Kuwait Business

Distribution

2007-11-23T12:33:00.000-08:00

You have a product now what?

You need to decide how you want to sell this product. how are you going to get this product to the end user. When you ask yourself this question you will end up with two choices:

#1: Sell your product through opening a retail store.

#2: Sell your product through a distribution line.

both choices have their pros & cons. Here are some o

f them:

Opening a retail store

A retail can be a store in a plaza or in a mall. Mcdonalds, Nike, Cartier are all examples of retail stores. You physically can go visit them, buy from them and ask them about their latest products. Here

are the pros and cons of open

ing a retail store.

[ Pros ]

1) you build constant image to your customers

2) you are their directly to serve your customers

3) having all your products in one place

4) No percentage has taken to other parties

[ Cons ]

1) Expensive startup for decoration, systems, employees and location.

2) you are limited to visitors of one area.

3) expensive ongoing fixed cost for management and human resources training, bonusesm rent etc.

Distribution

Distribution is the act of distributing a product to a multi sales points. The sales point will take a percentage on consignment basis normally or if the product is famous and the seller has confidence in it then it will be sold cash.

[ Pros ]

1) you get exposed to more customers through multi channel

2) you have no rent cost

3) you build up relationship with sales points

[ Cons ]

1) you must have an inventory

2) you lose a large percentage for distribution channels

3) sales points do not care to sell your products

4) you lose direct interaction with customers

5) you lose some control of how your products is presented.

Although it seems that distribution have more cons than pros however the quality not the quantity that matters. Having an exposure to customers is worth losing a large percentage for distribution channels. Losing control over how your products is presented is sometimes seen better off than paying high fixed costs on sales people to present your product in your store. However it all depend on your business and how you want your product to be sold. It is a plan and consider these two choices when planning.

Dream BIG!

2007-11-19T04:13:00.000-08:00

It took only one man to transfer a desert land into a beautiful portrait in the modern world. He is Mohammed Bin Rashid, a man who doesnt stop dreaming and doesnt stop working!. "Dubai Inc." is how 60min show perceived Dubai and when asked whether he agrees with the name, Mohammed Bin Rashid he said: "Yes! i agree.. i want to change the way government are run".

His style is unique and only dreams big! and when asked "what do you want?" He said:

"I want to be #1..Not in the region but in the world!". This is how we should dream. The Prophet Mohammed Pbuh said: ask Allah Alferdos (The highest level in Heaven)! when you want to dream..dream big!

For any business there has to be a leader that dreams big. He gives inspiration to the place everyone is heading towards. Not only does dream but he believes he is going to achieve that dream and this takes some gutts!

Open your mind and strengthen your heart to dream big and believe your going to be BIG!

Franchise Shopping

2007-11-19T02:24:00.000-08:00

Franchising is the boom of the late 1950's. Mcdonalds, Coca-Cola were the early successful example of franching. First, why go franchising? whats in it for the investor? Here are the benefits:

Brand Name: A company that has a brand name is recognized by customers. It has a market share and therefore has potential sales. One of the franchisee's advantages is to save time and money on building a brand name from scratch.

Business System: This is the formula for how the business run. that includes the financial & management system, the processes, the values-mission-vision, the corporate design and marketing strategies etc. The business system determines whether the company can become successful or not.

Turnkey: A well run franchise would offer a turnkey business: from site selection to lease negotiation, training, mentoring and ongoing support.

Where to shop for a franchise?

Online

http://www.franchisebusinessreview.com/

http://www.franchise.org/

Your Next Trip

On your next trip to a foreign country observe the famous restaurent or the famous product made in that foreign country. However keep in mind that not all companies has a franchise system and not all famous brand names has powerful systems.

Idea Generation!

2007-11-18T15:28:00.000-08:00

The more you use your mind the more you get paid and move ahead in life. The more you use your physical strengths the more you are paid low and stay at the bottom. This is life. A smart man who think differently is unique. Businessmen like to have people around them that give them new ideas and new insights. Investors love to give their money to whom they believe that has great ideas. This idea generation man doesnt stop thinking. He always has something new. But he must show success in his old ideas. Ideas without results loses its credibility by time.

From where do we get business ideas?

1) Reading (books, newspapers, magazines, online forums)

2) Listening to (friends, experts, radio, audio books, educational programs)

3) Observing (new products, new services, new designs, people needs, people complains)

These information become your database to pullup when developing an idea. The richer the database the richer the idea becomes. All leaders are readers. They all keep on learning and add to their database to make their ideas richer.

Never stop thinking and never stop expressing what you think. You will build your thinking patterns when express your thoughts. Never stop learning and never stop teaching what you learn. What you learn will only stick if you teach it to someone else.

If you think alot its a good sign. Dont be annoyed but only think positively. When you do, It will always make you climb the ladder of your career and your life!

Feel the Excitement!

2007-11-12T15:23:00.000-08:00

Managing day to day operation routine can be boring. The biggest challenge for you as a manager to to make the routine an excitement for you and your employees. Wow! what a wonderful and an exciting day should be your daily thought and feeling.

I love working! what a nice smell of fresh coffee! Can you smell the excitement? take a new challenge every day..dont you love the feeling of winning? Here is how:

1) Do whatever you fear and avoid!

2) Smell the air and focus on breathing

3) achieve one important objective

4) listen to all employees!

5) Remember that life is short..enjoy living!

Try these tips and feel the excitement!

Daily Tasks

2007-11-05T15:55:00.000-08:00

Every day is an expense for any company. The expenses may be rent expense, human resources expense, products, utilities or shipping expenses. Every company has its own expenses to be able to run. Since expenses are a must have on a daily basis a company should seek daily return and profits.
Profits = Return - Expenses.
The profits maximization of the shareholder is why any company exist. Therefore shareholders want to see profits at year end. To achieve that we must see profits in a monthly, weekly and even daily basis.

How can we achieve profits in a daily basis?
Every employee should have daily tasks to achieve. These tasks should be clear, measurable and achievable. For example an employee working on sales should do on a daily basis the following:
- Reach out new customers
- Contact current customers
- sell to current customers

These are just an example. The tasks will change based on the job description of the employee. What should a secretary do on a daily basis? What are the type of tasks given to an accountant?

Before answering these questions we should know what are:
1- the goals of the company
2- What is the role of each department to achieve the goals of the company
3- What are the goals of each division manager to achieve the department goals.
4- What is the goal of each employee to achieve the goals of the division.

The goals are to transformed into monthly, weekly and daily tasks. If the employee want to work (Motivation) and know his work (Training) I guarantee the success of the company.

Successful companies are successful because they have big goals that are achievable, clear and broken down to every employee in terms of tasks to be achieved on a daily basis.