Introducing New Products

Why do so many new products fail? Usually for many reasons. Companies often are so enamored of their new product ideas that they fail to do their research, or they ignore what the research tells them. Sometimes the pricing or the distribution channels are wrong. Sometimes the advertising doesn't communicate. Successful product launches result from an integrated process that relies heavily on research and solving up-front issues. Let's review some of these critical issues that affect product introduction.

Market Research - Market is key. Without necessary information, you're simply flying blind in a storm, headed for a crash landing without a para-shoot.

Timing - Can dictate your products success, without asking the right questions to research the correct answers, you are looking at a downward spiral in the production and launch of your product.

Capacity - If the product or service is successful, do you have the personnel and manufacturing capacity to cope with the success?

Training - Your sales organization, inside employees, and distribution channels will need to be trained about the product.

Promotion - Finally, you need the promotional program to support, introduction, forms of advertising, trade shows, promotional literature, samples, incentives, Web site, seminars, and public relations.

For time sake, we only indicated the bare necessities an entrepreneur will need to be successful and to expand their business further. Please visit WWW.LRCONSULTINGENT.COM and contact one of our consultants TODAY!!

Basics of Business Credit....The 4C's......

What are the 4 C’s that companies look for? A business’s creditworthiness is ultimately determined by what are known as the “4 C’s of Credit” -- character, capacity, capital and conditions -- most of which can be found explicitly or implicitly in a company’s credit report.

Character includes factors such as: size, location, number of years in business, business structure, number of employees, history of principals, appetite for sharing information about itself, media coverage, liens, judgments or pending law suits, stock performance, and comments from references.

Capacity assesses the ability of the business to pay its bills, i.e., its cash flow. It also includes the structure of the company’s debt—whether secured or unsecured—and the existence of an unused lines of credit. Any defaults must also be identified.

Capital assesses whether a company has the financial resources (obtained from financial records) to repay their creditors. In general, this portion of the credit report is the one most closely reviewed by the credit analyst. Heavy weighting is given to such balance sheet items as working capital, net worth and cash flow.

Conditions consider the external factors surrounding the business under consideration - influences such as market fluctuations, industry growth rate, political/ legislative factors, and currency rates.

A credit manager or loan officer will answer these questions by locating and reviewing:

1. requests for credit information
2. customer supplied information
3. bank information
4. trade information

These factors are also taken into consideration by other service providers, such as insurance companies to set premiums. More than ever, companies are using automated decisioning, which means they input scores and ratings that summarize the 4 C's into a financial model to determine the risk of doing business with you.

The Risk and Rewards of Business Ownership.....

When were really excited about doing something, we sometimes forget or ignore the downside of it. However; it would be very foolish to ignore the risks of going into business!

Failure. The emotional stress of failure can be very hard to handle.

Loss of money. You may have your own money at risk.

Long hours. You may have to work 60 or more hours per week.

Family problems. Your family relationships are likely to suffer unless you can find a way to balance your personal life and your business life.

Bad timing. Sometimes, its just not the right time to start a business. In that situation, its better to put it off for a while, than to let unresolved problems in your life threaten your business success.


Now lets look at some rewards of starting your own business!

Independence. The ability to be your own boss is a very powerful incentive.

Money. The financial rewards can go far beyond what one can expect from a normal job.

Pride. The experience of making idea work transforms many people, and gives them a real sense of self-esteem.

Fun. Running your own business presents opportunities for fun, excitement, and creativity that many businesses can't offer their employees.

Four Stages of Business..........

Starting A Business

Starting a business is one of the most exciting journeys an individual can take. Over ten million people each year consider starting a business. As a result, more than three million new small businesses are started annually. Entrepreneurship offers numerous rewards, but it also presents many challenges. Understanding these challenges and careful business planning can help a new business succeed.


Managing

The success of any business is closely related to how well the business is managed. Good management is the root source of business growth. Managing your business should not be considered an academic exercise. Rather, it is the real-world application of strong leadership, a positive attitude, solid business knowledge, and good people skills. It is the ability to influence and make decisions; and it is the ability to inspire and lead others. Acquiring good management skills is essential for the success like putting money in the bank.


Marketing

Few things are more exciting than expanding a business. Whether you want your business to grow in size or remain small but successful, growth is critical. Business growth assumes you have made it through the early start-up phases and are now ready to expand. It is a period where you can spread your wings and look for new business horizons. However, like earlier stages of development, growing a business requires solid preparation, steadfast commitment and a willingness to take calculated risks. There are many resources that can assist you in expanding your business.


Exit Strategy

Exiting a business is a reality that should be considered and planned for during the early stages of a business. Such preparations will require development of contingency plans for events that may never happen. Planning for getting out of a business is just as important as the planning required for starting a business. A solid, well thought out exit strategy can save time, money, and a great deal of frustration in the future.