Incorporated Business


When you incorporate, your business becomes its own separate legal entity. The business consists of shareholders who purchase shares in the business and who are responsible for its operation. You can incorporate a one-owner business and own all the shares of that company. The company has a president, and if more than one person is involved, a secretary-treasurer and directors. Stricter control can be maintained with a board of directors, who can make decisions. Outrageous suggestions by one person can be blocked if company policy stipulates that any significant changes must be approved by the board.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Flexibility


Perhaps the biggest difference between an individual businessperson and a large corporation is in the degree of flexibility each possesses. Here the balance tips in favor of the small business. Because it hasn’t indoctrinated numerous level of management and a gigantic sales organization in the tactics and strategies of its marketing plan, it can make changes on the spot. It can be fast on its feet and can react to make changes, competitive ploys, economic realities, new media, newsworthy events, and last minute offers.

Like the furry quick mammal, you’ve got the flexibility, the speed, the disregard of image, that enables you to use radio commercials and also hire high school students to hand out printed circulars on street corners. You don’t have a body of rules to follow, a committee to answer to, a set structure to follow. You are the organization. You answer to yourself. You make the rules and you break the rules. And that means you get to be amazing, outrageous, surprising, unpredictable, brilliant, and quick.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Delighting the Customer


Companies need to delight customers to gain a competitive edge. The delight is referred to as a profoundly positive emotional state that results from having  one’s expectations exceeded to a surprising degree. The type of service that results in delight is “positively outrageous service”—that which is unexpected, random, extraordinary, and disproportionately positive.

A way that managers can conceive of delight I to consider product and service features in terms of concentric rings. The innermost bull’s eye refers to attributes that are central to the basic function of the product or service, called musts. Their provision isn’t particularly noticeable, but their absence would be. Around the musts is a ring called satisfiers: features that have the potential to further satisfaction beyond the basic function of the product. At the next and final outer level are delights, product features that are unexpected and surprisingly enjoyable. These are things that consumers would not expect to find and are therefore highly surprised and sometimes excited when they receive them. For example, in your classes the musts consist of professors, rooms, syllabus, and class meetings. Satisfiers might include professors who are entertaining and friendly, interesting lectures, and good audio-visual aids. A delight might include a free textbook for students signing up for the course.

Delighting customers may seem like a good idea, but this level of service provision comes with extra effort and cost to the firm. Therefore the benefits of providing delight must be weighed. Among the considerations are the staying power and competitive implications of delight.

Staying power involves the question of how long a company can expect an experience of delight to maintain the customer’s attention. If it is fleeting and the customer forgets it immediately, it may not be worth the cost. Alternatively, if the customer remembers the delight and adjusts her level of expectation upward accordingly, it will cost the company more just to satisfy, effectively raising the bar for the future. Delighting customers does in fact raise expectations and make it more difficult for a company to satisfy customers in the future.

The competitive implication of delight relates to its impact on expectations of other firms in the same industry.if a competitor in the same industry is unable to copy the delight strategy, it will be disadvantaged by the consumer’s increased expectations. If you were offered that free textbook in one of your classes, you might then expect to receive one in each of your classes. Those classes not offering the free textbook might not have high enrollment levels compared to the delighting class. If a competitor can easily copy the delight strategy, however, neither firm benefits (although the consumer does), and all firm may be hurt because their cost increase and profit erode. The implication is that if companies choose to delight, they should do so in areas that cannot be copied by other firms.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Why I wouldn’t buy from me


Part of knowing your product is knowing all the reasons someone might not want to buy it. Anticipate the reasons. State them clearly in your mind, spell them out on paper if necessary—and have an answer ready for each of them.

 

A good portion of almost any sales effort is spent overcoming objections. Don’t try to convince a buyer that his objections aren’t valid. Concentrate instead on altering his frame of reference.

 

In anticipating and overcoming objections a salesman has to practice a kind of theory of relativity. He has to ask himself, “Compared to what?” Think about a major purchase you have made—buying a house, for instance—and the mental gyrations you went through to get there. At some point you were making comparisons. Compared to another house that interested you, but in a slightly less desirable neighborhood, it seemed expensive. Compared to what you could have bought it for ten years ago, it seemed outrageous. But compared to its resale value, compared to what someone else might have been ready to offer, compared to what you deserve, you were able to justify the price.

 

In licensing the name of an athlete, I know the two objections we are most likely to encounter are the price—the size of the guarantees—and the athlete’s lack of availability to the licensors.

 

By helping the buyer see a different frame of reference, by altering his perceptions, we are able to finalize a licensee deal that has resulted in the company’s most successful line of apparel and in several million dollars of income to our client.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Advice to Entrepreneurs


Whether it is the best of economic times or the worst, being an outrageous consumer debt is fundamentally a foolish way to live. If you have that problem start making amends. Go on a money diet. Study your spending habits to see where you waste money. Is it eating out? Ordering in? Impulsive buying? Talking on the telephone? Too many ritual splurges? Take the money you would otherwise fritter away and apply it to your credit cards—one outstanding balance at a time. Of course, you don’t want to penny-pinch yourself into a state of low-grade misery, but you do want to get into the habit of living lean. Consider it a preset for the lifestyle you may need to adopt in the early stages of your business.

Reducing your debt serves several purposes: 1) starting a business is anxiety-producing and debt-incurring enough without beginning it with a lot of extra-business bills; 2) the closer to zero your charge card balances are, the more available credit you’ll have for business purchases and cash advances; 3) should you need a bank loan to capitalize your venture your prospects will be all the better.

If you don’t have a lot of credit card debt but are presently paying off a small loan (personal, educational, home equity) that is open-ended, go on the same diet and get rid of it. That is, beef up your payments against the principal of the loan in order to pay it off ahead of schedule and save yourself some interest payments in bargain.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight