Great Minds

Importance of cost-benefit analysis! #GreatMinds

/ Business, Great Minds

Having embarked on your entrepreneurial journey – you must be very critical while spending money for an initial period of 2 to 3 years – irrespective of the fact that it is your own money or borrowed money. Even after 2 to 3 years when your business is well established and is running well, it is nice to remain financially alert, frugal, and prudent. I am not suggesting that you be a miser and/or have a narrow focus or short-term perspective of things. All I want to say is that you must always do the necessary cost-benefit (either a quick verbal check or a structured study) of any aspect, offer, or proposal before making any financial commitment. The application of the cost-benefit concept should not be limited to only fixed assets. It is a versatile concept and should be applied in all situations whenever and wherever a cost is involved. Always ask – what is my cost? and what benefit do I get?

Here’s what Thomas Sowell, an American economist and social theorist, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Do not over-capitalize! #GreatMinds

/ Business, Great Minds

Capitalize only to the extent necessary – overcapitalization may increase your borrowings and increase your interest burden. While ideally, you should have adequate capital with a healthy operating cushion (to take care of unforeseen factors) – temptation to overcapitalize and borrowing more should always be avoided. New entrepreneurs during the start-up phase can avoid buying land and constructing buildings – they can instead work from leased premises or factory sheds. Major plant, machinery, and equipment can also be leased out to save on initial capitalization costs. In the initial period, which may vary from a few months to 2-3 years, many entrepreneurs fail or are forced to exit from the business. Once the entrepreneur has crossed this vulnerable period of risk and uncertainty and the business has picked up, one can always do judicious planning to build own assets and terminate all lease arrangements. 

Here’s what Jim Breyer, an American venture capitalist, founder and CEO of Breyer Capital, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Conquer your goals bit by bit #GreatMinds

/ Great Minds, Marketing

Many times in life, we are confronted with huge, important tasks that require our attention. Daunted by the challenge, we procrastinate. We don’t know how to begin to tackle them. At this point, a good productivity tip to follow is — break down your larger goal or project into small, achievable microtasks. You can even break them down by limiting the time you work on it, say, 20 minutes per task. My friend Jyoti Nair sent me an excellent graphic representing this technique.

This practice not only helps you prioritize but also helps you track your progress. You feel less stressed, and more accomplished after each microtask that you check off from the list.

Here’s what Mark Twain, American writer and humorist, has to say,

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Marketing Research #GreatMinds

/ Great Minds, Marketing

The marketing research process requires an outlined, methodical gathering of market data to aid in business and managerial decision making. Additionally, market research helps business owners and entrepreneurs identify problems and opportunities in their respective niches. Entrepreneurs and companies must follow a specific set of steps to collect data and complete an effective market research study.

Here’s what Clive Cussler, an American author who has reached The New York Times fiction best-seller list more than 20 times, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Social Media as a marketing tool #GreatMinds

/ Great Minds, Marketing

We can deploy various social media networks to enhance our marketing effectiveness and to allow our business to follow the activities of our customers and potential buyers. Whereas social media, by itself, is not enough to drive business growth – social platforms can help you connect with your customers, increase awareness about your brand, and boost your leads and sales. When we use social media as a marketing tool for our business, it helps us build fruitful relationships and share our business expertise with many others. It enhances our brand’s visibility. Whether it’s Twitter, Instagram, Facebook, LinkedIn or a host of other apps, it has given all of us an immediate way to connect and share with friends, family and those who share our interests.

Here’s what Paul Barron, CEO, Executive Producer and Editor in Chief of Foodable Network, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Why Management Audit #GreatMinds

/ Great Minds, Management

Management and Strategy Evaluation is an important concept in business. It critically examines the complete management process, namely, the planning, organising, directing, and controlling. It finds out the efficiency of the management by carefully examining the company’s plans, objectives, policies, procedures, personnel relations, and systems of control. Management auditing is conducted by a team of experts. They collect data from past records, members of management, clients, and employees. The data is analysed, and conclusions are drawn about managerial performance and efficiency.

Here’s what Peter Drucker, Austrian-American management consultant, educator, and author, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Importance of Financial Statements #GreatMinds

/ Business, Great Minds

All business organisations prepare Profit and Loss Account. It gives a summary of the income and expenses for a specified period. They also prepare a Balance Sheet, which shows the financial position of the organisation at the end of the specified period. Financial statements are used to control the organisation. The figures for the current year can be compared with the previous year’s figures. They can also be compared with the figures of other similar organisations. Ratio analysis can be used to find out and analyse the financial statements. Ratio analysis helps to understand the profitability, liquidity, and solvency position of the business.

Here’s what Jim Blasingame, an American small business expert and radio talk-show host, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Embracing Failures #GreatMinds

/ Great Minds, Motivation

Life is a rollercoaster ride. We all strive for success in life, but we must also embrace and celebrate failures. Failure acts as a stepping-stone to our eventual success. It helps us reflect and recalibrate our moves. Sometimes, this may lead us down a new path that will prove to be more satisfying. We must, therefore, not see failure as the end. Failure provides us opportunities to learn from our past mistakes when we reflect objectively.

Here’s what Denis Waitley, an American motivational speaker, writer and consultant, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Why Meditation? #GreatMinds

/ Great Minds, Motivation

“Meditation is a practice where an individual uses a technique – such as mindfulness, or focusing the mind on a particular object, thought, or activity – to train attention and awareness, and achieve a mentally clear and emotionally calm and stable state.” This is indeed a succinct and wonderful definition written on Wikipedia. I think that people mistake the purpose of meditation; it is not about controlling your thoughts. The point is to stop letting thoughts control you. We should make meditation a simple practice that we incorporate for 10 minutes in our day. When thoughts are crowding your mind, it is a distraction. When there are no thoughts, it is meditation. Buddha was asked, “What have you gained from meditation?” He replied, “Nothing! However,” Buddha said, “let me tell you what I lost: Anger, Anxiety, Depression, Insecurity, Fear of Old age and Death.”

Here’s what Sylvia Boorstein, an American author, psychotherapist, and Buddhist teacher, has to say:

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

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Product Line Pricing #GreatMinds

/ Business, Great Minds

When a primary product is offered with different features or benefits, essentially creating multiple “different” products or services, it’s called Product Line Pricing. The goal of product line pricing is to maximize profits. Think of a car, for example, which could be the primary product. It could come standard, with a sunroof and navigation system or fully stocked with all the features and add-ons. Each product after would then be priced accordingly. The more features offered, the more consumers will pay. The aim is to draw enough interest in the primary product that the upgraded product will be sold (at a greater price) based on the interest in the “basic” primary product. By using Product Line Pricing, some individual products may not make profits, but the intent is for the product line as a whole to turn a profit.

Here’s what Warren Buffet, an American business magnate, investor, and philanthropist, has to say:

WHAT DO YOU THINK?

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In this ongoing series #GreatMinds on my blog, I am shining a spotlight on the important ideas that some very successful people keep talking about in their public life.

Product Line Pricing #GreatMinds Read More »