Tag: Return on investment

Categories
Business motivation

Top 4 Business Tips to Improve your Return On Investment

Top 4 Business Tips to Improve your Return On Investment
Top 4 Business Tips to Improve your Return On Investment

Summary: Finding ways to increase your business’ profits can be challenging. But with a little innovation and creativity, you may be able to move the needle substantially.

Every business analyzes its future by identifying past and potential financial returns. ROI or return on investment is a ratio of your company`s net profit compared to your financial investment in the business.

Many people often confuse this term with the profit margin. However, ROI is the financial return that you receive from spending money and not the profit received from the sale of goods and services. It helps the leaders to make informed decisions by kicking the guesswork out of the window. To know how you can increase the ROI of your business, you can attend Leadership Funnel Program 2.0 by Dr. Vivek Bindra.

Why is it Important?

The ability to calculate return on investment is crucial for every business, regardless of the company`s size or industry. A businessman is considered smart if he manages his expenses and monitors ROI regularly. Only businesses that can analyze ROI, survive in the long run.

So how can you improve your business`s ROI? How can you ensure that your business`s ROI is always increasing, no matter what?

Want to know which type of business model will give you high ROI? Watch it here.

Here are three ways that will help any business to receive higher ROI in every season:

1. Invest in High-performing Marketing Platforms

As part of their marketing strategies many companies often buy ads from Google and Facebook. But these platforms take a lot of initial investment before they could give you a significant return. If you want to increase your ROI without investing such a large amount, you should look for other platforms like YouTube and Instagram.

2. More Discounts Means Less Profit

Most often than not, many business owners purchase inventory from distributors and lend it to the market on credit. This technique only results in loss- loss of inventory and loss of return. Why? The reason is that you purchase the stock after making the payment in advance to the distributor. However, when you gave the stock on a credit basis with receiving the down payment, you will be deprived of the funds.

Hence, you will have to offer your stock or products at a discount that will eventually hit your profit margin. Always choose a business model where once you sell a product, you get your money back. You can become a franchisee of Bada Business to earn profits every week.

3. Choose a Business Plan with Zero Inventory Management

If you have a small business that stores goods in a warehouse, then managing inventory is an essential part of how you can control your stock. Inventory management is like storing ice. Once you have kept ice inside the warehouse, it will melt down into the water and will drown your profits under it, if you do not manage your stock smartly.

As the time of the stock increases, its shelf-life, as well as the price, begins to decrease. For instance, electronic devices and gadgets experience a price drop as soon as a new model with upgraded technology is launched. From perishable to non-perishable items, the value of stock starts decreasing if the goods stay in the warehouse for a longer duration.

Hence, it is best to order those goods that are popular and have numerous takers in the market. You can also pick a business plan that does not require you to stock up goods in a warehouse. To gain in-depth information from the experts, join India`s most powerful business training event ‘Leadership Funnel Program’ by Dr. Vivek Bindra. 

4. Margin

Whether you have a retail store, commodity business, mobile repair shop, or restaurant business, the profit margin is limited to 10%. However, the margin is not fixed and may be hit by external circumstances like an increase in cost, wastage of inventory, or expensive credit that can convert profit into a loss.

As an entrepreneur, you should always select a business model that returns high ROI. For instance, a Bada Business Franchise Partner enjoys a 20% to 50% of profit margin, without experience undercutting systems, with fixed prices.

If you are looking for simple and effective ways to improve ROI on your business, you should join LFP Bada Business. This event is designed to cater the modern-day entrepreneurs with practical solutions to business challenges.

To know more about our business training program, visit https://www.badabusiness.com/lfp?ref_code=SM&pp_code=BHBB000078

Categories
Business motivation

5 Key Reasons Your Business Should Use Google AdWords

5 Key Reasons Your Business Should Use Google AdWords
5 Key Reasons Your Business Should Use Google AdWords

Once Google launched its Self-Service Advertising Program’ back in October 2000, the online marketing game was changed forever. Decades later, Google was making whopping million-dollar revenue from it. And before we knew it, it became a vital part of many successful online businesses. Today, we know this as Google AdWords.

What is Google AdWords?

For those who are not familiar with AdWords, it is a pay-per-click service that allows you to create and run ads for your business. These ads are then displayed in the search results when a user types a specific keyword related to the product or service he is looking for.

If you are using the right keyword, you are already ahead of your competitors because you are reaching your target audiences who have an interest in your product and service. If you have a business website, it can be beneficial for you. Optimizing your Google Ads and website can lead to an increased Return on Investment (ROI).

Here are five main reasons why your business should use AdWords:

1. Progress is Measurable

Let`s suppose, you give an advertisement by following the traditional method of marketing of putting your product out there on a billboard. How will you measure the success of that advertisement? Can you calculate the number of customers who purchased your product after watching that ad at a bus stop? The answer is no.

But one of the advantages that online marketing has over traditional methods is that its results are easily measurable. AdWords is probably one of the best resources you can have to measure what is working and what is not working in your favor. As it comes equipped with plenty of PPC metrics, you can see what you must repeat and what you must not do again.

2. AdWords is Flexible

Another benefit of using AdWords is that it is flexible. It offers customizable options for your campaign to suit your particular requirements. It offers various features like:

  1. Keyword Match- This feature allows you to display your ad for specific keywords that users search. So you can set it to “Banarsi Saree Delhi” instead of a general search like “Banarsi Saree”.
  2. Ad Extensions– By using this feature you can display your product information, contact details, and a pack of links to your business website.
  3. Buyer`s Persona– This feature helps you to narrow down your audience. You can discover their geographical location, time of the day, their language, and which browser or device they are using.
  4. Support of Other Sites- With AdWords, you also get access to other non-search sites like- Gmail, YouTube, and lots of other partner sites at your fingertips.

3. AdWords Works Faster than SEO

When it comes to SEO, you may get great results but it is a time-consuming process. However, this is not the case with AdWords. Once you create an advertisement and the campaign goes live, ads will appear and you will get instant results.

Thanks to its speed, you can discover how effective your keywords are and how much impact they have on your target audience. You can use those keywords later in your SEO campaign to make it more effective. Where SEO plays a crucial role in your online success, PPC will get you to the top of the search results in minutes.

4. AdWords are More Engaging

More engaging ads mean more revenue! And as Google generates revenue from advertisement, it constantly improves AdWords. And along its way to improve one of its primary sources of income, Google notices that product listing ads and in-video ads on YouTube get more clicks. YouTube has over 1 billion unique visitors a month as well as several billion views a day. It comes second to Google when it comes to search engines.

More engaging ads mean more revenue for Google, advertisers as well as your own business. So why wouldn’t you want your business to be seen by your potential customers?

5. You can Set Advertisement Budget

Here is another thing that makes Google AdWords amazing! You can set a maximum cost per day for your campaign. So how does it help your business? It gives you an idea and allows you to decide how much you are willing to spend on a particular advertisement. You don`t have to worry about going over budget. You can reduce your budget or increase it accordingly.

So, if you are looking to scale your business and increase revenue, Google AdWords can be your best bet! However, if you are new to this concept, you can attend our free Masterclass by Devna Maheshwari only on our Bada Business Community App!

Download Link: https://tinyurl.com/nhav2kp6

Categories
Startup

Bank or Investor? Choose The Right Funding For Your Startup Business!

Bank or Investor? Choose The Right Funding For Your Startup Business!
Bank or Investor? Choose The Right Funding For Your Startup Business!

Summary: When thinking about starting a business, which type of funding should you choose?

Starting a business is easy if you are your investor. However, seldom it happens in the real world. So, if you are thinking about becoming an entrepreneur and want to start your own startup business, chances are that you must have thought about the investment too.

You may also have realized that you don`t have sufficient funds on your own to get started. So that leaves you with two choices: one is a loan, in which the lender makes its money by you paying the loan back with the applicable interest over a set period. The other is an investment, in which the investor is given a percentage of ownership (i.e., number of shares) in the business in exchange for providing the capital.

A loan and an investment are two different things. This is why you want to keep in mind what your audience is while making a business plan. The ways that lenders versus investors make money are completely different. Hence, you will require different business plans.

Here are a few factors are given by the best business motivational speakers that one must consider while choosing the type of funding:

1. Return on Investment (ROI)

If you are looking for investor funding, your prospective investors will want to see an ROI scenario with the current valuation and estimated future valuation of the business. So how will you determine that? The current evaluation of the business can be determined via the requested investment amount and the percentage of ownership given in return for the investment is how future evaluation will be determined.

For entrepreneurs, it is important to note that the valuation of investors is largely based on perception, especially for startups. The potential investors may or may not agree with your perceived valuation.

If you are looking for a bank loan, ROI does not apply to your business plan. This happens because the bank makes money by having the loan paid back with interest.

2. Exit Strategy

If you seek investor funding, prospective investors would like to know all the possible scenarios in which they can exit from having a financial interest in the business. Many possibilities include the investor selling their shares back to the company, or the business failing an investor losing their money. An investor plan will explain each possibility to exit.

If you are seeking a bank loan, you will not need an exit strategy because the bank only has a vested interest in the business during the term on the loan. Unless you don’t plan to get out of the business before the term on the loan is up, an exit strategy is not needed. Once you have paid the loan in full amount and the term is up, the bank has no interest in the performance of the business.

3. Projections

If you need a bank loan or other form of debt, your income statement should declare the interest expense, while your principal loan repayment would be shown in your cash flow statement. However, if you seek equity financing then the interest expense and principal loan repayment will both be zero.

Bank or investor? There is not a straight and simple answer to this. While banks are more inclined towards tried-and-true-business models, investors are usually interested in innovative ideas that can disrupt the business environment in some capacity.

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses.

You can start your startup business from the scratch with the guidance and hand-holding support of a personalized business coach.

Categories
Business motivation Strategy

How To Improve ROI With COVID-Proof Business Ideas?

How To Improve ROI With COVID-Proof Business Ideas?
How To Improve ROI With COVID-Proof Business Ideas?

ROI or return on investment- every business analyzes its future by identifying past and potential financial returns. ROI is a ratio of your company`s net profit compared to your financial investment in the business.

What is ROI or Return on Investment?

Many people often confuse this term with the profit margin. However, ROI is the financial return that you receive from spending money and not the profit received from the sale of goods and services. It helps the leaders to make informed decisions by kicking the guesswork out of the window.

Why is it Important?

The ability to calculate return on investment is crucial for every business, regardless of the company`s size or industry. A businessman is considered smart if he manages his expenses and monitor ROI regularly. Only businesses that can analyze ROI, survive in the long run.

So how can you improve your business`s ROI? How can you ensure that your business`s ROI is always increasing, no matter what? Watch, which type of business model can guarantee high ROI and regular 6 figure income, here.

Here are three ways that will help any business to receive higher ROI in every season:

  1. Choose a Business Plan with Zero Inventory Management

If you have a small business that stores goods in a warehouse, then managing inventory is an essential part of how you can control your stock. Inventory management is like storing ice. Once you have kept ice inside the warehouse, it will meltdown to the water and will drown your profits under it, if you do not manage your stock smartly.

As the time of the stock increases, its shelf-life, as well as the price, starts to decrease. For instance, electronic devices and gadgets experience a price drop as soon as the new model with upgraded technology is launched. From perishable to non-perishable items, the value of stock starts decreasing if the goods stay in the warehouse for a longer duration.

Hence, it is best to order those goods that are popular and have numerous takers in the market. You can also pick a business plan that does not require you to stock up goods in a warehouse. E.g.- online business courses. Online courses neither require you to spend heavily on warehouse and inventory management nor go out of demand.

  1. Giving Discounts may Decrease Profit

Most often than not, many business owners purchase inventory from the distributors and lend it to the market on credit. This technique only results in loss- loss of inventory and loss of return. Why? The reason is that you purchase the stock after making the payment in advance to the distributor. However, when you gave the stock on a credit basis with receiving the down payment, you will be deprived of the funds.

Hence, you will have to offer your stock or products at a discount that will eventually hit your profit margin. Always choose a business model where once you sell a product, you get your money back. You can become a franchisee of Bada Business to earn profits every week.

  1. Margin

Whether you have a commodity business, retail store, mobile retailer, or have a restaurant business, the profit margin is limited to 10%. However, the margin is not fixed and may hit by external circumstances like an increase in cost, wastage of inventory, expensive credit that can convert profit into a loss.

Thus, if you are an entrepreneur who is looking to set up an independent business, always select a business model that returns high ROI. For instance, a Bada Business Franchise Partner enjoys 20% to 50% of profit margin, without experience undercutting system, with fixed price.

If you are looking for simple and effective ways to improve ROI on your business, you can take our Problem Solving courses that are designed to cater the modern-day entrepreneurs with practical solutions to business challenges.

If you want to become an entrepreneur, but have no business idea? Become our franchisee and earn up to INR 25 Lac per month. For more details, visit: https://www.badabusiness.com/master-franchise