Mohan A J Perera

Introduction Topic – Developing Social Capital through Networking

Structure of Discussion

Self Intro

Mohan began his career as a Management Trainee at the Transport Arm of Aitken Spence & Co. Ltd and went up to be

Director/ GM of Aitken Spence Cargo by June 1999 and in 2008 July re-designated as Vice President/Chief Operating Officer - Aitken Spence Cargo (Pvt) Ltd

In 2009 Migrated to Australia. At present MD/ CEO of Transco International (Aus) Pty Ltd

Synergy“When two or more people / organizations combine their efforts, they can

accomplish more together than if you add their accomplishments achieved separately”

Example - "The synergy between music beat and words of Musician"

Origin of the word Synergy

Mid 19th century: from Greek sunergos ‘working together’, from sun- ‘together’ + ergon ‘work’.

Source – Google

Synonyms for synergy

Teamwork / Alliance / Co-action / Harmony / Symbiosis / Synergism / Union / Unity / Combined Effort / Team Effort / Teaming / Working together

Source – Google

Synergy....

Path to synergy

Source – Google

Think Outside the Box

Thinking outside the box is more than just a business norm. It means approaching problems in new, innovative ways; conceptualizing problems differently; and understanding your position in relation to any particular situation in a way you’d never thought of before.

Source – Google

Think Outside the Box 11 ways to.....

Study another industry

Learn about another religion

Take a class

Read a novel in a unfamiliar type

Write a poem

Draw a picture

Turn it upside down

Work backwards

Ask a child for advise

Invite randomness

Take a shower

Change – Mind-set

Self Confidence

Proactive Positive Action

Determination & Perseverance

Attitude is a key to change.......

Social Capital

What is exactly Social Capital?

“The networks of relationships among people who live and work in a particular society, enabling that society to function effectively.”

Social Capital

The term Social Capital describes the various resources that people may have through their relationships in families, communities & other social

networks

Social Capital bonds people together and help them to make links

beyond their immediate friends and neighbours

Social Capital can be described as the “Social Glue” that holds people together in a community and gives them a sense of

belonging in a increasingly fragmented and uncertain world.

Social Capital develop relationships through doing things for one another and in the trust that we develop in one another

Social Capital may help in bonding people together and promoting a sense of shared identity, in bridging communities to the wider world

through networks that extend their communications with others

Policy makers are interested in Social Capital as a resource that may help combat social exclusion

However Social Capital may also be misused to distract attention from inequalities in wealth and resources in society and problems of poverty

Social Capital

Trust

MaturityReciprocity

Trust

One party (trustor) is willing to rely on the actions of another party (trustee)

Trust

Social Capital

Reciprocity

Responding to a positive action with another positive action

Trust

Reciprocity

Social Capital

Maturity

Maturity also encompasses being aware of the correct time and place to behave and knowing when to act

Trust

MaturityReciprocity

Social Capital

Social capital is built through hundreds of little and big actions we take

every day. We've gotten you started with a list of nearly 150 ideas, drawn from suggestions made by many people and groups. Try some of these or try your own. We need to grow this list.

Example-

1. Organize a social gathering to welcome a new neighbor2. Attend town meetings14. Organize or participate in a sports league

57. Offer to serve on a town committee

72. Hold a neighbourhood barbecue

113. Hire young people for odd jobs

150 THINGS YOU CAN DO TO BUILD SOCIAL CAPITAL -http://www.bettertogether.org

Drill down with a practical approach........

Comparison

Country Report – MDG

http://countryoffice.unfpa.org/srilanka/drive/MDG-Country-Report-2014.pdf

Starting a Business

Step 1 – Why & How

Why do I want to start my own business?

Do I have the right skills and experience?

Step 2 – Will it work?

Conduct a survey

Analyse the competition

Conduct a risk assessment

Step 3 – Choose your Business structure

Sole Trader

Partnership

Limited Liability Company

Buy-Over

Step 4 – Regulation and Protection

Register Trading Name

Licence to Operate

Insurance Contd....

Starting a Business

Step 5 – Resources

Staff

Place of operation

Step 6 – Money Matters

Breakeven point

Cash flow

Cost of goods sold

Establishment Expenses

Operating Expenses

Sales Forecast

Step 7 – Marketing

Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.

Marketing identifies unfulfilled needs and desires.

Starting a Business

Business Plan

Business Plan

Objective

Strategies & Tactics

Target Market

Financial Forecast

Ideally speaking, each corporate, department, and section objective should be:

Specific – target a specific area for improvement.

Measurable – quantify or at least suggest an indicator of progress.

Assignable – specify who will do it.

Realistic – state what results can realistically be achieved, given available resources.

Time-related – specify when the

result(s) can be achieved.

Business Plan

Objective

Strategies & Tactics

Target Market

Financial Forecast

Breakeven Analysis

The break-even point (BEP) in economics, business, and specifically cost accounting, is the point at which total cost and total revenue are equal: there is no net loss or gain, and one has "broken even." A profit

or a loss has not been made

Contd....

The break even point is the point at which income and expenses are exactly equal. The business has not made a profit or a loss, but you have recovered all business expenses.

Another way to look at it, is that at the break even point each unit you have sold has paid for itself (cost of goods sold (COGS) or variable costs) and contributed a share toward the total operating expenses (fixed costs or overheads) for the period.

The break even analysis is critical for any business owner, because you will know exactly when you begin to make a profit. The break even point is the lowest limit when determining profit margins. You will know how low a price you can offer, and the effects of discounting on your net profit.

You can calculate the break even for any period of time – a year, quarter, month, week, day – just make sure all three estimates relate to the same time period.

The formula used to calculate the number of units for break even:

Number of units = total fixed costs (unit selling price - variable unit cost)

Contd....

The formula used to calculate the value in dollars for break even:Dollar value = total fixed costs

1 - (total variable costs ÷ total sales)

Fixed CostsFixed costs are paid whether or not you make any sales and are also known as business expenses, overheads, outgoings or operating expenses. Fixed costs do not vary in proportion to sales or production.

Variable costsVariable costs vary directly with the volume of sales or production and are also known as the cost of goods sold (COGS), cost of sales, or direct costs of sales.

Semi-variableSome costs are semi-variable, that is, they contain both a fixed component and a variable component. Semi-variable costs can be incurred without sales, but are affected by volumes of trade. For example, telephone charges have a fixed line rental component and a call charge component that will increase with increased sales.

For all practical purposes, a small business won't divide these semi-variable costs into fixed and variable components. Exactly how the cost is classified is not critical, but it will impact on your break even analysis. If you underestimate the variable costs (cost of goods sold) you will underestimate your break even point.

Source - www.smallbusiness.wa.gov.au

Gross profit margin ratio

The gross profit margin ratio expresses the gross profit as a proportion of sales.

Note: gross profit is used to calculate the gross profit margin ratio

The gross profit margin ratio is used as one indicator of a business's financial health. It shows how efficiently a business is using its materials and labour in the production process and gives an indication of the pricing, cost structure, and production efficiency of your business. The higher the gross profit margin ratio the better.

Gross profit margin ratio = gross profit ÷ income

The gross profit margin is simply the gross profit margin ratio expressed as a

percentage:

Gross profit margin (%) = (gross profit ÷ income) x 100

Larger gross profit margins are better for businesses

The higher the percentage, the more the business retains of each dollar of sales,

which means more money is left over for other operating expenses and net profit.

A low gross profit margin ratio means that the business generates a low level of revenue to pay for operating expenses and net profit. It indicates that either the business is unable to control production and inventory costs or that prices are set too low.

Net profit margin ratio

The net profit margin ratio is the net profit as a proportion of sales.The net profit margin ratio shows the proportion of every dollar of sales that is left after all expenses have been paid, and remains as net profit.

Net profit is used to pay for interest, tax and distribution to the owners. The higher the net profit margin ratio the better.

Net profit margin ratio = net profit ÷ income

The net profit margin is simply the net profit margin ratio expressed as a percentage:

Net profit margin (%) = (net profit ÷ income) x 100

A high net profit margin ratio demonstrates how effective your business is at

converting sales into profit. It may mean that you are capitalising on some competitive advantage that can provide your business with extra capacity and flexibility during the hard times.

A low net profit margin ratio may mean that you are not generating enough sales, the gross profit margin is too low, or that you are not keeping your operating expenses under control to leave an acceptable profit.

A decrease in the net profit margin ratio over time may indicate cost blowouts that require efficiency improvements. A business with a low ratio might need to take on debt to pay its expenses.

Source - www.smallbusiness.wa.gov.au