Business Strategy TBC

As I have written before, investors are risk managers and are very careful and selective in what companies they make investments. Now that you have a list of investors that you are contacting for your company, you need to prepare to answer their tough questions. Investors will want to know why they should invest in your company. It can be very difficult to convince them if you dont have everything ready. Furthermore, you need to have to answer the three major questions that are mentioned below correctly. This is not easy to do and I highly recommend hiring legal counsel and accountants to get all the legalities and numbers correct before you begin to meet with your investor.

How much capital do you need and where will it go? This is the question that when answered right is the million dollar question. Investors want to see how the money they invest will be spent. You must convince the investor that your management can manage the money that is invested correctly and efficiently to generate the revenue and profits that the investor is looking to get from his investments in your company. The point is clear. He wants to see numbers. This is why I highly recommend you hire an accountant who can manage the money properly. You also need to have a plan laid out with milestones that are set which the investor has to agree with and you need to give an approximate time when each of these milestones that are to be met.

Once an investor finds that all the answers to the three questions are correct, he will give you your investment in a series of tranches. Each tranche will be given on some set conditions, which are all set to meet each of the agreed upon milestones. This is why you need to be good with your numbers, and your accountant should be competent in budgeting the money. With every tranche, you need to have a percentage for employee and staff salaries (which also includes the salaries of all the management), product development, real estate, etc. If your numbers are not right or realistic, you will not get funded.

What is the forecasted valuation of your company? This is a question where realistic numbers and projections really count. A companys valuation is basically the projected value that a company can gain in the future as it functions in its relevant market. Though investors love to see high figures, its not wise to hype up your figures and have a higher than realistic numbers. Investors can see right through that. For example, your relevant market may be a multibillion dollar market, your company will not be worth billions of dollars, at least not for a while, unless your product or service meets a demand that has not been met. This case, however, is rare. You could make a few million dollars, but your company will not have the same value as the entire market, thats impossible. So how can you get the right answers for this question?

When you are preparing your companys valuation data, you need to have projections that are as accurate as possible and you need to be prepared for how to answer the investor when he asks if your profits drop below ten percent. This is very important, because investors have their market analysts who constantly analyze markets and are always on top of the latest market news and forecast the future based on current market trends. You need to do the same and you should have people who can analyze the markets just as effectively as the investor does. You need to be able to see eye to eye with the investor. Being well prepared for this question can give you the biggest chance of winning that funding.

How do you plan to exit? What do you mean by exit? Well, investors like to invest in a company for a certain period of time, say between five to seven years and then they want to exit and collect their profits. This is why you need to prepare an exit strategy. There are all kinds of exit strategies available, but even though they are needed, you should think more about building a valuable company than having an exit strategy. Investors can see the difference between an entrepreneur who wants to found a company simply for the sake of building a modest company and then selling it and an entrepreneur who wants to have a serious company and wants to be with this company for the long haul. This type of entrepreneur is more valuable to the investor, because a company that generates value and equity will provide greater profit for the investor and make the investor more interested in funding this entrepreneur. Furthermore, a company that generates value over time can also require less liquidation because the profits can be so big that there will be enough pie for everyone, both the investor and the entrepreneur. After all, an entrepreneur starts a company to have something for himself first. Investors are there to help the entrepreneur and to gain a profit from their investment from the entrepreneurs company. Investors have the same thing in common with entrepreneurs, that they both want to make money, the difference is that investors after a particular time period, will want to exit the company through some of the following strategies.

IPO or also known as an initial public offering is when a company prepares to go out to be publicly traded in the stock market. This can be a rather tricky exit strategy because there is a certain kind of capital involved in executing this strategy. When a company prepares for an IPO, it will need to get a special financing known as mezzanine financing.

Management Buyout is another common exit strategy that companies can liquidate. This exit strategy is when the management of two companies work together with the ultimate goal of the management of one company first gaining control of the other company by working with the management of that company and eventually buying that company out.

Leveraged Buyout is an exit strategy where the company is also bought out by another company, but in this case, the buyout is leveraged by the buying company from company debts and other financial deficits.

Whatever the exit strategy you want to go for, you need to keep in mind that your company should first and foremost generate value. That should be your first objective, and how the market goes and how your company manages in the market should determine your outcome.

Information technology is the backbone of the e-business. The electronic business received a boost with the emergence of web development technologies and the popularity of Internet. As a result, the electronic business has grown further and matured over the years. The World Wide Web has brought business and the resultant competition at an international level. The online business has opened its portals to the entire world. Consequently, the market has transformed into an open market system.
A latest technology based electronic business can include supply chain management as well as e-mail marketing. There are a variety of applications employed for the purpose of promotion of online business. However, the supply chain management and electronic mail promotion are the two vital kinds of online business. In case of supply chain management, an entrepreneur uses online strategies in order to coordinate between the wholesalers as well as retailers. There are several types of computer programs designed in order to effectively manage the whole process of coordination between a wholesaler and a retailer of the products. A marketer displays a web page on which the products and services of the company are promoted. You can promote and sell your products in bulk with special offers and easy payment system. Such things make the purchase of the product by the retailers easy and convenient. There are many software programs such as Enterprise Resource Planning, Electronic Data Interchange and much more. A marketer can exhibit the display of products such as automobiles, gizmos, gadgets, eatables and much more. Another way of promoting online business is by using email marketing. In this kind of promotion, one can use electronic mails in order to get in touch with the clients. The results are also traceable and effective. A marketer can even derive instant response from a customer and directly obtain feedback for the product or service related to an organization. You can even promote the brand image of a company among the target customers. These are some of the effective and efficient ways to market the business of an organization. You can reap beneficial results and fruitful opportunities through effective promotion of enterprise over the Internet.

Many types of MLM opportunities require you to build a business before they promote you. I would like to address these types of business and how a strategy of stacking can be good and bad.

The main purpose of building a network of people below you is to build a residual monthly income. In doing this you need distributors below you who push whatever your company is selling. Every time there is a sale you get a small percentage of that sale usually depending on how far away that distributor is in relation to you. This is what network marketers want in a healthy MLM downline.

So then the issue comes up: Do you try and promote as fast as you can or do you try to build as wide as you can?

Stacking
You will be able to promote yourself easier by placing key distributors to where they are needed. You don’t have to guess. There is less random growth and you are able to grow deeper. Some companies pay your more residual the further away the distributor is to you so going deeper is better. This is only a good option if this actually helps you to promote.

Cons: You will lose the direct commissions as you will be giving them to the distributor instead of you. Some companies have less residual the further you are from you. Building deep cripples the width of your organization and you will have less people in certain high dollar residual levels.

In the long run you would have gotten less by having a tall organization than a wide one. Many companies cut you off after a certain number of levels. If you build deep you run the risk of having new distributors placed outside of the levels you can collect from and essentially lost that residual for that distributor. If you would have placed that distributor directly under you then the following distributors will not be lost in your organization.

EX: You got a power distributor (leader). Your company cuts off residuals past level 5. You want to promote and you place this leader under one of your level 3 leader so that you can help them while helping you promote. The leader is now in your level 4 and giving you some good residual. This level 4 leader then starts to build their business and they then sponsor 3 which are your level 5. These level 5 distributors then get 2 distributors each. These 6 new distributors are now in your level 6 and you get nothing form them.

If you would have placed that leader under you in level 1 then that leader would have gotten you three level 2 distributors. Those three level 2 distributors would have then gotten you six level 4. Since leaders get many distributors over their life time and down their downline it is risky to place a leader too far down the chain. since teams generally grow wide and continue the further they go then building too far down in stacking could hurt you.

Or course this all depends if the company cuts residuals after a certain level and if you get more or less depending on where they are in relation to you. Over time your organization will eventually go down very far so if you are in a plan that cuts off levels very quickly or has decreasing residual payouts the further you go then that might be an indication that the compensation plan is lacking.

If the higher residual is paid higher when closer in level to you then that denotes that you must do more work to get higher residuals. If the residuals are higher the further away they are then that denotes that the company wants you to have a deeper and wider team. Which one takes more work? One that relies solely on you get the residual or one that depends on the organization below you to get you what you want.

If you train properly and start turning distributors into leaders then your organization will take a life of it’s own and people will start jumping on in waves. Marketing multilevel business can be replicated if the MLM downline can repeat the traffic and conversions over time. If every one of your distributors built their organization by stacking then you will have a very tall but narrow organization. That will not build you a very large monthly residual.

You are a seed. Build it wide and let it grow like a root system. The wider it gets the more you profit, but at the expense of what you could have helped your own downline grow theirs. Regardless of how it’s build you will need a lot of targeted traffic and will need a lot of MLM leads to keep the business running at a high gear.

It really depends on how your compensation is setup and your team’s MLM recruiting efforts

Would you not make an effective marketing plan to flourish your business? Would you not prefer a big ad board in the area where there is a lot of traffic? If you are a business owner, you will surely reply positive to these questions. This means you certainly need a marketing strategy to get customers and boost your profits and longtime relationships. Taking this concept in a bit wider manner, when you put your business on the Internet, you need an effective Internet marketing strategy that will fetch more traffic to your site and thereby boost your popularity, reputation, and relationships with the varied customers.

Just like the conventional marketing strategy that results in the growth of your business, an effective Internet marketing strategy is inevitable for your business to prosper online. However, the saddest fact is that a majority of the businesses on the WWW have ignored this most beneficial marketing tool, the strategic planning for their existence and growth. It is due to the misconception that everything right from the designing of the Web to SEO is the role of the Web designer. This is the main reason why you might still face the problems of low traffic, minimal sales, zero subscriptions to updates and newsletters, and less conversion on your blog or forum.

If your Web site is the one that is facing these problems, you perhaps need an effective Internet marketing strategy formulated by a professional. Such a strategy has the power to position your site such that more and more people feel like accessing and going through your site. Marketing your business on the Internet via an effective strategy brings forward many benefits that the offline or traditional marketing do not offer. One of them is the variety of convenient as well as efficient marketing methods available to reach almost everybody around the globe. These methods include newsletters, blogs, social networking sites, e-mails, video, audio, and feeds; which are replacing the popularity of traditional methods such as newspapers and radio.

The most specific benefit of the Internet marketing strategy is its ability to target the required demographics. If you choose for online marketing, you can reach your specific customers as per the location, gender, age, occupation, income levels, and education levels. For example, if your business is into the cosmetics, you will definitely target women, while students will be your target if you are operating an online academic bookstore. This is the most admired benefit that no business would like to ignore.

Another vital benefit is that such a strategy facilitates dynamic changes. In traditional marketing, once you have given the ad on TV or in a magazine, you simply cannot change it. However, online marketing strategy allows you to change the words or audio easily whenever you like to offer the updates on time. The two more equally important benefits of the Internet marketing strategy are tracking the performance of the site in real time and conversing with the client instantly. In short, the conclusion is that the best strategy is the one that is efficient, effective, and easy to implement and meet your business goals.

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Is there a Zija scam? Many people are on the net everyday hoping to find a strategy to get extra money from home, not as a luxury, but in this economic climate as a way of surviving.

Unfortunately, there are plenty of scams online that many fall prey to. For your sakes, I have concluded the research on Zija International so you can establish for yourself if indeed a Zija scam exists.

Zija International was started in 2004 by Ken Brailsford and to begin with marketed their item by way of retail stores, however in 2006 they changed their business design to that of multilevel marketing.

The Zija vision was to assist people to have a healthy lifestyle. Zija markets liquid nutritionals, weight-loss and skin care products.

The staple product comes from a tree called Moringa, which they reference as “The Miracle Tree.”

This plant is stated to include minerals, proteins as well as antioxidants. The assertions are that this plant is so effective that it could aid over 300 wellness ailments.

Do the products actually do just what they claim? The only route to know for certain would be to test it out for yourself.

Why Are So Many Claiming A Zija Scam?

There are several grievances that Zija is simply another pymarid scheme. Allow me to state clearly, these statements are not accurate.

If the organization were a pyramid scam, it would not be going solid for seven years now. The majority of multilevel marketing companies go out of business inside the first two years.

There are several reasons individuals claim that Zija and many other mlm businesses are frauds, yet the main cause is the fact that these individuals at one time a part of Zija or know an individual who was, and they or that person was unsuccessful.

Not only did they fall short, in fact, they wound up losing plenty of cash.

Exactly why did they lose funds?

Once more, there are several factors. Simply, most didn’t put in the efforts required. A mlm home based business just isn’t a get wealthy quick plan. It will take commitment and working hard.

Frequently too many people deal with it as a hobby and not a genuine business opportunity.

On the other hand, some assume that all they have to do is tell family members and friends about the Zija products and they will grow to be rich.

Drastically wrong!

No matter how wonderful you believe the Zija items are, they do not promote themselves.

Think I’m wrong? Ok, put out a display of the products inside your driveway and see how many people come knocking down the door.

So mainly because people join Zija International, they run and inform their family and friends about how excellent the products are, they exhaust their warm market, they end up having an untouched supply of unsold products, lose income and then they go and shout of a Zija scam.

Being candid, 97% of folks in mlm just make less than $10 a week. That’s the truth overall.

Yet the reason doesn’t lie in a Zija scam.

The exact cause is simply because they never ever learned to promote their Zija business successfully.

People simply overlook the need to educate themselves about powerful internet marketing techniques. If you are planning to be prosperous in Zija, you have to understand the way to establish your home business on the web, as you will quickly discover that the outdated methods of speaking to family and friends will at some point fail you.

Zija can be a fantastic home business opportunity, if you are utilizing the power of on-line marketing.