Here’s a question to test your prospects as a business leader: How does your company make money?
If you can’t answer it, you’re hardly alone. Many MBAs can’t answer it. Many CFOs and vice presidents can’t answer it. Experienced CEOs sometimes struggle to answer it.
What I’m testing with this question is your business acumen.

The Universals of Business
At the core of every successful business, from a global giant to a corner store, are the same fundamentals of moneymaking: cash, margin, velocity, return, and growth. And at the core of every successful business leader is an intuitive understanding of the relationships among them.
It’s easy to think the basics of business are for beginners. Everyone knows what cash is, and that companies must make a profit.
But business acumen isn’t about knowing definitions. It’s about keeping the basics of moneymaking in sharp focus and balancing them in a way that’s healthy for the business.
When you have business acumen, you realize the importance of every job at every stage of your career. A mailroom clerk with business acumen knows that getting checks to the accounts receivable department more quickly will ease the company’s cash flow. And a sales rep with business acumen knows that higher-margin products will increase the company’s return.
Moneymaking Basics
As the complexity of your job increases, it’s easy to lose sight of the fundamentals. If your business acumen doesn’t develop, you can stumble — focus too much on revenue growth and overlook cash, or focus too much on cash and overlook growth.
That’s why you should never consider it beneath you to revisit the moneymaking basics. They should be front and center in your diagnosis and decision making in every job you have.
Here are the basics:
• Cash
No business survives long without it. You should know how much cash your business generates and how much cash it consumes.
What are the sources of it? What drains it? What’s the timing of the inflows and outflows and how is it changing? More revenues (sales) often means more cash. But growing a business consumes cash. How fast can the company expand without straining its cash flow?

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“Business opportunities are like buses, there’s always another one coming.”
- Richard Branson, founder of Virgin Enterprises

If business opportunities are like bus, then be sure that there will be many who will want to board the buses. They will also face the eternal question ‘What next’? The next step is to choose the type of business. The choices are many and the decision, well, as usual, always difficult to make.

Before opting for any type of business, it will augur well, if you understand the difference between each of the options.

Sole trader:

Sole trader is a person who carries out the trade/ business single handedly. He is the whole and soul of the business. Usually, there is no one to assist him; though in some cases he might keep an assistant or a helper.

The following are the distinguishing features of a sole trader:

1)      He is responsible for the entire business. He is responsible for all the affairs pertaining to the business.

2)      The law does not make any distinction between the owner and his business. In the eyes of the law, both the owner and his business are the same.

3)      Since the law does not distinguish between the owner and his business, his liability is unlimited. For e.g. if the business goes bankrupt, the owner will have to cough money from his own assets and financial reserves to pay to the creditors and lenders.

4)      The sole trader is also liable to pay for any legal compensation that might arise in the course of running the business. He cannot shrug his responsibilities. He will not be able to defend himself by saying that the act was committed by his business and not by him.

5)      The sole trader has the final say as far as decision-making is concerned. He is not legally bound to listen to anyone. He may do whatever he deems to be fit.

6)      Since he has the freedom to take all the decisions, he is also responsible for them.  For e.g., There is a bread manufacturer, [who is also a sole trader], who introduces a new variety of bread, thinking that there is demand for this particular variety. If the product succeeds, he can take the credit. If the product fails and as a consequence he suffers losses, then he will be held for the losses. The buck starts as well as stops with him.

7)      He keeps the entire profit earned by him. Similarly he also has to shoulder the entire burden of loss.

8)      A sole trader has to maintain financial records that distinguish between money used for personal and business purpose. For e.g. if he sends a letter to his wife, the postal expenditure will be treated as personal. But if a letter is sent to a prospective customer, it will be treated as expenditure incurred for business purpose.

9)      A sole entity might come to an end if the owner becomes bankrupt or has an untimely demise, with no one to look after the business.

Limited company: 

A limited company is a separate entity and is also either registered or incorporated under the laws of the country in which it is situated. It is a separate person in the eyes of the law.

The following are the distinguishing features of a limited company:

1)      Since a limited company is a separate person, it can hire ‘employees’. These employees are responsible for running of the company. These employees can be the directors of the company, the secretary as well as the staff including the receptionist!

2)      For setting up a limited company, most of the countries require registration. Some countries also specify the minimum number of people that are required to start a limited company.

3)      The laws of almost all the countries specify the use of the word ‘limited ‘ or ‘ltd’ after the name of the company.

4)      The finance for starting a limited company is raised by issuing shares. The people to whom the shares are issued are termed as shareholders. The shares cannot be issued to the general public unless it is a public limited company.

5)      The liability of the shareholders is limited to the amount paid by them during the purchase of the shares. For e.g. if the company goes into debts, they are not liable to pay to the lenders and creditors from their own personal finance.

6)      Similarly even the directors and other staffs are not responsible to pay. This is because the company is a separate entity.

7)      The directors are responsible for the health of the company as well as its day-to-day affairs.

8)      But if the company is held for any wrongdoing, the case will be filed against the company and not the directors. However, the directors are responsible for the way the company is run. If evidence of wrong- doings is found against the directors, cases can be field against them in the court of law.

9)      The directors, in consultation with the shareholders, take the decisions pertaining to the company. Meetings such as AGMs [Annual General Meeting] are held to discuss about future strategies and growth plans.

10)  The profits earned by the company can be distributed among shareholders as dividend. Alternatively, it can be also used for the expansion plans of the company.

11)  No single person owns the company. It has a perpetual existence, which is not affected by the death of any shareholder or director.

Though there are many distinguishing factors the main difference between a sole trader and a limited company is that the law makes no distinction between a sole trader and his business, whereas a limited company is a separate entity in itself which can function very much like humans i.e. it can hire people, sue and get sued etc.

William King is the director of Wholesale Pages: http://www.wholesalepages.co.uk, Aid and Trade: http://www.aidandtrade.com, Daily Trader: http://www.dailytrader.com and Pakistan Property Portal http://www.zameen.com/. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Online auction is scorching the virtual world. More and more people are finding the virtual world a convenient way to sell as well as purchase goods. Many of them use online auction sites such as eBay to get their product’s worth.

Auction sites such as eBay also house a myriad of products and it is very easy for one’s product to get lost in the crowd. One can follow certain tips that will aid in effective selling

1)      Familiarize yourself with the site: It is important to familiarize yourself with the site. You can just navigate within the site to get a feel of it. Visit the site’s help section. They have a special space dedicated to sellers- http://pages.eBay.in/help/sell/index.html. This will not only give you the confidence to go ahead but will also make you aware of the pitfalls and the dangers as well as the things you are supposed to do and things you are supposed to avoid.

2)      Pay attention to the appearance: Appearance matters. Imagine yourself in the shoes of the buyer. This will give you a better idea of how things should be done. The appearance of the text should be neat. Select fonts that are normally seen on a website. Try not to select fancy fonts. Try to highlight important matters and points in a tasteful manner.  Remember the appearance can make or break your sale. No one would buy an item that is presented in a shabby manner. An untidy appearance also creates a negative impression of the seller.

3)      Title: eBay requires the seller to give a title and a short description of the product. Be sure that the language used is simple and free from grammatical mistakes. One should bear in mind that eBay attracts all kinds of visitors. Hence the description should be such that it is understandable to everybody. Similarly, the title should be short, yet informative. A reader should be able to make out about the item after reading the title.

4)      Picture: ‘Picture speaks a thousand words’ is an oft-repeated phrase. Be sure to include a descriptive picture. A picture lets the prospective buyer to get a feel of the product. The buyer gets a good idea about the item that is being offered for sale. Imagine a wall unit being offered for sale, but there is no picture of it. Will you prefer buying it? Most of us will say ‘No!’ Remember to get a nice picture of the item that you wish to get listed on eBay. The picture should be clean, focused and taken in lighted conditions. Hazy, unfocussed and dimly lit pictures are a strict no.

5)      Show it, don’t tell: If you are selling used items; make sure that you give a good description about the condition of the product. Do not use ambiguous sentences such as ‘almost new’, ‘a bit damaged’ etc. If it is damaged a bit, then tell it in concrete sentences. For e.g., scratches on the rear part, scrapped from the left corner etc. This will give the prospective buyer an idea of the extent of the damage. It will also increase his confidence in you and will help you to sell the product more effectively.

6)      Be clear about the accessories: If the product you are selling comes with certain accessories, make sure that you mention whether you are offering the accessories or not. Do not keep the buyer in the dark. Doing so will give a bad name to you. For e.g., if a certain mobile phone offers accessory like head set when purchased from a seller, and if you are selling the same model as a second – hand, be sure to mention whether or not you are offering the head set. This is a great way to arouse buyer confidence that will go a long way in selling the product. Furthermore if the product you are selling does not include accessories, then try to add some to it. People are always willing to pay a bit more for added value. For e.g. if you are selling a chess board then adding a chess board stand can dramatically increase your profits and chances of selling. Its all about staying ahead of your competition and this technique alone can really help you to beat all the competition out there.

7)      Be specific: Include details such as guarantee policy, return and exchange policy, shipping details, in straight and clear terms. The prospective buyer should not have any confusion. Remember that eBay has a system wherein buyers leave a feedback.  A positive feedback will help you to sell other products effectively on eBay.

8)      Time the listings: eBay requires the sellers to list the timings for the opening and the closing of the bid.  One must be careful of the timing of the listings. It is no use if you time the listings such that the target market is not awake. For e.g. if you the target buyers for your product are located in USA, one must time in such a way that the maximum number of Americans are on the Internet during that time. Also remember, most of the bids are placed on the last day and more importantly at the last hour. Keep this factor in mind before deciding upon the timings or else you will lose out on good or high bidders. There have been many studies and a lot of research has been done in determining the best timings for your listing. Whatever you decide just make sure that you end up your listing during busy hour which normally is between 7:00pm to 11:00pm

9)      Flexibility in receiving payment: Make sure that you have specified your preferable mode of receiving the payment. eBay offers a lot of options. Be flexible. If you keep on insisting on PayPal, you might lose a highest bidder who can make payment only through a check or money order. Keeping your options open will certainly help you maximize your profits.

10)  Be agile: Be quick and agile while delivering the goods. Since the buyers can leave a feedback, a laxity shown by you in the final stages can hurt your credibility and might force the buyer to give a negative feedback. Also pack the item carefully. Nobody is going to accept a damaged product. It will be a waste of the buyer’s as well as your time and efforts. Do remember that someone who has purchased from you in the past and had a great buying experience is more than likely to purchase from you again, therefore providing a timely delivery and a well packaged product would most definitely result in many repetitive customers.

These are some of the main points you should keep in mind if you have to carry out a successful sale on eBay and maximize your profits.

© 2005, Wholesale Pages UK. All rights reserved.

William King is the director of Wholesale Pages: http://www.wholesalepages.co.uk, Aid and Trade: http://www.aidandtrade.com, Daily Trader: http://www.dailytrader.com and Pakistan Property Portal http://www.zameen.com/. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Dropshipping is a type of retailing where the retailer does not keep goods in stock, but instead passes the customer’s order and shipment details to the wholesaler, who then dispatches the goods to the customer directly. The retailer makes their profit on the difference between the wholesale and retail price. Some retailers may still keep “show” items on display in stores, so that customers can inspect an item similar to those that they can purchase. Other retailers may only provide a catalogue or Internet presence.

Drop shipping can occur when a retailer receives a single large order for a product. Rather than route the shipment through the retail store, the retailer will arrange for the goods to be shipped directly to the purchaser.

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By far, postcards are the most widely used marketing tool by any business owner today. Postcards are considered to be most effective basically because your target readers don’t need to open anything before they could get to what you have to say in your postcard.

However, when starting your postcard printing project, one of the basic things you have to consider is your budget. No matter how you want your postcard printing design to get excellent results, you have to shell out a certain amount. Let’s face it; such things like designing your postcard printing would mean more price. You get what you pay for. And postcard printing designers don’t come cheap. In fact, they are often one of the most expensive parts of your postcard printing project; next to the printing job, that is.

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One of the most significant elements in every marketing campaign is your print poster print. And the best way to get high visibility is to have full color posters for your promotional print materials. In order for your posters to stand out, you need to have not just one or two, or even three color printing, but full color printing.

When you are designing your posters and picking out the colors to use for your full color poster printing project, the first question you need to ask yourself is this: what colors should I choose that would be the right ones for my business image and identity? Most often than not, your color choices would set the mood and affect the way your prospective readers look at your poster printing pieces. And often, your target readers have varying ways of reacting to a particular color. While others may be acceptable with certain shades; others may have a more disagreeable reaction on the same color used.

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What constitutes great brochure design, and what’s not? When is too many too much?

When you want to attract attention, the most probable thing that you will do is to put as many elements as you can in your brochure printing design. Let’s face it; we believe that more elements mean more attraction. If we want to get attention and have our brochures stand out, we usually dazzle and amaze with flashy graphics and brilliant colors.

As appearance is everything when it comes to brochure printing, we tend to associate great design with too many elements. But why do our brochures get dumped time and again? Everyday, we receive one-too-many printed materials. Brochures, catalogs, postcards, and pamphlets- you name it and we have it in our mail boxes. And all of these print materials compete for our undivided attention. Hence, your brochure’s impact must be so that its effect on your prospective clients should be direct and instant. One more second and you’ll lose the chance to get your target reader hooked. One more second and it’s the garbage bin for your brochures.

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Nowadays there are lots of ways to quit smoking. There’s always been ‘cold turkey’ of course and for a long time, hypnosis and acupuncture have been used to reduce nicotine withdrawal symptoms and make it easier to quit; but now things don’t need to be so brutal. You can opt whole-heartedly for one of these choices or adopt a bit of a mix ‘n’ match approach. The choice is yours so let’s look at the options.

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Two heads are better than one. Or more appropriately, two strategies are better than one. This principle is so true with postcards marketing campaigns. Instead of utilizing just one medium to serve a common purpose for your postcards marketing campaign, why not choose two instead. No doubt you’ll accomplish more than utilizing just one form of advertising.

With the advent of technology, it is no surprise that many business owners and marketing experts are combining postcard printing with that of the website. Below are some of suggestions to help you optimize the combined power of postcards marketing online and offline:

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If you are pursuing a technical qualification or are just out of technical school, chances are you may feel bewildered in the technical world that lies beyond your college gates. Therefore, when it is time to go job hunting, it will be sensible to study the market before putting your best foot forward and selecting your career.

Despite the rapid changes in the industry’s paradigms, techies continue to form the backbone of any industrial organization. In the earlier days, techies were generally associated with the manufacturing industry and blue-collar responsibilities. However, the advent of the silicon age has given new meaning to the responsibilities that most techies handle and has changed society’s perception of technical jobs.

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