Don't Compete, Create a Competitive Advantage. Communications strategy is a key asset for a young entrepreneur to understand.
If you're a business owner, accurately sending the taxman his due helps you avoid substantial penalties. The Internal Revenue Service and state fiscal agencies require that businesses file income information quarterly and at the end of the year. To avoid the doldrums of an IRS audit, make sure your business files all income data on time. Accounting is the process that enables a business to record and report its transactions. A bookkeeper records corporate economic events by debiting and crediting specific accounts.
These include assets, liabilities, expenses, equity and revenues. The bookkeeper makes journal entries in a general ledger, which is a two-sided form with one column for debits and another for credits.
Financial reports shed light on how a business performed over a specific period, such as a quarter or fiscal year. Accounting data summaries include a balance sheet, a statement of profit and loss, a statement of cash flows and an equity statement.
By analyzing a new company's finances, you can determine whether it is a flourishing firm or one experiencing fits and starts. Investors use financial ratios to analyze corporate items, such as solvency, profitability and efficiency. Also called financial markets, securities exchanges enable investors to buy, hold and sell investment assets. If you're an entrepreneur, a financial exchange may be a good place to raise cash for your company. Marquis Codjia is a New York-based freelance writer, investor and banker.
He has authored articles since , covering topics such as politics, technology and business. A certified public accountant and certified financial manager, Codjia received a Master of Business Administration from Rutgers University, majoring in investment analysis and financial management. Video of the Day. Brought to you by Techwalla. References Small Business Notes: General and Operations Managers U.
How to Write a Business Plan U. Find out how many people would ultimately purchase a new product or service, for example, based on the presented business concept. Evaluate the results of the focus groups. Tweak you business concept if necessary. Change the proposed name of your product, for example, if focus group participants unanimously liked the name.
Hire a marketing research agency to conduct phone surveys about your business concept. Help the marketing research agency create a questionnaire about the new business concept. Plan on surveying at least customers and target consumers to get a more reliable sample for evaluation purposes. Allow the marketing research agency to conduct the surveys. Ask consumers how they rate various aspects of your business concept: Features, price and service.
Ask consumers how likely they would be to try or purchase the new business concept as it is described. Use a scale such as "very likely," "somewhat likely," "not at all," "somewhat unlikely" and "very unlikely" when asking about purchase intent. Have the marketing research agency send you a data table of the results. Analyze and evaluate the results. Write up a report on the results of the research.
Create a presentation of the results for your partners, colleagues and even the bank if you need financing. Plan on implementing the new business concept if the research results are highly favorable. Start small when implementing your new business concept. Introduce the business concept in a couple markets.
Monitor the sales and profits closely. Track results of your advertising. Expand your business concept into other markets if sales and profits are increasing. Skip to main content. Things Needed Concept statement Business plan Moderator Focus group facility Focus group questionnaire Marketing research agency Marketing research questionnaire Data tables Final report Presentation Follow-up research. Tip Continue to conduct research surveys on a regular basis. That way you can detect potential problems with business concepts as they arise.
For example, your products may have a significant defect rate, or customers may feel negatively about your customers service. Constantly monitoring your consumers opinions will better help you pinpoint and resolve all negative issues and problems. Also, larger sample sizes on surveys are more representative of the population.
A business concept may involve a new product or simply a novel approach to marketing or delivering an existing product. Once a concept is developed, it is incorporated into a business plan. The business concept comprises your vision of the company, explaining the value your product or service will bring to the customer, why you are especially qualified to offer it, as well describing your offering's uniqueness and growth potential within your industry. Positioning is one of the hardest marketing concepts to not only understand, but to do right, as I detailed in my recently-completed series. It’s very conceptual, highly theoretical, and mostly emotional.