Differences between data warehousing and business intelligence

The primary differences between data warehousing and business intelligence are in function and design. Data warehousing refers to the process, mechanism and infrastructure utilized in the preservation of digital information. Business intelligence on the other hand, is the use and analysis of information, some of which may be obtained via data warehousing. This information is used for the decision making pertaining to the operation of a business.

The State of North Dakota describes business intelligence thoroughly in its 'Business Intelligence Report'. Specifically, the white paper describes business intelligence in terms of technology and infrastructure such as data mining information held within a data warehouse and using the appropriate software to perform data analytics. This helps in designing business models that have basis in logical, mathematical and qualitative assessment of business data.

Data warehousing can be thought of as a component of business intelligence that has wider scope. However, without adequate data warehousing, effective business intelligence may have little to draw valid conclusions from and therefore lead to faulty decision making. Thus, data warehousing ideally possesses qualities such as strong organization, easy access, time sensitivity and relevance. Since data warehousing takes physical space used by hardware storage,  practically making use of space, and equipment to store sufficient data also involves prudent determination.

The objectives of data warehousing and business intelligence further delineate differences between the two. For example, business intelligence attempts to define, assess, observe, forecast and calculate for the benefit of a business; this is usually or ultimately financial in nature by design and function of a business. The corresponding function of data warehousing is to serve the interest of business intelligence and other business data storage needs.

Further differences between data warehousing and business intelligence include variation in software applications, employee tasks, cost and hardware needs. For example, an information technology (IT) professional familiar with magnetic, optical and solid  storage devices would more likely be involved with data warehousing than an executive marketing manager seeking to make use of marketing research to implement a new product launch.

The service industry itself is differentiated in such a way as to distinguish between data warehousing and business intelligence. This is because managerial science and information technology become specialized and require specific knowledge in data warehousing and business intelligence.

Differences arising out of, and between data warehousing and business intelligence may also have the potential to lead to professional entry barriers or differences in approach to a business operation.  To illustrate, an IT professional may install and program a data warehouse to store information with maximum capacity in mind, whereas a professional focusing on business intelligence may emphasize strategic use of information instead.

Sources:

1. http://bit.ly/eABq8x (North Dakota: Business Intelligence)
2. http://bit.ly/2ryqwS  (Internet Journal)
3. http://bit.ly/gtLrDV  (National Security Agency)

Taxes and Deductions for Business Office Equipment

Depending on how long business office equipment will last and its total value, equipment tax deductions can be taken via partial or full expensing or by depreciating asset worth. Although these deductions do not typically eliminate all taxes, they can help businesses lower total taxes due.

Complete article link: http://smallbusiness.chron.com/taxes-office-equipment-22278.html

Are martini glass logos a good idea?

Corporate logos on martini glasses are a form of advertising ideally backed by strong marketing and marketing research. This article will discuss the corporate logo on Martini glasses in terms of 1) target demographic, 2) logo objective and 3) product branding. The decision to utilize corporate logos may first be carried out in a sample population such as a city or town prior to expanding the campaign, and after researching the feasibility, and affect the martini glass logo advertising campaign has. The reason for testing the advertising on a smaller group is to validate the statistical, quantitative and/or qualitative market research.

 Image source: 'Kyle May', CC BY SA-2.0

The martini drinker: What demographics is the logo aimed at

The objective of utilizing martini glasses with brand names should conform with marketing and corporate goals. For example, increased sales of a product, higher product exposure, creation of brand image etc. Since martini glasses are quite specific in usage, location of use and demographic, the product should be aimed at those consumers most likely to drink martinis. Some attributes of martini drinkers are the following:

• Pro-alcohol

• Over 21 years old

• Worldly or informed

• Drinkers of Gin or Vodka

• Partial to complimentary products ex. Napkins

These are just a few common aspects that may apply to martini drinkers that illustrate who corporate logos on martini glasses would appeal to. Moreover, just are the persons more likely to drink martinis, there are also those who are less likely to drink martinis such as the following:

• Children

• Non-drinkers 

• Religious Muslims

• Health advocates

Thus the corporate logo on martini glasses targets martini drinkers who tend to fit into a specific demographic grouping. This helps eliminate the range of products less likely to benefit from martini glass logos and assists in clarifying the objective of the logo. The objective of the logo should not only conform to the identified target market but also influence or appeal to that group. Otherwise, the target market has been identified but advertised to incorrectly.

The logo: Defining the objective of the martini glass

The objective of a martini glass logo is obviously advertising and marketing, and perhaps less obviously to indicate the type of glass, country of origin and other manufacturing information. Generally however, the objective is creating brand awareness. Determining how best to generate brand awareness involves 1) analyzing the market 2) weighing pros and cons and 3) implementation of the advertising campaign. These factors should ideally be considered prior to distribution of martini glasses. Some possible objectives to consider when utilizing logos on martini glasses are listed below:

• Affect on revenue

• Congruence with corporate branding as a whole

• Increases in brand loyalty

• Improved consumer awareness

• Positive cost/benefit proportions and profit margin

• Enhanced product perception

After analyzing the market, and performing a SWOT analysis it should become more clear to a company's marketing team how useful a logo on martini glasses is likely to be. Moreover, research should be aimed at measuring the liklihood of the above objectives being achieved. The research may involve product testing, consumer surveys, branding cost comparisons, production and logistical feasibility studies and so forth. If the it becomes evident that the corporate objectives, applicable time horizon and/or strategic objectives of a company can benefit from the martini glass logos, it may be worth while to implement a campaign that includes the glasses.

Product branding: How martini glass logos affect the product

The martini glass may be branded in a number of ways and the martini glass itself doesn't necessarily have to have a logo on it. If a company is giving away free glasses to promote itself then a logo may not be needed. Moreover, if a business is promoting an event or providing financing of an event, then the martini glasses along with martinis itself be advertising enough. Some companies that might benefit from use of martini glasses and or logos on martini glasses are the following because they are more likely to appeal to the aforementioned demographic.

• Alcohol producers

• Bars and hospitality venues

• Event marketers

• Corporate sponsors

• Artists, artisans, or glass blowers

• Martini glass distributors

The above list is not necessarily exhaustive of who might benefit from corporate logos on martini glasses but is indicative of the most obvious of beneficiaries. To go beyond these types of companies could involve more marketing risk and hence necessitate more market research that costs money. This is not to say a whole new way of bringing a somewhat un-marketed product to the forefront of a new marketing campaign isn't possible. For example, consider the image of the martini itself. A cocktail among many it has acquired a reputation through history and film. Without that type of branding, the martini might very well have no significant pre-existing brand value at all.

In other words, martinis themselves were branded long ago and add value to any branding on top of the martini's existing brand equity. How the martini is portrayed, its brand image and when it is used can all influence the affect of the martini glass logo. Consequently, putting a corporate logo on a Martini glass would ideally be considered not just in terms of appearance but also context. Other factors relevant to and surrounding the martini glass' logo include a number of aesthetic features.

• Glass shape

• Color and size of the martini glass

• Style and thickness of the glass

• Setting in which the glass is used ex. Art exhibit

• Sponsorship of the event in which martini is used

• Free distribution of the glasses

Summary

Martini glass logos are a form of advertising that may or may not be conducive to a particular company's marketing objectives and brand image. Specific demographic groups are more likely to be influenced and/or persuaded by martini glass logos than others. The objectives of martini glass logos should be clearly defined and identified prior to ascertaining the forecasted benefits of their use. 

These possible benefits can be determined through market research. Market research in tandem with corporate strategy an goals can help establish feasibility, parameters, features and distribution of the martini logos in concept before implementation of the actual advertising campaign, thus reducing possible risk to the company's objectives and advertising goals.

How To Start a Business in Nevada

With no State corporate, franchise or personal income tax, Nevada may be just the state to start a business in. What's more, business documentation filing fees in Nevada are lower than in several other States and Nevada Limited Liability Corporations (LLC's) can be managed by one person comprising all the roles of executive officers required by law in some other States. 

To clarify the distinction of non-taxation of Nevada businesses, the Nevada business code specifies that while LLC's are not taxable as business entities at the State level, the income received from the business by its owners is still reportable at the Federal level via Internal Revenue Service filings. (tax.state.nv.us)

The process of starting a business in the state of Nevada follows some standardized procedures similar to other states. That is to say State and Federal regulations are still applicable despite Nevada's limitations on what information they report to the Federal Government. To be sure, an employer identification number is required for most businesses, and acquiring a registered agent is codified in addition to obtaining appropriate licensure and registration via the Nevada Department of Taxation. 

It is important to note, that a State Business License is not required for all corporations such as not-for profit corporations, revocable trusts and individually managed LLC's (tax.state.nv.us), however municipal licenses or permits may be required even if a State license is not. Websites such as businesslicenses.com can be of assistance in determining which local licensure may be needed.

Filing fees and State reporting requirements for Nevada businesses can be ascertained through the Nevada Secretary of State and Department of Taxation, that's website is listed at the bottom of this article. As with other states, the filing fees and requirements can vary based on business structure. A registered agent can assist with this process and both the State filing and renewal fees are lower in cost than in several other States. To simplify the paperwork involved it may help to visualize the process in terms of a small series of tasks as listed below:

1. Compare cost advantages of Nevada businesses with other States
2. Assess legal and regulatory environment for the business
3. Perform a market and SWOT analysis (Strengths, Weaknesses, Opportunities and Threats)
4. Evaluate and/or acquire capitalization, and assets necessary for operation
5. Obtain a registered agent
6. Incorporate, register, document and pay fees as required
7. Appraise the need for equipment, staff, property and additional insurance

Some of the steps involved in starting a business in Nevada should ideally be similar to starting a business in any location. These pre-requisite steps pertain to the business plan, marketability, capitalization, feasibility etc. The latter stages in starting a business are more State specific and involve determining fees, operating cost and profit margin benefits of state registration, filing and incorporation requirements in additional to legal protections and environment which the business will operate under. Researching these steps one by one via the sources provided with this article and via independent consultation with business, and incorporation specialists may be worth the initial costs if the business is likely to achieve profitability.

The advantages to starting a business in Nevada have to do with several factors including 1) 'low' registration fees, 2) favorable income, corporate and property taxes, 3) Business privacy rights and 4) a business litigation process similar to that of the Delaware and 5) ability to have individually run LLC's. Some of these advantages are business specific meaning the type of business can effect how a businesses will be required to report income at the Federal level and file with the Secretary of State and Department of taxation at the State level. Generally, the advantage of registering a business in Nevada may be worth consideration, with potentially added benefits in regard to business that will benefit from local markets, revocable estate trusts and Limited Liability Corporations.

Sources:

1. http://sos.state.nv.us/business/
2. http://ezinearticles.com/?Incorporating-a-Business-in-Nevada&id=831882
3. http://www.activefilings.com/states/nevada.htm
4. http://www.smallbusinessbible.org/nevadacorporation.html
5. http://www.nvinc.com/nevadairs.htm
6. http://www.tax.state.nv.us/documents/TPI%2001.03%20NV%20Business%20License.pdf

The Loanable Funds Model and Business Borrowing

The Loanable Funds Model is an economic theory that states business borrowing and lending is determined by the interest rates businesses pay for those loans, and the availability of capital through the banking system and other traditional sources of capital. 

With higher economic liquidity, interest rates decline, and when the inverse occurs, a tighter money supply results. An important question about the loanable funds model is where and how availability of financial liquidity is facilitated as this mechanism determines if an increase in the money supply becomes available to businesses and if it does, at what cost.

Another aspect of the theory of loanable funds is that it may be best perceived in light of the financial dynamic that surround it. For example, according to a report by Anthony J. Makin published by the Australian National University Press, an overabundance of liquidity provided by federal monetary policy financed in part by overseas borrowing may actually have an inverse affect to what was originally intended.

A reason for this financial circumstance is that costs of capital are expensive for the state leading to potential spending cutbacks in infrastructure that fosters growth. Moreover, in this scenario, the demand for more expensive private business financing can actually decline leading to a potential net decline in economic liquidity and growth on top of an increased national cost of debt that in the long-run leads to higher costs for business loanable funds.

In terms of business, the loanable funds model is more likely to have economic benefits if those funds follow their intended purpose, and  the low cost of loanable funds is financed by surpluscapital rather than deficit spending. The reason this may not always happen is that in the case of U.S.banks, money borrowed from the government at cheap interest rates may not necessarily make its way to businesses.

This is because if banks find other opportunities with lower risk for similar or higher returns their borrowed funds are better spent elsewhere. Additionally, as mentioned above, when low cost loanable funds come from deficit spending, it eventually leads to a need for higher interest rates to finance that spending and less consumer and business spending due to a higher cost of capital. So in effect the loanable funds model is somewhat dependent on how and where the capital from loans comes from.

Thus, to summarize, according to the loanable funds model, interest rates in general rise and fall together regardless of their source i.e. government, corporate or private. This is an important correlation to consider because even in times of high cost of capital, private loans are likely to also reflect the rise in risk premium and/or real interest rate. In such case, private loanable funds don't necessarily vanish but come with higher cost, indicating a cost demand relationship and not a supply and demand relationship.

In addition to the above, with the increased cost of loanable funds, comes increased risk and lower availability of many types of business loans. The incorporation of monetary policy, alternate source of capital, inflation and broader economic circumstances into the loanable funds model can have considerable impact on decisions made by businesses and economic outcomes for those businesses.

Sources:

1.http://bit.ly/gRHoRN (Iowa State University)
2.http://bit.ly/eP9qT7  (Australian National University)
3.http://bit.ly/fkXFkE   (Harvey Mudd College)
4.http://bit.ly/dEUeUr (Economy Watch)

How to save money running a startup

Knowing how to save money running a startup not only helps the competitiveness of a business, but can also benefit the business owner and the valuation of the business itself. Cost management is an essential aspect of business management especially during times when revenue is lower, and affordable business financing is harder to come by.

The startup money saving tips in this article target key areas in a business including  (1) administrative costs, (2) operational costs (3) financing costs, and (4) overhead costs. Lowering costs can also be considered in terms of whether or not the cost is recoverable or non-recoverable. Non-recoverable costs are expenditures that can be recovered in part or in full as assets. Non-recoverable costs on the other hand cannot be recovered except indirectly in the form of sales.

• Pass through business structure and tax deductions

Sole proprietorships and S-corporations are pass through businesses meaning income and expenses from the business pass through to the owner(s). By setting up one of these businesses, any qualifying expenses from the business can be used to reduce personal taxes as well.  In this sense, proper allocation of costs ends up saving money on taxes for the owner through running the startup.

To illustrate the advantages of pass through businesses a hypothetical example of Mr. Jones a consulting agent is used. Mr. Jones owns a consulting company that's revenue is $80,000 for one year. Mr. Jones decides to purchase a vehicle and deducts it as an expense from his business income because he can't deduct it from personal income. Thus, if the vehicle costs $25,000, the total remaining taxable income is only $55,000 instead of $80,000. 

In addition to company asset deductions, by qualifying for home office deductions, a startup business can save money on the cost of rent or mortgage costs per proportional use of living space used for business operations. This is another tax benefit of earning money through and utilizing a business for a higher retained income. For example, if 20% of rent is a home office deduction and the rent is $1000, $200 taxable at 25% is $50 in savings assuming the business is profitable enough to benefit from the deduction.

• Energy efficiency and Overhead savings

Money can also be saved running a startup with lower overhead costs. Overhead can comprise a large portion of a non-recoverable business expenses; finding ways to reduce these costs can potentially have dramatic affects on liquidity, and asset value. The more costs that don't increase a startup businesses value, the less profitable and valuable a business becomes. Anything that maximizes efficiency and lowers cost without negatively impacting revenue is probably a beneficial cost savings and utilization technique.

1.  Mortgage commercial property

2. Reduce square footage with vertical usage of space

3. Adjusting lighting: High efficiency lights have the same output for less 

4. Operate business in a lower cost

5. Install self-generating energy equipment

6. Lower storage requirements with supplier shipping

• Non-overhead expense reduction techniques

Non-overhead startup costs are those costs associated with running specific tasks within the business. For example, if a telephone is used to set up appointments it is a non-overhead costs. Reducing these costs without hampering the functionality of a startup business is another way to improve a business' competitive positioning, efficiency and profitability. Whenever considering a cost, it can be helpful to ask if it is available elsewhere for free or lower cost, how essential it is to the business and what can be used as a lower cost alternative.

1. Store information digitally

2. Use an online fax and web based telephone

3. In-source services with existing staff

4. Market via the internet and word of mouth

5. Obtain marketing research via low cost contract

• Financing

Cash flow and necessary equipment are important aspects of a start up business. Knowing how to save money running a startup business can also be achieved by adjusting cash flow and equipment financing.  For example, by combining a line of credit with accrual accounting a cost free cash conversion cycle can be implemented which affords businesses greater payment options for its clients.

1.  Use accrual rather than cash accounting

2. Establish an interest free 30 day business line of credit

3. Purchase using no money down, interest free financing options

4. Buy used or seek out free or low cost business necessities

How to Assess if Your Business Insurance Provides Adequate Coverage

A good approach to take when assessing if your business insurance provides adequate coverage is to go through a series of steps that address business hazards, assess replacement costs, identify insurance risk probabilities, and evaluate insurance options. The following five steps, one at a time. These steps can assist business owners or managers in determining if their business insurance coverage is adequate.

Business insurance factors

The following topic points can help a business manager or owner 1) itemize which business insurance coverage you need most, 2) accurately assess the value of your business or separate items within the business, 3) classify insurance coverage according to risk, cost and probability and 4) help in knowing what to look for if and when you decide what coverage is best for your business.

Business insurance is a business decision and should therefore be approached in a business like manner. Assessing if your business has the right amount of coverage can be done in a way similar to determining how much to spend on advertising, how much inventory to hold, and how to best implement a revenue strategy. In other words, insurance is no exception to the business of business.

• Address business hazard(s):

Addressing business hazards can be accomplished by by a) studying your articles of corporations, bylaws and any contracts if applicable, b) familiarize with the state and federal law which your business is subject to, and c) perform a business analysis of your operational hazards, possible liabilities, and asset structure. Doing these things will assist you in your first line of defense against financial loss.

• Assess replacement costs

Use up to date balance sheets and net worth estimates when determining the replacement cost of your business. If you forecast asset and net worth growth accounting for this in your business insurance coverage may be a good idea. Properly documenting inventory, equipment, building and other assets is important in proving the worth of your business to an insurer if you need to file a claim. It might also be a good idea to keep in mind insurance companies distinguish between replacement costs and actual worth in their policies.

• Identify risk probabilities

Prioritize risk probabilities with insurance coverage. For example, if your business risk assessment indicates you are less at risk of loss from theft, and the theft aspects of the insurance cause it to be a high percentage of the premium, placing this type of coverage lower down in your coverage assessment may be a wise choice. Conversely, if your business risk assessment deems your liability risk to be high and this insurance coverage is less expensive, you may decide this item should go to the top of the coverage requirements.

• Evaluate insurance options

Become acquainted with the types of insurance and insurance packages available. Essentially there is insurance coverage for almost everything, not including bankruptcy. However, declines in revenue directly attributable to 'interruptions' in the typical daily process of your business can be insured. From employees to buildings, there's often business insurance coverage available. If you are not already aware of the types of coverage available, it shouldn't take you long to find out as there are man insurers who would be more than happy to get your attention and money to serve your business needs.

If these previous steps are carried out effectively, you should have a good idea of what your greatest insurance needs are. With this knowledge you can then speak with insurers about coverage deals. Shop around for the most competitive bid or quote. By tweaking, adjusting deductibles, coverage amounts, and business protections the quotes may go down. Also, by combining policies and streamlining your business for efficiency, you not need as much as equipment and inventory that can lower insurance and operational costs.

Additional business insurance considerations

• Business structure 

Limited Liability Corporations (LLC's), Sole Proprietorships, S-Corporations, C-Corporations, and Partnerships all have differences that can affect whether or not the business is adequately covered by insurance. Knowing the legal aspects of your business structure and the operating vulnerabilities of your business can help you a) save unnecessary costs, b) protect you and/or your business from law suits, c) and potentially increase clientele through brand confidence.

• Business specific insurance needs

There may also be business specific insurance needs that aren't covered by the usual business insurance policy. For example, athlete injury insurance, essential body part insurance, website insurance, indispensable employee insurance, or officer kidnapping insurance. Periodically reassessing your business insurance needs may also be a good idea if the business structure, features, assets, employees etc. change.

• Developments in insurance products

Business insurance coverage itself may change over time as well making the need for business insurance reassessment a part of managerial operational adjustments. When you have determined your business insurance needs, doing a once over of our assessment with one or more of your insurer, business executives, partners, or employees may help uncover business insurance shortcomings, overestimates and insurance coverage optimization techniques.

Grant Writing Tips: Business Grants From The Government

To receive a government grant for a business, the application must match the grant requirements as close to perfectly as possible. Knowing the purpose of the grant and demonstrating the business has the capacity to carry out the use of grant funds is also very important to acquiring a grant, otherwise the application is probably a waste of time and energy. 

For profit businesses usually have less grant financing opportunities at the government level than not for profit businesses. Nevertheless, business grants can be worth the effort when seeking an alternative to interest bearing loans and personal capital in business financing. This article will discuss some of the key elements of acquiring government grants, namely the business type, application process, writing of the grant and grant writing tips.

Types of businesses most likely to receive grants

Government grant money is set aside to accomplish specific development goals. Whether such goals be charitable, economic or developmental in nature, many businesses will automatically be classified as less likely or ineligible to receive grant money due to the type of business it is. For this reason, if a business is operating for profit, receiving grants will most likely be more challenging if not impossible due to grant fund allocation requirements.

The technical terms for businesses that grant funds are often allocated for is based on tax exempt status outlined by the U.S. Department of the Treasury and Internal Revenue Code. Common tax exempt organizations are classified 501(c)(3) and include religious, social, public and not for profit organizations such as schools, social service programs, and associations.

Some grants are not competitive meaning many if not all businesses that qualify for the grant will receive some type of funding. These types of grants are termed 'formula grants' (Waddy. P.53). Competitive grants on the other hand will either gain or lose credibility based on the quality of the application which may or may not receive funding. A type of federal competitive grants is called a 'project grant' (Ibid).

The application process

The grant application process takes time, and Government grants tend to involve a significant amount of searching and paper work. That is to say the application process can be split into to two main functions 1) Finding the right grant to apply for and 2) writing the grant. Finding the right grant to apply for is just as important as writing a strong application. The grant search process can take some time sifting through and analyzing the nexus of grants, expiration dates, and requirements and can be found through government databases a few of which are listed below.

Federal, State and Local Government Grant Databases:

There are many databases and sub-databases of grants that are interlinked with one another. Taking the time to acclimate and review the different databases is useful in the grant search phase of the grant application process. A few of the online databases listing grants are provided below. If an organization is specific to a particular area of the economy or public service, one may also wish to search through Government departments dealing specifically with those areas of service.

• Catalog of Federal Domestic Assistance: http://12.46.245.173/cfda/cfda.html

• Grants.gov: http:www.grants.gov

• GPO Access: http://www.gpoaccess.gov/fr/advanced.html

• USA.gov: http://www.usa.gov/Business/Nonprofit.shtml

• The Grantsmanship Center: http://www.tgci.com/

Grant application items

Before the grant application is written several business items are likely to be needed as grant reviewers want to know a lot about a business and prefer to leave no stone unturned. Finding all the necessary information will likely involve speaking to various department managers and explaining why the information is needed. This in and of itself can take several hours and may require the use of privacy contract if the grant writer is working independently outside the business. A few of the items that may be needed in the application are the following:

• Business objective: Mission statement and purpose of incorporation

• Financial Statements: Balance sheets, Income statements, Cash flow statements etc.

• Tax information: Tax exempt status, income tax returns, Employer ID number(s)

• Historical performance: Past achievements of the business both operationally and financially

• Project descriptions and goals: Illustration of projects past, present and future and implementation.

• Forecasted earnings and expenditures: Projected expenses and earnings.

• Operational outlines: Detailed summaries of day to day business operations.

• Staff information: Number of employees, turnover information, staff biographies

'Writing' the grant

The actual writing of the grant is probably the most fun part because it can be thought of as a creative yet professional venture. An outstanding grant application may be a work of art that pays attention to every detail, is highly organized, extremely well presented, meets application requirements including graphs, pictures, forecasts etc, and is utterly convincing in every respect.

A strong grant is visibly appealing, professionally presented, contextually accurate, complete and thorough in addition to meeting the application requirements. The application requirements vary depending on the level of Government and type of grant, but can get very specific in terms of dollars and cents, project details, implementation etc. The whole grant writing process may take approximately 20-80 hours to complete.

Grants may be awarded based on a point system meaning each section of the application will be worth a specific amount of points and the more the application meets the grant requirements, the more points the application will earn. The applications with the most points at the end of the first screening will be reviewed further in the case of competitive grants.

Since the grant application process can take a lot of time and can be very important to a businesses success, skimping, cutting corners and not paying attention to the application requirements can mean a loss of business resources and time and thus it makes sense to spend time perfecting, reviewing and editing the grant application until it is presentable to the reviewers.

Grant writing tips

There are many government grants available but only a few ways to help ensure winning of those grants. For this reason it may be advisable to study the grant writing process before beginning starting the process of searching and writing the grant. The following tips may be worth considering in the quest for acquiring grant financing.

• Be very clear and concise: Grant reviewers don't have all day and want facts not anecdotal information

• Have a functional business: A business that is not proven to be functional via an operating track record will not be as competitive as a business that does.

• Network: Keeping in touch with grant officials and other grant applicants to stay informed and inform.

• Choose the business not the grant: It is the type of business that will win the grant and not the other way around.

• Allocate sufficient time: A rush drop that hasn't undergone final revision may contain mistakes and errors that can lose points in the review process.

• Presentation: How the grant is presented puts a face on the organization. In the case of first time grant applications, the presentation is especially important.

• Research: Finding the right grant is an essential first step to acquiring grant funding. Ideally the grant will already be won before the application is even submitted.

To summarize, Government grants are not easy to acquire and are quite involved especially at the Federal level. The whole grant writing process takes substantial time and involves 1) Understanding the grant process, 2) Searching for the correct grant, 3) Finding a grant writer, 4) gathering grant application materials and 5) writing the grant. Specific types of businesses are by default tax exempt status more likely to qualify for grant application because of that status and thus eligibility for many grants depends on the type of entity applying for the grant. Although established businesses have a stronger positioning in competitive grant applications, properly completing all the steps in the grant application process from start to finish increases the probability of a business receiving grants.

Sources:

1. Ellen Karsh and Sue Fox. 'The Only Grant Writing Book You'll Ever Need' New York. 2003 Carroll & Graf Publishers.

2. Thompson, Waddy. 'The Complete Idiots Guide to Grant Writing' New York , 2003. Alpha.
http://www.irs.gov/charities/article/0,id=96184,00.html

How niche marketing can benefit your business

Niche marketing is a form of business marketing that focuses promotion of product(s) or service(s) on a specific target market. Since it 'targets' a specific portion of a population demographic niche marketing is an arguably more effective way of generating revenue than mass marketing. This is so as the products or services may be more likely to be purchased by the target market because in a sense the products or services are customized for them.

Niche marketing using Earth friendly branding

Source: 'Ecogirls'; C.C. By-S.A. 3.0

The reason niche marketing is used is because it is a cost effective form of advertising. Rather than spending endless amounts of money to drag a marketing dragnet across a sea of people it is considered beneficial to identify that group or those groups of people who are most likely to use a certain type of product or service. After this group is identified a niche marketing campaign can begin.

Defining niche marketing

To illustrate what niche marketing is think of a specific type of product like writing services. People who like to read a lot are probably more likely to enjoy writing than those who prefer talking a lot. Markets can be divided further through complementary products. For example, if someone is already subscribing to a writing magazine, they then become a more likely candidate for a writing website than someone who doesn't subscribe to the magazine. At least that's how some marketing logic works. This group of people subscribing to the writing magazine then become a potential niche demographic for additional writing services, and marketing of those services is then considered 'targeted'.

Benefits of niche marketing

The benefits of niche marketing including a more researched study of who is likely to purchase a product in addition to potential advertising savings and increased sales per advertising dollar. So long as the research costs don't outweigh the decrease in advertising dollars the decision to establish a niche market is well founded. Acquiring a niche market involves more than just finding magazine subscription lists however.

A niche market is also found through other means such as website visits, personality type, income demographic, religion, socio-economic status and culture. There are many ways to identify who is going to buy what and this is assisted by the use of statistical tools such as cluster plots, and mean regression analysis. When various groups of people demonstrably fall in to certain groups, this is illustrated through statistical charting and graphing. This research is then used in obtaining marketing financing from finance executives. Additionally, when the results of primary research such as surveys and focus groups leads to probable success of a nice marketing campaign such financing is further justified.

• Potentially increased sales per dollar of advertising
• Higher corporate profit
• Better researched consumer profile
• Product or service viability and usefulness defined in terms of consumer
• Increase marketing efficiency

Summary

Niche marketing is thus a form of marketing that matches a certain brand with a person or group of people. While this is ideally intended to lower advertising costs and increases profit from revenue and the sales per advertising dollar ratio. This beneficial affect of niche marketing may not always happen as the 'market' is composed of human variables and is thus an inherently adverse enterprise. Nevertheless, in addition to enhanced demographic identification which stabilizes market forecasting are ideas like brand equity that are used in collaboration with the targeted marketing. This brand equity can also improve the perceived value of the product or service to a client and theoretically increases the likely-hood of product or service patronage.

Source: http://www.businessdictionary.com/definition/niche-marketing.html

John Mackey on Capitalism and Running a Business

Whole Foods CEO John Mackey attracted quite a bit of ire a few months back when he wrote an editorial for the Wall Street Journal in which he advocated that Obama and the congress consider an approach to health care reform similar to the health benefits which Whole Foods provides its employees (centered around high deductible coverage and health savings accounts.) Within days, several progressive sites were calling for boycotts of Whole Foods, seeing Mackey as giving aid to anti-Obama forces. Mackey himself is somewhat bemused by the firestorm his editorial caused.

"President Obama called for constructive suggestions for health-care reform," he explains. "I took him at his word." Mr. Mackey continues: "It just seems to me there are some fundamental reforms that we've adopted at Whole Foods that would make health care much more affordable for the uninsured."

Though he's not gunning to cause any more controversies, Mackey has an interesting weekend interview in the Journal where he talks, among other things, about his philosophy regarding capitalism and business, and how it's changed over the years since he founded Whole Foods with $45,000 in friends and family-raised seed funding in 1978.

"Before I started my business, my political philosophy was that business is evil and government is good. I think I just breathed it in with the culture. Businesses, they're selfish because they're trying to make money."

At age 25, John Mackey was mugged by reality. "Once you start meeting a payroll you have a little different attitude about those things." This insight explains why he thinks it's a shame that so few elected officials have ever run a business. "Most are lawyers," he says, which is why Washington treats companies like cash dispensers.

Mr. Mackey's latest crusade involves traveling to college campuses across the country, trying to persuade young people that business, profits and capitalism aren't forces of evil. He calls his concept "conscious capitalism."

What is that? "It means that business has the potential to have a deeper purpose. I mean, Whole Foods has a deeper purpose," he says, now sounding very much like a philosopher. "Most of the companies I most admire in the world I think have a deeper purpose." He continues, "I've met a lot of successful entrepreneurs. They all started their businesses not to maximize shareholder value or money but because they were pursuing a dream."

Mr. Mackey tells me he is trying to save capitalism: "I think that business has a noble purpose. It's not that there's anything wrong with making money. It's one of the important things that business contributes to society. But it's not the sole reason that businesses exist."

What does he mean by a "noble purpose"? "It means that just like every other profession, business serves society. They produce goods and services that make people's lives better. Doctors heal the sick. Teachers educate people. Architects design buildings. Lawyers promote justice. Whole Foods puts food on people's tables and we improve people's health."

Then he adds: "And we provide jobs. And we provide capital through profits that spur improvements in the world. And we're good citizens in our communities, and we take our citizenship very seriously at Whole Foods."

I ask Mr. Mackey why he doesn't collect a paycheck. "I'm an owner. I have the exact same motivation any shareholder would have in the Whole Foods Market because I'm not drawing a salary from the company. How much money does anybody need?" More to the point, he says, "If the business prospers, I prosper. If the business struggles, I struggle. It's good for morale." He hastens to add that "I'm not saying anybody else should do what I do."

Well, that's not exactly true. Mr. Mackey has been vocal in his opposition to recent CEO salaries. "I do think that it's the responsibility of the leadership of an organization to constrain itself for the good of the organization. If you look at the history of business in America, CEOs used to have much more constraint in compensation and it's gone up tremendously in the last 30 years."
emphasis added

Working in an area of business (pricing) which management traditionally turns to when trying to eke more revenues or profits out of a business that is not doing as well as they'd like, the bolded point is something of which I'm particularly aware. Tools such as pricing can be used to optimize a business, but (contrary to the belief of some executives) you cannot make people want something they don't want simply by pricing it right -- or indeed by any of the other "marketing magic" available in business's bag of tricks. At the end of the day, the way to have a sustainable, successful business is to provide people with something they need or want. While making a profit in a business is a primary reason for its existence (just our for any working person their paycheck is a primary reason why they show up) the only way to make profits achievable is to provide something that others value. And while it's possible to do this while caring only about the profits (or the paycheck) you're generally going to be most successful at it if what you really care about is providing that service profits are simply the way you measure your success.

When businesses (or individuals) start thinking about how to make profits without thinking about how to provide people with something they will actually value, they usually are undercutting their ability to do either in the long term.

A Brief Pricing Exercise

or: What does Darwin do all day?

I made a quick run over to the grocery store at lunch time yesterday to pick up coffee for work, and I was pleased to find that the brand of ground coffee I normally buy was marked down from 7.99 to 5.99. Not one to waste an opportunity, I bought two.

Now in a sense, this is exactly the sort of behavior that pricers try to cause, but it also underlines some of the pitfalls of my job, and the reason why pricing is a sufficiently complex science that it has a bit of the art to it as well.

A 25% price drop caused me to buy two bags of coffee instead of one. Doubling unit demand by dropping price 25% isn't bad, though clearly no everyone would have bought two. But here's the trick: The fact I bought two bags of coffee won't cause me to drink coffee any more. (Some suspect if I drank coffee much more than I do already, one of my organs would fail anyway.) So in my case, this sale was actually a net loss for the coffee makers and the grocery store. I paid less for the same amount of coffee that I would have drunk anyway, and now they've foregone sales at full price a couple weeks down the road in order to get sales at lower profit margins now.

However, constant customers like me aren't the real targets of a sale like this -- at least, not if the seller is going to be successful. The real question is: by lowering the price of this coffee, will they win business from people who would have otherwise bought Starbucks or house brand gourmet coffee, or even Maxwell House or Community Coffee. If the lower price brought customers to the brand who would normally have bought something else, and if those customers love the coffee and decide to keep buying it even when it goes back to full price, then it's clearly a win for the brand.

At the end of the day, success for the grocery store is if they have greater revenues and greater profits overall -- though achieving this in the long run may mean sacrificing one or the other in the short term. They can do this one of three ways:
1) Have more customers come to the store.
2) Have the same customers buy more things.
3) Have the same customers buy more expensive things.

My guess is that 1) is not in play here -- I can't see gourmet coffee bringing in people who don't normally shot in the store, and I don't think this offer even made the circular. However, you'd want to check your customer count stats just to see.

I fell into 2) by buying two bags of coffee instead of one, but what they really would need is for people who don't normally buy coffee to buy some, which is unlikely. Most people either drink coffee or don't, though occasionally you have shifts in these trends. Arguably, the Starbucks phenomenon has created more coffee drinkers than there were before. For this one, I'd look to see if aggregate coffee demand for the four weeks starting with the week of the discount was up -- and whether any increased demand translated into increased profitability, or if the 25% discount ate up all the profits from the increased volume.

The gold in this case is probably 3). Does this kind of discounting turn drinkers of cheap/nasty coffee into drinkers of more expensive, quality coffee? (Bias showing through here...) To determine this, I'd look at whether there was a move from cheaper coffee to more expensive coffee during the discount, and whether some of that move proved to stick in the following weeks. If so, doing such a discount every 6-8 weeks would be a good way of converting people to the higher quality product by allowing them to try it at lower cost. (You wouldn't want to run it more frequently than that, or people would start refusing to buy at full cost and waiting for the discount, turning your high price product into a medium price product and possibly turning the entire brand into a money loser.)

And now... I have to go price.

Unreasonable Compensation

With people focused on the economic downturn, many have found it a good time to give a little extra thought to whether other people are making more than they ought to. The president has spoken out several times against "excessive compensation" of executives, and a number of people have floated the idea of adjusting the top marginal income tax rate to effectively cap total compensation at ten million dollars a year. MZ tackled the question somewhat humorously here.

Beyond question, $10 million is a lot of money. Most of us will never see anything like that much money, and so it seems entirely reasonable to demand: Why should anyone be paid so much? What's so special about CEOs and actors and baseball players that they deserve tens of millions of dollars? Aren't they running off with the money that we should be getting instead?

I certainly wouldn't claim that executives are not often paid more than they are worth. A board of directors is still a group of people with emotional commitments (including wanting to assure themselves that they made the right pick in choosing the current CEO) and they will certainly not always do what is in their own best interest. Though we may be comforted that in a free economy the incentives are in place to automatically punish them for not doing so.

To look at an example of the impact of high executive compensation, I consulted the handy Executive PayWatch Database which my friends at the AFL/CIO put together for me. I picked Hewlett-Packard Company to look at. CEO Mark Hurd made $34,031,021 in total compensation in 2008. This, the AFL/CIO helpfully calculates for me is the same as 836 years worth of salary for the average worker. Should we be outraged?

Well, if we look at Hewlett-Packard's financial results from 2008, we find that HP had 118.4 billion in gross revenue with 8.3 billion in profits. The CEO's total compensation is equal to 0.03% of gross revenue, and if his pay were reduced to $100k that would increase profits by 0.41%

If they took the CEO's pay down to 100k and spread the savings out as raises to all of HP's 321,000 workers, each worker would make $105.70 more per year: $8 per month.

So is all the money being siphoned off by executives? No.

But why pay them so much? The answer is basically that people get these absurdly high sums of money when they are in a position to affect a lot of money. Brad Pitt makes absurd amounts of money because whether or not he is in a movie can make a difference in $100 million in box office gross. (Or at least, that's what the studio is betting based on historicals.) Baseball and football players make vast sums because professional sports franchises produce huge amounts of wealth, and the players think that if their playing is what produces all that money, they deserve a decent percentage of it. And CEOs and other highly placed executives make a lot of money because the difference between having a good CEO and a bad CEO can be billions of dollars in revenues and profits. It doesn't make sense to ask, "What exactly is it that anyone can do that's worth $130,888 per day?" when it's not the actions of sitting in meetings, looking at spreadsheets, and talking on conference calls that result in CEO pay being so high. Sure, anyone could sit in those meetings and look at those presentations. However, the difference between a CEO who picks good goals and hires good executives, and one who ignores important opportunities and hires idiots, can be billions of dollars in growth and tens of thousands of jobs.

I don't deal with C-level executives in my company, but just thinking of the VPs and directors that I have visibility to, there are some who are very, very good -- and others that I would happily make a $100/mo paycheck contribution to have fired. The difference between a good or bad executive could be company growth or losses that allow me to get a raise, or cost me my job. And if I care at my level, it's no surprise that boards of directors care as well.

Now, I think there's a deeper question here. At a pragmatic level, if a company has to pay $40 million instead of $10 million to get the CEO who will allow them to grow and prosper, that makes sense for them to do in order to make profits for their investors and jobs for their employees. However, there's a cultural element here as well which we might well question. Who much is it reasonable for a single person to ask for in compensation, even if it is in the interest of the company to offer much more?

I'm of two minds on this. On the one hand, even if it's of marginal impact to each individual employee, I find myself wanting to say there's simply a limit to how much personal wealth anyone needs. On the other hand, if that wealth ends up in the hands of one person, it allows him or her to direct the use of that money for good -- whether that means founding a school, sending medicines to Africa, or starting yet another company which gives better livelihoods to thousands of people.

However, either way, I don't see the crusade to limit executive pay by law as a reasonable one. The current system allows companies to pay executives according to the benefit they expect to get from them, and use that money as a motivation to get the executives they think they need. If all CEOs were capped at the same level, that would simply mean that companies would have to find other ways to compete for top talent, and I don't see how that would be an improvement.

Availability Replaces Ownership

I bought a DVD the other day, something which was mildly notable in that I almost never buy any DVDs anymore. Once upon a time I had a movie library instinct which worked on nearly the same scale as my book library instinct. I had a steadily growing collecting of VHS and later DVDs of the sort of movies (many of them either foreign or obscure) that I liked and yet could never find on the shelves of the local Blockbuster or Hollywood Video.

What initially stalled the growth of my movie library was the lack of time for watching non-kid-suitable movies which afflicts many tired young parents, but over the last couple years we've gradually reacquired our evening leisure time (though sometimes only at the expense of many tears when 8pm rolls around and the monkeys are marched upstairs) and started to watch movies or TV shows on DVD 1-2 nights a week. And yet now we almost never buy movies, and the ones we do have are sealed up in boxes in the garage.

The difference is Netflix.

Since Netflix has practically every movie on DVD available on three days notice, it's become very easy to overcome my library building urge when it comes to movies. In essence, having access to Netflix becomes a substitute for owning the movie, and so the only movies I've picked up in the last several years have been movies that we'd be likely to want to watch all the time (some kids movies, and a few movies that we often feel like crashing with when tired and stressed.)

This strikes me as an interesting example of how a community resource can replace the need for people to own things individually. No one has restricted my ability to own movies, but having been provided (at a fairly nominal monthly cost) with a resource that replaces (and expands on) the benefits of building a movie library, I simply have no desire any more. For those who worry greatly about the impact to society and the environment of everyone wanting to own more things, Netflix is perhaps a good example of the sort of thing which declutters the world while actually pleasing people more.

The challenge is, many of the suggestions for reducing consumption which are pressed upon us are significantly inferior to the more consumption heavy alternative. Public transit is all very well, but for many of us it simply doesn't go where we want to go when we want to go there or is in fact more expensive in absolute terms than driving. One may appreciate the virtues of the old urban neighborhood with everything near by, but not enough to want to cram a family of six into a small flat. Etc.

But if one can come up with a collective resource which actually provides a better experience than personal ownership, people will quite happily jump aboard.

I find it had to imagine ever dropping my book acquisition instinct, but I imagine that if I had truly easy access to a library large enough or fluid enough that I could reliably find nearly any book that I wanted in it, I would drastically reduce my book buying activities. (As it stands, our local public libray is mostly only useful for children's books, very basic non fiction needs, and fairly common or best-selling fiction.)

Those Wicked, Wicked Corporations

On a lark, I went out with some young friends last night to catch a late showing of Transporter 3, which was about as much of a goofy/fun action movie as one would expect. While various chases and fights were fun to watch, the plot itself was one of those confections which implodes on the least scrutiny. Particularly interesting to me, however, was the role of the Evil Corporation.

You would think that the rabbit like timidity of office park culture would not provide much grist for the action movie mill. Not so in Transporter 3. When the American-based Eagle Corp. is in danger of having their request to dump eight cargo ships a year worth of toxic waste in Ukraine, they kidnap the Ukrainian prime minister's daughter and threaten to kill her if he doesn't sign their contract. This leads to lots of tense staring at the contract with pen in hand, and plenty of black Audi and Mercedes sedans speeding around the continent -- as well as the occasional shoot out.

You can, of course, picture how this would go.

[Interior: Eagle Corp. conference room where waste management directors are in conference.]

Evil Corporate Man One: Report on the Ukrainian waste management plans?

Evil Corporate Woman: Unfortunately the Ukrainian Prime Minister has decided this is the time to boost his environmental cred in the EU. He's broken off negotiations and is planning to give a speech to the EU denouncing environmental destruction and explaining the need to preserve the planet for his daughter's generation.

Evil Corporate Man One: This kind of obstacle makes me feel like using non-board-room language. I'm open to creative suggestions.

Evil Corporate Man Two: The Prime Minister's daughter is a big player on the party scenes. Let's drug her, rig her with an explosive bracelet, and send her out across Europe in a fancy black car with an underworld delivery man while telling her father that he'll never see her again unless he signs a contract allowing us to dump even more waste than originally planned.

Evil Corporate Man One: That sounds like a reasonable suggestion. Any objections?

Evil Corporate Woman: I'd like to run your underworld driver choice by HR to make sure that they agree we're engaging in fair hiring practices. And of course you'll need to send the revised contract over to legal for review.

Evil Corporate Man One: I'll make a note of those action items. Evil Man Two, could you run our new scenario by the folks in PR to make sure they don't see any corporate image problems resulting from kidnapping and intimidation. Evil Woman, could you contact our negotiation team and ask if threatening the PM's daughter would result in difficulties in future negotiations?

Evil Corporate Man Two & Evil Corporate Woman: Got it.

Evil Corporate Man One: All right. Thanks for putting some good, outside-the-box thinking into this, team. I'm glad to see you're all living up to corporate value number three: dealing with ambiguity. That's all for today. I'm giving the last five minutes of our meeting back. Remember that year end reviews are coming up and you'll want to update the results in your performance plans. We can discuss that in our one-on-ones next week.

Want an Analyist? Call an Indian

This week we've been interviewing candidates for a new slot on our team at work (though due to budget constraints this is an "internal only" hire.) The resumes we got from HR which fit the job requirements totalled four Indian immigrants and one Pakistani. Not a single US born or educated candidate among them.

So far as I can gather, this is not unusual in technical areas. (And although we're a marketing team, this is a slot for a heavily analytical person.) And while fifteen years ago the joke was, "If you want to be an engineer, learn Japanese." These days, I guess it would be, "If you want to work with computers, learn Hindi."

While some of this has to do with India currently providing the combination of a business friendly climate, comparatively low wages and a good educational system, from my conversations with Indian co-workers it sounds like it's also the result of India actively fostering a highly technical citizenry over the last 30 years. Based mainly on standardized tests (and to some extent on student preference) students are put onto various pre-professional tracks at in junior high or high school, with the coveted areas being medicine, accounting and technology. Very, very few people, I'm told, go into the arts or humanities, and the idea of taking a college majors that doesn't have an obvious target career is very alien to my Indian co-workers.

On the basics, my co-workers have an outstanding education. Their math skills are better than those of most US-education people I know, and their reading and writing are also generally better -- though with a few oddities that are the result of trying to bridge the gap between Indian and American English. (And while their usage can be odd, their grammar and spelling are generally much better than those of us from the US.)

But while I admire the overall emphasis that Indian society apparently puts on education, I find the idea of an educational system which is entirely based on preparing people for careers (and thus gives little time to history, literature and philosophy) rather dispiriting. Certainly, we do little better in the US, where our humanities departments are too often given over primarily to political activism, and a lot of people manage to graduate college with little familiarity with Western Culture. Still, I would like to see such enthusiasm for learning focused on the full range of subjects, not just ones relevant to specific careers. And if my own experience is any gauge, having a primarily liberal arts education is not a barrier to pursuing a very analytical career.