Collaboration Helps Your Home Business

Running a business from home can be extremely difficult. Many home businesses end up looking for help in some way, shape or form. However, collaboration with someone you trust could be the best help possible for your business and this help could be utilized before you actually need it. Collaboration has become one of the most commonly used tools for businesses in the United States. Just because you are working from home does not mean that you cannot utilize this current trend. Collaborative efforts are often created to carry out specific tasks or projects, or to help smaller-unknown businesses gain momentum within their communities. Consider how collaboration could help your business.

– More Informed Decisions With Collaboration From Others

Being informed is one of the most important parts of having a successful business. Collaboration can not only help people be more informed, but it also can allow for differing points of view to be brought to the table when making decisions ensuring that the business decision may be more successful in the long run. They can also make your business more effective with the work you are doing and keeping it focused on what customers actually want.

– Decision Types

Making decisions can be difficult in certain situations. However, if you consider what type of decision maker you are then making difficult decisions can become easier. The top two decisions types with collaboration: managerial and strategic. Managerial decisions often surround the utilization of resources. Collaboration is an invaluable tool for managerial decisions because having different perspectives will help the manager to make better decisions. Strategic decisions often involve solving organizational issues. While these are broken up in traditional businesses, an at-home business owner does it all. Collaborating with another business can help hone a business owners skills, hopefully for when their at-home business takes off and ends up as a major business with a lot of employees.

– Problem Solving

A problem is a perceived difference between what is and what ought to be. Because it is often based on people’s perception, a collaborative effort is usually the best way to fix any issues. Generally people who are trying to solve a problem will identify the problem, come up with possible solutions and then evaluate possible alternatives before implementing a solution to the problem. Collaboration is an effective tool during this process because it will help the business make more informed and effective decisions by gathering different ideas and perspectives for what will work best.

– Project Management Collaboration

Collaboration can also help with project management by making it easier for the team to carry out tasks and produce products. There are several ares of any project that can benefit from differing perspectives and ideas, but it can also help the manager become a more informed person and make better decisions in the long run.

Overall, collaboration can help your at-home business in a number of different ways. It helps you make informed decisions, consider differing perspectives, be aware of customer decision types, problem solve and be more effective at project management. For more tips, check out ——

Ways Business Location can Effect your Business

Owning and running a business out of your house can lead to some interesting issues that other business don’t have to deal with. One of those being business location. While finding a prime location is one of the top priorities for stationary businesses, this is not really possible for people who have decided to run a business out of the home they currently live in. Because of this, it is important to consider selling products and services at other places and not just out of your home. Consider these ways business location can effect your business.

– Business Location Feasibility of Access

The ideal business location for any business is a place where people can easily gain access to their products and services. For stationary business, this may mean opening a store on a main street. For a home business, this means making it easier for customers to purchase products and services by working with other people in your community. This could be anything from getting a boutique in town to sell some of your products at their counter, to setting up a table at the state fair or other events where merchants are invited to do business. While events may seem like a very interspersed way to sell products, it will dramatically increase sales for at least the time of the event.

– Knowledge of the Business and Best Business Location

One of the hardest things about having a home-run business is getting the word out about your business and what products or services you are offering. Having a business location gets a business name into the communities minds so that they see a store, remember the name and are able to associate what they can obtain from the store. Advertising your home business is a great way to get your name out there but so is offering products at other people’s stores. This way, people who are visiting the store can see your name while in the store being associated with the few products the store will offer to sell for you.

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Herfindahl Index | How To Determine Industry Concentration

Determining the degree of industry concentration helps to identify monopolized markets. This degree of industry concentration is a way to identify how much of the industry’s output can be accounted for by the biggest companies in that market. It is measured and identified using the ‘four-firm concentration ratio’ and the ‘Herfindahl Index‘. The ‘four-firm concentration ratio’ is a percentage and is calculated by dividing the output of the four largest companies in an industry by the total output of that industry. If the four largest companies account for a percentage of 40 or more, then the market is considered to be an oligopoly. If it is less than 40%, the industry is most likely monopolistically competitive. The Herfindahl Index is the total of the market shares (squared) of all of the companies within an industry.

Advantageous to use the Herfindahl Index

It may be most advantageous to use the ‘Herfindahl Index’ as there are some disadvantages to using the concentration ratio formula in order to identify some monopolized industries. The concentration ratio accounts for the Country in it’s entirety but local monopolies on a smaller scale can also exist. A market can be saturated within town, city or state limits as well. It can also be difficult to identify exact industry standards as interindustry competition could also be taking place. This is competition between two products that come from two totally different industries. This normally accounts for advances in technology, where there are new, more advanced items that are replacing commonly accepted products. There can also be import competition which is the competition from products that are foreign. The concentration ratio only account for industries located within the U.S, however, foreign competition is growing every day. The ‘Herfindahl Index’ helps to fix all of these problems because it is the sum of the squared percentage of the market shares of all companies within the industry.

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Top Ways to Turn a Potential Customer into a Loyal Customer

Gaining new customers and maintaining old customers while running a home business can often be a challenge. However, there are some simple ways to turn a potential customer into a loyal customer who will come back for products or services in the future. Consider these top ways to turn a potential customer into a loyal customer for your home business.

1. Be Courteous to a Potential Customer

In this digital age, it is important that communication be just as formal and courteous as it was for past businesses. When sending emails, remember to address who you are sending the email to and end with a salutation, you name, and contact information.

2. Be Prompt with a Potential Customer

Everyone wants to feel like they are special, and while this may be difficult to do from your home office, it is not impossible. One easy way to make people feel like they matter is to be prompt with your business dealings. If someone calls and leave a message, be sure to return their call within half a business day. If you receive and email, always reply even if it is just to say that you received their email and am working to find out an answer to their question or to address their issue.

3. Build Relationships with a Potential Customer

It may seem as though a customer is only coming to you for a product or service but remember that, more likely than not, they could buy the exact same product or service from another business in your town. People like to buy things from other people that they enjoy. Building business relationships with customers will increase the likelihood that they will return in the future.

More is…. Well, More…..

People always have a pre-conceived notion of what type of service they deserve and what prices they are willing to pay for a certain product. And they will always enjoy getting more than they expect or getting something that is better then they expected. Doing more does not mean that you have to break the bank. A simple thank you card sent to customers who purchase often is more than they will expect, help setting up a product is more than they expect and other acts of kindness can go a long way.

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Three Psychological Techniques to Increase Customer’s Memory of your Business

Starting a business from home can be difficult, especially when it comes to getting your business name or out there and remembered by potential customers. However, there are some things that are psychologically proven to help people remember certain things. Try these tips to increase customers memory of your business.

ColorsĀ and your Business Name

Colors are one of the easiest ways to get customers to remember your business, especially if you are having a business launch event. Certain colors, such as yellow, have an effect on the brain and can be easily remembered. This does not mean that you have to dump the color into everything you do (unless you want to), rather you just have to place it strategically. For example, if you are having a business party at your house and selling items, you could have yellow balloons at the end of your driveway and yellow center pieces around your house. While they may not remember the products, they will remember the business party they went to that had the yellow centerpieces.

Information Related to your Business Name

Studies have proven that people are more likely to remember information they are given, if the information is given in smaller, bite-sized chunks. It is estimated that a person handles 40 million pieces of information every day. Presenting information in smaller chunks will help the brain to really process the information and put it into your memory. Having a business name that is easily remembered or can be used for your domain name of your website can help.

Smells

It may sound weird but most people actually connect memories with the smells that were present at the time and then will remember details when they smell the same smell in other situations. This can be used to any businesses advantage by creating a smell that will attach to positive memories that customers will have with your business. This connection happens because smells activate the same centers of the brain as memory and also causes chemical releases in the brain that will enhance memory. For example, Hollister sprays its cologne throughout the store several times per day to ensure that people will remember the store and the times they had their.

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