Business Management Consultancy
“If you don’t build your dream, someone else will hire you to help them build theirs”. Dhirubhai Ambani
What business shall I start? How to start? Whether I will go for online or offline business? When a person thinks of planning to start his/her entrepreneurial journey These kinds of several questions come to mind. It takes lots of time, energy and money to finalize and start your own venture. Lots of difficulties arise at initial phase. Most of the time, the BIG DREAM cannot come into reality due to lack of proper guidance.
Somehow finalizing business idea, the questions arise-
a) How to set up?
b) How to finalize business plan?
c) What strategies should we adopt?
d) How to procure our materials?
e) How to manage inventory?
f) What are the legal formalities we should maintain?
g) What will be our marketing strategy?
We are here for you to answer your questions. We help start-ups because these are the engines of any country’s economic growth. Star ups give us innovative products, create jobs, and improve our social lives. With our founder’s in-depth Engineering and Management knowledge, multinational experiences, we are well equipped to guide your business from idea generation to marketing strategy. We don’t offer advice but guidance and inspiration to fulfill your dream as a successful businessman
The services we provide are described below with brief descriptions-
1. Generation of Business Ideas-
Generation of promising business ideas according to your resources is the first, and foremost step towards establishing a successful business. The key to success lies in landing into the right business at the right time. Monitoring your resources like land/property location, investment capability, educational qualification, experiences, technical know-how, evaluating your strength and weakness, identifying skills, interests, personal qualities, we will short-list some business ideas for you.
2. Initial Idea Screening-
After jotting down several ideas, you have to decide on which ideas to pursue or which one to discard. For that, we will do market research, and several strategic analyses, which include SWOT Analysis, PESTEL Analysis, Porter’s Five forces analysis. The brief descriptions about these are given below.
3. Market Research-
Market research involves finding out customer demands and determining methods to satisfy those demands. It is the systematic collection of information and interpretation of information about individual or organizations using the statistical and analytical methods and techniques to gain insight or support better decision making.
The proper market research can help and organization to
a) Generate reliable customer feedback to improve product’s usage, performance, and reliability
b) Find out market segments for growth and expansion
c) Shift emphasis on product, price, promotion targeting special group of buyers
d) Target poorly served customer niches as fresh opportunities
4. SWOT Analysis-
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. This is really an important tool to analyze a business, product, place, and person etc. For an organization, this analysis helps to take a conscious, deliberate, and systematic approach, to identify internal factors i.e. Strength and Opportunities of its own, and external factors i.e. opportunities, and threats that may arise.
Strengths- These are your positive factors, which give advantages over your competitors.
Weakness- These are your negative factors, which you should think upon to improve.
Opportunities- These are the possibilities may come due to some external factors like technology, Government Policy etc.
Threats- These are the external factors, which can create trouble in your business
Utilizing its strength completely, minimizing or eliminating weakness, taking advantages of opportunities, a company can avoid possible threats and gain sustainable competitive advantages from its competitors in near future.
5. PESTEL Analysis-
This is a strategic framework to help organizations to assess macro environmental factors. It is an examination of Political, Economic, Socio-Cultural, Technological, Environmental, and Legal issues. Some of the factors, which we should consider are-
Political Factors - Government policy, Government stability, tax structure, foreign trade policy, trade restriction, labor law etc.
Economic Factors - Economic growth, interest rate, exchange rate, inflation rate, unemployment, internationalization of business, money flow etc.
Socio-Cultural Factors - Aging population, social mobility, Life-style changes, population growth rate etc.
Technological Factors – Technological Development, Government’s spending on Research, the pace of technological change, automation etc.
Environmental Factors – Global warming and climate change, animal welfare, waste management, environmental protection law etc.
Legal Factors - Employment law, Consumer law, Company law, legislation about trade practices and competition, discrimination law, health and safety law etc.
6. Porter’s Five Forces Analysis-
It is a great strategic framework innovated by Michael E. Porter of Harvard University to analyze the attractiveness and potential profitability of an industry. The five forces and their factors are
Potential of a new entrant into an Industry- Government policy, start-up cost, profitability, product differentiation, customer loyalty to other brands
Threat of Substitutes - availability, price, and quality of close substitute, buyer’s inclination towards substitute etc.
Bargaining Power of Buyers- Buyer’s strength, price sensitivity, switching costs, concentration etc.
Bargaining Power of Suppliers- Supplier’s density, controlling power, switching costs, the strength of distribution channel etc.
Competition in the Industry- level of competition online or offline, advertising expenses, innovativeness, transparency etc.
7. Franchise Opportunities-
When you want to start your own business being a part of big established company then you should opt for taking a franchise. A franchise is like individually owned business is operated as a part of a large chain. The products, service and their cost are standardized. The parent company (franchisor) gives the right to the individual dealer (franchisee) to market the product, service, use the franchisor’s trade name, trademarks, reputation and way of doing the business. In return, franchisee agrees to pay a fee or percentage of gross sales to the franchisor.
There are some advantages while taking a franchise.
• You can save time, money, and work that goes into start-up phase.
• You are starting a business which is already been accepted by the customers
• You can utilize parent company’s marketing campaign.
• You will get training and management assistance by some experienced person in your business
• You will be guided even in day to day operation
• It will minimize your risk.
8. Business Planning-
After finalizing your business, you have to make a business plan, which will provide a brief description about your business.
The basic Business Plan contains-
I. Summary of you business which includes-
A) Business Description
1. Business Name with style
2. Business Location
4. Market and Competition
5. Management Expertise
B) Business Definition, goals & Objective
C) Summary of Financial Needs, and application of funds
D) Earnings projections, and potential return to investors
II. Market Analysis
A. Description of Total Market
B. Industry Trends
C. Target Market
III. Product or Service
A. Description of Product Line
B. Proprietary position- patents, copyrights, legal and technical considerations
C. Comparison to Competitor’s products, operations, facilities, quality
IV. Manufacturing Process (If applicable)
B. Source of Supply
C. Production Methods
9. Portfolio Optimization-
This is one of the most important things in a business. What stocks should be there in our portfolio? Efficient portfolio optimization ensures the ideal mix of products to fulfill customer demand as well as minimize capital requirements.
We can offer limited/unlimited assortments of high/low-quality merchandise. Our total Stock Keeping Units (SKU) will depend on our customer’s demand and competitor’s strategy to ensure maximum profit with less capital requirements.
10. Sourcing Strategy
In today’s globally competitive business environment, purchasing is becoming a critical participant in the firm’s strategic planning function. It is a basic process common to all organizations which accounts approximate 40-50% of the entire budget. It may be machineries, inventories, raw materials, or service. Therefore, it has a tremendous impact on the bottom line of any business. Several questions arise while taking purchasing decision like shall we
• Go for global or local?
• Opt for Single or multiple sourcing?
• Buy on contract or on spot basis
According to Peter Kraljic, we can categorize our product into four categories
a) Strategic items-high profit impact, high supply risk
b) Leverage items-high profit impact, low supply risk
c) Bottleneck items-low profit impact, high supply risk
d) Non-critical items-low profit impact, low supply risk
Based on the types we have to take purchasing approach
||Purchasing and Supplier Management
|a) Identify sourcing categories
b) Identify sourcing constraints
c) Total Cost Analysis
e) Purchasing process review
f) Supply market study
a) Request for Information (RFI)
b) Request for Proposal (RFP)
c) Request for Quotation (RFQ)
d) Utilize vendor evaluation tools
e) Price and cost analysis
f) Total Cost of Ownership (TCO)
h) Supplier's continuous evaluation
i) Early Supplier Involvement (ESI) and Co-Design
|a) Order emission
|Capability of using IT systems
||After sales services
||Lead time Flexibility
Key Criteria we use to select a supplier
11. Inventory Management-
Today’s customers want the right product, at the right time, in the right amount. Due to large number of product demand and availability, efficient inventory management is an integral part of a business to run it efficiently. Inventory planners should consider about buffer/safety stock, reorder level, pipeline stock, anticipation stock, cycle stock etc. while managing inventory.
Even suppliers can help to manage optimum inventory level through various types of collaboration with the organization These are
a) Vendor Managed Inventory (VMI)
b) Collaborative Planning, Forecasting, and Replenishment (CPFR)
c) Collaborative Transportation Management (CTM)
12. Supply Chain Solution-
Supply Chain Management (SCM) is becoming one of the most important processes in today’s industry. Effective optimization of a supply chain can contribute the fast response to demand management, procurement, planning, production, warehousing, transportation, and distribution.
According to Council of Supply Chain Management Professional, “Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities”. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
According to the Global Supply Chain Forum, The Ohio State University “Supply chain management is the integration of key business processes from the end user to original suppliers that provides products, services, and information that add value for customers and other stakeholders”.
Properly managed supply chain can eliminate seven deadly wastes i.e. Transportation, Inventory, Movement, Waiting, Overproduction, over processing, defects in an industry and can create more profitability.
13. Customer Relationship Management (CRM) –
The goal of any industry is to increase customer loyalty by providing customized products and services, as appropriate. It has a significant impact on the bottom line through increasing sales, improving plant capacity, reducing customer service costs, improving asset utilization. That’s the reason why CRM plays the vital role in organization’s success now and will be in the future. It provides the structure for how relationships with customers are developed and maintained. One of the important tools of CRM is customer segmentation and service accordingly.
Key Criteria to categorize our customers
Market share goals/ penetration
14. Pricing Policy-
There are several pricing policies we can adopt to retain our customers as well as to attract new customers. Successful organization fixes their prices based on competitor’s pricings and deals, brand strength, category storability, availability of a particular brand or product in the market, business stability i.e. new or old etc. There are several pricing policies company can adopt. Some of these are-
Value-based pricing- Where price will be based on customer value creation. It can be adjusted by increasing benefits and lowers costs. Also it can be tuned by categorizing customer groups.
EDLP (Every Day Low Price) - It means maintaining low prices through minimizing variation and deal discounts. Adapted by Walmart, Lidl, Food Lion, and Lucky
Hi-Lo pricing- It means maintaining high regular price but offer frequent and/or deep discounts. This strategy is perceived by Kroger and Safeway super market
Besides that, we can use different forms of price promotions, such as temporary price reductions, coupons, and multi-item promotions, and combine them with non-price promotions like features, displays, and other POS material etc.
But while designing a price strategy, we must keep in mind that lower prices are not the only way to differentiate. We should highlight other attributes that are of value to the customer and cannot be easily imitated by competitors, such as superior product quality, additional services (e.g., home delivery, a nursery for small children), a unique shopping environment, additional marketing activities (e.g., loyalty programs, non-price promotions etc.
15. Marketing/Advertisement Guidance -
Advertising is a psychological process to make a customer buy or inclined to buy a product through giving a convincing reason, creating interests, arousing desires. Proper advertising helps us in several ways. Some of them are-
a) expand the market
b) reach to the new customers
c) announce a modification/special offer
d) announce a new product/ service/price
e) educate customers
f) attract investors
g) Attract//maintain/ get back lost sales
Media available in advertising-
1) Print Media- Newspapers, Magazines, trade publications, Institutional publication, leaflets
2) Electronic Media- Television, Radio
3) Outdoor Media- Posters, Hoardings, Neon Signs, Sky Advertising
4) Vehicular Media- posters in Trains, Buses, Taxi, Auto rickshaws
5) Speciality Media- T- shirts, caps, Stickers, Badges etc
6) In shop media- Banners, Hanging posters, stickers
7) Internet Media- Google Adwords, Facebook, Twitter,You Tube, B2B or B2C websites, SEO etc.