Building a great and effective business needs a strategic framework and an excellent execution system on a consistent and continuous basis.
Great leaders are great planners who can analyse a given situation and build an ecosystem to reach the end potential.
It starts right from having a clear strategic plan, the immediate steps to consider, building an efficient workforce, documentation which meets the required standards, legal compliance, cost optimisation, effective capex, forecasting, having a worldclass team of experts from every field along with excellence execution and consistency.
Strategic Financial Plan Of Action:
- Finance is the core element of every business organisation. When we mention ‘Finance’, usually it means money, but it is merely not the money, it is a vast concept which is concerned with money and its flow. The word ‘Finance’ is a French word which means ‘Management of Money’.
- Finance is such a powerful medium that, it performs an important role to operate, co-ordinate and control the various economic activities of the business enterprise.
- Finance is also limited resource like other resources and a business entity needs to manage its finances resourcefully, effectively and efficiently.
- Finance is essential for expansion, diversification, modernization, as well as for the establishment of new projects.
- The financial policy of any organization mainly determines not only its existence and survival but also the performance and success of that organization. Finance is required for investment purposes and also to meet substantial capital expenditure projects.
- Financial Management is a managerial process that is concerned with the planning, organizing, directing and controlling of financial resources.
Establishing A Great Idea:
- The core of building any succesful, sustainable and viable business model, there needs to be a great idea and mental clarity to get to the position. There needs to be a great structural framework in place followed by world class excellence execution. The business must try to analyse the value it brings to its stakeholders and what should be the ideal plan of action to make it work in the highest good of all.
- There needs a develpment of a clear strategy, and a defensive competitive edge in the market.
Building A Great Product:
- The ultimate determining force should be on building something which solves a problem in an effective and efficient manner. Companies should strive towards creating value and satisfying its customers and stakeholders at large.
- Communication with the users turns out to be the game changer, ask for their requirements, expectations, the value it creates, are they really satisfied with the given products or they have certain expectations in regards to its utility and improvement. Companies should always be open to customer feedbacks as it helps them to gain clarity of the performance of their product and the impact it has created in the minds of the users.
Building A Great Team:
- As it is said, the entrepreneur is someone who is in a postion to handle everything, he/she knows about the entire framework or the mechanism in which the businesses function at an organisational level.
- In the daily business affairs, it is practically not possible for the founder/entrepreneure to executive and manage each and every action. Here comes into play the need to build an efficient, effective, sound, sharp and professional workforce who is the best in class pertaining to the specific domain and executes the assigned work with atmost efficiency.
- A strong united team will bring your vision into existence. Empower them through effective communication, appreciation and work towards the achievement of the comapny’s future vision & mission and long term goals.
- The workforce also know as human capital is considered to be the asset of the company.
- Effective team building has a department of its own which is known as the Human Resource Management (HRM).
What Is Human Resource Management?
- Human Resource Management which is also known as HRM is a strategic, systematic and the most important function within an organisation which primarily focuses on the effective, efficient and strategic management of people to attain various business goals.
- The primary focus of Human Resource Management is to manage its workforce which includes recruiting, training, retaining the efficient and effective employees inorder to move towards the path of success.
- The term human resources was first used in the early 1900s, to refer to the people who are employed in the organisation, in aggregate.
- Human Resource Management (HRM) is the governance of an organization’s employees. HRM is sometimes referred to simply as Human Resources (HR).
- Human resource management is the systematic and strategic procedure, which needs to be performed effectively and efficiently, it comprises of a series of events like recruiting, selecting, inducting employees, providing orientation, imparting training and development, appraising the performance of employees, deciding compensation and providing benefits, motivating the employees, maintaining cordial relations with the employees as well as the trade unions, ensuring employees health and safety, running various welfare measures in compliance with labour laws of the land.
- Human resource management is an employee management which primarily puts emphasis on those employees as assets of the business. In simple terms, employees are sometimes referred to as the human capital.
Features of Human Resource Management:
- Human resource management is considered to be an art as well as a science.
- Human resource management is a service function.
- HRM is a continuous procedure which contains a series of events or activities in order to accomplish organisational goals.
- HRM must be regulation friendly.
- HRM is a service oriented function.
- HRM is the management of its human resources, it is an activity which is performed in order to achieve predefined organisational goals. Hence, it is focused on the results which are produced after employing various managerial principles.
- HRM is an interdisciplinary and fast changing.
- Human resource management is a people centric management.
- Human resource management turns out to be the most important and integral function for the efficient and effective running of an organisation.
- HRM helps create Goodwill as with the effective utilisation of a human resources the companies can aim to reach great heights and intern, build its Goodwill in the long run.
- HRM develops team spirit as the employees are well taken care of, valued and appreciated.
Best In Class Launching:
- Launching a product decides its future, it is the first and foremost step which helps in attracting its target customers. Effective product launch is a determining factor in terms of creating a branding and image/ perception of the product.
- Puting it out there is the only way to know if you have something great.
Growth Oriented:
Businesses should primarily focus on sustaining and improving the fundamental growth. Having a strong fundamental repuation is the foundation towards building a great and successful business. Growth should be the top priority as it is the core element which helps businesses grow exponentially.
Tackling Failures:
- Failure is a part and parcel of success. Failure is a stage/ phase which tells you that you are really doing something great which will be achieved, maynot be immediately but definitely, if the correct efforts are put in towards the right direction.
- Failure is not the end. It is something which needs to be treated as a lesson.
Capital Raising:
- Companies prefer raising of the capital either through its investors or the pulic at large at its later stages. It is usually raised at the maturity stage of the company.
- The company should try to raise its capital in such a way which is cost efficient, well complied and is used optimally as capital raising does not simply mean that you will have a certain sum of money in your custody but is to be utilised in such a way that the money generates great returns which needs to be paid back to the investors.
- Therefore, the company has to manage the raised capital in the most efficient and productive manner which will give a promising return on capital (ROI).
Effective Capex:
- Capital Expenditure refers to the expenditure, the benefit of which extends to more than one financial year/ accounting period. Companies, initially, have to undertake capital expenditure in order to set up the business and improve its efficiency.
- Capex is a concept which directly affects the profitability of the business, it is to be done in such a ratio that it helps the company in its growth & expansion and at the same time does not take a toll on the profits and cashflow statements.
Branding:
Branding refers to the creation of a certain image of a product/service in the minds of the target customers. Effective branding is the game changer which helps a company to postion itself and gain a competitive edge in the market. Branding results in creation of goodwill in the long run and further more plays a significant role in maximizing the productivity, profitability and business positioning.
Advertising:
- Advertising is a promotional activity and is an important element in the marketing mix.
- Promotion refers to the activities undertaken in order to communicate and promote the product to the target audience. It includes advertising, public relations, sales promotions, direct marketing, and other communication efforts aimed at creating awareness and generating demand for the product.
- Promotion is an impactful marketing strategy which is primarily aimed to create sales and a brand recognition in the minds of its target customers.
- Creating a strong and impactful product image is an essential factor to be taken into consideration.
- Promotional activities which help to publicise the product to its target market helps to convey the essential product features to its potential buyers while stating its utility and uniqueness.
- The promotion mix consists of tools like advertising, direct marketing, sales promotion, personal selling, sponsorships, loyalty programs, using promotional strategies to aware and introduce the product to its customers. It is an awareness and publicity activity to attract potential customers.