May 2012
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Posts Tagged ‘Business’

Corporate Advisory Services – A New Business Environment in the Making

Corporate advisory services are needed to ensure that a corporate enterprise runs efficiently at its maximum potential through effective management of financial and other resources. It also rejuvenates old-line companies and ailing units and guides existing units in locating areas/activities of growth and diversification. Usually, Merchant Bankers provide these services. The corporate advisory services represent an important component of the portfolio of the activities of merchant bankers. Corporate advisory services, for a business enterprise, include the following services:

• Provide guidance in areas of diversification based on the Government’s economic and licensing policies.
• Appraising product lines and analyzing their growth and profitability.
• Forecasting future trends, and rejuvenating old line companies and ailing sick units by appraising their technology and processes and restructuring their capital base.

The move to help the ailing industrial units is a well thought out service by the merchant bankers which remained unattended for years. Now the merchant banks in India have recognized this gap and started helping ailing companies to overcome their problems. For example Punjab National Bank has developed special expertise in the area and contemplates to offer help in this sensitive area in one or more of the following ways, viz:

(i) commissioning of diagnostic studies,
(ii) assessment of revival prospects and preparation of rehabilitation plans, schemes of modernization and diversification, revamping of the financial and organizational structure,
(iii) arranging approval of the financial institutions/banks for schemes of rehabilitation involving financial relief etc. assistance in getting soft loans from the financial institutions for capital expenditure and the requisite credit facilities from the bank,
(iv) monitoring of rehabilitation schemes, and
(v) exploring possibilities of takeover of sick units and assistance in making consequential arrangement and negotiations with financial institutions/banks and other interests/authorities involved.

The corporate advisory services as explained do not cover all the services rendered by merchant banks to the corporate world. In fact there cannot be a finite list of these services. As new problems come up there would be a need for a new kind of corporate advice, which would solve those problems. Some merchant banks would take up the challenge and gear up their activities for providing the needed corporate advice. This leads to the emergence of new corporate advisory services. Therefore it can be rightly said about merchant banks, “merchant banks are the institutions which identify and solve corporate problems”. In addition to the corporate advisory services explained above the merchant banks may also provide the following services to the corporate world:

a) Help in Management Decisions.
b) Export Staff Placement and HRD Help.
c) Financial Reengineering.
d) Entrepreneurial Training and Development.
e) Technical Assistance
f) Quality Control & Product Mix.
g) Market Survey and Research.
h) Tax Planning.

5 Powerful Tips For Starting A Business

Thousands of people dream about starting a business every day, yet only a very small percentage will ever turn their dream into a reality.

If you follow these 5 important tips then your business idea can get off the ground. Not only that, it can also succeed and become a sustainable venture for many years to come.

1. Get your head out of the clouds.

The first important lesson when considering a new business venture is to be realistic. Whether you are wanting to open a shop or an online venture you must be realistic. Without a realistic approach you are likely to fail. Far too many businesses fail in their first 3 years simply due to unwarranted expectations. Business owners expect their business to flourish quickly instead of having the patience to gradully build their brand and company.

You need to ask some serious questions before you start your business. Will it work? How much money do I need to get it started? What are the business risks? How much do i need to earn to survive? You must consider these questions carefully. If the responses are positive, go for it!

2. Market research.

You must carry out lots of market research before you start your first business. You do not have to pay a company to do it for you, you can do it yourself. Find out who your target customers are and ask them if they would be interested in your product or service. Avoid asking friends or family relatives as they are likely to tell you what you want to hear, as opposed to some truthful and honest feedback.

3. Don’t borrow money from a bank.

Unless you are absolutely 100% certain you have the next big thing, avoid the banks. Try instead borrowing from friends and family but make sure you limit the risks and the amount you borrow.

4. Avoid flash cars and fancy offices.

When I started my first business I spent the first 3 years operating from my cellar. This was great as it allowed me to operate with very low overheads. Far too many business start-ups get flash cars and nice offices when they really do not need them. If you do buy a flash car, pay cash for it!

5. Be patient.

Don’t rush your business. It must be an enjoyable experience. When I first started my business I wanted it to be huge as soon as possible; this as a mistake. I have now been going for 7 years and it is a successful venture and very profitable. I put the success to eventually realising that all good things come to those who wait. Be patient, be meticulous and be very careful who you work with!

Purchasing Consultants: Things To Look Out For

Businesses operate in situations that are affected by lots of factors like micro- and macro-economic ones. An example of micro economic factors or forces affecting your business or company are those which directly act upon the firm or the industry. This is when you try to act by seeking and allocating your internal resources to device an efficient strategy as a solution, but the most common error would be if there isn’t any resource when the firm itself runs and operates with only optimal resources. On this circumstance, management consultants already pitch in to do their job or line of expertise and resources. And, these resources that they have depend on the type of industry they are holding to and its function. Those of which who are expert in the field of supply chain management of different industries are called Purchasing Consultants.

Another factor that affects a business or company’s operation is the macro-economic forces caused majorly by myriad forces. Examples of these are unforeseen or unexpected natural disruptions and calamities and, political stability. This causes either partial or total paralysis to businesses and companies because they only have a little or no control at all on the situation. This is truly evident when there are oil price hikes due to wars in certain parts of the globe. Businesses have no control at all under this circumstance.

So, it is very necessary that businesses and companies should have purchasing reports prior to operations because most of the management consultants having expertise in the field of operations point out on the problems related to purchasing. Purchasing consultants have evolved from their plain and simple purchasing function to a more tactical and strategic line of work. This is very important to be integrated on the business operations because firms need to know the automation level and the available systems in the market.

Globalization and competition made the purchasing function change to a more strategic role: from cutting costs to managing resources, from confrontational reaction to a more collaborative one. This made strategies more needed to engage the resources, evaluate them based on the new and better criteria, and help businesses and companies device much more efficient strategies and techniques to go global.

Manufacturing businesses, firms and/or companies spend more than 50% of their operating budget on materials and parts. However most of the purchasing consultants focus and target on manufacturing corporations. For example, the automobile industry who has tons of suppliers for parts and materials and, modulated supplying showed great improvement for cost reduction and supplier involvement in producing and developing new materials. They even provide consultancy in managing contracts and e-commerce techniques and strategies.

The cost of consulting prohibits the small and moderately big enterprises and companies to hire their own purchasing consultants. You can actually post these problems in online sites that purchasing consultant firms look at. Then they will give the appropriate and right solution to this and, eliminate those abusing their power just to keep the gains and profits to themselves.

3 Reasons Poly Bags Will Give Your Business a Competitive Advantage

Whatever you may call them, poly bags are here to stay; and for good reason. This light weight, water resistant, economical packaging option is now the modern way to display, ship, and protect your products. Depending on their purpose and usage there are a multitude of names available (i.e. plastic bag, plastic shipping envelope, poly mailer, poly pak, plastic mailer, poly envelope, heavy duty poly bags), the list goes on and on. Call them what you will but more and more companies are recognizing the value of upgrading their operations to include this brand centric, economically sound, eco-friendly poly bag option.

Companies have made the switch for many reasons, with each having its own motivations and goals in mind. But there are a few reasons they all share when making the change and upgrading their operation.

Reason #1: You can put your Brand anywhere. So you should!

A first of many reasons is that poly bags can be fully customized and used as a platform to market your brand(s). The packaging your product is displayed and arrives in is yet one more avenue to get your name out, and your brand recognized. This is a huge opportunity to differentiate your brand since many companies still use plain poly bags or bulky boxes that give no brand value. Packaging is the last thing a customer will see after making a purchase, it should make a statement.

Branded packaging is a strong advertising platform that many are not taking advantage of. Using custom branded poly bags gives you a larger advertising reach without a huge initiative or budget. By something as simple as their company name, logo, and website you give all who see the bag the necessary information to reach out to you.

Reason #2: What do you mean we can get better packaging for less money?

What do you and your competitors have in common? Well yes you probably have similar products. You also likely examine every avenue to save money and keep overhead to a minimum. A successful business is always looking to reduce costs, streamline processes, and increase efficiencies. An often overlooked opportunity is in custom packaging.

Would it surprise you to know that poly bags don’t register on a freight scale? Added freight costs, due to packaging, are virtually eliminated. Since the poly bags are customized to your products the packaging fits much better compared to a standard size box. You might as well eliminate the cost of filler or foam to fill the open spaces in a box. While you’re at it why not get rid of packaging tape as well. Since most poly bags have self sealing adhesives there’s no need for it anymore.

Poly bags also cost substantially less to make than corrugated boxes. Not only in terms of production and delivery to your warehouse, but in the man-hours to use (no box building required). For comparison, a corrugated box has approximately 17 motions to build and seal, a poly mailer has 3. In addition you don’t even need packaging or return labels since you can write directly on the bag if desired.

Reason #3: Will You Need This Planet When I’m done With It?

What does “Going Green” mean to you? For most it means you and your company are committed to being responsible residents on this planet. And you should be proud of that commitment. So why not display your efforts to produce and promote environmentally responsible products and operations. It may not be readily apparent but poly bags can help.

A majority of plastic shipping envelopes and poly bags are made with LDPE or Low Density PolyEthylene. You’ll know this when you see a small recycling triangle with a number four “4″ in the middle. This means that with the proper processes these poly bags are 100% recyclable. And many producers provide poly bags that are made with post consumer recycled (PCR) content. This is plastic that is already on its second life but blended to maintain many of the same qualities and standards of virgin resin. Using this environmentally friendly packaging option, your company can promote its environmentally conscious initiatives on the bag, website, products, etc.