Business Networking – Dutch Uncles

Upcoming Business Conferences And Expos In Beauty And Wellness

Tanisha Achrekar — Sat, 27 Mar 2021 02:35:04 +0000

Beauty conferences and expos were missed during the lockdown. Fortunately, the wait is over and the restrictions are loosening up. The beauty and wellness sector is ready for its much-anticipated conferences and expos. The industry has managed to revive and recover in 2021 and is ready to catch-up with the new trends and learnings.

Beauty and wellness conferences and expos in 2021

International Beauty & Spa Expo
Nexus Exhibitions Pvt Ltd is hosting the International Beauty & Spa Expo on the 4th and 5th of May, 2021 in Pragati Maidan, Delhi. The event is internationally acclaimed and one of the largest in the world. The event is organised to provide networking and business opportunities to traders, buyers and professionals.

IIBF – India International Beauty Fair 2021
IIBP is one of the biggest beauty fairs in South Asia. The fair showcases a startling variety of beauty services, beauty products, fitness and wellness trends, packing and labelling solutions. The three-day exhibition is scheduled for the 5th, 6th and 7th of September, 2021 at Bombay Exhibition Center in Mumbai. India Trade Promotion Organisation (ITPO) is also associated with the event as a co-organiser.

Cosmetic Ingredients and Packaging India Expo
Cosmetic Ingredients and Packaging India Expo is organised on the 28th and 29th September of 2021 in Bombay Exhibition Centre, Mumbai. The expo is primarily focused on the manufactures and suppliers of raw materials and personal care ingredients. The exhibition is held by IX Events Private Limited.

Signature Event by Cosmoprof India
This event has its niche focused on the business-to-business (B2B) of the beauty and wellness sector. The event is being conducted annually and has received a magnificent response. The event is held from the 23rd to 30th of October, 2021 in the Bombay Exhibition Centre (BEC), Mumbai. There are usually more than thousands of participants and around 400 exhibitors in the exhibition.

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Conferences and expos in beauty and wellness sector are a great networking opportunity.

International Beauty Salon Trade Show
This trade show is held in Gujarat University Convention and Exhibition Centre (GUCEC), Ahmedabad on the 15th and 16th of July, 2021. It is a one-stop show for all things beauty and wellness be it the products, trends, services, labelling or packing. The trade show is for manufacturers, wholesalers, exporters, retailers, dermatologists and cosmetologists.

Professional Beauty Business
Professional Beauty India has launched its new format, Professional Beauty Business to finally conduct the much due physical meetup. With a series of hotel-based events hosted for brands and key salon buyers to meet. The event is held for salon owners and directors. The event is held in JW Marriott Hotel, Kolkata on the 19th and 20th of April. There are also Profession Beauty conferences being held in Delhi on the 6th and 7th of July, 2021 and Tamil Nadu on the 15th and 16th of December, 2021.

International Beauty & Wellness, Myanmar
This international conference is held on the 17th and 18th of October, 2021 in Sedona Hotel Yangon, Myanmar. This conference is a great way of networking for entrepreneurs who want to take their business international. Businesses in aesthetic clinics, facial aesthetics, slim and beauty clinics, fitness centers and other health and beauty centers are usually a part of this conference.

What’s in it for me?

These conferences are a great opportunity for networking with other businesses that are also a part of the beauty and wellness sector. With industry experts sharing their knowledge and other businesses in the sector sharing their experiences, there is a lot to gain from their expos and conferences. Also, interacting with people in the same industry may give you a different perspective on existing challenges you may be facing in the business.

The post Upcoming Business Conferences And Expos In Beauty And Wellness appeared first on Dutch Uncles.

Trade Shows: The Art of Building Your Industry Network

Kiran Kennedy — Wed, 03 Feb 2021 04:35:03 +0000

What Is A Trade Show?

A trade show is similar to a convention in some ways but it can stand as an entity of its own. The most widely accepted definition of a trade show is that it is an exhibition where companies gather to showcase their products and services. The difference here, between a trade show and an expo, is the audience limitations. Trade shows are generally not open to the public. Instead, it is limited and restricted to only those who register to attend, such as company representatives, members of the press and some select group of consumers. This type of limitation of attendees helps promote a constructive conversation between companies, competitors, buyers, investors and consumers alike.

The Tie-In: Trade Shows, Expos and Conventions

Exploring the other end of the spectrum, let us have a look at conventions. Conventions are similar to trade shows and expos, in that, they are large scale gatherings. The difference here is that often it is merely a gathering of like-minded people who are looking to connect and network with others who share similar interests. A good example of this is Comic-Con where comic book enthusiasts gather to dress-up, talk about and take part in activities relating to their favourite comic-book publication.

Now that you have an idea of what trade shows and conventions are, how exactly does the expo fit into the picture? An expo or exposition is simply a large-scale trade show that is open to the general public and often conducted on an international scale. Think of it as a hybrid of a convention and a trade show. It has all the company and sales networking elements of a trade show with all the conferences, seminars and idea-sharing of a convention.

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Trade shows are an ideal place to build brand awareness, especially within one's industry given that the majority of the attendees will be top industry professionals and members of the press.

Why is it important even in an ever-digitising world?

Builds Brand Awareness

Trade shows are an ideal place to build brand awareness, especially within one’s industry given that the majority of the attendees will be top industry professionals and members of the press. Having face-to-face interaction with such a niche audience will help widen your brand’s reach in future endeavours.

Targeted Leads

The aim of a trade show is to sell, and that is exactly what you can do here. It is a well-known fact that human interactions have far greater results in terms of recollection and relationship-building when done face-to-face. Giving these niche attendees the opportunity to interact with the type of product or service you will be providing is a great confidence booster for any potential buyers or investors. By building these connections, you increase the chances of a successful follow-up, which brings us to the next point.

Closing the deal

Given that it is such a limited list of attendees, if you plan your targeted marketing strategy right, you can easily identify and close the deal with industry leaders that you wish to align your brand with.

An Opportunity to Study the Competition

Think of it as one big spy-game, all the top players are at the trade show to study each other and maximise their marketing and networking efforts. You should do the same. Take a stroll around the floor, casually engage in conversation with competing businesses, get them to tell you about their pricing strategies, marketing plans and so on. Compare this information to what you already know about the industry, do a cross-analysis and find out what is working and what is not. If you can identify a weak point that can be used to your advantage then it will put you ahead of the competition.

The Ideal Networking Space

All the selling, scheming and analysis aside, at the heart of a trade show is the intent to network with like-minded industry professionals that will not only help foster long-lasting relationships but help you as a business owner gain the lay of the land. It is a great opportunity to gain some very valuable industry insights.

The Benefits and Risks of Tradeshows Going Forward

The Benefits

It costs less to close a sale at a trade show than it does in any other external way. Think about it, at trade shows you have industry titans who are actively looking to purchase and invest in businesses, it is ideal. However, in the day-to-day marketing grind, a company will easily spend twice what they spent on a trade show booth to invest countless hours of labour and cold-calls trying to get potential buyers on board.

The other advantage – there is a trade show for nearly every industry or business. If you Google trade show alongside your industry name, there is a fair to a good chance you will find an event for it.

Having said that, it is a risky time to be meeting in large crowds given the state of the world and the looming presence of the pandemic. However, given that you take the appropriate safety measures it is clear that these events have a lot of value to contribute towards the growth of your business.

The Risks

The pandemic poses the largest risk currently. Despite vaccines coming into play, there is still a significant risk there.

Apart from that, the majority of the risks rear their heads in the planning and funding stages:

- - Trade shows are time-consuming and often require more than a day or two to successfully complete.
  - If it is a travelling trade show the cost can be significantly higher in terms of moving, setting up, accommodations and so on.
  - If you do not do your research you will have a hard time navigating the immense amount of competition that will be present at the trade shows, thereby dragging down the productivity of your outreach efforts.

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Trade shows are time-consuming and often require more than a day or two to successfully complete.

Setting Up Trade Shows

Phase 1: Planning

- - Gather Data– If you attended past shows or know of past shows, reach out to the attendees and do a survey, analyse sales leads, the cost they faced and the overall success.
  - Work Your Budget – Prepare to spend a decent amount on renting a space, booth design, promotional giveaways, advertising, salary compensation, accommodations, meals, travel and so on.
  - Run a Cost-Benefit Analysis – Look at the expenses you might incur and weigh it against the benefits of possibly succeeding in meeting your goal to see if this endeavour is worth doing.
  - Set a Timeframe – The initial setup itself takes days if not weeks, set a timeframe that accounts for this and helps maximise your floor time.
  - Research Your Audience – Understand your audience to craft a specialise marketing plan that is guaranteed to make its mark at the show. Look into demographics, economic backgrounds, lifestyles and so on.

Phase 2: Pre-Show Planning

- - Practice the Pitch – Run your employees through drills for best and worst-case scenarios that will help them think on the spot. This will improve the customer experience on D-Day.
  - Advertise – Use whatever tools you have to advertise across the industry. Social media is a good option as is Google AdWords where you can target specific target audiences.
  - Outsource – It is possible that your business may not have the bandwidth to handle a large-scale task like a trade show if you are a start-up. If that is the case then outsourcing is the next best option. Find an agency that can work within your set budget and that it has a reputable standing in the industry.

Phase 3: The Actual Show

- - Make a Good First Impression – The booth will do most of the work, so make it inviting and eye-catching. Use different media such as video, audio explainers, pamphlets and so on to make it a comprehensive experience upon first glance.
  - Build a Relationship –At a trade show, you are the face of the company, so make it count. Be warm and inviting, encourage them to ask a lot of questions and try to genuinely get to know them. This sets the base for a strong relationship with a higher likelihood of a sale down the road.
  - Give Them a Show – Take Elon Musk and one of his recent shows where he did a live demonstration of Tesla’s Cybertruck. Regardless of the fact that it faltered a little the aim of making it memorable was achieved. A live demonstration creates buzz and gets people excited about your product or service.

Phase 4: Follow-up

- - Be Fast – Do not waste any time after meeting your potential buyer/investor. Follow-up with them and engage before your competition has the chance to do the same. Follow them on social media, write them an email, and try to close the deal with a hard-sell phone call to make the most of the freshly forged relationship.
  - Internal Audit – Take a look at how your team performed after the show, and see how many leads they got, how many of those were successful prospects and where it fell short. This will give you an idea of what needs improving for the next show.

Check out our article on expos to see how you can explore different and larger avenues for growing your business network.

The post Trade Shows: The Art of Building Your Industry Network appeared first on Dutch Uncles.

Fast-Track Your Franchise Network to Embrace Growth

Avijit Dutta — Tue, 02 Feb 2021 10:35:02 +0000

Are you a business owner looking to scale your business through franchising? Are you a newbie franchisor concerned about your franchisee network delivering sub-par results in accelerating growth? Well, take heart, this article will throw some light for you to course-correct and fast-track your franchisee network in a four-step action plan.

Franchising business models have worked wonders for many brands across the world when it came to rapid scaling and achieving accelerated growth. In India, well-known brands, such as McDonalds, Subway, DTDC, Inxpress, Lenskart, The British Institute, Sanjeevani and Thomas Cook to name a few, have gained significant success in growth, especially in building visibility and establishing territorial market development.

A caveat: Prima facie franchising looks easy; however, it requires a careful strategy, intelligent tactics and flawless execution to achieve growth on a fast-track.

Before we delve into ‘fast-tracking’ let us cover some foundational ground and key concepts associated with ‘franchising’.

Franchise Model: The Basics

A franchise model works well for businesses that have tasted significant early success in establishing the brand by offering real value for customers in a given market. Once a business has grown past this stage the entrepreneur might explore franchising as a growth multiplier.

In a franchise business model, there are two sides, a franchisor and a franchisee. The franchisor is the business which owns the brand, the product and/or the business format. A franchisee is an individual who takes the rights over using the brand, product and/or the business format of the franchisor in a select location within a defined territory.

In this transaction, the franchisee pays the franchisor an initial royalty (ranging from a couple of lakhs to a few crores) as well as a share of the revenue from operating the business periodically. On the other hand, the franchisor shares the right to using the brand, trademark, products, business knowledge, processes as well as training and marketing assistance. However, marketing support might as well cost an additional 1-3% of revenue generated from the unit depending on the agreement.

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A franchise model works well for businesses that have tasted significant early success in establishing the brand by offering real value for customers in a given market.

Fast-track franchising to fast-track growth

Step1: Evaluate Your Business: Qualify your product and business model for franchising model

This is especially true for businesses adapting franchising for the first time. Please consider the following prompts to evaluate whether your product and/or business model suit the franchising model.

1. Have you achieved significant early success (e.g., revenue, customer base) with your product or service at least in a local market?

2. Can you establish with verifiable data that your customers recognise your brand as valuable?

3. Are you clear on what you want to franchise? Is it a product, a service, or a business format?

4. Have you standardised your product or service experience creating an identifiable, idiosyncratic experience for your customers?

5. Are your business operations & processes such as sourcing, packaging, after-sales, hiring, training & development etc standardised for repeatability and optimised for efficiency?

If your answers to any of the above is a weak ‘no’, rather not an emphatic ‘yes’ then you have more grounds to cover before you should consider franchising. A business which can be franchised requires a strong foothold in the five areas mentioned above.

Step2: Educate Yourself: Understand popular franchising business models

It’s time to take a deep dive into the underlying business models of various franchising models.

Let’s imagine we are a company owning a brand B, selling product P through our store S. We have some early success in a few locations in our town. People love our product and we are making a decent profit thanks to our efforts in standardising and optimizing our key processes. Now we want to accelerate growth. We now examine the options in front of us.

If we want to own and operate our new stores we have put in the investment into leasing or buying the stores as well as bear the cost of operating the store which includes inventory, salary, maintenance etc. In such a case the resource asks for expansion and therefore the financial risk is entirely on us. Is there an alternative, we may ask? Is there a way to fuel growth without requiring a lot of investment on our part?

Say, our business advisor recommended that we consider franchising. He also pointed out that there are three options we can explore.

Let’s take a dip into those with two key questions in mind: a) who owns the stores? and b) who operates the stores? We plot the ownership on the horizontal axis and operations on the vertical axis and the following 2X2 emerges.

FOFO Model

If the store is owned (or leased) and operated by the franchisee we have a FOFO model. This model is suitable if we have completely standardised and optimised our products and business processes ensuring predictable product quality and customer experience. Also, the reliance on the franchisee to maintain quality and process compliance is paramount because of limited controls on operations and direct contact with the end customer. It follows that we need a strong franchisee audit and compliance process to minimise our risk of reputation. The investment risk is borne by the franchisee. As a franchisor, we still have to do marketing for the store and the cost may be shared with the franchisee.

COFO Model

In this model, the company owns (or leases) the store but the operation is managed by the franchisee. Therefore, the risk of investment into the store is borne by the company. The requirement of product quality and process compliance still lies with the company.

FOCO Model

Finally, we have the FOCO model wherein the franchisee invests into the store real estate but the operations are performed by the company. In such a model the exposure of the franchisee is limited only to the investment part with no access to the operations of the store. It allows the company to have complete control over the quality of offerings. Many international service brands such as Thomas Cook use this model to expand to new countries and territories.

Few more models

A franchisee might take franchise for one single unit to begin with. This kind of franchising is called a single unit franchise. Once the first unit is successful, the same franchisee might take a second and third unit and thus becomes a multi-unit franchise. It might as well be for multiple locations within a city, multiple cities, even countries depending on the nature and market potential of the business.

All these various models are based on a) risk appetite, b) access to capital and c) confidence in deliberating control. Depending on the stage & maturity of the business the company chooses an appropriate one.

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A franchisee might take franchise for one single unit to begin with. This kind of franchising is called a single unit franchise. Once the first unit is successful, the same franchisee might take a second and third unit and thus becomes a multi-unit franchise.

Step3: Build Your Story: Create a strong narrative for ‘why’ your business requires franchising.

There may be several reasons why you might want to explore franchising. Here are a few key ones.

Access funds for growth

Growing a business requires resources. We may use funds raised through equity, a business loan or a network of franchise investors. Deploying equity or debt funds in expansion may not be the best route if we do not have assured flow of capital through successive equity rounds. We might as well decide to fund growth by a combination of equity capital and franchise investments reducing the ask to raise more funds through equity. This might be a cheaper way to fund growth.

Rapid scaling and territorial acquisition

Franchising allows for rapid scaling to multiple locations. The local entrepreneur who is taking your franchise knows the local market better than you do. Moreover, a franchisee will also do the heavy lifting (e.g., daily operations) for you for a particular market freeing up your bandwidth for focussing on product development and marketing.

Reduce risk

A franchise model is essentially a mechanism to share and/or transfer financial and market risk to participants. This way risk is decentralized and fragmented. Performance of one unit may not affect others. You can always close/shift a non-performing unit to other potential location without attracting a full share of the cost of failure.

Build a lean organisation & reduce cost

Franchising essentially means a transfer of risk through outsourcing a major chunk of ground operation through a mutual risk-reward structure. Because in most common franchising model’s unit operation is managed by the franchisee you don’t have to engage your resources in hiring and managing employees. This means you can create a lean organisational structure saving you costs and management bandwidth.

Two stories: Two categorically different whys

We need to build up one story that you tell yourself defining “your whys” as a franchisor, another for a potential franchisee defining “their whys”. Remember we all want to believe in a story. If we do this right, the acquisition of franchisees becomes easier.

Step 4: Design a replicable system: Ensure appropriate structural change in the organisation to fit rapid scaling, make it modular

In step 1 we had a list of qualifiers for suitability to the franchising model. Here we discuss organisational structure & operational procedures that facilitate deploying a franchising model.

Standardise brand identity, product, pricing & processes

If we scale a system that is not standardised, we end up with unpredictable business outcomes. Therefore, before we initiate franchising, we must standardise the brand identity, designs, brand communication, product offerings, pricing, and all the key processes from sourcing, inventory management, manufacturing, packaging, distribution etc.

Standardise quality management

Clearly define acceptable variations for all consumer-facing process outcomes along with OKRs. Then deploy an independent quality audit & compliance team empowered to ensure the desired customer experience. If we fail in this aspect, we become vulnerable to reputation risk. It is also prudent to have a central Online Reputation Management (ORM) measure in place.

Document key aspects of running a franchised unit

Have a brand manual defining brand identity, and communication, dos and don’ts for a franchisee. Have an Ops manual to elaborate on the key processes we have mapped for ensuring expected quality.

Onboarding, training, & development

Deploying a well-defined onboarding process with clearly defined KPIs and OKRs will set the right expectations from the get-go. This should include assistance on hiring and periodic training for employees of the franchisee. By being orderly we obviate possibilities of failure of a unit besides delivering a consistent customer experience across units.

Design an organisation clearly defining Centralised and De-centralised functions

To run a successful franchise network, we have to have some centralised functions such as branding, design, marketing, sourcing and distribution, product, customer relationship management, and quality assurance under the direct control of the company. Other functions like store operations, local BTL marketing, unit payroll etc could be decentralised and delegated to the franchisee. However, for every outsourced and decentralised process, we must have clearly defined OKRs and monitor those appropriately.

Have a financial model and strategy blueprint for each unit

A financial model must be defined with parameters for investments, fixed and variable costs, local market size, existing competitions etc. to evaluate the viability of the opportunity in the selected territory. It should define expected cash flows over years, payback period, overall profitability in medium to long term.

A strategy blueprint is overall planning from launch to exit (if desired) for the franchisee. It addresses key questions related to the launch, demand generation, and fulfilment.

Final thought

If we closely observe successful franchising businesses across the world, we will see that careful planning, a well-defined strategic blueprint and effective execution are common themes.

In this article, we have laid down four phases of franchising journey from the franchisor’s perspective. We start with evaluating our business for fitment to the franchising model. Then, we educate ourselves with all relevant franchising models to design an appropriate model for our business realities. Next, we build a story each for the franchisor and a potential franchisee. Finally, we design a replicable system for fast and reliable scaling.

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Influencer Marketing: Building a Partnership for The Future

Kiran Kennedy — Sat, 16 Jan 2021 07:34:45 +0000

You are more inclined to believe something your friend says than a complete stranger. The reason being, you trust the people you know. That is essentially what influencer marketing is – tapping into that element of trust through prominent figures on social media we call influencers.

In today’s rapidly evolving world, digital is becoming the new norm and for a business to survive in this day and age it has to adapt. This means getting on the band-wagon and engaging in one of the most popular and efficient marketing trends of the 21st century – influencer marketing.

What Is Influencer Marketing?

A combination of old-school marketing and celebrity-endorsement tactics with a mix of modern-day social media platforms, influencer marketing is a unique hybrid marketing tactic. It takes the tried and proved method of having someone in the public’s eye to promote, endorse, sell or represent a brand.

Let it not be confused for a full-scale celebrity-endorsement tactic though. An influencer does not necessarily mean that it is a well-known celebrity, rather it is someone who has a significant following on social media. Instead of thinking of it like a fan-base, think of it as a cultivated community of people who enjoy the content these influencers put out. Brands make use of this unique relationship that they have built to promote their brand recognition.

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The influencer is the modern-day celebrity. Some achieve bigger fame than most movie stars. The only difference is that they are more accessible to the public and that is where the magic lies.

Who Exactly Qualifies As An Influencer?

Unlike a celebrity who achieved their fame through mainstream media like television shows, movies, the music industry or sports, influencers primarily operate on social media platforms. Also, unlike the traditional celebrity, these influencers have worked very hard at cultivating their audiences.

Where a celebrity might have a very wide and diverse audience across the globe – most of whom they never actually meet – an influencer is someone who has carved out a very distinct niche for themselves with whom they actively engage and on a regular basis. The size of the niche can vary from a few hundred to millions, it all depends on the niche they operate within. Regardless of the size of the following, they have one nonetheless and this gives them significant influence over the purchasing decisions due to their perceived knowledge on the topic and the relationships they have developed with their followers.

How Influencer Marketing Is Becoming The Next Big Thing

Over the years, social media has moved away from being painted as the ‘ugly duckling’ in the media world as opposed to traditional media. Now, it is gaining more and more popularity thanks to its ability to allow creators and marketing agencies to target very specific demographics within an industry.

The reason influencers are in big demand now is because of the fact that they have that access – a direct line to a very niche and often, very large following that advertisers and marketing agencies would love to get a hold of. It is a gold mine of opportunity. So much so that even the biggest players like PlayStation, Spotify, Sony and many more actively collaborate with influencers. If you watch YouTube videos you would have most likely come across different YouTubers calling out their sponsors with a quick vote of thanks or introducing a cool service or product that those sponsors offer.

The reason why even the biggest of brands opt for it is, the influencer marketing strategy is cost-effective, more so than your traditional media like newspaper ads, gigantic billboard and poster. It can reach millions of people instantly and can be targeted specifically. It is also effective in a broader sense as people find it far more trustworthy when a product endorsement comes from someone they know and have an established sense of community with. This special connection that influencers share with their followers translates into a more authentic perception of the brand.

Crafting Your Ideal Influencer Marketing Strategy

Set a goal

Before you venture out into the digital space looking for an influencer, consider setting up what your ultimate goal is for the marketing. Is it to build brand awareness, enter a new market or facilitate lead generation? Whatever the case each of these endeavours is unique and require their own set of steps to make sure it turns outright. For example, if you want brand awareness you need to focus on widening the reach as much as possible, so more comments, social media presence and lots of regular posts. If it were to enter a specific target market, you would need to find an influencer who has that access and can help you build a space for your entire line with them.

Put the plan together

After establishing your motive, the next move is to put a plan in place. That is to say, what kind of message you want to send, who you want to send it, finding the right influencer and outlining a budget for the whole thing. An influencer marketing campaign is not a hands-off thing, it takes time and effort. Though someone is doing it for you, you need to make sure that everything is running smoothly with constant monitoring. Develop a schedule for posts, shoutouts, product placements and giveaways.

Finding the right person at the right price

Depending on the type of brand you are and the message you want to communicate, you will first have to identify the social platform that best works for your brand image. If it is something like a restaurant you might want to post regularly on Instagram, whereas fashion and beauty brands do really well on YouTube. Based on whichever works best you will have to find an influencer whose image aligns with your brand values.

There are several ways you can find them, either through their social handles or if they have a talent agency representing them, approach based on your needs. As for what you need to pay for the services, the prices vary and can often be negotiated on a case-by-case basis but here are a few rules of thumb on how you can judge a fair price:

- - Look at the competition and see what they are paying their influencers.
  - Look at how much you might pay a professional studio for the same service as advertising or marketing your brand.

Again, this price will vary depending on the service and the size of the audience you want to reach.

A Few Influencer Marketing Formats To Consider

Everyone loves a giveaway

This is the most frequently seen method of influencer marketing on social media platforms like Instagram and YouTube. It is simple and effective. You give the audience something they want and they in-turn get more invested in your brand. This tactic works great driving growth and brand awareness especially paired with innovative and fun content of the influencer in question.

A social media takeover

Basically, you would be giving full creative liberty and access to your social media accounts to the influencer to do with as they please. They will curate the content and engage with the audience on your behalf. It will be them in the driver’s seat, building up your brand image with your very own audience.

Affiliate marketing

It is the mutually-beneficial method that you have most likely come to know. The influencer promotes the product or service and when a sale happens as a result of that the one doing the promoting gets paid a fee as well. It is a win-win method where the business gets a sale and brand awareness and the influencer gets paid.

Brand ambassadors

This is where influencers promote your product out of sheer enthusiasm for the brand. They would have used your product or service at some point and loved it so much that they wanted to share it with their audience. The only difference is that you are sponsoring them and paying them a fee every time they bring it up or you make a profit as a result of their promotions.

Trends To Watch Out For

Social media demand and trends will keep changing, but some of the most constant and popular ones are YouTube videos and Instagram posts. Especially if he is creative and engaging like PewDiePie, he is one such YouTube sensation who has gathered a cult following on the social platform over the years.

A great example of a successful campaign was when PewDiePie teamed up with the makers of the horror movie ‘As Above, So Below (2014)’ where he made several posts for his 27 million-plus subscribers at the time. The film got double the promotions as the original trailer through his channel and he got to make some content to build his brand. This is the essence of a good influencer marketing partnership.

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Social media trends are constantly and rapidly changing by the day and with them the influencers. Staying relevant means being updated on those trends.

Mistakes To Avoid

It is not just about finding someone with the largest audience and asking them to sell your brand to their followers. You need to make sure that their brand identity and audience base aligns with the brand image you want for your business.

Influencer marketing though it seems quite straightforward, it should be noted that not all influencers will be eager to spread just any message for a quick pay-day. They have spent years and years of their time and effort cultivating this close community of followers and they will be protective of the image they have established and the content they expose their audience to.

Finally, do not make the mistake of using just one influencer for your campaign, multiple avenues are needed for maximum reach. And you cannot just have a common core message for them to read off a script. Each influencer has a unique identity and audience and the message needs to be custom made for each of them.

Having said that, social media marketing is the future of advertising and brand marketing. So, no matter the size of your business or the industry, it is time to get on the band-wagon. To learn more about the wonders of social platforms and how to use them to your advantage, check out our article on ‘social media marketing’ !

The post Influencer Marketing: Building a Partnership for The Future appeared first on Dutch Uncles.

Basics of Advertising

Aakash Sharma — Sat, 26 Dec 2020 13:37:27 +0000

Any business is as successful as many customers and clients it can get.

The purpose of any business is to provide products and services that satisfy the needs of their customers. And any business is as successful as many customers and clients it can get, and fulfil their needs. That’s where ‘advertising’ comes in.

In the most basic sense, advertising refers to setting up your business and telling as many people as you can about it. Although increasing business and sales are central to advertising, it is not limited to these purposes. Advertising done in the right way establishes your business as a ‘brand’ with your customers and beyond.

What is advertising?

Advertising is the process of communicating a business to potential audiences and masses, which delivers the company’s sponsored and creative message intending to promote its products, services, or ideas and build an image. Any paid form of communication from a sponsor or source that supports a business or its entities comes under its ambit.

It is carried out through various media like newspapers, magazines, television, radio, and external advertising or live email. And modern technology-based media, like search results SEO, SEM, social media networks, websites, or direct messages. The real-time display of a planned advertising campaign in any media, as mentioned above, is termed as an advertisement, ‘ad’.

It is the exercise of promoting a company and its products or services through paid mediums, marketing is the process of recognizing customer needs and determining how to meet those needs effectively.

Purposes and Benefits

Many purposes are attributed to advertising, of which sales, promotions, and brand loyalty are the most important. It primarily has three aims, which are as following:

To communicate

It aims to raise a brand’s cognizance of its products, services, and ideas. In this form, new products and programs are launched that let people know about the attributes and benefits of new or existing features.

To convince

It seeks to convince customers of a business’s capabilities and the trustworthiness of its products. This form works on boosting the positive perception of a company and improving its image. It encourages customers to take action to try new products and builds a relationship with the brand.

To remind

It aims to remind potential customers about the products and services they might need or the features and benefits that a new product will provide them, which their existing one doesn’t.

Overall, sales and promotion are attributed to the most as the purposes of advertising. The reason for this is the dual purpose that these actions serve. They are used to target potential customers by identifying what the customers are attracted to, where they are, and how the sales can be boosted in that segment and spread information about the business. Promotion and sales activities used for advertising usually comprise events like contests and games, gifts, vouchers, membership programs, etc. The main goal of is to motivate potential customers to buy a business’s products or services.

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Advertising is carried out through various media like newspapers, magazines, television, radio, and external advertising or live email.

It is essential to understand what are the Types of Advertising and the multiple mediums that can be used to advertise a business.

Some of the most prominent methods that are universally used include:

Local

Local advertising refers to advertising about a business using tools that can influence the local customers and audiences. It certainly benefits a business, specifically a small business or a start-up. Some examples are:

Pamphlet drops,
Supermarket boards,
Leasing advertising space in railway stations, bus stops or on buses,
Taking out ads in local and regional newspapers and magazines, posters at local doctor’s clinics, etc.

Internet

Internet or online advertising is one of the most widely used advertising and marketing strategies. Advertising on the internet is exceptionally cost-effective and gives a broad scope of reaching large audiences.

It can be done through:

Your website: A website gives your business the relevant boost towards increasing sales. It makes your business more easily accessible to your customers.

Other websites: Other websites and online portals that host businesses like yours can be used for hyper-linking your business website and directing customers to your website.

Radio and Cinema

Even today, many people listen to the radio for music and news, usually when they are driving to work or doing some other task. So, listening to an ad about your business can have a positive impact on potential customers. Local cinema advertising also provides a captive audience with a prolonged impact that your advertisements can have on the audience.

Outdoor

Outdoor advertising consists of all public spaces that can be utilized for putting up promotional extracts, from static signs like billboards to mobile advertising such as buses. Specific permissions need to be sanctioned from concerned authorities before using outdoor spaces for advertising purposes.

National papers, magazines and TV

The costs for this medium of advertising can be high, but they can help you attract a wider audience. Before implementing it nationwide, you should be guided by several experts who have a deep understanding of readers’ perception of advertisements in print media.

Small Business – Digital Advertising

If you are a small business or a start-up, your business’s best mode is digital advertising. That is because, with traditional marketing, you must have large capital to invest in advertising campaigns and put all the eggs in one basket to rely on some fruitful product. But digital advertising has many edges over almost all the media because it is easy and non-complex to implement.

Following are the attributes that make the best option for small businesses and start-ups.

Cost-Effective

Traditional advertising segments like TV, direct mail, popular magazines, radio stations, local newspapers, and billboards need much large investment and excessive planning.

For example, suppose a billboard is put up for an advertisement. In that case, it can’t be moved until after the contract expires, even if the traffic or people in that particular region stop coming out of a sudden. Traditional advertising has limited scope in diversifying your business ads.

But small business advertising in the digital space allows them to test and check their ads and determine what’s working and what isn’t at much fewer costs than, say, putting up a billboard and taking out an ad in a national daily. Ad costs go down significantly if small businesses advertise on digital platforms in their initial years.

Scalability and Feedback

When the internet is used for small business advertising, the campaign is started with a lower maximum ad spend, in ascending order. Since digital has a higher reach within a limited period, scalability feedback is quick. Therefore, ad spending can be scaled up or down, depending on the campaign’s performance, unlike the traditional methods where it usually takes longer to get feedback on ad performance.

SEO (search engine optimisation) can be used for planning advertising campaigns as it is an integral part of long-term advertising strategies for businesses of all kinds, be it large, small, new, or old.

Uniform Space for Everyone

In traditional advertising methods, mega-corporations can make hefty investments and capture the advertising spaces, leaving no room for small businesses. Big companies harm many small and new companies that have constrained their budget for advertising.

But the digital platform gives everyone a similar ground to compete on. Small businesses can put out their USPs in creative and enticing ways using digital media that attract a broad audience despite big players’ presence.

Regulation

When an ad is created for a company, it is made to impact the target audience. And in the journey of an ad, user feedback is of chief importance to reliably deliver the right message to the audience. Suppose the consumer considers that a particular ad is in bad taste or that some ad claims are untrue. In that case, a regulatory body is necessary with which the discrepancies can be lodged.

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If you are a small business or a start-up, your business's best mode is digital advertising.

The Advertising Standards Council of India (ASCI) is the regulatory body in India that oversees the advertising industry and sets the rules for businesses to advertise. It regulates the content of advertising to serve advertisers and consumers. ASCI ensure that advertisements by companies conform to its Code for Self-Regulation, which requires publicity to be:

Legal,
Decent,
Honest and truthful, and
Not hazardous or harmful while observing fairness in competition.

All media including print, TV, radio, hoardings, SMS, Emailers, Internet/website, product packaging, brochures, promotional material and point of sale material, etc., comes under the purview of ASCI and follows the guidelines set by the body.

Thus, every business needs an advertising strategy in order to expand and succeed whilst boosting confidence among its customers and building a brand out of the business.

Read more about business techniques on our website: 5 Ms Of Management and Unique Selling Proposition: Getting All Eyes On You.

The post Basics of Advertising appeared first on Dutch Uncles.

Expos and What You Need to Know: The Art of Networking

Kiran Kennedy — Thu, 24 Dec 2020 02:08:37 +0000

Some of the best marketing and advertising happens in person, and no we are not talking about door-to-door sales – think in terms of booths. In business studies or even in school you might have come across the term word-of-mouth marketing and how effective it can be. An expo achieves the same result, just on a massive scale. Here is how:

What Is An Expo?

The term expo is the shortened form for ‘exposition’, which is the act of publicly displaying or presenting to view. Even in the context of a business that concept stays the same. Only in this case, it is a large-scale exhibition, that is usually conducted on an international level to show off the brand and to build business connections.

Quite often, you will hear the terms expo, trade show and conference being thrown around interchangeably. Though they may seem similar, they have their subtle differences and serve their own purposes. A trade show is a business exhibition at which businesses belonging to very specific industries will gather to promote their products or services, while simultaneously building their B2B networks.

A convention on the other hand is where like-minded individuals gather in a single space to discuss or share ideas on points of common interest. A good example of this is ‘Comic-Con’. The point of it is to grow knowledge, cultivate interests and generally carry a less formal atmosphere to it. Amidst these two kinds of gatherings, expos stand simply as a healthy combination of both and on a much larger, international scale.

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An expo is a place for professionals and brands to gather under a single roof and discuss, compare and connect.

Why Do It At All?

We live in an ever-growing digital era that seems to be making the past methods of interaction more and more irrelevant or outdated every day. It is a world where we have email, instant messaging, zoom calls, social media and so many other options of reaching out to people from the comfort of a desk. So, what exactly is the need for an expo?

It offers you a chance to build long-lasting and meaningful business relationships. Yes, you can build relationships online as well, but there is something about being able to interact with another human being in a real environment that helps make that connection stronger. When people meet you in person and walk away having had a positive experience, they associate that human moment with the brand. This boosts the confidence and image of the brand.

There is also the added benefit of choosing the exact audience that you want to connect and grow that with. Raising awareness for the brand can be targeted more precisely in person. It is not about how widespread the message is, it is about how in-depth the reach is and how accurately it is done.

Going back to our roots and socialising the way nature intended us to, has its benefits. Going forward as of 2020, that could be somewhat troublesome given the whole COVID-19 pandemic. Save the expos for a safer day, but do not count it out just yet – it is still worth doing, just more cautiously later down the road when the situation clears up.

Executing The Perfect Expo

Identify the objective and the budget

Before setting up your expo booth and planning out the details of the show, you need to determine what the purpose of your business will be at the expo. Is it to increase brand awareness, generate leads and revenue or launch a new product line? Whatever the case may be, it helps to have an aim in mind so that the organising stays line with trying to achieve that. It also helps narrow down the scope of a budget to what you may require. Keep in mind, while cost-saving is appreciated by any business, it is not worth compromising the quality of the expo for a cheaper solution. A rule of thumb – you get what you invest.

Plan well in advance

It is never too early to start planning for the expo. Inform your team early on so that they can book the flights and the rooms at the hotel before the prices go up. Avoid any last-minute rush which can hinder productivity on D-day. It also helps to start early for the sake of advertising. You have to let your audience know where you are going to be. If you do it in advance, they have more time to prepare and turn up to the event.

Social media is your best friend

Speaking of getting the word out to the audience, social media will be the best way to do so. With the various platforms at your disposal, you can give your audience live updates and timely information regarding details of the expo and why they should attend. Make it an interesting message and stay consistently active till the day of the show.

Scope out the competition

Before setting foot inside the venue, check out which other companies will be in attendance, do your research and even go as far as to study the floor layout of the different booths at the convention. This gives you an idea of who is where and how you can navigate that massive crowd more efficiently. Knowing who they are helps you find better ways to quickly approach them and cultivate common ground better.

Get everyone in place

Before the expo starts, get everyone together and make sure everyone is on the same page. Give them a transparent view of the booth hours, the other businesses in attendance, the rotation schedule and potential clients to approach. Get the sales and executive team to work in tandem to pre-schedule meetings with the other businesses during the different days of the expo and coordinate it with a shared document or calendar for maximum efficiency.

Do a demo

Do not hesitate to show off your product, make a show of it and grab people’s attention. That is the point of the expo after all. It is a great icebreaker and gets the ball rolling. If it is a product, give out samples if you can, or even little goodie bags for those who stop by the booth. The more attention the more brand awareness.

If you cannot do a demo, then host a short seminar explaining your business and how it might benefit people. The audience wants to see something interesting so visual aids help.

Get down to networking

Make sure to speak to as many people as you can, but more importantly, make sure to approach everyone on that list that you should have prepared in the pre-planning phase. Do not forget to ask for their business cards and to give yours in return as well. It helps keep track of who talked to who.

Another way to keep track of your progress is to coordinate with the venue organisers and get the figures on all the visitors who stopped by your booth or simply maintain a registry of names as people come and go. Get as much contact information as you can, it will come in handy down the line.

Debrief and follow up

This is by far the most crucial point of any expo. Schedule a debriefing meeting with your team the day after the expo while the information is still fresh and cross-examine. Get everyone’s input on what worked well, what were some of the challenges they faced and how things could be improved going forward. The next step is the follow up:

Now that you have a ton of business cards and that registry of names and contacts, it is time to start reaching out. Upload all the contacts into your customer relationship management system (CRM) and start contacting people. Send personalised messages or emails thanking them for visiting the booth and giving them some additional information about your business.

You can also get their feedback on the booth and how you could improve the experience in the future. This step helps solidify the brand name in their minds and reinforces a positive experience with the business.

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At the end of the day, the perfect expo is one where you successfully build a strong business network.

Some Pitfalls To Watch Out For

Cost

Though you should never compromise on quality, it helps to be aware of what to expect. The costs for an expo would include the booth space, the design and construction of said booth, travel fair and lodgings for your staff and so on.

Competition

Despite being there to network, remember that you are competing for attention and in this sense, you will have competition. This is why research comes in handy, so you know who is coming and what you can do to stand out.

Results

No matter how much time and effort you invest in marketing, there is never a guarantee that you will get the expected amount of engagement after the expo.

Low turnouts

An expo will never guarantee a huge turnout, though it is likely. This is especially true if you are just starting out and do not have a big brand name or publicity to stand behind. The solution to this would be to work on your marketing and building that customer base before attempting an expo.

Do not let these pitfalls discourage you though, the advantages of an expo far outweigh the downsides. A great example of a hugely successful expo is the ‘Consumer Electronics Show’, which takes place in Las Vegas, Nevada. It is the largest and most influential technology exhibition in the world and each year is better than the last. They bring out new and innovative technologies onto the global stage for all to see. An expo like that could propel your business right to the top if you bring something interesting to the table.

That is what it comes down to, how to navigate the world of marketing and networking. Expos are just the tool or event through which networking functions. Are you up to date with the latest and evolving trends in business networking? Check out our article on ‘business networking’ to get the full pitcure.

The post Expos and What You Need to Know: The Art of Networking appeared first on Dutch Uncles.

Business Networking Just Got Tech Smart

Shalmoli Sarkar — Wed, 23 Dec 2020 03:46:27 +0000

Technology Has Made Business Networking Smarter

Michele Jennae, the award-winning author of the book ‘The Connect worker’ made a witty quote that said, ‘Networking is not just connecting people. It is about connecting people with people, people with ideas, and people with opportunities.’ For new ventures to set their foot in the territory of entrepreneurship, good business networking is critical for personal growth, business development, getting more clients and projects, etc. Networking is the exchange of useful information and contacts. It is about building lasting, supportive relationships with people who share a common interest or goal.

Going by the famous proverb ‘Rome was not built in a day’, new businesses need time to set their foot firmly in the entrepreneurial realm and will face a multitude of challenges. Networking here plays a pivotal role in forging relationships with the industry experts, or with start-up owners just like you, who help in guiding you for any problems. Fostering strong relations brings numerous advantages to the table.

Benefits of networking

Increase knowledge

Knowledge is power. Networking is an excellent method to share ideas and increase the knowledge base. When we share an opinion, insight, or feedback with others we tend to expand our knowledge base as well as others. When we meet people belonging to different ethnic and educational backgrounds, we receive different perspectives to approach problems and gain more knowledge from them. Also, through networking, you will come in contact with individuals who have faced similar hurdles that you are facing currently . It will provide an opportunity to learn and avoid certain pitfalls.

Attract investors and opportunities

Through business networking, we can attract investors as well as improve the reputation of the venture. When we gradually start building connections and share what we know, we will eventually attain a reputation as being someone who likes to interact and share knowledge with people, which in turn helps to build credibility. Hence, paving the path for being noticed and opening new avenues for better opportunities like- business partnerships, client leads, proposal for joint ventures and business sales, etc. Networking helps in spreading the word to the potential investors by which we can easily set up presentation meetings for funding that otherwise would have been a herculean task.

Get mentored

People who begin new in entrepreneurship have limited knowledge and are unaware of probable business risks that might occur. In such cases, we need a mentor who can handhold us for what can be the best for that scenario. It is essential to network with the industry experts who will act as a mentor to give clarity on how to grow from thinking of ‘how to make things happen’ to ‘why it will happen’, which is a far better context to work from and will yield better results.

Get confident

Networking helps in improving your interpersonal skills that will elevate your confidence. The more you do it, the better you will become at convincing people, which is a required quality for a business owner. The way we talk, convey our message, and make connections, strongly impacts the business.

Business Networking before

Imagine this, we appear at a business summit and get into a conversation with industry experts at the high tea followed by the exchange of business cards. The bunch of business cards collected at the event will either end up in a drawer or the dustbin. The networking of recent times has gone beyond the collection of business cards and a few handshakes. People tend to forget with whom they interacted what and the memory of the interaction is erased from the mind. Networking needs to be more personalized that should leave an impression at the back of peoples’ minds. A business card is a piece of paper with ink and images on it. Here no such relationship has been formed. Hence, this networking strategy is not effective.

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Use of advanced technologies like AI and VR will shape the novel ways of networking in the post-pandemic period.

Business networking now in Covid-19

The pandemic year of 2020 has thrown hiccups to the businesses in which they operated. The deadly contagion has pushed the workforce indoors and has demanded minimum physical interaction. It begs the question of how to build networks in such unprecedented times. The pandemic is catalyzing the businesses to quickly adapt to digital ways of networking as well as incorporate advanced technologies AI and VR. Hence, business networking has just got tech smart.

For building new networks and connections

Use of social media

We have been using social media for entertainment and leisure purposes. But now, this medium can act as an effective way of connecting with people. For entrepreneurs and small business owners, LinkedIn is the most dominant platform for online networking. Here are some ways that will help small entrepreneurs in networking.

Update and curate your profile

When we send a connection request on LinkedIn or Facebook, the recipient is intrigued enough to check the profile or bio of the sender. After all, the profile of the individual is the first selling point. Make sure that your profile has all the necessary information such as – the previous company you have worked for, the current business you are into, skills that you possess, certifications and courses completed, academic records, etc. For example- a new sustainable fashion boutique owner wants to send a connection request to an investor. The profile should be updated and highlighted with the latest fashion brands she/he has worked with, the concept of the sustainable fashion brand, various blogs written on sustainable fashion, posts, etc. It gives a glimpse of our work as well as you as a person. If we are networking through Instagram, we need to prevent the recipient from going through the entire page since they do not have adequate time. The information should be readily available and should contain three major things at the top of the profile: providing context to the nature of the work, establish authority in your work, and show social proof.

Comment opinions and insights

Merely sending friend or connection requests and liking their posts is not going to help us in networking. We need to present ourselves as an individual who is well aware of the industry to the newly made connections. It can be done by liking the posts of the connects and commenting on something useful and relevant to the post. When we give a piece of valuable information as a comment, people tend to like it which eventually is followed by their responses as well. In this way, it creates a mini discussion within a discussion. Through this, we start becoming noticeable to the people.

Craft the right message

Be it LinkedIn, Facebook, or Instagram for messaging someone on social media, it is necessary to make the message have a personal touch and conciseness. Exchange pleasantries and appreciate their work. For example – Hi (recipient), I am also a (your occupation) who does (service/business). I will be interested to give my two cents/would like to give advice/to be mentored etc. Keep the message for an open invitation for a conversation.

Online communities for business networking

The entrepreneurial journey is not a bed of roses. Right from managing the staff to developing the business and to increase sales, the budding entrepreneurs face plenty of challenges that needs to be tackled. Even if the business is doing well, one needs to be aware of various government policies and rules that might impact your business in the future so that beforehand we can be cautious of it. With the everchanging government regulations and trade policies, the small business owners need support and advice to keep taking the business to the next level by joining online communities. These online communities are a group of like-minded entrepreneurs where they share experiences, advice, and tools to succeed in business. Here are a few advantages to be a part of these online communities:

Great resource

On joining the community, the members will get all the vital information right from business planning to growth strategies to website building in one place. Online communities act as a free resource centre for new business owners with loads of information to help them in any area of the business. One learns best practices, share and receive advice from other small business owners who have faced similar challenges in the past as you. By participating in the discussion forum, one can get their doubts cleared by posting questions. By doing this, the small business owners feel supported and motivated.

Market your business

Online communities are a great marketing platform for a new business or start-up. When the start-up owners join the community, they should invest time to build a strong profile where information is clear and captivating to anyone reading it. The profile must contain the website address, the solutions your company provides, with whom you work, etc. It will help in finding potential clients as well.

Networking and relations

The online communities are the hub for building relationships and networking for free. We can network with other small business owners and talk about your business and what your company does differently. Networking in online communities allows you to generate leads and increase your business and can also help us find joint venture partners.

Some examples of free online communities for entrepreneurs are – Start-up Nation and The Small Business Bonfire.

For nurturing the networks

Networking within the organization

It is crucial to network among colleagues as well. Networking internally with the colleagues and creating a relation of camaraderie benefits the company as there is an exchange of great ideas, collecting more industry information, and learning more about functional roles, etc. The emergence of the pandemic has led companies to work with employees remotely, which has reduced communication and has left them with a feeling of isolation. Hence, business owners must catch up with their remote employees for a virtual coffee or video call session.

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Online communities are a group of like-minded entrepreneurs where they share experiences, advice, and tools to succeed in business.

Using technology for networking

Artificial intelligence

In usual video conference meetings, we hardly come to know if the person speaking or present is an angel investor or a potential client. Sitting on the other side of the screen, we fail to establish connections. Meetings like these can prove to be unproductive. Artificial intelligence (AI) in business networking can make meetings efficient, fruitful, and pleasant. Below are a few advantages that AI helps in business networking.

Manage contacts

Maintaining contacts through business cards can be a daunting task since business cards can get lost. Michael Guta from SmallBiz trends says that artificial intelligence relationship tools use machine learning algorithms and Natural language Processing (NLP) that helps to build a database of connections that classifies the external contacts as advisors, partners, investors, or mentors. Based on the number of conversations made through emails and the number of meetings held with the contacts, AI tools can automatically display a list of prospects with whom we are having the most conversations. It helps us in making informed decisions to identify opportunities for referrals and introductions.

How AI helps in virtual conferences?

During the meeting, AI can give detailed information about the participant’s work history, blog posts, current company, and links to social media accounts, directly in the meeting. So that one does not have to search to learn about the background of participants in the meeting. Through facial recognition, it allows us to put a face to the name for easy identification when there are multiple participants in the virtual conference.

Sometimes in meetings, we mistakenly skip writing vital points. In AI-enabled virtual meeting platforms, transcripts of the meetings are available so that we know what parts we have missed.

Virtual Reality

The present pandemic situation demands minimal physical interactions. With heightened concerns of maintaining social distance organizing business summits and trade exhibitions have taken a backseat for now. Such events used to be beneficial for business networking to attract business leads and investors since a business could showcase the working of its product. In a remote setup, with the use of VR technology a company can demonstrate a product functioning in the environment and helps viewers imagine what it might be like to own the item. The photorealistic visual element of VR technology persuades the brain to believe that what is being real and that leads to increase conversion and sales. Recently, IIT Bombay using VR technology has hosted their 58th convocation ceremony. They created a personalized avatar of each student receiving the degree certificate from the institute director.

How will the Tech Induced Business Networking be beneficial?

Here are some benefits to the technology or digital infused business networking:

Develop personalized relationships

Networking through video and web conferencing results in agile decision making and meaningful conversations. Instead of depending on long email chains, video or web conferencing lets individuals connect in real-time as if they are present in the same room. It allows you to attach a name with a face that brings up the contributor’s personality.

Structured meetings

Time is precious. Physical meets might lead to exceeding the time limit discussing irrelevant things. Whereas on video or web conferencing platforms, people irrespective of belonging to different time zones and geography can connect with a clear agenda in mind and the meeting can get over on time.

Focus on content

In a virtual set up the focus is more on the meeting agenda or business content at hand, as the entire focus is on the discussion and what is being shown. In a virtual setting, the distractions arising from people gossiping or chit-chatting or the surroundings, etc. are eliminated.

Showcase more information

In face-to-face meetings, we make PowerPoint presentations that are generally predefined content at hand, whereas in a virtual meeting anyone can share any relevant content instantly. This easy sharing of digital content will not be possible in physical meetups.

Clear doubts

Small business owners being the members of the online entrepreneurial community now know whom to reach out to when countered with a problem. If there are any queries, they can immediately receive answers and suggestions for the same.

Saves time and money

It saves a great deal of time and money that goes on travelling and booking rooms and spaces in hotel and exhibition halls. Now anybody can join a meeting irrespective of geographical boundaries.

In such unprecedented times of the pandemic, companies should now embrace newer technologies or mediums to network and put health on a higher pedestal.

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Inventory Management: Better Safe Than Sorry

Kiran Kennedy — Mon, 21 Dec 2020 06:54:31 +0000

Don’t you just hate it when you go to a restaurant in anticipation of your favourite dish but they say, “Sorry, we ran out of stock.” A big disappointment for sure, but you might order the next best thing or go to another restaurant instead. This is exactly what happens if you do not have full control over your inventory or stock of finished products. You will lose customers to your competition and your profits will dip and you fail to supply what your customers want.

What Is Inventory Management?

A crucial part of the supply chain, inventory management is more complex than stocking your warehouse or feeding your procurement needs. Inventory refers to all physical items which flow in and out of a company. This includes the raw materials for production as well as the finished products for sales. Inventory management uses various methods and management techniques to handle the process of ordering, storing and using a company’s inventory.

Now, one may think that inventory management only concerns the raw materials that come into the flow of production, but it happens at all stages of a company’s line of production and supply chain. This includes raw materials, semi-finished goods, and even the finished products that are waiting somewhere in a company warehouse, waiting to be shipped off to the market.

Inventory management can be framed as having the right amount of goods or items necessary for a business to run successfully at any given time. On the one hand, there should be no shortages of inventory, but there the company should also avoid having so much in storage that it all goes to waste. Inventory management helps keep the balance.

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Without an inventory, a business will not have anything to offer its customers. Consider it the life blood of a business rather than just items.

How Does It Work And Why Is It Important?

Inventory management’s role in all this is to make sure that the company never runs out of these things. To make sure that does not happen, you need to track the market’s level of demand for your particular product or service. This gives you an idea of how often customers purchase your product/services and shows you how the pace at which inventory is should be ordered.

All this tracking and managing can be taken care of in two broad ways – manually or through software. With software the tracking is automated with minimal involvement of people. The manual method on the other hand, is almost entirely done by people.

Whatever path you choose for your company, it is apparent that inventory is key for any business to operate. Without it, even the supply chain, becomes just an empty system without anything to transfer, move or co-ordinate. Maintaining the right balance is crucial for any business, big or small. This is especially true for the likes of inventory-heavy industries such as the food business.

For instance, restaurants, need to make sure that they maintain a perfect balance at all times, while still maintaining quality (good food needs good ingredients). They have to have enough food that they do not run out on a busy night, but not so much that if business suddenly stops, (say, a sudden lockdown due to the pandemic) they are left sitting there with tons of food rotting in a storage unit.

Business foresight and ability to read the pulse on the market become vital. You do not want to suddenly find that there is a shortage – have the right amount of inventory, in the right place, at the right time. This is why inventory management is important, it lets you know when there is no more food in the kitchen.

Which Inventory Method Works For You (Types Of Inventory)

ABC analysis

A technique that helps a company classify and manage its inventory based on the demand of the stock and the cost of holding or transporting it. The analysis tells us how fast the goods should be moved and how fast it needs to be reordered based on the demand. There are three different categories for this technique:

A level goods: The most popular and in-demand goods which will fly off the shelves and need to be restocked fast. These are not too expensive to store as these would be sold fast.

B level goods: Not so much in demand as the A-level goods but still enjoy a decent amount of demand. These are moderately expensive to store as they have to be stored for a longer period.

C level goods: Next come the laggards. C-level goods have the least demand, take up the maximum of storage space and, therefore, cost the most.

Just-in-time inventory

An extreme version of the EOQ system, it orders inventory when it is needed at the exact amount. It is a system that does not store much in reserve. Items are ordered only at the last minute.

Safety stock inventory (buffer)

Essentially keeping a backup stock for emergencies like a dip in the market, loss of revenue, loss of customers and so on. It will not work for perishable items like food though.

First in, first out (FIFO)

The oldest inventory in storage is sent out first for sales.

Last in, first out (LIFO)

The newest inventory is sent out first. Both help calculate the profitability of the inventory. You just have to pick one based on the demand in the market.

It is, indeed, a risky method but has a high-reward capacity if done right. The key here is to hire an inventory manager who understands the market and has a proven track record to get the job done.

A quick example of these fundamental techniques applied successfully is Walmart, a brand that most of us are familiar with. The retail giant has over $32 billion in inventory across 70 different countries. To move this massive amount, the company relies on two things. It uses automation software to move the inventory up and down the supply chain, and it does not store the stock for a long period. To put it simply, everything is sold and shipped quickly to make the flow faster and streamlined for maximum efficiency. The tracking software also helps reduce human error and keeps a tab on the numbers.

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The final aim of any inventory management system should be to get the products out to the customers as fast and as efficiently as possibile.

The Way Forward

Economic Order Quantity (EOQ)

This is the core of inventory management – order the minimum amount that you think your business needs to keep up with even the highest customer demands on any given day. The aim of this is to lower the cost of buying, storing and moving inventory as much as possible while staying competitive.

Minimum order quantity (MOQ)

On the other end of the spectrum, we have the minimum order technique. It is when a supplier is only willing to sell you a fixed minimum amount. This is the lowest quantity they can sell you while still making a profit if they sell lower than this, the supplier loses money. The purpose of this is so that suppliers can move inventory fast and skip over the businesses that want to bargain the price, which ultimately slows down the process.

The Materials Requirement Planning (MRP)

An inventory management method that is entirely dependent on the planning and forecasting abilities of inventory managers. They should be able to predict when a spike in demand is likely and place orders accordingly. If they overshoot or underestimate the prediction, it may result in severe losses for the company.

All of this can be achieved much more easily with the help of automation software. It is well worth the time and capital. It takes care of everything from tracking, budgeting, helps with planning for more inventory and also gives you an idea of how your sales are going to perform based on demand rates.

Trial runs help

Start with choosing the technique that best works for the specific type of industry that you want to be in and then, takes it for a spin. Conduct a practice run and ship some inventory around the system to make sure that everything works and flows nicely. Next, make use of reports, lots of reports. They help you keep a track of what went where and gives you a clear picture of how well your system performed in the past.

This is also why a trial run is needed moving forward as you do not want to do this when business is in full swing. You want to cover all your bases, that is to say, hire some extra staff. They do not have to be full-time; you can hire them part-time and keep them in reserve if demand ever goes through the roof and you suddenly need those extra hands. Speaking of covering all your bases, check out all your inventory – see how much you have to sell, how much you need to store, how much can be stored and for how long. That will give you a budget that you need to work within for the inventory system to work.

The post Inventory Management: Better Safe Than Sorry appeared first on Dutch Uncles.

Set Up Distribution Channels to Grow Your Revenue

DU Desk — Sat, 19 Dec 2020 04:20:20 +0000

If you purchased an item from Amazon and had the package home-delivered, you could be somewhat familiar with the concept of distribution channels. You will rarely find business owners glamorising how they build distribution channels (how they raise funding or tell stories on social media usually tops that list of achievement). But you need several distribution channels to ensure multiple revenue streams and grow your business.

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Getting the product to the end-user is as important as the product itself. This is why you need a good distribution channel in place.

So, What Is Distribution?

Now that you have procured raw materials and developed the goods/services, it is time to go to market and sell them – either directly via the Web, your sales force or retail outlets or indirectly through wholesalers, distributors and the likes. Think of it as business networks through which your products or services will reach all end users. In business jargon, these networks are called distribution channels.

A typical business will use both direct and indirect channels for quicker market access and rise in sales. Take, for instance, any famous cosmetics brand. One can buy its products online, at the company’s retail centres or at the local shop/supermarket. Understandably, the latter gets the stock through indirect distribution, mostly through wholesalers, distributors, dealers and other middle agencies.

Now, let us take a look at the distributors. They are the middle agencies which buy products from manufacturers and sell them to the wholesalers that buy and sell the products to retail stores in bulk. Sometimes the distributor will bypass the whole seller and opt for multiple dealers instead, who specialise in a niche market and deal with very specific products. For a distributor to do their job effectively they need to build and maintain relationships with the manufacturers and stay up-to-date on all the goings-on in the market.

Distributors also manage orders, oversee returns and even sell products on behalf of the brand at times. A good distributor has a thorough understanding of the market and uses that to prompt bigger sales.

Types Of Distribution

Direct

The product is directly delivered to customers or other businesses with no middle agencies involved. A good example of a direct channel is Sony it takes orders from customers directly through their website and has their company deliver it to the customer without an intermediary. These channels can be very effective in the long run. The company will have to spend more on storage and transport for the goods. The direct method is used mostly by businesses dealing in perishable goods, like farmers’ markets.

Indirect

This involves several middle agencies between the supplier and the final point of sales. This includes distributors, wholesalers, dealers, retailers, franchises and VARs (value-added resellers). Since there are so many channels to pass through and all of them have to be paid, the process sometimes ends up driving up the end-price for the customer by inflating the market price. The upside is that it won’t cost nearly as much as direct distribution channels, which means cost saved for the company.

Intensive

The goal here is to gain as much visibility in the market as possible, as fast as possible. This includes everyday consumer products like soaps, toothpaste, bread etc. The things that have a mass-sales capacity and move fast. The more places and the more often your customers see your product, the more likely they are to buy it. Brand awareness is the name of the game. There is a risk to playing it hard and fast: If you end up sending your product to a location where the competition enjoys better customer loyalty, you will run into a loss. Using this kind of distribution channel needs a watchful eye over the current market trends.

Selective

This is when the manufacturer sends the products to a select number of stores in specific locations, giving their brand a more premium feel. The manufacturer can control the price for a certain area and give those customers a personalised shopping experience. This method allows the brand a certain amount of edge over the competition since they can target specific areas where the competition may not have the best customer following. This method allows you the opportunity to target these weak spots in the market and use them to your advantage.

The Whirlpool company is a good example of this as they sell their appliances through dealer networks in specific areas where they can expect a better sales rate. These often include middle-to-high-income residential areas or office campuses where demand for air conditioners and other white goods will be high.

Exclusive

Manufacturers sell these items to a select number of middle-agencies. You get a better profit margin from luxury items. For example, Rolex, iPhones and supercars. With that being the case, there is no real need for intensive mass productions and sales like that of everyday items because the higher price tag makes up for it.

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There is no one single way to distribute your products or services, but it is important to know where to start. For that you need a solid strategy to build your distribution network.

How To Build Distribution Network

Find the market

Before you start forming any sort of distribution plan, you need to consider the market. Look at what your product is, and which demographic, in which area would find the most use for your product. Once you identify the need in the market and you know for sure that your product can meet those demands, only then do you move ahead.

Know your competition

Find out everything you can about the rival brands – look at what distribution strategy they use and how successful they are with those methods. This gives you a rough idea of how you could expect your product to perform once it hits the market. Let the enemy do the work for you.

Choose the best channel

Now comes the time to start laying the groundwork. You need to see which type of distribution channel would best suit your product and help it perform well in the market. If it is a top-of-the-line diamond-studded watch, you should choose an exclusive distribution channel that includes a select number of stores and customers. If it is ice cream soda, you may choose the intensive method to outshine your competition.

Whatever you choose, you not only need to make sure that it complements the type of product you are selling, but you also need to see if it falls within the budget. If not, you need to account for that and make the necessary adjustments, because what matters most is making sure that the product flies off the shelves at the end of the day.

Set up the chain

Now it is time to approach channel partners, but before you do, ask yourself: What is the logistics? You need to have a clear idea of how orders and return will be handled, if there will be storage needs, how the inventory will be accounted for and so on. Once you have the answer to these questions, you are ready to go.

Pricing and Revenue

You must support your channel partners and pay them for their services. Treat them as a business partner and as a customer. After all, they also have a business to run, so promote their businesses as well. Provide them with training and advertisement where you can to increase their internal efficiency.

No matter what you choose as your ideal strategy, make sure to keep tabs on the chain of distribution. Do a regular performance analysis. See if the customers are happy and if everything is performing as well as it should be.

Check out our article on ‘business automation’ to see how you can step up your business’s operations.

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