Tag: Solution

Investing In A Developing Economy – A Possible Solution To Global Financial Crisis

INTRODUCTION

If there were security problems in Nigeria, no businessman would go to the country to explore opportunities, companies like Celtel, MTN, Etisalat, would not have ventured into security risk country to do business. Those who spread rumour about security and corruption problems in Nigeria are saying so to stop others from making money in the country. Figures don’t lie. They are the biggest testimonies for how conducive Nigeria’s environment for business and opportunities are. If you want to do business in Africa and record good returns on your investment, I welcome you to come to Nigeria. The political environment in Africa, particularly in Nigeria is tremendous.

Dr. Hamadoun Toure,

Secretary General,

International Telecommunications Union,

Cited in the Punch Newspaper, May 13, 2008)

What is happening currently with the Nigerian financial system is far from being affected in any way by the global credit crisis. At global level currently, the banks are under-capitalised, but Nigerian banks are over-capitalised. And I do not think this is a problem at all. I believe that Nigerian banks are under pressure from other economies within Africa continent that are affected by the credit challenges.

– Gordon Smith,

Head of Research, Africa and the Middle East, International Consilium,

(Reported in the Punch Newspaper, June 30th, 2008).

The foregoing statements aptly connote two understandings of the state of Nigerian economy. These understandings show that, the economy is one of the fastest growing economies in Africa and in the world. Although Nigeria has had hash economic history, it has undergone and still undergoing economic reforms, which are aimed at making Nigeria the Africa’s financial hub and one of the twenty largest economies in the world by the year 2020. Needless to say that the country has experienced political instability, corruption, and poor macroeconomic management in the past, this was responsible for unpleasant and harsh economic situation. The government relentless efforts to reposition the economy have translated into a remarkable economic growth and development. Several mechanisms have been put in place to sustain this growth and development, capable of balancing the interests of stakeholders. Perhaps, this view must have influenced Gordon Smith submission. He described Nigeria as the most dynamic market in Africa, which is under severe pressure from some countries in Africa to serve as a cushion against the effects of global turbulence. He also noted that some countries like Ghana, Malawi, Mauritius, among others were depending on her at the moment due to global risk exposure and that the country’s economy, led by the consolidated banks, was far from being affected by the global credit crisis currently rocking the world’s financial giants. He stressed further that foreign investors, who will be patient enough to weigh the Nigerian financial system on the credit risk perspective relative to global events, will find the nation’s financial sector more interesting to invest and raise capital from.

Faced with numerous challenges, Nigerian government is determined to strengthen, diversify and make the economy attractive and investment-friendly to both local and foreign investors. The government has adopted total liberalization and globalization as the economic policy, instituted privatization and commercialization programmes of public enterprises, provided total security for business and people, extended invitation to domestic and foreign investors, abolished laws inhibiting competition, embraced and fine-tuned policies to ensure quick realization of growth and development of all sectors of the economy. The effort is already paying off as Nigeria is now the focus for foreign investment thereby increased exponentially Foreign Direct Investment (FDI). Scores of economic missions and delegations from developed and developing countries have visited Nigeria, thus accelerating the growth of the economy at a very fast rate.

It becomes pertinent to direct the course of this discussion to embrace the second understanding of the above statements made by Hamadoun Toure and Gordon Smith. However, it becomes more pertinent to enumerate the inherent investment opportunities in Nigerian economy before discussing the issue of security as raised by Toure.

INVESTMENT OPPORTUNITIES AND SECURITY ISSUE IN NIGERIA

No doubt, Nigeria is an investment haven with countless and lucrative investment opportunities including oil and gas, solid mineral, agriculture, tourism, telecommunication, power and steel, transport, trade processing zone, financial sector, real estate / property, manufacturing, sport and entertainment, and fashion industry. Investors have a wide range of opportunities to choose from. It is important to note that the rate of growth of investment is fantastic and exponential in any of these sectors. Investors are at advantage of presenting their products and services to already-made market taking advantage of the population of over 140 million.

In telecommunication, statistics reveals that mobile phone users in Africa were about 280 million, overtaking United States and Canada with their 277 million users in the opening quarter of 2008. With 70 million connections in 2007, the Continent became the fastest growing region in the world, representing a growth of 38 per cent, ahead of the Middle-East (33 per cent) and the Asia-Pacific (29 per cent).It was also revealed that the fastest growing markets are located in northern and western Africa, representing altogether 63 per cent of the total connections in the region. The record showed that Nigeria, Zambia, Tanzania, The Democratic Republic of Congo, Kenya, Algeria, Tunisia, Ghana and South Africa are highly competitive markets in the Region. The record further contends that two-third of Africa’s telephony are in their early phase of development, with penetration rates below 30 per cent at the end of 2007.In percentage terms, it was noted that Africa is the fastest growing market in the world, but also the second smallest in terms of connections after Middle-East.

As Nigeria accounts for 57 per cent of the West Africa mobile phones, the country is acknowledged as the leading and the fastest growing telecom market in Africa. With mobile phone users at 44,932,181 and 734,444 for GSM and mobile CDMA respectively, her contributions to West Africa and Africa’s telecommunication growth can not be overemphasized. While the overall economic growth rate stands at 7% per annum, the mobile telephony is about 35-50%. Assuming that each of these connections was busy for a minute in a day, the country telecoms market has the capacity to generate over USD 16 million per day (USD16, 666,667) and close to USD 6 billion per year (USD 5,833,333,300). This is why telecom companies such as Visafone and Etisalat quickly joined the likes of MTN, Globacom, Celtel and other telecoms service providers in exploiting opportunities in the country.

Early this year, one of the main GSM service providers with a subscriber base of over 15 million announced a profit after taxation of USD650 million (78 billion naira) for the year 2007.Putting all these together, one can easily understand Toure’s submission describing Nigerian telecoms market as the best investment destination in Africa.

Recognizing the fact that the Nigeria telecoms industry is enormous and there is need to further exploit the sector to its fullest, the Nigeria Communication Commission (NCC) and the Ministry of State for Information and Communications have made their positions clear by extending invitation to global investors for active participation in the sector as they are willing to grant pioneer status and license for prospective applicants for various undertaking such as Fixed telephony, Mobile telephony, Fixed satellite (VSAT),Paging, Payphone, Internet and other value added services.

With the above facts, one can safely conclude that Nigerian telecom sector offers fantastic and lucrative investment opportunities to global investors. And putting into consideration 40% GSM market growth rate in the first quarter of this year (2008), there is potential for high return on investment in this sector.

Agriculture, the dominant sector of Nigeria economy, engages about 70 per cent of the population directly and provides nearly 88 percent of non-oil foreign exchange earnings. It contributes about 41 per cent of the GDP of the country. The sector recorded an overall growth rate average of 7 per cent in the last three years, a major improvement from under 3 per cent in the 90’s.

Statistically, 91 million hectares of the country’s total land area of 92.4 million hectares is adjudged to be suitable for cultivation. Approximately half of this cultivable land is effectively under permanent and arable crops, while the rest is covered by forest wood land, permanent pasture and built up areas. Among the states, which have the most abundant land, areas are Niger (7.6 million hectares) and Borno (2.8 million hectares).

Agriculture crops in Nigeria are grouped into cereals, root and tuber crops, grains legumes and other legumes, oil seeds and nuts, tree crops, and vegetable and fruits. Governments and the Ministries of Agriculture have made land acquisition easy, encouraged agricultural practices, extended (still extending) invitation to foreign investors and have put in place several incentives to stimulate growth in the sector. Despite, the agricultural potential of Nigeria is barely being tapped and this explains the inability of the country to meet the ever-increasing demand for agricultural products and her rank as 55th in the world (although first in Africa) in farm output.

As the world experiences food crisis and persistent rise in fuel price, the country’s agriculture offers unlimited opportunities for foreign investors and the world at large to provide solutions to these crises. Foreign investors will find investments in cultivation of sugar cane, sugar beet, sweet sorghum, starch (corn/maize), palm oil, soybeans, jatropha, and algae. These products are lucrative as they are potential for biofuels, a good substitute for fossil fuel. Presently, there is a very high demand for these crops from the developed economies.

Solid Mineral is another sector with great investment opportunities. Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation in this sector as less than 0.5 per cent is contributed to the Gross Domestic Products from Solid mineral sector. However, the Ministry of Mines and Steel and the Ministry of state’s focal attention in the last one year is to strategically place the country in a better position to explore and exploit just seven minerals in the plethora of minerals so as to increase Gross Domestic Product to 5 per cent within the next few years. The seven strategic minerals are coal, bitumen, limestone, iron-ore, barite, gold and lead / zinc.

Coal can be found in Enugu, Benue and Kogi. Within these three districts 396 million metric tones can be demonstrated using JORC classification criteria, while an additional 1,091 million tones of inferred and hypothetical coal resourced for the areas studied is 1481 million tones.

Knowing fully that development of coal will assist in the realization of energy, the Government and the Ministries are inviting foreign investors to participate actively in the exploration and exploitation of the mineral. Companies such as Denver Resources and Western Metals have already committed US$10 million and US$15 million respectively for two coal fields in the country. Another Chinese firm, Grid Xin Yuan International Investment Company that is providing more than half of China’s electricity needs is also in the country, indicating their interest in the development of a coal field in Kogi State.

The Bitumen reserve in the country is estimated at more than 27 billion barrels of oil equivalent while iron-ore is estimated at over 5 billion inferred reserves with presence in Kogi, Enugu, Niger, Zamfara and Kaduna States. Gold in just 10 locations is estimated at 50,000 ounces, barites 10 million metric tones and limestone at 2.3 trillion reserves.

Talc with an estimated reserve of over 100 million tones can be found in Niger, Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States.The colour of the Nigerian talc varies from white through milky-white to grey. The talc industry represents one of the most versatile sectors of the industrial minerals in the world. The exploitation of the vast talc deposits in Nigeria would therefore satisfy not only the local demands but also that of the international market as well.

The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hydrochloric acid and hydrogen peroxide exceeds one million tones. A colossal amount of money is expended annually to import these chemicals. There are salt springs at Awe (Platue State), Enugu, and Uburu ( Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tones has been indicated. Government, to ascertain the quantum of reserves, is now carrying out further investigations.

In the same vain, large bentonite reserves of 700 million tones are available in many states of federation ready for massive development and exploitation, over 7.5 million tones of barite been identified in Taraba and Bauchi states, and an estimated reserve of 3 billion tones of good kaolinific clays has also been identified.

Gemstone mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aquamarine, Emerald, Tourmaline, Topaz, Gamet, Amethyst, Zircon, and Fluorspar, which are among the best in world. Good prospects exist in this area for viable investment. Understanding that this sector requires urgent investment, the Ministry has directed miners who are still in small artisan levels to form cooperatives so as to benefit from World Bank US$10 million assistance. Apart from this, three Nigerian Banks have also established solid minerals desk with fund of over US$ 8 million each for the development of the sector.

Foreign investors will find this sector worth-investing on as Nigerian governments have put in place various incentives and strategies for investment such as 3-5 years tax holiday, deferred royalty payments, possible capitalization of expenditure on exploration and surveys, extension of infrastructure and provision of 100% foreign ownership of mining concerns.

Recognizing that only a sustained macroeconomic environment and a sound and vibrant financial system can propel the economy to achieve the country’s desire to become one of 20 largest economies in the world by the year 2020, on the July 6, 2004 the Federal Government through the Central Bank of Nigeria (CBN), under the leadership of its Governor, Professor Charles Soludo launched a 13-point reform agenda to restructure, refocus and strengthen the Nigerian Financial System. To complement this agenda, another comprehensive long-term reform agenda for the Financial System (the Financial System Strategy 2020-FSS2020) was launched. The grand objectives of these agendas are substantially being achieved. The country financial system now comprises of strong, efficient and internationally competitive banks with an eye for global markets, a capital market with highest returns on investment, in dollar terms, a sound and rewarding insurance industry and other competitive financial participants.

Gordon was right in his submission to have described Nigeria as the most dynamic market in Africa. His view that “foreign investors, who will be patient enough to weigh the Nigerian Financial System on the credit risk perspective relative to the global event, will find the nation’s financial sector more interesting to invest and raise funds from” x-rays the truth about the country’s financial sector.

The country’s banking system is the safest and the soundest it has ever produced in history. It is the fastest growing banking system in Africa and one of the fastest in the world. In fact, the most outstanding contribution towards realization of the country’s dream came from this sub-sector. Economic analysts have observed that it has taken Nigeria less than 3 years to achieve what it took South Africa 20 years to achieve in the area of banking. In a short word, a world-class banking system has emerged in Nigeria.

Statistically, banking sector contributes 10 per cent to the Gross Domestic Product (GDP) and represents 60 per cent of the stock market capitalization, while there was a reduction in the number of banks from 89 to 25, the number of banks branches rose by 33 per cent from 3383 in 2004 to 4500 in 2007. The total asset base of banks rose by 104 per cent from $ 26.8 billions ( 3.21 trillion naira) in 2004 to $54.7 billion ( 6.56 trillion naira) by mid 2007; capital and reserves rose by 192 per cent from $2.72 billion (327 billion naira) to $7.98 billion ( 957 billion naira); capital adequacy ratio rose by 42.6 per cent, point from 15.18 per cent to 21.6 per cent and ratio of non-performing loans total loan improved massively by 51.3 per cent, point from 19.5 per cent to 9.5 per cent. The sector has also remained one of the most profitable in the country’s capital market. It was noted that 13 out of 21 quoted banks on the Nigerian Stock Exchange recorded returns in excess of 100 per cent since January 2007.

According to the April 2008 edition of the African Business, (the best-selling Pan-African Business Magazine published in London) 18 out of 28 West African Companies with market capitalisation of more than $1 billion are Nigerian Banks. The magazine stated that First Bank Nigeria Plc with market capitalization of $7.4 billion remains the largest company in West Africa. Two other Nigerian banks namely Intercontinental Bank Plc and United Bank for Africa (UBA) remain the second and the third largest companies in the sub-region with market capitalization of $6.2 billion and $4.6 billion respectively.

Apparently, the rising tide of banks in the country from all indications has made the sub-sector very attractive, not only to local investors, but also to foreign investors, and in particular, foreign banks. For instance, the consolidation of Regent Bank, Chartered Bank and IBTC to form IBTC Chartered Bank attracted the interest of the Standard Bank Group, the largest financial institution in Africa with a market capitalization of $ 17.8 billion, whose subsidiary Stanbic Bank, also of South Africa has just sealed a Merger deal for the latest Merger in the country, Stanbic IBTC Bank Plc. In this direction, other foreign banks have started making enquiries with CBN of a possible Merger or take-over.

To further substantiate the opportunities the banking sub-sector offers the global investors, a cursory look into Intercontinental Bank Plc will reveal the success of banking system in the country. Intercontinental Bank Plc is known to be the second largest companies in West Africa to have recorded a phenomenal growth in gross earnings, which stood at $1.45 billion ( 173.5 billion naira) in 2008. This is an increase of 99 per cent over the $728 million (87.4 billion naira) in 2007, profit after tax grew by 102 per cent to $380 million ( 45.6 billion naira) as against $188 million (22.6 billion) in 2007, while the capital base rose to $1.67 billion from $1.31 billion. The bank deposit base soared to $8.75 billion ( 1.05 trillion naira), an increase of 126 per cent from $3.9 billion (468 billion naira) in 2007, while the total assets also recorded a quantum leap to $14.2 billion (1.7 trillion naira), representing a growth of 108 per cent from $6.86 billion( 823 billion).

The bank is also in strategic partnership with BNP Paribas, the world leading energy financing bank, Afrexim Bank; Export Development Canada (EDC); Finance for Development (FMO); China Exim Bank; Export-Import of United States; International Finance Corporation in financing projects in different sectors of the economy. However, it is relevant to say that the success recorded by Intercontinental bank is a good example of the Nigerian banks’ strength and prospects, and a testimony to opportunities available to global investors in the country’ financial sector.

Apart from the above, Nigerian Capital Market offers viable opportunities as it is positioned to help companies to raise capital, and to generate high returns on investment. Its total market capitalization has grown by over 4000 per cent to $100 billion (12 trillion naira) in March, 2008, up from $2.39 billion (287 billion naira ) in August 1999.Among emerging markets, the Nigerian Capital market remains one of the most viable in terms of returns on equity. Historically, the market has delivered 28 per cent returns.

Insurance industry is not an exemption to this growth and development the country’s financial sector is witnessing. Although there are few black spots on the regulatory handling, the industry has equally recorded success in their reforms and operations. With the inflow of robust capital, insurance companies are now faced with the challenges of delivering returns to shareholders, maximizing value and exploring overseas markets. Their presence can be felt in countries like Ghana, Liberia, Sierra Leone, Sao Tome, South Africa among others.

Although Goldman Sachs’ report titled “New Market Analyst” with issue number 08/09 released on March 13, 2008 (cited in the Thisday newspaper March 19,2008) posited that Nigeria is a better economy than South Africa, International Monetary Fund (IMF) reported that Nigeria and South Africa got close to 50 per cent of the $53 billion private equity and debt flow to Sub-Saharan Africa in 2007. This underscores the growing confidence of International bodies and foreign investors in country’s financial sector and economy at large.

Furthermore, Fitch Rating Agency and the Standard and Poor rated Nigeria BB-(minus) in the area of sovereign credit, high in development of local currency debt market, and low in the areas of debt to GDP ratio and inflation. The opportunities for growth in Nigeria financial sector are still strong as the underlying fundamentals driving the growth are still present. All these and more, position the financial sector and the country at large as a leading and most dynamic market in Africa and present viable investment opportunities to global investors.

Needless to say that the opportunities presented above are typical examples and an evidence of opportunities awaiting foreign investors in other sectors of the economy.

Nigeria is the largest producer and exporter of oil in Africa (although recently placed second behind Angola in the latest OPEC report as a result of Niger Delta Crisis) with a production of 2.5 million barrels and above a day. Besides, the Nigeria is the 7th world’s gas reserve holder and the highest flaring nation in the world, with the potential to become a major player in LNG export. It has annual gas flares’ capacity to generate over 12000 MW of electricity needed to catalyze the growth of any economy. Although it currently flares an average of 1.2 TCF of gas annually, the sector has the potential to generate great returns on investment.

One of the greatest opportunities awaiting foreign investors is Real Estate / Property. For instance, Lagos Metropolis with a population of about 18 million has attained mega city status. The State has one of the highest urbanization rates in the world according to the World Bank. Consequently, there is an insatiable demand for housing delivery, which has necessitated the introduction of the New Private Estate Developers Scheme. Under the programme, the government will make large parcels of land ranging from 1 to 25 hectares available to corporate organizations capable of undertaking development and delivery of housing units. Such organization must however demonstrate that they have the financial capacity and technical expertise to deliver quality and affordable housing units.

Among other sectors of the economy that foreign investors will find viable and worth-investing on are Transport, Sport and Entertainment, Tourism, Power and Steel, Export Processing Zones, Privatization. And available records reveal that the rate of returns in these sectors is as high as in the sectors discussed above.

Apart from the opportunities mentioned above which our office is strategically positioned to maximize opportunities for the benefit of prospective investors. We also offer consultancy services in the areas of general management, manufacturing, marketing, finance and accounting, personnel, research and development, packaging, administration, international operation, specialized services and other value-adding services. And our strategic partnership with national and international companies put us in position to deliver quality service and high returns on investment.

Nevertheless, there have been fears raised by international observers, agents and bodies that Nigeria is a high-risk nation for investment and other business transactions. This development is attributed to security, multiple taxation, epileptic power supply, bad roads and poor work environment.

It may appear that doing business in Nigeria is challenging because of the activities of a few untrustworthy Nigerians who are unscrupulous. But such are simply characterization of human nature; as it can be found anywhere else in the world. It must be said emphatically that the world has been biased in their judgment and treatment of Nigeria security issue. There have never been terrorist attacks, suicide bombings or kidnapping until recently when the issue of Niger Delta came on board.

Niger Delta region-the source of nation’s oil wealth- has become an area of perennial tension, agitation, and recently, militancy. However, a confluence of factors such as environmental damage by oil exploitation, failure to develop the region, lack of job opportunities and sense of deep deprivation from the low share of derivation revenue accruing to the states in the region, has led to the present situation. Acknowledging their situation, the Federal Government has organised a Summit, to be chaired by Professor Ibrahim Gambari, the United Nations Under Secretary General, to provide everlasting solution to the crisis. Frankly speaking, Nigeria is a safe and investment-friendly place and Nigerians are accommodating and industrious.

Cyber Crime is another fearsome crime, which often put-off prospective investors from involving or investing in the business opportunities in Nigeria. This crime was actually imported into the country by expatriates. It has never been part of Nigeria culture. It is perpetrated by a few section of the population. Their operations are carried out via Internet and their targets are people who transact business via the medium. They pose as government officials and sometimes as businessmen with United Kingdom identity who deal in digital products. However the list of their tricks and operations is not exhaustive. With the help of Economic and Financial Crime Commission (EFCC), Independent Corrupt Practices and Related Commission (ICPC), and other Anti-Criminal Agencies, Cyber Crime and their perpetrators are under control and disappearing.

The grand objective of the present administration, as encapsulated in VISION 2020, is to make Nigeria a major industrial and economic power, and one of the 20 largest economies in the World by the year 2020 by providing enabling investment and business environment and maximum security for active participation of local and particularly, foreign investors. The realization of these aspirations had informed the radical and pragmatic reforms designed to increase the attractiveness of Nigeria’s investment opportunities and foster the growing confidence in the economy. In this direction, the Federal Government has provided incentives and strategies for investment such as 3-5 years tax holiday, deferred royalty, possible capitalization of expenditure and provision of infrastructures such as road and electricity, just to mention a few.

African economy is witnessing the strongest growth in 30 years; no doubt, Nigeria is one of the major contributors to this development. Most commentators have observed that the opportunities for business and investment in the country look increasingly rosy with GDP growth of 7 per cent in 2007 and 13 per cent in the next 12 years. The International Monetary Fund (IMF) forecast of 9 per cent growth rate for Nigeria in 2008 (which is second to India 10 per cent and ahead of China 8 per cent) lays credence to their observations.

Furthermore, the increase in Foreign Direct Investment, the entrance of multinational companies, the strong financial sector, the favourable and tremendous business environment, the government support, the abundant natural resources, and the population of over 140 million people, among others, put Nigeria in a comparative ( and possibly absolute) advantage over other African countries.

Just as it is difficult to ignore China as a market in the global arena, (one out of every five persons in the world is Chinese) so is it very difficult to ignore Nigeria as a market in Africa (one out of every three persons in Africa is Nigerian). With a population of over 140 million people and its economic potential, Nigeria still remains Africa most important market.

IMPACT OF GLOBAL FINANCIAL CRISIS IN A DEVELOPING ECONOMY

Unlike China and India, African economy(developing economies) is yet to be integrated into the world economy. This is as a result of slow rate of integration and globalization at which the economy is being fixed into the global economic and financial system. Consequently, developing economies will only suffer a limited financial impact from the credit crunch. However, this is not to say that developing economies are in isolation and totally free from the crisis.

To grant a point, this paper will continue to use Nigerian economy for its analysis as it represents a paradigm of a developing economy with valid and considerable variables.

According to the report from a recently concluded Bankers Committee Meeting, which ended on October 20 th, 2008 , the Nigerian banks are safe as they operate at 22 per cent capital adequacy ratio( 14 per cent above the world 8 per cent requirement) and the financial sector is far from being affected by the current global financial crisis. The report also posits that any bail-out scheme is unnecessary as the situation that warranted bail-out schemes in developed economies- poor quality assets and heavy loan losses resulting from exposure to inadequately collateralised mortgage loans- is absent in Nigeria. To underscore its point, the report noted that, as the Direct Foreign Investment in Nigerian banks is comparatively low and the banks connection with their foreign counterparts is loosely fixed, the impact of the crisis will be limited and indirect.

Conclusion

The words of Mr. Dominique Strauss-Kahn, the Managing Director of International Monetary Fund, at a meeting in Washington D.C are the corner stones of the concluding thoughts of this paper. He stressed as follow:

We meet at an extra-ordinarily difficult time- a time of uncertainty and insecurity, with a danger that those fears push us away from- not towards- a more inclusive and sustainable globalization….At its best, multilateralism is a means for solving problems among countries, with the group at the table willing to take constructive action together. When multilateralism is dysfunctional, globalization can be a Babel of Tower, with competing national interests colliding to benefit none. The new multilateralism, suiting our times, is likely to be a flexible network, not fixed system. It needs to maximize the strengths of interconnecting actors, public and private, profit-making and civil society Non-Governmental Organisations (NGOs). The multilateralism must respect state sovereignties while solving interconnected problems that transcend borders…The private sector cannot restore confidence on its own. Macroeconomic policy measures by governments cannot restore confidence on their own. Piecemeal measures on financial markets will not restore confidence on their own. What will restore confidence is government intervention which is clear, comprehensive and cooperative among countries..The world must act quickly, forcefully and cooperatively to contain the ongoing financial and economic downturn.

Thus, the position of this paper is that the confidence will only be restored if “government intervention which is clear, comprehensive and cooperative” is complemented with investment in developing economies with less or no crisis impact as “flexible multilateralism” and cooperative and sustainable globalization is solution that suits our time, not” economic isolationism”.

Innovative Healthcare Solution in Pakistan

In recent years, there has been considerable progress in the healthcare sector of Pakistan. We cannot say that everything is going exactly as per the plan, but generally the trend is towards the betterment.

Conventionally, healthcare services and Pakistan don’t go arm in arm. Pakistan’s healthcare sector always has lacked gleam and efficiency, partly due to shortage of facilities and partly due to the unprofessional conduct of the people involved in delivering services. If we take a look into the late twentieth century, there were widespread cases of easily curable yet fatal diseases and disorders. Healthcare facilities were not up to date and people mostly use to rely on Tibbs. Local chemists were not working in synchronization with the needs of healthcare sector. Even the government was unable to bring in ample financing into the health sector, which gave a lot of disadvantage to the chance of progress at that time.

Today, Pakistan is the sixth most populous country in the world, with one of the highest population growth rates, which makes effective management of existing healthcare resources an intransigent need for all Pakistanis. Over the past few years there has been considerable progress in the healthcare sector of Pakistan. Not everything is exactly going as per the plans, but in general the trends are leading us to the advancement. Various healthcare establishments (HCEs) in Pakistan are research based, where they the professionals are using high-tech biochemical and biotechnological methods to test the effectiveness of various therapeutic drugs and modes of treatment being integrated in Pakistan. Government has also played a sustaining role in the advancement of healthcare sector. Latest methods of vaccination, surgery, cancer treatments, organ transplant and lab analysis has greatly helped Pakistan in reducing life losses and improving the life expectancy for the general public. All of these developments have certainly supplemented gleam to the healthcare sector in Pakistan.

The twenty-first century has advanced towards automation and digitization. From business to entertainment, everyone prefers digitalization. On these exceptional grounds, global healthcare industry has also switched towards digitalization. Taking a leaf out of the developed sector of the world, a similar approach is being followed in Pakistan as well. A service named “Healthcare Pakistan – One Stop Healthcare Marketplace” has been launched with the purpose to assist people of Pakistan. This Portal aims to bridge the gap between the patients and doctors, hence changing the way patients and doctors used to interact with each another.

The usual way to approach a doctor requires a patient to physically visit different hospitals to check on multiple doctors, calling hospitals and clinics for appointments and asking their relatives or other patients about each doctor to roughly estimate the expertise of each doctor and then to decide as to which doctor would suit him or her. After making a decision, the patient would book an appointment. Once the appointment gets booked, the patient would wait for the day when he is due to meet the doctor. Once the time comes, he visits the hospital and patiently waits for his turn, only to know that the doctor didn’t show up and the appointment is postponed.

To counter such situations and to improve the healthcare experience in general, “Healthcare Pakistan” is a modern healthcare marketplace that addresses this problem in a very unique way. It maintains a database of verified doctors, which is available for all patients. A patient can scroll through the platform to see doctors near him. He can see the profile of each doctor to see his certifications, experience level and other patients’ reviews on that doctor’s profile. After making a decision, he can book an appointment with the press of a button. The doctor also gets an automated notification that an appointment has been booked. If the doctor fails to make it to the hospital or he plans to take a day off in future, he can cancel all the appointments on a particular day with the touch of a button. In this way, both time and energy are saved.

Moreover, “Healthcare Pakistan” platform also enables patients to post their documents and diagnostic reports ahead of their appointment with the consultant. On the other hand, the consultants can use Healthcare Pakistan as a means of marketing themselves by maintaining their profiles, which will naturally gain more patients. Health blogs and videos will also be are published by doctors for enthusiastic readers so that they can learn about the most trending medical stories on the internet. “Healthcare Pakistan” portal is powered by a comprehensive healthcare information management system (HIMS) named as “ClinicConnect”. ClinicConnect is developed by Softech Systems Private Limited which is a leading eHealth and Fintech solutions development company in Pakistan.

ClinicConnect

ClinicConnect is a modern practice management solution built for both healthcare professionals and patients. Built by a group of seasoned healthcare professionals and IT experts, ClinicConnect brings strength to meet requirement of any size of clinic and yet not compromising on the quality of care and administration.

ClinicConnect offers modern workflows of a clinic including multiple consultants, online and walk-in appointment scheduling, consultant schedule, consultant queue, billing, electronic medical records, telemedicine, voice notes, Email / SMS reminders and much more. ClinicConnect is hardware friendly and is accessible anywhere, anytime and on any device of your choice.

“Healthcare Pakistan” comes in a package along with ClinicConnect which is basically a freemium service for patients, however, a Monthly subscription fee is charged from healthcare consultants.

· Consultant Portal: ClinicConnect offers a complete package of features that are essential for running any size of clinic. These features include patient registration, appointments management, patient EMR and billing services etc. Quickly record symptoms, make assessments, and write prescriptions. Easily keep any size of patient data without maintaining IT infrastructure.

· Patient EMR: ClinicConnect offers a very comprehensive Electronic Medical Record management. ICD10, CPT and customized diagnostics, comprehensive drug and medicine dictionary, audio notes, patient vitals, assessments and high quality video call are part of patient EMR module.

· Patient Portal: Patient portal of ClinicConnect enables patients to get instant appointments in few clicks from their favourite doctors without visiting or calling them. View your upcoming appointments, recent appointments, current medications and diagnostics using ClinicConnect. Upload lab test results, assessments and other documents for doctor’s review.

· Mobile Apps: ClinicConnect offers feature-rich mobile apps for consultants and patients. Mobile apps are available for Android phones and iPhones. Stay updated with your care provider and patients through ClinicConnect mobile apps.

In short, one can see many things in Pakistan’s healthcare sector shaping up for the betterment of this nation. Most of the things are still in the development stage, but we can clearly see the difference that has emerged over the last few years and it can be safely said that the very best of Pakistan’s healthcare industry is about to come.

B2B Portals Emerge As Holistic And Universal Trading Solution

Ever-since Information Technology came into existence, it endured to get out of its abstract self. By understanding the nuances of tangibles, which ultimately rules one’s life, the IT endured to make a cross over. It initiated the process by providing general information services, net messaging services, social networking, etc., to the global masses. But it was able to accomplish certain degree of acceptance towards this end is only through Business to Consumer (B2C) portals. It arrived with the punch line “one does not have to leave one’s shelter to survive”. Unfortunately, B2C online services were confined to end users of particular region and were not able to translate the services cost effectively to far away places due to various factors.

While B2C provided ease of getting things being in one’s home, Business to Business (B2B) websites provided services cost effectively by overcoming international trade barriers and through volume. World Trade Organization’s aim of offering multilateral trading system in the world, is best responded by B2B portals. The goal of B2B websites is to provide not just multilateral rather an universal trading system, that which will in turn allow each player, the freedom to showcase or source one’s product or service with utmost ease of doing business.

B2B websites have evolved over a period of time to address the comprehensive needs of the trading community around the globe. The innovative concept has enabled each and every business house to advertise one’s company with minimum expenditure. Most of the B2B’s provide free membership, and the premium membership comes with a price tag. But the free version is basically a trial service made available to the clients to accustom with the functions of the site in particular and to encourage them to become premium members in general. Further all the popular B2B portals empower every exporter and importer to establish a business relationship among one another by spending less time and money. Some companies use these portals even for their domestic trade.

If a trader is looking at an option of doing business through any B2B portal, it would be ideal for his or her company to register primarily as a free member and then get upgraded, once he or she is comfortable with the functions. The best recommended membership is the premium membership of any leading portals which comes with a host of ingenious features. The premium status can increase one’s company’s chances of getting genuine trade inquiries. To gain maximum exposure, one should register as a premium member of all the leading B2B portals.

The major feature of a B2B portal is that it helps one to search whatever products or services one is looking forward to sell or buy through “Trade leads”. A Trade lead is nothing but a description of the product or service which one extends to the market with an intention of selling or buying. A Trade lead further enables one to minimize the time spend on business exploration through its product or company specific search. Thus B2Bs literally help a trader to interact with businesses across the world by just sitting in one’s office chamber and keying in some words of communication.

Easiest Business Loan to Get: What Factors Are Important When Looking for a Financing Solution?

Every type of business requires some sort of loan or line of credit for a wide range of reasons: start up capital, equipment, inventory, office rental, etc. Since every business and every owner is different and has unique circumstances, the easiest business loan to get for another owner might not be the easiest for you.

For start-ups or businesses that have either no credit history or a poor credit history, it will likely be difficult to obtain traditional bank loans. Also, with a low credit score, your interest rate will be high, even if you are approved for a loan.

Lenders will usually look at more than your credit history. Other factors include your time in business, industry, your personal credit score, whether you’ve had any recent bankruptcies or defaults, balance sheet, business licenses and permits, tax returns, purpose of loan, proof of collateral, and several other reasons.

If you can think that your financial situation is likely to improve, you’ll need to provide the documentation to prove it. Always have your documents and financial files ready and organized anyway, so that you’ll be able to get through the application process as smoothly as possible.

Are SBA Loans the Easiest Business Loan to Get?

Many people don’t consider SBA Loans and long-term loans to be the easiest business loan to get, as the application process is very long and complex. Only consider SBA loans and long-term traditional business loans if your credit score is high and you have all your financial statements prepared and ready to go. However, the application process still might take some time, so you’ll have to wait on approval.

If you need cash as quickly as possible, there are options such as merchant cash advances. This type of offer will help you access capital. You’ll receive a lump sum of cash, but you’ll be expected to give up a portion of future sales. You will have the responsibility for paying back the loan itself as well as fees. While there is no set fee, $15 for every $100 borrowed seems to be a pretty typical amount by many cash advance merchants.

Invoice financing and equipment financing are pretty similar with their requirements. With the former, you’ll need to show details of your unpaid invoices, as well as bank statements and other financial information. With the latter, you’ll need to explain the type of asset(s) your company needs to purchase, and provide an equipment quote, business tax returns, bank statements, etc.

There are many other options for business of all sizes thanks to the internet. Online lenders are popping up all the time, although it’s best to stick with one that has been around for at least a decade. Begin your search with US Business Funding, an accredited company with the BBB. They will help you find the easiest business loan to get for your needs.

Merger or Acquisition Failing? The Solution Lies in Your Strategic Focus

The evidence is unmistakable. Mergers and acquisitions fail somewhere between 50% and 75% of the time (see Footnote). There are two main reasons: culture clash and leadership clash.

Culture Clash

For understandable reasons, leaders discount the impact of corporate culture when they merge and/or acquire. They have other factors to consider at the time of the merger or acquisition – market opportunities; operational and business process synergies; financial analysis; and potential cost savings. These factors are obviously important. In addition, “culture” is not only an amorphous concept, it is believed to be immeasurable and inherently unmanageable. Most leaders probably just assume that culture will ‘iron itself out’ over time. However, culture is too important to be left up to hope and natural evolution and here is why.

Culture means how we do things around here in order to succeed. It has everything to do with implementation and identity. Culture is our way and who we are. Every day that an organization succeeds is another day that that organization’s culture is reinforced. In 1992, Kotter and Heskett (Corporate Culture and Performance. NY: The Free Press. 1992) researched 207 firms from 22 industries to determine whether culture impacted the bottom line. They measured the economic performance of these firms between the years 1977 and 1988. They discovered that the organizations with strong cultures that fit the organization’s strategy improved their net incomes by a factor of 756% versus 1% for the organizations that did not have strong cultures and did not fit the organization’s strategy. They concluded that, when it comes to impacting the bottom line, culture’s influence is “more powerful than anything else,” including strategy, structure, leadership, financial analysis, and management systems.

The essential reason that culture has such a powerful impact in mergers and acquisitions is that one or both successful organizations are implicitly being asked to change how they do things in order to succeed. It is historical success that creates the tremendous power of culture. So, if our way of accomplishing success has been so effective, why are you trying to change it? Both organizations in a merger or acquisition are, certainly, thinking this.

Given the power of culture, it is almost inevitable that cultures will clash. The key issues are what is the exact nature of the two cultures and how do leaders manage those cultural differences.

Leadership Clash

If culture is our way, leadership is my way. The same issues come into play regarding leadership. Each dominant coalition of leaders in each organization has been centrally responsible for the historical success of their organization. After all, these leaders have set strategic direction, mobilized commitment, and established organizational capability to accomplish strategic objectives. If the two organizations were losers, neither organization would be interested in the other. Successful leaders want to ally with other successful leaders.

Again, nothing succeeds like success! Therefore, leaders get their noses out of joint when other leaders question how they are doing things. Given the nature and inherent accountability of leadership, it is almost inevitable that leaders will clash. The key issues are, again, what is the exact nature of the two leadership approaches and how do we manage leadership differences.

If you leave the resolution of these two critical differences, culture clash and leadership clash, up to the very same people who are in the middle of the clash, we think it is fairly safe to predict that, most of the time, such resolution will not occur. It is very unlikely that the very same cultures and leaders that got into the clash in the first place will know how to resolve those same clashes. If they did, they would not have gotten into the clashes, to start with. So, what is the solution?

With one very big proviso, the solution is strategic focus.

By strategic focus, we mean the fundamental focus for action that an organization adopts in order to add value to its customers. Each of the two organizations came into the merger or acquisition with its own historical strategic focus. To some considerable extent, each organization had been successful in accomplishing its own strategic focus or neither organization would have any interest in the other.

The first question, then, is: what has been the strategic focus for each organization? If both organizations come in with identical strategic foci, the likelihood of a complete integration is high. The more divergent the strategic foci of the two organizations, the more incomplete the integration will be. The key message here is: let strategic focus drive decision making about what should remain and what should be changed. Culture and leadership are all about how. Strategic focus is all about historical and future outcomes. Projected outcomes are the source of resolution of culture and leadership clash. If leaders try to resolve their differences by insisting that their respective hows are better than the other’s, the resolution will never occur. The solution is to agree on future strategic focus and then decide on the implications for how to get there.

However, you say: “what how is right for what strategic focus?” This is where the proviso comes in. In order for this to work, you must be able to objectively make the connection between the desired strategic focus and the culture and leadership required to accomplish that strategic focus.

We have made these links and we have developed a way to measure them. There are four fundamental strategic foci: certainty, synergy, superiority and enrichment. There are four fundamental leadership approaches: directive, participative, standard-setter and charismatic. In addition, there are four fundamental cultures: control, collaboration, competence and cultivation.

Once strategic focus is established, the roadmap for integration can be built.

Here is an example. In early 1999, a local newspaper acquired a target marketing company that was operating within the newspaper’s circulation base. The basic rationale for the acquisition was ‘if you can’t beat ’em, join ’em.’ The target marketing company was taking advertising dollars away from the paper. Why not join forces, capitalize on one another’s unique competencies, and garner even more total advertising dollars in the long run?

Well, the alliance started falling apart, almost from day one. The newspaper had a long-standing, established routine for doing things. The target marketing company was constantly coming up with new ideas and wanting to run with them right away. The newspaper wanted to plan things out, to build slowly and to carefully track every move made and every dollar spent. The target marketing company, on the other hand, was coming up with clever target marketing tactics that no customer was asking for, but had considerable potential for revenue generation if the right customer base(s) were identified. Leadership in the newspaper was systematic, careful, and thorough. Leadership in the target marketing company was fast moving, speculative and challenging.

Our measurement system revealed that the newspaper had a strategic focus of certainty, a core culture of control and a directive leadership approach. The target marketing company, on the other hand, had a strategic focus of superiority, a core culture of competence and a standard-setter leadership approach. Our measurement system revealed that both organizations had a fundamentally similar method for making decisions, a strength to build upon. It also revealed that the two organizations essentially differed around what each was paying attention to. The newspaper was primarily attending to day-to-day realities. The target marketing company was primarily attending to possibilities.

The leaders of both organizations determined that the common strategic focus for both organizations was certainty. They could have determined to keep two strategic foci, but they chose to concentrate on one. Given this decision, the solution quickly fell into place. The leaders of the newspaper relaxed and determined with the leaders of the target marketing organization what was an acceptable risk for the latter to take. Rather than operate entirely as a separate entity, the target marketing company became, in effect, a unique department of the newspaper. All of the routine, regularized business processes of the target marketing company were melded into the appropriate functions of the newspaper. The research and development part of the target marketing organization was carefully preserved and actively enabled by newspaper leadership. The target marketing “department” was immediately provided with an expensive information technology upgrade, an advance that greatly enhanced the “department’s” ability to create and generate new, one-of-a-kind initiatives.

One year later, the combined organization was thriving.

The leaders of both organizations could have chosen a combined strategic focus of superiority or they could have chosen to keep two separate strategic foci. In either case, the solution regarding how to put the two organizations together and how to lead the two organizations would have been drastically different than the solution described above.

In the end, the best solution comes from two factors: the agreed-upon strategic focus and the ability to objectively and measurably link the required culture and leadership to it.

Footnote: The Evidence

o Michael Porter analyzed 2,700 mergers and acquisitions by 33 major US companies over a 36-year period (1950 to 1986). Results: Failure rates between 50 and 75 percent. Major cause: culture and leadership clash

o Dutch study in the prestigious journal Economisch-Statistische Berichten found failure rates of up to 60 percent in similar situations. Major cause: culture and leadership clash

o In a 1992 study by Coopers & Lybrand of 100 companies with failed or troubled mergers, 85 percent of the executives polled said that differences in management style and practices (culture) were the major problem

o In 1995, Business Week reviewed studies covering 30 years of mergers and acquisitions and concluded that a negative correlation exists between merger activity and profitability. Business Week’s own analysis revealed that stock prices of acquiring companies fell an average of 4 percent.

o In 1996, the British Institute of Management surveyed executives involved in a number of acquisitions and concluded that “the major factor in failure was the underestimation of difficulties of merging two cultures.”

o P. T. Bangsberg in the 1998 Journal of Commerce (p 2A) concluded that the key to the success of mergers and acquisitions was full consideration of employee and culture.

o In 1996, the Bureau of Business Research at American International College surveyed the CFOs and other top financial executives of 45 Forbes 500 companies. Conclusion: the number one reason that mergers and acquisitions fail is “incompatible corporate cultures.” According to Ira Smolowitz, dean of the Bureau of Business Research: “I knew culture was important, but I didn’t think it would be most important.”

o Hewitt, Inc., 1998. Hewitt Associates conducted a global study of HR implications of mergers and acquisitions. Almost 500 companies responded. When asked to identify the top challenges they encountered while implementing the transaction (i.e., merger or acquisition), HR Directors from every region overwhelmingly cited difficulties integrating the two organizational cultures. 75% of respondents cited culture integration as the most difficult issue they had to deal with.

o Pratap Parameswaran in Business Times, 1999. Cites research that merger integration success rates in the financial services industry is low with only a paltry 17 percent of mergers able to create substantial returns. The main cause of the problem is culture clash.

o Right Management Consultants research report, 1999. According to the Conference Board, the success of a merger “ultimately depends on the effective use of people.” Indeed, the Board bluntly states that people issues are “capable of derailing alliances.”

o Right Management Consultants research report, 1999. Surveyed 179 organizations. Found that the number one reason that mergers and acquisitions failed was “lack of culture integration.” They also found that managing culture “is clearly tied to success in reaching business objectives.”

o Mercer Management Consulting research study, 1997. Found that poor culture integration was the major failure responsible for the fact that, in deals worth more than $500 million, only 43 percent of some three hundred merged companies outperformed their peers in total returns for shareholders.

o A. T. Kearney Consulting research study, 1997. Reviewed 155 M&A deals in multiple industries and determined most failures to be “people-related.”

o Research shows that a majority of deals have not created significant shareholder value. In the 1980s, the average shareholder return three years after the merger was – 16 percent (Sirower, 2000)

o In the 1990s, a survey by Andersen Consulting of 150 large deals said only 17 percent created substantial returns, and some 50 percent of the transaction actually eroded value. Quoted in Bloomer and Shafer.

o 1999 J P Morgan study. Over 1/2 of M&As, worldwide, failed to reach their promised strategic and financial goals. Totaling $1.6 TRILLION in bad investments

Kaspersky Antivirus for PC Info – About This Security Solution and Its Flexible Subscription Plans

Kaspersky antivirus products are always worth using – especially for Windows users. Of course, it’s not limited to just Windows. There are subscription options that include usage on multiple devices, including Mac, Android, and iOS. Keep in mind this company has won more awards than just about any other cyber security company, so if you want to get excellent protection for your computer, this product is the best choice. There are tons of positive Kaspersky Antivirus for PC reviews from experts.

It offers protection all types of viruses, dangerous apps, suspicious websites, phishing attempts, ransomware, and more. The security is designed to protect the computer without getting in the way. It works seamlessly and quietly in the background and receives automatic updates so that you’ll know your antivirus is being kept up to date at all times.

There are different levels of protection to choose from: Basic, Internet Security, and Total Security. The free version of Kaspersky Antivirus for PC provides core protection, but nothing else. Internet Security includes all the tools required for preventing malicious attacks and for detecting malware behavior, as well as privacy tools to help you keep all of your online transactions and banking information secure.

There is also an option to upgrade the antivirus by paying a one-year, two-year, or three-year fee to protect 3 – 5 PCs. This is a good option if you have a home network or small business you need to secure. It automatically scans your computer to find threats, including the new drive-by “crypto-mining” infections that could seriously damage the computer’s performance if you not handled properly. If your PC gets infected with this, Kaspersky’s technologies help to save and reset it.

Setup and Management of Kaspersky Antivirus for PC

Another great thing about these products is that they are very easy to setup and manage. There is technical support for every type of user, including home PC users, small businesses, medium-large sized businesses, and enterprise-level businesses. You’ll be able to manage security from anywhere when you sign into your My Kaspersky account.

If you have an older PC, read the system requirements to make sure you will be able to run the antivirus efficiently. All versions of Windows from Vista on up are support. It’s recommended that you have at least 2GB of RAM and 1GB of hard disk space. Kaspersky products are available for Mac users as well.

Before choosing a subscription and upgrading, you can always try a free trial of Kaspersky Antivirus for PC. Coupons are available for when you do want to upgrade, and they help bring the price down considerably.

There are new digital threats popping up every single day, so don’t put off on buying protection. You should be able to get it at an affordable price as long as you use Kaspersky Antivirus for PC promo codes. It’s time to start protecting your computer!

How to Pick Your Business Proposal Writing Solution

Looking for a solution to help you write business proposals contracts, RFPs or grant applications? There are three main types of proposal writing systems available on the market:

  • Desktop software and template-based for PCs and Macs
  • Monthly paid subscription web-based services
  • Expensive enterprise class solutions

The prices of the various products vary; so do their features and how many add-on services you may have to purchase to make use of the system. How do you know which system is right for you? Here are basic descriptions and pros and cons of each system to help you decide.

Template-based products generally contain a variety of Microsoft Word documents that will work in many platforms and word processors, along with instructions, samples, and sometimes additional software to help manage the assembly or other processing of documents into a final polished proposal. To use a template-based proposal writing product, you simply download the product to your personal computer, and then use the templates with your word processing program to put together a proposal and print it or save it as a PDF for electronic delivery by uploading to a web site or sending via e-mail.

Template-based products are generally the easiest solutions to get started with, because most people already know how to use their word processing software. If you work remotely or while traveling, you can use a template-based product on any laptop or tablet with a word processor, regardless of whether you have an Internet connection at the time.

The license fee for a template-based product is a one-time license fee, and you can use the product as many times as you like, and as often or intermittently as you like without incurring additional costs. There are no ongoing subscription fees to contend with (which will substantially increase your total costs beyond the costs of template-based products within a couple months); you have complete control over the product material and you manage your proposal content (when you deal with trade secrets and confidential data you don’t want to be giving access to all of that material to an unknown entity that may not be able to keep your information secure).

The main issue to consider in template-based products is that the different offerings vary widely in quality, so carefully compare the actual contents of packages to be sure you’re getting the best value and a quality product. Look at packages carefully to avoid the low-quality knock-offs and don’t be afraid to ask questions and review demos.

Web-based proposal writing systems are exactly what they sound like: you type your proposal information into a web site to create your proposal online and your potential clients look at your web based proposal online. Advantages of using a web-based system are that it usually has a low starting cost (but those monthly fees add up quickly and quickly surpass the cost of a PC/Mac template package) and you don’t have to download and install a program to your personal computer, so it may initially seem cheaper and faster to use. Also, after your proposal is posted, you may have access to some analytics, such as the ability to track how many people view your proposal. However it is typically better to simply reach out to your prospects with the personal touch of a phone call or e-mail and you will gather more-or-less the same information.

A big disadvantage to using a web-based system is that the proposal software and your business information are stored on the web. A web-based system is potentially more at risk from hackers, because the data from thousands of businesses presents a high-value target for hackers seeking confidential business information. Also, a web-based solution may not be available when you need it, like those times you can’t log in when you are flying or on the road. You should also consider whether or not you can easily extract your proposal data from a web-based system for use elsewhere. Most web-based solutions are new business ventures without proven track records – and if you read some of their support blogs you will find out which ones have frequent web site outages.

Web-based programs generally offer users less guidance and formatting and styling options than template-based packages. Web programs typically favor more of a “blank slate” approach and are usually much more limited in the amount of actual proposal writing content (templates, samples, etc.) than a template-based package. Current web-based solutions do not offer many basic features or the layout, design, and graphics capabilities of word processing systems available on PCs, Macs, and tablets. You may be very restricted in how you can create, format, and lay out your proposal, so you might not end up with the most polished looking proposal when you use a web-based system (or even a web-based word processor).

Web-based systems are not very well designed for responding to RFP’s or grant requests. Most of the time you have to follow strict guidelines for how proposals are to be written, formatted and submitted that cannot be done with web-based subscription services. While it may seem they offer something “new” in a web-based interface they are typically 10 years or more behind the curve in creating proposal writing content and polished professional proposals versus other solutions.

While a web-based solution may initially seem like the lowest cost product, keep in mind that a web-based business model depends on extracting monthly fees from customers, using a subscription payment plan. Over the course of just two or three months, a web-based solution will generally cost more than a downloaded product – and the costs will keep rising.

Now for the third category: enterprise class proposal solutions. These products are targeted for the use of big businesses. Often you cannot find a price or place an order online to download an enterprise product; you typically have to schedule a talk with a salesperson to get started. Plan on spending thousands of dollars or even tens of thousands of dollars on an enterprise solution, plan on significant setup time, and plan on bringing in consultants to set up and teach your employees how to use the system.

Enterprise proposal systems may be the best solution for large corporations that need widespread collaboration for their proposal projects and large sales teams, but enterprise systems are not designed (or priced) for individuals or small businesses. Even within large corporations, an enterprise proposal system is sometimes not the most efficient choice for doing a quick custom proposal or a small team project. Low-cost template-based solutions are frequently used by individuals or small teams within a large organization for one-off project proposals or to prototype a very complex proposal.

The three types of proposal software systems are not necessarily mutually exclusive; they can also work well together. You may want to pick multiple solutions to cover a wide array of situations and needs. Many users consider a downloaded template-based package a low-risk investment and a great addition to their basic business toolkits.

Most large corporations use template-based solutions alongside other systems for quick one-off proposals and prototyping. A template-based system allows users to work anywhere, view more samples and get more writing assistance, and use formatting tools to create a polished proposal that can be delivered in print or PDF format.

Template-based proposal kit systems are generally more efficient for smaller projects. And the information from these proposal kit template-based systems can often be uploaded to an enterprise system or to a web-based system when you want to use the extra analytics and other tools they offer.

Understanding What a Well-Balanced SharePoint Intranet Solution Can Offer Your Business

Business organizations all over the globe choose to use SharePoint as their major collaboration tool hosting employees’ workplaces and corporate teams. Since great collaboration is the main source of successful business, it is also very important that startup companies use good collaborative tools. A good collaboration tool helps to maintain document management, records management or the web management very easily.

  • In simple language every intranet should offer two major groups that should help the employees to complete their daily tasks easily and enable to carry out the departments and team specific activities smoothly thereby contributing better performance of staffs.
  • Secondly, SharePoint development and intranet solutions often help to support the employee’s social life and make them feel a part of the company and to foster corporate values.

Some benefits from a well-balanced intranet solution and SharePoint development:

As a business organization, if you can manage to get the perfect balance between intranet solution and SharePoint, then you will be able to reach the 4 important goals.

Both formal and informal collaboration on a single platform:

It is true that SharePoint intranets often host work that are related to the content, while the users turn to any third party solutions in order to discuss any upcoming event of the organization. A well balanced intranet helps employees to find a place where both formal and informal collaborates, bringing in at least two major advantages.

  • Saves the time of the employees and prevents them from moving between various solutions and getting distracted.
  • Reduces the risk that employees will manage their working activities in some non-corporate messengers and share sensitive business data in an insecure environment.

Attract some rare visitors:

At times it becomes very difficult for an organization to provide all its users with job specific features of SharePoint. Let us take for example, if your procurement executives work on an ERP system, then they might not need task specific features of SharePoint. But in case they travel a lot, then it is likely that they become a frequent intranet visitor. Such balance often helps your people or team to remain updated with latest business news, updates and conversations.

Benefits from SharePoint capabilities:

Often it is seen that SharePoint is used by companies in a very limited manner like just as a document storage, support only a few collaborative sites or as a project management system for a specific team. But let’s be very clear of the fact that SharePoint is not a cheap solution. So any underuse mean wasting initial investments. Balancing various features will let you open up SharePoint’s full potential, thereby benefiting from your solution at the best.

Develop corporate identity:

Large organizations often struggle with developing the sense of belonging from their people. When the organization becomes too big, the teams often stop feeling a strong sense of place in the company. They often tend to jump for any better opportunity elsewhere and have reduced hunger to improve the business. SharePoint intranet solutions offer the ability to share company news and communications and help to develop a stronger corporate industry.

Managed workflows:

Workflows are the basis of most daily activities of employees. While they may have certain tasks to do without any dependency on others, but there are also activities that needs completion of task before it is passed to the next person. But in most corporations, the workflow often breaks. SharePoint helps here with some added third party tools.

Network Marketing: A Great Solution To Your Network Marketing Problems!

Network Marketing Success: 3 Types Of Stories

As you continue on the journey of personal development in your network marketing home business you will become more and more of a leader. You will undoubtably have more and more interaction with people and learn how to build relationships in the process.

Building relationships is the most rewarding and enjoyable aspect of building a home business. Think about the first time someone told you about how much the product or business opportunity you introduced them to has changed their life! Being in a position to help others is priceless!

There is no question, network marketing is about connecting with people.

While some people are convinced that, in order to be successful, you must know every detail about your company, product, compensation plan, the history, the top leaders, and so on-this is not always true. This method may work for some, but it is simply not necessary for everyone!

In reality, if you ask any top leader in this industry who has built a team of tens of thousands of distributors and they will all tell you the same thing:

Tools and systems are duplicatable, people are not.

In actuality, letting your tools and systems do the majority of the work for you is actually the best and most duplicatable way to build a business. Activities that take up so much of your valuable time can easily be funneled into a system that works for you 24-7. Activities like telling your story, giving a presentation, explaining the products, opportunity and compensation-all of these are best done in an automated system. This frees up you to work on building those relationship and gaining more prospects.

  • You do NOT have to be an expert presenter to succeed!
  • The people you sponsor do NOT have to be either!
  • Successful businesses are built on activities that absolutely everyone can do.

Anyone can direct someone to a website. Anyone can hand out a DVD or a brochure. Anyone can email a link to a prospect to an online video. Anyone can invite someone to an opportunity call or webinar. It is just that simple.

One of the best choices you can make in building your home business is to rely on tools and systems to deliver the message and answer questions.

Practically speaking-if someone does not understand the network marketing industry, simply direct them to the “industry of opportunity” video that was shared with you when you first started. Or if someone has questions about a product, direct them to a video that explains it in better detail. No matter what, these resources exist to help you take out the long hours of repetitive busy-work and it gives you an easy, accessible way to explain the products, opportunity and story.

Facts Tell – Stories Sell.

All top industry earning live by this motto!

In fact, every company leader I work with has shared their story with me. This is not only captivating but engaging. We care about other people and their struggles as well as their successes and achievements. We care less about a company’s compensation plan or track record.

We care less about how a company has just come out with a new product, but how their company’s products have turned someone’s live around completely! How these products helped someone’s mother overcome her lifelong health struggles or how the opportunity brought someone from the edge of financial ruin to a life of financial freedom where they are now blessed to be able to give to others in need.

Everyone has a story!

Even if you have not reached your goals yet, you still have a story! Maybe you used to work 2 jobs and never saw your family for more than an hour each day… maybe you worked for a boss who would never listen to any of your ideas for improving the company and refused to give you even the slightest raise… or maybe you have missed every holiday for the last 2 years because you are so desperate not to sink under the pressure of your debt that you are forced to work every available day… and now, finally you have a path to living a life of freedom on your own terms!

That is a story. It is something that the majority of people can relate to and sympathize with and if they see that you have found the pathway OUT of situations that they are in or can relate to they will be desperate to know how you did it.

This basic concept brings us to one of network marketing’s main lesson:

Know the 3 Types Of Stories.

So if we understand now that it is not always necessary to explain everything to a prospect ourselves but that we can leave that up to the tools and system we have, then what is our role?

Our main focus is to ask questions!

All people love to talk about themselves and it is our job to listen to them! Listen to their dreams, their goals, their families and mostly their problems. Then we can use the power of stories to relate to them on a personal level and begin building a relationship.

Stories will always be the most powerful recruiting tool you have!

There are 3 types of stories:

  1. Your Upline’s Story
  2. Your Story
  3. Your Team Member’s Story

Your Upline’s Story

When you first begin your home business your story will not be complete yet and maybe it isn’t as impressive as someone else who has been working their home business longer and has become super successful.

This is why it is important to share your upline’s story. This can be anyone you know of within your upline or in your company who has a compelling story that really resonates with you and the person you have been in contact with.

Learn these amazing stories and practice sharing them. As you talk with your prospects remember-always LISTEN and let them talk about themselves first. You will be surprised to see how well one of your stories relates with them once you have listened!

It will be natural to share something like, “I completely know what you mean! One of my upline leaders went through the same thing” and then you will share their story. Be sure to end the story with something like, “And she was able to quit both her jobs and be home with her children working her home business! Actually they just spent a month in Hawaii on vacation together as a family and are now able to afford the adoption they have had their hearts set on for so many years now”.

Again, if your prospect is talking about a health challenge they are facing share a story of someone you know of who has had a similar health challenge resolved because of your products. They will care much more about that than if you list off all the “proven” ingredients in your products and how they work within the body. Or if they are having trouble financially, share a story of someone you know of who has reached financial freedom in a similar area with your opportunity instead of showing them the compensation plan that they will not understand anyway.

That is how you build relationships. That is how you set yourself apart from everyone else.

Your Story

Of course the next story you want to develop is your own! You will have two separate stories that you will develop as you build your home business.

First is your “financial” or “business building” story.

Second is your “product” story.

The reason your own personal story is so powerful is that when you tell your own story, your ability to develop a bond with a prospect is truly maximized.

If your story is relatable to your prospect it gives the most compelling foundation to build a relationship on.

If your story is product related, imagine how powerful it will be when you share with someone that you had the same struggle but this product changed everything!

Or imagine if it is related to finances or a lifestyle goal and to be able to share that you have already achieved the very goal that your prospect is looking for! And, even more compelling, is the fact they your prospect now knows that they will have YOU to help them succeed since you have already done it!

A great story snowballs success and that is why every top earner continues to use them as a foundation for consistent and significant results.

Your Team Member’s Story

The last type of story is just as powerful to use.

The story of one of your team members.

This could be the story of one of your personally sponsored team members or someone who was sponsored by someone below you in your organization.

Telling this person’s story is more compelling than telling your upline’s story and it can also be more powerful than telling your own.

Why?

Simple. The story is about someone who has joined your business and you have helped become successful.

Now that is compelling because your prospect is in the exact same position as your team member who is now successful. Now they have been given the right mental picture of exactly how they are going to become successful by following your example.

Each of these stories is compelling.

Each has their own place.

And instead of throwing facts and numbers and ingredients at someone they simple share real-life examples of how people’s lives have changed with your product or your opportunity. They don’t feel like they are being “sold to” and you don’t feel awkward sharing because a story is personal and relatable and genuine.

Best of all, these stories are relevant at any stage of your relationship with your prospect.

Stories can help you capture someone’s interest. They can help get people to ask for more information (at which point you direct them to one of your tools to do the busy work) and they can compel a person right then and there to join you!

A Practical Example

Let’s go over an example:

A woman name Jane is actively looking for a home business opportunity on the internet. She does a lot of research and comes up with a few options that interest her. For each she fills out a contact form on a lead capture page.

The first site she looks at is John’s. He has Jane’s information because she filled out the contact form on the lead capture page. He calls her immediately and goes into sales mode. He quickly tells her that his company is the best and exactly what products they have and amazing the compensation plan is.

He has just dumped a load of information on her and she ends the call feeling overwhelmed and confused as she can’t remember what he even told her.

The other site she looked at was Jim’s. Jim also gives Jane a call. But instead of immediately filling her ear with facts and numbers and ingredients, he patiently takes the time to ask her about herself. Since he already knows she is interested in a home business he asks her what made her open to starting one. He then asks what she did for a living and what she is looking for.

What he has done is he has given Jane the opportunity to talk and share her voice. He learns that she is a stay-at-home mother whose husbands has worked 6 days a week, 65 hours each week to provide for them and that they are struggling under their own student loan debt from college and that this home business opportunity is something they desperately need.

Jim is then able to relate to Jane that his wife also stays at home with their children. He also tells her of his friend who started with this opportunity to help pay off their crushing financial debt and in just 3 months was making over $1,200 each month.

This is highly effective prospecting! Jim never uses any “selling” techniques on Jane. Not direct anyway. And Jane feels comfortable with Jim and feels like he genuinely cares about her and is not out to make a quick buck off of her. You can imagine what her answer will probably be when Jim asks if he can send her an email with a link to a video he thinks she will enjoy.

Even better is the fact that Jane is asking him questions. He never has to chase her down, instead she is eager to learn more.

Between the two approaches there is no comparison.

The facts and numbers based approach is all about selling while the story approach is about relationship.

Stories will transform your home business! Be sure to take the time to develop and practice your stories!

Why Startups Should Schedule a Consultation for a Custom Software Solution

Software development solutions can kick start your new IT business and developing a perfect and customized solution can help you cut through the competition. But if things go wrong, then your startup may become another failure on the digital scrapheap with poor codes, wrong ideas and other development issues. Doing your homework before starting a project is very important as there are various things to consider that would make your business application functional and perfect.

Creating a customized solution is the first step that you should consider as not all businesses are same and neither are their requirements. India has various options available when it comes to developing a custom software application. When you ask for quotes from several companies, you are sure to get a wide range of budget variation for the same type of job. But before you start, a free consultation with the qualified professional is a must.

Since choosing a custom software development company is of course a big decision, it has a direct impact on the outcome of your finished product.

Here in this article, we will discuss with you what are the things that you should consult before finalizing the perfect partnership.

What is the initial step that you take before starting a project?

This question will help you to discover more about the customer software development company like what they would do initially to create a product that will address your specific needs. A good company will initially focus on your business requirements rather than the technology part. They will surely go for a meeting to understand the requirements.

How do you set your project timelines?

Before you start with a project, it is important to clear on timelines. During the consultation, you can come to know about the way the company calculates the time, which should be completely transparent. And in case of changes or delay, make sure the way they will calculate cost related to the proposed timeline.

What will be the software development model that the company would use?

All customer software development companies have their own management styles of developing their projects. Whether it is a waterfall or agile, it is very important that the model suits your company’s working style. Project managers usually prefer to use agile, since it helps the client to offer feedback throughout the entire project development and also helps to keep the cost down.

How many developers will be assigned to the project?

Understanding the size of the developer’s team who will work on your project will help you to assess the capabilities and the approximate time needed to complete the project. Though only a selected team should work on your project, but it is important to ensure that in case of any developer’s unavailability, your project does not get delayed. If the company doesn’t have ample resources to handle the demands, delays may be a great possibility.

What is the success of previous software development projects?

Any reliable custom software development company would have a portfolio that is full of their success stories. In order to check whether the company is fit for you, you can ask them to show the results that they provided before. Don’t hesitate to ask for any reference contacts for other customers. You can get in touch with them later on to get the exact feedback about the company.

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