Build A Better Business With Financial Planning

The question ‘What is financial planning?’ is frequently asked by persons who are thinking about starting a company. In essence it means to organize a financial plan for the starting up, maintaining and sustaining of a business. It is also referred to as capital plan. A financial plan incorporates the total amount of monetary and other resources that are required for the company. The finance sources that are considered as most economical should be chosen. This also assists the planner in how to make the best use of the financial options. The financial plan provides a complete representation of the company’s financial activities that will take place in the future.

There are answers to particular questions contained in a financial plan. These include: how much long-term or short-term term finance will the company require? Where will the finance be sourced? How will the funds be applied or used when they are accessed? It is essential that the financial plan is prepared in the initial stage as a financial plan that is not correctly carried out will certainly result in undercapitalization or overcapitalization. It is also important to note that an inadequate financial plan is hard to fix, therefore great care and attention should be applied in the preparation of such a plan.

In the process of finding out what is financial planning and what it entails, potential planners will discover that there are three forms of finance plans:

Short-term plan: financial preparation for not more than one year. It deals with the company’s working capital.
Medium-term plan: financial preparation for a minimum of one year to a maximum of five years.
Long-term plan: financial preparation for over five years. Included in this plan are the company’s financial objectives for the long-term such as capital structure and activities for expansion, among others.

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Beat Your Business Rivals By Using Marketing Research

Market research fundamentally means the process by which an organization gathers data pertaining their clients and markets. This essentially a critical factor when it comes to compiling and formulation of a business strategy.

The reason why market research is paramount to any would be successful business is due to the fact that when properly conducted, it can offer you an upper hand over your competitors. You can use the derived data to shape and influence your client base by providing the desired goods/services.

A great market research will let the manager know who and where their clients are located. It should also shed light on when these clients are more likely to purchase the goods/services you provide. By not properly carrying out the marketing research properly, you stand to steer your business in the wrong direction.

Types Of Market Research

Primary Research

The basic goal of a primary goal is to collect useful data by analyzing all current sales along with the effectiveness of the current laid practices in the business. This sort of research also takes into account the plans of your competitors thus offering you knowledge about them.

This process is easily executed as it involves; initiating interviews, taking surveys (by mail or online), filling in questionnaires and feedback groups which go to the ground and sample any potential clients and collection of their feedback.

In order to get quality feedback, you should ensure to incorporate questions such as what factors do clients consider while making a purchase of a certain product, what they like or dislike, areas needing improvement, what is the appropriate price of the product or service rendered.

The other category of marketing research is known as secondary research.

Secondary Research

This is the second stage which involves carefully analyzing and processing of the raw data coming from the market. With this data, you can have a closer look at your competitors, establish benchmarks and ultimately identify the several target segments.

A target segment essentially represents those people who fall directly under your specific demographic region. This can be individuals who lead a certain lifestyle, who have or exhibit a unique pattern or even fall under the same targeted age group.

In the end, any business man/woman who needs to take their enterprise to greater heights should seriously consider taking a thorough and complete marketing research. Do it the right way and you will surely increase the probability of you topping your niche.

written by Todd Brooks