Safety Net

This business concept, especially the term, is inspired by safety practices observed on construction sites.

The general idea of this concept is to identify and set a certain level of working capital, selling price, production level, etc. to better manage business variables. The goal of setting a Safety Net is to ensure business progress and resiliency during critical times such as financial set back, unfavorable market condition, or tight competition. Safety Net is usually a little over the break-even point.

Though this concept is normally used on business planning, this also serves an important role on personal financial management. In fact, the idea of saving 3 - 6 months worth of Cost of Living is based on this concept.

Improve Sales Using a Funnel

Most of us, if not all, know that marketing is the bloodline of a business and one common goal for marketing is to drive customers towards the business. There's a lot of people out there but the question is, "How would you make them spend money on your offerings?"

We can compare the business to a bottle that is left outside on a rainy day and raindrops would symbolize customers. The bottle, alone, would normally catch raindrops without exerting any effort on it. Though, we could speed up the process by using a funnel so we could catch more drops.

Same thing applies to business. Marketing strategies would serve as our funnel to drive more customers towards the business. These customers would later convert into revenues for the business. Most marketing strategies are based on a basic marketing concept -- AIDA.