Lesson 10: Managing Growth We monitor

How do we manage Growth?  Revenue

Small business owners must be ready to adapt
to various situations, particularly when business
is growing at a steady rate. Owners may
struggle to keep up with the demand of
managing growth, but that’s not the only
challenge during a growth period.
Challenges we may encounter during the
growing period
a. Demands of a growing workforce;
b. More diverse customer needs;
c. Business intelligence requirements;
d. Keeping the supply chain running;
e. New competitors;
f. New compliance responsibility;
g. Keeping the business culture intact.
 Work orders
 Marketing campaigns
 Production
Prioritizing company experience
 Companies with a customer
experience mindset drive revenue
4-8% higher than the rest of their
industries.
 Companies that lead in customer
experience outperform laggards by
nearly 80%.
 84% of companies that work to
improve their customer experience
report an increase in their revenue.
 96% of customers say customer
service is important in their choice
of loyalty to a brand.
How do we measure customer
experience?

The growth stage of a business can differ a. Open communication;

greatly from starting a small business. Instead b. Using a voice-of-the-customer
of focusing on customers and outside sources, system;
you may need to start looking inward at
processes to streamline production. It’s c. Surveys;
important to understand how to handle growth d. Interpreting customer actions.
management in business because upgrading
your small business can be overwhelming. Hire great employees

Know the cause of growth  Productive

 Innovative
-So we can implement reporting and analytics
 Dependable
software solutions to address your business’s
 Trustworthy
unique needs.
How to attract great employees?
-The data provided by analytics can help you
find trends that lead to more informed  Demonstrate a pleasant
decisions and improved day-to-day operations. work culture
 Offer appealing benefits
and perks
 Use modern technology
 Retain great employees
 Provide career
development
 Increase compensation
 Improve company culture
Automate recurring task
 Responding to emails or sending
updates;
 Scheduling;
 Shipping and inventory management;
 Analytics and website tracking;
 Posting to social media.
 Use business review software that can
enable you to be more conscious of and
responsive to your customer’s needs
and expectation
 Scheduling software
 Social media management
Find a mentor
 Someone who has experienced the
growing business situation.
 Gaining practical advice,
encouragement, and support;
 Learning from others’ previous
experiences;
 Becoming more empowered to
make decisions;
 Seeing things from another point of
view;
 Achieving career goals.
Prepare to adapt
For instance, assume you receive
customer feedback that you
shipments are taking too long.
 use inventory management
software to better understand
which products you have in stock.
 change your shipping methods to
meet customer needs.
Lesson 11: financial instrument and
market efficiency
What is a financial instrument?
1. Financial instruments are assets that
can be traded, or they can also be seen
as packages of capital that may be
traded.
2. A financial instrument is a real or virtual
document representing a legal
agreement involving any kind of
monetary value.
3. Financial instruments are contracts for
assets that have a monetary value.
Examples of financial instruments
1. Stocks
2. Mutual funds
3. Real Estate Investment Funds (REITs)
4. Bonds
5. Derivative contracts
6. Check certificates of deposits
7. Bank deposits
8. Loans
Types of financial instruments
1. Cash instruments- – the values of cash
instruments are directly influenced and
determined by the markets.
 Cash instruments may also be
deposits and loans agreed upon
by borrowers and lenders.
Ex. Checks –they transmit payment from one
bank to another.
2. Derivative instruments- the value and
characteristics of these financial
instruments are based on the vehicle’s
underlying components, such as assets,
interest rates, or indices.
Types of financial Derivatives.
FUTURE,FORWARD,OPTION AND
SWAPS
-There can be over-the-counter
 (OTC) derivatives or exchange-traded Commodities derivatives
derivatives.
-They include futures, forwards, and options
Advantages of derivatives
contracts that use a commodity as the
1. Lock in prices
underlying asset and, therefore are considered
2. Hedge against unfavorable movement
as financial instruments.
on rates
3. Mitigate risks Are insurance policies financial instruments?

Yes. They confer a claim and certain rights to

the policyholder and obligation to the insurer.
3. Foreign exchange instruments-are
transactions that are concluded on the
currency market.
Lesson 12: Risk analysis and investment
a. spot transactions-is a currency exchange decisions
that takes place no later than the second
business day after the transaction is
concluded.

b. Outright forwards- currencies are

exchanged at a predetermined exchange
rate and a point in time after the spot date.

c. Currency swaps-the money is

simultaneously lent in one currency and
money of the same value in another
currency.

Debt-based financial instruments

- Are essentially loans made by an investor

to the owner of the assets.

Short term debt-based financial instruments

last for one year or less.

Ex. Treasury bills, bank deposits certificates of

deposits

Equity-based financial instruments

- this represent ownership of an asset.

Example = stocks, mutual funds , EFTs

Are commodities financial instruments?

Commodities themselves are not financial

instruments because they do not typically meet
ths definition of financial instruments.