DEMAND driven ECONOMICS

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Amarendra Dhiraj Group moderator
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"what-not-to-do" advice- 2007
My three recommendations:

1/ Marketing strategy?

2007 gives you Big Goals, Big Market- To start with, you have to pick the right target market. You may have a product that can solve many problems for a broad set of customers, but you are not going to be able to reach everyone at the same time. Some will be more ready to buy from you than others. So before you go very far, research your market and pick your niche.

Take Vikram Narayan, for example. He started his Bangalore, India based e-learning venture with the ambition of building "Earth's biggest training portal." His company received early support from the Indus Entrepreneurs Bangalore Acceleration Program and was lauded by "Red Herring" as one of eight Indian startups to watch in 2006. His goal was to serve the needs of the corporate training market by selling training materials on his Web site. What made his idea catchy was that he would be getting subject matter experts to create, price, and sell their own online training courses via his Web site.

2/ Overspending on overhead-

We find that most new companies start out with insufficient capital anyway because they haven't done thorough, realistic planning. But when companies are starting up, it's easy to devote capital to fixtures and fittings, machinery and stock. What many new business owners forget about is the cash needed to fund day-to-day requirements, like cash for paying expenses before your customers pay you.

3/ Price-Setting

Price is the most important factor in determining profit. Yet countless businesses fail to get their pricing strategy right.A 1% gain in price will give you the largest percentage increase possible in your operating profit. Reducing variable or fixed costs by 1% doesn't do as much, but an increase in price goes right to the bottom line.

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- 13 Mar 2007, 09:32 am
Amarendra Dhiraj wrote: > My three recommendations: > > 1/ Marketing strategy? > > 2007 gives you Big Goals, Big Market- To start with, you have to > pick the right target market. You may have a product that can solve > many problems for a broad set of customers, but you are not going to > be able to reach everyone at the same time. Some will be more ready > to buy from you than others. So before you go very far, research your > market and pick your niche. > > Take Vikram Narayan, for example. He started his Bangalore, India > based e-learning venture with the ambition of building "Earth's > biggest training portal." His company received early support from the > Indus Entrepreneurs Bangalore Acceleration Program and was lauded by > "Red Herring" as one of eight Indian startups to watch in 2006. His > goal was to serve the needs of the corporate training market by > selling training materials on his Web site. What made his idea catchy > was that he would be getting subject matter experts to create, price, > and sell their own online training courses via his Web site. > > 2/ Overspending on overhead- > > We find that most new companies start out with insufficient capital > anyway because they haven't done thorough, realistic planning. But > when companies are starting up, it's easy to devote capital to > fixtures and fittings, machinery and stock. What many new business > owners forget about is the cash needed to fund day-to-day > requirements, like cash for paying expenses before your customers pay > you. > > 3/ Price-Setting > > Price is the most important factor in determining profit. Yet > countless businesses fail to get their pricing strategy right.A 1% > gain in price will give you the largest percentage increase possible > in your operating profit. Reducing variable or fixed costs by 1% > doesn't do as much, but an increase in price goes right to the bottom > line. > > --- YOU ARE INVITED TO POST YOUR VIEWS AND YOUR RECOMMENDATIONS ---

DEMAND driven ECONOMICS

"what-not-to-do" advice- 2007