In order to succeed in business, there’s a lot you have to get just right. Your idea, the market, and timing all come into play. There’s also a factor that many small business owners and entrepreneurs forget about until the very end: how to price their product or service. While deceptively easy, setting the right pricing strategy has the power to elevate your business into new markets, amplify your brand, and mitigate competition. Choosing the right pricing strategy may take some time, but requires three main elements.
First you must know your audience, the market, and your business. Understanding these three elements sets a solid foundation to select a pricing strategy that helps take your business to a new level. To get a full sense of your market, conduct thorough research. You should understand what your audience values most in products or services like yours, and what they will be comparing your product to. Being able to offer more value that is actually meaningful to your audience is essential to driving sales and a successful business. Finally, keeping an eye on your own costs and profit will help you maintain a healthy cash flow that will make the most of the funding you raise.
From this point, you can select a pricing strategy based on whether your market is oversaturated or sparse, or whether your audience expects cut-rate prices or prestigious branding. For more help on selecting the right pricing strategy for your business, check out this infographic below by Fundera.
The Ultimate Timeline For Your Financial Milestones
Whether you like it or not, the reality is that life and money are linked. Your financial goals and habits change as you go through the different stages of life. To achieve your financial goals at your expected time, you need to channel the right mindset and become aware of your pace as you go through life.
As you age, your financial priorities mature, as well. You need to set goals that align with your situation and biggest needs. Some of these goals are long-term, like saving up for retirement, while others are short-term, like setting aside your down payment for a home.
From starting a savings account in your 20s to building your retirement fund in your 30s, these milestones could be overwhelming to think about, especially if you passed by a few stages without good merits. However, don’t be discouraged. Wherever phase you are right now, assess where you financially stand and evaluate what you need to do to meet them.
Check out this visual graph that illustrates the financial milestones for every phase of your life. Make sure to go over your financial habits and get your priorities straight as early as now to deliberate on the right type of investment for your goals and to set yourself up for financial security.
Main Reasons People Avoid a Financial Plan
What are the main reasons people avoid a financial plan? (And why you really do need one)
Many of us dream about living a better life, leaving the daily grind behind and planning for more leisure pursuits and free time to enjoy ourselves. What a lot of us forget is, that to do it, you need to have a decent financial plan. It’s estimated that only 25% of adults have one in place, and there are lots of reasons why people simply don’t bother…but that needs to change.
Should You Hire A Professional Financial Planner In Your Twenties
Only 24% of millennials demonstrate basic knowledge of proper financial literacy and planning, according to a study by the National Endowment for Financial Education. Financial planning is a road map that is meant to help you achieve economic goals more efficiently and timely. A financial advisor uses your monetary data to create projections on when and how you can accomplish your goals. They base these estimations on your income, inflation patterns, expenditure, among other assumptions. So, should you, as a youth, seek the services of a professional financial planner?
Finding the right planner
Before you even begin, take time to write down what you want to accomplish both in the short and long term. When ready, ask for recommendations from friends and family members who have similar goals and seem to be progressing well. You may also seek professional direction from your local bank or brokerage firms. Associations such as the Financial Planning Association, FPA, and the National Association of Personal Finance Advisors, NAPFA could come in handy as well.
Remember, the idea is to hire a certified planner who understands you and your goals. Of course, getting such a professional comes with a price. Most fee-only planners will charge anything between $1000 and $2000 for a detailed plan. Investment advisors ask for a certain percentage; around 1% of your invested assets. Always ask your potential planner to provide a disclosure document (ADV) which has details on all fee patterns and potential conflicts.
Prepare for life milestones
Unless you start planning now, you will not wake up one day and afford to purchase a home, as noted by InvestedWallet. At the very least, you need to save up for a down payment, clear up your debt and build up your credit score. Similarly, you need to save funds for your children’s education lest you won’t have it when the time comes.
Though it may not make a lot of sense to plan in your 20s because of unclear goals, it is vital. Furthermore, your financial plan is changeable and can be reviewed at any time as your life unfolds. Some major life milestones include purchasing a home, starting a family, and retirement. If you make these goals realistic and commit to following your financial plan, you have an excellent chance to always be ready at each stage of life.
“Regardless of your age or net worth, financial planning is important,” says Jeanette Brox, a senior financial consultant in Toronto. Hiring a financial planner is one of the best decisions a millennial could make. A good planner will advise you on how much you need to save or invest, among many other benefits. Make sure to meet your planner at least once a year and when you reach significant life events so that you keep your plan current and reasonable.
Article by: Cassidy Franklin
70 Mergers & Acquisitions Bigger than the GDP of Small Countries
Revealed – Index of biggest mergers & acquisitions over the past five years
– Verizon’s merger with Vodafone was the most expensive at $130 billion and surpassed the GDP of 154 countries
– The Pharmaceutical Industry saw the highest profile deals with a $318 billion contribution
The potential for increasing market share, reducing competition and charging higher prices through monopolistic control are a commercial dream of all big mergers & acquisitions. However, not all mergers & acquisitions are created equal. While some achieve domination, others pale in comparison to their hefty price tags.
By indexing all seventy mergers & acquisitions and comparing their prices to the GDP of entire countries, online forex trading broker ForexTime (FXTM) have been able to gain a greater understand of the staggering financial involvement. Furthermore, by analyzing the stock prices prior and post completion we are able to postulate whether success is indicative of the price paid.
Out of all deals that had occurred over the past five years, the top ten alone equated to over $850 billion. The most expensive merger occurred in 2014 when Verizon bought out Verizon Wireless Stake from Vodafone. With a valuation of $130 billion, this surpasses the GDP of 154 different countries.
Amazon’s acquisition of Whole Foods was equivalent to the entire GDP of Nicaragua and exceeded over 82 different countries. Jeff Bezos’ strategic thinking ultimately paid its dividends and stock prices closed $986.80 higher than a year after the deal was completed. Alternatively, Google’s acquisition of the HTC Smartphone Team was met by skepticism on the London Stock Exchange and stock’s fell by $74.63.
All mergers & acquisitions are underpinned by employees. Hence, as a further variable we assessed total number of employees affected. Strategy and organization is critical in ensuring a smooth employee transition. If not executed properly there can be serious ramifications on employee harmony and profitability. Amazon’s acquisition of Whole Foods also saw them incorporate the largest workforce of 613,000.
More can be found out about the study and the accompanying index on FXTM’s dedicated webpage.
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