10. Negotiating a bank loan.

One of the biggest difficulties most new businesses face is raising capital. Unless we've already got money, we'll have to persuade other people or Institutions to part with theirs. Some people automatically approach their families. Do think carefully, though, before asking family members to trust you with their life savings. If the business falls, how will you tell them? Another possibility is to find a business angel-, someone who is prepared to invest in return for a share in the business. Sadly, angels are in short supply. You can use a credit card, of course, but after loan sharks this is the most expensive way of financing your borrowing. This leaves us with our bank manager who should be at the top of our list if we want to negotiate a loan.

Banks are in the business of lending money, so you'll get a polite and fair hearing Fine words won't be enough to talk them into giving you a loan. While they'll expect to see enthusiasm and energy, evidence that you've thought seriously about your proposal is essential. An intelligent business plan is the most convincing argument of all. Establish realistic budgets and work out what the absolute minimum is that you need to live on. A cash flow forecast is vital. So give details of your projected Income and expenditure and have an idea of how long it will take you to break even. If you can supply evidence of firm orders or contracts, so much the better. Be prepared, though, for some tough and searching questions from your bank manager. If your ideas don't support a reasonably friendly examination, they probably won't make business sense either

Before agreeing a loan, banks will want to see your own financial commitment to the success of your business. You must be prepared to put your money where your mouth is. After all. if you were in the bank managers position, you would probably act in the same way. They'll also want some kind of security like your car or house. Therefore, if things go wrong you could find yourself out on the street. And if the business fails, as so many do. the bank will be the first in a long line of creditors to get their money back. If you are declared bankrupt. It will be difficult to secure any further loans. And finally, on a darker note, once banks have made a decision to get their money back, it's hard to talk them out of it.

11. Market research methods.

McDonald's made a classic sales promotion blunder with its heavily advertised 25th anniversary offer. The company expected to sell one million burgers a day when it offered two Big Macs for the price of one. Demand was so great that customers had to queue for more than an hour. Two drive-through restaurants, where too many cars turned up, were closed on police advice.

Certainly McDonald's is not going to suffer any long-term damage – unlike the company which led the most disastrous sales promotion of them all: Hoover. Although it is hard to believe. Hoover offered two free nights to the US, which were worth £400, to customers who spent over £100 on its products. Hoover should have realized that this was a recipe for disaster! Over 300,000 people claimed free flights and there were numerous court cases. Overall the promotion cost Ј50m and the heads of Hoover's top executives, whose jobs were lost.

Just recently Avon, the cosmetics company, committed a similar mistake by offering mobile phones to customers who spent more than Ј15 on its products. Instead of an anticipated 60,000 handsets, there were an astonishing 750,000 requests! When Avon was forced to refer to the offer where it said that there were only limited numbers of phones available, it caused a storm of protest. Furious customers have threatened to boycott Avon's products and one representative has quit.

Recently, as a gimmick, Pepsi jokingly offered a military jet to any customer who could save enough tokens. However, extra tokens were available for ten cents each. They hadn't counted on a k harp-eyed student, who worked out he could buy the jet for £450,000, which was a tenth of its real price. He formed a •consortium which bought the tokens and he claimed his prize. At this point Pepsi went to court. Clearly, Pepsi shouldn't have indulged its sense of humour.

In fact Pepsi ought to have know n better after a previous fiasco. In the Philippines, it had announced that anyone who found Pepsi bottle tops with the number 349 could claim a £30,000 prize. A mess-up in production meant there were 800,000 bottle tops which had the winning number and Pepsi paid out more than five limes its budget before it stopped paying out prize money. This angered the public, who set fire to the company's offices and lorries.

There are four types of market research methods. These methods help manufacturers to understand the taste of customers, their opinion about some product and they help to improve the taste of their products.

First type of research is street survey questionnaire. This type helps to know consumers think of the product in general. Several people ask questions in passers-by about the product.

Second one is dustbin survey.

For example if you need to produce monthly reports with information about the buying habits of consumers. You should study the consumer for some period of time.

Third one is focus group

If you want to know about the facilities of the airport or railway station you should use this method.

And the last one is blind test.

It helps you to find out the opinion about the same products from different manufacturers.

16. Ad - makers

An Advertising Manager develops, implements, and manages the company's advertising strategy, both from a business, sales and technical perspective. It is their job to Initiate and manage discussion and sales with sponsor and agencies. They spend time negotiating agreements with outside sales representatives. managing the development of sales materials, including media kits. They are generally responsible for managing a group of advertising sales representatives. In this role, you’ll manage the creative development, production and media strategies for global, regional and local advertising. You’ll work with print, broadcast, online and outdoor. You’ll also oversee our advertising agencies to keep them motivated and producing brilliant work.

Advertising & promotions managers may work for an agency, a PR firm, a media outlet, or may be hired directly by a company to develop branding for the company's product or service. This position can include supervising employees, acting as a liaison between multiple agencies working on a project, or creating and implementing promotional campaigns. Ad management incorporates various specialized sub-functions like media strategy, message strategy, media planning, media buying etc. While advertising management is an inseparable part of the marketing department, usually, the marketing department of an organisation is concerned more with market research and evaluation of results. All the critical processes of advertising management are generally outsourced to specialized advertising agencies. For example the media buying is done in bulk by these ad agencies on which they receive discount/commission, that goes into their earning. It involves designing the strategies to be adopted for influencing the public ie media selection and deciding on the aspect to be advertised based on the image of the company and the present marketing objective.