Branding and Promotion in Business

  Branding and Promotion allows a business to present itself in an identifiable way to the consumer that allows them to leave a slight lasting impression of their existence that should aide repeat purchase or identification of their qualities. Types of Business Promotion Advertising – The most common way of increasing brand coverage is through advertising, because of the potential reach and scale of platforms advertising is available on it is very easy to meet the metric a business desires, this also has become more easy to segment further by having online advertising to deliver ads on a uniquely measurable and… Continue reading Branding and Promotion in Business

How Customers Associate Quality with a Brand

Within any business there are multiple factors that a customer can imprint on to recognise a brand and associate with quality. Businesses can use the customers intuition to their advantage, targeting on the key aspects of a quality product in order to maximise return. Here is a list of the common points a business can tailor in order to maximise their revenue;   Profitability, Businesses must decide how much profit each product or service should undertake, whether it be a large return or a small one. Customers may be willing to buy a product purely on its premium price point.… Continue reading How Customers Associate Quality with a Brand

Capacity Utilisation

Capacity utilisation within a business can be easy or hard to calculate, for a printing shop, it is easy to calculate how many sheets they can produce per hour for example and in a metal fabricators, it is easy to calculate how many sheets of metal they can produce per hour, however for a company that has varied demand, it can be very hard to predict how much the business should utilise its capacity, a clearly noticeable example would be an understaffed restaurant, although they have staff working the shift, it is clear that they did not account for the demand… Continue reading Capacity Utilisation

Sources of Finance

What are Sources of Finance There are three different sources of finance, Short Term, Long Term and Medium Term. The most popular way of attaining funds for a business is through equity (money flowing into the business) with over 39% of businesses using this method, examples of this would be retained profit or capital from shares. Short Term (30 days or less) Medium Term (less than 6 months) Long Term (6 months+) Sale of assets, selling business assets, such as product stock or vehicles. Overdrafts Lease-Back, Selling company property, then leasing it back. similar to rent to own, however the business owned… Continue reading Sources of Finance

Business Failure

Businesses just starting out have a generally low rate of success, 50% of businesses fail within the first two years. Some of the common causes of business failure are avoidable, however there are some examples that businesses may not predict. Could Leadership Cause Business Failure? Leadership in a business is vital to its survival, but failure to identify where they need to straighten up and fly right again could mean that a business is left behind, unable to correct it’s course. Loss of Control, Just short of divorce of ownership, an owner unable to make effective and authoritative decisions could… Continue reading Business Failure

Trade-offs and Opportunity Cost

What is Trade-offs and Opportunity Cost? Trade-offs are choosing one thing over another, if you choose to invest in paint over pencils, your opportunity cost, is that you can no longer colour with pencils. This is a poor example, so lets look at some real data so we can get a good understanding of what opportunity cost is really about, and for that we need an example. Nails and Hammers LTD. A company, called Nails and Hammers LTD, produces hammers and nails, they have a good reputation, but are not really known, they also manufacture their hammers cheaply and therefore some… Continue reading Trade-offs and Opportunity Cost

Advantages and Disadvantages of a Public Limited Company

What is a Public Limited Company? A Public Limited Company is a business that has decided to offer it’s shares on the public stock market. The Stock Market is where anyone can invest in a Public Limited Company. These are usually high value, large businesses that can have massive profits, and offer dividends to those who invest. In order to become a Public Limited Company, PLC, you need; At least two directors. A Secretary And you must float at least $50,000 shares on the stock exchange, to become a PLC. Unlike other businesses, a PLC is often owned by a… Continue reading Advantages and Disadvantages of a Public Limited Company

Understanding Different Business Types

There are many business types of organisation, these all have their advantages, so it is important to know which is better for which task, otherwise a company may find some aspects harder than they should be. The main business types are; Business Types [icon name=icon-building] A Sole Trader is a business owned by an individual, It can have many employees. Common sole traders could be corner shops or man-with-van businesses. A Partnership is a business owned by two or more people (usually up to 20), the ownership of the business is split between them. A partnership may be a small manufacturing company or some… Continue reading Understanding Different Business Types