The Almost “Secret Ingredient” to a Highly Profitable Business

Recently, I watched probably one of my favorite movies of all time:

Kung Fu Panda.

Now, before you write this off as a stupid animated movie, there’s a GREAT business lesson hidden inside if you’re an expert, consultant, or coach.

Here’s the TL;DR version of the movie:

1) A big fat panda, Po, is “accidentally” picked to become the chosen one

2) His master, Shifu, doesn’t want to train him because Shifu believes Po was chosen by accident

3) The great master Oogway, however, tells Shifu that “there are no accidents”

4) Shifu finally teaches Po the art of kung fu. Eventually, Po is entrusted with the legendary “Dragon Scroll” which holds the ancient secrets to save the kingdom

5) Po opens the Dragon Scroll only to find… nothing… and realizes: “There is no secret ingredient.”

The essence is simple:

Po always had everything he needed to become “the chosen one.”

He didn’t need anything fancy.

What he actually needed was the right mentor and the right training program.

Here’s my point:

Just like Po realized that there is no secret to becoming the “chosen one.”

No matter what the Fakebook guru’s preach, there is *NO* secret “hack,” “funnel,” or “tactic” that will turn your business into a profitable one.

Of course, you *can* find new tactics, hacks, and whatever. But, if your foundation isn’t solid (i.e., if your strategy is weak). It won’t matter which new hack you try to install into your business.

Whether that’s Facebook hacks… webinars… Instagram… or, insert whatever new tactic the latest Fakebook guru’s try to shove down your throat. Eventually, it’s only a matter of time before your business crumbles beneath its own weight.

The closest thing to a “hack” that can take you from frazzled entrepreneur to profitable business owner is learning how to write emails that sell.

The only difference is that email marketing isn’t a hack… it’s a powerful strategy.

In my opinion (which, of course, makes it a fact).

This was true when I worked my corporate job and sold for millions of dollars by email and online marketing.

And it’s been true in my own business.

To round this off.

Let me close with my favorite quote from the late, great, and esteemed, Mr. Eugene M. Schwartz.

This quote is as relevant today as it was when Eugene Schwartz unleashed these true words upon the world of advertising:

“The task of a copywriter is not to create this mass desire – but to channel and direct it.” – Gene Schwartz

Take that to heart the next time you sit down to write your latest email designed to sell.
If you want to discover how to 2x your sales and get more clients for your business, my free online training session is a great place to start.

You’ll learn how to use the old-school principle of “Infotainment” to write emails that people LOVE to read. Including: How to write stories so compelling they immediately draw customers in – even if you’re not a professional writer… and much more.

Financial Planning – Definition, Objectives and Importance

Definition of Financial Planning
Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Objectives of Financial Planning
Financial Planning has got many objectives to look forward to:

Determining capital requirements- This will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements.
Determining capital structure- The capital structure is the composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term.
Framing financial policies with regards to cash control, lending, borrowings, etc.
A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment.
Importance of Financial Planning
Financial Planning is process of framing objectives, policies, procedures, programmes and budgets regarding the financial activities of a concern. This ensures effective and adequate financial and investment policies. The importance can be outlined as-

Adequate funds have to be ensured.
Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.
Financial Planning ensures that the suppliers of funds are easily investing in companies which exercise financial planning.
Financial Planning helps in making growth and expansion programmes which helps in long-run survival of the company.
Financial Planning reduces uncertainties with regards to changing market trends which can be faced easily through enough funds.
Financial Planning helps in reducing the uncertainties which can be a hindrance to growth of the company. This helps in ensuring stability an d profitability in concern.

Role of a Financial Manager

Financial activities of a firm is one of the most important and complex activities of a firm. Therefore in order to take care of these activities a financial manager performs all the requisite financial activities.

A financial manger is a person who takes care of all the important financial functions of an organization. The person in charge should maintain a far sightedness in order to ensure that the funds are utilized in the most efficient manner. His actions directly affect the Profitability, growth and goodwill of the firm.

Following are the main functions of a Financial Manager:

Raising of Funds
In order to meet the obligation of the business it is important to have enough cash and liquidity. A firm can raise funds by the way of equity and debt. It is the responsibility of a financial manager to decide the ratio between debt and equity. It is important to maintain a good balance between equity and debt.

Allocation of Funds
Once the funds are raised through different channels the next important function is to allocate the funds. The funds should be allocated in such a manner that they are optimally used. In order to allocate funds in the best possible manner the following point must be considered

The size of the firm and its growth capability
Status of assets whether they are long-term or short-term
Mode by which the funds are raised
These financial decisions directly and indirectly influence other managerial activities. Hence formation of a good asset mix and proper allocation of funds is one of the most important activity

Profit Planning
Profit earning is one of the prime functions of any business organization. Profit earning is important for survival and sustenance of any organization. Profit planning refers to proper usage of the profit generated by the firm.

Profit arises due to many factors such as pricing, industry competition, state of the economy, mechanism of demand and supply, cost and output. A healthy mix of variable and fixed factors of production can lead to an increase in the profitability of the firm.

Fixed costs are incurred by the use of fixed factors of production such as land and machinery. In order to maintain a tandem it is important to continuously value the depreciation cost of fixed cost of production. An opportunity cost must be calculated in order to replace those factors of production which has gone thrown wear and tear. If this is not noted then these fixed cost can cause huge fluctuations in profit.

Understanding Capital Markets
Shares of a company are traded on stock exchange and there is a continuous sale and purchase of securities. Hence a clear understanding of capital market is an important function of a financial manager. When securities are traded on stock market there involves a huge amount of risk involved. Therefore a financial manger understands and calculates the risk involved in this trading of shares and debentures.

Its on the discretion of a financial manager as to how to distribute the profits. Many investors do not like the firm to distribute the profits amongst share holders as dividend instead invest in the business itself to enhance growth. The practices of a financial manager directly impact the operation in capital market.