Business Basics | Avik Munshi | Skillshare
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18 Lessons (1h 27m) View My Notes
    • 1. 00 Introduction

      2:29
    • 2. 01 WHY

      1:04
    • 3. 02 BONUS Growth vs Scaling

      5:35
    • 4. 03 Instructor

      2:50
    • 5. 04 Your Model

      1:01
    • 6. 05 Business Types

      11:33
    • 7. 06 Core Value

      8:08
    • 8. 07 The Model

      9:59
    • 9. 08 Business Canvas

      7:22
    • 10. 09 BONUS Projects vs Operations

      3:49
    • 11. 10 Your Money

      1:25
    • 12. 11 Inventory

      10:30
    • 13. 12 Overheads

      6:46
    • 14. 13 Capital

      5:35
    • 15. 24 BONUS Growth Budget

      2:27
    • 16. 31 Brand Experience

      6:11
    • 17. 32 Marketing

      6:46
    • 18. 33 Sales

      6:15

About This Class

After consulting many companies and entrepreneurs we have developed this powerful course with most relevant topics to help you start your business. This course is specially designed to help entrepreneurs, professionals, founders, start-ups and business owners do it right things to drive growth.

At basic level we have covered the concepts necessary for modelling your business and understanding the cost structure of your business.

Brief yet powerful, this is the perfect course for entrepreneurs and professionals to kick start.

Transcripts

1. 00 Introduction: welcome to discourse on business essentials. This course focuses on topics and avenues off business that will help you meet growth an integral part off your company. Human Develop clear understanding off the fundamental concepts that will help you structure your thoughts and strategies. First, you will understand the business landscape through the different types off businesses that exist in the ecosystem and how your business fits into it. Second, human develop clarity off your own business even after years off business. Many feel to grow that simply because they have feel to understand the core value, offering off their business. Third, you will learn the management best practices that will help you walk like multinationals. This is what sex apart, the great organizations from the good, an average ones. And finally, we will talk about growth. This is perhaps the most important part off the course. Despite years off hide book, many businessmen feel to grow as the lack the understanding off two key concepts. But with this course, you will be able to avoid the common trap by understanding the evolution off your rule and the tools and techniques available for business growth. If you are a professional seeking to start your own practice or an entrepreneur with the business or a starter, or even the second or third generation entrepreneur in an established business. This course will definitely be off immense value. Also, for students who are looking forward for a career in management or engaged in bootstrapping their own venture, this can be a good starting point and one more thing before we conclude. As the adage says, the not reinvent the wheel if there is an existing solution in the market, did not waste your resource. Is our efforts to reinvent or rediscover on the same thing goes with this course. This is no rocket science and most entrepreneurs and businessmen long these in due course off time. But there is always some time and cost off learning attached to learning by experience. Since the school's sums up many such learnings. Your small investment in yourself today can be of immense value in your future. 2. 01 WHY: some unique reasons why you should be investing your time and money in this course. First, insert off Conveying mere textbook knowledge. This course focuses on developing a clear conceptual understanding off the management techniques to help you in the longer run. Second, through the conceptual clarity and structured curriculum, you will be able to structure your thoughts and ideas better to draft strategies and make better decisions for your business. Third, most topics and this course are conveyed through practical examples or scenarios to help you grasp the content quickly and develop a lasting imprint in your memory and finally toe ensure practical utility. We have covered most off the frequently used concepts in business, so hurry up and embark on your journey to building a successful business organization. 3. 02 BONUS Growth vs Scaling: welcome to this bonus lecture on growth wasa Scaling Growth, as we all know, is the most desired goal off any business. But to disappoint you, I will see that the growth is just a basic necessity for any business but trust we will understand to underlying principles off capitalist economy. First, despite intermediate towns, the economy will experience cumulative growth and second overtime. The value of money will reduce a small money interest economy. More and more people will acquire better means toe access, better lifestyle to put it in relatable terms. If you're riding a bike today even by marginal improvement in your business, you should be able to drive a car within a decade. So what does this imply to us as businesses? If the value of money reduces over time, your costs will increase what he could buy $400 today, maybe $102 in the following year. In order to count for counter for inflation, businesses need to grow by at least double the rate off inflation, which means greens anywhere between two person to 7% depending on the country's economy. Hence, growth is basic without attaining such basic rate off growth, you would be unable to sustain your business for long, good businesses painting a decent growth rate. But what sets Greek businesses apart is the ability to scale from time to time. Skilling is something that helps you increase your revenue by a substantial amount, like 20% or even more initially, scaling requires addition. Off new revenue streams are drastic changes in your business model. Without Skilling, most businesses fail to attain the overwhelming Croat. For instance, you may witness many businesses in your city trying to gain mileage about how old the company is since 1970 or since 1980 maybe popular phrases. But to give you a perspective, Apple was founded in 1976 and Gap was founded in 1969. Thus, Skilling is an important characteristic off great businesses to help you on the stand better. We have taken different types off examples. Forced scaling can start simple. If you're a retailer. Ah, simple relocation toe, a biggest toward located in the higher footfall area. The better visibility will increase your revenues substantially. Second, if you're already operating a successful retail outlet in the authority, maybe you can choose to open two more outlets in us in a similar Cirque E or different localities off the same 33rd. If you are into product sales or distribution, entering a new region will provide high growth in the initial years. The same can be said in terms off market entering a different or Newmarket me evil, substantial growth figures in the initial years. Fourth on this is usually what big companies to start a new product or business line. Most big companies have skilled by entering new businesses like Samsung. The probably is into numerous businesses ranging from shipping, construction, electron, ICS and more, or Apple. A new product brings more avenues off revenues. Just imagine Apple without the iPhone or iPad well, without the's products they're scaling into a trillion dollar company may not have been possible. Skilling is multiplying, so if you multiply a growing mortal or positive number, you will get a bigger number. But what if you multiply a sinking mortal or a negative number? So before you start a skill, you first need to do everything right in your current set up. Skilling is not always successful, as I had mentioned previously. If you multiply the wrong thing you will create a mess. Basically, he will just undo all the progress that you did. Let us begin with some iconic examples. Apple Newton and Windows Phone What so ever reasons. Leg toe failure. Imagine what the company takes with the millions off unsold units off course. They wrote off the INR entry from their books as losses. Next, about the start of Stack spent millions of dollars developing something that never saw the light after gay. We have had grocery delivery startups get millions of dollars in funding and launching a dozen cities in a short time span. Well, they also shared down in those dozen cities within a few months and finally, the most controversial. Mergers and acquisitions. When these decisions go wrong, they can cost companies of fortune. So before you take the plunge into scaling, take a look at what you are scaling. Is it a mistake or an opportunity 4. 03 Instructor: before proceeding. Let me take this oppurtunity to introduce myself and our company. We are epics and IT project consultants, and our only model is to help organizations and individual professionals to grow and realize their true potential To do so. We have divided our company in two divisions. Business consulting and project management. Let us understand more about each consoling ring. Helps businesses set up operate improving expiring businesses. We help organizations skill through business projects that either improve the existing operations or set up new businesses or explained their business through vertical or horizontal integration. Bisecting a new manufacturing unit for input material or setting up a new distribution network for the products and simple words we help organizations grow. Our Project Wing provides project management services toe E p c. Engineering, procurement, construction manufacturing Angry, realistic companies to ensure quality in the new developments by managing the sourcing off freest material, equipment and services are services in this division include project management, quality assurance and supply, or it for an Angwin solution. If you wanted know more about our services, you can visit our website. You might have read the instructor proof I but to begin with I'm a Bt corners and the PM I certified Project Management professional. I specialize in Business Analytics, Project Management process design and Value engineering. Currently, I'm a partner at Epic Senate on have previously helped sector transformer and toner on loss making businesses. My experiences ranged from high street retail, toe capital intensive manufacturing as well as marketing distribution. Businesses currently invoking as a partner in the consulting as well as the project ring, also have previously conducted researches but findings published across Maxine's and conferences. You can find some off the publication links under the resources. All you can drop in award thank you once again for selecting the schools, and I hope that you will enjoy the course and learn valuable information throughout the course. If you have any doubts or concerns, please do post it on the discussion forum so that others can also benefit from the answers . This will allow the questions and answers to be apart off F A Q. Frequently asked questions available. Toe everyone and roll. Thank you once again and I'll see you in the next lecture 5. 04 Your Model: Welcome to the first section off this course on your moral. By going through this chapter, you will be able to clearly understand your business and channel eyes your efforts more effectively. We will begin this chapter by discussing the types off business in the market. Next, we will move on to finding the core value proposition off your company, which will help you focus your efforts and resources. Once you have clarified your value proposition, we will move on to setting up your business model the logistical and operational requirements off, setting up your business around your core value proposition. And finally, once you have developed a complete understanding, we will move on toe preparing the business canvas to re present your business. Since we will keep citing examples orchestra, the steering, our discussion, you will be able to gain more perspectives along with clarity. 6. 05 Business Types: before moving into detail. Understanding off the types off businesses. Let us understand the three major categories in relation to each other. First on the left is manufacturing. Very value is created and usable product substance or item is created by processing raw material. Manufacturing is usually considered the heart off any economy, since Valley originates here next. Once the goods are manufactured, they need to be moved to the market. This is where the chain off value addition began. Steal our until the point that reaches the end consumer. Create a steak goods from manufacturers in bulk or Nitties, and distributed the last mile Providers. Traders usually take bulk off different types of Kurds from different manufacturers and provide it to last mile dealers like seals, agencies or retailers. For instance, ah stationary distribute ER would broke up people, spends inks and said similar items from different manufacturers and then move it across its dealer and retailer network, who are in need off the entire basket off products and moving on to the next last mile Providers. They are usually retailers or independent seals executed, carrying the product to the end consumer. Nowadays, these can also be e commerce websites listing the products procured from traders or directly from manufacturers. This is a general marketplace arrangement prevalent in any economy. Now Legace move onto the details and sub categories off each. Let us begin understanding the details with manufacturers. Forced this contract manufacturing, where the manufacturer produces items based on orders off a brand or third party thes, are manufacturers who did not have a brand off their own and lack consistent distribution channel, the only manufacturer goods for declines. In such cases, the business is highly dependent on the handful of clients providing manufacturing contracts. This can be the kiss for engineering items customers, products used in aerospace and defense, electron ICS and similar. For instance, Foxconn is a contract manufacturer producing mobile phones from multiple companies. Second is general manufacturing, where the manufacturer continuously produces skirts which are moved through their distribution channel, toe creators or clients, for instance, and chemical and food farmer intermediates, where the product is that input for some other product. General manufacturers continuously produce and sell the product to creators or directly to users or the last mile retailers. In this case, there may not be significant dependency on a particular client 3rd 1 The company has its own brand, and there's an original equipment manufacturer. The company not only produces the Kurds but also actively engages and distribution and seals off the products. For example, the automobile industries companies to not only manufacture the cost but also actively engaging, engage in creating and managing dealer networks across regions. Also in case are engineered products the companies manufacture as well as sell the product through the own sales channel. Kindly note. When we speak of our brands, it does not merely a label but the ability off the company to regulate the product as it moves through the market and also provide sales support. Sorry. After sales support. Now let us classify manufacturing based upon the types of products manufactured Forster's raw material. This can be material in raw form or processed form uses primary input in an industry. For instance, Signed is a raw material for glass and construction industry and the supplying and raw form . Whereas steel is a raw material for engineering industry but supplied in processed form, next is intermediates. These air process products used as an input material for final product. For instance, food color is a common intermediate. Some companies supply it and bulk toe packaged food manufacturers, whereas certain companies can procure it in bulk and make retail sized packaging to create their own brand. One more example. Ofr Intermediate a cement. It is a finish for product for old extraction industry but acts as an input for the construction industry. That is a white spectrum of products and chemical, food and pharmaceutical industry used as intermediates. Next is machinery or equipment manufacturer. The these are the tools or equipment used by manufacturers for processing products. Since engineering and intellectual assets are involved, these manufacturers fall under the category off original equipment manufacturer or contract manufacturing for examples, laptops and mobile phones. The flagship models are manufactured by the E EMS, while other mortals us of contracted to third party manufacturers. Next is products in this category experiences from full scale manufacturing to simply assembly off various components. This depends on the skill off the company. Certain companies may be assembling mobile phones by procure incompetents from the market, while some might be manufacturing most components In house, for instance, Samsung manufactures most components in house, while a random Chinese rang me only be assembling the components. The seem also is prevalent in the led lighting products. Well, this brings us to the end off understanding the manufacturing sector now moving on to the next one trader types Forster's unregulated credos. These are the creators who buy and sell non branded items, or which the manufacturer has no control in terms, off pricing or other treating norms. Usually this happens in industrial products with the manufacturers produced generalized items, which had then forwarded by creators to consumers, or for for the processing. For example, In the chemical industry, most manufacturers producing intermediates or consumables sailing boat to create us who forward the goods on the day terms To use is or to other traders. In this business, the creator has radius advantages and avenues of growth as needed. The region nor prices are regulated by any authority but only challenged by the competition . Second is regulated traders, better known as distributors or dealers who sell branded items regulated by the original equipment manufacturer in terms off pricing and other terms such as region and after sales service. Most common example would be automobiles and consumer electron ICS. Manufacturers push their products into the market through distribution channels but maintain control over pricing and margins throughout the gene. This is also the keys in industrial items like lubricants in lubricants. There are only a handful off manufacturers like Elf any shell and others, and most off them maintain close control over distribution channel. In this case, the creators are often at a disadvantage, especially in a stagnant market as the regions are defined and margins are regulated in such case growth, a slow and limited thirties export also known as mercantile exporters. They purchase products from multiple manufacturers and forward it to other countries after adding their margins. The recipient, maybe an agent creator or even the last mile provider. For example, clothing items from Egypt, India and Bangladesh are exported to leading brands like H and M, as well as to create us who in turn distribute to multiple retailers in their region. Export is often considered risky, as multiple compliance is are involved and logistical requirements are high. Also, Lord that there can be several layers off traders in the market for a single product, and every time product changes hands value addition occurs and form off margins previously due to lack office subletting an access to the market. These leaders were thick and invisible to put Jesus. But now, with the aggregate off Economos and other connectivity platforms, these lead layers are gradually fading out. Now let us move on to the types off retail businesses Forster's White label retail. In this case, the retailer procures items from different manufacturers, are creators and puts his label on the products. This is rightly prevalent, including and fashion accessories industry. Many retailers source and bulk quantities from China and read a lick under their label. Margins and this kind of retailing are usually high, but are depending on the policy value off the brand off the retailer. Some examples include gift and variety stores like Dollar Shop, Hallmark, Many So and others. Second, this brand retailers. These are the retailers who do not want to invest in developing their own label and instead provide a collection off Bryants and the one roof. In some cases, these retailers start as a multi brand outlet and monster, develop a clientele and footfall. The Emmy gradually start introducing their own label on the shelves. For example, grocery stores stores me start their only well off pulses, while salons may start their own brand of cosmetics and consumer electronics store may start their own range of home appliances in India. The two biggest consumer electron ICS retailers, Dr Kruma and Reliance Digital, started their own label. Gradually. Most well known example of the fashion industry would be gap. Finally, the 3rd 1 is generalized retailers. These are retailers who established themselves as the last mile provider to deliver a variety off items to the end user. This category usually consists off convenience and stationery stores, the size off operations greens from unorganized corner stores to Wal Mart and Target. Many companies begin the retail journey in this category, so this brings us to the end off this lecture on types off businesses. If you have any doubts of concerns, please feel free to post it on their discussion forum so that others can also benefit from the answers 7. 06 Core Value: Before starting this lecture, let us understand the underlying need for knowing you're cool. Rally proposition. The basic principle off business is your investor dollar in terms of resources general value and sell it for anything more than a dollar. But like any investment portfolio, if you invest at the wrong place, then you may not get any returns on. This contributes to resource efficiency. Since resources are limited, equality in resource allocation does not work. You need toe know the are. Put off the process to locate resources on equity basis as resources are limited and you will never be able to locate equally amongst all activities. Also, you should be more inclined that investing more on activities that eat more return and by knowing your core rally proposition, you will be able to define the activities that require close attention and greater results on location before proceeding further. Like this. Understand certain basic aspect off businesses as I had earlier mentioned that business boils down to a very simple concept. You invest $1 in various forms, generate value and sell it for anything more than a dollar. But the forms off investment ratty in different types of businesses. Starting with manufacturing, your investment will be immediately in these three categories off resources that would be material equipment on intellect. You combine these three to generate value, created annual investment and sell it to a user or trader. Let us move on to the aspects. In trading, you only have two forms of resources. First of the is the tangible form off material or product, while second is the intangible form off intellect. Intellect is your organization's ability to push the product into the market and generate decent margins. Intellect can be inform off your white label, Brian or your network off the lows and distributor's moving on to retail or last mile. This is similar to creating, but the only important tradition here is the retail space in terms off location and in clear the coronation which directly country were towards your ability to draw customers and gendered margins. Finally, the solve the sector. This is by far the easiest to understand. If you're providing a service like digital marketing, you are basically converting. Manner was $2. Your income is directly proportional to your time and consulting business. Our income is only as much as the value off our time. Sometimes we do have a markup based on the utility value or urgency delivered to the client . But the basic stays the same that we convert our ability off creating value intel from the man of us $2. Now let us discuss an example toe help you develop our deeper understanding. These days, when you think about the brand like Apple, Samsung or Leno, you expect control or involvement off the page and company in all aspects. But that does not necessarily mean that the companies are invested in all of them. For instance, some companies do not have that own manufacturing, like manufacturing off iPhone being sourced. Outsourced to Foxconn. Some companies manufacture only the flagship models but outsource other items to third party manufacturers. This is usually the case off computers and electron ICS. Next, some companies have their own distribution network, like Samsung and Apple, whereas some companies curdled their distribution networks to regional level and establish local distributor's. For instance, apple products in India are distributed by Reddington. This choice may be voluntary toe A Y risks or a result off legislation in the region. However, single local distributor's are well established right ground level. Most companies choose to appoint companies already established in distribution. Next, some companies own their outlets like Apple, while others have a mix off company owned and franchised on our collects for the last mile . Retail Where us? There are certain companies who completely rely on franchise outlets and retailers for last mile, except from their handful off experience tools that do not directly engaged in retail. This is in the keys off building products and high cost items were displaying. The entire range may not be possible for retailers. Bathroom fitting companies like Sarah Jaguar on Plumb Bow often have the experience centers in major cities but sell their products exclusively through dealers. And distributor's now pauses for a moment and think water is common among all these examples. Well, it is the fact that they enforce control across all stages off the product movement without direct involvement. And such control is enforced by proper structuring and people work. But across all the stages, the companies managed to focus on their core rally proposition. Now let us discuss an example. Think about an e commerce company selling its own fashion label, which ones to thing should be. The Cory as a focus pauses for a break and think about it. Think about four or five areas. Important ones ready? Well now let's continue. Since this is a sales and distribution business, the most important aspect would be marketing and seals taking people to the website through Social Media Blog's and much more than once people start browsing their website. The product representation should believe creative and convincing enough for people to buy as a website. Visitors need to be able to find something off desk their taste while maintaining acceptable levels off investment. And in Van Cree product, green selection becomes crucial. 1 may spend on hiring stylists and fashion experts to understand the market trends and stock accordingly. Next. Once the transaction, of course, it becomes crucial for the company to deliver. The first aspect would be proper warehousing, their ability to locate and back the product at the earliest possible. Once the order is placed, then they should have sufficient third party delivery channels for deliveries across various regions. Also taking the packages and short for transit can be a good idea, So these are three important areas in order off priority that would require the most attention off the management. Well, this brings us to the end off this lecture. If you have any doubts, please feel free to post it on the discussion board so that others can also benefit from the answers and explanations. And if you're enjoying the school so far, I would request you to leave a review as it will help others choose better. 8. 07 The Model: Welcome to this lecture on setting up your business model without getting into the details off mismanagement. Let us talk about the first thing that you need to do to build your business mortal, and that would be to decide your utmost priority. How do you decide with this is the one thing which is the purpose off your existence without which your business will feel in case off a restaurant they purpose statement would be to deliver food to customers, and everything they can do revolves around the purpose. And once you're decided utmost priority, it becomes easier for you to locate resources. Quick note you the one thing off. Most priority is longer task, but the pope a statement You will understand more as we continue through this lecture. Once you have decided your statement off purpose, you need to arrive at the logistics required to realize your purpose. As in the case off the fast food chain, the falling would be of critical importance. First, his location. If you're not located at a place with proper visibility inaccessibility, you will be unable to generate sufficient revenues. This regard to the quality off your bogus led to start with visibility, having noticed a tall pools or location markers for McDonald's, Burger King and KFC. And certain retailers choose only corner stores for better visibility, and simple words are off. Site is out of mine. Next is accessibility. A gym at the fourth floor, off a building without an elevator. Despite climbing would be a good warm up. Not many customers will make the effort. Second is interiors. The design off your space should not only contribute to the entire experience but also needs to be tactical enough to accommodate required utilities. For instance, six seater Debus to entertain family meals, two seaters for couples and maybe a community table for singles. Or bigger groups. Maintaining a proper mix off different settings and shows that you are not serving a lower ticket single meal to a consumer seated on a six seater while the family waiting outside gets bored and leaves when it comes to ask critics, the same can be used to enhance experience or attract attention. For instance, recently I went to a coffee shop which had a big warlord, certainly explaining the difference between different types of coffees, and it was placed existent to the counter If you have noticed, the 1st 2 logistical requirements need to be addressed even before you start operations, our latest move onto the logistics required while operating the ARKALYK third a service. This is your ability to cook and deliver the food to the consumer. Many food chains like McDonald's and Domino's up for self service Rick Token system. While Starbucks does not use one, they have mastered the art off, certainly goofing up names. And in the process, Starbucks has created a unique reputation offered service. This is one off the times when a company has used its service to add up to the brand perception. To ensure that you have a hassle free service, you need to invest on staff training alongside standard operating procedures to ensure client satisfaction. Finally moving on to the fort the burger itself. If you have ever been to a farm, you would notice that they're usually self sufficient when it comes to the food requirements. But as a business, you cannot do everything. You cannot grow your own vegetables, bake your own bread kick, cook your own sources and fry your own party's. You have to decide the one most important thing that needs to be done in house, and in this case, it would be the party ketchup, fries and sauces. Most fast food retailers procure it in half big form that requires minimal on no preparation, for example, milkshake mixes and frozen fries. Except for gourmet and special cuisine restaurants, all food chains maintain a proper balance amongst things done in house and things broke your tremendous. In case off products companies use a mix off self manufactured flagship products and white label products from third party manufacturers. Toe Philip the shells. Now that you understand, which are your most crucial activities, we can discuss about outsourcing and in house execution. Hondo. There are many other complex analysis required for the site. The pieces relies on your statement off purpose fosters in house all the activities that contribute substantially or directly to realize the pope. A statement should be done in house, as we had discussed previously, using the example off Boger Bread and Party. Similarly, looking at the largest scoop off business, you can decide many other activities that need to be done in house. For instance, if you sell bogus, it would be OK to outsource your digital marketing work. But if you are break an e commerce website visiting marketing, would country would substantially to its revenue generating revenues, and hence it should be done in house now moving on to outsourcing for activities such as bookkeeping. If you are an entrepreneur operating in a small scale business, neither you would have sufficient walk to hire full time accountant. Nor does it contribute towards realizing your core value, whereas in a concerning form like ours, we do require full time accountants and analysts as services, as the services are among our core offerings. When you decide to do an activity in house that is an addict cost of capacity development in terms, off equipment or skills training, there are analytical methods available toe electric finances. But prior to such analysis, you should be sure that it contributes to your core offering because if it does not contribute to your core, offering decisions based solely on financial analytics will only alter or complicate your business model. For example, apple still so outsources the manufacturing off devices. Given the sheer scale of the smartphone business and market projections, hiding a new facility may be quite justifiable in terms of finance. Now that you know about structuring your business around your core activity, let us understand the importance and utilization off what we have learned so far. Now let us understand how our quality of thoughts and decisions get translated toe figures . But before proceeding, let us understand that two different types of costs first is capital expense. In simple terms, these are the expenses towards acquiring long term utility or a span off a couple off years . Second is operational expense and simple terms. These are the expenses incurred and do goes off business, giving you short term utility. Now that you know they're two different types of expenses like this, get further clarity with some examples. Kitchen equipment that you poaches for your US run will provide utility or a couple of years while the salaries paid to chefs and kitchen vocals are incurred in due course off business intellectual property like brand designs or software algorithms, which provide returns over a longer span off time. While expenses towards Agra, Cheeseman will provide immediate utility, computer or software licence, deliver utility over 3 to 4 years, while the office string is a recurring expense incurred to accommodate your computers and employees. Similarly, the expense made on furniture will provide utility or the span off years. Whereas the expenses made towards maintaining your office and equipment are expenses incurred in due course off business, the underlying bees is off. What to include in your capital expense depends on your utmost priority off business. For instance, at a subway restaurant, delivering freshly baked bread is apart off the outpost. Priority for McDonald's. The bonds may be procured from the master kitchen. Hence the capital explains off. Starting a subway restaurant includes a flower mixer and bread over which would not be the case off a McDonald's outlet. Let us understand one more example off course structure, for instance, in keys off a salon change. The core purpose would be to provide the ultimate hairstyling to clients. In such case, hair dressing becomes a core purpose, and having an end house training center for headdresses is necessary. Act at a higher level. This were translate to capital expenditure off, citing up screening centers. Similarly, other items contributing towards the cost can be evaluated in context to the core purpose. So this brings us to the end off this lecture on setting up your model along with cost structure. If you have any concerns, please post it on the discussion forum so that others can also benefit from the answers. Once again. Thank you for choosing the schools and I will see you in the next lecture. 9. 08 Business Canvas: before proceeding with any business, it is necessary to visualize the structure off your business business. Canvas is one such tool that helps you get a 3 60 degree visualization off your business structure and a single sheet off people. And this quick lecture we will understand business canvas with an example. Before proceeding with the example, let us understand the competence off the canvas. Ah, compiled representation off this components helps you develop a better understanding off your business. Let the start with key partners. These are the decision makers in your business and their respective key result areas derived in reference to their skill set. Since key results become input for other activities, the concerned person need to be competent and responsible. Second key activities. These are the most crucial our producer oriented activities in your business. You can list them in order off priority, starting with the highest are put activity third G resources. Once you have listed the key activities, yuning toe less the resources toe Execute these activities. The resources can be off tangible or intangible nature. Fourth is value proposition. If you can remember the previous lectures, we had discussed the core value proposition that goes right in the centre off the scandals . Fifth Consumer Outreach These are the activities for reaching potential customers. These rally for B two, c B to B and B to G businesses. Be to see businesses rely on aggregate easements. Be Toby. Rely on the combination off Agra Cheeseman on business development, while B DJ would rely on listening and corporate relations. Sixth channels. These are the channels used to showcase or push your product to the consumer. It can be were outlets, kiosks and also websites for e commerce. Seven. Customer segment. These are the type of people who can be your customer. You can create Create groups off people based on particular characteristics. For Ince's people with high dispensable income or university students on a budget, it cost structure Agnes as discussed in the previous lecture based upon the structure off your business, this is the by ification off your cost to its capital and operations. While the cost of goods is the expense incurred to its procuring raw material and other import goods and last revenue streams these other different sources or channels from which your business generates revenues, these can be different and channel eyes in on bees is off products, sales channels or delivery channels. If you have any doubts and understanding any competent off the business canvas, please feel free to post under discussion. Forum. Now that you understand all components off the canvas, let us proceed with an example off a burger restaurant. Also, make a note off the order in which we're filling up the canvas. It does not simply go from left to right. The correct order is important to structure your thought process. Forced letters defined the value proposition or the core activity for a burger restaurant. This can be delivering delicious burgers quickly at an affordable price. Next latest. Understand the key partners involved in the business chef and manager. The chef may have key result areas off food preparation and menu development, while the manager may have key result areas off managing logistics. Now let us think about the activities that would e maximum output for the business in restaurant business. The following recipes Experience An outreach would have the most important outputs with the key activities to find Legace list the key. The source is required to facilitate them for preparing. Recipes require a chef and kitchen equipment, whereas for experience design, he require designers, while for outreach, you need to hire marketers. This list off key resources will also direct you to build your team and invest your money logically. Next is customer segment before jumping toe Any conclusion, read your value proposition and think which type off people would be in need off your solution. Did you get the answer? Let us go to some off them university students yell. It is hang budget. Cautious diners. Now that you're consumer segment is defined, think about the activities you would require to read your target audience. In this case, outdoor and print aggregate easement along with BR activities would suffice. Your target audience also has an impact on the content off your advertisements. For instance, For university students, you might advertise a combo meal or some freebies. Once you have defined your outreach activities, you need to understand the channels through which you will deliver the product. This can be inform off nine in and pick up or delivery orders via phone. Now we can finally move on to the figures. First lick. You should understand your core structure based upon your resource requirement you can derive your capital and operational expense. For instance, kitchen and store for legislative would be your capital cost. And if you have home delivery in your channels, delivery van or bike can be included in your capital expense. While operational costs would include salaries and rent in case off a restaurant, cost of goods would include costs off Rahmati, lineouts, those products. After after understanding the costs, you can move on to the revenue streams. These streams evolved from time to time. For instance, we can list three streams, walk in phone call and online orders. When Internet was not widely used two decades ago, online orders would not have existed amongst the revenue channels. Also, the share off each stream depends on your concept. With this example, I hope that you have but better understanding and clarity off the business canvas. So this brings us to the end off our first section on understanding and setting up your business model. If you have any doubts, please feel free to post it on. The discussion forum also pleased to leave a review as it will help others to inspector and also help us improve 10. 09 BONUS Projects vs Operations: welcome to this bonus lecture on projects and operations. Any activity that you do any work life can be broadly classified under these two categories and the proper mix off both. And she was crude off your business. You have heard many stories about hard working men who put in lots off effort, but none offered results in growth. And here we will understand the reason behind such futile walk 1st 1 is operations. These are the activities you perform to merely realize revenues, tasks like poachers in goods, selling items, maintaining stock and accounts, recruiting for vacancy, and so on these other tasks that keep the gears off your business spending. Since these activities Air Representative, you may keep performing these tests or a new again and find more efficient ways to execute them. But that's about it. These tasks won't help you grow. Even Einstein said that if you keep doing things to seem, we over lure again. You cannot expect a different result on DSO is with operations. Well, if this is not compelling enough, that is a certification to ensure that you get the same reserved for repeating tasks in the same manner on that certification is any guesses. I s 0 9000 and one toe. Ensure quality output for each reputation. So if you want to grow, you need to adopt new ways of doing things. And this is where projects come in. As defined by the Pembroke, the Project Management body of Knowledge. Ah project is a temporary endeavour to achieve a predetermined result in business people from projects to attain a result, tax increases the revenue capacity off a business, for instance, starting a new retail outlets or establishing a distribution network in a new region. The output off these activities will reserved in a new revenue channel for your business. Hence the perfect proportion off operation and project activities and share growth for your business projects. Start with an idea like an idea, often iPhone. Then they move through a development cycle until the AARP artistry in rating. And once you Havenaar port operations take care off its functioning. For instance, iPhone was an idea on the drawing board which was taken up by a project team to bring it to life. Once the product was all and the device was ready for large scale production. It is the operations off the company, including marketing, sales, production and others that country predict to its generating revenue from the project. Tell a variable note. Our delivery able is the pre defined are put that the project creates so remember projects the nor generate revenue. But the project delivery people helps you increase your revenue capacity. Projects require investment. Inform off tangible or intangible resources. Developing a software like M s office is a project, but once the delivery Ballis ready the operations takeover and generate revenue from the airport. Similarly, building retail outlets it requires investment. But once the art collectors ready an operation steak over, you have a new revenue channel. Well, this was a quick lecture on projects and operations, and I hope that you have now developed a better understanding about classifying your tests on agendas in your routine. 11. 10 Your Money: Welcome to the second section off this course on money and do goes off business. Your money gets converted into various forms. In this section, we will discuss those forms along with the V's to manage and optimize them. We will start the section by force discussing about in my angry, we will discuss why it is absolutely necessary for you to recognize your in wintry and we used to manage and optimize. Next, we will move on to discussing or heads understanding, recognizing and optimizing your over heads to reduce your operational expenses. Finally, we will discuss about the types off capital and things to take care to ensure optimal investment on maximum returns. If I had to put all off this in one sentence, you start by investing money in capital assets like infrastructure and equipment. Followed by inventing acquisition. Inform off Romer teal, which are processed by operational resources and supporting or hates to manufacture goods. In this entire cycle, it becomes crucial to optimize each off these aspects individually toe achieve Orel efficiency and generate returns on. I hope that you excited to proceed with the next lecture 12. 11 Inventory: welcome to the first lecture off the section. Letters begin by understanding inventory to define it in one sentence. In re entry can be classified as anything and everything that contributes to your direct costs. Another rate or define it would be anything that can be monetized at face. Value can be considered as in wintry, many think offered from an accounting perspective, you can think off only finished goods and raw material, and this will limit your thinking as your inability to recognize your in wintry affect your perspective as well as decision making. If you think off merely goods as an elementary, then what happens to the service based businesses? What can they monetize? Hence, in this lecture, we will discuss about into injury not from an accounting perspective, but in a way that helps you think critically while making business decisions. So happy found the answer. To invent three for businesses and service sector. Well, In this lecture, we will discuss some examples toe Answer the question. In some sectors, professionals monetize the skill set to generate revenues, but skill sect is not quantifiable, and in went green needs to be quantified, so we need to have a quantifiable metric to measure and reentry that would be man hours. Think about a doctor. Although he is monetizing upon his skill set, he is utilizing his time to deliver the services. Even in conservative, we are monetizing upon numerous skill sites like accounting, coaching advisory and so on. But the measurable metric would be my novels and man hours. For each skills, it has a difference price tag attached to it. Accounting reads are really Lord and ordered or advisory rates hence, and so the sector man hours across. Different skill sets are different segments. Off products for different rates on can be treated as an entry. If a freelancer is spending six hours working on projects and two hours on support activities like bookkeeping and marketing, his available in reentry can be considered as six hours a day by understanding Hiss and the steams and went three levels. He can better plan his projects as well as margins also in services. Man, I was alone may be insufficient. You need some products to deliver your services. An example off the doctor. Apart from his advice and prescriptions, he may have toe administer immediate medication through injections. These items which directly support the delivery off your service can be termed as a board out to differentiate them from goods and a quick northern differentiation between goods and bart outs. Part outs need to be administered or implemented by the service provider, whereas goods can be sold in as this form. Also, goods can be sore. Stand alone by Bart outs are sold in conjugation to services to continue the previous example. Prescriptive drugs can be considered as skirts, which can be sold separately. Violins actions can be termed as bart outs as they need to be administered by a medical professional. Well, I hope that you are now clear about invent tree in the service sector. Businesses going on to products products are manufactured, supplied or sword to satisfy a market demand. But in goes off business, there are other things which also imply a stark cost to the company. So if you are into manufacturing apart from the finish, Kurds in the warehouse you have invented in other forms such as raw material, labour storage and transport facilities, for instance, the equipment that facilitates production is a capital ASIC. But the work force operating the equipment and producing goods is a direct cost to the company as a country, groups directly to value creation. Similarly cost off. Certain items can also be assigned directly to the product. If you have a storage area based on how much speaks of product occupies, you can classify the costs as direct rather than the warheads. Similarly, if you have a transport contract to ship certain volume every year, the current available volume is an inventory. But why are we classifying all these as an elementary? Well, this is not for Corning practice, but for your thinking clarity Now as a manufacturer, if you know you invent pre, you confined V's to monetize them. For instance, if the demand off your current prying off goods is insufficient to match your protection piece. If you have realized that the inventory is not on your finished products but also other items as well, you can monetize them through subcontract manufacturing jobs. Instead of stopping, invent tree movement through such monetization, you can in cash without increasing all heads. This clarity will help you get more perspectives to explore options now moving on to the composer structure where companies provide installation along with seal off Kurtz. In this case, the elementary will include everything as in case off products except for the material. Some companies prefer not to stop products to even exclude goods and storage from invent tree. An example in this case would be I D hardware companies. Such companies maintain minimal stock. A stock can always be arranged from distributor's at short notice. Moral. The products not being a morning basic necessities order requirements me rise rarely but eliminating one simple part off business model. They are able to save on, invent pre inform off goods and storage. Hence recognizing the nature and need off your inventory is very important. In this case, the man hours would be the time off Executives doing hardware installation book. Once you recognize this as an in wrenching, you will realize that new projects may not suffice for maximum utilization. Hence, most such companies also start undertaking maintenance contracts to utilize the elementary off man hours. And in case of larger workforce, companies are for I T solutions to risk for resource scheduling to further increase the efficiency, often ranging utilization. Now, with this example, I hope that you can understand how merely recognizing your in Wangari and understanding the nature can help you optimize your cost as well as revenues. Now that he knew about in your angry in different types of businesses, they're just move on to managing it. First is high idling time. This regard toe all efficiency measures. There will be a certain ideal time for your inventory in case off man hours on understanding the trains will help you formulate your margins accordingly. For instance, your installation executive look six hours on projects. But after analyzing the data for a year, you find like the average maximum utilization is five hours. In this case, if you're charging reads on based on six hours, he would be losing the cost off an hour every day. On this really dig up into your margins. Next is value. In case off commodities like gold, silver oil, a little's, the rates fluctuate on daily basis. Thus, the goods competent off your inventory based on face value may not give a complete representation. In our concerning practice, we have come across really is trailers who maintain their goods, inform off grands or ounces for their convenience. Face value is recognized only on dates off book closing at month ends. Hence, if you are in a commodity business along with feast value, incorporate another unit off measure while maintaining goods or materials. Next a cycle. Time for goods. Goods may not be sold or paid for as soon as they are produced. That would be a certain stock stocking. Peered along with the credit beer. This time lack costs. You inform off interest on your working capital. If the cost of capital during this time of year does not accounted for, you will be digesting unexpected costs through your Marge's. Hence knowing your cycle. Time is important to drive your working capital requirement and associate ID interest costs . And finally, movement not only for your counting practice but also for your understanding off your business. For example, in the commodity's business, where prices fluctuate every day, hard really arrive at the cost of goods for the gold chain you sell today. Should you consider the cost act today's rate off any approaches to gold three months ago? Well, the choice cannot be at the discretion off the accountant. As a company, you need to fix your inventing movement method as either lethal last in first out or FIFA. Well, first in first out, if you have adopted FIFA, the gold cost would be the former. While for lethal your cost, your choice would be the lacquer, as you will have to consider the latest purchase straight. So this brings us to the end off this lecture on a new entry. I hope that you now have a much better understanding about elementary. And if you still have crazies, please feel free to post it on our discussion forum. Thank you for taking this lecture, and I will see you in the next one. 13. 12 Overheads: Welcome to this lecture on your heads, also known as indirect costs letters for start with the definition off, indirect costs, anything and everything that does not directly contribute. But it's necessary to support the delivery off a product or service. Continuing the example off, Doctor, the doctor is monetizing his skill sick. And for that he requires a support system consisting off a clinic, nursing staff and other maintenance activities. Now that we understand who heads, they're just move. Want to understand the term operational break even? It is when your business generates sufficient revenues to cover up for your direct as well as indirect costs, leaving you with the cash positive operating cash for any business to be sustainable. It is very important for the costs to be structured in a manner that keeps the business at operational break even at most times. Hence, it is important for you to understand and optimize or heads. Now that you have a broader understanding off or heads, they're just move on. To some examples. Forster's development costs incurred towards overall capacity improvement often organization, such as costs associated with hiring consultants for cost reduction, production improvement, business development, business strategy, risk management and so on also costs associated with research and development of future products. These costs cannot be a counter directly as nobody knows whether the product will even make it to the market. Such costs add up to the company. Oh heads. Next is rent. The Prum ice is required to conduct your business. In most cases, species are considered as or heads, however, and retail chains with multiple outlets. Rains can be considered a strict costs as the high street rains they pay directly contribute toe their ability to generate business. In case off a doctor conserved and or other professional services as well as manufacturing businesses, Office ring can be considered as an indirect cost. Also, other subscription costs for software and services are also included in this category. Next is released in manufacturing plants. Effluent discharge needs to be treated prior to disposal. The costs associated with getting the waste treated by third parties can be considered as an indirect cost. Similarly, in medical, the cost of disposing biological waste and incinerating hazardous items can also be considered as a lyric costs. Next is compliance for any business to exist. It is absolutely necessary to maintain accounts and file for legal compliance is and regulations as necessitated by the local authorities. And to manage these things, you may need to hire a full time accounting and appoint a concerning lawyer. Next is promotions the costs incurred towards bringing in new business. These costs cannot be assigned against a particular order. However, the cost off seals, such as travel for negotiations, payment processing charges Inclined Entertainment may be assigned against a particular order, but the costs associated with aggregate easements create fair promotions, and other avenues which do not directly translating toe orders are considered as indirect costs. One common characteristic among all these costs is that neither is directly contributing towards product delivery but are absolutely necessary as a support system to facilitate operations. Now that you have a better understanding off or heads, ladies will want to the methods off optimizing or hits. In any business, you have to understand the ideal proportion off direct and indirect costs and since indirect costs the nor directly affect your revenue generation, it is wise to minimize them, fosters utilisation. It goes to aspect, fosters selecting the ideal resource, and second is ensuring maximum utilization. For instance, as a concertante leasing a ground for retail space for an office would become the product of reading species have high costs owing to the large number of walk ins. Degenerate, however, concerning clients are nor generated through walk ins. And with every walk in our business developer Nick, Security of Attains, his time is wasted as the probability of conversion is very low. This would be the case off improper selection off resource. Now, if you want to hire full time accountant for your invoicing and bookkeeping services, you need to be sure that you have sufficient work toe ensure maximum utilization. Next is sharing. Computer and software used to be a big cost two decades ago. Hence, certain companies shared resources by having multiple shifts utilizing fund computer. These days, the cost off hard way has reduced. Hence, we Denard witness such kind of intense resource sharing. However, ah more practical example would be the radio conferencing hardware insert off riding facilities at all conference rooms. Most companies have one or two conference rooms, equipment necessary. Harvard and solutions also continuing the previous case off. Accountant. In case you do not have sufficient book, you can hide a part time account and shared by multiple companies. And finally outsourcing, for instance, to convert for workshops and creating sessions. We require a particular set up and speaks, including audiovisual equipment. But the cost off setting up such equipment at our office would be expensive and with minimal utilization, the cost would not be justifiable. Hence, a more affordable option would be to outsource these by hiring boardrooms or banquet spaces at hotels. So this brings us to the end off this lecture on or heads. If you have any concerns, please feel free to post it on their discussion Forum as the answers will also benefit others. Thank you once again, and I will see you in the next lecture. 14. 13 Capital: Welcome to the last lecture off this section on capital letters begin by understanding the terms Forster's capital. It is the money you have invested in your business and it's locked up in various forms of resources and once you invest your money, you're obviously expecting it back with sufficient brick tones. So this brings us to the calm break, even the time period within which Eureka will your capital with acceptable returns. It's called the break even point off horizon. So before you invest in setting up a business you need to establish to break even horizons , the forced A near future is your operational break even and then your capital break even. Now that you understand capital letters, discuss the two types of capital that you will be investing Forster's Asset Capital. This is the money that you spend to develop infrastructure and acquire capacity in terms of production equipment. These items contribute to its creating value over a longer span, longer time span off years, also acid capital, a subject with appreciation going to regular wear and tear and obsolescence due to technological advancements. Hence, at periodic intervals, these capital assets need toe need to be replenished by investments. All why loans, for instance, in case off a restaurant or caffee capitalist spread towards decorating the indeed years or acquiring kitchen equipment, but over years to the core Asian me get tell or out of fashion and hence require remodeling off the space Where US kitchen equipment being old mirrors er than frequent breakdowns, interrupting or spoiling meal preparations. Next is working capital. This is the money you spend towards maintaining inventory in various forms to contribute to its shark term value creation. If you can recall, we had earlier discussed about the lack time between the production off Kurds the actual point off payment realization between these points and time. You require money to carry out operations. This required amount is the working capital invested in business. This can be inform off INR angry as well as indirect costs. Now that you understand the types of capital and business, let us move on to optimizing capital Forster's limit. To understand this, we need to do a quick recap toe our discussion on core offering as we had discussed your focus on the core offering greatly influences your car structure and capital expense, as we had discussed the example off subway and McDonald's send subway focuses on delivering freshly big Greg they capital expense includes an oven at the outlet. While the same case may not be true for Mcdonnells, hence, by focusing on your core offering, you can draw the line and limit your capital X investment as well as risk exposure. Setting this life cycle while purchasing and capital asset, you should not only consider the one time cost, but also the maintenance and operating costs. It is like asking for the gas mileage and annual maintenance costs while buying a car life cycle cost and simply comes is the combination off all such costs associated with capital ASIC. Since acquiring a capital ASIC results and operational costs, life cycle costs becomes really more important than the up front cost itself. Third is in When Drea. Now that you understand working capital, you'll realize that a significant amount off your investment is inform off and reentry. Hence, it is very important for you to have a tentative monthly projection, often currently based on the seasonal cycles. This will help you understand when you require more money and subsequently avoid cash Qurans while reducing costs associated with ad hoc measures and finally, dead stop. When you walk into a grocery store, you will notice that most shells are either full or at least 50% lording. It is human psychology that less quantity often item you see on the shelf the lessons line you will be towards buying it. Hence, in any store, companies need to maintain a minimum stop to sell. Now this is the stock. Ticked does not move, but sties Norden terms Norn in absolute terms. Parting towns off value. The cursed morning value of the stock is known as dead stop. Once replacements arrive, the portion off the stock, which does not move, is either moved through. Other channels are written off as released. Hence, as a retailer or seller, it is very crucial to recognize the trains off dead stop and mitigate periodically. Is it a particular style of goods that does not sell well? Or is it a particle price? Trains my mitigating it periodically, you can reduce the capital trapped and that stop, so this brings us to the end off the section on money. If you have any concerns, please feel free to post it under discussion for him so that others can also benefit from the answers. Thank you once again for selecting the schools, and I would request you to leave a review as it will help us improve, while others can choose better based upon your review. 15. 24 BONUS Growth Budget: Welcome to this bonus lecture on Growth project. In this lecture, we are going to discuss the religious costs that you need to account for while considering growth like this. Think off a situation where you have established your business. Onda generating sufficient revenues to cover your operational expenses along with capital recovery. But now you want to grow your revenues within the same set of. In order to grow, you need to first acquire more. Invent gree, inform off man novels or stock. You can acquire this additional invent tree through line off credit from your suppliers. In simple words. You do not be upfront, but promise a payment within 30 or 40 days from delivery. This helps you avoid straining your cash flow as you need more money for the next expense. Now resell your additional inventory. You need to advertise your product or company. For this you left toe be creative agencies for content and media agencies for publishing your advert easements across religious media channels such as newspaper, Internet, outdoor, another's media agencies can also provide you credit if you have a continuous business. Relation, however, whom to take credit from depends on availability as well as the amount off money and various of the factors. Hence the call is highly contextual, and you yourself would be a better judge moving on to the next. It is very unlikely that you will manage credit for put the previous expenses on. Even if you do, there are still chances that you may be unable to generate revenues to cover up the cost within the stipulated time frame. Hence, you will require the sanction additional working capital loans from bank, and this would imply an additional interest cost. And finally, since you're putting in so much effort and undertaking certain risk, you would expect a certain reward. Hence you also count for your profits as well as taxes on your income. So while considering Grote, you should always account for these chunks off cost. 16. 31 Brand Experience: welcome toe This lecture on brand as usual, let us begin by understanding the concept brand is no so not just a visual identity. But the entire experience catered to the user with generates a certain perception in their mind. Lately, with the I grant off digital media and visual designs, many have to have looked a misconception about brand being merely visuals. Inform off graphics or physical appearances as removed to the lecture. You will be able to develop more clarity. To understand Brian. We need to understand the leaders that going toe building a brand first, its characteristics. These are the core characteristics and qualities that are reflected throughout the experience. These characteristics are defined based upon your target audience and the manner in which you want to portray your solution. For instance, certain Bryants reflect feminine or unisex characteristics based upon their consumer demographics. A couple of years ago, when Apple revamped the I. U S designed certain study found act, Apple was targeting feminine consumers through the new design. But it does not only about attracting a particular group, but also we're reflecting emotions. Most of the fast food brands like McDonald's and Domino's associate themselves with happiness. Also the lead soft drinks brand. Coca Cola associates itself with happiness, where a certain brands like BlackBerry associating themselves with serious emotions to reflect the core characteristic off security, these qualities and characteristics become an input to the next layer. Once you listed characteristics, you can proceed with the development off visuals, visuals, the elements in the visuals. Such a shapes, lines and colors affect the characteristics off Brian. Although you need to hire designer who is an expert in this subject, I'll give you one or two examples for your understanding. For instance, ST Lines reflect masculine characteristics, in contrast to called lines for feminine colors like red reflect happiness while attracting attention and is widely used by consumer brands like Coca Cola, McDonalds, KFC, Fmcc products and many more colors like blue angry reflect calmness with serious business. And, as he was widely buying the prices, like Boeing, tell IBM, KPMG and others. Such rituals are also reflected, and physical appearances in terms off packaging are collects. Our office is moving on to the next level off communications. This has to do with the tone and the content off. Your article in communication content has a lot to do with the choice of Florence, for instance, walking into an office and the receptionist greets you with Hello, Who do you want to meet? Do have an appointment bosses. Hello. How may I help you? Can you please have a seat on the boat? The circumstances. The receptionist going to do the exact same chalk job, but the choice or force along with the tone creates different impressions. Now imagine with the thousands off words going out through your meal and telephone lines every day, how important it is for you to set the guidelines right and finally thanked our experience . This is to some off the previous three, as experienced by the consumer to help you relate to this. Notice your experience off flying with different airlines or staying with different hotels . There are very subtle differences at each touch point not only the visuals and communications, but also the manner in which the entire experience sums up. And finally, the perception. This is what the consumer things about the anti experience with your brand and generates and image in his mind. Although this is the result off all the previous items, this alone is the most important part. Human brain by default, remembers the extraordinary inputs and forgets the usual and the extraordinary can be good or back to take benefit off this hard wiring in our brains brand strike to make certain touchpoints hard hitting from complementary massages to business class of Crete's. These are the extraordinary instances your brain will remember, and similarly, this is the reason they try really hard to not screw up because any deviation from usual with a good or bag will imprint in your perception about their brand. Now that you understand brining, let us know how you can executed Successfully Ran is often referred to as a capital asset. But why? Its shares? One important characteristic with capital assets once required, you need to spend on operations to generate output promise, and this is why you need operational integration. To make it a continuous process, you need toe integrate certain agendas and your operations, such as training on your communications, to be apart off the staff training sessions or establishing guidelines and operating procedures for your design tea. Also maintaining branded merchandise costs money. Such additional project needs to be considered by a finance team during annual budgeting moral. If your business has retail outlets and when choosing to Franchising, you may have to establish procurement guidelines and conduct inspections to ensure that the physical appearances are in accordance to the requirements you need to incorporate planning off logistics for then your operations. So this brings us to the end off this lecture on brining. If you have any concerns, please well free to post it on the discussion for hope that you have been enjoying the score so far and have learned valuable information. 17. 32 Marketing: Welcome to this lecture on marketing here. We will understand the concept, tools and techniques off marketing to help you reach out more effectively. Let us begin by understanding Marketing. Marketing is an activity used to showcase your product. I'll push it to prospective buyers in the market. Marketing is often confused with aggregate easement, which is merely a subset. Marketing is the entire bunch off activities that need toe work in conjugation to generate leads. If you merely focus on showcasing your product through Agra Cheeseman, it may not be effective at all. Now that you understand marketing, let us understand the popular summary off marketing. It starts with attracting attention off prospective bias through different means off Agra. Tease me today it can be online as well as offline. Attracting attention often includes catchphrases, Brad Kyllo's attractive visuals and catching sounds. This is red. The bulk off the money is spring. Once you have attracted the attention, it is time to generate interest by conveying relevant information to the prospects. This information can be inform off, solving a need to satisfying a warrant and much more. This depends on the nature off the product and your strategy. After generating interest. You move onto sparking desire by tickling the right emotions. Our brains are hardwired to act either too many. My speed or maximize pleasure on this is re too often used. Magara Tasers If you observe fast food brands and frozen dessert companies, their aggregate easements emphasize mawr on the happy experience off consuming the product to spark your emotion. And finally, all the upper three would be irrelevant if you do not encourage or confused convinced the prospect to act these days. Marketers promote means to acquire the product easier and quicker delivery or attractive offers. Thes can be anything that encourages instant action. Limited. Your discount is the most commonly used trick, and once the action is taken, you have successfully generate it. A lead. Now that you know about the popular summary, let us talk about the tools. First is to package your product. This is about creating a rapper. Imagine if airlines were selling baggage seeds, food, lounge, pass and other items separately. The complexity off the experience were defended off many buyers. When we talk about packaging and marketing terms, it is not about combo packages. Such combo packaging is a part off sales, where slow moving products are club with popular products to increase ticket size and in cash and reentry quickly part in marketing terms. It is about making the product easier to be understood by the prospect. Instead, often abstract description off your service. Present ing it and form off. Clearly defined. Tell your Abel's or insert off a cumbersome form of product, which requires users to assemble parts providing a free installation service Next. Once you create the package, you need to showcase it to potential bias. You can reach them through different media channels, but the choice off your channels is largely dependent on the type off your audience. For instance, there are many B to B companies who never aggrandize and mainstream media, since their product is lonely. Barred by businesses, they promote their product only through industrial magazines or trade fast. If you are into a consumer product, your choice off channel may be dependent on the each group or the type of people who who buy your product. For instance, aggrandizing baby products through social media would make sense. Although the babys are not on social media, but their parents are where us aggrandizing edl typos for old people on social media, we not make sense. Once you showcase the product and catch interest, it is time for you to translate the right information. This information may not necessarily be about the product. It can also be information about the limited beer discount or how the product is cheaper than the cheapest competition. Today, attention span is shrinking, and advertising real estate is becoming more expensive. Hence your information needs to be crisp and hard. Hurting the information should strike the right emotions and spark desire. And finally, to be able to connect with the prospect it can be. Inform off app, download, phone call, website, visit email or even a physical meeting. Today, there are plenty off avenues to connect with your audience. Once you have encouraged your prospect to take action, you need to provide the means to let them connect with you. So this brings us to the last topic off this lecture and marketing. We have active and passive marketing and the previous two slides We have covered active marketing to begin with, Passive marketing may also be referred US brining. You might have heard the marketing adage that says art off site is out of mine or about the top off mine phenomenon on the sole purpose off passive marketing is to maintain a presence in the mind off the prospect. Most products today either need replenishment or replacement, and you need to ensure that you stay in the consideration. Set off the prospect when the replenishment or replacement is considered. This is stunt for visibility. Inform off constant advertisement. Next, you have to reach out. Gun the customer occasionally to establish a connect for B two b. Business is this can be a casual visit on invitation to a corporate Della for companies maintaining personal information. Ah, party or anniversary wish Selves as a good touch point. And while connecting through these touchpoints, you can also push product information, certainly inform off newsletters or infirm a tive inserts. And finally, when the time comes, you expect to be in the consideration sect and expect an inquiry. So this brings us to the end off this lecture on marketing. If you have any concerns, please posted on their discussion forum, and I'll be seeing you in the next lecture 18. 33 Sales: and we finally talk about sales. This is where all your investment, whether it is inform off marketing or heads capital expense and reentry is finally and cashed. It is the art off the deal where lead is converted into a client and driven us generated. No wonder sales people have been highly incentive ice or have been given key designations. So one more secret here, maybe you have observed. So if you meet a sales executive, they always have higher designations, like the VP off seal the president off seals the year manager. The department head. Well, the reason for giving such designations is to ensure that the power off his designation enables him to get a point appointments easily from other companies. So many times when you see a VP of sales card, you're expecting someone senior on some really junior guy walks in. So this is just another illusion that many companies create. So now that we're finally talking about sales like the stock over the four principles that salespeople use, the first is concept selling. In this case, it is the idea of having the product than the product itself. There are many products who, which are sold as concept, if you if you can get it through back at the smoking article. Cigarette Agra teas runs back in the sixties or the seventies, the companies were focusing more on the idea of having a cigarette and relaxing rather than the product itself, arguing Today, If you look at the Agra teas, when the fast food wrenches for burgers or pizzas, it's more about the idea of enjoying the consumption off the product and the product itself . Thes products by themselves have no direct benefit or value addition. A tall and sometimes this is also the keys off luxury products. For instance, buying a Louis Vuitton it's more about the idea of having the product than the product itself. Next, we talk about value, the ability off the product to generate greater value. This is in case off morning equipment, for instance, going from a conventional manual sector to robotic assembly line. That's a huge investment that the company needs to make. But to sell this the companies were rich more about the value that the product is going to generate in terms off savings connected to manner was an associated cost. This is also the related to certain services. Like concerning people spend a lot of money. They pay a lot to consultants. But what is it about? It's not about the concerning, but the ability off the product or the service to generate greater value for the client and finally, the state of school, focusing on the unique ability off the product than the whole. So there are certain products if you notice they promote one or two characteristics of the product than everything else. So these are usually the products which have a differentiating characteristic than the entire state of school off the market. It can be it can be Tesla Tesla, for instance, if you look at the automobile market, it was tough only or among the few electric car Brian's. So it was promoting a unique ability off the product. And and even today it is the driving assessed or the autonomous driving off test love, which is, Ah, selling factor and is breaking the state of school in the entire segment. And finally, price. They're certain products. You cannot pitch anything else, but it's all about the price, like frequently replenished industry goods or FMC products on high discount. So There's absolutely nothing you can pitch but your ability to offer the best price. And to maintain this. A lot of companies go leaps and bounds to manage economies off skill, to offer the best possible price to their clients. And this is how the art of the deal hookers. Now that he knew about sales, let us talk about the three different types off sales that you would be doing. The 1st 1 is hunting these type of Leeds or these kind of deals would be a major chunk off of all. This is where most off your sales execute er's were reporting it in their efforts. The time cycle for these leads or these kneels is really short, but these are average value deals. These are the bread and butter deal's off your company, but the air of short, smaller valley, or average value next one is farming. This is with some off your sales supervisors or high ticket sales. Fellows will be putting in their time. The time cycle required for these kind of deals or leaves is usually high. You meet the customer once in a while every month or every three months, establish a connect And if you could remember the passive marketing that we spoke about, you do these activities to stay in the consecration sight till the requirement as actually floated. And once the requirement is there, you are able to close the deal. These kind of deals reads rains from average value to slightly on the higher side. And finally, the grizzly. This can be you or your vice president off seals, you can see some sales. Execute is not working much. They would be staying port, waiting for the market to go up, waiting for big opportunities to arrive. These opportunities are really long time, and you can never be sure. But the value of these deals is insane. Maybe one deal can take off six months off target from his books. So these are the people who are lazy. But go after the big ones. So as the name appropriately suggests, these are your Grizzlies