THINGS TO CONSIDER IN CREATING A PROTOTYPE Prototypes are working models of entrepreneurial ideas for new products. A prototype is defined as āan original model on which something is patterned.ā If you do not have the time, money, skills, or commitment to build a prototype of your idea, the odds […]
Marketing
PROPRIETARY INFORMATION: HOW TO PROTECT TRADE SECRETS Proprietary information, also known as trade secret, is information that a company wishes to keep confidential or protect from those outside the company. The Uniform Trade Secrets Act defines trade secrets as āinformation that derives independent economic value from not being generally known, […]
IMPORTANCE OF A VERTICAL MARKETING SYSTEM A vertical marketing system (VMS) is one in which the main members of a distribution channel – producer, wholesaler, and retailer – work together as a unified group in order to meet consumer needs. In conventional marketing systems, producers, wholesalers, and retailers are separate […]
ORGANIZING TO OPTIMIZE MANAGERSā SPAN OF CONTROL Span of control, also known as span of management, is a human resource management term that refers to the number of subordinates a supervisor can effectively manage. It is a particularly important concept for business owners to understand. Span of control is widely […]
THE IMPORTANCE OF A SALES FORCE A companyās sales force consists of its staff of salespeople. The role of the sales force depends to a large extent on whether a company is selling directly to consumers or to other businesses. In consumer sales, the sales force is typically concerned simply […]
Ā USING ANNUAL REPORT AS A MARKETING TOOL Annual reports are formal financial statements that are published yearly and sent to company shareholders and various other interested parties. The reports assess the yearās operations and discuss the companiesā view of the upcoming year and the companiesā place and prospects in their […]
REASONS FOR BUSINESS FAILURE Business failure is defined as the closing of a business that results in financial loss for at least one of the businessās creditors. An associated term, business dissolution, refers to the formal termination or closure of a business as well, but with dissolution, financial loss (for […]
SPECIFIC EXPENSE ACCOUNT POLICIES FOR A SMALL BUSINESS Expense accounts, also called expense allowances, are plans under which companies reimburse employees for business-related expenses. These expenses include travel, entertainment, gifts, and other expenses related to the employerās business activity. Of particular interest to businesses and their employees is the tax […]
HOW GROUPTHINK WORKS Groupthink is definedĀ as āa mode of thinking people engage inĀ when they are deeply involved in a cohesive in-group, when the membersā striving for unanimity override their motivation to realistically appraise alternative courses of action. Groupthink refers to the deterioration of mental efficiency, reality testing, and […]
PRICING GOODS AND SERVICES FOR FOREIGN MARKETS Pricing products to be competitive in international markets can be a challenge. Pricing that works in one market may be totally uncompetitive in another. A well-considered pricing strategy, then, is regarded as an essential component of any businessās exporting plan. Any business, large […]