Diversifying your investment portfolio

investment portfolio diversify

Investment portfolio diversification is a tried and tested technique. It includes reducing risk by spreading investments across a changing range of assets, firms, sectors and geographic places. Clearly, diversifying your investments isn’t a complete buffer against financial losses. Nevertheless, it remains an important strategy for minimising the danger that regularly helps investors to reach their financial targets.

Why does a diverse investment portfolio improve your likelihood of growth and achievement? An investment portfolio including investments with little or no relation to each other is known as a low correlation coefficient (LCC). LCC reduces likelihood of  impact of negative worth fluctuations in any one business, sector, country or asset. Diversifying your investment portfolio enables falls in the value of one investment to be cushioned by rises in the value of another.

Here are the crucial ways by which you can diversify your investment portfolio:

 

  1. Diversify Your Business Investments:

It’s clearly common sense not to invest all your money into just one company. Little is certain in the present economic climate as well as the most flourishing of businesses can endure a fall in value or even fold. Always spread your investments across several businesses and contemplate investing in firms that run in different market sectors. It’s critical to conduct comprehensive research into any company you are considering as an investment. It’s always best to seek the guidance of an independent financial advisor before making a decision that is final.

 

  1. Diversify Your Sector Investments:

Purchasing in a range of distinct sectors brings the same advantages as investing in companies that are different. In the present economic climate, there have been peaks and troughs in an extensive range of sectors. To provide your investment portfolio to a pillow against your entire portfolio losing worth, spread your investments with little correlation across industries. For example, if your investment in an organisation within the education sector suddenly experiences a dip in value, a rise in your investment that is gold could compensate for this.

 

  1. Diversify the Geographic Places of Your Investments:

An excellent way to minimise the effect of stock market moves is to spread your investments across separate regions and different countries. It’s quite a danger to place all of your faith in the fiscal policies of its ruling authorities and the economic stability of a country that is single. Again, it ’s critical to conduct research into the stock markets of different countries and get expert advice from an independent financial advisor before making any investment choice. Before choosing to invest abroad, as some developed markets are more volatile than others calculate the risk entailed, and can be affected by systemic threats.

 

  1. Diversify Your Assets:

It’s shrewd to have a good mixture of varying asset types within your investment portfolio, as it distributes danger. You will find many different types of assets, the primary kinds being bonds and shares, which often have a low correlation. Discuss with your independent financial advisor the best way to blend the asset types. They’ll have the market knowledge required to spread the danger throughout your portfolio. You should decide the degree of risk you are willing to take according to your financial aims. Are you close to the time you desire to draw upon your invested cash? Then maybe it’s time to reduce the risk in this area. You may feel inclined to take greater risks, in case you are planning a long-term investment strategy. Make sure to work with your financial advisor to create a portfolio tailored to your personal financial goals.

 

  1. Prevent Over Diversification in your investment portfolio:

Finally, diversification can protect your investment portfolio from worth changes in related investments. However, there is a delicate balance to over-diversification and being diverse enough to realise gains. You want to have enough investment in a business or sector to profit from any increase in value. It’s an instance of reaching the appropriate balance and preparation your investment portfolio carefully with your financial advisor.

Author: Diverse Investor



Identifying Unique Business Opportunities: 4 Key Questions to Consider

Recognising unique startup business opportunity

Launching a successful business requires more than just a brilliant idea; it demands the ability to recognize and seize genuine and unique opportunities. While the pursuit of entrepreneurial dreams is admirable, it’s crucial to approach potential ventures with a critical eye, ensuring that your concept possesses the potential for long-term success. To assist you in this process, here are four key questions to consider when evaluating business opportunities:

1. Does This Already Exist?

Before diving headfirst into a new venture, it’s essential to examine whether similar businesses already exist in Australia. If so, carefully analyze how your approach differs from the competition. Can you identify areas for improvement or untapped potential within the existing market? Consider introducing innovative solutions or catering to underserved customer segments to set your business apart.

Even if your initial idea doesn’t directly correspond to an existing business, exploring the success and shortcomings of established Australian companies can provide valuable insights. By understanding what works and what doesn’t, you can position your venture strategically, avoiding pitfalls and capitalizing on emerging trends.

2. Why Do People Need This?

The foundation of a successful business lies in understanding and addressing a genuine need. Before committing to any venture, thoroughly evaluate whether your product or service offers tangible value to your target audience in Australia. Can it solve a problem, improve efficiency, or enhance their lives in some way? If the answer is no, it’s crucial to reconsider your concept.

A business idea that fails to satisfy a genuine need is unlikely to gain traction or generate sustainable growth in the Australian market. Remember, true entrepreneurial success stems from addressing real-world challenges and providing solutions that make a positive impact on customers’ lives.

3. What Is The Target Consumer or Customer?

Identifying your target audience is paramount to crafting a successful business strategy in Australia. By understanding the demographics, preferences, and needs of your ideal Australian customer, you can tailor your offerings and marketing efforts accordingly. Creating a customer avatar, a detailed representation of your target persona, can help you visualize and empathize with their needs.

Consider factors such as age, gender, socioeconomic status, and lifestyle habits when defining your target market in Australia. This will enable you to develop products and services that resonate with their specific interests and pain points. A unique business approach is built upon a deep understanding of its Australian customers, ensuring that every decision aligns with their needs and aspirations.

4. Are The Resources There?

Launching a business in Australia requires a realistic assessment of the financial and operational resources at your disposal. While a successful venture can eventually generate revenue, the initial costs associated with starting a business can be substantial. Carefully evaluate the upfront investments necessary to establish your company, including equipment, supplies, marketing expenses, and potential staffing needs.

Equally important is considering the scalability of your business model in Australia. As your venture grows, will you have the infrastructure and resources to accommodate increased demand without compromising quality or customer satisfaction? Anticipating and planning for these growth challenges will ensure your business remains viable and sustainable in the long run.

By carefully considering these four key questions, you can effectively evaluate the potential of business opportunities in Australia and make informed decisions that pave the way for long-term success. Remember, genuine entrepreneurial triumphs arise from identifying unmet needs, understanding your target Australian audience, and strategically managing your resources.

Reference:

Australian Government – Business: https://business.gov.au/https://business.gov.au/


Author: Startup business owner

Recognising the potential in a prospective employee

Recognising the potential in a prospective employee

Recognising the potential in a prospective employee could be the key to your business succeeding. It has been proven that investing time and money into building a successful team is extremely profitable in the long-term.

Many companies continuously say that their employees are responsible for the biggest part of their success. But how to recognise the potential in someone?

Steve Jobs, Elon Musk, and many other great CEOs have confirmed that an enormous part of their companies (Apple, Space X, PayPal, Tesla, etc.) success, is owed to their employees. Moreover, many authors have dedicated themselves to researching the topic of team-building. They analyse and refer examples of the most successful companies in the world and concluded that if you want to grow your business and be more successful and sustainable, you have to build your workforce. Also, they all conclude that it is necessary to recruit the right people, with potential.

It may not be about formal advantages

The logical question is how to identify the right people that fit your business? The right person you are searching for may not always be those who have formal advantages, but those who have opinions and values that correspond to the principles of your company. Some successful businesses in the world foremostly practice to recruit talented people. Secondly, they then look to find an appropriate role in the team.

Three core traits

Three core traits have been identified that key performers possess: aspiration, ability, and engagement. If the person aspires, they will have the desire to take on responsible tasks, all kinds of challenges and make important decisions. Ability means that the individual has a combination of natural traits and skills. And finally, engagement is the person’s full emotional and rational commitment and devotion, the discretionary effort and intent to get or complete the job. One does not go without the other, so when you’re interviewing the potential employees, you should pay attention whether they want to do more and achieve more, whether they see a future for themselves in your company, whether they’re always ready to go the extra mile!

Passion is crucial

People with passion can change the world. It’s so much easier to stay focussed on what you are doing, if you have a passion for doing the job. But how do you recognise passion from the get-go in an employee interview? First, try to make a distinction between fake from real passion. Have you ever been harassed by an over passionate salesperson. You feel that something is not quite right, false even? Remember you are trying to identify the right people who can use all of their passion for your company’s goals. Additionally, see how they speak about their work, your business and about their plans.

Communication is essential

Now the thing that links all of the key things above is your potential new-hires ability to communicate. Let’s face it, the success of your company depends on it. That is why it is crucial you recognise the communication skills when undertaking the interviews. An employee with good potential listens to others and responds effectively. If you want your company to reach higher goals, you need goal-oriented people that can communicate clearly. See our article for the importance of communication and how it relates to customer satisfaction.

Dynamic or inflexible

Today’s work circumstances, roles and responsibility are dynamically changing. Your role could be this today and something else tomorrow. This is why you have to recognise the person’s ability to adapt to new situations. Also, growing along with your business is equally important. Consequently, if you identify inflexible individuals, who interfere, challenge everything, duck and weave tasks that are slightly out of their normal duties, watch out!

If you recognise the good traits above in any of your employees or potential employees, you will certainly be on your way to building a strong team and a strong company. Remember that employment sometimes has to deviate from the formal principles and you should trust your instincts. If you recognise a potentially good employee’s worth to your company, hire or promote them. But value passion the most, because it comes naturally and you can’t be taught this.

Author: Industry Professional



DIY vs Professional home project

DIY handyman home renovation Professional home project

Is it better to  take on a home project in a do it yourself (DIY) fashion vs. engaging a professional to complete the work? I imagine this question gets asked a lot every week in households all over the world, particularly if you are not that handy like me! It certainly has at my house over the past few weeks.   In this article, we will cover off questions to consider before embarking on a DIY project. We will talk about the potential to save thousands of dollars, compared to, is it really worth it?

Potential to save thousands of dollars

In recent storms, my fence fell over due to the high winds and fallen trees resting on it. It obviously needed fixing. My first thought was to get professionals to provide three quotes. I was quite shocked at the high price of the quotes (and the pricing differential!).  However, the quotes did involve replacement of the fence. The tradesmen don’t seem to want to repair the fence and replacement is the suggested course of action. As the fence was still in good condition i.e. straight but leaning, it got me thinking, could I fix the fence myself and potentially save thousands of dollars?

DIY, Is it really worth it?

The web is a fantastic resource, and based on the relatively simple task, my cost estimates showed I actually could save thousands of dollars. So I decided to give it a go. What could go wrong? After two weekends of hard labour, plan revisions (due to human error) and multiple trips to the local hardware store it was done. On reflection, I am jubilant with the result, which was very effective and did save me thousands of dollars. There is also the satisfaction of doing the task yourself and the pride of a job well done!

Personally, I have found the key points to consider are the (1) size of the savings, (2) complexity of the job and (3) time vs. money tradeoff. As a non-professional taking on something for the first time, estimating the complexity or time to complete the job may be very inaccurate. So you should leave some fat in your estimations and then you decide is it really going to be worth it. For example, I did not take on our recent bathroom renovation as I did not think the amount I could save (if any) outweighed the effort and difficulty of the job.

Questions to consider before embarking on a DIY job

  • What are the potential savings?
  • How difficult or complex is the task?
  • Is the time vs. money tradeoff worth it? (i.e. forgoing family or other personal time)
  • Do you have the required tools already?
  • Is the job potentially life threatening? (i.e. electrical work)
  • Have I got some good mates that may be able to lend a hand?
  • Does it have to meet the applicable standard for that code, if so will it when I finish the project?

If you can get through those questions and are still keen to proceed with the DIY, I wish you the best of luck and may see you at the hardware store on the weekend!

Author:  Professional Banker

 



Superior customer service leads to sales

customer service leads to sales

I’ve been in the customer experience game for over 20 years now, working in industries such as IT, Food & Beverage, Retail and the Services Industry and this has led me to believe that superior customer  service leads to sales. That statement sounds like a no brainer right? I believe that in every industry there is only a handful of those “Superior Customer Experience” providers who can deliver on that promise. While it’s true that no two companies are the same, it takes a certain mentality and consistency to stand out from the crowd. My philosophy around superior behaviours is that we have to believe, we are all sales people, either directly or indirectly. And only when you are embracing that sales mentality and start focusing on a positive end to end sales experience, will your customer start to recognise a superior customer experience. With that said I want to share my experiences on why walking the customer experience is a journey worth travelling and how deploying a sales business model that encourages out of the box thinking will give you an edge over your competition. I will also touch on how embedding measured customer communication into your culture can identify problems early and avoid bad customer experiences. We will then run through my top 4 tips on why you should stand out from the crowd, why it is better to under promise and over deliver, why communication is king, and why empowering the team to make decisions is so important.

We are all sales people

As a newly recruited junior Technical Support Representative in a small two person call centre in 2000, the manager introduced me to the team. There were only twenty people in the company back then and I asking one of the guys there “So what do you do?” His response was “The same as you. I’m in sales”. I began to correct him “No I’m the new tech support guy”, before he interjected, “We are all sales people here mate”. My impression at the time of a salesperson, was the dodgy car salesperson who persistently called you after a test drive and made you feel like you were about to lose your first child if you didn’t sign up that day. This was confusing to me, as I certainly didn’t consider myself to be one of them. As a Technical Support Rep, you’re hired because of a genuine desire to help people and provide advice. That is why you would follow this type of career. I certainly didn’t consider myself a sales person.

The End to End Sales experience

After many years in and around various customer support, technical support and customer care roles my observations have lead me to change my perception in that, we are all salespeople in the end to end sales experience. Obviously, my colleague wasn’t literal when he told me I was a salesperson. After all in Technical Support (TS), what did I have to sell? In most cases, it is up to TS to help customers who are frustrated with their products and services issues and get them back up and working again. However, what is derived from these observations is that it was the customer’s end to end experience that would ultimately dictate the decision of the client to buy again. The TS team played a critical role in that customer’s sales experience and many cases it was the TS team which brought them back from turning away for good. It has become apparent; we are all salespeople, but not ordinary salespeople. We are all here to sell the end to end customer experience, and each person in the company from marketing, sales, finance, support and services play’s their part in any potential future sale.

Walking the customer experience is a journey worth travelling

One interaction with a customer is not what you are not evaluated on. The typical customer’s decision-making process will mean that you are judged on their experience over the entire journey with your business. Most customers are forgiving and will allow for a mistake or two; however, one bad experience could mean you never get that opportunity to impress the client again. In today’s digital age that whisper of a bad experience can travel fast to others. That’s why walking the customer experience is a journey worth travelling, and you need to put yourself in the client’s shoes on a regular basis to understand how easy or difficult you are to do business with. I performed this exercise when working in tech support. It became the norm getting complaints about delivery delays. I thought it was normal. One day a customer ripped right through me as he explained his frustration at us delivering a critical part two days late and I couldn’t accept it as the norm any longer. This was a moment of truth situation where it was important to find out what caused the customer to unload on me.

Under promise and over deliver

What we uncovered was that it wasn’t the fact that our parts were late at all. In fact, we had sent the parts within our standard SLA’s, which was five business days. What became apparent was that whenever we quoted an ETA to a customer, we would always provide a range that it will arrive in 3-5 days. It wasn’t obvious back then, but all the customer heard was that it should arrive in three days’ time. While our delivery team, relied on the five days and would not put any effort into exceeding that timeframe. Customers want certainty so if something might take five days to arrive, commit to five days, however, do your best to exceed that, and you’ll have a happy customer when it arrives at their door earlier than expected. Without walking through that journey with some of our clients and identifying that pain point, we would have continued as normal and potentially lost customers along the way.

Embedding customer communication into your culture

If there is one thing I’ve learnt from working in the customer experience industry, it’s that customer communication needs to be embedded into your culture to enable successful customer relationships. I recall an incident where one of our customers had a major issue with their system, and it was expected that the parts would take several weeks to arrive. No doubt the fact the parts would take several weeks was a concern, to begin with. This customer had engaged our company for years and understood that there were long lead times associated with these parts in question. The customer then called us up with a couple of days to go and asked how their parts were travelling. That’s the moment the house of bricks fell over. If only we had kept the customer informed along the way! It turned out the parts had been delayed by a week and the team involved hadn’t passed the message along to the account management team, hoping the parts would miraculously arrive on time. It’s a mistake you only want to make once, and if we had installed a regime of continuous communications, both internally and externally, we might have avoided an awkward situation and given the customer a chance to make alternative arrangements.

Give the power to make common sense judgments

I recount a story of a young retail trainee keen and eager to impress. He was working the returns department for a couple of weeks and in general, things went smoothly, with customers approaching and returning damaged/faulty goods, with receipt in hand. One day a woman with kids in tow arrived with a bag containing school shoes with the sole peeling back. This trainee had worked the shoe department before so he knew they were our shoes; however, the policy at the time clearly stated no receipt, no refund. The women pleaded with the trainee and wanting to make an impression with management so he stood his ground on that ruling. The woman then proceeded to ask to speak to a manager. And to my surprise, the manager sided with the woman. When I reflected on this situation, it’s easy to understand the reason behind management supporting the women’s claim. She seemed honest in her complaint; they were school shoes and should last longer than a few months. She claimed to have legitimately lost her receipt, however, what continued to frustrate the trainee and other team members not in management positions was that they were not given the power to make a common sense judgment. This ultimately impacted team moral, and it wasn’t until after a couple of staff members left the company and completed an exit interview did management begin to understand the impact that had on the team.

It’s some of these lessons that have helped me grow as a customer experience professional. And there are four core philosophies that I go back to on a regular basis that I’ve discovered works when creating superior experiences to remember:

Customer Service Tips:

1) Recognise everyone’s contribution to the sales experience

It’s important that everyone in the business recognises what they are doing can ultimately lead to a sale, and therefore could be considered part of the sales experience.

– Finance contribute through timely invoices

– Technical Support provides sound advice and timely resolution of problems

-Supply Chain help by getting the product out on time.

-Sale team engage directly and communicate with the customer

Without each and every one of these groups contributing to the end of end experience, we wouldn’t have a sale.

2) Walk the customer journey

You must walk the customer journey to understand truly how easy or how hard you are to work with. Spend time with the customer, listening to their needs and what works and what doesn’t.

3) Communication is king

By keeping the communication flow going throughout the process you’re not only keeping yourself honest by keeping track of the customer’s request, but you’re also given the customer options should something not go to plan. Even in times of bad news, the customer is likely to respect you for being honest and open in the long term, which is why communication is king.

4) Empower the team

Empowering the team to make judgment calls is critical in building a team of trust.  People make mistakes. However, it’s what you learn from those mistakes that counts. Empowering your team to make important customer decisions, while providing some space to make the odd mistake helps build a strong culture of trust and rapport.

Author: Clinton Smith