotions (what is expected of me). After an interaction the employee can feel both exhausted by the forced situation and emotionally angry at faking their feelings for the benefit of others. Many people who suffer from depression report that faking happiness is the biggest strain of the day.

    Culture and Emotional Labour

    Culture may impact on how someone sees emotional labour as the expectations of others in the light of social comparison. (4. Matsumoto etal. 2009) For example many American service jobs, such as retail staff, service providers and customer interaction workers all feel that a positive upbeat smiling enthusiastic person is a definite requirement for the companies image management. The monocor – have a nice day – often rings false in the ears of those who understand this is not a genuine sentiment but a practiced social grace. In other cultures such as Japan or Asia in general – forced politeness or deference to not displaying emotions may in fact cause particular strain on everyday life where displaced emotion can be seen in acts of violence and sexual deviance. The French tend to not display openness in dealing with customers but in fact a non-smiling or even impolite attitudes towards their clients. This can cause companies dealing in global markets problems with staff in having to adapt and understand policy in line with the cultural underlying expectations of behaviour.

    Mental Health

    Many psychologists, counsellors and others such as nurses encounter patients (clients) who maybe presenting mental health problems such as anxiety (worry about future events) or depression (living with the past) that report difficulties in the work place in faking their emotions towards both colleagues and customers – that they feel the strain of the day at home later through irritability, sexual indifference a lack of appetite and sleep. Keeping up appearances at work therefore effects the very quality of our lives both in and out of the work place. (5. Myler Case Studies 2018) Dealing with difficult people whether customers or colleagues leaves us feeling exhausted physically and mentally. In therapy the psychologist maybe searching for psycho-dynamic reasons for the negative feelings from past patterns of behaviour and often miss the power of the here and now effect of faking your feelings at work simply due to enforced company policies that require us to present an image of well- being and happiness that actually is not there. Treatment therefore should focus on workplace stress rather than personal history.

    Role Play & Emotional Labour:

    Of course we are schooled from an early age in how to act given certain social situations, for example being happy at a birthday party ( don’t spoil it for everyone) to look sad at the funeral (even when we did not even like the deceased). We have learned behavior for situational displays of affect. Have you ever been told off – criticised – looked at the person with a smile on your face – and they say, “what are you smiling at?” they think you are not taking them seriously enough, acknowledging their concerns – the truth maybe that we think their remarks are unwarranted and silly – however our learned correct response is to – look serious and be intently listening – while all the time inside feeling what an idiot this person is! In other words we are often asked to fake it – for the sake of the other persons feelings – this is often seen as high empathy when in fact it is more often just a learned reaction to a situational event. Emotional intelligence is seen a as a panacea for management effectiveness but maybe little more than learned responses to situations, rather than a genuine cognitive response to some event. In other words emotional intelligence maybe more pop psychology than a fact. Measurement for emotional understanding may reflect no more about the learned response to given situations we have come to understand through cultural, generational and traditional customs of our community or group behaviour. Psychometric tests for emotional intelligence may in fact be invalid and not robust enough to provide any useful measure of a persons feelings towards others but in fact reflect that learned behaviour – what should be the response not what I actually feel inside.

    Attributions Theory – Misunderstanding Others:

    Attribution theory ( 6. Heider – 1958) suggests that we attend to what we see more than what we know. In other words – we do in fact judge a book by its cover. So if we are busy faking our emotions so must everyone else? So how do we know that the mood being displayed to us is genuine or faked. We pride ourselves on being able to know others feeling by their facial expressions, there seemingly genuineness and authentic sounding responses. In fact much of the time we maybe reacting to the faked emotion rather than the real one. We are often surprised to hear someone committed suicide – we may say – they always seemed so positive and happy looking – but that is exactly what a mis-attribution is – the lack of skills to identify a real emotion from a faked one – we are actually quite good at emotional labour at work and so do we really know what anyone is actually feeling, as opposed to what they are displaying to us. So the helpful shop assistant may in fact be bored rigid at having to seem enthusiastic about a product she has already spoken about ten times that day already.

    In Summery:

    Emotional labour is a situation where the employee expresses the companies desired response to a given situation. Emotional dissonance are our feeling of confusion between our internal feelings and the face we put upon the situation given company policy towards others. Felt emotions therefore being what we actually feel as opposed to displayed emotion being the faked response to another person. Finally emotional intelligence being no more than learned responses to events as we behave given the situation we find ourselves in. The consequences of faked emotions can be strain leading to emotional exhaustion that has both physical and emotional outcomes for mental health and general well-being. Judging others may in fact lead to mis-attributions where we think the faked emotion is in fact the real feelings of the other party.

    To be honest, open and authentic would be real intimacy in our relationships but carries the high risk of rejection and misunderstandings.

    References:

    1. Robins S.P. Judge T.A. 2013 – Organizational Behavior 15Ed Pearson Publishing

    2. Myler S.F. 2018 – Myler Case Studies 2018/19 Unpublished

    3. Grandey A. et.al. 2010 – Work in the Global Services Economy – Journal of Service Management.

    4. Matsumoto D. 2009 – Culture & Emotional Expression – New York, Taylor & Francis publishing.

    5. Myler S. F. 2019 – Myler Case Studies 2019 Unpublished

    6. Heider F 1958 – Attribution Theory – Oxford Dictionary of Psychology 2001

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    Source by Stephen F. Myler

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  • Why Sales Doesn’t Have to Be a Numbers Game

    Why Sales Doesn’t Have to Be a Numbers Game

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    Telling stories is a great teaching tool to use in many fields, especially sales. At one of our recent workshops on pain, a participant from a technology company shared a story about an experience he had at a big-box TV store. This person went in to the store to learn more about flat screen TVs, with no intention of buying. He just wanted more information so he could make an educated decision when it came time to buy a TV, and get the best deal online, not at a store.

    When our participant entered the store, he was greeted right away by a sales person, and before he knew it, the sales person was telling him all about the great features and benefits of each widescreen TV. The sales person never asked a single question about why he was visiting the store, or if he’d even been there before. The sales person was nice but never uncovered any pain. All he did was say, “Can I help you?”, and then proceeded to “spill his candy all over the lobby”, and give our participant all the ammunition he needed to go get his best deal online. The sales person never had a chance to close the deal.

    Far too often, salespeople try to spill their candy in the lobby for a living. They throw information and free advice and their own time and money and resources against a wall hoping some of it will stick. “If I go to enough networking events, if I make enough new prospecting calls, if I talk about my product enough, if I ask enough people if they need this for their business, and if I make enough cold calls, then I’ll be successful.”

    The numbers game is one way you can approach your career, but it requires a lot of work, and it often wastes a lot of time. On the other hand, the Sandler System is all about working smarter, not harder. Furthermore, if you combine the same tenacity and work smartly to uncover a prospect’s pain, you will become a Robo-Salesperson. Armed with new, effective questioning strategies and proven sales techniques, you will discover the prospects’ problems and deep-seated emotional needs, pains, and desires to find solutions (ones that you can provide). This will result in dramatically increasing your sales and reducing your work time and stress that goes with it.

    Another participant in our Sandler Sales program sells gauges to machine shops and other companies. This guy is very meticulous and had a phone prospecting system he followed diligently, but when he left messages, very few returned his calls. Sound familiar? Well, this guy enrolled in our advanced training program and he carefully tracked all his results. Here’s what he found:

    After the first year of learning the Sandler Sales System, his market of selling to machine shops experienced a 5% decline, however, his personal sales went up 28.6%. Since he worked on a straight commission, his personal income went up an equal amount. So, his income went from $93,000 up to $119,598. Our sales guy attributed this to learning how to leave an effective voicemail message, encouraging his prospects to call back, and it worked. After his second year in the Sandler course, his sales went up another 32.3% and his income increased to $158,228. Why? He became more effective at closing deals. In the first two years in the training program, he had boosted his commissions by 70%. The bottom line, none of his success would have happened without learning to uncover his prospects’ pain.

    By the way, if you’re one of those people who believe “you can’t teach on old dog new tricks,” check this out. This guy wasn’t a kid. He was about 50 years old when he started learning the Sandler way, and still made those drastic improvements. I’m happy to say that 14 years later, he continues to attend and take advantage of our President’s Club classes. This sales leader is committed to being at the forefront of his industry’s selling knowledge curve and providing for his family, himself, and his own retirement.

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    Source by Greg Nanigian

    Views: 0

  • Why Is Medical Coding Essential in Healthcare?

    Why Is Medical Coding Essential in Healthcare?

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    Nowadays, there are a lot of health care professions out there, but medical billing is on the list of top professions. Around 20 years back, there were not many job opportunities in the healthcare industry. Now, there are lots of job opportunities in the healthcare market. And this has increased the demand for medical coding professionals. Let’s find out why medical coding is essential in healthcare.

    What is medical Billing and Coding?

    What do you do when you are sick? You go to a medical doctor. At the doctor’s office, you deal with a doctor and his assistant. But you may not have noticed but there is another professional in the process who ensures you get the best treatment. They work in the background but are just don’t pay attention to them because of our health problems. The role of these professionals is to make sure your medical claims are billed and processed properly.

    There is a difference between medical billing and medical coding as different individuals handle them. For this purpose, individuals train and prepare for the job. Let’s find out the difference between their roles.

    The primary role of a medical coder is to decode the procedure or service mentioned on the documents given by the doctor to the patient. Next, he decides on the right type of procedure and diagnosis code for submission. Actually, the medical coder takes their time to assess and code the data to ensure the billing is free of errors.

    Next, the medical biller uses the right codes to enter the claims and then submits them to the relevant insurance provider for billing. For updates, the biller keeps in touch with the insurance provider to ensure the approval of the claims. In case of any discrepancies, the medical biller may update the patient on what is going on.

    Career Opportunities

    If you want to ensure that the medical institutes run efficiently, the importance of medical coders and medical billers can’t be denied. The billing and coding professionals are an integral part of the system to ensure that the records are updated and handled properly.

    Recently, there has been an increase in job opportunities for trained medical coding and billing professionals. As the life expectancy and population increases, the demand for these pros will keep on going up, says the reports released by the Bureau of Labor Statistics.

    Actually, these professionals are appointed at nurse care, medical billing companies, rehabilitation facilities, insurance companies, private clinics, and hospitals, just to name a few.

    If you want to join this field, make sure to get certificates by undergoing proper training. Usually, these pros need to undergo post-secondary training.

    It’s not hard to achieve this feat. All you need to do is sign up for a medical billing and coding program. As soon as you have gone through short training, it’s time for you to apply for your desired job at a nearby medical facility.

    So, this was a description of the importance of medical coding in healthcare.

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    Source by Shalini M

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  • Why Customer Concentration Impacts a Business Sale Transaction

    Why Customer Concentration Impacts a Business Sale Transaction

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    Few owners recognize the major impact that customer concentration has on the sale of their business. Customer concentration represents a significant obstacle and will affect the salability, valuation, and deal structure of a business-for-sale transaction. Not only will it create problems in qualifying buyers but it will impact the ability for any prospective purchaser to obtain third party financing to complete the acquisition. Determining if customer concentration is present in an enterprise is a critical element of the succession planning process.

    Customer concentration is a situation when one customer represents a significant portion of revenues or when the business has a very small customer base. Based upon the expert one consults, the exact percentage for a concentration to exist varies. In most cases it is recognized when one customer represents more than 10% of sales or when the top five customers comprise greater than 25% of a company’s revenue. In either situation, a huge risk is created from the lack of diversification and steps to mitigate it should be taken years in advance of a planned business exit.

    When evaluating a business sale it is important for an owner to recognize that their client base has a significant impact on the enterprise value of the company. A broad and diverse base of customers where there are a large number of clients contributing to the business’ revenue will achieve a higher transaction value as it reduces the risk that a sizable decrease in earnings will occur if any one customer is lost or a particular industry segment that the business serves encounters economic distress.

    In addition to a lower sales price, businesses with customer concentration issues are more difficult to market for sale. For main street business transactions (those with adjusted earnings of less than $2mm) third party financing is used in the majority of cases. Businesses with high levels of customer concentration are very difficult to get financed. Lenders may provide only partial financing, offer sub-optimal terms, or decline the loan altogether. In situations where third party financing is not available, the pool of available buyers is significantly restricted and the terms of a deal could be heavily weighted on a contingent earn-out based on retaining the revenues derived by the largest customers. “Typically we want no customer concentration over a 10% level when considering financing an acquisition. Higher levels are possible with much more explanation and supporting documentation but remain a major concern” states Steve Mariani, President of Diamond Financial Services.

    Lastly, customer concentration will have a direct impact on the deal structure for the business sale transaction. Buyers will strive to bridge the customer concentration risk through a variety of delayed ‘performance based’ financing methods. For example: Assume both parties agree on a transaction price of $900,000 based upon $300,000 of adjusted earnings (a 3x multiple). If the key account in question represents $75,000 of the $300,000 this would represent $225,000 of the transaction price. A buyer will strive to isolate the $225,000 component to ensure that revenue is maintained post sale. After a period of 12 months, if the customer and income are still in place the seller would receive the funds. If the identified client and corresponding revenue was lost during this period, a pricing adjustment would be made.

    In situations where the buyer is unable to obtain transaction financing due to customer concentration issues, the seller might have to accept a “contingent earn-out” for the revenues derived from the largest customers, or worse, they may also have to finance a major portion of the “non-contingent purchase price” negotiated with buyers.

    Contingent payouts could be structured in a variety of methods:

    Earn-Out:

    Earmark part of the purchase price with payments made over a period of time contingent upon the retention of specific customers or achieving specific revenue targets.

    Escrow:

    A percentage of the acquisition price will be held in an escrow account for a specified time.

    Seller-Financing:

    The seller would be responsible for financing a major portion of the purchase price through a seller note. The seller note could be structured with contingencies for revenues derived from the largest customers.

    With any of these deal structuring techniques, the seller cannot be expected to guarantee the revenue in perpetuity and if the transaction price is based upon retaining one or more key customers, the seller may require more active involvement in maintaining the client relationship during the term of the agreement. Obviously, this brings an additional complexity to the transaction.

    In most cases, buyers will look to discount the amount they are willing to pay for a business (with high customer concentration) unless they receive assurances that the risk is low. While the obvious strategy to reduce customer concentration risk is to diversify and increase the business customer base, there are a number of situations where customer concentration either does not pose a significant risk or could be mitigated.

    Customer Contracts:

    Having a contract in place will not eliminate all of the risk of losing a key customer, but it will provide the buyer with security that the revenue and profits will continue after a change in ownership takes place. When customer contracts are involved, the ability to assign or transfer will be important to understand. In many cases, a stock sale vs. asset sale is elected to preserve these contracts.

    Barriers to Entry or Exit:

    Businesses could have intellectual property, product expertise, or patents that create competitive advantages barring competition. Others are located in geographically remote areas where the supply benefits discourage customers from changing the relationship. Lastly, there could be significant capital requirements for manufacturing and tooling or agency approvals (pharmaceutical or government contracting industry) that creates a barrier to entry from potential competitors.

    Providing a Variety of Products and/or Services:

    Having a broad relationship with a key customer where the relationship is not based solely on one product, one location, and one individual decreases the risk that a singular change will fundamentally impact the future revenue stream and continuity of the account.

    Economies of Scale or Synergies:

    The acquisition may be pursued by a strategic buyer where they are bringing new products/services to the enterprise, a broader geographic distribution footprint, or economies of scale in production. Any of these elements would assist in reducing the concentration of revenue risk that an identified key client would represent to the future organization.

    Summary

    Businesses which have high levels of customer concentration are inherently risky and it is important for the owner to appreciate this concern from the perspective of a potential acquirer. Ultimately, the buyer seeks only to retain the customers which have contributed to the success of the business and are factored in the valuation and transaction price. From the position of a buyer a few logical questions and concerns would be:

    1. How does the value of the company change if a customer representing 10% or more of revenue and/or profits is lost in the first year?
    2. How easy would it be for the client representing the customer concentration concern to leave the business?
    3. What unique situations exist within the business to preserve the customer relationship in the years ahead?
    4. What are the logical steps and corresponding costs to mitigate the customer concentration risk?
    5. How do I achieve a win-win transaction? Protecting me, the buyer, against the risk of a near term revenue loss while providing the seller with the proper remuneration for the fair market value of their business?

    While the risk may not be able to be totally eliminated, there are a number of situations where customer concentration is more palatable and a proper explanation should be provided to the buyer at the earliest opportunity. Getting out in front of this potential challenge is critical to achieve a win-win deal. When good communication exists, and two fair and reasonable parties are at the table, there are a number of structuring options available, when necessary, to mitigate the risk and negotiate a fair and reasonable transaction price. Obviously, the best approach for a prospective business seller would be to develop and implement plans to reduce any customer concentration elements years in advance of a business exit. Eliminating this type of risk is just sound advice for any small business owner regardless of whether a sale is contemplated.

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    Source by Michael Fekkes

    Views: 0

  • Future and Scope Of Multi-Level Marketing As An Alternative Employment Source

    Future and Scope Of Multi-Level Marketing As An Alternative Employment Source

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    The industry of multi-level marketing is becoming quite popular among budding entrepreneurs and people from different walks of life. The sole reason for this increasing popularity is that it offers every people to set their own home business with attractive financial opportunities. In addition to that, people do enjoy freedoms like fixing their own job hours along with developing their own marketing and product selling strategies without any kind of interference. Here they have the right to claim their legitimate financial shares not only from their personal sales but also that from their down-line members.

    In the multi-level marketing sector there is always an increased demand of hard working employees and this demand never extinguishes even during tight situation like that of global recession. For college students this sector provides the appropriate platform to receive training on product selling and to hone marketing skills under the supervision of experienced distributors without spending any money from the pocket.

    The Multi-level marketing industry will soon become the most suitable form of alternative employment opportunities even for the highly qualified professionals. It is because in the coming days this industry will be the sole guiding force to dominate the world economy. This strategic commercial model will also present the opportunity of earning part time incomes for retired people and those working in other service sectors. In order to join in this lucrative sector there is no need of acquiring special educational qualification except simple application of common sense while selling and marketing products before the target customers.

    Firms following this business model have been able to maximize the sale and marketing of their products and services to the fullest extent. It has also helped them in earning highest possible revenues in every year. Using this strategic business model companies like Qivana, Sunrider, Fuxion and many more have been able to be in constant touch with the changing tastes and preferences of the customers when it comes to buy and choose new products and services. These firms are also helping distributors with the options of leading luxurious life with greater financial autonomy through their unique and effective compensation plans.

    These compensation plans play a vital role in the sector of multi-level marketing in determining the hardworking initiative of the distributors to reward them adequately with robust bonuses and incentives along with the opportunity to spend vacation in exotic places. So without wasting any more time people must enroll in this sector early for leading a happy and joyous life with family and friends forever.

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    Source by Manojit Chatterjee

    Views: 0

  • How To Write An Excellent Sales Letter In Two Hours

    How To Write An Excellent Sales Letter In Two Hours

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    You wish to have the ability to write a fantastic sales letter. If you’re able to write excellent copy, then you’re ready to make more money and develop your client base. You are snowballing that by short-term success into long-term success.

    That is not sufficient for you, however. You do not only wish to have the ability to compose outstanding sales copy. You want to have the ability to produce an excellent sales copy in a brief moment. The simple truth is that you respect individuals who will very fast knock copy that converts.

    What is the secret to writing exceptional backup? Is it possible to write an excellent copy in just two hours? Can you compose a superb backup is much less than two weeks? You indeed can.

    I’m likely to let you know the specific method you’re able to follow along with getting things completed. But first, let us discuss why you will have the ability to earn this happen and how it’s potential.

    When most men and women sit down to compose backup — mainly if they are not copywriters’ — there is a certain quantity of anxiety and intimidation that from the beginning. They assume it is likely to be a complex and lengthy procedure.

    There is also the simple fact it may take a while to understand the intricacies of writing backup. You can not escape from the simple fact that it is both an art and a science. There is a particular something there which makes the backup convert not.

    Thus, you begin with this anxiety and this feeling that perhaps you are in over your mind. You are attempting to recall all of the bits which you have discovered, whether you have written copy earlier or not.

    Many individuals can also be highly ineffective. Even if they understand how to write copy and also have done so many times, it is most likely the case that the correct procedure is inefficient.

    Whether you have never written copy before or you have written heaps of sales letters previously, it may be taking you weeks to compose a bit of text which should only take a couple of hours.

    If you would like to write a copy in only two weeks, then you need to streamline your procedure. You are likely to reduce the fluff in regards to writing copy. You will focus just on the bits of writing copy that issue. You will stick to a structure (or create your own) which permits you to hit the most vital elements of this backup.

    You are going to be after a template. When I say’ template,’ that does not mean that your copy will be dull or dry or look formulaic, even though you’ll technically be after a formulation. The frame, or procedure, you operate from will permit you to open your imagination. Talk to your audience when making sure that you hit all of the’replicate’ things you want to hit.

    The simple fact is there are particular copy components we all know work once it has to do with writing sales letters. These are demonstrated to convert again and again– they are what we call ‘time-examined.’ That means you will utilize these time tested components on your copy for a matter of course while being inventive and enthused with the way you phrase the letter into your viewers.

    To Assist the Reader, You Need to Understand that the Reader

    If you are going to compose a letter for two hours and assist your reader, then you need to comprehend your reader. Here is something which you can do inside a couple of hours. However right, comprehensive comprehension is something that will take place over time.

    Become part of this conversation online forums, social media, and site comment locations.

    Read what they must write. Pay attention to comments become heated and excited. Pay careful focus on breaking the things which are most important for this crowd.

    Notice what the individuals of the audience are keen on purchasing — and why. What exactly is the driving force behind that? What are the most critical problems?

    You need to understand their most pressing issues — the things which are on their thoughts all of the time. Know their pain points and the lengths they are prepared to go to fix those pain points.

    You ought to be aware of how they have reacted to other goods available on the industry.

    You ought to have your finger on the pulse of what is happening and feel like you understand your crowd, such as the back of your hands.

    Try this a bit daily.

    If you sit down to write a sales letter, then imagine your audience is one individual on the mind. Compose a letter for this individual. Write a fervent letter made to emphasize their difficulty, the journey you have been on your own, which relates to their problem. The precise, perfect answer you are offering them with an offer that they can not pass up as it is so remarkable.

    At this time you know this individual, and it is a personable correspondence, which means that your conversions will be through the roof?

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    Source by Jean Taylor

    Views: 0

  • What Are All the Things One Should Keep in Mind While Trading Bitcoins?

    What Are All the Things One Should Keep in Mind While Trading Bitcoins?

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    Today, in the world of everything digital and done through the internet, people are trading currencies through the web as well. When it comes to the internet, one of the most famous topics of this millennium discussed is cryptocurrencies. With the help of blockchain, these currencies are created and traded and the number of users is simply on the rise. However, like any other trading, bitcoin trading too has their ups and downs and their own set of rules that need to be followed. Trading always carries a large amount of risk, but if one is clever enough and knows how to manage the risks properly, then they can easily be successful at it.

    Some of the things that one should keep in mind while trading bitcoins are listed below:

    Make a plan

    There should be a clear plan about when to start and when to stop. Trading straight ahead without having any plan can be disastrous for profits and loss balance. It is imminent that a target level is decided, when profits should be collected and when to stop to minimize losses. People need to be kept aware of all the pros and cons and about all the trading trends that are happening in the market. Trading daily is not recommended because certain big traders are always out there, waiting to catch the innocent traders make a mistake.

    Risk management

    People should make use of risk management tools and understand how to spread the risk perfectly through a trading portfolio. This will allow gradual and substantial gains to occur throughout a certain period. Also, they should keep in mind that trading in the high-risk market with an edge can lead to bigger losses. Instead, making smaller profits in a low to moderate risk market can make them good bitcoin traders.

    Don’t buy all trading news

    Many people before trading tend to read the news related to market trends and when and where to trade pieces. Most of the time these pieces can be one-sided and can have a biased opinion. This can lead to bad decisions and complicated knowledge about the bitcoin trading scenario. Instead, people should read about financial markets and how to minimize the risk pieces which can help with trading smarter in the long term.

    Identify scams

    Just like any other financial industry, bitcoins and other cryptocurrency markets are also filled with scams, where many groups are looking for bitcoins and naïve traders. No one should jump at any situation even if lured with a bigger profit scene. Think before trading because the bitcoins are not insured and if they are lost to a scam, there is no way the situation can be corrected. Always keep an eye out on new investments or a large number of investments which can all be a signal of scamming.

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    Source by Shalini M

    Views: 0