Tag: costing

Developing an Advertising Budget

Posted by Winflow – June 10, 2011

If you are interested in increasing your sales, advertising your business is the best way to make money. Choosing how much to spend on advertising is the tricky part. Spending too little on advertising can mean poor results and less sales and spending too much can just end up costing your business. Some different methods of developing an advertising budget ideal for your small business include:

  • Unit-of-Sales Method.

    Unit-Of-Sale Formula, infographic by Miranda Newman. Formula provided by Canada Business.

    Determining the advertising costs per product involves using your experience and knowledge to come up with a dollar amount. This method is ideal for specialty goods or products that have limited availability due to factors like weather.

  • Percentage of Sales Method. Determining the right percent of sales to allocate to advertising can be done by looking at other companies in your industry. How much are they spending on advertising? Are you in a position where you need to spend more or less than your competition? Your sales value can be data from the previous year, future sales projections or a combination of the two.
  • Objective and Task Method. Though this method of creating an advertising budget is the most difficult, it often yields the most accurate results. It involves setting specific objectives, determining the media that will reach your target market and estimating the costs of advertising to meet your goals.

To learn more about developing an advertising budget and allocating funds, read this Canada Business Page.

If you need help developing an advertising budget for your small business, contact the Winflow Financial Group. We can be reached at 1.800.956.6897.

Supply Chain Start-Up and Management

Posted by Winflow – June 9, 2011

A supply chain is a series of companies who co-ordinate their activities to deliver goods and services to consumers and gain an advantage over the competition. Being part of a supply chain involves working with:

  • Retailers
  • Manufacturers
  • Transporters
  • Distributors
  • Suppliers
  • Storage Facilities

Managing a supply chain involves overseeing materials and finances as they move from supplier eventually making their way down to the consumer. A supply chain manager has three main duties to oversee:

  • Supplying raw materials to manufacturers.
  • Converting raw materials into finished products through manufacturers.
  • Ensuring the products reach the company through your network of distributors.

Supply chain managers are also responsible for finding the most optimal methods of transporting and distributing their inventory. To ensure an optimal supply chain make sure to:

  • Minimize transportation costs as much as possible. This will save you and your consumers more money down the road.
  • Ensure quick deliveries. Plan out the fastest routes for your drivers ahead of time.
  • Use the right type of transportation. There are many different methods of transportation to utilize when distributing inventory. Choose one that best suits your economical and inventory needs.
  • Move merchandise in the proper quantities. Moving too much or too little inventory will just end up costing you money.

For more information on supply chain management read this Canada Business page.

For advice on your small business needs, call the Winflow Financial Group at 1.800.956.6897.

Choosing the Right Lawyer for Your Business

Posted by Winflow – June 8, 2011

It is a very wise move to hire a business attorney if you currently own and operate a small business. Hiring a lawyer will help you avoid legal mistakes that could end up costing you. Choosing the right lawyer for your small business is the difficult part. Not only do have to think about what traits you want your ideal lawyer to have but you also have to think about which type of lawyer to hire. Some different types of business lawyers include:

  • A general business lawyer. Depending on your business needs, hiring a general business lawyer can be more cost effective than hiring someone who has specialized in a certain aspect of business law. These types of lawyers can assist with business structure, contract review and help you avoid legal trouble.
  • A specialized business lawyer. Examples of specialized business law include incorporation and merger laws. If your company has very specific needs, hiring these types of lawyers may save you money.
  • A small law firm. These firms are more customer-based and are quite effective in handling general company needs.
  • A large law firm. Larger firms are more likely to have specialized business lawyers which can be important to a company when it starts to grow.

If you need help determining what type of representation is right for you, contact the Winflow Financial Group. We can be reached by phone at 1.800.956.6897 or through email at info@winflowfinancial.com