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Lesson 10: Managing Growth We monitor
How do we manage Growth? Revenue
Work orders Small business owners must be ready to adapt Marketing campaigns to various situations, particularly when business Production is growing at a steady rate. Owners may Prioritizing company experience struggle to keep up with the demand of managing growth, but that’s not the only Companies with a customer challenge during a growth period. experience mindset drive revenue 4-8% higher than the rest of their Challenges we may encounter during the industries. growing period Companies that lead in customer experience outperform laggards by a. Demands of a growing workforce; nearly 80%. b. More diverse customer needs; 84% of companies that work to improve their customer experience c. Business intelligence requirements; report an increase in their revenue. d. Keeping the supply chain running; 96% of customers say customer service is important in their choice e. New competitors; of loyalty to a brand. f. New compliance responsibility; How do we measure customer g. Keeping the business culture intact. experience?
The growth stage of a business can differ a. Open communication;
greatly from starting a small business. Instead b. Using a voice-of-the-customer of focusing on customers and outside sources, system; you may need to start looking inward at processes to streamline production. It’s c. Surveys; important to understand how to handle growth d. Interpreting customer actions. management in business because upgrading your small business can be overwhelming. Hire great employees
Know the cause of growth Productive
Innovative -So we can implement reporting and analytics Dependable software solutions to address your business’s Trustworthy unique needs. How to attract great employees? -The data provided by analytics can help you find trends that lead to more informed Demonstrate a pleasant decisions and improved day-to-day operations. work culture Offer appealing benefits and perks Use modern technology Retain great employees Lesson 11: financial instrument and Provide career market efficiency development Increase compensation What is a financial instrument? Improve company culture 1. Financial instruments are assets that can be traded, or they can also be seen Automate recurring task as packages of capital that may be Responding to emails or sending traded. updates; 2. A financial instrument is a real or virtual Scheduling; document representing a legal Shipping and inventory management; agreement involving any kind of Analytics and website tracking; monetary value. Posting to social media. 3. Financial instruments are contracts for Use business review software that can assets that have a monetary value. enable you to be more conscious of and Examples of financial instruments responsive to your customer’s needs and expectation 1. Stocks Scheduling software 2. Mutual funds Social media management 3. Real Estate Investment Funds (REITs) 4. Bonds Find a mentor 5. Derivative contracts 6. Check certificates of deposits Someone who has experienced the 7. Bank deposits growing business situation. 8. Loans Gaining practical advice, Types of financial instruments encouragement, and support; Learning from others’ previous 1. Cash instruments- – the values of cash experiences; instruments are directly influenced and Becoming more empowered to determined by the markets. make decisions; Cash instruments may also be Seeing things from another point of deposits and loans agreed upon view; by borrowers and lenders. Achieving career goals. Ex. Checks –they transmit payment from one Prepare to adapt bank to another. For instance, assume you receive 2. Derivative instruments- the value and customer feedback that you characteristics of these financial shipments are taking too long. instruments are based on the vehicle’s use inventory management underlying components, such as assets, software to better understand interest rates, or indices. which products you have in stock. Types of financial Derivatives. FUTURE,FORWARD,OPTION AND change your shipping methods to SWAPS meet customer needs. -There can be over-the-counter (OTC) derivatives or exchange-traded Commodities derivatives derivatives. -They include futures, forwards, and options Advantages of derivatives contracts that use a commodity as the 1. Lock in prices underlying asset and, therefore are considered 2. Hedge against unfavorable movement as financial instruments. on rates 3. Mitigate risks Are insurance policies financial instruments?
Yes. They confer a claim and certain rights to
the policyholder and obligation to the insurer. 3. Foreign exchange instruments-are transactions that are concluded on the currency market. Lesson 12: Risk analysis and investment a. spot transactions-is a currency exchange decisions that takes place no later than the second business day after the transaction is concluded.
b. Outright forwards- currencies are
exchanged at a predetermined exchange rate and a point in time after the spot date.
c. Currency swaps-the money is
simultaneously lent in one currency and money of the same value in another currency.
Debt-based financial instruments
- Are essentially loans made by an investor
to the owner of the assets.
Short term debt-based financial instruments
last for one year or less.
Ex. Treasury bills, bank deposits certificates of
deposits
Equity-based financial instruments
- this represent ownership of an asset.
Example = stocks, mutual funds , EFTs
Are commodities financial instruments?
Commodities themselves are not financial
instruments because they do not typically meet ths definition of financial instruments.