Business Financial World

The bets business and finance articles

  • Business
  • Finance
  • Investing
  • About & Contact

Banking on Small Business and Finance

June 20, 2016 by Bizadmin

After years of receiving little unique attention from financial services providers, small businesses have emerged as the ‘sweet spot’ for the financial services industry. The size of the market alone makes it attractive – industry analysts estimate that there are more than 10 million small businesses in the United States, with the number growing at a rate of about 5 percent annually. In addition, small businesses generate more than $200 billion in financial services revenue per year and can be up to 10 times more profitable than the average consumer.

Unfortunately, when banks attempt to meet the unique banking needs of its entire customer base, most small businesses fall through the cracks. These businesses require services and products that differ from the online retail services traditionally offered to consumers. But as economic conditions continue to drive down interest rates and produce smaller spreads, banks are being pressured to find new ways to generate revenue, and the lucrative small business segment is finally getting the attention it deserves. But serving this market, one that is ripe and ready for financial services, will take a dedicated and centralized strategy that looks at all products and delivery channels.

bankingThe Financial Services Industry Council (FSIC) recently surveyed executives at several banks regarding their strategies for serving small business customers. While these banks report widely varying strategies for targeting small business customers, all of them see the significant bottom line benefits. In fact, many of the banks that were surveyed said that small businesses will account for as much as 30 percent of their total bank revenues this year.

However, for all the attention on the small business market, most banks are only scratching the surface of the potential this group represents. Small businesses are diverse with varying financial services needs depending on a company’s size, industry and other company dynamics. Winners in this arena will be the banks that develop a deep understanding of their small business customers and work hard to develop the entire relationship, from the business banking to the personal banking needs of the business owner, as well as the small businesses’ employees.

Segmentation opportunities

Until recently, it has not been feasible for banks to implement a true market segmentation strategy with their customer base, let alone address the specific needs of their small business clients. Siloed channels and disparate data sources have hindered banks’ ability to see their full relationships with their customers. And customers’ perception of banks had been eroded by irrelevant, repetitive offerings and inconsistent experiences across various channels and with every interaction with their bank.

The ability to cost-effectively create customized products and pricing strategies for unique segments within their customer base seems impossible, because many banks don’t have a single view of their customers across business and personal banking needs, much less understand their channel preferences. In fact, a study conducted by Forrester Research indicated that 68 percent of the banks don’t know which channels customers use. And even if they do understand their customers’ needs and preferences, the cost of customizing products for distinct market segments – and then rolling them out across all channels – can be staggering

Investing in Various Types of Real Estate Securities

May 22, 2016 by Bizadmin

If you invest in real estate which you are directly involved in the ownership and property management. If you earn income from the property are single family homes, office buildings, shopping centers, etc. They have to manage all matters relating to such property. Instead of earning money by viewing such as anger you a better way to reap good returns by investing in real estate securities. Real Estate Securities, you can indirectly in real estate, a huge opportunity to invest in high yields. The following types of properties are worth investing in securities:

realty

Real Estate Mutual Funds

For a new property fund investors mutual funds are also a good option. This professional fund management portfolio offers low overall risk. Real estate mutual funds in REITs in the first place, which in turn are linked to investment investments in a variety of commercial and residential properties. They are not spared, however, if you have to pay management fees and other costs of fund management. But for the high yield funds these costs appear to be minimal. If the economy slows dramatically in REITs can strike and affect your portfolio to some extent.

Real Estate Limited Partnerships

limited partnerships, investors can invest without going into more responsibility than what was invested. However, investors, called limited partners are tax benefits on the total value of the property. The administration is centrally managed by the general partner. The proportion of funds in the projects by the owners and building owners who use these funds to be invested for their projects. Once the partnership is established, the general partner is responsible for daily operational decisions. If the General Partner Partnership Agreement default or neglect, the sponsors to take drastic measures against them.

High Yield Private Mortgage

The private mortgage notes are securities with high yields. They produce from the estate of real income. They can be used by you for the purchase or renovation of commercial and residential properties. You can even 12% to 14% on the first trust deed to make up positions and about 15% to 18% on the second position of trust deed. The advantage is that the loans in about three weeks or less time, which also requires more time for commercial mortgages in the vicinity. The investment is almost certainly the lending decision on the existing property is based. If the note to generate enough interest and full ownership provides security on the note other factors such as credit history does not matter. The underwriting criteria are available are different in relation to institutional donors, allowing investors in these notes, to get higher returns with less risk.

These different types of securities of REITs a good investment with a lower risk. However, they have asked for better management of higher yields

Pricing Strategies in Accounting for Business Sector

May 22, 2016 by Bizadmin

Price is one of the key strategic challenges faced by any business, whether they be large or small. Finally, setting the right price for your product is one of the most important factor that will determine whether your business makes a profit or loss. Different pricing strategies available to businesses can be divided into two main categories. Categories are:

1. High Pricing Strategy
2. Low Pricing Strategy

We can see these strategies in more detail below.

High pricing strategy

The following types of pricing strategies fall under this heading:

Creaming or skimming: This type of strategy involves the sale of products with high prices and earn maximum profits before competitors make entrance into the market. This strategy is often used for new products are innovative and have a patent protection on them for a certain period.

Premium Pricing: This strategy takes advantage of customers’ general tendency to see low price products on the market that you choose a lower quality. This involves the practice of pricing your products is higher than your competitors, but offer high quality products. This strategy is used to increase the market reputation of the products you offer to customers. This is a strategy commonly used in fashion and perfume industry where people are ready to pay much higher prices for what they perceive as quality products is greater. In this sense tend to be suitable for products which have a strong brand name behind them.

Low Pricing Strategy

low price strategy used is as follows:

pricesPrice Promotion: these tend to be short-term pricing strategy adopted by a business where product price is reduced for the period until the product gains popularity. One of the main goals when using this strategy is to gain increased market share.

Penetration Pricing: This is the entry level pricing strategy whereby the price of the product or service is set very low to weaken all the competitors and gain a foothold in the market.

Loss Leader: This is one of the most intelligent, but very popular, the price of the strategy used by businesses. This involves selling a popular product with very low prices, usually with a par value below what it cost to produce. Once a customer has obtained this ‘loss leader product’ they then offer the other products of the same business that would make a good profit, thus eliminating the loss of the original. Offer a product that truly lost a leader a platform to acquire customers more quickly and then tried to up-sell to them.

A few other factors to consider before deciding how to price your product or service is:

1. Conducting market analysis and develop what kind would be no demand for your product or service.
2. Conducting a thorough cost of the product or service you offer, and look at the breakeven point.
3. Consider other external factors such as legal constraints.
4. Determining your primary purposes such as stock market prices more or exclusivity, etc.

Follow @businessfinan

Featured Posts

Blockchain and How Cryptocurrency Began

The idea of a crypto currency developed first in science-fiction scenarios and particularly the end of the 20th century in the literature developed Cyberpunk. In it were described worlds in which individuals largely resolved in a virtual space and paid in this with a purely digital currency. Since then things have moved on a lot […]

Mortgage Stories
Bankrate.com
Read current mortgage rates and home loan stories.

Recent Posts

  • Blockchain and How Cryptocurrency Began
  • Things To Look For In a Broker When Trading in Forex
  • Key Factors Affecting Pricing

Copyright © 2018 · Magazine Pro Theme on Genesis Framework · WordPress · Log in