Tag: corporate

STRUCTURING A CONDUCIVE CORPORATE CULTURE

August 14, 2019 (updated August 14, 2019) Published by

Most Entrepreneurs are so consumed with getting all the tangible aspects of their products and services just right, other than dealing with the intangible like creating a company culture. At the outset of most new business ventures, the principle actors are usually a small nucleus of collaborating individuals who fill multiple roles. The company culture, out of sheer necessity, becomes a product of their individual drive, ambition and personality. But as the organization grows, and decisions become less centralized, creating a set of core values and ideas that represent a strong and clear culture can give everyone within the company a sense of belonging work.It is important to install values and earlier on so as the business grows, these ingrained standards remain consistent   with the goals and objectives of the organization strategy.

An organization’s culture is determined mostly by how leaders act, so formulating a leadership team that embodies the beliefs and attributes that are representatives of the company, its mission and its brand’s reputation is essential to developing a company culture. Team members should embody the company’s values and be empowered and enthusiastic about spreading the mission. Look for employees that have good balance of technical capabilities and leadership skills, those that can build great relationships as well as brainstorm and innovate with colleagues. Conducive Corporate Culture improves the performance of a business in a number of areas;

To begin with, productivity as an importance help improves morale of workers in a company with healthy conducive corporate culture increases productivity. When workers increase productivity, the financial health of the organization improves, and profits increases. Increase in productivity is a measure that illustrates efficiencies and effectiveness in the company.  Secondly quality healthy conducive corporate culture encourages workers to deliver quality products and services. Companies with cultures valuing the highest standards create an atmosphere for workers to deliver products and services that meet those high standards. The culture standards for excellence are an important factor for creating a product or service with a reputation of high quality.Reputation helps companies with healthy corporate culture gain a positive repute among potential workers, which may attract talented and skilled workers to the organization. In addition to attracting to attracting high quality workers, a well- regarded business reputation put companies at an advantage in the financial market. Customers may prefer to conduct business with a business with a solid corporate reputation as well.Employee Retention; in a company that values workers for their contribution to the business, employees experience high morale and positive attitude towards the organization. Workers with a positive attitude are loyal to the organization which reduces employee turnover. Worker turnover has a high cost for recruitment, hiring and training. A healthy corporate culture can help a company retain valuable employees and reduce human resources cost.

In a nut shell, a strong corporate culture is integral to long – term organization sustainability and success; a primary responsibly of management is to both define and communicate this sense of shared organizational culture.

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

WRITING BUSINESS MINUTES

July 13, 2018 Published by

You would have to write and report minutes after your business meetings. When our meetings aren’t effective, we waste valuable time figuring out what we are trying to accomplish in them. When our meeting minutes aren’t effective, we waste the time we spent in meetings. Without good meeting notes or minutes, we may not remember or recognize:

  • What we decided in the meeting
  • What we accomplished in the meeting
  • What we agreed to in terms of next steps (action items)

And when we can’t remember the items above, we end up going in different directions and then meeting again for the same original purpose!

(Definition: Notes and minutes are the same thing. Minutes are more formal and are often required by organizational bylaws.)

To avoid wasting your time spent in meetings, be sure your notes and minutes answer these 10 questions:

  1. When was the meeting?
  2. Who attended?
  3. Who did not attend? (Include this information if it matters.)
  4. What topics were discussed?
  5. What was decided?
  6. What actions were agreed upon?
  7. Who is to complete the actions, by when?
  8. Were materials distributed at the meeting? If so, are copies or a link available?
  9. Is there anything special the reader of the minutes should know or do?
  10. Is a follow-up meeting scheduled? If so, when? where? why?

Minutes need headings so that readers can skim for the information they need. Your template may include these:

Topics
Decisions
Actions Agreed Upon
Person responsible
Deadline
Next Meeting
Date and Time
Location
Agenda items

Do’s and Don’ts:

Do write minutes soon after the meeting–preferably within 48 hours. That way, those who attended can be reminded of action items, and those who did not attend will promptly know what happened.

Don’t skip writing minutes just because everyone attended the meeting and knows what happened. Meeting notes serve as a record of the meeting long after people forget what happened.

Don’t describe all the “he said, she said” details unless those details are very important. Record topics discussed, decisions made, and action items.

Don’t include any information that will embarrass anyone (for example, “Then Terry left the room in tears”).

Do use positive language. Rather than describing the discussion as heated or angry, use passionate, lively, or energetic–all of which are just as true as the negative words.

 

Blog source: Business Writing

 

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