Tag: Business

What It Means to Be an Entrepreneur.

October 15, 2020 (updated October 15, 2020) Published by


The road to entrepreneurship is often a treacherous one filled with unexpected detours, roadblocks and dead ends. There are lots of sleepless nights, plans that don’t work out, funding that doesn’t come through and customers that never materialize. It can be so challenging to launch a business that it may make you wonder why anyone willingly sets out on such a path. Despite all of these hardships, every year, thousands of entrepreneurs embark on this journey determined to bring their vision to fruition and fill a need they see in society. They open brick-and-mortar businesses, launch tech startups or bring a new product or service into the marketplace.
An entrepreneur identifies a need that no existing businesses addresses and determines a solution for that need. Entrepreneurial activity includes developing and launching new businesses and marketing them, often with the end goal of selling the business to turn a profit.
If you want to become an entrepreneur but worry you don’t have the money for it, your finances don’t have to stop you from achieving your goals. Many entrepreneurs seek the initial funding for their pursuits from external sources such as angel investors, who may provide entrepreneurs with capital to cover startup costs (or, later, expansion costs.) If you can demonstrate a high growth potential for your business, you can also turn to a venture capitalist, who offers capital in exchange for receiving equity in your company.
An entrepreneur who regularly launches new businesses, sells them and then starts new businesses is a serial entrepreneur. Additionally, although the term “entrepreneur” is often associated with startups and small businesses, any founder of a successful household-name business began as an entrepreneur.

Contact Korsell Corporate Consult for your consultancy services to help you grow your business .

THE PSYCHOLOGICAL CONCEPT OF A BUSINESS.

September 10, 2020 (updated September 10, 2020) Published by


Psychology has a great impact in any business. Psychology is critical to the workplace. It helps managers at all levels of organizations select, support, motivates and train employees. It also helps businesses design products, build better workspaces and foster healthy behavior. Psychology helps a lot in business because it can explain why workers act the way they do. With this kind of professional insight, it helps improve their decision making, stress management and behavior based on understanding past behavior of workers to better predict future behavior. Psychology improves communication skills at the workplace. Managers tend to understand how their workers think and behave while communicating with others. With the help of psychology workers can comprehend gestures and actions which would make communication even easier.
Emotional stability is a very important aspect of the psychological concept of a business. Regardless of the kind of business one specializes in, one must understand that they will likely end up in a situation that requires interacting with the public. Handling staff issues in the human resources department or interacting with adult clients with mental health challenges requires a solid emotional foundation. In spite of the stress and emotional environment, you will be asked to stay calm and remain neutral as a professional. Facing highly emotional situations may be a routine part of your job.
Solid sense of personal ethics: Confidentiality is the rule rather than the exception when dealing with crucial information about the client or conditions related to the client. You will be entrusted with some very personal information by clients, and it will be your responsibility to safeguard the information while ensuring that your clients are safe from self-harm and are unable to inflict harm on others. This will require a delicate balance of common sense and respecting confidences. If you end up in psychological research, ensure that your processes and results are free of biases and inaccuracies as your research could have an impact on human lives.
In today’s modern competitive business landscape, it is vital that organizations understand the motivations that drive consumers and employees alike. Relying upon psychology, businesses can identify effective methods for understanding and interacting with their employees and their customers. Psychologically-driven strategies underlie areas such as human resources, advertising, public relations and marketing, market research, communications, consumer insight and career counseling. Where people are involved, psychology is involved. Applied psychology is a fundamental tool for understanding human behaviors, thoughts motivations and attitudes.
The use of psychology in business can allow you to motivate your employees, hire intelligently, expand and grow, negotiate contracts effectively, improve your staffs performance, market better, bring in more customers, and realize your goals.
Contact Korsell Corporate Consult to provide you with consultancy services to help you understand and grow your business.

BUSINESS OPPORTUNITIES TO CONSIDER.

September 2, 2020 (updated September 2, 2020) Published by

Ghana is one of the countries with the fastest growing economy in Africa. Now you may want to know the potentials and fundamentals of doing business in Ghana. With a strong mineral resources sector, cocoa industry, consistent government policy, recent oil discoveries, friendly business environment and a free trade zone for foreign companies; Ghana is definitely a country to beat in the future.

But despite the rapid growth and reformation that the country is enjoying, the country is still falling short in many aspects. And this has opened the door of opportunities to entrepreneurs who are smart enough to identify these loopholes and deal with them. If you are an entrepreneur planning to start a business in Ghana, below are the 10 lucrative business opportunities you should explore:

  1. Waste management

Although there are a number of waste management companies in Ghana as of present, the country is still battling with more burden of filth than these companies can handle. To worsen matters, many Ghanaians are still in the habit of throwing refuse into drainages. You can make cool money in Ghana if you start a waste management business that offers to help people handle their wastes and refuse.

  1. Herbal medicine

Ghanaians are now realizing the fact that not only orthodox medicine is effective in combating various ailments. There is increasing demand for herbal medications, and this has made herbal medicine more popular in Ghana. The good news is that almost all the medicinal plants that are used to handle various ailments can be found in Ghana.

So, Ghana is a fertile ground for flagging off a business that sells herbal medicine. If you go into this business, you will most likely get quick returns because herbal medicine is cheaper than orthodox medicine.

  1. and farming

Food is one of the basic needs of man and anyone that ventures into food production is sure of a never ending demand. The steady growth of Ghana’s population due to influx of investors, students, tourist, etc will only help explode the demand for food.

Ghana has soils that can support a vast variety of food crops. And yet, the agricultural sector is one of the most underutilized in the country. The Ghanaian government hasn’t done enough to explore the sector, which comprises only a few private companies. One can liken the agricultural industry in Ghana to a gold mine, as there’s always a high demand for agricultural produce.

  1. Oil and gas

Following the discovery of oil in Ghana, the country is set to join the list of petroleum exporting countries. This oil sector, still very young in Ghana, is presently begging to be explored extensively. And there’s almost no limit to the profit that players in this sector can make. Though starting an oil and gas business could be very expensive, you can venture into it if you have what it takes.

  1. ICT

Internet access in Ghana is still very scarce and the few internet facilities available are far below average. Ghanaians are presently craving high quality internet services in their homes and offices. And they have no problems paying for such — provided the quality is kept consistent. So, the ICT sector in Ghana is still underexplored, and you can make huge profits by launching a business that provides quality internet services.

  1. Food production

Because Ghana is home to many agricultural food products, it offers the much-needed raw materials for food processing companies. And due to the fact that food is always in high demand, starting a food processing business in Ghana is a smart and lucrative move. Better yet, you can start on a smaller scale by launching a small business or restaurant that sells foods and snacks. This business is one of the easiest to start, and it’s very profitable, too.

  1. Transport services

Aside food, transport from one place to another is another necessity. And the reality in Ghana agrees with this. So, if you are planning to start a business in Ghana, but you are yet to find a promising opportunity, the transport sector is an option. You can start a business that renders transport services, either on a small scale with few vehicles that ply short routes or on a large scale with many large vehicles that ply long routes.

  1. Real estate

Though an expensive sector to break into, the real estate business in Ghana is, as is the case in most countries, very lucrative. Following the discovery of oil in the Western part of Ghana, the nucleus of development and industrialization is gradually shifting towards the region. So, you will probably make more money as a real estate investor if you focus on the oil-rich region.

  1. Microfinance

There are many business opportunities in Ghana, and more people are getting to realize this with each passing day. This has led many business-minded Ghanaians (and foreigners, too) into various small businesses.

However, many small businesses are yet to launch and many existing ones are yet to expand — both due to lack of funds. Therefore, there is high demand for microfinance services. If you have a background in banking, especially microfinance banking, you’ll make money and at the same time help develop many small businesses.

  1. Tourism

This is another big industry in Ghana. Every year, the country plays host to many foreigners who come to behold the various tourist attractions in the country. The tourism industry in Ghana is another sector you can start a business in if you want huge gains in the long term. One glad fact about this business opportunity is that even foreigners can launch it easily.

At Korsell Corporate Consult we provide business consultancy. Contact us for your business ideas,business training and fund raising.

FINANCING SOURCES FOR YOUR STARTUPS

September 4, 2019 (updated September 4, 2019) Published by

As thrilling as it is to start a new small business, the stress can be just as insane. Especially, if have to start looking for sources of finance for your startup. Because beyond the creative thinking and careful planning that go into coming up with a winning business model, you as the business owner are likely also facing the arduous task of finding the money to make it all come to fruition. It is also essential to remember that careful planning is key when you wish to raise finances. You need to: know exactly how much money is required, consider the setup costs, the investment needed, working capital, and growth and development and  evaluate how long you need these investments for and what security you can offer. Here are different sources of funding to consider when starting your business;

Personal Investment; self-funding from your savings is always preferred. You have to make some personal investments, which could include your savings or other assets. You cannot start a business without putting something of your own into it. In addition, others will hesitate to give you money if you don’t contribute. By not investing yourself, you will demonstrate your lack of commitment or even confidence in the venture.

Angel Investors; this category refers to retired company executives or wealthy individuals who make direct investments in startups and small firms. These investors are typically leaders in their respective fields. They contribute by means of their network of contacts and experience and also provide their technical and management knowledge. However, you should know that in exchange for their investments, angel investors might monitor your startup management practices and might want a say in your business.

Venture Capital; this funding source is ideal for specific startups that have a high growth potential. The venture capitalists basically invest in your startup in exchange for equity, so you have to share ownership with an external party. Venture capitalists also expect a high return on investment once the business is properly established. Always look for venture capitalists that have a background in your business’s industry and can bring relevant knowledge and experience.

Business Loans; business loans are the most common source of funding, not only for startups but also for small and medium-sized businesses. Banks and other financial institutions offer many types of business loans in return for regular interest payments. They will need you to have a solid business plan in place. Your plan should show potential and have numbers to back it up. Having a good idea is not enough; you need to have evidence to support it. In some cases, banks might ask you for something as collateral, but every situation is different. If you don’t offer collateral, they might charge you a higher rate of interest but this will help you in avoiding bad credit too.

Crowdfunding; as the name indicates, crowdfunding refers to getting funds from a crowd, i.e., the general public. Entrepreneurs typically use this option when developing a product that’s essential to people and not available elsewhere. There are crowdfunding websites that enable members of the public to pool their funds to help various causes. Startups can use any of these sources of finance to launch their operations and offer quality products and services to people

Grants and Subsidies; bringing innovations to light is not always easy. As a result, some government agencies provide support to budding businesses. Access to this funding allows you to cover different expenses, such as marketing, research and development, equipment, salaries, and improvement in productivity. Technically, governments give grants to startups unconditionally and you don’t have to repay them. But you cannot use the grant money for any other purpose, or you will be vulnerable to legal action. Once a government source has provided you with funding and you fulfill the terms of the program, that agency might offer you additional funding in the future.

Now that you’ve seen a wide variety of options available for financing your small business startup, it’s critical that you carefully consider the pros and cons of each option before committing.

Speak to us at Korsell Corporate Consult Limited, let us assist you with your business planning Call:  055 391 9618 or Email: in**@*********************lt.com

HOW TO START A SMALL BUSINESS

August 26, 2019 (updated August 26, 2019) Published by

When you consider some of the most popular reasons to start a business, including having a unique business idea, designing a career that has the flexibility to grow with you, working toward financial independence, and investing in yourself.  But not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years. So you may be in for a real challenge when you decide to take the plunge, ditch your day job, and become a business owner. The stage is often set in the beginning, so making sure you follow all of the necessary steps when starting your business can set the foundation for success.

Do Your Research; most likely you have already identified a business idea, so now it’s time to balance it with a little reality. Does your idea have the potential to succeed? You will need to run your business idea through a validation process before you go any further. In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the market wants.

Make a Plan; you need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses. If you intend to seek financial support from an investor or financial institution, a business proposal is a must. This type of plan is generally long and thorough and has a common set of sections that investors and banks look for when they are validating your idea. If you don’t anticipate seeking financial support, a simple one-page business plan can give you clarity about what you hope to achieve and how you plan to do it. In fact, you can even create a working business plan on the back of a napkin, and improve it over time. Some kind of plan in writing is always better than nothing.

Plan Your Finances; Starting a small business doesn’t have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spreadsheet that estimates the one-time startup costs for your business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc.), as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, etc.).

Choose a Business Structure; your small business can be a sole proprietorship, a partnership, a limited liability company or a corporation. The business entity you choose will impact many factors from your business name, to your liability, to how you file your taxes. You may choose an initial business structure, and then reevaluate and change your structure as your business grows and needs change.

Pick and Register Your Business Name; your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make sure you think through all of the potential implications as you explore your options and choose your business name.

Get Licenses and Permits; Paperwork is a part of the process when you start your own business. There are a variety of small business licenses and permits that may apply to your situation, depending on the type of business you are starting and where you are located. You will need to research what licenses and permits apply to your business during the start-up process.

Choose Your Accounting System; Small businesses run most effectively when there are systems in place. One of the most important systems for a small business is an accounting system. Your accounting system is necessary in order to create and manage your budget, set your rates and prices, conduct business with others, and file your taxes. You can set up your accounting system yourself, or hire an accountant to take away some of the guesswork.

Set Up Your Business Location; Setting up your place of business is important for the operation of your business, whether you will have a home office, a shared or private office space, or a retail location. You will need to think about your location, equipment, and overall setup, and make sure your business location works for the type of business you will be doing. You will also need to consider if it makes more sense to buy or lease your commercial space.

Get Your Team Ready; if you will be hiring employees, now is the time to start the process. Make sure you take the time to outline the positions you need to fill, and the job responsibilities that are part of each position.

Promote Your Small Business; once your business is up and running, you need to start attracting clients and customers. You’ll want to start with the basics by writing a unique selling proposition and creating a marketing plan. Then, explore as many small business marketing ideas as possible so you can decide how to promote your business most effectively.

Once you have completed these business start-up activities, you will have all of the most important bases covered. Keep in mind that success doesn’t happen overnight. But use the plan you’ve created to consistently work on your business, and you will increase your chances of success.

At Korsell Corporate Consult Limited, we help you with your business planning, strategy document and other custom services. Speak to us now 055 391 9618 or Email: in**@*********************lt.com

HOW TO BE SUCCESSFUL IN RUNNING MULTIPLE BUSINESSES

August 21, 2019 (updated August 21, 2019) Published by

Starting and running a business can be extremely challenging. From marketing strategy to financial challenges to time demands, few things about running a business are easy. For some people, this doesn’t matter. For some, the thrill of launching and successfully running a business beats out all the demands that come with the journey. Some people are born with the entrepreneurial bug. For these people, the excitement and grind of starting and running a business are so motivating they want to do it repeatedly. Some successive entrepreneurs will launch, build and exit the companies they start; others want to continue running their first venture while working on the second or third, fourth, etc. It can certainly be done, but it takes a lot of hard work and dedication to each of your businesses.

These are what you should know to succeed in managing multiple businesses,

Entrepreneurship requires wearing a lot of different hats, you need to be organized and know your priorities to stay on top of things – and that’s just for one company.  According to Emily Miethner, Your biggest priority as a multi-business entrepreneur is prioritization itself. Time management is one of the toughest challenges of running multiple businesses. You need to determine when you’ll spend time on each business and how you will delegate different business tasks. It’s nearly impossible to run multiple businesses without an excellent team helping you manage your responsibilities. In some cases, it may even help to hire an assistant to help you keep track of your different responsibilities.  

Being in the right business location; does your physical business location make sense?  Are you in a good place geographically to recruit and hire top talent? When can you be at the physical business location or office for your businesses? One of the most obvious challenges of opening a second business is not being able to be in two places at once. When you’re at one business, you can’t be at a different location, which means you must make sacrifices.

Harmonizing your brands; whether your businesses are related to each other or in different industries, they have at least one thing in common: you. Even if the connection is not obvious, consumers and business partners can easily discover that you’re at the helm of each company, so you’ll want to keep your values consistent. Running different businesses is a way to bring in money from different sources, but that doesn’t mean your brands need to be complete opposites or work completely separately from one another.

Finding the right staff; it takes a significant amount of work to run one business, let alone multiple companies. However, it doesn’t have to mean more work for you if you hire the right people to help you out. Once you find these talented team members, let them shine. Don’t micromanage. You brought team members on for a reason, so trust them to do their jobs. It’s not a bad thing to delegate.

Learning new things; one of the perks of owning multiple businesses is the opportunity to gain new knowledge and perspectives on how to approach certain business strategies. Learning about new industries and meeting different people may even stir up ideas about future businesses to start.

Getting your timing right for owning multiple businesses; you may be excited at the prospect of launching your next business, but you don’t want to bite off more than you can chew. As with any venture, you need time to devote to this new startup to make sure it succeeds – meaning that your first business should be self-sufficient enough for you to step away from it. According to Stacy Tuschl,” Be careful you don’t jump too quickly to open a second business,”

At Korsell Corporate Consult Limited, we help you with your business planning, strategy document and other custom services. Speak to us now 055 391 9618 or Email: in**@*********************lt.com

Considering Relocation? Read This!!!

August 9, 2018 (updated August 9, 2018) Published by

Every year, the grass on the other side of the fence looks greener to many entrepreneurs, and a change of place looks like the most promising path to growth. So they pull up stakes and move to a new place, where they hope to find better odds for business success than they had in their previous location. They’re in good company. Although no one keeps a count of business moves, given the multitude of valid business reasons for making a move, almost any entrepreneur will, at some time, consider relocating as a way to expand.

Why Location Matters 
Businesses commonly cite five main reasons for moving, according to Sharon K. Ward, an economic development consultant in Allentown, Pennsylvania. These are labor and work force issues, the desire to reach new markets, the need to upgrade facilities or equipment, the desire to lower costs or increase cash flow, and considerations about quality of life. For different businesses and at different times, certain concerns are more important than others, Ward notes. But just about all moves can be attributed to some combination of these issues.

Chief among current reasons for relocation is the need for a suitable work force. You may have a shortage of qualified workers for some occupations, especially those requiring technical expertise. For firms that need specialized employees, it may be well worth it to relocate to an area where you can easily find these kinds of employees.

When a company finds itself in outmoded or undersized facilities, that’s another reason to look at moving. Most businesses start in a small facility, such as the founder’s garage, and then move to bigger quarters in the same city. Later, the business outgrows that location or begins to find fault with its facilities, services, utilities, infrastructure or other features.

Cost Issues 

Cost is a concern in any business decision, and a move can cure–or create–many cost issues. For starters, the cost of living varies widely among cities

But costs involve more than living expenses, and differences in geographic costs have leveled out in recent years. Companies often find themselves forced to compromise between staying close to target markets and choosing the lowest-cost facility.

Quality of Life

An even more intangible issue is quality of life. Companies evaluating relocation often look at recreational opportunities, education facilities, crime rates, health care, climate and other factors when evaluating a city’s quality of life. That’s another reason deteriorating inner cities are losing businesses, as companies seek an improved quality of life elsewhere.

Relocation Results 

While moving carries risks, a move can be one of the best things you ever do for your business. When you move or expand to a new location, the odds are stacked in your favor, who has overseen the selection of new sites for thousands of retail establishments.

But there are no guarantees in relocation, and as many things can go wrong with a move as can go right. They include rushing the decision, focusing too narrowly on a few costs, failing to use available economic development services, ignoring quality-of-life factors, missing important environmental or regulatory concerns, and, believe it or not, failing to plan for future expansion. These mistakes can be boiled down to hurrying too much and trying to do a move too cheaply.

Part of the problem is the complexity of these two issues. There’s no set time for how long it should take to move, Ward says, and sometimes you don’t have a choice. “I’ve worked with companies that made a decision in three or four months because they didn’t have a choice,” she says. Others might expend two or three years in the process, with no better results.

 

Source: https://www.entrepreneur.com/article/81406

THREE STEPS TO SELLING YOUR IDEA

August 7, 2018 (updated August 7, 2018) Published by

Perhaps you’ve got a keen mind for inventing–but not much of a head for business. Or maybe you’re good at both, but you’d rather focus your time on developing ideas rather than launching a full-scale business. Fortunately, there’s an option that suits your needs perfectly: licensing your invention idea. Licensing is simply the process of selling your idea to a company that’ll develop it fully, taking on all the business-related tasks that launching a new product involves. Licensing can also be a great option for those whose financial resources are very limited.

Just as there are steps to starting your own business, there’s a smart way to approach licensing your invention. I break it down here into three main steps.

Step 1: Gather Information
Yes, it’s the information age–which means the more info you’re armed with, the better off you’ll be. Licensing your idea is no exception. Before you even consider approaching prospective companies to sell your idea, be sure you’re clear in the following areas:

  • Know your market. This means gathering as much feedback as possible on your own invention idea. Focus group testing, even among friends and family, is one good way. You should also compile data on similar and competing products–info on what’s out there, what’s selling and who’s producing it, for example.
  • Do some legal legwork. Go as far as you can to determine if your invention is patentable or if it can be produced without infringement on other filed patents. A preliminary patent search on www.ustpo.gov will get you on your way. Also, the more information you can gather about regulatory issues or necessary legal steps, the better.
  • Look into production. Learning about the production process can be extremely helpful, particularly if your invention calls for unique materials or unusual manufacturing techniques.

Step 2: Prepare a Professional Presentation
After you’ve gathered all the relevant information, you’ll need to present it to potential licensors. Along with your most effective tool–a three-dimensional prototype model–you should develop a simple sell sheet to convey all the information you’ve gathered.

Your sell sheet should be a one- or two-page document that clearly states the following:

  • The problem, challenge or need the product meets
  • The product’s features and benefits
  • Your product’s market
  • The legal status of your invention (ie: patent pending, copyright or trademark info)

You should also develop an introductory letter to accompany your sell sheet, which introduces yourself, explains why you’re contacting the licensee, and sets a time when you plan to follow up.

Step 3: Pinpoint Your Targets
You’ve gathered and prepared your information. Now what? Your next step is to determine the most appropriate contacts for this awesome new business opportunity. As a first step, I recommend you create a list of at least 50 prospective targets. As with any type of sales, the more prospects, the better. It’s a numbers game, and most companies will turn you down for one reason or another. Also note that a more focused list will bring you more effective results.

So how can you identify companies that might make a good fit? If it’s a consumer item, it’s as simple as a shopping trip around town. Go to a store where you’d expect to see your product sold and jot down the names of manufacturers who produce similar products. You may also be familiar with many of these companies from your prior market research.

Another way to identify prospective manufacturers is to identify the trade association that serves the industry in which your product will fall. Visit their websites and look for member lists. Some trade associations list the manufacturers scheduled to exhibit at their upcoming trade shows.

Online databases can also be a great resource. Local public business libraries are often linked to database systems that allow you to search for companies in specific industries. And, from your own computer, you can visit www.hoovers.com , a great online database that provides information about many large-sized companies. The site even enables you to find companies that have specific key words in their description.

Step 4: Qualify Your Targets
Once you’ve generated your list of 50 or so companies, you’ll want to prioritize them–or “qualify” them based on which will make a best fit with you and your product. There are a number of factors to consider when qualifying prospective licensees:

  • Size. Large companies are easy to identify and generally have terrific distribution. However, small companies might stand to benefit more from your invention–and often make better prospects. Small companies generally have less “in house” product development staff and are less burdened by red tape and multiple layers of bureaucracy, which can make them easier to deal with.
  • Geography. While you don’t need to limit yourself to local companies, they do offer advantages. Companies in close proximity allow you to leverage any contacts you might have locally, and set up face-to-face meetings (which is always valuable).
  • Similar product line. The closer your invention matches a company’s already existing product line (as long as it isn’t directly competing), the more sense it probably makes for them to take it on–especially if it gives them a product that competes with a rival company.
  • Access to a decision maker. The more easily you can identify and directly reach the decision maker, the more efficient your contact with a prospective licensor will be. (Note: if after several calls you can’t determine who the proper contact is–or get in touch with him/her–you’re better off focusing on other targets.)
  • Company policy. Some companies’ policies for accepting submissions are more inventor-friendly than others.
  • Manufacturer reputation. Find out the company’s track record for working with inventors, and if possible get personal references from those who’ve gone before you.

Step 5: Make the Sale
You’re now armed with information, presentation materials and a hot prospect list. How do you know you’re getting a good deal? Understand there are no set rules or terms when it comes to negotiating a licensing agreement. The perfect agreement is one that gives both you and the manufacturer exactly what you want. Therefore the terms are completely negotiable and can vary dramatically.

However, do keep the following points in mind as you’re negotiating your deal. First, set realistic expectations. In other words, don’t expect a million-dollar deal–it’s doubtful you’ll retire after licensing your first product. Second, go for the gusto. Most ideal for you, the inventor, is to get as much up-front cash, as high a royalty, and as high an annual minimum payment as possible. Of course, the manufacturer will be gunning for less risk–which means a lower up-front payout, lower minimum payment requirements, and as low a royalty percentage as possible. But what exactly do these terms mean, and how can you get the best deal for your invention idea?

  • Up-front payment. This is the money that the licensee pays the licensor up front, before development or sales even begin, for the assignment of the rights. This can be an outright payment, but most commonly takes the form of an advance against (future) royalties. The amount of up-front payment varies. However, it’s not unusual for an inventor to seek an up-front payment that covers the cost of her patent filing. Another way to come to an agreeable sum is to base your payment on projected sales expectations for the first year.
  • Royalties. These are the payments made to the licensor based on a percentage of the licensee’s product sales. So, if you make a 2% royalty, that means you’ll receive 2% of the wholesale price of each unit sold. The typical royalty range tends to run from 2% to 5%. Again, the further along or more proven the invention, the less risk for the manufacturer and the more likely you’ll get an up-front payment or higher royalties. From my perspective, the royalty is the most important element of the agreement, because if the market responds to the product, the manufacturer will do well and the inventor can earn a good revenue
  • Annual minimum. This is the contractual term that requires the licensee to pay the licensor a minimum amount of royalties, irrespective of the actual royalties due from sales. To me, the purpose of annual minimums is to ensure that the manufacturer places sufficient effort and resources behind promoting the product. Therefore, I believe that annual minimums are most important in the initial years of the agreement–when the product is being launched–to ensure that the licensee adequately prioritizes this item when deploying sales resources.
  • Exclusivity. Most manufacturers will want to have exclusive rights to distribute the product globally. However, this is subject to negotiation. Depending on each party’s motives, the agreement could actually divide up the markets in many ways.

It’s important to note that these four components are inter-related: meaning the more you get in one area, the more you might have to concede in another. As with any negotiation, both sides will likely make concessions. Decide which of these components will best meet your short- and long-term needs, and negotiate from there. There are numerous books that provide techniques in negotiation. The most salient tip I can offer is to use a “non adversarial” approach in which your goal is to create terms that are a win-win for both parties. Good luck!

Source: https://www.entrepreneur.com/article/83496

HOW TO MANAGE BUSINESS RISKS

July 31, 2018 (updated July 31, 2018) Published by

Business risk originates from many different areas—internal to the business and from external sources. The best ways for a business to manage risk is to evaluate risk factors and make contingency plans on how to deal with the risk when and if it presents itself. Planning for these risks is the main them of managing a business risk, but you cannot plan for everything, so managing risk also has a lot to do with how you react when risks arise.

  1. Write a business plan. The process of writing and putting together a business plan is a vital step to assessing, evaluating and planning for the risks of running a business from the various standpoints of the business. This includes operations, finance and marketing.
  2. Determine insurance needs and obtain coverage. Most businesses carry liability insurance or insure the building and contents where the business operates. Depending on the business activities, you need to determine the other types of insurance and obtain the correct coverage for your business. For example, a tile installation business should carry liability insurance in case a worker is injured while installing tile. A real estate business or legal business may obtain an errors and omissions insurance policy in case a client sues for a professional wrongdoing.
  3. Write a risk management plan. Separate from your business plan, write a risk management plan, which lists all of the possible risks that can affect the business. The plan also lists the steps, procedures and ways in which the business intends on dealing with the risk as it arises. For example, if your business is located in an area of the country prone to hurricanes, then you may have a hurricane preparation plan on how you can minimize the risks associated with this type of weather to your business.
  4. Train employees. Avoiding risks and how to deal with the risk if it occurs can help the business avoid further damage or exposing itself to risk in the first place. For example, if your business deals with a heavy machine, such as forklifts, you may want to have each employee earn an OSHA certification for operating the machinery as proper operation of the forklifts can avoid injury and damage risks.
  5. Update plans. Even the best of planning efforts may fall short, so when the business is exposed to a risk, react accordingly and then put a formal plan and procedure in place in case the same risk occurrence happens again.

Source: https://smallbusiness.chron.com/manage-business-risk-4566.html

HOW TO IDENTIFY A BUSINESS OPPORTUNITY

July 27, 2018 Published by

To be successful entrepreneurs we need to be continually innovating and looking for opportunities to grow our business.

But how do you find new opportunities to take your business to new markets and growth levels? Here are four ways to identify more business opportunities.

1. Listen to your potential clients and past leads

When you’re targeting potential customers listen to their needs, wants, challenges and frustrations with your industry. Have they used similar products and services before? What did they like/dislike? Why did they come to you? What are their objections with your products or services?

This will help you to find opportunities to develop more tailored products and services, hone your target market and identify and overcome common objections.

2. Listen to your customers

When you’re talking to your customers listen to what they saying about your industry, products and services. What are their frequently asked questions? Experiences? Frustrations? Feedback and complaints?

This valuable customer information will help you identify key business opportunities to expand and develop your current products and services.

3. Look at your competitors

Do a little competitive analysis (don’t let it lead to competitive paralysis though!) to see what they doing and more importantly not doing? Where are they falling down? What are they doing right? What makes customers go to them over you?

Analysing your competitors will help you identify key business opportunities to expand your market reach and develop your products and services.

4. Look at industry trends and insights

Subscribe to industry publications, join relevant associations, set Google alerts for key industry terms and news and follow other industry experts on social media. Absorb yourself in your industry and continually educate yourself on the latest techniques and trends.

 

Source: www.smartcompany.com

GHS/USD = 0.09025
Select your currency
USD United States (US) dollar
GHS Ghana cedi