Q: What is Cash Flow Forecasting?

Cash Flow Forecasting is estimating the future cash inflows and cash outflows of the business.
Businesses do cash flow forecasting to manage better short-term liquidity, debt management, and
liquidity risk management, it is sometimes also used for sales growth and budget forecasting. For
Cash flow forecasting, businesses need past data from various departments to identify trends in
income and spending. Cash flow forecasting enables companies to identify the trends and
patterns of all income streamlines and the time of their maturities and also provides all spending
avenues with maturities. The income streamlines may be as follows:

 Sale of main products or services.

 Contractual sales income.
 Income from the sale of by-products/damaged products or waste material.
 Income from various investments.
 Income from the sale of assets.
 Income from lawsuits.

The spending avenues for the business may be as follows:

 Cost of raw material used for making products.

 Fees of the agents helping in purchasing goods or services.
 Inbound logistics spending.
 Regular utility bills of the company.
 Wages and monthly salaries of the labor force.
 Sales and marketing overhead.
 Cost of machinery purchased.
 Cost of finance or interest which falls under the scope of debt management.
 Outbound logistics services fees.

After analyzing the trends in income and spending, analysts will be able to create an estimated
cash flow for a limited time in the future to manage the liquidity and debts of the company by
ensuring that the company has enough cash in hand to fulfill its obligations on maturities.
 Steps in cash flow Forecasting:

There are four steps in cashflow forecasting named as follows:

1. Determined the cash flow forecasting objectives.

2. Choose a forecasting period.
3. Select the forecasting method.
4. Select the sources of the data.

Determine the Cash flow forecasting Objectives:

In the first step, a business may have to decide the objectives of the cash flow forecasting to get
fruitful results from the analysis. The objectives may be one or more of the following:

 Debt management is the most basic objective of cash flow forecasting in which a
business ensures that they have enough cash in hand to settle its debts and pay regular
interest payments to avoid further financial costs or loss of reputation in the market.
 Short-term liquidity planning is also the main objective of cash flow forecasting for short
and medium-term periods to manage the day-to-day business activities of the business.
 Businesses also used cash flow forecasting for project management or to create sales
growth budgets for the fiscal year to streamline business activities in a planned way.

Choose Forecasting Period:

There are the following types of forecasting periods for the cashflow analysis:

 Short-term forecasting is done for a period of 2 to 4 weeks and it contains day-to-day

cash receipts and payments. Short-term forecasting is done for short-term liquidity
management or working capital management.
 Medium-term forecasting is done for a period of 2 to 6 months and is useful for debt
management and liquidity risk management.
 Long-term forecasting is done for a period of 6 to 12 months and its main purpose is to
develop various sales growth strategies, project management, debt management and
budgeted income statement and balance sheet.
Select forecasting Method:

 Direct method of cash flow forecasting depends upon the actual data sheet and is mostly
used for short-term forecasting.
 The indirect method of cash flow forecasting depends upon the projected income
statement and balance sheet.

Select sources of Data:

The last step in cash flow forecasting is the selection of data sources for the analysis. Most of the
data is given from the various departmental activities, but companies also use public data for
accurate estimates of the Cashflows in the context of the future market of the business. Data may
be given from the following sources:

 Previous sales records and spending of various departments.

 Purchasing patterns of Raw materials or office supplies.
 Monthly expense sheets of various departments.
 Monthly salaries of office staff and wages of the labor force.
 Data on various debts and repayment in the shape of Interest.
 Industry association publications for future growth of the market in which the company
runs its business.
 Govt. Fiscal and monetary policy and their impact on Debt management, Interest cost,
and liquidity management.
 Govt. Tax policy because it has a direct impact on the net income of the business.
 Q: How to protect a Business Idea

In this era of widespread Information and social media, protecting business ideas, trade secrets,
designs, and innovations become more important to be competitive in the market and to win
major market share.

Businesses can protect their business ideas, manufacturing processes, Innovations, logos,
Designs, etc. through various ways. There are different legal authorities backed by Govt.
legislation to protect business ideas. Businesses have to meet the standards of those legal
authorities, show their trade secrets to the legal board, pay the business protection fee, and
protect ideas from intellectual theft. Businesses can get a license which becomes their intellectual
property providing them the right to manufacture or process the business innovation for a limited
period. After the stated period, the business idea becomes the public asset and anyone can copy
the business idea and enter into the specific product or service market.

There are following 3 basic ways to protect business ideas:

1. Patent.
2. Copyright.
3. Trademark.

Patent:

A patent is an Intellectual property that gives its owner the legal right to exclude others from
making, using, or selling an invention for a limited time. A patent is most commonly in in
Pharmaceutical Industry in which the company patents the right to manufacture an innovative
medicine formula for a specific period to restrain others from manufacturing or copying their
formula for the specific medicine. Businesses can patent their processes, designs, and inventions
through patent laws and details which are as follows:

 Businesses can protect their Trade Secrets, recipes, or manufacturing processes through
patents. For example, the example of a Trade secret patent is given from Vis Lab’s self-
driving car sensor and camera patent. Vis Lab was the first company to develop a camera
and automated sensor system in cars for self-driving purposes and patented its rights in
2013 in Italy, Vis Lab navigated two-way streets, crosswalks, streetlights, roundabouts,
 and obstacles in their prototype product. An example of a patent of manufacturing
processes is Hershey's chocolate manufacturing process which involves a unique blend of
Ingredients to create perfect flavor and texture.
 Businesses can patent their designs to protect them legally. Examples of design patents
are the patents of Apple and Harley Davidson bikes. Apple patents its mobile designs and
restrains others from copying their sober and unique iPhone designs, similarly Harley
Davidson patents its unique motorbike designs and gives a dashing look to the viewers.
Nike also used patents to protect their shoe designs.
 Businesses can also protect their innovations through patents. For example, James Powell
and Gordon Danby of the Brookhaven National Laboratory received the first patent for a
maglev train. The maglev train idea was very innovative and used electromagnetic waves
to pull trains and create contactless connections with the railroad. Due to this innovation,
the idea of a bullet train was established that boosts the speed of trains due to less friction
and no contact with the railroad.

Copyright:

Copyright is the legal protection right that protects the invention and provides the right to its
inventor to use and distribute their works. Copyright protects literary, dramatic, musical, artistic,
software, databases, films, and related intangible works. Copyright protects the expression of
ideas and not the idea itself, while patent protects the original idea. This means that other people
cannot copy the way you are employed but they can implement other ways using the same idea
to avoid copyright claims. Copyright protects the ideas for the whole life of the inventor + an
additional 70 years.

For businesses, copyright protection can be crucial for protecting their intellectual property. For
example, a software company may copyright its code to prevent others from copying and
distributing it without permission. A publishing company may copyright its books to ensure that
only authorized copies are made and sold.

Copyright infringement occurs when someone uses a copyrighted work without permission,
violating the exclusive rights of the copyright holder. Businesses can take legal action against
infringers to protect their copyrighted works.
 Trademark:

A trademark is a specific design, logo, sign, or expression that distinguishes products or services
from a specific source or manufacturer from others. A trademark is used to protect the designs,
logos, signs, or specific words that are unique and solely the work of the specific identifier or
producer to protect them. Trademarks can take many forms, including words, logos, slogans,
colors, sounds, and even smells. The primary purpose of a trademark is to identify and
distinguish the goods or services of one seller from those of others.

Businesses use trademarks to build brand recognition and loyalty among consumers. A strong
trademark can convey the quality and reputation of a product or service, making it easier for
consumers to make purchasing decisions. For example, the Nike "swoosh" logo is a trademark
that is instantly recognizable and associated with the company's athletic apparel and equipment.

Trademark protection grants exclusive rights to the owner to use the mark in connection with the
goods or services for which it is registered. This means that other businesses cannot use a similar
mark that is likely to confuse consumers. Trademark protection also allows the owner to take
legal action against infringers who use the mark without permission.

Description Patent Copyright Trademark

Protection Patent protects ideas, Copyright protects Trademark identifies
designs, inventions, and expressions of ideas and not producers or inventors of the
business processes. the original idea itself. idea from logos, designs,
signs, or different
combinations of words.
Usage  Protects business  It protects artistic  Used to identify
processes and trade works. products/services of
secrets.  Protects music and specific brand or
 Protects new literature works. producer.
inventions.  Protects dramatic  It helps to build brand
 Protects ideas. works and content of association, brand
 Businesses also the producers. recognition, and
protect the designs of  It also protects and customer loyalty.
 their
premises/warehouse
through patents and it
is specially used by
stores.
code and functions of
software base houses
to protect their works.

Q: Profile of Tim & Nina Zagat

Tim and Nina Zagat are the founders of Zagat Survey, the world’s leading providers of consumer
surveys in the fields of dining, travel, and leisure/entertainment. Tim Zagat also served as the
company’s CEO and Nina Zagat served as Co-founder/Co-chair. Tim received his bachelor's
degree from Harvard College in 1961, while Nina received her Bachelor's degree from Vassar
College in 1963. Both earned their law degrees at Yale Law College. In addition to her role at
Zagat Survey, Nina Zagat served 24 years as an attorney at the distinguished Wall Street law
firm. In 2000, the Harvard Business School honored the Zagat Survey as the best Entrepreneur of
the year. They were invited Hall of Fame in 2001. Nina Zagat was also named one of the leading
Entrepreneurs in the world. Tim Zagat has served as the chairman of NYC & Company.

Zagat Survey was established in 1979 by Tim and Nina Zagat. It began as a hobby for the
couple, who started collecting restaurant reviews from friends and compiling them into a guide.
The Zagat used a simple rating system based on a scale of 0 to 30 for food, decor, service, and
cost, which allowed for quick, reliable assessments of restaurants. The Zagat’s' approach was
innovative for its time, as it used restaurant reviews by crowdsourcing opinions from everyday
diners rather than relying solely on critics or experts. This approach resonated with many people
who valued the opinions of fellow diners over traditional restaurant critics. Another factor in
their success was the quality and reliability of their reviews. The Zagat Survey was known for its
comprehensive coverage of restaurants, as well as its consistent and fair rating system. This
helped establish the Zagat brand as a trusted authority in the restaurant industry. Additionally,
the Zagat Survey was a successful entrepreneurial business because it adapted to changing
technology and market trends. They expanded their print guides to include digital platforms,
such as websites and mobile apps, which helped them reach a wider audience and stay relevant
in the digital age.
They published their first guide in 1982, for New York City, selling 7,500 copies in local
bookstores. Two years later, when selling 40,000 copies per year, they each quit their jobs as
corporate lawyers to pursue the enterprise full-time. The company expanded to include other
cities and market segments such as hotels, stores, and clubs; in early 2008, the couple tried to sell
the company for $200 million but then withdrew the sale when they could not find prospective
buyers at that price. One reviewer wrote: "The Zagat Survey was once the sine qua non of
restaurant guidebooks. Aside from a review in the paper, the survey's 30-point scale for food,
service, and décor—and its quirky comments submitted by readers—was pretty much all that
mattered to restaurateurs. While the book's ratings are still highly influential—and while the
company remains highly profitable—the guide is no longer the indispensable possession it once
was and it's clear that its influence has waned in recent years. The relative decline was attributed
to the company's "online strategy" which made the guide only available to paying subscribers.
The survey was eventually sold to Google, and later to The Infatuation.

Q: Formulating a successful marketing plan.

A marketing plan is an operational outline or guidelines to reach out to the right target audience
for the product or service of the company. It includes all advertising campaigns, public relations
campaigns, social media management, the cost associated with all advertising channels, and the
method to measure the efficiency of each initiative for a specific time. The marketing plan is
made for the following reasons:

 To conduct market research to set prices for the new product/service/market.

 To boost sales of the existing product or services and to reach out to more audiences
through a proper advertising plan.
 Make tailored messages that target certain demographical and geographical groups.
 To spread brand awareness and to capture more market share in the industry.

Types of marketing plans:

There are different types of marketing plans for different purposes and each plan is slightly
different from each other depending on the operational outcomes and level of input efforts. There
are the following types of marketing plans:
 1. New product launch:
This market plan outlines how the new product will be introduced to the market, who will
be the target audience, the ways to reach out to customers in the most effective ways, and
what will be the price of the new product.
2. Social media marketing:
This marketing plan is made to manage all the social media platforms to better advertise
the company’s brand image, and company’s product or services. Companies manage their
websites, mobile apps, and social media pages like Facebook, Instagram, Twitter, etc.,
and plan how to engage users on these platforms.
3. Direct marketing:
The direct marketing plan is done to use a sales force to boost sales of the company and
to elevate public relations of the company. It includes email marketing, phone calls,
catalog marketing, text messaging, and other promotional activities using the sales force.
4. Cause marketing:
Cause marketing links the company’s product or services to the specific social cause or
problem. In cause marketing, companies raise issues in society and then associate their
product or service with them to increase the importance of their offerings and to tell
customers how well their product/services are best in solving the problem.
5. B2B marketing:
In B2B marketing, companies develop strategies to market their products to regular
business customers. Their main focus is to establish long-lasting and fruitful relations
with the business partners to promote business and to create a smooth line of inflow from
business customers. Companies used Email marketing, paid ads, and product marketing.
Phone calls, surveys and questionnaires, and product development strategies/tools in B2B
marketing.

Steps in Formulating a Successful Marketing Plan:

Companies develop marketing plans to smooth-line their marketing efforts in a planned way and
reduce their overall marketing cost. An effective marketing plan addressed the following
questions:

 What are your marketing objectives?

  What is your detailed marketing strategy?
 What is the cost of these activities when compared to the price of your products or
services?
 Who are your teams and team leaders in accomplishing your marketing plan?

The steps in developing an effective marketing plan are following:

1. Set clear goals and objectives:

The company must set clear and achievable goals and objectives for an effective
marketing plan. There are many objectives of marketing and different types of marketing
plans are established for different objectives. The objectives may be of the following
types:
 Launch new products or services in the market.
 Enters into new emerging markets with existing/new products or services.
 Boost sales for the short-term period to manage cash flows.
 Increased market share of the product or services for the longer-term period.
 Build strong public relations with key business partners and enhance the
effectiveness of distribution channels.
 Increase brand awareness and image.
2. Conduct market research:
In this step, the company identifies its strengths and weaknesses and compares them with
the opportunities and threats of the external market.
 Company performs SWOT Analysis (strengths, weaknesses, opportunities, and
threats).
 Identify the key indicators for a competitive edge and outperform in the market.
 Identify changing trends in the market and how the company’s objectives may be
aligned with the changing marketing trends.
 Identify key areas in which competitors are doing well.
3. Identify Target market:
An effective marketing plan has a clear target audience or niche of the market, companies
focus on the niche market rather than targeting the general public as a whole. Companies
divide markets based on geographical and demographical factors like:
  Geographical region in which the company offers its products or services.
 Clearly defines the Income level and lifestyle of the target market or the
customers to whom they target.
 Identify age and gender-wise segments for the product or services.
 Identify the tastes, attitudes, and preferences of the target audience.
4. Develop appropriate marketing channels and choose marketing tactics:
In this step, companies decide on the marketing plan that best fits their objectives. In
selecting the best marketing plan and channels companies have a look into the cost and
benefits of each plan. The marketing plans are of the following types:
 New Product launch plan.
 Social media marketing.
 Direct marketing.
 Cause marketing.
 B2B marketing.

Companies used the following channels to implement plans:

 Advertisement using electronic media.

 Social media platforms like Websites, Facebook, Instagram, Twitter, etc.
 Email marketing channel.
 Phone calls for cold calling to customers.
 Print media like brochures, newspaper ads, etc.
 Companies also use influencers like celebrities as their brand ambassador to
promote their products or services.
5. Develop implementation schedule:
An implementation schedule outlines the timeline in which different marketing actions
will be performed and it also outlines the key leaders or persons who will perform
activities. When creating the schedule, carefully consider how the activities will affect the
current practice operations and whether there are sufficient resources (such as staff, time,
and money) to accomplish the necessary tasks. In some cases, it may be necessary to
whittle down the list or postpone some activities. In other cases, it might be best to go
 ahead with the full implementation of your plan. If you want to fully implement the plan
but don’t quite have the staffing resources, you might consider bringing in a consultant to
coordinate the marketing activities and/or adding a part-time staff member to handle the
majority of the marketing tasks. The implementation schedule will also give you a basis
on which to monitor the progress of your marketing plan.
6. Create an evaluation process:
The effectiveness of the marketing plan is assessed by the evaluation process in which the
actual activities are compared with the standards including cost, time delays, and other
factors. The evaluation should be done with the help of periodical activity reports of
marketing teams. The success of the marketing plan is assessed in the following ways:
 Increasing brand awareness.
 Increased sales volume.
 Increased customer database.
 Increased market share.
 Decreasing overall marketing costs.
7. Review marketing plan periodically:
After the evaluation process, the company can understand the effectiveness of its
marketing plan. If the marketing plan deviates from the planned activities and the
objective is not achieved well then, the company has to identify the key factors that create
hurdles in achieving the objective or identify the proper marketing channel to achieve
objectives. After the analysis, the company should modify the marketing plan
periodically.