Tag: 📖 Learning

  • Lewin’s Change Management Model

    Change is one of the core concepts in the world of business. Organizations and entities that do not keep up with the changes in the status quo cease functioning sooner or later. Therefore, organizations need to evolve consistently to remain visible.

    Although we are familiar with the need to change, we somehow can’t manage to change with time. Flexibility with respect to one’s plans and planning is essential. Complex procedures can make it difficult for organizations and institutions to incorporate changes or deviations.

    To alleviate this problem of change management, Kurt Lewin devised a simple method to enable organizations to transition easily. Though Kurt Lewin’s change management model was launched in 1940, it is still the most effective method for implementing organizational changes.

    What is Lewin’s Change Management Model?
    How does Lewin’s Change Management Model Work?
    Advantages of Lewin’s Change Management Model
    Disadvantages of Lewin’s Change Management Model

    What is Lewin’s Change Management Model?

    Lewin's Change Management Model
    An Insight into Lewin’s Change Model

    Lewin’s change management model is a three-stage model which can be easily adopted by any business entity. The three stages are unfreeze, change, and refreeze. The model allows organizations to adapt quickly in challenging and rapidly evolving environments.

    This change model involves making the organization environment-ready to incorporate one or more changes, implementing the required changes, and then making the organization stable after change implementation. These three stages don’t disrupt the business’s workflow.


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    How does Lewin’s Change Management Model Work?

    Suppose you have a cube of ice and you want to turn it into a conical structure. What will your first step be? You cannot directly transform the cubical piece of ice into a cone, right?

    You first need to bring the ice cube into liquid form. You will then use an ice cream cone-shaper to turn the cube into a cone. Finally, you will freeze the liquid to transform it into solid ice.

    Kurt Lewin used the same philosophy of ice to explain his change management model. The ice was turned into a liquid form from solidity (unfreeze). The second step is implementing the change which he explained by turning its shape into a conical form (change). And the last step is freezing the liquid again to turn it into ice (refreeze).

    Let’s dive into each step to understand Lewin’s model.

    Lewin's Change Management Process
    Lewin’s Change Management Process

    Unfreeze

    The first step before making a change is to get the employees change-ready. The employees must be aware of the upcoming change and the need for the change.

    Lewin’s concept behind the process was that employees become motivated to change if they understand the reason behind incorporating the change. Therefore, employees must be informed about the plan(s).

    Change

    The second stage involves making the required changes within the organization. It is the most crucial step that give a tangible shape to the change. In this stage, the organization develops new ideas and strategies to implement the changes.

    If the organization is not well-prepared for the change, it may create a lot of problems while implementing the change. So strong pre-planning is a must to apply the modifications hassle-free.

    Refreeze

    The last stage of refreezing is performed to ensure that the system is working according to the new changes. In this stage, the organization is made stable with respect to the new changes. The organization resumes functioning and the business gets back on track.


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    Advantages of Lewin’s Change Management Model

    Lewin’s change management theory is easy to understand and implement in a business organization. Unlike other methods, the change management model is easy to implement. It requires only a few steps which can be performed within a short span of time.

    The change management theory follows an efficient method which doesn’t impact business continuity. Any on-going business can easily implement this model and make the required changes.

    Disadvantages of Lewin’s Change Management Model

    The major disadvantage of the change management theory is the insecurity among employees. Employees tend to get worried about their performance when they hear about a new change. It creates a doubt in their mind whether they would be able to effectively perform their job or not.

    Another major disadvantage is the refreezing stage. It requires a lot of time to freeze and settle down with the new changes. As the changes continue to take place in a challenging environment, the organization may not have the time to get used to the modifications.

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    FAQs

    How do you use Lewin’s change model?

    The 3 stages of change under Lewin’s change model are:

    • Step 1: Unfreeze. Lewin identifies human behavior, with respect to change, as a quasi-stationary equilibrium state.
    • Step 2: Change. Once you’ve “unfrozen” the status quo, you may begin to implement your change.
    • Step 3: Refreeze. Ensure that there’s stability once the change is in place.

    Why use Lewin’s change model?

    Lewin’s change management theory helps account for both the uncertainty and resistance to change that can be experienced at all staff levels within an organization.

    What is Lewin’s change model?

    Kurt Lewin developed a change management model involving three steps: unfreezing, changing, and refreezing. For Lewin, the process of change entails creating the perception that a change is needed, then moving towards the new, desired level of behavior and finally, solidifying that new behavior as the norm.

  • How to Buy Advertising on Telegram?

    Telegram remains a free messenger, with more than 500 million users all across the globe. It is also an alluring channel for advertisers. Some paid functions were announced in December 2020, and advertisements began to appear on channels with more than 1000 followers in October 2021.

    Pavel Durov, the founder of Telegram, states that “Telegram became the most downloaded mobile app in the world in January 2021. For the last 7.5 years, Telegram has steadily climbed the rankings for popular apps. Since its launch in 2013, Telegram’s user base has grown over 40% each year.”

    According to Telega.io exchange research, the Russian-speaking market capacity of Telegram channels touched $168.9M.

    Did you know that 74.7% of total advertising traffic is allocated among the 10 most popular categories, which include “Business and Finance” (20.1%), “Women’s Section” (9%), “Mass Media” (7.9%), “Culture, Education and Arts” (6.1%), “Sports” (5.9%) and “Internet and Marketing” (5.9%)?

    Daniel Zee, a visionary with Telega.io and the author of the free Telegram promotion video series, talked of introducing advertisements in the messenger. Besides, Pavel Dorov, the Telegram founder has publicly shared the plan to introduce ads on the platform in December 2020. News reported that the first advertisements appeared on Telegram during the first week of November 2021.  

    Why should you post your advertisements on Telegram?

    Telegram paid promotion has been a rage ever since the launch of ads on Telegram. Advertising on Telegram is easy and the most important fact is that the Telegram promotion offers numerous advantages. These are:

    Advertising transactions cost less

    Find a targeted audience cheaper than Instagram and YouTube. You would get access to the same core target group that follows and trusts a blogger that they follow.  

    Native screen allocation and instant message format

    Almost every Telegram subscriber is a reader. Marketing content is allocated naturally, and thanks to instant notifications, the message can’t be lost in the feed, which is something that you always have problems with on Facebook or Instagram.

    A marketing message occupies 100% of the screen space in Telegram, unlike some decent, three-columned sites where it would occupy only 2%. Taking into account a relatively high CPM (Cost Per Mille, meaning cost per 1k of views), such posting conversion is also higher.

    International market entering

    According to App Annie study, Telegram is the most popular in India, followed by Indonesia, and Russia occupies third place. And after that, we have the USA, Malaysia, Spain, France, Germany, Italy, Brazil, Egypt, and UAE. IT entrepreneurs can now promote their products easier and faster, even in most winning markets.

    How do I haggle, write a quality post, and measure efficiency? And what do I pay attention to when choosing a channel?

    How to Pay for an Ad and Manage Paperwork?

    Some Telegram channel owners are self-employed. And the majority prefer remittance: Paypal, Visa/MasterCard, etc.

    If you deal with a channel admin, be sure to compare his username to the one in the channel description. They must match. If they don’t, it can be fraud, which happens rather often. Notice that in order to contact a true channel admin, you should follow a link in the channel description. Never search for it online.

    Legal entities have a bit more trouble posting an ad in Telegram, as they need some confirmation papers. Here, the most convenient and easy way to get confirmation is to use the Ad Exchange services. They offer all the necessary papers to confirm each case.

    How to Write Quality Post?

    It is really important to adapt your content for the channel, and mostly people tend to overlook this part. However, there are admins who rewrite texts following their own unique style, but those aren’t common. In most cases, you should send text ready to post.

    Here are a few pieces of advice regarding text editing:

    –          Create a clear call to action and introduce the link into the text or a button
    –          Think post allocation through (eye-catching heading, bullets, paragraphs)
    –          Make text useful, as it must not resemble an intrusive advertisement
    –          Prepare some quality images
    –          Don’t overuse emojis
    –          Add some attractive offers (a promo code or some free stuff on subscription)
    –          Be sure to remove previews in YouTube videos if you want to increase views
    –          Make text more legible using allocation, italics, and/or listing
    –          Apply software to proofread and finalize the text, as mistakes are irritating

    How to Check Ad Efficiency?

    Checking the advertisement efficiency is vital if you think that you should advertise on a media like Telegram. Here are some of the easy ways you can check Telegram ad efficiency:

    In case you promote other channels

    The core value here is the value of follower acquisition. You pay $50 and you get 25 users; that makes it $2 per subscriber (and it is cheap). There are no pricing standards here, as it depends on the channel, content, topic, and season. Test different channels, and over time, you will understand the cost of a subscriber in your topic.

    In case you have a website or apps to advertise

    Utilize UTM to view some business intelligence, such as the lead amount. However, transferring users from your main platform isn’t the best solution, and it is better to revert to Telegram.

    Firstly, a site can be poorly optimized for mobile access. Secondly, redirection to another site often results in 90% traffic loss. People aren’t particularly happy to move somewhere, especially after receiving dozens of notifications and a message from Mom on top of that.

    What is best?

    Keep in mind that you can sell almost any services or goods via Telegram. A chatbot is a perfect tool for that. Conversion goes up immediately, and statistics provide you with advert feedback (the number of users who launched the bot and use it on a regular basis).

    Telegram First. And this statement holds true for a brand new marketing campaign or a new company. You create a channel first and then a bot for it. Some mobile support sites and apps are to be launched later on when the company (or campaign) is a success.

    You can then launch another channel, transfer all the landing data to it, and add a purchase button.

    How to avoid the wastage of marketing funds?

    You should test your content before posting. Choose 1–3 channels, publish it, and monitor the feedback (subscribers, purchases, clicks, and bot accessing).

    Next, edit the text and try to purchase all the relevant channels. There aren’t many truly quality ones, and posting will still be cheaper than on various other sites.

    If you are not bound by geography, try to purchase your Telegram topic in advance (six months ahead would be great). And neighboring niche purchases are to be stretched ahead for three months. Update your main niches once in 30 days and once in three months in neighboring ones.

    What should those with limited funds do?

    It is the same. Test your post, improve it, and purchase on the 2–3 best channels (pretest them too). Some online services or exchanges will help you compare sites and choose the best there is to offer.

    A lower Telegram ad test funding limit is $1,000 ($2,000 would do better, though). It would enable you to purchase just enough posts to find out whether it is worth following a chosen strategy.

    Use promo code Talky3 to get your 3% Telega.io Ad Exchange discount for:
    — a catalog of 750 pre-moderated, carefully chosen channels;
    — hot deals bot and discounts;
    — free channel analytics before posting;
    — thorough report, confirmation papers, remittance;
    — agency contacts including NDA and procurement conditions and terms.

  • Top 7 Tech Trends Every HR Must Look Out for in 2021

    Technology has an impact on every industry. The recruitment industry has also been influenced by various technologies in past. The industry is experiencing rapid growth as a new players are entering the market. Technology has advanced at a ridiculous pace in the last ten years. Every company should be updated about upcoming tech trends in the market. As we near the end of 2020 lets look at some Top Tech Trends Every HR Must know in 2021.

    Artificial Intelligence in The Recruitment Process
    Feedback Tools to Improve Engagement
    On the Job Training
    Employee Experience Platforms
    Data Analytics Transforming HR
    Cloud based HR
    Giving importance of the employees mental health

    Artificial Intelligence in The Recruitment Process

    HR tech trends in 2021
    HR tech trends in 2021

    One of the most well known tech trend in HR is the use of Artificial intelligence which growing exponentially in every field from health to teaching to everything. In 2021, AI will play a major role in the recruitment and hiring process. AI can save the time of recruiters to screen and shortlist candidates. The recruitment process will also speed up with the help of AI as it can answer repetitive questions through a chatbot.


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    Feedback Tools to Improve Engagement

    Every organization wants to improve workforce engagement. As an HR it is important to ensure that your employees are passionate about their jobs. Various feedback tools are available to improve the workplace environment and employee engagement tools for employees. There’s a lot of distractions in the modern workplace, especially for employees who use internet-connected devices to complete their daily tasks. These feedback tools will help management to better understand their employees. There are various Employee Engagement Software and Tools in 2021

    On the Job Training

    On the job training is an important top trends of HR that helps in the prosperous growth of the organization. Employees require continuous mentorship and skill development training to perform well in their jobs. On job training helps employees get business demands met more promptly. This also develops a great mindset of always learning in employees. Many companies have adopted Different Policies to Upskill the Employees.

    Top HR trends of 2021

    Employee Experience Platforms

    There are various platforms available to rate companies on their Employee Experience. Employees don’t hesitate to share their experience on these platforms which can affect the company’s reputation. A positive employee experience makes it easier for companies to attract top talent in this competitive market. This generation is the largest part of the workforce and it is important to join millennials in your workforce.


    How to Inspire Employees to Work – Guide to Retain Employees
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    Data Analytics Transforming HR

    Many organizations employ data analytics tools in human resources to improve hiring decisions. It can also help to identify factors that have the most significant influence on the employee. Employee data can be used to create a personalized experience to engage employees. Data analytics can be presented visually in graphics or statistical reports to better understand and take action.

    Technology has advanced at a ridiculous pace in the last ten years. HR needs to identify the best workforce for their organization. The impact of technology has also enhanced the hiring experience for both the candidates and the hiring teams. Various tools and technologies are available for HR to facilitate the recruitment process.

    Cloud based HR

    The HR department is known to help key functions such as recruiting, managing the data of the employees managing the employees performance, hiring, etc. One thing they all have in common is data processing. Before the cloud based solutions like PeopleSoft, the HR managers would take care of all these details. Which is why with the introduction with cloud based HR solutions improving the process of hiring, getting an employer brand and updating information and data security.

    Giving importance of the employees mental health

    The mental health of the employees must be given importance because they are what make or break the company. For taking care of their wellbeing the HR department can hold a weekly office yoga session or a healthy Friday. Not only that the the physical, and financial health of the employees must also be given equal importance. And as such, the number one condition when it comes to getting your workforce ready for the future.

    Frequently asked questions – FAQs

    What do HR department do?

    The HR takes care of the employer branding, recruitment or selection, Onboarding, performance management, learning and development and most importantly workplace safety and culture.

    What does a HR manager do?

    The HR manager has a lot of responsibilities such as managing their internal team, stakeholder management, making new policies for recruitment etc.

    What does an HR analyst do?

    The HR analyst works on the collection, analysis, and reporting of data.

    Adding new tech trends to the HR departments in improving the HR policies, growth of organisation helps in performing the basic functions of HR  like recruiting, onboarding, training the employees, etc.

  • Multitasking Affects Productivity and Brain Health

    Multitasking means trying to perform two or more tasks concurrently, which typically leads to repeatedly switching between tasks (i.e., task switching) or leaving one task unfinished to do another. Multitasking seems like a great way to get a lot done at once. The brain works most efficiently when it can focus on a single task for a longer period. Research shows that multitasking, which means performing several tasks at the same time, reduces productivity by as much as 40%. Research has demonstrated that multitasking affects productivity and brain health. If you are doing several different things at once, then you may be what researchers refer to as a “heavy multitasker.” According to several different studies, however, you are probably not as effective as you think you are.

    Multitasking while studying significantly reduces students’ ability to recall information. Performing a second cognitive task while studying reduced students’ ability to remember a list of words by 33 % compared to a control group.

    What multitasking does to your brain

    ‘Social media is nothing but multitasking, with several parallel plots and issues. You might end up reading the news or playing a game recommended by a friend. From the brain’s perspective, social media only increases the load.’

    Effect of Multitasking
    How the Brain Works
    Multitasking Bad for Students
    Multitasking Behaviors
    Multitasking Damages Brain and Career
    Multitasking Lowers IQ
    Media Multitasking
    Tips to Stop Multitasking

    Effect of Multitasking

    According to neuroscientists, our brains aren’t built to do more than one thing at a time. And when we try to multitask, we damage our brains in ways that negatively affect our well-being, mental performance, and productivity.

    • Multitasking can lead to permanent brain damage – Involving the use of media devices, could permanently alter brain structure after a long period of usage.
    • Multitasking reduces efficiency and mental performance – When we toggle between tasks, the process often feels seamless, but in reality, it requires a series of small shifts. It ruins productivity, causes mistakes and impedes creative thought.
    • Multitasking reduces focus and concentration – Multitasking creates a dopamine-addiction feedback loop, effectively rewarding the brain for losing focus and for constantly searching for external stimulation.
    Dopamine-addiction feedback loop
    Dopamine-addiction feedback loop
    • Multitasking could make you dumber – Human information processing is insufficient for attending to multiple input streams and for performing simultaneous tasks. quality focus and attention are required for learning, multitasking hinders our ability to learn and interpret information effectively.
    • Multitasking creates stress and anxiety – Various studies have shown that multitasking increases our brain’s production of cortisol, a hormone that creates stress. Excess cortisol is produced, when we switch between reading and responding to emails.
    • Multitasking kills creativity – Innovative thinking, after all, comes from extended concentration. When you try to multitask, you typically don’t get far enough down.
    • Multitasking could reduce emotional intelligence – Emotional intelligence is a common trait within 90% of top performers in any field. Multitasking could damage the part of the brain — the anterior cingulate cortex — responsible for emotional intelligence. The two key components of emotional intelligence, self and social awareness, could diminish significantly due to multitasking.
    • Multitasking causes overwhelm and burnout – Shift attention from one activity to another causes the prefrontal cortex and striatum to burn up oxygenated glucose, the same fuel they need to stay on task. Multitasking causes the brain to burn so quickly we feel exhausted and disoriented after even a short time.
    • Multitasking leads to stupid decisions – One of the first things we lose is impulse control. Multitasking also hurts decision-making skills.

    Pros And Cons Of Multitasking
    Imagine it’s Sunday night and you’re on your laptop with few browser windowsopen. Now, your email inbox gets flooded with the tasks unfinished and nowyou’re going to rush things to get it done. These multiple tabs, you keep themswitching; so, in other words, you’re multitasking. > Talking practi


    How the Brain Works

    In the brain, multitasking is managed by executive functions. These control and manage cognitive processes and determine how, when, and in what order certain tasks are performed.

    There are two stages to the executive control process:

    • Goal shifting: Deciding to do one thing instead of another
    • Role activation: This turns off the rules (how the brain completes a given task) for the previous task and turns on the rules for the new task

    So, when you think you are multitasking you are switching your goals and turning the respective rules on and off in rapid succession. The switches are fast (tenths of a second) so you may not notice them, but those delays and the loss of focus can add up.

    Functions of Brain
    Functions of Brain

    Multitasking Bad for Students

    In today’s digital world, students have more and more things competing for their attention, whether it’s checking social media while studying or trying to complete multiple homework assignments at once. A study by Common Sense Media found that half of the teens say they often watch TV or use social media while doing homework, and 60%say they text while doing homework. Multitasking can have several negative effects on learning.

    The negative effect of multitasking on students:

    • A weaker grasp on the information being learned
    • Poor retention of the material students have studied
    • Higher levels of stress and frustration
    • Brain drain from tackling too many tasks at once
    • Distractions leading to more time required to complete each task

    Students can break the habit of multitasking with the following tips:

    • Turn off the cell phone
    • Put away anything that is not needed
    • Use time wisely
    • Stick to a study schedule
    • Block distracting websites
    • Don’t study in front of the television
    • Work in a quiet space

    Multitasking Behaviors

    The prefrontal cortex has been frequently implicated as a brain region that mediates multitasking and the switching processes. Multitasking is commonly shown to impair cognitive performance, as each switch results in a reduction in performance compared to doing one task at a time.

    7 Simple Steps to Train Your Brain to Multitask Effectively
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    Multitasking Damages Brain and Career

    Research conducted at Stanford University found that multitasking is less productive than doing a single thing at a time. They found that heavy multitaskers—those who multitask a lot and feel that it boosts their performance—were worse at multitasking than those who like to do a single thing at a time.

    Multitasking reduces your efficiency and performance because your brain can only focus on one thing at a time. When you try to do two things at once, your brain cannot perform both tasks successfully.

    Multitasking Lowers IQ

    Multitasking lowers your IQ. IQ drops of 15 points for multitasking men lowered their scores to the average range of an 8-year-old child. It slows you down and decreases the quality of your work. According to extensive research, multitasking makes you and the people around you measurably less intelligent. When you’re multitasking, you reduce your intelligence, as measured by your ability to comprehend what you’re seeing and hearing.

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    Media Multitasking

    Media and technology are very much important elements of our daily lives, and their use can offer many benefits and rewards. Media multitasking among youth has raised concerns regarding its negative effects on youths’ functioning. Heavy multitaskers perform significantly worse, particularly when the tasks require sustained, goal-oriented attention.

    When we complete all these small actions, such as respond to email, tweet, or check a text, it creates a sense of accomplishment even though little to no critical thinking has taken place and in reality, not much is getting done. Every time a task is completed, our brains release a little dose of dopamine which is a reward hormone generating feelings of happiness and contentment.

    Monotasking vs Multitasking
    Monotasking vs Multitasking

    Tips to Stop Multitasking

    The best way to protect your brain is to practice single-taking. Focus on one thing at a time and take breaks every hour and a half, to regain your energy. Work in a distraction-free environment — keep phones and media devices out of sight.

    • Do important things first in the morning
    • Avoid distractions by getting away from distractions
    • Establish a regular schedule to think long-term
    • Take the real and regular test
    • Schedule time for individual tasks
    • Don’t start your morning by looking at your phone
    • Create a list of daily priorities
    • Be prepared to say no
    • Keep work areas clean and organized
    • Be aware of your multitasking habits
    • Consider apps that block distractions
    • Turn your phone off when you’re not using it
    • Schedule multiple breaks
    • Strengthen your focus
  • Inexpensive Marketing Ideas For Small Business

    For scaling up every business, marketing is necessary. Without marketing any business can not be able to generate much revenue. Marketing is important to engage customers. With marketing, any business helps to build and maintain the company’s reputation. Marketing helps to build a relationship between a business and its customers. Every business whether it is small or large wants to boost sales. For small businesses, they don’t have much capital to market their business on large scale. So, there are many inexpensive marketing ideas for a small business that will be affordable. As marketing helps the management team to make informed decisions. Good marketing beats the competition, delights the customer, and returns well in comparison to investment.

    Growth of Marketing
    Growth of Marketing

    In this article, we will discuss all the low-cost marketing ideas for small businesses so that small businesses should implement these ideas and look for a great profit.

    1. Publish Great Content

    Content doesn’t just mean posting lengthy reports or news posts, content can be videos, blog posts, slideshows, or images. Content helps you attract, engage, and delight prospects and customers, bring new visitors to your site, and ultimately, generate revenue for your company. Content marketing brings in 3X as many leads as traditional marketing and costs 62% less. Companies that publish about 16 blog posts per month get 3.5X more traffic than those that post four or fewer posts per month. A good starting point for your content strategy plan is to set out a content marketing mission statement.

    A content marketing statement contains the following points:

    • Your target audience
    • The content you’ll use to reach them
    • The benefit they’ll get

    Your goal about publishing great content must contain the following aspects:

    • Improving more revenue
    • Making more sales
    • Getting more traffic to your site
    • Gain influence and authority
    • SEO success
    • Always reduced marketing costs as much as possible
    • Social media engagement

    2. Website

    Making a website is one of the important marketing tools. Any website with valuable content and great visuals keep your business far from your competitors and increase your revenue. Simply website marketing means promoting a business website to bring more visitors. Website marketing strategy needs to focus on getting more people to your site in the first place.

    Website marketing strategy must include the following points:

    • Optimizing your website for search engines so more people can find you
    • Promoting your website on social media
    • Advertise on social media platforms (Instagram or Facebook ads etc.)
    • Offer a webinar or sales demo (live or recorded)
    • Offer downloadable educational resources like white papers, e-Books, ultimate guides, etc.
    • Running a contest or giveaway

    Low-Cost Marketing Strategies For Startups| Low Budget Marketing Ideas
    Though it’s a fact that you have to spend money to make money, especially inmarketing. However, the rise of social media and digital marketing has made iteasier and quite inexpensive to market a business. However, today, even a smallbusiness startup entrepreneur can be creative with their marketi


    3. Create Instructional Videos

    According to a recent TechSmith study, 53 % of people reported watching two or more instructional videos per week. Instructional videos are the best delivery method if you’re serious about teaching others, growing your business, or building an online course. You should learn about your target audience and its main points. You must set a clear learning objective. Short instructional videos that focus on teaching one specific topic.

    4. Business Partnerships

    A business partnership is a way of organizing a company that is owned and sometimes run by two or more people or entities. Creating the partnership agreement and setting up the proper entity/structure for the partnership are the two most important steps in the partnership process. The best structure for a partnership is the limited liability company (LLC).

    Types of partnerships:

    • General partnership: A general partnership is the most basic form of partnership. It does not require forming a business entity with the state. In most cases, partners form their business by signing a partnership agreement.
    • Limited partnership: Limited partnerships (LPs) are formal business entities authorized by the state. They have at least one general partner who is fully responsible for the business and one or more limited partners who provide money but do not actively manage the business.
    • Limited liability partnership: A limited liability partnership (LLP) operates as a general partnership, with all partners actively managing the business, but it limits their liability for one another’s actions.
    • Limited liability limited partnership: A limited liability limited partnership (LLLP) is a newer type of partnership available in some states. It operates like an LP, with at least one general partner who manages the business, but the LLLP limits the general partner’s liability so all partners have liability protection.

    5. Marketing to Existing Customers

    Marketing
    Marketing

    From survey found that marketers spend on average just 21 % of their marketing budgets on existing customers. The more customers that you can keep and continue to sell to, the more likely you are to achieve your business goals. According to Marketing Metrics, the success rate of selling to an existing customer is 60-70%, while the success rate of selling to a new customer is only 5-20%.

    The benefits of customer marketing:

    • Better customer retention
    • More referrals and positive word-of-mouth
    • Customer marketing means social proof
    • Satisfied customers can provide a steady stream of referral business
    • Better conversion rates from existing customers
    • Golden opportunity to improve your offering and customer satisfaction rates
    • According to Bain and Company, attracting new customers will cost your company 5-25 times more than keeping an existing customer

    6. Local Marketing

    Local marketing is a beautiful mix of search engine optimization, pay-per-click marketing, content marketing, and social media advertising. You can reach out to local reporters. Local marketing is a strategy that targets potential customers within a specific radius. Local marketing is especially important for small and medium-sized businesses that rely on people visiting their physical location to purchase goods or access a service, including shops, dentists, physiotherapists, bars, restaurants, and car dealerships. In local marketing, you can go to shop for your digital and print advertisements.

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    7. Social Media

    Social Media Marketing
    Social Media Marketing

    Social media marketing is the use of social media platforms and websites to promote a product or service. Social media marketing is a powerful way for businesses of all sizes to reach prospects and customers. Social media marketing includes activities like posting text and image updates, videos, and other content that drives audience engagement, as well as paid social media advertising.

    • Facebook: Best for brand awareness, advertising
    • Twitter: Best for public relations, customer service
    • Instagram: Best for natural-looking media, behind-the-scenes, and user-generated content, advertising
    • LinkedIn: Best for B2B relationships, business development, and employment marketing
    • YouTube: Best for brand awareness, entertainment, and how-to videos
    • Snapchat: Best for brand awareness, advertising
    • Pinterest: Best for visual advertising, inspiration

    Benefits of Social Media Marketing:

    • Increase brand awareness
    • Generate leads and boost conversions
    • Learn from competitors
    • More inbound traffic
    • Higher conversion rates
    • Better customer satisfaction
    • Gain marketplace insights
    • Faster and easier communication
    • Networking & Partnerships become simple
    • Customer feedback
    • Impress potential customers

    8. SMS Marketing

    SMS Marketing is sending promotional campaigns or transactional messages for marketing purposes using text messages (SMS). Text messaging is a very effective and direct line of communication to the customer. SMS marketing offers vast opportunities for engaging with the audience, limited only by creativity and the size of the phone number list. SMS campaign takes 3-6 seconds for the delivery. Speed is an essential factor in SMS marketing efficiency.

    9. Google My Business

    A Google My Business account lets you show up in search results when people are looking for you online. It’s free, which makes it an affordable marketing tool for small and big businesses alike. A Google My Business account lets you keep customers informed. Customers are 70% more likely to visit businesses with a Google My Business listing. Google My Business reviews help in building trust. Google finds that 88% of consumers trust online reviews as much as personal recommendations.

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    10. Email marketing

    Email marketing is the process of targeting your audience and customers through email. Email marketing helps you connect with your audience to promote your brand and increase sales. You can do a lot of things with emails, like sell products, share some news, improve your rating, or tell a story. There are 3.8 billion email users worldwide, so if you’re looking for a way to reach your customers, email is the perfect place to find them. When it comes to customer acquisition, email is 40 times more effective than Facebook and Twitter combined.

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    11. Pamphlet Distribution

    Pamphlet distribution is a paper flyer that is inserted into the newspapers. With newspaper insertion, you have the most cost-effective method of advertising. Leaflets can grab attention in better ways than digital marketing like tweets and emails cannot. Leaflets can showcase your product or service to new customers also increase attendance for your events and exhibitions.

    12. Newspaper Advertising

    Newspapers are released daily. Newspapers are a suitable medium for goods requiring mass advertisement. Newspaper advertisements must be ‘catchy and attractive’. Local newspaper costs tend to be relatively low and focus your ad on a specific geographic market. Advertising costs do increase with national newspapers, but the audience is so much wider than the value offsets the extra investment. Newspaper advertising allows you to place your content wherever you want. Newspaper advertising typically costs less per thousand readers than television, radio, and direct mail advertising.

  • 2020/2021 Sound Trends: What to Look Out For

    People simply love to listen; from traditional oral storytelling ways of our forefathers to modern ways of expressing creativity using the most advanced digital technologies. Recent years have seen the sound industry grow exponentially. People are getting more and more comfortable with a multitude of mediums in which they can consume audio content.  Podcasts, smart speakers are a few elements that go to show that sound has shifted from just being a niche area to growing to a mainstream platform.

    Sound whether it’s in the form of spoken word, music, songs or other noises, has become an instrumental feature in the marketing mix. An interesting fact to note is that visual marketing has always been everywhere, however, sound dominates. Sound is known to allow businesses to differentiate themselves in their advertising from others. The role of passive listening cannot be overemphasized in our lives.

    Sound management has been faced with its fair share of pros and cons year after year. When it comes to trends, sound technology has slowly revolutionized our lifestyle. For this year and beyond, here are some few top trends one should look out for;

    Wireless Revolution

    Wireless audio arguably sounds better. Truth be told, wired headphones are dated and becoming a thing of the past. Some challenges come with the headphone jack that causes many of their cords to snap. Startup companies ought to hop onto the wireless way of doing things including planning their sound space and brand. They are encouraged to stock on quality instruments to record their projects be it podcasts or ads like the one you find on radio studios.

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    Interaction with Music

    Music is an important feature of our lives. It plays a pivotal role in many audiovisual projects. Be it in ads, films or movies, music has always been present to some degree. Music strengthens the relationship between music composition and moving images.

    Active Audience Participation

    The internet and online accessibility have never been more powerful than it is today. The advancement of technology allows users to actively interact with content that is being put out. Many brands are exploiting ways to let fans be involved in the projects they are working on.

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    Making Everything Mini

    With minimalism taking control in almost all aspects of our lives, the sound has also hopped onto this trend. Devices are nowadays designed to be small and refined. The shape of mobile devices such as phones and iPads for instance, make life practical and easy. Big tech companies have started to take the environment seriously and are designing gadgets that are eco-friendly and sustainably sourced.

    Embrace More DIY

    Technology has brought about the need for people to grow their craft. Millennials are actively involving themselves with DIY projects to sharpen their skill or simply learn something new. People are no longer shy to experiment with different sounds from a different source, not only those confined in the studio. Some are even going to the extent of creating their own sounds using old industrial machines that capture natural noises. The result of this has led to some adventurous and authentic sounds that are pleasing to the ear.

  • What to Consider when Starting a Home Care Agency

    As living conditions and standards of healthcare improve, it’s no secret that we’re getting older. The United Nations reports that the proportion of older people is growing in almost every country’s population. Demand for care services is growing as a result – including those delivered in the comfort of people’s own homes.

    Care professionals have been thrust in the spotlight this year as the UK continues to battle the COVID-19 pandemic. If you feel as if you could help out and even launch your own home care agency, there are several important considerations along the way.

    Below we outline key points to think about before joining the care industry.

    Your business plan

    Home care agencies can provide a range of care services to clients in their homes, from nursing to personal care, housekeeping, cooking and social activities. Deciding how you plan to operate is the first step and will determine the staff and qualifications you go after.

    Research what care is available in your local area to help you gauge demand and identify gaps and opportunities.

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    Experience and qualifications

    Home care agencies require a qualified registered manager to ensure they comply with regulations. Alongside this, your care staff will need qualifications specific to your care setting, including common inductions standards (CIS) training.

    All care services are rightfully scrutinised, so you’ll also need to register with the relevant regulator – the Care Quality Commission oversees providers in England – and prove that you’re capable and professional.

    Key costs and requirements

    There are a range of start-up costs to factor in with home care agencies, including insurance, equipment, staff salaries and training, and marketing costs. Extra outgoings might include care provider software and the purchase of a minibus for client transport.

    You may need to raise external finance if you’re lacking on savings. You could save on office rental costs by managing your agency remotely, however.

    Recruitment

    It’s often said that a business is only as good as its people – and that’s particularly true for home care agencies.

    Think about the type of professionals you’re looking for and where you might attract them. You may want to consider apprentices alongside other local candidates.

    All potential staff will need to undergo DBS checks, CIS training and induction training. It may seem like a burden at first – but hiring and training carers properly will be crucial to your long-term success.

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    Attracting clients

    With a strong foundation in place, all that’s left is to find some people to care for!

    You can do this both privately and through local authorities. Finding work through your council may be simpler at first – but could also pay and scale poorly in the long run.

    Attracting private sector clients will require marketing through digital and traditional channels, including leaflet drops in key areas, to get your name out there.

    With more knowledge of what’s involved, could starting a home care agency be a good career option for you?

  • Overcoming Indian E-commerce Business Challenges

    Increasing at a generous rate of 10-15% every year, the Indian e-commerce sector has been upgrading and expanding its consumer base. With the world going digital day by day Indian E-commerce sectors are constantly trying to make shopping and services as smooth as possible. No doubt, this easiness takes countless efforts. However, to be conscious of all the upcoming challenges about your own business one has to understand the challenges overcome by Indian e-commerce businesses!

    The Indian e-commerce market is on constant lookout to know about their consumer preferences. Be it clothing, food, home dĂ©cor etc., e-commerce organizations make sure they’ve got a cutthroat competition among themselves. After the United States, India holds the second-largest position in the e-commerce market globally.

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    Considering the diverse and colossal population of India, it is beyond doubt a quality market ready to explore. Alright! So let’s jump into the challenges faced by e-commerce companies and how they are enhancing themselves as the day goes by.

    Understanding your Customers
    Website and Search Optimization
    Customer’s Buying Trends Awareness
    Efficient Return Methods
    Easy Multiple Payment Options
    Supply Network

    Understanding your Customers

    Customers love personalization! Provide them with the things they exactly need and they’ll stay loyal to your company and brand for a long time. However, there are thousands of customers, and personalizing things for each and every customer is a strenuous task which e-commerce companies overcome, flawlessly.

    From establishing algorithms to show similar items, to loading the website page in 1 second, are all parts of personalization. By loading the website much faster than others the chances of making more sales increase. Almost 70% consumers agree to the impact of page speed on making purchases, survey from Unbounce. The rest depends upon the quality and reviews of your product. It is quite simple, keep your customers happy!

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    Knowing your consumer’s buying trend and sending notifications about their favourite items is something customers absolutely adore. Indian e-commerce websites do this by unimpaired optimization of their website. They make sure they stand out from the crowd and bag more deals by personalizing as much a possible.

    Website and Search Optimization

    Search Engine Optimization (SEO), Digital Marketing, Social Media, Keyword Analysis, etc are a few skills that are extremely important for any e-commerce sector. Here, search results play a crucial role to convert your audience into customers. Suggesting a product of interest is still an incomplete sale but making it compelling for consumer to not have second thoughts is the deal.

    A few e-commerce websites make sure they add fantastic coupons and promo codes that keep their consumers glued to their company.
    Eg: Uber Eats sold Square Pizzas worth Rs.30 on their website and this became extremely popular among college students for their pockets and love for pizza, it was a major hit.

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    Different types of people make contrasting choices depending upon various factors like age, gender, experiences, interests, etc. Some of them are impulsive buyers waiting for the trigger. A business has to be aware of what the customer demands might be in the near future and prepare accordingly.

    Simply put, to convert leads into sales, e-commerce businesses have to be aware and prepare for upcoming demands. To execute this flawlessly, collected data plays an important role. It’s imperative for businesses to catch certain keywords by the customers as well so that they know what a potential customer might wish to buy in the near future.

    Through artificial intelligence, e-commerce businesses keep an eye on everything. One might say that companies sell data to make suggestions that pop up on your social media. The advancement in technology is bringing up closer and helping people live up to their business dreams.

    Efficient Return Methods

    Since customers are unable to hand touch the products they buy they often resort to considering reviews. However, at times customers are still unsatisfied with certain products and wish to return them. In such cases, having a simple and efficient exchanging method helps to reduce customer’s anxiety and irritation.

    E-commerce businesses have to make sure that they have an easy return policy. When the return policies are too tedious, customers tend to keep the product and resort to negative word of mouth publicity or a bad review. This holistically affects the website’s reputation. Therefore companies make sure, that they are absolutely secure on this end by helping the customer.

    This is a major challenge for small e-commerce businesses as they have to pay extra logistics fee for singular items. Established businesses can pull this off, but sometimes they don’t and this leads to a downfall in their reputation.

    Easy Multiple Payment Options

    We’re going digital. We hardly use our physical wallets anymore. G-pay, PayPal etc are our wallets today and e-commerce business have to make sure that they are available on all channels whether national or international. Though the COD (Cash On Delivery) option is still used, most often resort to prepaying through credit and debit cards.

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    Since the lockdown, most money transactions are taking place online therefore it is imperative for all kinds of businesses, small or big to have multiple payment options for a smooth-running business.

    Failing to do so, especially in online shopping, if the customer finds any sort of restriction on any product they absolutely wish to buy they will visit competitor site and convert them into sales. This is horrific for a business. Therefore, most e-commerce businesses create deals and options to have their buyers hooked onto them.

    Supply Network

    A transaction is not entirely complete unless the product reaches the customer’s hand. There are times when deliveries are not up to mark. Problems like late deliveries or damaged products are unactable by the customers. E-commerce businesses have to make sure their products are properly sealed and delivered to their customer’s addresses.

    Quality research is important for hassle-free and timely deliveries. E-commerce platforms partner up with reputed logistics companies to make sure the products are safe and sound and satisfy the customers. When talking about Indian e-commerce businesses, one has to take special care of unavailability and difficult access to areas.

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    Conclusion

    Indian E-commerce businesses have to overcome major challenges, every day. They beat all odds and make sure their business shine and are talked about all over the internet. With amazing advertising and marketing, Indian e-commerce platforms are soaring to new heights.

    FAQs

    What is cart abandonment?

    Customers generally add products to the cart and leave the website without making any purchase.

  • All About Microfinance Models In India

    Microfinance – also called microcredit- is a way to provide small business owners and entrepreneurs access to capital. Small and individual businesses don’t have access to traditional financial resources from major institutions. It is harder to access loans, insurance, and investments that will grow their businesses. This sector has been instrumental in creating opportunities for low-income households by providing credit access to 64 million unique live borrowers who were previously beyond the reach of traditional financial services. Additionally, the microfinance sector has its own set of challenges, ranging from lack of formal credit history, absence of collateral, laborious customer acquisition process, and low digital and financial literacy. There are various microfinance models in India many of these models are indeed ‘formalized‘ versions of informal financial systems.

    Some of the significant features of microfinance are as follows:

    • The borrowers are generally from low-income backgrounds
    • Loans availed under microfinance are usually of a small amount, i.e., microloans
    • The loan tenure is short
    • Microfinance loans do not require any collateral
    • These loans are usually repaid at higher frequencies
    • The purpose of most microfinance loans is income generation
    Market share of financial institutions in outstanding portfolio
    Market share of financial institutions in outstanding portfolio

    Government initiatives play a significant role in channeling the credit flow to underserved sectors through priority sector lending, Micro Units Development, and Refinance Agency Ltd. (MUDRA) Yojana, loan co-origination, and private sector investments. In the last couple of years, the microfinance sector has seen promising growth on the back of the rapidly growing Indian economy.

    Microfinance in India

    Small and medium enterprises (MSMEs), thereby increasing the contribution of these segments to India’s overall GDP. In FY19, the microfinance sector displayed 40 % growth in terms of the loan portfolio. INR 10 billion funds have been released by the Small Industries Development Bank of India (SIDBI) to boost the microfinance sector. SIDBI has tied up with non-profit organizations and social ventures to channel funds at below-market rates to facilitate affordable borrowing.

    In recent years, the microfinance sector has faced new challenges such as:

    • Limited access to low-cost funding for Microfinance Institutions (MFIs)
    • Low financial and digital literacy among targeted Borrowers
    • Over-borrowing
    • The demand for more innovative
    • Customer-centric products

    Reserve Bank of India (RBI) has played a significant role in enabling the microfinance sector to reach out to new geographies. Recently, the Government of India has also increased the microlending limit of borrowers to INR 1.25 lakh to expand the reach of the microfinance sector.

    Needs of the microfinance ecosystem

    • Availability of alternative capital funding channels
    • Customer centricity
    • Mature risk and regulatory landscape
    • Streamlined operations of customer-facing personnel
    • Robust credit risk assessment mechanisms
    • Technology enablement for the ‘high-touch’ industry
    • Women empowerment and the emergence of an entrepreneurship-driven landscape

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    Different Models of Microfinance in India

    Associations Model

    The target community forms an ‘association’ through which various microfinance (and other) activities are initiated. Such activities may include savings. These associations or groups can form of a youth, women. It is also formed around political/religious/cultural issues. It can create support for microenterprises and other work-based issues.

    According to NABARD, SHG-BLP is the world’s largest microfinance program in the world.

    Bank Guarantees Model

    A Bank guarantee is used to obtain a loan from a commercial bank. This guarantee may be arranged externally ( through donor/donation, government agency, etc. ) or internally (using member savings). The loans obtained may be given to an individual or they may be given to the self-formed group. It is a form of capital guarantee scheme. Guaranteed funds may be used for various purposes, including loan recovery and insurance claims. The guaranteed funds can be used for various purposes such as loan recovery or insurance claims.

    Bellwether Microfinance Funds (India) is one such example.

    Community Banking Model

    In India, community banking looks very different. Self Help Groups (SHG) are often instituted in which members of the local community join together and pool capital resources for lending to members. They value transparency in their practices and utilizing their savings for their purposes of lending.

    A successful example is the Royal Bank of Scotland (RBS) Foundation India, which has various microfinancing programs to help the poorest communities across India.

    Challenges in accessing credit from the formal sector
    Challenges in accessing credit from the formal sector

    Cooperatives Model

    A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-owned enterprise. The members are the shareholders and have their share in equity capital. They also share the profit.

    Co-operative Development Forum Hyderabad is a successful example of this model. It has built a network of women’s thrift groups and men’s thrift groups.

    Credit Unions Model

    This model is based on a member-driven credit union, a self-help financial institution. A union of members is formed. These members form the common community. They agree to save together and give loans to each other at a nominal rate of interest. A credit union’s membership is open to all who belong to the group, regardless of race, religion, color, or creed.

    The members are people of some common bond:

    • Working for the same employer
    • Belonging to the same church
    • Labor union
    • Social fraternity
    • Living/working in the same community

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    Grameen Banking Model

    It promotes credit as a human right and is based on the premise that the skills of the poor are underutilized. The Grameen Bank (GB) is based on the voluntary formation of slight groups of five people to provide mutual, morally necessary group guarantees instead of the collateral required by conventional banks.

    The whole center is jointly responsible for the repayment. Grameen model is being followed by Sarv Seva Abhiyan (ASSEFA), Activities for Social Alternatives.

    Intermediary Model

    This model positions a third party between the lending institutions and the borrowers. The intermediary plays a critical role in generating credit awareness and education among the borrowers. Intermediaries could be individual lenders, NGOs, microenterprise/microcredit programs, and commercial banks (for government-financed programs). The intermediaries are incentivized in monetary and non-monetary forms.

    Individual Banking Model

    This is a straight forward credit lending model where microloans are given directly to the borrower. The individual banking model is a shift from the group-based model. The MFI gives loans to an individual based on his or her creditworthiness. It also assists in skill development and outreach programs. Co-operative banks, Commercial banks, and Regional Rural Banks mostly adopt this model to give loans to the farming and non-farming unorganized sector.

    Self-employment women’s association in India s one such example to have adopted this model. The members own and govern the group.

    NGO Model

    NGOs are one of the key players in the field of micro-financing. They help the cause of micro-financing by playing the intermediary in multiple dimensions. Non-governmental Organizations (NGOs) played a vital role in rural reconstruction, agricultural development, and rural development even during a pre-independent era in our country. NGOs became a supplementary agency for the developmental activities of the government and in some cases, they become alternatives to the government.

    Non-governmental Organizations are committed to the upliftment of poor, marginalized, underprivileged, impoverished, and downtrodden and they are close and accessible to their target groups.

    Various NGOs are helping the cause of micro-financing. For example, MYRADA in Karnataka, SHARE in Andhra Pradesh, RDO (Rural Development Organization) in Manipur, RUDSOVAT (Rural Development Society for Vocational Training) in Rajasthan, and ADITHI in Bihar.

    ROSCA Model Or Chit Funds

    Rotating Savings and Credit Associations or ROSCAs, are essentially a group of individuals who come together and make regular cyclical contributions to a common fund, which is then given as a lump sum to one member in each cycle. At the end of a cycle, the total fund collected goes to any one member. Rotating Savings and Credit Associations are a means to save and borrow simultaneously. There are lakhs of ROSCA functioning in India today.

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    Village Based Model

    It is closely related to the community banking and the Group model, this is the community-based saving and credit model. A group of 25-50 people gets together to enhance their income through self-employment activities. They get their first loan from the implementing agency, which helps them form the community credit enterprise.

    Small Business Model

    This model places a big responsibility on small and medium enterprises. This has been changing, as more and more importance is placed on small and medium enterprises (SMEs) – for generating employment, for increasing income, and providing services that are lacking.

    Future of Microfinance in India

    • Affordable borrowing for one and all: Easy access to microcredit
    • Reaching the doorstep of every unbanked customer
    • The road ahead for a digital microfinance
    • Leveraging women empowerment and mobilizing the entrepreneurial landscape

    India aims to become a USD 5 trillion economy by 2025 and the microfinance industry will play a leading role in uplifting the lives of millions of low-income households and enabling them to contribute to the country’s economic growth.

  • How to Start Used Car Dealership Business In India

    A used car dealership business in India means that selling used cars to customers who are looking to own a vehicle but their savings money does not allow them to buy from ex-showroom price and earn profits. The COVID-19 (Coronavirus Disease) pandemic has placed the automotive industry at great disruption. Starting a user car dealership business in India will be profitable, where cars have to be brought from their owners at a lower price than you will sell later. IBISWorld reports the used car dealership industry has had a net decline over the past five years, due to coronavirus, at an average annual rate of -1.6%. In the upcoming years, this industry’s 129,553 businesses are forecast to see $ 99.1 billion in collective revenue. Nowadays people need more cars due to their daily transportation. The globally used car market size was valued at USD 1,332.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027.

    As there is the rise in the cost of new cars in the market also the increasing rate of interest on car loans has resulted in a shift in consumer preferences from purchasing brand new cars to buying used cars. In this article, we will discuss in brief how you will begin this car dealership business.

    Used Car Market Size, by Vehicle Type
    Used Car Market Size, by Vehicle Type

    Key Segments of Used Car Dealership Industry

    • The inability of customers to buy new cars became one of the reasons for the growing sales of used car volume.
    • These dealership networks helped market participants to brand and make used car options.
    • The added quality and reliability of used cars changed the consumer attitude and increased the sales of the used passenger cars.
    • Investing in used car management has become one of the market’s requirements characterized by slimming margin, relentless competition, and demanding consumers.
    • High disposable income
    • Rising demand for luxury cars
    • The shorter period of car ownership
    • Increasing preference of the owner of a two-wheeler to upgrade to a compact car

    External Factors Affect the Used Car Dealership Industry

    Several factors affect the performance of the used car dealership industry:

    • Per capita disposable income – When customers have more money to spend, they become more willing to spend on expensive discretionary items, such as used cars.
    • Price of new cars – Buying a used car is a more affordable alternative to purchasing a new car.
    • Aggressive age of vehicle fleet – As the average age of vehicle fleets increases, it represents greater demand for vehicles.
    • World price of crude oil – High gasoline prices tend to decrease new and used vehicle sales.

    Used Car Dealership Business Plan

    A business plan is a blueprint that is necessary for running any business successfully. When you have a well-defined business plan the scope for trial and error in the actual business scenario. The primary objective of a used car dealership business is 100% customer satisfaction. After that, the business will aim to achieve and exceed the average profit margin within the first two years of business. The main mission must be to provide a hassle-free car buying experience with the main focus on customer satisfaction. After you select your location where you intend to start your business then you have to do work with the facts, indices, and other figures in the industry.

    The dealership also provides job satisfaction to its employees by rewarding their efforts with bonuses and incentives. One important thing is to fulfill the buyer’s need for safe and quality transportation by providing them used cars that match or exceed their expectations.

    After doing all the necessary objectives you need to bring together a proactive team of professionals who have some experience in the field. The network of suppliers that can help in buying and selling cars of optimum quality at attractive prices.

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    Used Car Dealership Business Start-Up Cost

    The start-up costs of a used car dealership will be financed through short-term loans, owners’ investment, and long term loans. The costs depend upon the following factors:

    • Stationary and office supplies
    • Accounting consultation fees
    • Office or plot rent
    • Legal fees for a business establishment such as ownership and no sell agreement
    • Office or plot rent
    • Marketing or advertisement fees
    • Web presence and online advertising expenses
    • Equipment such as desks, computers, telephone, fax/copier, and office furniture
    • Licensing
    • Surety bond
    Global used car market share, by sales channel 2019(%)
    Global used car market share, by sales channel 2019(%)

    Economic Analysis of Used Car Dealership

    This new wave of digital retailing represents more than technology alone because it focuses on the importance of the customer experience in the used-car buying process.

    Highlights of used car dealership business:

    • Complete end to end purchasing capabilities( 59% of buyers)
    • Extensive vehicle data and photos along with effective search tools ( 64% of buyers)
    • Unique delivery options( 28% of online buyers)

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    Your business goal will decide the legal entity, you must choose for your used car dealership business. When you are starting with a moderate amount of capital, you can choose to be the sole proprietor of your entity.

    Some of the legal documents you will need to run a used car dealership business are :

    • Business and liability insurance
    • Certificate of incorporation
    • Tax Payer’s ID
    • Fire certificate
    • Used Car Dealership License
    • Business Plan
    • Non-disclosure Agreement
    • Employee’s Handbook(optional)
    • Facility permit/ license
    • Franchise or Trademark License
    • Insurance Policy

    Choosing Location for Used Car Dealership

    A car dealership requires a parking lot where you can park the cars and display them, as well as an indoor office space where all the administration is done. Before you search for a location you will consider the following points:

    • Demographics
    • Number of existing used car dealerships in the location
    • Accessibility
    • Local laws of the region or state
    • Security, safety, parking space
    • The purchasing power of the people residing there

    Awareness of Used Car Dealership Business

    None of the business is running without promotion and the same goes with the used car dealership business. Uniform promotion efforts are important to get noticed. The way you show yourself people perceive you in that way. Nowadays social media has emerged as the greatest platform for brand promotion and is very effective.

    Some ways of brand promotion are as follows:

    • Sponsor community programs that are relevant to you
    • Give advertisements in newspaper, magazines, radio, and TV stations
    • Place hoardings in a target location that will get your business noticed
    • Distribute pamphlets
    • Some introductory letters in your location introducing people to know about your business
    • Take reviews from your initial customers and promote them because this way you will make trust

    Looking for Distribution Network for Used Car Dealership Business

    Being a member of a good network of used car dealers, you will be able to establish ready links with people who are looking to sell used cars. The Internet is a fantastic platform for advertisement and you must put your best foot forward in gaining leverage from it.

    Key Companies & Market Share Insights
    Key Companies & Market Share Insights

    The impact of GST on Used Car Dealership Business

    GST or Goods and Services Tax is usually charged on the transaction value of goods. Indian Automobile industry mostly benefited after the implementation of the new tax regime. As per the Goods and Services (GST) Act, a registered dealer buying from an unregistered dealer will be entitled to pay tax under RCM, which simply means the registered dealer would subtract all taxes from the payment made to be the provider.

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    GST Impact on Buying a Used Car

    If you are dealing in the market for a used car and are sifting through used car dealerships, you must have observed that the tax increased to 28 % from 5 % after the implementation of the Goods and Services Tax Regime. Previously, the used car dealers had to pay only 5 % tax value-added tax on the vehicles which are resold. Dealers generally keep their margin in the range of 10% to 20 %. It depends on the several factors of cars such as car type, age, and demand.

    GST Impact on Selling a Used Car

    If you are thinking to sell a used car, try searching for an organized car dealer nearby you who is offering second-hand vehicles at lower prices as compared to what you would expect for it. Generally, the dealers try to eliminate the tax burden either through the buyer and seller side or both.

    Conclusion

    The organized sectors and semi-organized sectors which cover approximately 21% of the market account are going to be benefited from the reforms and expected to grow by 36% and 12 % respectively against 17% unorganized sectors. Like dining, shopping, and entertainment, the car buying experience that people prefer is changing. The future of car dealerships is changing. The global used car market is expected to grow at a compound annual growth rate of 5.5% from 2020 to 2027 to reach USD 2,150.6 billion by 2027. The Asia Pacific dominated the used car market with a share of 35.6% in 2019, in terms of shipment. This is attributable to emerging economies, including India, which is dominated by unorganized players.