HOW DO YOU PRICE YOUR PRODUCTS OR SERVICES?

 Did you know that Many small entrepreneur loose customers due to lack of knowledge on pricing their products or services they sell? . Here is is the simple ways of choosing price of your products or services you offer:-

Know your customers; you should know who is going to use your products and their financial strength before producing and offering it to the market. After knowing who is going to use your products its the time to choose the price strategy to use in pricing your products.

    For the new products in the market I advise to use the two pricing strategies which are;-

Cost-plus pricing:

Competitive pricing:

Cost-plus pricing
The method involves comprising all  the cost of producing a product or service and adding a markup to determine the final price. the cost off producing involves raw material cost, time used on production, labor cost, packaging cost, and all costs associated with the products you produce which are direct or indirect. The mark up value added represent profit you will get from your products. this how the cost plus pricing strategy works.
Formula:
Selling Price = Total Cost + (Total Cost * Markup Rate).

For Example:
If the cost of producing a certain product is $30 and and you choose the  markup rate of 10%, the selling price would be $33.

    The cost plus pricing has merits and demerits on the business so when using this strategy you have to aware off the effects, among of the merits of using this method is simple to calculate and easy to understand the strategy, it gives a guaranteed profit since it includes all cost associated by the products and add mark up value which are profit and it is cost recovery technique for the Business.
Also this strategy have got its demerits when using it in the business. among of the drawbacks are It doesn't take into account the wealth of customer (customers willingness to pay) or how competitors are pricing their products in the market, the Prices generated by this method can be higher or lower than what the market is willing to bear and All costs are shifted to customer which may led to the business not to find how to reduce their cost on the production.
    We Advise you to use this method of pricing in the following circumstances

• When there is  stability of costs and easy to calculate .

• When you have  built a strong  Business brand and loyal customer

• Where you need to ensure a specific profit margin in your Business

• In industries where cost plus pricing is common practice.

Competitive pricing
    The strategy is more basing on the price of your competitor in the market. this method is more to attract customers towards your products since they will be more attractive to your lower price than higher prices comparing for the products similar on the market niche. on using this method make sure you take into consideration on you profit you will earn from from using competitive price you can Sett prices lower than competitors, potentially to attract price-sensitive customers and gain market share. This can be a penetration strategy, especially in new markets or  Sett prices higher than competitors, often to signal premium quality or a unique value proposition of you products comparing to their products(competitors).

WHERE ARE YOUR CUSTOMERS FOUND AND WHO ARE THEY? LEARN TO PREPARE A MARKETING PLAN

As an entrepreneur or businessman, need to know your customers so that you can provide them with a product that meets their needs. Join me to identify the methods of making a marketing plan (marketing plan).

Marketing plan

A marketing plan is a guide in business marketing activities. you describe the goals and objectives of marketing efforts and the strategies and methods that will be used to achieve them. It is a guide that helps businesses advertise their products or services effectively. It usually includes a target market analysis, details of the marketing mix (product, price, place, promotion), budget, and implementation schedule. This method keeps the business organized and directs efforts in marketing.

If you, as an entrepreneur, are able to properly organize a work plan in terms of marketing, you will be able to advertise your business and your business will grow quickly and will bring more benefits. In preparing a marketing plan, there are elements that must be followed so that the marketing plan is strong and followed. which are detailed below:

Elements of the marketing plan

• · Executive Summary:          

This is a brief description of the entire marketing plan. This information summarizes the company's goals, target market, key strategies and expected results from the marketing plan.

• · Company or Business Overview:         

Business overview Provides information about the business, its history, mission, vision, and core values. You also describe the products or services of the company/business and its unique selling propositions (USPs).

As an entrepreneur or businessman, you should write a summary of your business accurately explaining the history of your business, your business vision (visions), your business mission (mission) and the basic values ​​in your business (core values). Writing a summary in the marketing plan will help you remember your goals in business and will also make you search for markets according to your vision to be able to fulfill your short-term and long-term goals as well.

• · Market Analysis:         

In this aspect, the entrepreneur needs to analyze the current state of the market, the direction of the industry and the competitive environment. But also in the market analysis it includes information on the size of the market, growth potential, and the main market segments and it identifies opportunities and obstacles in the market.

In order for this aspect to be completed, the entrepreneur must be able to analyze the market fluently in the aspects mentioned above.

•  Target market segmentation:

   In this aspect, the entrepreneur should define the specific customer segments that his company/business intends to target. Also, the entrepreneur needs to describe the population, psychology, behavior and needs of each segment. After defining specific customer segments, he should explain why these segments were chosen and how the company plans to meet customer needs.

• · Competitor Analysis:          

An entrepreneur should profile important competitors in the market. In this aspect, you should evaluate competitors' strengths, weaknesses, market share and strategies. Once you've identified all of that, it's time to identify the opportunities that will differentiate you from your competitors.

• · SWOT Analysis:         

  In this aspect, the entrepreneur should provide an overview of the strengths, weaknesses, opportunities and threats of his company/business. And this will help him in identifying the internal and external factors that can affect the marketing strategy of the product.

• Marketing goals and objectives :         

 The entrepreneur needs to clearly define specific, measurable, attainable, relevant, and time-bound (SMART) goals in this aspect. This aspect also requires the entrepreneur to set goals for sales, market share, customer acquisition, retention, and other key performance indicators (KPIs).

• · Marketing strategies :         

The entrepreneur in this aspect of the marketing plan needs to show the high-level strategies that he will use in his business to achieve his goals. These strategies include pricing, distribution and promotion strategies.

These strategies also explain how the entrepreneur plans to differentiate himself and create value for customers.

• · Marketing Techniques:          

 In this section, the entrepreneur must provide a detailed plan for the implementation of marketing strategies in his business, also in this section, the entrepreneur must specify marketing methods, campaigns, and plans to be used in selling his products.

The marketing tactics section includes a content calendar, advertising schedule, and budget allocation.

• · Budget and Resource Allocation:         

On this aspect, the entrepreneur needs to align the resources with the details of the financial resources allocated for each marketing activity, this will help in running the marketing activities, so it is very important to have financial resources in order to successfully operate the strategic marketing plans in the business. This feature also includes an analysis of marketing costs, such as advertising, labor, technology and materials.

• · Implementation Time:          

The entrepreneur must submit a schedule of events that specifies when each marketing activity will be implemented. This schedule will help ensure that tasks are completed on time.

• · Monitoring and Testing:         

The entrepreneur in part needs to explain how he will monitor and measure the success of his marketing efforts.

This section also includes KPIs and metrics for evaluating performance and describes how reports will be prepared and reviewed.

• · Emergency Plans:        

This section requires the entrepreneur to identify challenges or obstacles that may arise during implementation. This will also outline contingency plans and alternative strategies to deal with unexpected issues.

• · Conclusion          

    This section provides an overview of the key elements of a marketing plan. It also emphasizes the goals and strategies of the company.

• · Additional (Optional):          

This feature is optional but if you want to add it to your marketing plan it will include additional information, such as market research information, customer surveys or additional financial information.

These features together provide a complete guide for businesses to effectively advertise their products or services.

HAVE YOU ASSESSED YOUR BUSINESS?

BUSINESS ASSESSMENT (SWOT )

In evaluating a business, an entrepreneur should look at four (4) things that will make him live his vision.

SWOT analysis is a strategic planning tool that businesses use to assess their internal strengths and weaknesses, as well as external opportunities and threats. The pronoun NUFUVI means Strength, Weakness, Opportunity, and Obstacles. Here's how it's used in business:

• Strengths (S): Businesses examine their internal strengths—what they do well, their unique strengths, and competitive advantages. This may include a strong brand, a skilled workforce, modern technology, or better processes. Identifying and leveraging strengths can help businesses differentiate themselves in the marketplace.
• Weakness (W): This includes a realistic assessment of internal weaknesses and areas where the entrepreneur can improve. It may include inefficient processes, lack of certain skills, or outdated technology. Addressing weaknesses is critical to improving overall business performance.
• Opportunities (O): As an entrepreneur or businessman you are analyzing external factors that give you opportunities for growth and success. These could be emerging markets, technological advances, changes in consumer behavior, or new trends. Identifying and exploiting opportunities can help a business expand and prosper.
• Obstacles(T): Obstacles are things outside the business that can create challenges or risks. This may include adverse economic conditions, changes in laws and regulations, increased competition, or changes in technology. Anticipating and preparing for obstacles is essential to effective risk management.

By doing a SWOT analysis , an entrepreneur or businessman gets a full understanding of his current business situation and can develop strategies to use strengths, address weaknesses, take opportunities, and reduce obstacles. This analysis is part of the strategic planning process and can guide the entrepreneur or businessperson in making decisions, allocating resources, and setting goals within the organization.

Why do a SWOT analysis?

SWOT Analysis is an important tool for businesses and organizations for several reasons:

• Self Assessment: It allows an entrepreneur or businessman to make a complete assessment to assess the strengths and weaknesses of his business. This internal analysis is important for improving internal processes, efficiency, and overall performance.
• Strategic Planning:SWOT analysis helps in the strategic planning process by providing a complete understanding of the internal and external factors that can affect the business. It guides decision making and helps in setting achievable goals.
• Risk Management: By recognizing obstacles, an entrepreneur or businessperson will be able to be  wise in planning and managing risks. Understanding external obstacles enables the entrepreneur to develop emergency strategies and reduce the impact of unexpected challenges.
• Exploiting Opportunities: SWOT analysis helps businesses identify opportunities for growth and success. Identifying and exploiting these opportunities can give an entrepreneur a competitive advantage and contribute to long-term success.
• Resource Allocation: It helps in the allocation of resources by helping the entrepreneur prioritize the areas that need priority and resources. This ensures that resources are directed to activities that align with strategic objectives.
• Competitive Advantage: Understanding internal strengths and weaknesses and external opportunities and constraints allows an entrepreneur to build on strengths and address weaknesses. This contributes to building a competitive advantage in the market.
• Better Decisions: By clearly understanding the internal and external factors affecting the business, decision makers can make better and more informed decisions. This is important for adapting to changes in the market environment.
• Communication and Collaboration: SWOT analysis provides a framework for communication and collaboration within the organization. It encourages teams to share ideas, perspectives, and opinions, fostering a collaborative approach to problem solving and developing strategies.
• Alignment of Goals: Helps align the entrepreneur's goals with identified strengths and opportunities. This ensures that the business moves in a direction that utilizes its advantages and seizes the opportunities that exist.

 In general, SWOT analysis is a useful tool that enables a businessman to examine the current state of his business, make informed decisions, and develop strategies for long-term success in a changing and competitive environment. 

ARE YOU AN ENTREPRENEUR OR BUSINESSMAN?

 

WHO IS AN ENTREPRENEUR AND WHO IS A BUSINESSMAN !!!

MEANING OF ENTREPRENEURSHIP

The concept of entrepreneurship has been explained in different ways. Some people think that entrepreneurship is just doing business. Some look at entrepreneurship in a broader context that involves a person's skills and knowledge in using existing opportunities. 

Entrepreneurship is the process of starting and running a business, usually with the aim of solving a challenge in society. Entrepreneurs are the creative minds behind new ventures, taking risks to turn their creative ideas into successful businesses. It's not just starting a business, it's also about managing and dealing with the challenges that come with it. Entrepreneurship involves creativity, determination, and the willingness to accept uncertainty. So, if you are thinking of starting an entrepreneurship, prepare yourself for an exciting journey with hills and valleys.

  Entrepreneur ; He is a person who takes steps without hesitation to start and run new businesses or projects. This is someone who is willing to take risks in pursuing innovative ideas, products, or services with the goal of making a profit. Entrepreneurs are known for their ability to identify opportunities in the market, mobilize resources, and take deliberate risks to see their idea grow.

 

Entrepreneurship is not based on a particular industry or type of business; you cover many areas. Entrepreneurs can be seen in technology, healthcare, finance, retail, and many other industries. They play an important role in stimulating economic growth, creating jobs, and promoting innovation in various sectors. Successful entrepreneurs often possess qualities such as creativity, resilience, adaptability, and hard work.

Who is the businessman?

A businessman; It is anyone who engages in the activities of buying, selling, or exchanging goods and services with the main goal of making a profit. The term "businessman" is often used to describe a person who is involved in business activities on a professional level. Entrepreneurs can be entrepreneurs running their own projects or executives of established companies.

 

Business and entrepreneurship can be used as similar words, but there are differences between them.

Business : This is a broad term that includes all activities involved in the production and exchange of goods and services for profit. It includes established companies, corporations, and commercial activities, regardless of size or level of creativity. Business can mean commercial activities, from small local shops to large international companies.

Entrepreneurship: On the other hand, entrepreneurship is a special side of business. You focus on innovation and development of new projects. Entrepreneurs are people who take the initiative to start a business, often by bringing new ideas, products, or services to market. Entrepreneurship involves a higher level of risk-taking and creativity compared to conventional business activities.

NOTE:All  those who engage in entrepreneurship are involved in business, but business activities do not involve the level of risk, creativity, and vision associated with entrepreneurship. Consider business as a larger concept, and entrepreneurship as a specific, more dynamic part within that concept.

Things to consider to be successful as an Entrepreneur

Success in entrepreneurship requires a combination of skills, attitude, and strategic actions. Here are the important things that an entrepreneur should consider:

1. Clear Direction and Mission: Clearly state the direction and mission of your calling. Know why you do what you do, and let that guide your decisions.
2. Innovation and adaptability:  changes happen every day so in order to be successful as an entrepreneur you need to be creative and flexible to adapt to the speed of change by adjusting the strategy according to changes in the market. What works today may not work tomorrow.
3. Risk Management: Entrepreneurship always involves risks, in order to be successful you must be able to manage and reduce risks. Make decisions wisely and be ready to learn from mistakes.
4. Passion and commitment: Entrepreneurship can be challenging, so passion for what you do is important. Commit to achieving your goals and be willing to work hard.
5. Continuous Learning (Continuous Learning): Try to increase your knowledge by learning regularly to be able to fight environmental changes. The business environment is changing, and successful entrepreneurs stay ahead by staying informed.
6. Build a Strong Team: Surround yourself with a talented and motivated team. Create your team that is strong and will reach your goals. A successful business is often not created and grown by  the efforts of one person.
7. Think about customers (Customer Focus): in every service you provide, think about your customers first. Understand your customers and their needs. Once you understand your customers, you will be able to provide them with the best service that meets their needs and you will also build trust between you and the customers.
8.  Effective Communication: Build the ability to communicate with people. Make sure customers understand what you do and give them a reason to use your products and not others. Clearly explain your idea to your team, customers, and investors. If your idea is understood by investors, it will make them able to invest in you.
9. Financial Management: entrepreneurs fail to organize and manage money as an entrepreneur. Understand and manage your money wisely. Monitor budget, cash flow, and financial projections closely.
10. Make your network (Networking): meet different people doing different activities. The network you develop will open doors to opportunities, partnerships, and valuable advice.
11. Receive  Feedback (Adapt to Feedback): accept correction and be ready for feedback from users of your product whether positive or negative. Use feedback as a way to make improvements.
12. Legal and Ethical Practices: running your business with integrity and following legal and ethical procedures  will build trust with customers and investors.

Remember!

 Success in entrepreneurship is a journey with twists and turns. Be patient and stick to your goals so you can make a big difference.

 

 

DOES YOUR BUSINESS HAVE MUSCLES?

WELCOME BIASHARA JASIRI BLOG

Biasharajasiri brings together entrepreneurs (Entrepreneurs) as well as small and medium-sized businessmen by providing them with Entrepreneurship education (Entrepreneurial skills).

The education that an entrepreneur will get will definitely help him in increasing his skills and efficiency which are great tools in starting a business for new entrepreneurs and promoting business for those who have their own business and removing them from dependence by promoting their personal economy as well as the economy of the country as a whole.

 The purpose is   to give them an understanding of the concept of entrepreneurship, the good results of getting entrepreneurship education, including promoting business; increase income and reduce poverty in society.

Through Bisharajasiri Entrepreneurs will be able to get education in the following matters:-

• Knowledge of entrepreneurship and business
• Business assessment (SWOC Analysis)
• Costing
• Packaging
• Knowledge about preparing a budget (Budgeting)
• Understanding of Preparing an Action Plan
• Business Development Strategies
•  Caring for and attracting customers (Customer care), and
•  Prepare and maintain their business records.
• preparing a Business Model canvas