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Quratulain Merchant

Things to know about USDA Loan

Last Updated on April 2, 2021 By Quratulain Merchant Leave a Comment

The current Coronavirus pandemic has not left a single country into economic decline. Even the United States of America is experiencing an upscale in unemployment. As a result, its people need a helping hand in this time of disturbance. 

Indeed, this is the time where bank loans can come in handy. When it comes to mortgage loans, there are many options. However, there is one particular loan that can help in the current scenario. 

What is the USDA Loan?

USDA loan stands for United States Department of Agriculture. It is a mortgage loan that requires no down payment and minimum interest rate.

Each year, the United States supports thousands of Americans in buying homes in rural areas. USDA mortgage loan is for low-income people who can not fulfil the payments for a proper mortgage loan. To be specific, the USDA loan requires an upfront purchasing fee of 1% from the loan amount. Then, a .35% annual fee based on the remaining principal balance each year.  

For example, a loanee gets a $100,000 loan through the USDA loan program. So, he would pay a $1,000 upfront purchasing fee. Plus, a monthly payment of $29.17 for the annual mortgage insurance. However, it is not a necessity to pay the upfront mortgage fee in cash. There is an option to pay later as a part of the loan. 

Different Types of USDA loans

Indeed, the USDA loan program is specifically for unfortunate citizens. It serves this group of people in various ways. Specifically, there are three types of USDA loans available. 

Firstly, the Direct Loans is for those who are at the very bottom of low-income individuals. In detail, the current interest rate is 3.125%, but it can get as low as 1%. However, home values vary by geographic location. So, each has its price limit for this particular loan program. 

Secondly, the USDA Home Repair Program is for those who wish to repair or upgrade their existing home. It offers loans up to $20,000 with a fixed interest rate of 1%.  

The last and popular type is the USDA Guaranteed Loans. The borrowers can avail the lowest rate of interest with no down payment. A USDA approved the lender will assist the interested individual. 

Am I Eligible?

Moreover, the USDA loan program has been around since the year 2007. It has helped millions of US citizens. It is an ideal program for those who have low income. 

Where’s the catch?

Although the USDA loan program meets the standards of financially unstable individuals who want to own a home, there are some conditions. 

Most importantly, the home should be at a particular location. Either you belong to rural areas, or you can shop for a home in the specified location. ThisIn other words, you have to say bye-bye to the hustle and bustle of city life. 

Secondly, you need a credit score of 650 or above to qualify for the USDA’s automated underwriting system. Otherwise, individuals who score below will be eligible for manual underwriting, which means the process will take longer for approval for your dream home. Plus, the appointed lender may even ask for proof of you paying the past 12 months utility bills on time. 

Overall, the rules may seem strict, but in the end, you can avail your dream home in the open field of the rural areas. 

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Banking & Finance

What is micro-lending?

Last Updated on March 3, 2021 By Quratulain Merchant 9 Comments

“Poverty is unnecessary” Mohammad Yunus. 

Although the term is new, the concept of micro-finance has been used throughout history. It has been dated way back to the 1700s, where the poor were given a small number of loans to the lower class. 

Moving forward, Muhammad Yunus played a key role in shaping the new version of microfinance around the 1970s. The story of the “Banker for the poor” started when Mohammad Yunus helped a group of women. These 42 women had the talent of making bamboo stools in the village of Jobra, Bangladesh. However, the traders of the village would only lend the funds at the condition of selling the stools at a specific price, which was slightly higher than the cost of the raw materials. As a result, the women fell into severe debt. 

Consequently, Mohammed Yunus stepped in and lend them 27$ of his own money, which paid off the borrowing needs. By selling the stools at a fair price, the women eventually climbed up the ladder breaking free from the debt cycle.

This incident led him to build the Grameen Bank, which won him the Nobel Peace Prize award. The Grameen Bank lends loans to the poor who do not have the access to financial services from a legit bank. “The Banker to the Poor” currently provides over 2.5 billion dollars of micro-loans to more than two million families in rural Bangladesh of which 94% of them are women.

Understanding Microfinance

The main purpose of microfinance is to serve the needs of the economically marginalized population of the world. In other words, microfinance institutions and bankers provide loans, insurance, and savings to small-business owners who lack access to traditional financing services. Overall, micro-finance includes credit and non-credit activities. 

In particular, microfinance is primarily aimed at those who earn $2 per day! What’s more, microfinance has been identified as the most powerful tool to fight against poverty. 

How does microlending work?

Despite the fact of having a strong business plan, qualifying for a business loan is not an easy task. In particular, the extremely poor people or the ones with very low income do not have a slight chance to start up their businesses. This is where micro-financing companies hop in. At the end of the day, microfinancing is availed to outgrow smaller loans to qualify for a traditional bank loan. 

Microfinancing includes many financial services like loans, savings, insurance, fund transfers, and small business loans to entrepreneurs. The whole purpose of Microlending organizations is to facilitate small business loans to new startups and businesses. 

Interested investors can search for a suitable microlending online platform through websites. Then, the lending platform will calculate a credit rating from various things like real-world credit history, any ownership of assets, and the history of repaying any previous microfinance. However, since there is less security in microlending than in traditional bank loans, the interest rate is higher.                                                         

Why Get a Micro Loan?

Although the interest rate of a microloan is higher than any proper bank loan, it is still better to opt for a microloan rather than a bank loan. 

For starters, microloans are easy and convenient through websites whereas, bank loans are cleared through proper physical appearance and lots of paper work. Secondly, if you are financially weak at the start-up of your business, a microloan would be the solution. Besides, if you are confident to boost your business over time, then paying the high-interest rate at the start is not a big issue. 

Let’s get down to business!

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Investment & Money

Things to know about FHA Loan Eligibility

Last Updated on January 29, 2021 By Quratulain Merchant Leave a Comment

All families, either rich or poor, deserve a safe and beautiful home. In the United States, this can happen even if you have very little savings. The Federal Housing Administration is an agency in the United States established by President Franklin Delano Roosevelt. Currently, the FHA has insured about 8.5 million single-family mortgages, more than 11,000 multifamily mortgages, and over 3,900 mortgages for hospitals and residential care facilities. 

What is FHA Loan?

FHA, or Federal Housing Administration, is the largest insurer of residential mortgages in the world. It has assisted millions of people since its creation in 1934. The striking thing about FHA loan is that they have a down payment policy of as low as 3.5%. 

FHA loan is beneficial for those people who are first time home buyers or those who don’t have enough money saved for a down payment. What’s more, FHA loan can not only make a home, but renovate an existing home, or replace an existing mortgage with a new loan. 

Terms and Condition you need to follow to get FHA Loan Approval

There are many terms and conditions for FHA loans. It is vital to know all aspects of applying for the FHA loan.

Let’s have a look in detail.

FICO Score

FICO stands for Fair Issac Corporation. It is a data analytics company which determines by analysing different consumer credit files from various credit bureaus. If the FICO score is at least 580, you qualify for the 3.5% down payment.

However, if the score is between 500 and 570, you are competent for a 10% down payment. In other words, the higher the score, the more chances of getting a low down payment. 

DTI should be less than 50

DTI or Debt-to-Income Ratio is a personal finance measure that compares the amount of dept to the amount of overall income. In other words, it is a measurement of the ability of the payments you can make each month to pay off the loan. Likewise, a low number of DTI indicates a better chance to avail of the FHA loan. 

Property Approval

The FHA loan makes sure that the investment is an excellent choice. Hence, they require the borrower to meet the set property approval.  

Mortgage Insurance

The borrower needs a Mortgage Insurance Premium for the eligibility of an FHA loan. It protects the lenders from losses that result from defaults on home mortgages.

Other Factors

Furthermore, FHA loan determines other factors such as the borrowers’ downpayment history, bankruptcies, foreclosures, and the ability to pay the loan timely. Thus, it is crucial to keep a check on all your factors before applying for the loan.

Pros and Cons of FHA Loans

FHA loan can surely help many families avail their dream home. However, there is always the downside of every insurance policy. Hence, it is important to weigh both positive and negative aspects of the insurance policy before taking the suitable decision. 

Pros of FHA Loans

  • A very low down payment – FHA loan requires a minimum FIC score of 580. It means that there is a high chance of achieving a low down payment of 3.5%. 
  • Allows Payment Assistance – The FHA loan permits its borrower to pay the down payment from an approved source like a friend or a close relative with proper terms and conditions. Keep in mind that not all conventional loans allow this policy.
  • Low credit of 500 allowed – If your credit history is not so smooth, you might want to consider an FHA loan as the credit score is as little as 500.

Cons of FHA Loans

  • Limit of the Loan – The FHA loan limits the borrowed amount based on the location of homes. It might be a setback for some if you are considering living in a high-end area. 
  • Mortgage insurance can be expensive – Surely, the down payment low in the FHA loan, but the premium mortgage insurance might cost you an arm. Precisely, the one-time premium is generally equal to 1.75% of the home purchase price. Furthermore, this can be financed through the mortgage or paid in cash but not allowed to have both options. Additionally, the annual premium depends on your loan amount and loan to value ratio.
Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Banking & Finance

Similarities Between Leadership and Management

Last Updated on July 29, 2021 By Quratulain Merchant 1 Comment

Management is the efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall – Stephone Convey. 

All corporations, whether big or small, continuously seek an ideal person with both leadership and management skills. It is no wonder why workplaces depend on those in management positions. They are considered the engine of the corporation.

When looking at management and leadership closely, it is evident that they both have different roles. Management is the act of carrying out day-to-day performance among a group of members. While leadership is where a goal is set to work on. 

Similarly, leaders motivate and focus the good in the members of the team. On the other hand, managers only find fault to push further towards the goal.  

When looking at both leadership and management from a different point of view, it is clear that the traits often overlap when it comes to their way of leading and handling the team. 

What are Leadership and Management?

The terms leadership and management are often used conversely in businesses. Have you ever given a thought to their individual meaning?

Let’s have a look at them separately.  

Leadership is an action where the leader continuously thrives for a better solution and pushes the team to reach that better vision. They map out a proper direction and lead the team to produce something new. Although leaders take charge in setting a direction, they need certain skills to lead the team to the destination. This is where management comes in.

What is Management?

Management means to organize and communicate with the higher position staff members to work towards the mission of the company. Although all corporations have somewhat different operations, managers are responsible to perform the basic operations. These operations include controlling the employees, planning out thoroughly before implementing a particular strategy and choosing the right staff members.

Although management and leadership are different from one another, they go hand in hand. It is essential to have both management and leadership to run a successful organization. One can not work without the other. Otherwise, it could cause many problems. 

Similarities between Leadership and Management

Even though leadership and management are different from one another, they do have lots of similarities. It is the traits of both managers and leaders that collide. They both work and handle the situation in a very similar way.  Let’s have a look at some of the traits.

Attitude towards work

Both leaders and managers have a distinctive attitude toward work. They are hardworking, honest, and determined. They both have the ability to vigorously work towards a set goal. Most importantly, they are confident and know that the key to success lies in hard work with dedication.

Working with a team

Managers and leaders know how to handle the team and direct the members to the right path to achieve the target. They know the strengths and weaknesses of team members. Moreover, they use evaluation to keep things in order. Most importantly, they know how to handle conflicts.

Leadership and Management Skills

The skills of managers and leaders are the same. They both use their top-notch communicating skills to control the team. They are somewhat considered to be stern with other fellow members.

Furthermore, they have excellent problem-solving skills, effective planning, decision-making, organization skills, and time management skills. 

Confidence

Both leadership and management require confidence. The leader and the manager should be confident to know that they are taking the right steps to reach the goal. They are smart, quick-witted, flexible, and take prompt action.

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Management

How Education helps in Developing a Mindset

Last Updated on November 10, 2020 By Quratulain Merchant 2 Comments

“It’s not that I am so smart, its that I stay with the problems longer”- Albert Einstein.

Although these are just a few words from Albert Einstein, they mean a great deal when it comes to developing the mindset. Having a PhD in Psychology, Carol Dweck has characterized two different mindsets after multiple studies. 

One of the mindsets is called a growth mindset. Individuals with a growth mindset have a hunger for gaining knowledge throughout life. Furthermore, failures seem like an opportunity to learn and strive to achieve higher goals. 

On the other hand, a fixed mind lets the individual have a fear of failure. They believe that all individuals are born with intelligence, and it is not changeable. As a result, they do not set higher goals for themselves. 

The role of education plays a vital role in developing a particular mindset. Both educators and parents are responsible for teaching the young ones that achieving anything in life is possible. 

Carol Dweck’s Studies

Carol Dweck, an American psychologist, studied over 1000 students’ behaviors. She noticed that some students rose back to their feet after small setbacks while others were devastated by their failures. Hence, she concluded her findings into two terms, growth mindset and a fixed mindset. 

Advanced research shows that the human brain is more adaptable than we ever encountered. Research shows that the connectivity between neurons changes with experience. In other words, neural growth is in our hands. The connections become stronger when using different strategies, finding answers to questions, and having a healthy lifestyle. 

Furthermore, studies have shown that there is a direct link between mindsets and achievement. For example, a group of 7th graders was taught and encouraged to believe that intelligence is malleable, which resulted in lots of efforts. Hence, they were able to achieve excellent grades in mathematics. 

Two Types of Mindsets

People with a fixed mindset are prone to believing that intelligence and abilities are inherent and fixed. So, no matter how hard they try, they will never exceed the limit of inborn intelligence. This type of mindset leads to a setback in achieving higher personal goals. People with such a mindset lose the belief of succeeding after a failure. Hence, failure is a dead-end for them.

On the other hand, people with a growth mindset are well aware of the fact that that some people are born with natural intelligence. The thing that makes them stand out from the crowd is the belief that working hard and learning new skills will eventually lead them to success. They do not give up easily when there is a failure. They embrace challenges, gain information, and seek inspiration from others to give out the best of their abilities.  

The Role of Education in developing Mindsets

The goal of education should not be to pass the skills and knowledge only. Instead, education should teach the student the ability to problem-solve and take on challenges. This way, the student will be well-prepared to tackle an issue outside the school and later on in life. Both parents and educators have an equal role in developing a growth mindset. 

Educators Role in Developing a Growth Mindset

Education is broader than achieving a particular course or degree. Research shows that students’ mindset plays a crucial role which affects how comfortable and motivated they are when faced with a new or difficult problem. Students with a growth mindset have been able to take on difficulties and challenges more effectively than those with a fixed mindset. Hence, educators should incorporate growth mindset strategies in their interaction with students.

Parents Role in Developing a Growth Mindset

Likewise, parents should encourage their children to explore, embrace new experiences, and enjoy challenges. Encouragement and appreciation to both success and failures help immensely in the early stages of developing a mindset. 

Parents should focus on the process of hard work rather than the outcome. For example, instead of commenting “you are so smart”, a parent should give an insightful comment like “I like the choice of colour of that picture.” It sends a message to the child that the efforts, hard work, and dedication are more important than being smart. It enhances growth in the present and the future. 

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Education

Why Do Managers Micromanage?

Last Updated on October 15, 2020 By Quratulain Merchant 2 Comments

A strong and stable management team is the key to success in any corporation. However, sometimes managers become victims of a particular behaviour called micromanagement. The meaning is what it sounds like; someone monitoring the micro things of every move of the subordinates.

There are many reasons why managers use the Micromanagement technique. Some are due to psychological components. Others are reputation-based reasons. Whatever the reason, it only leads to a downfall performance among the subordinates. 

Although total control over the subordinates only gives numerous unwanted outcomes, it can result well if used in the right circumstances. Managers can benefit the most out of it when working on a small scale.

However, managers always have the choice of changing the management technique. A substitution method of total control is the usage of the OKR. OKR stands for Objectives and Key Results. It is a framework that helps organizations specify goals and then track the results. Employees can achieve high-level targets, and at the same time, they will not feel that the boss is not breathing down their necks.

What is Micromangement?

All managers want to perform the best as leaders. Although managers have a difficult task to maintain a well-reputed performance from his employees or subordinates, there should be a perfect balance in the overall management. 

Some managers look into the minor details of the work of their subordinates. Micromanagement is a type of managing style where the manager keeps a close observation of all the activities of his employees. Moreover, he pushes for regular detailed feedback.  

Why do Managers do Micromanagement?

There are many reasons why managers become tend to take total control of everything. The main reason for micromanagement is the feeling of fear. Some managers feel that it is necessary to show authority to maintain a high-grade standard. 

Surprisingly, your job title may get bigger, but your personal control gets smaller. For example, when an individual programmer makes a mistake, it is easy for him to fix the error in a blink of an eye without anyone’s notice. While at the management position, when something goes wrong, the manager can not just sit on the computer to fix the problem himself. He will need assistance from other employees to solve a particular issue, which might affect his reputation. Sadly, this is one of the few setbacks when it comes to managing your team. 

Others have a feeling of fear which comes from having a healthy ego. At one point in their career life, all managers have worked as individual contributors. Due to their excellent performance, they stood out from the rest. As a result, this promoted them to a supervisory level. Hence, as a boss, it becomes difficult to let a beginner take credit for the work when the boss could have done a better job himself.

Above all, the most prominent reason for managers to act bossy is the fact that they want to be experts. An online test titled “Are You Motivated By Power Or Achievement?” was conducted. More than 5,000 leaders took this test. Based on the result, about 41% of the leaders have a strong urge for power.

Positive use of Micromanagement

There is another way to look at micromanagement technique. This technique can work well if used in the right circumstances. Hence, it can give high rewarding results when managers use it on a small scale team. 

When working with a few subordinates, tracking every move and asking rigorous feedbacks gives total control of all the activities. It lets the manager keep a check on all the activities and makes the employees push to achieve impressive outcomes. 

It also comes handy when there is a specific custom order from a client, which needs a precise manner for completion. Micromanagement is the only way to carry this particular order. 

In other words, as long as the team is small, and there is not too much information, it gives satisfying outcomes.

An alternative to Micromanagement

Objectives and Key Results is an excellent management technique which includes all the useful features, but there is no need for total control.

How Does it Work?

Managers and Employees all agree on various targets and objectives together. After agreeing to the targets, the managers can set a schedule to update the progress once or twice a week.

The targets and goals set are particularly well-though-out. These targets must be tough to reach yet achievable. In other words, the goals should be set high, but they will only be able to complete 75-80%. If the employees obtain the target 100%, then next time the set goals should be at another challenging level.  

The idea behind these goals is to make the employees strive for excellent performances. The objective behind this strategy is to stretch the efforts to reach the challenging goals. 

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Management

How to Evaluate Competency in Employees

Last Updated on December 17, 2021 By Quratulain Merchant Leave a Comment

From the shop around the corner to a million dollars corporation, employees are the most valuable asset in all businesses. Hence, a proper evaluation should take place to measure if the investment is giving its best return to the organization. 

What is an Employee Competency Assessment?

It would be wonderful to have a competency tool to measure the employees’ output in the business automatically. Although such a tool does not exist, there are some ways to see how well the employee is performing. The rise in an organization is an excellent way to see that the employees are giving their best. 

Nevertheless, individual assessment is compulsory at all levels of business. Some businesses lack such evaluation while others have strict policies and techniques to push their employees to perform their very best. 

Benefits For Competency-based Assessments

All corporations must conduct a competency-based assessment for multiple reasons. Firstly, it ensures everyone in the organization is performing to their full potential. This excellent performance is crucial as it will boost up the business. Hence, an organization should evaluate the competency of its employees every six months. 

It will not only push employees to perform at an excellent level, but it will provide specific areas of improvement. Hence, it will give insight into future workshops or seminars. 

Furthermore, competency-based assessments motivate and engage employees. It enables employees to recognize their skills and knowledge. In other words, you are empowering them to take complete control of their career. 

In conclusion, competencies and performance go hand in hand, which means that the more the competencies, the greater the motivation and encouragement to strive for higher performance. 

5 Ways to Assess an Employee Competency

There are multiple ways to assess competency in employees. Some are straightforward, and others are practiced rarely in an organization. Anyhow, it is vital to be aware of all the possible ways to assess an employee.  

1. Assess with a test

The traditional method of testing technical and theoretical knowledge is a great way to assess employees. A pre-defined standard test evaluates knowledge, skills, and an in-depth understanding of the employees’ capabilities to perform at their role in a business. 

2. An employee self-check

An HR manager should also conduct self-assessment among the employees. This method might be not as effective because their evaluation may be off reality. Nevertheless, it will send a psychological message to the employees where they should be standing in a particular job title. 

3. Ask the clients for feedback

Asking the feedback from the client is an excellent way to get an insight into how well is the client satisfied. In the end, the client should be satisfied. So why not ask the source of the growing business? 

4. Feedback from others

Another effective way is to gain feedback for each employee from other team members. Of course, the feedbacks should stay confidential. Moreover, it is more of a constructive approach and not taking action on one individual’s opinion.

5. Accomplishments

It is a simple rule. Employees who achieve more accomplishments have better evaluations. The achievements could be the number of total sales made or the number of five-star ratings. It could even be the number of complaints that a particular employee has received. These kinds of data can give an excellent insight into an employees’ performance. 

6. A 360-Degree Approach

In the year 1949, a famous author, Marshall Goldsmith developed an HR tool known as a 360-Degree Approach. Many workplaces have adopted this powerful tool to evaluate all levels of employees in a corporation. 

This non-traditional HR tool works as an all-round feedback process. It is where the supervisor and other employees provide feedback to one another. In other words, the supervisor gets an evaluation, and at the same time, gives feedback to his employees. 

In detail, employees can evaluate supervisors in their communication, leadership skills, and other aspects of management. Hence, this gives the employees the empowerment to provide constructive feedback to the supervisor. It is a replacement of the traditional method of just the supervisor having the power to portray feedback to its employees. 

Conclusion

Each company has its approach to evaluate a competency among employees. Some take the 360-degree approach while others stick to the traditional one way constructive feedback. 

Whatever the approach, the fact remains that the more the evaluations, the greater the motivation to strive harder. The in-depth feedback of each employee means devoting more time and additional resources to improve the weak spots. Subsequently, investing your time and energy in such steps from the evaluation will eventually give futile business results.  

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Management

Impact of Buy One Get One Free Promotion Strategy on Business

Last Updated on February 21, 2022 By Quratulain Merchant 6 Comments

Deep down, we all know that nothing is for free. You may wonder what happens behind the business strategy of “Buy One Get One Free?”  This strategy is largely marketed towards women. The word “free” can make her a shopping lunatic. However, there are strong reasons for the promotion strategy. 

What is BOGOF?

Corporations aren’t giving us promotions from the goodness of heart. The truth is that it boosts up their business magnificently. There are many successful marketing schemes. One such marketing strategy is the use of BOGOF, which stands for “Buy One Get One Free.”  

Although the implication of BOGOF is that they are selling both the items at half price, this is not true. In fact, the price of the promotion is calculated smartly. The seller keeps the usual margin of profit in selling both the items together. Not only does it give them profit, but it also lets them get rid of the unwanted items.   

The Hidden Downside

There are unfavorable outcomes from this marketing technique on the consumer side. In fact, in 2014, BOGOF was banned in the United Kingdom because it led to food wastage. Buying from this promotion often leads customers to buy more than they need. 

In addition, this promotion tactic is leading to a rise in global obesity. People are consuming more food than necessary through this promotion.  

Furthermore, It makes us buy useless items that we don’t really need. It makes us wear low-quality clothes. Also, it makes us eat bland food instead of the tastier option at the same price. Most importantly, it makes us spend more money than we intended to. 

Conclusively, there are a lot of disadvantages in BOGOF promotion. 

The Psychological Effect of the Word “FREE”

With so many disadvantages, why do we still buy from the BOGOF promotions? Why would we want to spend more of our hard earned cash on something we don’t even need?

The answers lie on the powerful word “free”. 

Research has shown that there is a psychological effect of the word “free.” Psychologist Professor Dan Arierly proved this theory by performing an experiment with the luxurious Lindt Truft and the common Kiss chocolates. In the first scenario, the majority of the people chose 15 cents Lindt Truffle chocolates over the one-cent Hershey’s Kiss chocolate.  

However, the majority of the people bought Hershey’s chocolates when it was put on BOGOF promotion with no price change on both the chocolates.  

Hence, the word “free” has a powerful and irresistible attraction.  

Marketers either provide a free product or a free service. Nowadays, with Covid around, “free delivery” service has boomed the market! The “free delivery” service makes the consumer purchase more items, which increases sales of a particular business.    

Not only does the word “free” have an attraction, it makes the buyer feel good. Coupons and promotions build excitement in customers. When availing such precious offers, it creates satisfaction and gives them a good feeling.  

Benefits for the Sellers

Retailers are well aware of these psychological effects and for centuries they have used this tactic against customers.  

Suppose you have an old stock of jeans and a new batch of jeans are on their way. What do you do with the current old jeans that are not getting sold? You have achieved the cost of these jeans. Any profit on these jeans would be a bonus.

The smart solution would be to put the BOGOF promotion with the new pair of jeans. This way you get rid of the old stock with profit and start the sales of the new batch of jeans. It’s a win-win for the sellers at this point!   

Overall, there are 3 big benefits in BOGOF promotions on a business.

First of all, it helps clear out the items that the seller is struggling with.

Also, it helps the seller boost more sales.

Lastly, it engages the customer and gives psychological satisfaction to come back again. 

Conclusion

It is evident that nothing is for free. Not even when you buy from promotions that offer another item for free. BOGOF is a marketing scheme which does wonders to a business.

This particular marketing technique triggers a psychological effect on customers to buy from promotions and avail a satisfying feeling. Now you know why you feel happy after shopping! 

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Marketing & Advertising

How to Build a Strong Brand Image?

Last Updated on July 31, 2020 By Quratulain Merchant 7 Comments

Research says that 59% of the people are interested to buy from a well-known brand. Keeping this mind, small businesses and start-ups need to put extra efforts to make their brand image strong.

There are many ways to build a strong brand image of your business. It requires efforts and a lot of research to find the right path in building a strong image of the company.

What is Branding of your Business?

Branding is known to be the heart of any business. There is so much more to a name and a logo when it comes to brand. It includes the company’s voice, customer experience, and mission, and values.

Effective branding does not include a notification of your company, but it attracts customers to close a deal with your company out of all the others. It is important to remember the mission of your company and targeted customer needs when building the brand of your business.

The Importance of a Strong Brand Image

The importance of a brand image cannot be emphasized enough. It gives a complete outlook of your business to the customers. Whether it’s an online business or traditional marketing, a strong brand image is needed to make your business grow. Your brand image and the success of your business go hand in hand. There are many different aspects related to your brand image.

For instance, your brand should be able to attract and maintain the targeted customers, collaborate with other brands, and maintain the stability of your business.

A Guideline in Building a Strong Brand Image

Build an Identity

All businesses need an identity. The intentions of the business should clear as crystal.

  • What are you selling?
  • Who are your targeted customers?
  • What makes your business stand out from your competitors?

Maintain Consistent Reputation

When you set an image of yourself to your neighbors and friends, it is vital to maintain that image to keep the reputation. Same thing applies to businesses. It is very important to market your brand properly with the right techniques.

This can be achieved by repeating the brand’s voice through messages, advertisements, and social media. The content should contain the right words and graphics to carry out the brand’s voice and tone. 

Be Trustworthy

Brands need to build trust with the customers to ensure a long-term successful business. There are multiple ways to accomplish this trust. One such way is to put positive reviews from the customers.

Another way is to create authentic and original content to win the customers. Nothing beats original content for reliability.

Lastly, collaborate your brand with a well-known brand. This will ensure the safety of your business. All in all, a business can do many things to make it thrive.

Use Social Platforms

In the modern age of technology, it has become a norm to use social media for businesses. Many Social platforms like LinkedIn and Instagram are used to reach customers around the world.

These tools are most influential when businesses put proper engaging content or advertisements to reach the right audience. Seeking help from experts in this field is also a great idea to build a strong brand image.

Take Customer Feedback Seriously

No one can give you proper advice on improving your business than the customer himself. It is a very good idea to ask the customers to see if any changes should be done to improve the service or the product.

The employer should put extra effort to ensure that the advice from the customers has been put into effect. This way, it will build trust with customers and eventually lead to new customers.

Conclusion

Branding is important for businesses to keep in mind that brand image does not become strong overnight. It takes consistent efforts with different strategies to thrive in your business. The right efforts in the right direction will surely give you fruitful results.

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Marketing & Advertising

10 Best Money Making Ideas for University Students

Last Updated on June 20, 2020 By Quratulain Merchant Leave a Comment

Starting a business as a university student is not such a bad idea. For one thing, it can pay your tuition fee. Also, you can put your learning into a hands-on experience. Moreover, it can become your career in the future. Besides, when March Zuckerberg came up with the idea of Facemash in his second year of college, he had no idea it would make him the king of Social Media.

10 Best Money Making Ideas for University Students

Universities can take a lot of hours and energy from a student’s day. However, with proper time management and being organized can give you success in your startup.

Virtual Assistant 

All you need is an internet connection and a laptop and some basic communication knowledge to be a Virtual Assistant. Let’s face it. Many successful businesses are too occupied to keep up with the Social Media updates with so many tasks at hand.

You, as a university student, could pitch into work as a Virtual Assistant and screen emails, update contacts, maintain Social Media accounts, or proofread blogs, emails, and presentations.  

Tutor 

There might someone in your university that is not doing so great in a subject as you are. This is a great opportunity for you to help that student to achieve better marks by tutoring.  

Youtube 

If your interest lies in acting or performing, Youtube is a great platform to portray. It could be book reviews, tutorials, funny act out clips, or just your view on something that is trending. If there is enough traffic, then you could make money out of it by Ad-Sense or become a business partner with Google.  

Start a blog 

Students who have an interest in writing could start a blog. Blogs could include content on makeup, fashion, technical gadgets, or even a personal blog. With a good traffic flow, add Google Ad-Sense to make money.  

Write an E book 

Some students who have the ability to make stories can enjoy writing E-books. They could write a self-motivation, a fiction or non-fiction story, or a true story.  They can sell their Ebooks through their blogs or Amazon.  

Work as a freelancer

Students who have skills like voice over, marketing, or know computer programming can sell their services world-wide. There are many platforms where a student can work as a freelancer. The best thing about freelancing for a university student is that you can be your own boss so you can work at your own suitable timings.  

Jewelry Making 

Every student is talented. Some are into books others are into arts and crafts. These students can make use of their gifts and make jewelry. There are many tutorials on youtube to upgrade your talent or even learn the art of making various jewelry.  

Photographer 

Let’s say you have bought a DSLR camera and want to make some money from it. You could put your pictures on social media like Instagram and gain lots of viewers. The more the viewers the higher the chance of someone contacting you for their business. Even if it fails, you can sell your photographs of premium photography websites.

Drop Shipping 

A drop shipping business is a product-based business without the products in hand. If you have the skills for selling and marketing, you can benefit from this one. You have to be the middle person among the consumer and the manufacturer. Make a website and sell the product as if it were yours.   

Earn through Apps 

There are many apps that can help you earn. Some apps give you money on conducting online survey. Others let you sell things online. Still others let you make money by completing basic errands or tasks.

Without a doubt, there sure are many possibilities to make money with just a cellphone and an internet connection. All in all, there are a variety of ways a student can make use of their free time and bring in some cash. All it takes is determination, the key to success.    

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Investment & Money

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