Offline businesses are increasingly depressed because of the changing shopping trends that are shifting to the online world. Digital transactions that continue to grow make it easier for consumers to get the desired item without having to bother going out of the house. Capitalizing on cellphones and internet quota, consumers can already find a variety of needs for both clothing, food and shelter. Without the need to visit shops with a considerable distance that will take up time, energy and transportation costs.
With this significant change in the consumption pattern of the community, business activists need to find a solution to deal with it. One way that can be taken is to move from an offline business to online. Maybe you will be a little surprised because there will be many different things. But this effort must inevitably be done so as not to be left behind. In an effort to move offline business to online there are several steps that must be followed in order to run optimally. What are they? Here’s the review.
Do Market Research
Your business may already have customers in the offline world and only need to be invited to switch to an online store. But to do it is not that simple there are many different things, when you make sales in the offline world with the online world. There are ways that must be taken to make these customers know that your business already exists in the online world. Therefore it is necessary to study marketing in the online world. In addition, the market base in the online world is also much broader compared to offline. You certainly want to develop your business on a large scale by utilizing this. Before you begin, you need to know what choices are most suitable for your business and demographic. Do market research and surveys to find out how far your business can be developed, which prospective customers have future prospects, what they really want from your business and what services you can provide. This can be seen from the needs and habits of prospective customers. This research can begin by asking customers or visitors to your store. Can be added by making online surveys to get more data. Offer rewards so they are interested in filling out your survey.
Take advantage of Social Media
Turning to the online world, start from something simple. Take advantage of social media to promote products and services while marketing them. Building a marketing unit on social media is indeed quite effective. This is because social media can be used by anyone, anytime and anywhere. At present almost all levels of society have social media accounts, whether it’s Facebook, Instagram, Twitter and so on. Data from “Digital Around The World 2019” states that there are more than 150 million people using social media from a total of 268 million Indonesians. They spend an average of 3 hours 26 minutes each day accessing social media for any purpose. Take advantage of this to reach your target market by posting and promoting through platforms that they open every day. Social media is well suited to being the initial promotional media because it uses fairly cheap costs. Even if you have enough time, promotion using social media can be done without a penny. But for those of you who have limited time or are chasing targets, hiring someone for this part can also be done.
Build a Website
While doing promotions and marketing through social media, try to build a more professional website. Take the time to develop a quality website, or you can pay other people who are experts in web development. Start by choosing the right domain name, user friendly website and exceptional customer service. The website that you develop doesn’t have to be complex. Choose a design that is simple but looks interesting so that customers feel at home on your website. Complete information to provide customer knowledge about your products and services and develop from time to time. Place these various information neatly and avoid writing errors. And make sure all links are functioning properly. Give the best because the website is the face of your business.
Create an Online Consumer Base
After your business has a functioning social media account and website, then you need to build a potential audience. You can use social media to promote websites, and vice versa. Give a link to the website or social media on each promotional channel used. But one thing to avoid, even if you want your brand to be everywhere, try to optimize one or two platforms. This usually applies to the use of social media. You don’t need to promote on any existing social media platform. Choose the social media that is your customer base. Make interactions and engage as much as possible so that you are closer to the intended customer.
Take advantage of the E-mail Newsletter
After launching a website for business, you can start collecting e-mail addresses and potential customer information. Maximize the opt-in function on your website to help this process. Opt-in is a method used to add prospective customers by registering e-mail. E-mailing these prospective customers will be included in the email marketing list and will get various information from your business. With this method, the promo material you make will arrive at the right person. Give special promotions, discounts, and free products to attract prospective customers to register in your e-mail newsletter. The more e-mails you have, the more customers you can reach with various special offers and information from your business.
Use SEO Services Providers
SEO stands for Search Engine Optimization, a marketing method that affects the level of visibility of a website in a search engine. SEO will help your website be at the top when customers search for keywords that relate to the content of your website. Try to use SEO services that are able to provide quality services. SEO service providers will usually provide technical advice about developing your website, developing content, campaign management for business development, keyword research used on content and so on.
Prepare Yourself Facing Consumers
With the activity of the online world that is very crowded in almost every time, you need to prepare business management to deal with it. You can just receive a very large list of orders at the beginning. Provide the best service to be able to answer every consumer request. Nor can it be available to consumers at all times, giving them an understanding by making a statement or confirmation through the website and social media. Likewise if the online business that is run is not too successful at first. You must really be able to play a promotion and marketing strategy to invite many prospective customers going forward.
The stages mentioned earlier are still the initial steps of moving business from offline to online. After entering the online world, there are still steps that must be taken to keep your business afloat. One of them is maintaining good stability and management. To keep you focused on business development, help is needed to work on technical matters such as financial records. For this matter, you can rely on the number one online accounting software in Indonesia, Journal. Journals offer services in real time, without installation and data security equivalent to a bank. With Journal, you can also get the ease of recording and bookkeeping for business purposes anytime and anywhere. Enjoy the free trial for 14 days only here.
Today, the trend of mobile working has become increasingly popular since the internet can be easily accessed. Smartphones are not only used for communication purposes, but also for work purposes. In addition, employee mobile application development is also becoming increasingly well-known in corporate circles. With application development, managers and CEOs can monitor all company conditions anytime and anywhere efficiently. That is why every company must ensure its company supports mobile access for employees, and provides optimal employee communication.
Building Application Systems According to Company Needs
In general, every company must also develop the system by building applications according to the needs of the company. Both application development is done in-house and using external IT vendor services. There are things that need to be ensured so that the application development can run well and the company’s losses due to process inefficiencies can be minimized.
1. The main purpose of the application. Make sure the application goals are clearly defined, to determine the application development requirements and what needs to be prepared.
2. Technology to be used. After determining the purpose of application development, the next step is to decide what technology to use. This depends on the application to be developed. Will the application be specifically designed for mobile, desktop only, or both? Make sure your company uses appropriate technology and can maximize the functionality of your application.
3. Selection of developers, whether resource or vendor. If you decide to use an external vendor, you must make a comparison by making a tender or pitching to find out the market price and the quality needed. Also make sure to make work transparency agreements from the start so as not to be fooled by the vendor, and to avoid data leakage.
4. Software / System Development Life Cycle (SDLC), is a planning model used in project management, which can describe the stages involved in information system development projects. Starting from the concept and initial feasibility study to application maintenance that has been completed. Implementing SDLC in the development of this application will greatly assist the development and sustainability of the application functions.
5. The documentation on the application must be made in accordance with the application that was built and always updated for further application development. Usually, the process of data documentation becomes a forgotten thing for developers who only focus on building applications. In fact, it is very important to be able to create integration between applications so as not to experience a difficult process in the future. For example, the difficulty in finding data stored in the application database.
Creating a Mobile Communication Strategy
Here are some things to consider when creating a mobile communication strategy that needs to be understood:
1. Especially in large companies, where employees can be in many different countries and time zones, the process of direct communication will be a difficult thing to do. An easily accessible employee mobile application can unite messages from your entire company. Because everyone uses the same application regardless of geographical boundaries or time zoning.
2. Teaching new employees in a long way is of course boring and confusing. When new employees start contributing to the company, the mobile application will simplify the process and provide a new first impression to the new employee.
3. Using a mobile application is a good recruitment strategy. You can find and get employees more easily. In addition, the application can also bring the company to a new culture to enhance the recruitment experience. You as a recruiter can use an existing application, then the application can introduce your company to job seekers to find your company easily on the internet.
MySleekr Employee Mobile Application
Sleekr provides a mobile feature called MySleekr that can provide HR management solutions for thousands of companies in Indonesia. With the MySleekr employee mobile application, all company employees can do attendance anytime and anywhere, apply for leave, claim to see the pay slip data through their respective smartphones. Submission of leave and claims becomes very practical and easy, as is the approval. With MySleekr, every employee can update their data without the need to open a laptop or computer. Now, MySleekr can be downloaded via Google PlayStore and AppStore. It’s good if your company registers for free first to use this Sleekr application.
For companies that want to attract and retain younger employees, of course they must make employee mobile application-based communication a priority. Without a mature and optimal mobile communication strategy, the company will lag behind other companies. At present, the development of mobile applications specifically for productivity is still a favorite choice aimed at various things. Starting from the means to report the work of employees, attendance, and management of a project. Try Sleekr’s HR software now and see how to Sleekr will provide a lot of convenience and benefits for your company.
Business is an activity that can provide many benefits for anyone who can do business management well. So what is the understanding of business management? And what strategies should be implemented to start a business? Let’s look at the information below.
Definition of Business Management
Business management is an activity in designing, managing, and operating a business or business that includes all arrangements both from the process of work, management to how to achieve a desired business goal.
Planning in Business Management
Plans in business are certainly important points that play a role in success for business people. Regardless of status as a beginner or senior, good business management will be able to bring business to a better direction too. In addition, resistance to all types of challenges and obstacles can also be important factors in the course of your business. Strategies in doing business must also be able to be arranged to be able to find out trends in the market so that businesses stay afloat.
Considering that the business plan is like a written development concept in business, then all descriptions of management, management, finance, development to target and marketing must also be planned perfectly. Don’t ignore short-term to long-term achievement targets. Overall business planning with mature details will make a picture of the business, can be more visible and make you easier to run.
Important Components in Developing Business Management
a. Clear Business Description
Whatever business you will run, make sure to have a clear business description and be able to be easily understood by everyone. The business description must include the forms and products that will be sold or offered, profit and loss, operating costs, pegged prices, to the working system of a business. Include the company’s vision and mission and the goals to be achieved. Do not forget to describe also related to core management such as business location, concepts from management, target markets to the advantages possessed.
b. Perform Competitor Analysis
Furthermore, you also need to do an analysis of competitors for your business. This is so that you can create a strategy that is right for your business. Perform analysis and in-depth observations so that you can find out in terms of weaknesses and strengths of competitors.
c. Have a Marketing Strategy
With a good marketing strategy, the potential to get success in the market can be obtained. Be sure to plan your business management appropriately from costs, product promotions, places, promotional targets, to media to promote. Plan the entire budget in detail so you can calculate all the possibilities.
d. Financial statements
Don’t let you underestimate your company’s financial statements because this is a very important thing. Be sure to learn it first. Financial statements are not only complex and complex, but you can make them simple, provided they cover everything. Budget management is also an important factor so that financial statements are always good. Plan the budget thoroughly so that you can easily make financial statements. Always honest and transparent when making financial reports so that progress and business development can be seen.
e. Maintaining Product & Service Quality
The products and services that you provide are important points in the course of business management. By having quality products and services that make many consumers satisfied, it is certain that your customers can be more loyal and loyal. But don’t let it be because the consumer loyalty makes you become complacent so that the quality of the products sold decreases. Maintain all the quality so that you can remain trusted by consumers.
Certainly a good business management, must be supported by tools to help manage the business efficiently such as the use of online accounting software that will help manage business finance to run in an orderly, healthy and planned manner. Entrust support for your business financial management in an online accounting software journal that will facilitate monitoring cash flows, obtaining financial reports instantly, sending bills, obtaining cost calculations and much more. You can get full information about the Journal here, and get the ease of managing business management with us.
Coverage Ratio (Coverage) is a Financial Ratio used to measure a company’s ability to pay its liabilities. At a glance, the Coverage Ratio might sound very similar to the Liquidity and Solvability Ratio. However, there are actually differences with these two ratios. Simply put, the Coverage Ratio analyzes the company’s ability to pay off debt and other forms of bonds.
More specifically, the Coverage Ratio measures how well the company is able to make interest payments related to their debt or bonds. Several types of ratios in the Coverage Ratio include components of bonds that are not included in the liability component. One form of the bonds is the payment of regular dividends to shareholders. The following are the types of ratios included in the Coverage Ratio used to analyze the company:
Interest Coverage Rate
The ratio of Times Interest Earned is also commonly called the Interest Coverage Ratio. The metric measures the amount of profit before tax and interest used to pay interest costs in the future.
Interest Coverage Ratio expressed in units of numbers and not by percentages. This number shows how many times a company can pay interest with profit before tax and interest. So, obviously the larger number of ratios is considered to be more profitable than the smaller ratio.
As an illustration, if the amount of Interest Coverage Ratio produces 4, it means that the company generates sufficient income to pay the total interest expense 4 times. In other words, the company’s income is 4 times higher than the interest cost in a period that is used as the basis for calculation.
Creditors will like the company with a higher Interest Coverage Ratio. Because this shows that the company is able to pay interest payments when due. A higher ratio also implies low credit risk. While the low ratio shows high credit risk.
The formulations of this ratio are:
Profit before Taxes and Interest ÷ Interest Fees
Fixed Cost Coverage Ratio
Fixed Cost Coverage Ratio is a financial ratio that measures a company’s ability to pay all its costs or fixed expenses with profit before tax and interest. Basically, the Fixed Cost Coverage Ratio is a development version of the interest coverage ratio. The fixed cost component included in calculating this ratio is like lease payments, insurance, preferred stock dividends, and others.
This type of ratio shows investors and creditors how well the company’s ability to pay its fixed costs. Similar to the Interest Coverage Ratio, this ratio is expressed in numbers and not percentages.
Coverage Ratio High fixed costs show a healthier and less risky business. This means that the company has more income to pay off its fixed costs. While a low ratio indicates that the company has not been able to cover its fixed costs. The age of the company that has a low or even minus Fixed Cost Coverage Ratio can be said to not last long. This is bad news for creditors and investors.
The formulations for this ratio are:
(Before Tax and Interest Profit + Fixed Cost before Tax) ÷ (Fixed Cost before Tax + Interest Fee)
Debt Service Coverage Ratio
Debt Coverage Ratio is a ratio that measures a company’s ability to pay current debt. Furthermore, this ratio shows the ability of the company to pay off the costs and principal of debt and smooth bonds with net operating income. In other words, this ratio compares cash from the company’s operational activities with interest costs and short-term Sinking Fund Obligation.
This ratio is specifically paid more attention by creditors than investors. Creditors don’t just want to know the amount and cash flow of a company. They also want to know how much current debt the company has and the cash available to pay the debt costs.
Unlike the Debt Ratio, Debt Coverage Ratios consider all costs associated with debt. This includes interest costs and other obligations such as pension obligations and reserve fund bonds. Therefore, this ratio is more able to show the company’s ability to pay its debt than the Debt Ratio.
For example, if the amount of the company’s Debt Coverage Ratio shows number 1, it means that the company’s net operating profit is equal to its debt obligations. In other words, the company generates enough income to pay for its current debt. If the number is less than one, the company does not have enough operating profit to pay its current debt and must use a portion of its savings.
Generally, companies with a higher Debt Coverage Ratio tend to have more cash and are better able to pay their current debt obligations in a timely manner.
The formulations for this ratio are:
Operating Income ÷ Total Debt Service Costs (Total Debt Service Costs)
Coverage Ratio is a Financial Ratio that can better explain how a company pays its obligations compared to Debt Ratio and Solvability. And so that management can consider the ratio, they certainly need financial statements. Today, Financial Reports can be generated quickly and automatically through the use of Accounting Software. One of the Accounting Software that can meet these needs is Journal.
According to the Trade Financial Encyclopedia, bankruptcy is a situation where a person who is declared bankrupt and whose assets or inheritance is declared to pay off debt. Whereas according to the Bankruptcy Law, it can be interpreted as a general seizure of all the assets of a Bankrupt Debtor whose management and settlement is carried out by the Curator under the supervision of the Supervisory Judge as stipulated in the Law.
Bankruptcy is a threat that is very possible for anyone who manages a business or business. The threat does not only apply to newly established companies, but also for companies that have been established for decades. Every company has the potential to go bankrupt, even though the probability is only 0.01%. Bankruptcy will be a very frightening thing for the company, because the company is in a threatened position and could be destroyed. Learn more about the factors causing the bankrupt company below.
Terms of the Company Declared Bankruptcy
According to the Law, a company can be said to be bankrupt if a company has fulfilled bankruptcy juridical requirements. These conditions according to Article 2 of the Bankruptcy Law include the existence of debtors who have two or more creditors and do not pay at least one debt in full which is due and can be collected, declared bankrupt with a court decision. Creditors in this case are creditors both concurrent, separatist creditors or preferred creditors. While debt that has matured means the obligation to pay debts that have fallen due, both because they have been agreed, because of the acceleration of billing time in accordance with the agreement or because of court decisions, arbitrators or arbitral tribunals. Bankruptcy applications according to the Bankruptcy Law can be submitted by the debtor, one or more creditors, prosecutors, Bank Indonesia, Securities Companies or Insurance Companies.
Causes of Bankruptcy Companies
There are several factors causing bankrupt companies, including the following:
- Not able to capture the needs of consumers, so companies can provide services or products received by the market
- Too focused on product development, so companies can forget consumer needs.
- Companies that are too focused on product development will lose sensitivity to what is happening in the company, outside situations, and so on.
- Experiencing excessive fear, such as fear of going bankrupt, fear of loss, fear of not being able to serve consumers, fear of inability to overcome problems, and others. actually the fear is natural. However, if these fears have exceeded normal limits, then these conditions must be watched out for because it will hinder the company’s performance and bring destruction.
- Stop to innovate in business. Important innovation to be carried out by every businessman or businessman. Because without innovation, products that are sold over time will be boring for people who are the target market.
- Lack of observing the movements of competitors or competitors, so that it will cause a company to compete and lag behind. A company must always pay attention to the steps taken by competitors.
- Set prices too expensive. Indeed, there are some people who believe that high prices will make a company’s products look better and more luxurious than the original. However, what happens if there is a new company that issues a product similar to your company’s goods and sells it much cheaper. Then chances are your company will be left by consumers.
- Other causes such as debt, excessive expansion, CEO fraud, corporate management errors, uncontrolled expenditure, and much more.