Archive for January 2012

India still a hot spot for foreign investors - E&Y Report



Foreign direct investment in India is set to swell in coming years as investors stomach a lack of transparency, poor infrastructure and policy paralysis in their search for growth, professional services firm Ernst & Young (E&Y) said in a report.

Overseas investment in Asia's third-largest economy rose for the first time in three years in 2011, the report noted, as global investors put their faith in rising salaries, an expanding middle-class and a large and cheap labor force.
"The fundamentals that make India attractive to investors remain intact," Farokh T Balsara, head of markets at Ernst & Young India, wrote in the report released on Sunday.
"However, our respondents continue to cite inadequate infrastructure and a lack of governance and transparency as major obstacles to investment."
Foreign direct investment (FDI) in India rose 13% to USD 50.81 billion in the first 11 months of 2011 from a year earlier, while the total number of projects rose 25% to 864, the report said, citing data from the Financial Times' FDI Intelligence service.
Business confidence in India has declined over the past year, as economic growth slowed from an annual rate of 8.5% in 2010/11 to about 7%, and corruption and policy paralysis discouraged investment in big projects.
Just over half of chief executives in India are still "very confident" of revenue growth in the next 12 months, down from 88% a year ago, according to a recent survey by PricewaterhouseCoopers.
The majority of companies surveyed by E&Y were confident in the long-term prospects for investment in India, given sluggish growth in the United States and debt problems in Europe.
Almost 70% of 382 international companies surveyed said they plan to increase or maintain their operations in India, said the report, which was prepared for the World Economic Forum gathering in Davos, Switzerland.
Just 19% said they had no plans to enter the country or were preparing to withdraw.
Robust domestic demand, cost competitiveness and a cheap, ever-growing labour force were cited India's key benefits.
"Although the ongoing global uncertainty...(has) prompted some discomfort among global investors to make long-term commitments, India's inherent advantages and its proven resilience to counter macroeconomic challenges far outweigh these concerns," Balsara said.
Automakers led the way in investing in India last year, boosting spending by 46%, E&Y said.
Technology and life sciences companies were other big spenders, while spending by foreign companies on infrastructure and retail projects declined.
Ford Motor Co, which said this month it would spend USD 142 million on its Indian operations, and the Renault-Nissan alliance are among companies that are stepping up investment in India.
Other companies, particularly retailers, are not so sure.
Sweden's IKEA, the world's biggest furniture retailer, said this week that would be difficult to set up shop in India because of complex government sourcing rules announced this month.
Plans by companies such as Wal-Mart were set back in December when the government, under pressure from political allies, abandoned a long-mooted policy to open up the supermarket sector to direct investment by foreign companies

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Internal Analysis Eu Yan Sang

Key Internal issues: Key internal issues are also analyzed under the internal analysis of the firm to attain the organizational goals and objectives. In this, various issues are assessed those have impact on the organizational growth and success along with strategies of the organization. In this, key issues related to poor quality of the products are founded under the internal analysis of the firm. In this, issues related to poor hygiene factors are also faced by the firm currently that has negative impact on the business (Corporate report, 2000).

Poor management support is also included in the issues of the firm those are faced by the organization internally. It also affects the organizational success and management in positive and negative manner. In this, management of the Eu Yan Sang is not so effective due to lack of new hiring. Traditional approach is followed under the management of the firm that has negative impact on the organizational growth and success (The Mark of Excellence: Eu Yan Sang International Ltd Annual report 2010, 2010).

In addition, issues related to social support and poor material relationship are also faced by the firm to run its business in the competitive market. It is damaging image and growth of the firm negatively in the international market (Corporate report, 2000). Along with this, level of debt is also included in the issues of the firm those are relevant with the organizational growth and goals and objectives. At the same time, level of debt of the firm is decreasing from the last year that is a positive sign that indicates to the success of the firm (Zastrow & Kirst-Ashman, 2009).

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Strategies for success - Richard Branson

 
Billionaire entrepreneur and best-selling author Richard Branson has become an icon in the eyes of many aspiring business owners. His inspirational advice has helped steer many startups, simply by learning from his vast experience building the Virgin empire of businesses. Here, we capture nine of Branson's best strategies for success -- from branding and customer service to leadership and learning to let go.

On Inexperience as an Asset

On Inexperience as an Asset

Branson's Advice: "How does your approach differ from that of other businesses? How will you reach out to target markets? Why should people choose your products and services over your competitors'? Present prospective partners with a fresh take on a tired industry, and you will grab their attention."

On Customer Service

On Customer Service

Branson's Advice: "Good customer service begins at the top. If your senior people don't get it, even the strongest links further down the line can become compromised. No company can train its front-end people to handle every situation, but you can strive to create an environment in which they feel at ease 'doing as they would be done by.'"

On Branding

On Branding

Branson's Advice: "When creating your first ads, designing a logo and reaching out to potential customers for the first time, you may be tempted to create a brand that's very corporate and remote. As a consequence, these brands acquire no texture, no character and no public trust. Whatever you decide your new brand will stand for, deliver on that promise. And beware: Brands always mean something. If you don't define what the brand means, your competitors will."

On Leadership

On Leadership

Branson's Advice: "Rather than focusing on mistakes, a leader needs to catch someone doing something right every day. If this culture of fostering employee development through praise and recognition starts at the top, it will go far toward stamping out the employee fear of failure that can stunt a business, particularly in its early days. When mistakes happen -- which is inevitable -- you have to learn from them, not dwell on what went wrong. It's almost always better not to go over the obvious with the people involved. They know exactly what happened."

On Handling Success

On Handling Success

Branson's Advice: "When a business does well, many start to focus solely on increasing profits, no matter what the cost -- leaving behind everything that originally made the business special. If you are mulling over an expansion, tell all your employees about your plan – include everyone from the truck driver to your senior team -- and ask for their input. If you can, it would be best to work out the details of the expansion plan together, taking into account the challenges faced by your employees, and incorporating improvements they would like to make."

On Delegating

On Delegating

Branson's Advice: "Stepping back frees the founder to focus on the bigger picture -- to dive in when there are problems or to help close a deal. When your team is in place and the launch phase is over, take the time to conduct a test to see how well the company performs without your help. This can be a very revealing exercise: It will show you where the problems are and, most important, how well you have learned to delegate. So make sure you hire great people and find ways to keep them on your team for the long term."

 

On Selecting Investors

On Selecting Investors

Branson's Advice: "When you are evaluating a proposed partnership, do not focus only on the capital you need to kick-start your business. Ask: Will this person or group give us the space and time we need to build a great business? Bear in mind that a dictatorial financial partner can dim the spirit and enthusiasm of a new enterprise, muffling the spark that prompted you to launch this project – the spark that is most likely to make your venture different from your competitors."

On Staying in Touch

On Staying in Touch

Branson's Advice: "Take time to find out what the staff is actually doing on a day-to-day basis. Spend at least a few hours observing operations, and if you are qualified, borrow a desk, grab a phone and lend a hand. Then, ask yourself: What are the employees' working conditions? Do people seem energetic and creative? And ask employees: Do you have the resources you need? If you could, what problems would you fix? What ideas of yours has your manager followed up on? Ensure your staff is consistently encouraged to contact you with ideas and problems. Re-energize employees by showing them change is possible and action is valued. Just remember you are not always going to hear pleasant news."

On Taking Risks

On Taking Risks

Branson's Advice: "There is little point in entering a new market unless it provides the opportunity to really shake up an industry. Almost all our new ventures come about from our thinking up a product or service that we believe people really want. Then, if our entry has the potential to make waves, we're going to look at it very closely. But we always protect the downside and make sure we have a way out if things go wrong. If a new business has the potential to damage your brand in any way, you should not invest in it.

Courtesy: Entrepreneur.com

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A Search-Engine Startup Story


Like many frequent fliers, Sanjay Kothari often struggled to redeem his travel rewards points, taking hours to search for prices and availability, decipher special rules and analyze the benefits. Realizing that many airline miles go unused because consumers have difficulty managing the programs in which they're enrolled, Kothari teamed up with former Hunch senior technologist and Reble.fm co-founder Vinay Pulim to launch MileWise.


A search engine with the frequent flier in mind, MileWise allows travelers to find flights that can be purchased with cash, airline miles or hotel and credit card points. The site also recommends the best ways to pay based on users' individual rewards programs and travel preferences. Unlike other flight search engines that allow for searches only by price, airline and number of stops, MileWise factors rewards points into its rankings to try and find the optimum deals.

"It usually takes people several hours to figure out whether to pay for travel with cash or rewards. We're trying to help them do it in under 30 seconds," Kothari says.



After securing $1.5 million in funding last year, the New York startup has been trying to keep up with requests for additional features and functionality from its rapidly expanding customer base: In private beta, the site had 600 users; within a month of public launch, there were 12,000.

We caught Kothari on a break from his busy travel schedule to discuss innovation, fundraising and strategy.

What was the inspiration for MileWise?
There are about 90 million frequent fliers in the U.S. alone, and they all face the same problem: difficultly using their airline and hotel rewards points. It's time-consuming and requires multiple online searches and phone calls. People get very frustrated with the complex regulations and different options to figure out the actual price of a flight. It's often confusing as to whether it's a better value to pay with cash or rewards. MileWise solves this problem.

What innovations did you bring to the market?
In one search request, we show all the ways to pay for a flight: cash, miles and points. MileWise converts all of these ways to pay into a dollar-equivalent value, making them easy to compare. And our ranking algorithm includes rewards earned--we focus on value, not just price. We're the only flight search engine that recommends the best way to pay based on each user's travel and redemption preferences, and displays the rewards earned per flight, including status and cabin bonuses.



How did you get your financing?
We received investment interest while still in the concept stage; however, we decided that a fleshed-out prototype and business model would be optimal before engaging in a focused fundraising effort.
During the search engine build process, we serendipitously met Naval Ravikant, one of the founders of AngelList. He informed us that investors were looking to invest in ventures that solve these difficult [travel] problems. With help from Naval and [AngelList co-founder Babak Nivi], we applied and submitted our profile to select investors.
Initial interest and commitments led to introductions and interest from other investors, and we actually oversubscribed on our initial $500,000 raise. We ultimately closed with $1.5 million in convertible debt from a strategic mix of angel investors and venture capitalists.

What does your business model look like?
We have several revenue streams. Along with a commissions-based model, advertising is extremely context-sensitive. We also intend to make money from credit card sign-ups and from the aggregated data and analytics insight we offer to our partners.


Maintaining a clean user interface and protecting consumer privacy will guide how we pursue revenue streams moving forward. A compelling user experience and trust are our most important objectives.

What's next for MileWise?
We've added flexible-date searches and will add a feature that will recommend and alert users when they're eligible for award trips. We will soon automatically integrate deals and promotions, like mileage bonuses, into the site, and we plan to support many more airline and credit card programs. In parallel, we plan to offer search and recommendations for hotels and cars. Mobile is also an extremely important part of our strategy, and we're planning on releasing iPhone, iPad and Android apps.

Courtesy: Entrepreneur.com

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Porter's 5 forces analysis - Global Telecom Industry

  • Threat of New Entrants.  It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are generous, the threat of competitive entrants escalates. When financing opportunities are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry. In the U.S., for instance, fledgling telecom operators must still apply to the Federal Communications Commission (FCC) to receive regulatory approval and licensing. There is also a finite amount of "good" radio spectrum that lends itself to mobile voice and data applications. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult.

  • Power of Suppliers.  At first glance, it might look like telecom equipment suppliers have considerable bargaining power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-optic cables, mobile handsets and billing software, telecom operators would not be able to do the job of transmitting voice and data from place to place. But there are actually a number of large equipment makers around. There are enough vendors, arguably, to dilute bargaining power. The limited pool of talented managers and engineers, especially those well versed in the latest technologies, places companies in a weak position in terms of hiring and salaries.



  • Power of Buyers.  With increased choice of telecom products and services, the bargaining power of buyers is rising. Let's face it; telephone and data services do not vary much, regardless of which companies are selling them. For the most part, basic services are treated as a commodity. This translates into customers seeking low prices from companies that offer reliable service. At the same time, buyer power can vary somewhat between market segments. While switching costs are relatively low for residential telecom customers, they can get higher for larger business customers, especially those that rely more on customized products and services.

  • Availability of Substitutes.  Products and services from non-traditional telecom industries pose serious substitution threats. Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct lines into homes, offer broadband internet services, and satellite links can substitute for high-speed business networking needs. Railways and energy utility companies are laying miles of high-capacity telecom network alongside their own track and pipeline assets. Just as worrying for telecom operators is the internet: it is becoming a viable vehicle for cut-rate voice calls. Delivered by ISPs - not telecom operators - "internet telephony" could take a big bite out of telecom companies' core voice revenues. 




  • Competitive Rivalry.  Competition is "cut throat". The wave of industry deregulation together with the receptive capital markets of the late 1990s paved the way for a rush of new entrants. New technology is prompting a raft of substitute services. Nearly everybody already pays for phone services, so all competitors now must lure customers with lower prices and more exciting services. This tends to drive industry profitability down. In addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its specialized equipment. Networks and billing systems cannot really be used for much else, and their swift obsolescence makes liquidation pretty difficult

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    Differentiate to Innovate the Future of the Mall

    There are several shopping malls opening up in Karachi every month but only some of them are to able penetrate the market and gain popularity among visitors. These include Atrium Mall Saddar, Dolmen Mall Clifton and Port Grand which are buzz of the town and have successfully overtaken previous entertainment places like the Park towers, Area 51 and Arena. There are many malls such as the Emerald Mall Clifton which is striving really hard to attract visitors by marketing different kind of events but the success in Karachi only comes to those who really know how to differentiate.

    Lets say Atrium Mall, which apart from having similar facilities such as large food area with renowned brands, has a 3D cinema and the gaming zone which distinguish the Atrium mall from other. Dolmen has its own strategy but the thing that differentiates it from others is the presence of huge Carrefour, the Hyper Star Mart.

    Port Grand offers different value as it provides a unique atmosphere with harbor views but the thing which may have impact on its profits could be its entrance fee of Rs. 300/

    Malls in Karachi may have to pursue innovative strategies if they want to make themselves a success and buzz of the town. They could even learn from Dubai model by creating different theme malls representing different nations or having a large Aquarium or Ice Skating rink. People here in Karachi have to travel to the hilly areas or Dubai just to enjoy ice.


    Another thing they can do is building a large indoor water park inside the mall. Currently all Karachi water parks are very far from the city and one has to wait for a picnic program to have fun in the water. Karachi Malls can introduce this unique element which is currently followed by no other mall in the city to differentiate itself from others.

    Today Karachi Malls are filled with all facilities that include famous brands, indoor kids arena, theatre, food court, bowling alley, event spaces, gaming zone and hypermarkets. The introduction of indoor water park would really distinguish your mall and could make it a talk of the town.






    A large Underwater world cum Fish Aquarium inside Dolmen Mall, Clifton will make the mall more outclass.

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    How to Invest in Share Market?



    The First Questions Comes to the mind of person How To invest in the share market when he prepares himself for stock trading. Basically you should have a clear vision  what type of returns you want . Here We are giving you simple guideline that will be helpful for you for the online trading:

    • Subscribe to a dealer or securities investment firm with ties to the Indian stock market. The determining factor in the recruitment of financial markets is an experience in which you invest your money. Brokers can be expensive, but tend to respond quickly to questions about individual actions.
    • When a person want to buy/sell shares in the share market then he has to first place the order with a broker or can do himself using online trading systems .When you buy a share, the message is transferred to the exchange [either NSE or BSE ] and the order stays in the queue of exchange's other orders and gets executed if the price of that share comes to that value. Once you get the confirmation of this transaction, the shares purchased, will be sent to your demat account. The shares will be stored in demat account in electronic format.
    What is  Demat Account and Why it necessary?

    The Securities and Exchange Board of India (SEBI), has made it compulsory to open a demat account if you want to buy and sell shares in the Indian share market.
    • Demat (short form of Dematerialization) is the process by which an investor can get shares (also called as physical certificates) converted into electronic form maintained in an account with the Depository Participant (DP).
    •  DP could be organizations involved in the business of providing financial services like banks, brokers, financial institutions etc. DP’s are like agents of Depository.
    • Depository is an organization responsible to maintain investor's securities (securities can be shares or any other form of investments) in the electronic form. In India there are two such organizations called NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Services India Ltd.)
    •  Investor’s wishing to open Demat account has to go DP and open the account.
    • Opening the Demat account is as simple as opening the saving bank account with any bank.
    • As you need bank account to save money, deposit cheques etc, likewise you need to have a demat account to buy and sell stocks in share market and to hold the shares.

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    Businesses with less investment

    Do you like organizing cluttered garages? Do you make mouth-watering cakes? Do you love to make jewelry? Are you good at planning special events? If you've been thinking about starting a business as your next career, now could be a great time to turn one of these hobbies into a thriving small business -- even on a bare-bones budget.



     
    Starting a business on the side is a smart way to get your feet wet as an entrepreneur. Look first at the services and goods you already provide for free to friends and family. "The best way to start a business for less than $500 is to figure out how to get paid for what you love to do," says Clyde Anderson, a financial lifestyle coach and CNN contributor in Atlanta. "It's crucial for anyone who's looking to start a business to determine what gifts and talents they already have and to convert them into an actual business."

    Here are 7 cool businesses to start on a shoestring.

    1. Baker 


     
    Cakes and cupcakes are the highlight of any party, and reality foodie shows such as Cupcake Wars have made baking a popular new business idea. Brooklyn blogger and cupcake expert Nichelle Stephens says you can start a cupcake business for $500 or less, as long as you aren't trying to open a storefront. "You spend more time than money when starting a baking business," says Stephens, who shares baking and business tips on her blog. "You need to find a neighborhood where there is a limited number of baked goods available and identify your niche." Once you get your mixer, the next expense is quality baking pans and cooling racks. Use your co-workers as your test market and promote your business in the groups you belong to, especially if you have children. Other parents are a great potential customer base. Keep in mind it's illegal in most jurisdictions to bake and sell food from your home. Here's a website where you can research commercial kitchens in your area.

    2. Mobile Notary Public


     
    Despite technological advances, documents such as property deeds, wills and loan papers still require an official signature and stamp by a notary. Some banks and real estate agents have a notary license, but the current trend is using notaries who come to your home or business on call. Setting up this kind of business has strict rules: Most states require you to take a course to learn the notary business and pass an exam, and all require a state license. Check with your state for regulations and costs, and visit the National Notary Association for materials and more information. It's important to put out the word to friends, family and co-workers about your new notary business. Set up a professional website with search engine optimization so that your business can be found locally. "Pick a niche," says Dany Victory, owner of mobilenotarypublic.com in Southern California. "I specialize in loan documents, and it's helped me earn referral customers such as realtors and title companies." As a mobile notary, your costs are low and there are fringe benefits: You can drive around, meet interesting people and charge a premium for providing door-to-door service. "My income is higher because I charge travel fees on top of the standard notary charge of $10 per signature," says Victory.
    3. Personal Trainer 


     
    Many people's New Year's resolution is to lose weight, and many of these same individuals are looking for professional help to shed those unwanted pounds. If you are a fitness buff or avid runner, you may be able to make a living by teaching others what you've learned. You can be a general fitness instructor or specialize in marathon prep, yoga or Zumba. The first step in launching a fitness business is to become certified as a personal trainer. You also may need some basic equipment such as a portable CD player, exercise ball, stair step and mats. To launch your training business, start by telling your own weight loss story. Don't be afraid to share your before and after pictures on your website and Facebook page. To find clients, try to build relationships at the gym you already attend. Inquire about becoming a trainer on staff to learn the business. Reach out to friends and colleagues who either don't have time to go to a gym or feel embarrassed in a room full of people running on treadmills. Fitness enthusiast John Leber of Paramus, N.J., became a trainer in retirement. Leber studied, took a workshop and an exam, and within months got his personal trainer certification from the National Academy of Sports Medicine (NASM). "I worked for a large fitness chain gym for 18 months, and it was like your first job out of college, but after I left that company, my old clients started calling me for services," says Leber, who is 63." He specializes in working with clients 50+ and with people recovering from injuries. Here's more on how to become a personal trainer.

    4. Personal Organizer



     
    Clutter is stressful for everyone, and you can make a living helping people get their homes, offices and lives in order. Professional organizing is a perfect business for people with a knack for neatness and developing systems. You can charge hourly or set half-day and full-day flat rates for your time. Not all clutter is the same, so it's a good idea to choose an area of specialization, such as cleaning out garages, helping people plan for moving or downsizing, or assisting professional women with busy lives. Devise a system for how you will approach new client projects. Some organizers interview prospects; others ask for a tour of the space that needs organizing; some just throw everything on the floor and start from there. Philadelphia-based professional organizer Debbie Lillard, author of Absolutely Organized, wanted to work part time after years as a stay-at-home mom. She launched her business by contacting old friends who were stressed by the disorganization in their lives. She created business cards and flyers and distributed them in grocery stores in affluent neighborhoods. "I wrote a sales letter explaining who might need an organizer and sent it to everyone I knew, which landed me my first clients; from there, it was all word-of-mouth referrals," Lillard says. Within a few months, she also launched a do-it-yourself website. Lillard went on to write two books about getting organized and shared organizational tips during media appearances, which helped her business grow. Collecting before and after pictures and client testimonials are good ways to promote a business as a professional organizer. For people interested in this business, consider joining the National Association of Professional Organizers, which provides education and training for new business owners in the field.

    5. Social Media Marketing Assistant 




     
    The social media world is growing, and most business owners don't have time to keep up. You can create a business as a social media marketing assistant or strategist if you have strong writing skills and a working knowledge of the major social media networking sites. Copy editing skills also are in demand for customers with blogs. Prior experience in public relations and marketing can also set you apart from those who just know social media tools. This business involves helping clients develop a social media strategy, build blogs, and set up Facebook Fan Pages, Twitter accounts, LinkedIn profiles and Google+ accounts. lf you know how to set up and maintain WordPress websites (they're free), you can specialize in that service and charge a higher hourly rate. Cathy Larkin of Web Savvy PR in Aston, Pa., shows her small-business clients how to make social media marketing less intimidating. She provides strategies and shortcuts to keep her clients up to date online. "The first thing I did was learn the tools; then I picked a niche for the kind of customers I wanted," Larkin says, "Be willing to work for free at first, just to prove you know what you are doing and get some references." A low-cost way to quickly sharpen your social media skills is to attend a social media conference such as a PodCamp, which are held all over the country. The key to being successful as a social media marketing assistant is keeping your skills updated and making sure you stay on top of the constantly changing features on the social networking sites.

    6. Jewelry Designer

     
    People like handmade, one-of-a-kind jewelry, and this hobby is a good choice for a home-based business. Settle on your signature style or specialty -- whether you'll create pieces with bead design or design molds for silver and goldsmithing or stainless-steel items. Then you need to name your business, create samples, produce high-quality photos and start developing marketing materials. Patricia Miller, owner of the Velvet Box in Flint, Mich., got hooked on the craft while helping a friend with her holiday jewelry orders. Miller launched her own business with small orders for bracelets, and then she began doing home shows. Later she created an online shop at Etsy.com, which makes it simple for crafters to display and sell handmade goods. "Ninety-eight percent of my business has come from repeat customers and word-of-mouth referrals," says Miller. Jewelry sellers also should look into setting up booths at craft fairs, flea markets and community events. Try partnering with local art galleries, hospitals and boutiques to sell higher-end pieces in your catalog. Don't forget to wear your own jewelry everywhere you go -- you are your best advertisement.

    7. Image Consultant

     
    Are you the person everyone stops and says, "Wow, you look great! Can you go shopping with me?" You are not just a trendsetter; you also may have the skills to be an image consultant or visual branding specialist. "Both women and men need to present their very best to the world. I help people reinvent and update their look," says Tracey Reed, who runs a Philadelphia image consulting firm, Tracey Evelyn Beautiful You. "I do everything from color analysis to make-up lessons and personal shopping." If you want to start a business as an image consultant, you need to have an understanding of color basics, textiles and clothing silhouettes. Reed, who has a master's degree in theater make-up and costume design, suggests taking courses in color theory and retail merchandising to sharpen your skills. She started out in the beauty business as a licensed aesthetician and later expanded her services to include wardrobe and image consulting. Potential clients include professional women too busy to shop, brides-to-be who want makeovers, and men who want to sharpen their images to get ahead at work. Having a personal network is key to building your initial clientele. Set up a blog to share style tips, and then use Facebook and other social media to attract new customers. You also can use your website to post special packages, share testimonials and feature before and after photos of clients. It could be your best sales tool.

    All of these are great businesses to start, but keep in mind that you still need a marketing plan and business plan to get your fledgling enterprise on track. Start with a free version of business plan software at enloop.com to get rolling and later invest in a business plan course at a small-business development center or local community college. Business plans help make sure your budget and costs are something you can measure as your new business grows.

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    Share Market Basics - Part II

     

    Financial Planning •

    Comprehensive Financial Planning is a professional service for clients who need objective assistance in organizing their corporate or personal financial affairs to more readily achieve their goals. It is also a systematic approach whereby the financial planner helps the customer to maximize his existing financial resources by utilizing financial tools to achieve his financial goals. Even though one of the most significant factors in our life is the state of our personal finances, we rarely spend time on managing them since unlike business, we are not accountable to any one for our personal financial goals and results. 


    Here are three basic questions that you will answer during financial planning:
    * Where are you today? What is your current financial situation?
    * Will you be able to get there? How do you plan to achieve your vision?
    * Where do you want to get to? What is your vision of your future financial situation?

    During the financial planning process you analyze what is your financial needs and goals are. In other words, financial planning is the process of meeting your life goals through proper management of your finances. Life goals can include buying a home, saving for your children’s education or planning for your retirement. It is a process that consists of specific steps that help you to take a big-picture look at where you are financially. Using these steps you can work out where you are now, what you may need in the future and what you must do to reach your goals. We can make a much larger contribution in every area of our life when our personal finances, investments and taxation are properly planned up. 

    Financial planning is simple mathematics. There are 3 major components :
    * Financial Resources (FR)
    * Financial Tools (FT)
    * Financial Goals (FG)



    When you want to maximize your existing financial resources by using various financial tools to achieve your financial goal, is financial planning.

    The Financial Planning process aims to establish a comprehensive plan to meet the client’s objectives. These steps are:
    o Gathering data
    o Establishing the client’s objectives, goals and aims
    o Recommending a plan of action
    o Processing and analyzing information
    o Implementing the plan when agreed and also reviewing the plan regularly

    Financial plans must be dynamic to reflect the changing socio-economic environment, as well as the stage of life that you are in. Yet, very few of us bother to review our financial situation as we move from one stage of life to another. A financial planner, is someone who uses the financial planning process to help you figure out how to meet your life goals. The planner can take a `big picture` view of your financial situation and make financial planning recommendations that are right for you. The planner can look at all of your needs including budgeting and saving, taxes, investments, insurance and retirement planning. he best time to review your financial situation is today! And you must do this as regularly as you can because your life is never static.

    Unless you start early, you might find that time has passed you by. You will get older, your children will have growing needs, your expenses will rise…..and, before you know it, you may be regretting but not planning the future. So go ahead, and plan your future now.

    Volatility in Share Market •

    Volatility in the stock market refers to changes in market value of stocks, more drastic the price change, more is said to be the volatility.

    Securities •

    Bonds and Stocks are generally called securities.

    Risk Management •

    Risk Management is a important term in stock market investing that has to be taken care of. It refers to the actions which are taken to prevent and protect against huge monetary losses in investments in the share market.

    Real Estate •

    Real Estates refer to land and other stuctures on it along with its rights and privileges like mineral rights or cultivation rights.

    Principal •

    The initial investment in a company excluding all interests or dividends, if any.

    Portfolio •

    A collection of all the stocks, bonds and cash held by an individual, a group or an institution.

    Open-End Fund •

    An open ended fund is a mutual fund which can be bought and sold at anytime after its been on the market without any limitations.

    Maturity •

    Maturity is the date on which a bond, an investment contract or a loan matures and is due to renewal or repayment.

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    Share Market Basics - Part I


    In order to know what stock is and the basic meaning of stock market first we have to dive into the history of stock market specifically , the history of what has come to be known as the corporation. Corporations in one form or another have been around ever since one guy convinced a few others to pool their resources for mutual benefit. In order for a corporation to do business, it needs to get some money from somewhere. A stock is a piece of ownership of a company. When a Company needs some money, which is helpful in growing business, they acquire extra money by selling ownership in small percentages in form of stocks. The word stock trading is commonly used to describe both the physical location for buying and selling (trading) stocks as well as the overall activity of the market. 


    The strategies you need to know to maximize your wealth and the pitfalls you need to avoid are not beyond comprehension. Even if you feel that you don’t have the time, and prefer to entrust your money to a portfolio manager or mutual fund, the least you need to know is which funds are better, how to choose your fund manager, and keep a tab on its performance. There are two analytical ways in investing in stock market, technical and fundamental analysis



    Technical analysis is based on prices and volume. Technical investors believe price and volume interpret every thing in the market. They study charts for forecasting of future stock price or financial price movements. For learning technical analysis academic knowledge isn’t required, with every level you can learn it.

    Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices.

    The newbie investor is advised to investigate some of these basic strategies and see for himself how they perform. Stock trading closely follows the economy of a country. When the economy is doing well, the market is bullish. Before investing in the stock market you must choose a stock broker. A stock broker is who performs the various transactions in financial instruments on a stock market as an agent of their clients. There are basically two ways to trade the stock market- using effective stock trading strategies or shooting in the barrel. There are numerous stock trading strategies. Of all of these, there are a couple of tried and trued methods that have worked well for investors over many years.

    So many people invest in these stock markets but only few percent of them can only make money. They make common mistakes and you should avoid them by high level of understanding by the information given.

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    Differences between stocks and mutual funds



    Mutual funds are diverse stock holdings which are managed on behalf of the investors who buy into the fund. Mutual funds allow investors to take advantage of a diversified portfolio without the need of investing a large sum of money.


    A diversified portfolio carries the advantage of offering protection against the rapid market losses of any particular stock. If stocks lose their value, the effect will be less if they belong to a portfolio that is spread across twenty stocks than if they belong to a portfolio that is consist of a single stock.



    Diversification is always a good idea in making investments. The problem for small investors is that usually don’t have enough funds to buy a variety of stocks. Despite their limited funds, small investors benefit from diversification through mutual funds.

    Mutual funds, aside from stocks, can be consisted of a variety of holdings that include bonds and money market instruments. Mutual funds are actually the companies and the investors are really the company share buyers. The shares in a mutual fund are either directly bought from the fund itself or indirectly bought from the brokers who represent the fund. Selling them back to the fund is a way of redeeming shares.



    There are some funds which are managed by investment professionals who decide on which securities to include in the fund. Non-managed funds are also available. Indexes, such as the Dow Jones Industrial Average, usually serve as the bases for the funds. The funds, which simply duplicate the holdings of the index where they are based on, rise by a percentage that is the same as that of the chosen index. Non-managed funds often perform well and they sometimes perform even better than managed funds.

    Mutual funds also carry some downsides. Aside from paying some fees no matter what the performance of the funds is, individual investors also have no say in which securities have to be included in the funds or not. In addition to this, the actual value of a mutual fund share is not as precise as that of the stocks on the stock market.



    For small investors, a mutual fund is still considered to be a better choice than either stocks or bonds because they offer the diversity that provides cushion against unpredictable stock market movements. They also provide a greater return than bonds. Mutual funds can also lose value especially in the short term. Short-term investors are better off with bonds that offer a set rate of return.

    The three main types of mutual funds are money market funds, bond funds, and stock funds. The type that offers the lowest risk, money market funds consist solely of high quality investments like those which are issued by the US government and blue chip corporations. Although they rarely lose money, money market funds also pay a low rate of return.

    The aim of bond funds to produce higher yields than money market funds caused them to carry a correspondingly higher risk. The risks that are associated with bonds, such as company bankruptcy and falling interest rates, are also applicable to bond funds.



    The types of funds that carry both the greatest potential for profitable investment and the greatest risk for losses are stock funds. The risk in stock funds is mostly for short-term mutual fund holders because stocks have traditionally outperformed other investment instruments in the long run.

    There are different types of stock funds including ‘growth funds’ that attempt to maximize capital gain and ‘income funds’ that concentrate on stocks that pay regular dividends.

    Those with limited funds or investment experiences are recommended to invest on mutual funds. When choosing the right fund, investors have to consider how much risk they are willing to take against their expected investment returns.

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    Things to know about stock markets


    “Stock market” is a term used to describe the physical location where the buying and selling of stocks take place as well as the overall activity of the market within a particular country. The correct term to be used in pertaining to the physical location for trading stocks is “stock exchange.” Every country may have a couple of different stock exchanges that are usually traded on only one exchange although a lot of large corporations may be listed in several different locations.


    The ubiquity of stock exchanges makes it possible to buy or sell stocks throughout the world. The only restriction to stock exchanges is time. Different exchanges may have differing opening hours based on their local times. The major stock exchanges in the world are the Tokyo Stock Exchange of Japan, the Bombay Stock Exchange of India, the London Stock Exchange of United Kingdom, the Frankfurt Stock Exchange of Germany, the SWX Swiss Exchange of Switzerland, the Shanghai Stock Exchange of China, and the New York Stock Exchange, the NASDAQ, and the AMEX of United States.



    The economic health of a country is closely followed by stock markets. Bull markets occur when a particular nation experiences high economic production, low unemployment level, and low inflation rates. Bear markets, on the other hand, follow the down trends in the economy. Such indicators of economic downfall are increased unemployment and inflation. These causes the fall of stock prices.

    Supply and demand, which are determined to a large extend by investor psychology, also influence the fluctuations in the prices of stocks. A rise in stocks may cause a lot of investors to jump into the bandwagon which later drives the price even faster. A falling price, on the other hand, can drive the same effect called short term fluctuations. After such runs, stock prices tend to normalize.



    Aside from the stock exchange, other popular markets that offer many investment opportunities include the Foreign Exchange Market (FOREX), the Futures Market, and the Options Market. The FOREX is the biggest investment market in the world, in terms of trades and values. The traders in a FOREX buy one currency against another and profit from small changes in the value. Most FOREX trades are entered and exited in a 24-hour span so traders have to keep a close watch on the market in order to make profitable trades.

    The futures market is a market of contracts where goods are bought and sold at specified prices and times. The desire of most buyers and sellers to lock in the prices of their goods for a future delivery despite the market conditions resulted to the existence of the futures market. The market conditions can make the actual futures contract to fluctuate considerably in value. Most of the investors in the futures market are mainly interested in the profit that can be realized in trading contracts and not in the actual goods.



    Another alternative market is the options market. The options market is quite similar to the futures market because it also features a contract that gives the right, and not the obligation, to trade a stock at a certain price before the specified date. These can be traded on their own or purchased as an insurance against price fluctuations within a specified time frame.

    The FOREX, the futures market, and the options market are all quite risky markets that require a considerable knowledge and experience to prevent any substantial loss. These also require a very close attention to the different market movements. As compared to the three, stocks are considered to be less risky because the movements of the market are usually gradual and although short term investment strategies are possible, a lot of people view stocks as long term investments.

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