Role of Banking and Financial Institutions in Business Development

Opening a business or a firm is an exciting challenge, but what really gives pain is doldrums of economic strings. It is the basic factor behind the role of a business in its realm. Financial crunch is the most unpredictable situation and when occurs gives a powerful whiplash. Only those businesses or organizations survive that have an experienced banking or finance partner. Such partners can help in running a newly emerging or established business.

The fact is that most successful organizations are the ones most responsive to change. When it comes to changes only those businesses change that have effective team, efficient management, solid reserves and surpluses. Responding to evolving markets, customers and new protocols is very difficult unless you have your banking partner with you. Unquestionably, banking and financial institutions help businesses to think ahead to the wide array of innumerable opportunities to explore. They help businesses at every step and provide the most vital things like commercial loans, commercial overdraft, equipment finance and business insurance. These are some of the most crucial things that help businesses to boast its banner at the worst case situations.

Commercial loans are the most important factors for businesses. Businesses always look to buy commercial premises for their expansion. For this, they need instant balance, which only a reputable banking organization can offer at the most basic rates. They also offer their clients to choose between variable or fixed interest rates for their benefit. Banking authorities are also involved in the fair assessment of business assets and their financial proposals. This simply helps businesses to grow and expand their market value with more aggressive measures.

Businesses often need equipment finance that are very expensive and can consume complete surplus of the company. Banking technology along with financial institutions extends their assistance in purchasing or leasing equipment, whatever is necessary. Banks also discuss this thing with company’s advisory board to choose the best equipment as per their requirements. Banks also have instruments and products that specially SMEs and small organizations to grow and develop their core capabilities. They have various micro finance instruments that simply help SMEs to grow strong and independent.

In a nutshell, banking and financial institutions are developing new instruments and products to offer immunity to the businesses so that crisis never breaks their necks. They also ensure that businesses never face shortage of cash supply. This has dramatically changed the face of business scenario and boasted trade finance.

Residual Income Business – Developing a Culture of Communication

Residual income businesses are usually structured in similar ways. They are usually setup as network marketing organizations that allow people to build teams that will ultimately help the builder to make a substantial recurring monthly income.

The builder makes this income because they will be paid from the efforts of the people that they have put on their team. The allure of this type of business structure is that it theoretically should be a money maker for everyone because everyone can build a team.

It is a huge responsibility for the person that gets involved in this type of network marketing structure. Once a person has made the choice to join an organization that will allow them to build a team then that person has just made themselves the top boss of their own entity.

Some people that get involved in a home based operation this way often fail to see the importance of communicating with people they bring into their organization. Communication is very important because their success equals your success so it would behoove you as the top person in your entity to help them be a better top person in their entity.

Once a person has decided to join you in business then you should start telling them how you do things from day one. This could be anything from what marketing techniques you use and how often to what you do to fight off redundancy and boredom within your daily activities.

Developing a culture of constant, consistent, and useful information will endear you in the minds of your downline to the point where they will stay within your downline for longer and not fall victim to attrition.

Whenever you look at a residual income business structured in this manner always put yourself in the shoes of your potential downline to see how communication can flow smoothly to them and to their downline as well.

Business Development Strategy – Next Years Planning

I’m amazed at how each year slips by just a little more quickly.

Only a few weeks ago I was running the San Juan River in Utah – blazing sunshine and ninety degrees in the shade. Now it’s Fall already. And hey, I live in Southern California – in some places it’s almost winter. Friends of mine back East are talking about 30 degree temperatures – or colder. Even snow flurries.

Blink – and it will be November, then Thanksgiving, and right its heels – New Year’s. All of which is great if you love to ski, or snowshoe…

Which brings me to every businessperson’s favorite indoor sport – planning.

Each year around this time I urge clients to dust off last year’s business plan and compare it to what is really going on. Because many people – believe it or not – forget what they committed to for the year. Oh – they know their sales and profit projections – but most people don’t pay close enough attention to the other issues. Things like market development, new customer growth, distributor relationships, customer services improvements, even new products: all the things that make it possible for a businesses to grow and prosper year after year.

If you haven’t done so recently, now is a great time to review this year’s results, and plan for the coming year. Take a look at how you are doing compared to how you hoped you would do. It doesn’t matter what month you are in – just compare your results to date to this month last year. And if you’ve already built next year’s plan, you may want to consider it in a new light.

The typical approach to planning goes like this:

Start by setting a goal for next year’s sales growth.

This figure is often arrived at by multiplying last year’s results by some acceptable factor. In business school they taught us to use 10% if we didn’t have a better idea. This ten percent shows up again and again – I think it has something to do with having ten fingers. Standards vary from industry to industry – ranging from 5% to 25%. But in today’s economy, many people will consider it a win if they just remain even with where they were last year.

Next, add solutions to a few key problems you’ve been meaning to address. Follow this by some enhancements to your product line – and there you have it – instant plan!

Those of you who’ve read my book know that I encourage people to think differently.

Here’s a process I’ve used with all kinds of clients; it has led to some truly inspiring – and profitable – results:

Step 1

What do you – in your heart of hearts – want to accomplish this coming year? The key words here are “want to do.” Not what do you think will happen, not what will the market let you do, but what do you want to do.

When you answer this question, it does help to think about things like money – revenue, profits, cash-flow (as if anyone wouldn’t) – but also consider other non-monetary details as well.

Think about what new products or services you’d like to introduce, what markets you’d like to branch into, how you’d like to improve your relations with customers, how many new distributors you’d like to add, how you will make thing better for your employees, partners, even your community, and of course, what lifestyle and “work- style” changes you’d like for yourself.

For each of the targets and goals you are about to set – why do you want to set these targets. Make sure your reasons strongly support you.

Step 2

Learn what you can from whatever has happened over this past year. This is something many of us simply don’t do.

For example, make this year the year you act on the knowledge that it takes three months to train a new distributor, not the four weeks you generally plan for. You’d be surprised at how many entrepreneurs repeat variations on the same mistakes over and over again.

Deliberately capturing the lessons of the past year, and thinking about how to use that new knowledge can provide major opportunities to boost profits.

Step 3

Set targets which will inspire you and your team and get out of bed every morning (even when it’s snowing.)

Instead of using that 10% multiplier – or 25% or whatever – come up with growth numbers that you believe in and which will make it all worthwhile. Say you are committed to 35% growth. But you’ve never had more than 15%. Well how are you going to do that? What would it take? Is it possible? If you believe it is, but you don’t know how yet, don’t worry. You’ll tackle that in a minute.

Step 4

Now is the time to review changes in your market.

Are there new factors – changes in customer buying behavior, shifts in the demographics, new issues in your industry and fresh competitor activity? Consider how these changes will make it easier or harder to achieve your bold targets.

Do any of these changes cause you to rethink the targets you’ve set? If so, go back and make adjustments you feel are necessary.

If you’d like a list of the kinds of questions I ask businesses, send an email to [email protected].

Step 5

Figure out how to reach the targets in Step 3.

How can you achieve the targets you just set? Do you know how? Will that plan work? You may have to work backwards using the Merlin Method. (For those of you who don’t know, Merlin was a wizard who was born old and lived his life getting younger. What he called seeing the future was really just looking into his own past.) So use this idea to create action plans.

This is the method I use successfully with my consulting clients to transform their businesses. I’ll give you a quick overview:

Visualize those bold targets as already met. Looking back from the future to the present, ask what was the final step or milestone you achieved before completing the goal? And what was the step before that? And before that? All the way to the present day. Check for reasonableness.

That’s your action plan.

Believe me, this works! Do this for each of your targets and goals, then execute that plan, and you can almost guarantee a breakthrough year.

In a future article, I’ll write more about the critical success factors you need to review.

Best regards,

Business Opportunity – The Power of Self Discipline For Abundance

A sense of self discipline is an elemental truth with the successful entrepreneur of a business opportunity. Entrepreneurial ventures constantly strive to work against false growth assumptions and presumed marketing difficulties.

Creative Solutions for Operational Difficulties:

Innovative business strategies can be employed to overcome limitations with product development and expansion. There should be renewed effort to look at participant markets with a new vision and positive prospects. Strong business applications can be developed by employing right and left brain skills like creativity with logic.

Products believed to have poor potential for growth in certain regions must be reexamined for better demand at other geographical pockets. Myopic observation of a market situation should be replaced with constructive measures guided by foresight and balance.

Potent Commercial Strategies:

Marketing efforts should aim to go beyond conventional boundaries and norms for product launch. Advance ideas that target customer group with multiple purchasing points can push up net sales numbers. Regular examination of functional model can help identify loopholes of failure with a business opportunity.

Advertisements need not necessarily focus on a weak primary selling point of a product over strong desired secondary values rendered. A business method that does accommodates focus and works for recurrent efforts at success must be employed.

Strong Business Development:

Possible solutions should be explored in the presence of overwhelming negative factors. Real business development is often seen to occur in the midst of severe competitiveness and difficult market conditions.

Non favorable economic situations have led to the initiation of high efficiency and strong schemes with business opportunity. Distribution and retail outlets of a product must be adequate in high demand regions.

A new product must be placed in appropriate sections and categories of retail outlets to grab essential customer attention. Marketing efforts can be initiated months ahead of actual product launch to achieve accelerated favoritism.

Advanced Entrepreneur Applications:

Business opportunity proprietors must have a personal self examination method that tracks learning curve and professional growth. Entrepreneurs often act upon to reduce friction with primary resources and functional activities that work for deliverables.

Business ventures that open up new avenues for growth with innovative products garner profits before competitors imitate the above business idea in the market.

There are different measures to evaluate the success of a business. A good business plan must be developed to monitor progress, success and development.

It is essential to consider goals, objectives and targets with a suitable business plan. Failure to achieve targets must be followed up with corrective measures to rectify negative factors at work.

Business Growth is in turn related to strategies and functional models practiced. Certain forms of business relationships can enhance potential for product expansion. Joint venture agreements can be high beneficial for certain configurations of business opportunity.