Tag: services

  • The Importance of Business Systems

    The Importance of Business Systems

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    “If you can’t describe what you are doing as a process, you don’t know what you’re doing” – W. Edwards Deming (1900-1993)

    What are business systems?

    Business systems are documented procedures setting out how your organisation operates. They are processes, usually combining actions taken by people and some form of automated application, organised in such a way so as to meet a given set of business objectives. Such systems can generally take place without the business founder / owner’s direct action, over and over again, as efficiently as possible.

    Examples of processes may include how your staff should answer the telephone, how they take and pass on messages; the procedure for raising, approving, placing and receiving orders; the process for generating, checking and sending out client invoices, as well as receiving payments and following up on outstanding bills etc.

    Regardless of the size or type of your business, it is likely that you already have set procedures in place covering many functions within your organisation, which employees follow out of habit or as directed by their supervisor / manager.

    Business systems are the manual for your business; the “know-how” of any business that many business founders / owners usually hold in their head, and have not got round to putting onto paper.

    Why implement business systems?

    There are many reasons and just as many benefits for having established and documented systems in your business, some of which include the following:

    1. They provide a framework for your operations and an effective structure to support your business.

    2. They improve consistency: production, delivery, customer service, after-sales care etc.

    3. They improve results and/or productivity, because you and your employees don’t have to re-invent the wheel every time.

    4. They provide a better work environment for your employees, as an effective system will contribute to clarifying roles and responsibilities as well as providing staff with some guidelines to refer to.

    5. They ensure compliance with legislation, safety regulations or any other legal requirement specific to your type of business operations.

    6. They give your business the ability to expand and they facilitate business growth, as they will make your business more attractive to any potential investor or buyer.

    What system works best?

    Although there are similarities across many functions, such as Accounts, Human Resources, Sales, Stores, Logistics etc., unfortunately there is no one perfect, one size fits all system that works for all companies. Any system will need to integrate the company’s business objectives, its people and the way it provides its products or services.

    It is important to have a well-designed system, customised to your type of operation, and thought out by people at all levels within the organisation.

    Such a system will be more likely to be followed by all employees, because they have been involved in its design, and they understand the value that having a system in place brings to the quality of their work and the service they provide to customers.

    One point to keep in mind is that having great people working with poorly designed systems – or no systems – is likely to lead to an under-performing business. On the other hand, great systems without good people won’t work either, hence the additional benefit of involving employees in designing a system, or simply in documenting the processes they are following.

    Equally so, employees who have been trained in your business systems should also feel empowered enough so that they don’t feel they just have to follow a given script without using their head.

    For this reason, it is important to encourage feedback not just from your customers, but also from your employees and to use such comments to review and to continuously improve and develop your business systems.

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    Source by Cecile Scaros

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  • Discover How to Write Articles and Make Money Online Without a Website

    Discover How to Write Articles and Make Money Online Without a Website

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    Welcome to the world of stress free profits using the famous but very little understood and less used secret of article writing.

    Content writing is one of the cool ways to make money online without a website if you know the secrets. There are many ways you can make money online with this writing business. However, for you to make money online from the business, you must first understand that content writing is a business on its own and a lot of people make money online from it everyday.

    It is one of the freelance jobs available on the Internet where you can make money online as there is hungry market for the business. The internet is all about offering information to people. The hundreds of millions of websites and blogs you see all over have written content in form of articles, reviews, sales copies and profiles

    The objective of most websites and blog owners is to make money from their sites by selling products, services and pay for click programs. The good news for you as a good writer is that all the above mentioned money making means lies on article writing.

    Therefore, going by the number of articles involved, it is quite obvious that websites and blog owners cannot write these articles all alone due to lack of time. In fact, they never dare writing the articles themselves otherwise they may not have time to attend to other important issues. All they do is to outsource article writing job to freelance writers who do the writing for them for a fee. This is why writing has become a means of generating unending income online.

    Fortunately, you don’t even need to invest a dime in the business for you to make money online without a website. All you need to do is to spend few hours a day to help webmasters and blog owners write the articles they need to promote their sites.

    The volume of job to do is limitless and ongoing. This implies that there is always market for you if you are hardworking and dedicated. For instance, a client alone can keep you busy for several months. Depending on how fast you are in article writing, you can earn $2,500 monthly.

    The Approach

    1. You can be hired by people to write articles for them

    2. You can create free blog and add contents to the blog from time to time

    3. You can write articles for submission to various article directories for money.

    These are some of the ways you can make money as far as content writing business is concerned.

    However, you must be ready to follow the rules of the game and make a move to make money in this business. Consequently, do not just fold your arms, dream and relax but try to actualize your dream by working hard. Be fond of discovering opportunities in problems and do not be one of those who see problems in opportunities.

    You will be at the same spot you are for years if you fail to make a move. Hello! Wake up from your slumber now and start writing articles to make money online fast!

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    Source by Oluseyi Sogaolu

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  • How to Think Like a Marketer

    How to Think Like a Marketer

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    Many people say they hate marketing. That’s usually because they think marketing is all about advertising and sales.

    Marketing is a process, not an event. It involves research, promotion, and distribution along with advertising and sales.

    Maybe the most important and most overlooked aspect of marketing is having the right marketing attitude or marketing mindset. Think like a marketer.

    When you have a marketing mindset, you ask how you can build brand awareness to help your target audience become familiar with your products and services, and you as well. Developing that know, like, and trust factor with your audience is key.

    As you develop a marketing mindset, ideas of how to meet marketing goals on a daily basis will come easily, but here are a few ways to get started:

    • Know Your Product & Service Inside Out: This may sound obvious but think about how many times we, as customers, have walked away from buying something because the person helping us couldn’t answer a few basic questions about their product or service.
    • Find Ways to Leverage Mistakes of Competitors: It’s easy to see what the competition is doing well but just as much (and sometimes even more) can be learned by observing what your competition is doing not so well. The Internet is saturated with career service companies, but what makes your career service better than your competitors? Do your homework. Where are they weak? What client needs are not being met and what can you do to step in and meet those needs?
    • Point Clients In Your Direction: Solve client problems. Point them to one of your services or products and emphasize the benefits, value, and results they can gain from it-being a solution to their problem.
    • The “Bottom Line” Isn’t Just About Money Coming In: Looking for ways to save is just as important as finding new revenue streams. Instead of just recording where the money is going, watch for places to save. When looking at those numbers is there a way that sales can be made more efficiently?
    • Every Client Interaction Is a Networking Opportunity: The word “networking” makes some people uncomfortable. But it doesn’t have to be about schmoozing or closing a sale. It’s simply having a conversation in an effort to build new relationships or strengthen current ones.

    “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”-Peter F. Drucker

    In business, everything ties into marketing in one way or form-what you wear, how you communicate (verbally and non-verbally), and what you do to attract, retain, and maintain client relationships. All of it affects or contributes to the profitability and success of your business.

    Thinking like a marketer is a way of ensuring your company’s longevity.

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    Source by Maria Hebda

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  • Everything You Ever Wanted To Know About a Pain Doctor

    Everything You Ever Wanted To Know About a Pain Doctor

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    In all likeliness, you must have heard of the term ‘pain doctor’, otherwise also known as a pain specialist or even as a pain management specialist. Pain doctors help in managing pain and focus on pain medicine, which is all about preventing and treating different kinds of pain. Here are some of the things you need to know.

    What Are the Qualifications of a Pain Doctor?

    A pain doctor can be a medical doctor, also known as MD, or can be a doctor of osteopathy, specializing in pain medicine. Apart from treating pain-related disorders, they also treat symptoms that may have triggered pain. They also work with patients who have to deal with pain owing to a particular condition, such as post-operation related pain. In terms of services, many torment doctors have their clinics, where they offer comprehensive care for most pain-related conditions, or else, they may also work as consultants to healthcare providers and doctors. The role of pain doctors is an extensive one, where they offer counseling to patients, perform procedures as required, prescribe medicines and even offer emotional support. In a number of cases, where is caused due to a certain condition or diseases, the physician may refer the case to a pain management specialist, while keeping a check on the primary treatment. Apart from a medical degree, which is an obvious must, physicians are required to have a state license in the US.

    What Are the Areas of Specialization?

    torment management doctors can treat most conditions, not limited to back and neck torment, chronic torment, cancer torment, arthritis, reflex sympathetic dystrophy, pelvic torment, headaches, fibromyalgia, and orofacial torment. Many torment doctors are a part of different organizations, such as the American torment Society.

    How Are Patients Treated?

    Patients experience pain owing to a number of reasons, and therefore, the diagnosis and treatment also differs. Doctor usually suggest tests before starting off and may consider the family history of the patient, along with other relevant factors such as lifestyle and diet habits. Also, a detailed physical examination will be done to understand the pain conditions better. As for the treatments, the approach determines the next step. Some treatments are planned in a way that patients can live better, despite the pain, while others are more focused on reducing the extent of pain.

    Common Treatments:

    Pain doctors may use different kinds of treatments, such as injections in form of corticosteroids, and medications. Along with that, implantable devices such as stimulators are also used, besides physical therapy, surgery and trigger point injections. Lifestyle changes, meditation, hypnosis and relaxation are some of the other things that doctors may use to help a patient.

    If you are suffering from chronic pain, consider seeing a pain doctor or ask your primary healthcare physician to offer help. The idea is to start treatment early, which may help in dealing with the symptoms better, and yes, do follow your doctor’s instructions for movements, actions and other things, especially if certain lifestyle changes can reduce your pain considerably.

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    Source by Hampry Gomes

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  • MLM Basics – The Multi Level Marketing Business Model

    MLM Basics – The Multi Level Marketing Business Model

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    MLM, also known as Multi Level Marketing, can be a wonderful method for achieving your personal and financial dreams when combined with the power of the Internet.

    My goal in this article is to briefly explain what this business model is and what it is not since it is used by hundreds of companies to move their goods and services from production to the end consumer.

    With the information I will provide here, you will be able to make an informed, educated decision as to whether or not this business model is right for you.

    Multi Level Marketing is nothing more that a business model that uses independent distributors with a multi level commission payout plan to move products from production to the consumer.

    Some people believe that Multi Level Marketing companies are nothing more than scams or illegal pyramid schemes. However, for true MLM companies, nothing could be further from the truth. These people simply do not understand how Multi Level Marketing companies work.

    First you need to know that Multi Level Marketing companies are 100% legal and many large multi-million dollar companies employ this business model to move their products from production to the consumer. The pyramid shape associated with MLM companies is the same shape as almost all non MLM companies. There are always more workers in the lower ranks than there are senior managers, Vice Presidents, and CEOs. If companies were not of this shape, they would collapse.

    Many Multi Level Marketing companies have been around for decades. Some of the better known MLM companies are Shaklee, Tupperware, Mary Kay Cosmetics, Amway, A.L. Williams (Insurance), Princess House (a subsidiary of Colgate Palmolive), Melaleuca, MCI, U.S. Sprint, and NSA.

    MLM is an explosive growth field and there are hundreds more MLM companies that, just like other companies, include some that are good and some that are not so good. Today, more and more Fortune 500 companies are even embracing Network Marketing for a portion of their marketing portfolio!

    No matter what some MLM recruiters would like you to believe, Multi Level Marketing is not a get rich quick scheme and work is certainly involved if you want to build a long-term stable business. So, why are MLM companies and programs so popular? It is because the Multi Level Marketing business model presents an excellent opportunity for the “little guy” to start, on a part-time basis, a business that has a large residual income potential.

    The magic of MLM is that independent distributors earn commissions not only for their own efforts, but also on the efforts of other distributors that they recruit into the business. Earning 1% of a hundred peoples efforts is always better than earning 100% on your own efforts, as John Paul Getty noted.

    The term “multi level” comes from the process where by one distributor recruits other people to become distributors and the new distributors are placed under them in what is known as a downline. Each distributor is paid a retail commission on the products they sell themselves, and a wholesale commission on the products their downline sells (down to some designated level).

    The larger downline a distributor can recruit, the larger will be his or her commissions as they will earn a wholesale override commission on all the products moved by their downline organization down to the designated level. These commissions can add up quickly for distributors with large downlines.

    Thus if a distributor can teach his or her downline members to be successful, then then they will be rewarded by increased earnings themselves. To paraphrase what Zig Zigler once said, you can get anything you want if you help enough others get what they want. By helping others succeed, a distributor helps themselves.

    In addition to selling products directly, recruiting, training, and retaining others becomes the key to earning a large stable residual income with Multi Level Marketing. It is not easy, but it is very rewarding.

    Millions of people are discovering the advantages of being their own boss and working from home with the MLM business model. A basic computer, telephone, fax machine, a HUGE ambition, and the knowledge of how to proceed to grow your business are all it really takes!

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    Source by George Dodge

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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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  • BSE (Bombay Stock Exchange) – Online Trading System

    BSE (Bombay Stock Exchange) – Online Trading System

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    Gone are the days when you needed a broker to help you buy and sell stocks, shares and make stock market investments. Through online investment you can buy and sell shares with just a few clicks of the mouse. The economic and capital market in India cannot exist without a stock exchange; there are two main stock exchanges where transactions take place; the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While all the major transactions take place here, there are over 20 different stock exchanges located across the country.

    Online trading in India has changed the meaning of trading in the country. With no requirement for a broker, trading has become easier, faster and far more convenient than earlier days. Some of the major financial products and services offered through online trading are mutual funds, equities, general insurance, life insurance, share trading, portfolio management, commodities trading and financial planning. In online trading, the investor has to pay less brokerage as compare to offline trading. There is no need for any paperwork through online investing and the need for a middle man is eliminated. All the stock accounts are stored in a Demat account where they can be viewed.

    BSE online trading was established in 1995 and is the first exchange to be set up in Asia. It has the largest number of listed companies in the world and currently has 4937 companies listed on the Exchange with over 7,700 traded instruments.

    The only thing that an investor requires for online trading through BSE is an online trading account. The trading can then be done within the trading hours from any location in the world. In fact, BSE has replaced the open cry system with automated trading. Open cry system is a common method of communication between the investors at a stock exchange where they shout and use hand gestures to communicate and transfer information about buy and sell orders. It usually takes place on the ‘pit’ area of the trading floor and involves a lot of face to face interaction. However, with the use of electronic trading systems trading is easier, faster and cheaper; and is less prone to manipulation by market makers and brokers/dealers.

    The BSE provides an efficient and transparent market for trading in debt instruments, equity and derivatives. This is performed through a system known as BOLT – BSE’s Online Trading System.

    In the stock exchange, a key index is used to keep track of the important or the most traded stocks in the exchange. The indice used at the BSE while trading is the SENSEX and is displayed in all major portals, newspapers and magazines. It is India’s first stock market index that enjoys an iconic stature and is tracked worldwide. It is conducted on a free-float methodology and is sensitive to market sentiments and realities.

    There are also indices such as BSE small cap, BSE mid cap and BSE500 to take care of medium and small companies. Furthermore, India index services and Products Limited has indices such as CNX Nifty Junior, S&P CNX Nifty, CNX 100, S&P CNX 500 and CNX Mid cap. The BSE offers 22 indices to suit a multiplicity of needs, inclusive of 12 sectorial indices. For example, the BSE PSU Index tracks the performance of the listed PSY companies and also helps the Central Government to monitor its wealth on the bourses.

    The BSE has become a completely ‘corporatised and demutualized stock exchange’ through the use of online exchanges. With partners such as Deutsche Borse (DB) and Singapore Stock Exchange (SGX) it has a global competitive force. BSE has strategic relationships in almost every part of the world- Europe (DB)), Hong Kong (ETF) and Asia (SGX), prominent public sector undertakings such as State Bank of India, Bank of India, Life Insurance Corporation of India and Central Bank of India.

    Benefits of BSE trading system in India for share brokers or newbies

    There are a number of attractive services to empower investors and facilitate smooth transactions. Some of these include:

    1) Investor Services: A range of services are offered to investors. Being the first exchange in the country to provide an amount of INR 1 million towards the investor protection fund, the BSE had launched a nationwide investor awareness program; ‘Safe Investing in the Stock Market’ under which there were 264 programmes which were conducted in over 359 cities in India.

    2) BSE has an Online trading BOLT system: the online-Trading system (BOLT) facilitates on-line screen based trading in securities. Currently it operates 25,000 Trader Workstations which are located across 359 cities in the country.

    3) The BSE has the world’s first centralized exchange-based Internet trading system – BSEWEBX.com. This system helps the investors anywhere in the world to trade on the BSE platform.

    4) The BSE has an online Surveillance system (BOSS) which monitors on a REAL-TIME basis the price movements, the volume positions and members’ positions as well as real time measurement of default risk, generation of cross market alerts and market reconstruction.

    5) The BSE has a training institute – known as the Bombay Stock Exchange Training Institute (popularly known as the acronym BTI).The BTI imparts capital market training and certification; in collaboration with a number of reputed management institutes and universities. There are over 40 courses to choose from on different aspects of the capital market and the financial Bombay Stock Exchange market.

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    Source by Monish P Kumar

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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

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  • 4 Little Known Secrets to Becoming a Profitable Affiliate Marketer

    4 Little Known Secrets to Becoming a Profitable Affiliate Marketer

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    Affiliate marketing business has gotten a lot of buzz in recent times due to advances in internet technologies and upsurge of social media channels like Facebook, Twitter, LinkedIn etc.

    However, some affiliate marketers especially beginners struggle to earn profitably because they do not thoroughly understand the business.

    WHAT REALLY IS AFFILIATE MARKETING?

    Affiliate Marketing is the process of earning online commissions by promoting products and services. Your commissions are earned each time you get a lead (Potential customer) or sell products online.The interesting aspect of affiliate marketing business is that you can make a ton of money with a little monetary investment.

    Furthermore, you can start the business without products or services of your own, work from home and earn passive income even while sleeping if you have an effective system in place.

    HOW DOES AFFILIATE MARKETING WORK

    Register under the affiliate program of reputable companies that have valuable products and services.

    Decide on the niche products to focus on.

    Get your custom affiliate tracking link for each product you decide to promote online.

    Select the right traffic source to use in promoting the product.

    Decide on the marketing strategy to use i.e Blogging, video or social media marketing.

    4 MAJOR WINNING STRATEGIES TO INCREASE YOUR PROFITS ONLINE

    Focus on a single niche at a time

    You should choose a niche that you are both knowledgeable and passionate about. For example, Weight loss, Supplements, Nutrition, Pet training etc. This enables you to easily persuade your customers to buy your products. Also, this will allow you to learn and acquire new selling strategies that will increase your sales and multiply your profits.

    Select traffic sources

    It is recommended to focus on 2 traffic sources at a time. I will recommend focusing on one search engine and one social media traffic at a time. This enables you to properly track and optimize campaigns launched on each platform thereby maximizing your profits per product.The secret of super affiliates is their ability to focus on a traffic source, testing and tracking campaigns optimally.

    Test marketing strategy to use

    You can never know if either blogging, social media or video marketing will be most profitable until you test marketing strategies such as:

    Blogging: You can write a blog post using well research keywords for search engine optimization. This attracts your clients to your blog and causes them to make a decision.

    Video marketing; You can make a video describing the features of the product then you upload it on YouTube for people to watch.

    Social Media Marketing: This is the commonest and the easiest method especially for beginners. Facebook is a very good platform because it has lots of groups/forums where you can find people who are interested in your product and service. You can easily send them a friend request and pitch your products to them.

    Track the data/results gotten from each of the methods then you focus on the method that produces the greatest profit.

    Select the traffic type

    The traffic type can either be free or paid traffic.

    Free traffic involves search engine optimization, social media groups, and article marketing. The drawback of this method is that it does not allow you to target your client based on their interests and demographics.

    Paid traffic involves using Pay per click or Pay per view advertising on search engine and social media platforms. This method is faster, associated with increased conversion and profits because it allows you to target your clients specifically based on interests and other features.

    Finally, affiliate marketing business is very lucrative and you can start becoming profitable today once you implement the strategies above.

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    Source by Christopher Ugo Oseh

    Views: 0

  • Choosing the Best Suboxone Doctor

    Choosing the Best Suboxone Doctor

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    Addiction is a growing problem in the world today and it is very important that you find a solution as soon as you notice that you have an issue. For opiate addiction like prescription drugs or heroin, the Suboxone is the first drug that you may consider. The drug is effective in the treatment of opiate addiction symptoms. It works well because it is a partial opiate. This only means that has an opiate effect that is controlled. It is effective for people who are going through opiate withdrawal.

    The treatment aids in decreasing the pain of the withdrawal symptoms and detoxify your body from any opiates that may be in your system.

    Why you need to choose a Suboxone doctor

    Suboxone is a very powerful drug, which has to be prescribed by a doctor who has been approved to administer it. You need to choose the right doctor near you. Before doing this, it is necessary to talk to your primary care provider who is very established in the treatment of addiction. This is the best person to direct you to any specialized doctors that you may need in the course of your treatment to ensure that you get well quick.

    There are different directories that you can use to do a quick search and find the best doctor for your problem. You need to ensure that the provider is reputable and a doctor and he should also have a history of treating patients with your kind of addiction. There are doctors who choose to manipulate the process while others overcharge the services. Shop around to get prices and compare before making a decision.

    The best thing to do is to list around three of the best providers. You need to ensure that they are in your area. Many of the clinics have very strict regulations about how many patients can be treated at one given time. There are many clinics that have to operate at full capacity and therefore you need to look at as many as you want before finding one that is ready to accept new patients.

    The cost

    The treatment prices can vary from one doctor to the next. It also depends on how much of the treatment you really need. Most insurance companies do not cover addiction so you may have to pay a great part of the fees or even the entire amount. This can be an expensive thing but can also save you a lot eventually because of the potential health implications that may befall you because of using drugs. The price is also worthwhile because you will not have to spend any more money on drugs.

    Some of the doctors allow insurance, but they are rather hard to locate. It is for this reason that you should do as much research as possible to land the best deal ever. This may be the medication that you need to finally deal with the habit that can be very destructive. It is always better to deal with any kind of addiction sooner than later.

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    Source by Shalini Madhav

    Views: 0