International Economics and Business: Business Tips

Showing posts with label Business Tips. Show all posts

Tuesday, March 1, 2011

How to Start a Serious Business With £2,000

Introduction

How to Start a Business

The following scenario will match many of you exactly, but will not match the rest of you. However, you should all be able to take something from it, I hope!

Many of us think about starting a business at some stage in our lives and what most of us have in common is a lack of start up finance. This article is about getting a business of the ground with £2,000 (a minimum figure in almost every case). Much of this article looks at the Internet as a facilitator of building a business on a tight budget and rightly so. The Internet has a vast and transparent infrastructure of business experience that anyone can tap into at this present time (but not forever). There’s information, advice, tools, experts, mentors, chat rooms, and lots of businesses cutting fees to the bone in an effort to hang-on-in-there. So, if you have what it takes (someone’s quote, “if people knew what it would take to be successful most people would not bother”).

Coming to an Agreement in Negotiation

Coming to an Agreement

Once you have come to a final agreement, it is important that you have it down in writing along with both parties’ signature: this is not always possible or practical. Before it is signed, or formally ordered, it is wise not to say anything about the terms agreed because your next sentence could break the agreement: the best sales-people never over sell – well, not until they have to!

If it is a sale/purchase that you are making, then officially, it isn’t a sale until you/they have actually ordered the product/service. Usually, this will be an Order Form with a purchase order number. In most other negotiations, one party sending a letter and fax to the other in which the agreement is outlined (to a sufficient degree) will form a legal basis.
>>Negotiation Skills

>>Planning and How to Negotiate
>>Coming to an Agreement in Negotiation

If the other party then amends the conditions in the agreement in writing to you, those amended terms then become part of the agreement, UNLESS you disagree in writing, and so on…

Planning and How to Negotiate

Pre-Negotiation

Before you decide to negotiate, it is a good idea to prepare. What is it exactly that you want to negotiate? Set out your objectives (e.g. I want more time to pay off the loan). You have to take into account how it will benefit the other party by offering some sort of reward or incentive (explained later).

What is involved (money, sales, time, conditions, discounts, terms, etc)? Know your extremes: how much extra can you afford to give to settle an agreement? Although you are not aiming to give out the maximum, it is worth knowing so that you will not go out of your limits.
>>Negotiation Skills
>>Planning and How to Negotiate
>>Coming to an Agreement in Negotiation

Know what your opposition is trying to achieve by their negotiation. This is useful information that could be used to your benefit and may well be used to reach a final agreement.

Consider what is valuable to your business, not the costs. You may end up losing something in the negotiation that is more valuable to your business than money. It could be a reliable client or your company reputation.

Negotiation skills

Introduction

Negotiation is something that we do all the time and is not only used for business purposes. For example, we use it in our social lives perhaps for deciding a time to meet, or where to go on a rainy day.

Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.

Communication is always the link that will be used to negotiate the issue/argument whether it is face-to-face, on the telephone or in writing. Remember, negotiation is not always between two people: it can involve several members from two parties.
>>Planning and How to Negotiate
>>Coming to an Agreement in Negotiation

There are many reasons why you may want to negotiate and there are several ways to approach it. The following is a few things that you may want to consider.

Five Biggest Mistakes That Entrepreneurs Make

1. Having Unclear Goals and An Unclear Mission
2. Trying To Prove That You’re Smart
3. Greed: Doing It For Money
4. Hiring People That You Like, Rather Than People That You Need
5. Not Knowing When To Let GoQUOTES:”A company is not a social club”"Running a company is like raising a child”

Top 10 Mistakes New Business Owners Make

This useful video lists common mistakes made by new business owners. This is the newest entry in WatchMeFranchise.com’s Business Tips Video Series.The top 10 mistakes are:

1. Thinking too small or too big.

2. Losing your focus or drive.

3. Taking on too much by yourself.

4. Sacrificing your personality.

5. Not tracking your advertising.

6. Investing too much in one client.

7. Going against your gut instincts.

8. Not getting involved in the community.

9. Managing employees poorly.

10. Trusting that signed contracts will be honored.

Vietnam Economic Update for the Year 2011

On January 21, 2011, many members of the foreign business community in Vietnam gathered at an annual business luncheon event organized by the Canadian Chamber of Commerce in Ho Chi Minh City to discuss prospects for the year ahead. The participants agreed that overall, they are optimistic, but also wary of several uncertainties, reported Vietnam News Agency.

The managing director of TNS Vietnam, Ralf Matthaes, who as also spoken to several groups arranged by www.business-in-asia.com during our trips to Vietnam, and was one of the key speakers at the event recently in HCMC, said Vietnam’s market will continue to grow in 2011, but at a slower pace than pre-global recession times, reported the paper. Matthaes said his market research firm expects both exports and foreign investment to show stronger growth in the face of improved economic conditions. He warned that inflation and the global recession could be big problems for Vietnam.

Vietnam Inflation Rate – Yr 20

05-2010

Inflation Inflation has been a persistent problem for Vietnam. The government has said high inflation, which hit 11.75 last year, was a weakness of the economy and they would try to lower it. The The Wall Street Journal on January 24, 2011 noted that “Vietnam’s inflation posted another double-digit rise ahead of the Lunar New Year (end of January 2011), adding pressure on authorities to raise interest rates to slow the nation’s growth and curb pressure on its currency”. The paper said that the consumer-price index rose 12.17% in January from the same month a year earlier.

Vietnam Export & Import (Yr. 2009-2010)

Export to Decline? Vietnam’s export turnover was estimated to total US$70.8 billion for the entire Yr. 2010, a year-on-year increase of 24%, marking a 16.5% increase on the predicted $60.5 billion, the Ministry of Industry and Trade announced just before New Year.
Even though Vietnam has continued to export more products, there is now serious concern over the country’s ability to retain its position and continue to turn in similar levels of growth this year in the global market.

Vietnam has been doing well so far because it was able to keep prices low, but that competitive edge is threatened by its heavy dependence on imported materials and increasing labor costs, said Jocelyn Tran, country manager at MAST Industries (the company is a subsidiary of The Limited Brands, which owns several top names including Victoria’s Secret, Express and The Limited), reported Vietnam News. For example, Vietnam is now a major apparel supplier to the US, just behind China in terms of market share, she said. However, unlike other garment producers, Vietnam is “too far downstream in the supply chain” because 80 percent of its products use imported materials, mainly from China. Tran said such dependence has made the sector easily affected by increases in world prices.

More support industries needed

This is a point made repeatedly over the last several years by www.business-in-asia.com. Many industries in Vietnam, especially producers of products for export, continue to rely on imported materials or spare parts. There are strong needs for stronger support industries in Vietnam. Increase in support industries would improve domestic competitive capacity, add value to local products, and be essential for strengthening Vietnam’s competitiveness. The Vietnam News reported late last year that Vietnam’s automotive industry has a localization strategy that requires the development of local support industries. So far, the localization rate in the industry remains low. Domestic content of vehicles made by Honda Vietnam, for example, is only 10% and those of Toyota Vietnam, only 7%. Remaining automakers average 2-4% with domestic content.

The garment and footwear industries are facing the same problem – with over 80% of raw materials imported, reported the paper. The electronic industries urged for the development of support industries to focus on three major areas: mechanical, electrical and electronic spare parts. Director of the Ministry of Industry and Trade’s Industrial Policy Research Institute, Phan Dang Tuat commented on the issue that Vietnam should learn from the experience of and seek support from neighboring countries like Japan and South Korea in developing support industries

Useful Tips for Exporting in Vietnam

Knowing People

Try to learn a few words of the local language. It is also to know something of the history and of recent economic developments. This show’s to all your interest in the country and its culture and is considered another demonstration of your cultural sensitivity and good breeding.
Connection and introductions are an important part of doing business in Vietnam. A written introduction or a meeting arranged by a go-between will produce the best results. Because connections and who you are introduced by can be very critical, finding a reliable and credible local representative is extremely important. There are some well-established consulting firms that are intimately familiar with the Vietnamese market, but companies should be wary of foreign and Vietnamese consultants who claim to have connections and to know the market. Be sure to ask for references and verify the quality and extend of the firm’s previous work in Vietnam as there are many individuals and firms who really haven’t got the connections, knowledge or experience they claim.
It is imperative that you conduct research while still in your home country, learn about the country, the marketplace, and identify local representatives and target companies for contact. Use this knowledge in discussions with contacts, etc. as often a little knowledge can lead to additional sources which will greatly strengthen your market research.
For any business to be consummated, you must make a long-term commitment to the country and visit it. Vietnamese are still a conservative and relation based society and connection over time and face-to-face meetings are critical in building trust and encouraging support.
Vietnamese are eager for Americans to participate in their economy and balance the interest expressed by Europeans, Japanese, and other Asians. They often have a respect for American technology and popular culture which often can be greater than even the most fervent American.
The application process to establish a local office can be time-consuming, taking up to 18 months. Companies that are not ready to establish a permanent base in Vietnam should consider hiring a local representative to perform support services, open new doors and to monitor any ongoing negotiation processes. Recently it appears that the government is taking some steps to simplify the process to open a representative office. This can be a good first step for many projects.
Contact embassies and chamber of commerce in your home country and in Vietnam. Foreign Commercial Office representatives at your countries Embassy and the local chamber of commerce of your country often have excellent business information and can be great sources of networking.
Generally, business is most efficiently conducted in Ho Chi Minh City (Saigon). But Hanoi often has lower capital requirements and the officials are more eager to please. As you spread out from these two cities, local officials are often enthusiastic for foreign investment but also infrastructure and communications can often be more problematic.
If an Asian person gives you a compliment, be polite and deny it. Modesty is considered a blessing in Asia even more so than in other regions. Self-depreciating humor and not overly promoting you or your associates success is often better received and can lead to smoother relations with your counterparts.
Be respectful of local culture but don’t expect that you have to know everything. Most Asian will make allowances for foreigners. Also, giving a contact a chance to explain a cultural trait or a way of doing things oftentimes is helpful in building relationships.
Do not be surprised if your business counterpart of the same sex tries to hold your hand or touch your elbow as you are walking. This action has no sexual connotations, but is common between same-sex individuals in Vietnam. A Vietnamese will usually not do this unless he or she feels very comfortable with you.
Corruption as a standard business practice is a problem in Vietnam as it is in many developing countries.

Business Meetings

Business cards are always exchanged at the first meeting. The Vietnamese often use both hands to receive and give cards and also slightly bow their head to indicate respect. Taking a minute to look at the persons card, to pronounce their name and to acknowledge their title are often good ways to show your counterpart that you value the opportunity to meet with them.
Bring a large supply of business cards and advertising material. You may meet many more people than you expect. Asians view the exchange of business cards in particularly as a very necessary opening ritual. Not presenting your card often can be construed as your company is not genuine or you have something to hide, so please prepare the necessary materials prior to your visit.
The Vietnamese shake hands with both men and women at both the beginning and the end of a meeting. If a Vietnamese does not extend his or her handshake, a slight bow of head will suffice. This is particularly common in the more rural areas and in interaction with women.
The order for a Vietnamese name is family name, middle name, and given name. When referring to someone, use his or her given name with the appropriate title, for example, “Nguyen Van Khai” should be addressed as “Madame Nguyen”. If the person you are meeting in a Director of an office or of a company, referring to him or her as Director and then his last name is appropriate.
You may hear people who know each other referring to each other by the name of the relationship, e.g. my brother, my niece. This is sometimes just to indicate respect. This may not be his/her family members, but indicates somebody very close to the speaker. This can be confusing for non-Asians but indicates that the person thinks of the other as being a close contact “like a” brother or sister.
A common greeting “chao” (pronounced chow) should be accompanied with the appropriate title, respect for age and status, e.g. “chao anh” (for male, older or those you want to show respect), “chao chi”(to older female), “chao em” (to younger male and female). Even if you believe the other person maybe younger than you, it is often best to err on the side of being overly polite and using the “chao Anh” or “chao Chi” initially when meeting a contact. It is however safe to use just “xin chao”(pronouced seen chao) which is a very polite hello and good bye without identify title.
Vietnamese men often feel uncomfortable socializing with foreign women. They also often assume that women are more comfortable in talking with other women and will often seat them accordingly at meals or sometimes in social meetings.
You will usually be served tea and something to eat. Generally this will be Vietnamese green tea or soft drinks. Be sure to sample them. Failure to taste or drink a small amount of anything is considered impolite.
Have your written materials translated into Vietnamese. Many Vietnamese today have or are studying English or other foreign languages. Most, however, still feel more comfortable with their own language.
Most foreigners will also need to use translators. If there is any question about the comprehension of English by the people you are meeting, always use your own translator or interpreter. Do not rely on the other organizations translator or interpreter. They work for the other side and are more likely to protect their business interest and to focus on their interests not yours. Also, meet with your interpreter prior to the meeting and make sure they understand you and your company.
Try to speak more slowly and distinctly but not so slow or distinct as to offend. If utilizing a translator, leave breaks for your ideas to be translated. Keep in mind that many Asians have been educated in the U.S. and that the standard of English in Hong Kong or Singapore can be very high. Avoid buzzwords and explain concepts thoroughly.
Keep in mind that in most of Asia that dates are shown in day/month/year format, ex. 9/12/99 means December 9, 1999. To avoid confusion, you may want to use the full date in correspondence.
When you meet with senior officials, after initial pleasantries, begin discussing business within a few minutes, for there may be few opportunities to meet with the senior person and their time is at a premium. With middle and junior level officials, you should concentrate on relationship building.
Be careful about what you say when you are in Vietnam. It is not unusual for the government to monitor telephone and fax lines. The government continues to monitor foreign business people in hotels, taxis, and cars, and meeting rooms. Vietnamese individuals such as maids, drivers, assistants, and even translators may be passing on information about you to the government. This is done for reasons of both security and business competitiveness.
Do not touch a person’s head, for the head is considered the spiritual center of the person.
Use both hands to pass things from one person to the next..

Do not point to someone. To beckon a person, use your whole hand.

Source: http://www.business-in-asia.com

Tips for Vietnam Exporters

Social Tips

Bring a large supply of business cards and advertising material. You may meet many more people than expect. Asians view the exchange of business cards in particularly as a very necessary opening ritual.
Try to speak more slowly and distinctly but not so slow or distinct as to offend. Keep in mind that many Asians have been educated in the U.S. and that the standard of English in Hong Kong or Singapore can be very high. Avoid buzzwords and explain concepts thoroughly.
If there is any question about the comprehension of English by the people you are meeting, always use your own translator or interpreter. Do not rely on the other organizations translator or interpreter. They work for the other side and are more likely to protect their business interest and to focus on their interests not yours. Also, meet with your interpreter prior to the meeting and make sure they understand you and your company.
Keep in mind that in most of Asia that dates are shown in day/month/year format, ex. 5/12/99 means December 5, 1999. To avoid confusion, you may want to use the full date in correspondence.
If an Asian person gives you a compliment, be polite and deny it. Modesty is considered a blessing in Asia even more so than in other regions.
Do not try too hard to “go Asian”. Be respectful of local culture but don’t expect that you have to know everything. Most Asian will make allowances for foreigners.
Try to learn a few words of the local language. This show’s to all your interest in the country and its culture and is considered another demonstration of your cultural sensitivity and good breeding.
Bring basic medications you use frequently. Also cold and anti-diarrhea medicine as travel seems to induce these illnesses more frequently.
Generally throughout Asia, it is better to drink bottled water, especially bottled mineral water. Air travel, adjusting to a different time schedule and sometimes higher temperatures and humidity make drinking lots of bottled water always a good recommendation.

Source:http://www.business-in-asia.com

International Economics and Business

INCOTERMS 2010

Tuesday, March 1, 2011

How to Start a Serious Business With £2,000

Introduction

Coming to an Agreement in Negotiation

Coming to an Agreement

Planning and How to Negotiate

Pre-Negotiation

Negotiation Skills

Introduction

Thursday, February 17, 2011

Five Biggest Mistakes That Entrepreneurs Make

Top 10 Mistakes New Business Owners Make

Vietnam Economic Update for the Year 2011

Useful Tips for Exporting in Vietnam

Tips for Vietnam Exporters