Connect with us

How To

Mistakes Entrepreneurs Should Avoid Making

Avatar

Published

on

Mistakes Entrepreneurs Should Avoid Making, mistakes entrepreneurs, General Mistake Made by Entrepreneurship,Entrepreneurs Mistakes to avoid, biggest mistake every Entrepreneur should avoid,Common Mistakes that Entrepreneurs Should Avoid, 5 Mistakes Entrepreneurs should avoid In 2019,Startup Stories


They say practice makes a man perfect and the more mistakes you make, the more you learn.  However, when it comes to being an entrepreneur and running your own business, there are certain mistakes you can make which could otherwise be easily avoided. Check out these mistakes entrepreneurs usually do but can actually avoid making:

1. Only talking and not acting

One of the major mistakes entrepreneurs make is, they only talk about the grand plans they have.  While talking is enough to get your team together, it is not enough to run your business. For example, if you tell your team while hiring them that they are going to get a certain salary by the end of the first three months but don’t see the promise through even six months later, you have failed to keep your word.  Not only does this leave behind a disgruntled team, it also results in your employees losing their confidence in you as a leader. To avoid this, make sure you don’t over promise and when you say something, you always see it through.

2. Multitasking

While doing nothing can be a bane, doing too many things at the same time can be just as much of a problem.  Figure out the skills which set you apart from the crowd and focus on your niche areas and work on building them.  Another disadvantage of trying to do too many things at the same time is, your chances of burning out increase. Focus on your skill set, do those things at which you are great and outsource individuals with skills at which you aren’t good.

3. Hiring the wrong type of people

When you start a new business, you may end up hiring people quickly without doing a background check because you need them.  While these people have great skill sets on paper, you start realising very soon they are all talk and no great value. What usually goes wrong when you are hiring people is, you don’t look at the overall development of the individual but look at only individual parts.  Hire people by getting a clear understanding of their strengths and weaknesses. Give them challenges you think they might encounter while working for you and test them as to how they plan to overcome the said challenges. By doing this, you not only understand how they work as an individual, but understand how they work with other people as well!

4. Expanding too soon

Another mistake entrepreneurs should avoid making is expanding their business too quickly.  It is common to think just because one part of your idea is doing well, everything else will as well.  However, what people don’t realise is, when you expand too soon, the chances of your business failing are much higher.  Don’t push yourself to expand till you are absolutely sure of where you are going.  Have your plan in place, have your nest egg in order and only when you are sure the expansion will boost your business and not lead to losses, expand!

5. Not believing in yourself

Another extremely common mistake most entrepreneurs make is to not believe in themselves. While it may feel like a good thing to constantly ask for advice and get opinions about what you should do in life, it really doesn’t take you far. Why not? Because it makes you second guess yourself and lose faith in your ideas. To avoid this, start with having trust in your company and brand and once you make other people realise how passionate you are, the rest will just follow.

They say people learn from their mistakes, but if you avoid these, then you leave room to grow better, bigger and faster.  If you think we missed mentioning any other mistakes entrepreneurs can avoid, comment and let us know!

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Articles

How Do IPL Franchises Make Money

Avatar

Published

on

How Do IPL Franchises Make Money

If there is one thing that every Indian and every cricket fan waits for all year, it is the Indian Premier League, which is the world’s biggest cricketing league.  Professional cricket players from all over the world vie to get selected by one of the eight franchises which compete in the league.  The entire league is a star studded affair and Indians manage to forget their differences and band together for all the time the league is aired.  Each franchise boasts of a loyal fan following who have supported their teams through thick and thin ever since IPL was inaugurated in 2008.  While the entire league is a melting pot of entertainment and competition, have you ever wondered how the franchises make money in IPL?  In this article we will decode the business models behind the IPL teams and how they earn money.

Franchises need to bid for players every year before the start of the IPL season in an auction.  Each franchise has a maximum spend limit of Rs. 80 crores to buy players in the auction.  Apart from buying players each franchise also needs to bear the cost of travel, support staff and logistics.  The following are the different avenues from which franchises earn money.

1) Sponsorships

Franchises earn a major chunk of their revenue from sponsorships, but they do not get the money from sponsorships directly.  The IPL governing council gets money from sponsors and in the case of this year it is from Dream 11, which is the title sponsor while VIVO was the title sponsor last year.  All the money which is earned from sponsorships is divided into a ratio of 60:40 with the Board of Control for Cricket in India (BCCI) retaining 40% of the sponsorships.  The remaining 60% is distributed among the ten franchises.  BCCI owns and operates the IPL in India.  The ratio of distribution might change in the coming years depending on the decisions taken by the BCCI.

2)  Media rights

Broadcasting companies bid for the media rights and the winning bid will get to air the IPL on their channel.  Star India bagged the media rights for IPL with a bid of Rs. 16,345 crores for five years (2018-2022.)  The money from media rights are also distributed in the 60:40 ratio with BCCI keeping 40% and the franchises getting an equal distribution from the remaining 60%.

3) Franchise sponsors

Each franchise has its own dedicated sponsors which pay a huge amount of money to the franchise.  The logos and names of the companies which you can see on the sporting attire of every IPL team are actually the dedicated sponsors of their respective franchises.  The profit from dedicated sponsors depends on the deal the franchise has made with their sponsor. The income generated from dedicated sponsors might differ from team to team.

ALSO READ: 5 Cricketers Who Are Entrepreneurs

4) Sale of tickets

Each franchise can choose a home ground from the available venues in the BCCI roster like Sunrisers Hyderabad, choosing Hyderabad and Kolkata Knight Riders choosing Kolkata.  Only the home franchise can fix the price of tickets for the matches happening in their home ground.  Bigger stadiums with large seating capacity earn the most from ticket sales.  Kolkata Knight Riders home ground Eden Gardens has the highest seating capacity in India and therefore KKR earns the most from ticket sales.  

5) Merchandising

Each franchise makes some money by selling official jerseys, caps, wrist watches, souvenirs etcetera.  The merchandise is sold through the official franchise websites.

6) Prize money

Franchises battle it out in a long season to become the winner of the IPL season.  The winning team also wins a hefty prize money which is an additional source of revenue.  In 2019, the winning franchise won Rs. 15 crores while the runner up won Rs. 10 crores.

IPL is a big stage for franchise owners to earn their revenues as well as the perfect opportunity for players to make their mark and win big auctions.  This is how franchises earn their revenues from the IPL.  As this year’s edition is off to a flying start, IPL has been a blessing in disguise for millions of Indians in the gloomy times we currently are experiencing.  

 

Continue Reading

How To

How To Generate More Sales On Social Media

Avatar

Published

on

How To Generate More Sales On Social Media

If you are a frequent Instagram user, there is a high likelihood of stumbling upon a business ad which interests you.  There are also high chances of you making a purchase from a business whose ad you might have seen on Instagram.  As the social media penetration into our daily routine gets deeper each day, businesses are realising the opportunity to sell their products on social media platforms like Instagram, Facebook, Twitter and Snapchat to name a few.  In the current day and age social media is one of the top avenues to generate solid sales and also gives a good return on investment.  However, figuring out a good approach for a business does not come easy and requires some time and effort to figure out how a social media platform works.  In this article, we explain some simple techniques to generate more sales on social media. A good organisation which has a proven track record in this arena is Whacked Out Media based out of Hyderabad.

1) Understand where the target audience is:

It is very important to understand what social media platform your target audience uses.  If your target audience prefers to use Instagram over Facebook, then it makes sense your ads should be running on Instagram.  The easiest way to find out where your target audience is is by identifying the right hashtags which are relevant to your product or business and find out where it is being used.  Once a business understands where their target audience is, it will be much easier to drive online sales.  Online streaming platforms like Netflix and Amazon prime Video are known to promote their content on platforms like Instagram and Facebook in order to gain new subscriptions. 

2) Working with influencers

Influencer marketing is a form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field.  Influencers have a very high chance of generating sales on social media for your business.  Having an influencer tell a unique story about your brand or product, having influencers give honest reviews about your product or something as simple as an influencer promoting a unique discount code can drive sales effectively.  Noted South Indian actress Samantha Akkineni is known to partner with organic food businesses to promote their products.

3) Turn customers into brand advocates

When you make a sale on social media, it is ideal to request the customer to post reviews of your product or service should they like their purchase.  This will turn your customers into brand ambassadors and at the same time generate more organic sales.  It will be helpful if you can provide relevant hashtags to be used so as to accurately identify leads.  Take the case of mobile phone manufacturer OnePlus, which regularly posts or shares their customer photos and product reviews on their social media platforms.  OnePlus believes in storytelling through customer testimonials and customer content.  #NeverSettle is the hashtag which is most commonly used by the OnePlus brand to identify content relevant to them.

ALSO READ: How To Increase Online Sales Of A Business

4) Share customer generated content

More often than not, if a customer is satisfied with their purchase they will post it on their social media accounts.  For a business, identifying these posts and sharing the customer generated content on their own social media accounts will improve the authenticity of their products.  Prospective customers visiting your social media page can see honest customer reviews which will in turn bolster chances of a sale.  This is also an easy way to increase loyalty with your existing customers, and to add credibility to your brand whenever potential customers visit your social media profiles.

5) Creating content around products/inventory

It is highly recommended to create content around the products which are being sold on social media accounts.  For example, if you are a clothing brand, it will be helpful for customers/leads if they see content on how to mix and match various dresses, or what dresses can be worn in spring or summer.  This establishes a broader context for your brand and will also boost engagement with prospective customers.  This kind of content will also provide a reason for customers to buy your products.

There is no hard and fast way to figure out social media sales and each business should take the plunge themselves to figure out the best approach for themselves.  However, the above mentioned tips will definitely help the chances of success in getting sales.  Alternatively there are plenty of organizations which provide consulting services to businesses in order to help them with digital marketing and sales.  

 

Continue Reading

Articles

How Does WhatsApp Generate Revenue

Avatar

Published

on

How Does WhatsApp Generate Revenue

If you own a smartphone, there is a very high chance that you are a WhatsApp user.  The simple and lightweight online messaging application has embedded itself into our lives and has become indispensable.  Family groups, friend groups, office groups, play groups and many other groups like these see millions of conversations happening on a daily basis.  But have you ever wondered how this leading online messaging application makes its money?  There are no ads on WhatsApp and if that is the case from where does Whatsapp generate its revenue?

The answer to the question goes back to the beginning of WhatsApp which was founded by Brain Acton and Jan Koum, both of whom were ex- Yahoo employees.  When Whatsapp was first developed and deployed for public use it became an instant hit with users but the founders quickly realised they required data centers to handle the huge volumes of data from the user conversations to keep WhatsApp running.  So, they set a price of $1 for some countries and for some other countries it was free for the first year but charged $1 for renewal from the second year onwards.  In short this was a subscription model and Whatsapp had 700 million users at the peak of this model which meant it was generating 700 million dollars in revenue.

Facebook ended up purchasing WhatsApp in 2014 for $ 19 billion but one of the founders Jan Koum decided to leave WhatsApp because of a disagreement with Facebook over its use of user data and its desire to allow advertisements on WhatsApp.  Both the founders were vocal supporters of user data privacy.  As of 2020, WhatsApp has over 2 billion users, the second largest user database after Facebook.

ALSO READ: 4 Useful And New WhatsApp Features That Released During The COVID-19 Lockdown 

But How is Whatsapp generating its revenue now since there are still no ads on display in the mobile app.  In a 2016 blogpost WhatsApp said “Starting this year, we will test tools that allow you to use WhatsApp to communicate with businesses and organizations that you want to hear from.  The goal is to have people communicate directly with their banks, airlines, etc. over the app, while the businesses pick up the bill previously paid through subscriptions.”  Facebook also uses the data from the user messages in WhatsApp to increase the reach of its ads on Facebook.  However, a user has the ability to turn off the settings which allow Whatsapp to share the data with Facebook.  According to a Forbes estimate, WhatsApp is generating a revenue of $ 5 billion at an average revenue of $4 per user.

Facebook is benefiting from Whatsapp by generating a huge wealth of consumer behavior data which inturn is being used to improve the ads on Facebook.  WhatsApp has a growing revenue stream because of the new users it keeps adding to its database and still has a lot of room to grow.

Continue Reading
Advertisement

Recent Posts

Advertisement