Entrepreneurship Program: Degrees, Courses, and Job Prospects!

The entrepreneurship program is one of the study programs that is in great demand today, especially for those who want to become young entrepreneurs or work in the business sector.

So what exactly is this entrepreneurship program and what are the courses and job prospects like? Also, where are the best entrepreneurship majors in Indonesia? Read more about this program here!

Description of Entrepreneurship Program 

Entrepreneurship is self-employed. According to The Great Indonesian Dictionary (KBBI), entrepreneur means a person who is smart or talented in recognizing new products, determining new production methods, setting up operations for procuring new products, marketing them, and managing their operating capital.

So in short, the entrepreneurship program is a study program for students to learn all about entrepreneurship. Some of the main things that will be studied in this major are identification of good business opportunities, concepts, and strategies in setting up and developing a business.

All of these things relate to business management procedures and innovation, developing creativity in businesses, and how to find and run new businesses.

Knowledge and Skills 


There are several knowledge and skills that will be obtained when choosing this major as a study program:

  1. Detail oriented ability.
  2. Ability to describe ideas.
  3. Communication skills.
  4. Ability to work with a team.
  5. Research and analysis skills.

Why Should You Choose an Entrepreneurship Program?

There are many reasons why choosing entrepreneurship as a study program is highly recommended. Currently, entrepreneurship has a very important role in the national economy, making many universities start to open this study program.

In addition, the number of new businesses or start-ups continues to increase in Indonesia every year, now there are thousands of them. Entrepreneurship programs prepare graduates to enter or create new businesses of their own.

There are many capital borrowers including the government that makes many people to easily get capital after graduating from the entrepreneurship department to create new businesses. In addition, graduates of this study program are indeed prepared to be able to own and manage their own business after graduation.

Related article: Keunggulan Memilih Jurusan DKV di Sampoerna University

Entrepreneurship Program Courses

There are many courses that will be studied in the entrepreneurship program, here are some of them:

  • Business Macroeconomics
  • Accounting and Business Decisions
  • Business Information System
  • International Business
  • Human Resource Management
  • Entrepreneurship and New Business Creation
  • Change Management and Organizational Development
  • Management Skills
  • Innovation Management
  • Business Microeconomics
  • Entrepreneurial Business Planning
  • Managerial Research Methods
  • Creativity and Innovation
  • Taxation
  • Effective Organizational Design
  • Competitive Analysis
  • Consumer behavior
  • Business Communication
  • Marketing Management
  • Business Process Development
  • Business Law
  • Operation management

Entrepreneurship Program Job Prospects


How are the job prospects in the entrepreneurship program? It is the most frequently asked question about this major. Whereas, the job opportunities for graduates of this major are enormous, they can create jobs for themselves and also for others.

Apart from that, this study program also prepares their graduates to become entrepreneurs, not only for new businesses, but also to increase the productivity of existing businesses.

There are several job prospects for graduates in entrepreneurship program, such as:

  1. Beginner entrepreneur
  2. Business designer
  3. Business consultant
  4. Franchisees
  5. Investors
  6. Social entrepreneur
  7. Business developer
  8. Business companion
  9. Company policy maker
  10. Human resources consultant
  11. Financial consultant
  12. Credit Analyst
  13. Public auditors
  14. Marketing consultant and analyst
  15. Market research analyst and marketing specialist
  16. Sustainable business planning
  17. Online marketing strategy maker
  18. Business development manager
  19. Capital investment manager
  20. Business teacher

Lectures in the Department of Entrepreneurship 

In this study program, students will be learning about good business management and if it is suitable to SOP (Standard Operating Procedures), as well as a focus on new ideas or widely unused ideas. Basically, studying in this major prepares someone to manage a business from scratch into running the business on a daily basis.

Business models management, allocating resources, and developing company products are some of the things to be learned, as well as identifying opportunities, planning businesses, seeking creative ideas, and developing innovative businesses with measurable risks.

Entrepreneurship Program at Sampoerna University

Entrepreneurship culture has become part of Sampoerna University’s DNA. The history, resources and experience of Sampoerna University in entrepreneurship make this university a perfect place to learn, not only how to start, but how to finish well.

The degree in entrepreneurship from Sampoerna University is Bachelor of General Management (S1). This bachelor degree in management with a concentration in entrepreneurship combines coursework and the application of real-world entrepreneurial principles. It is done through a business incubator owned by Sampoerna University, business case studies and through a partnership with Mekar, a venture capital firm.

In addition, Sampoerna University also brings successful entrepreneurs in Indonesia to come to Sampoerna University on a regular basis to share their challenges and successes with the campus community through the CEO Talks and Founders in Action programs.

Studying in the entrepreneurship program will provide an overview of the latest ideas in new business creation, financing, growth and innovation. In 2017, all graduates from the Faculty of Business found jobs immediately within 2 months of graduation.

The following are careers that can be pursued after graduating from the entrepreneurship program at Sampoerna University:

  1. Entrepreneur
  2. Intrapreneur
  3. Business Manager
  4. Product Manager
  5. Investment Manager
  6. Business Intelligence Analyst
  7. Business Consultant

Scholarship Opportunities at Sampoerna University

At Sampoerna University there are lots of opportunities to get scholarships for all students. In addition, graduates majoring in entrepreneurship from Sampoerna University also have the opportunity to obtain a degree from the University of Arizona, one of the world’s leading universities due to credit recognition from the campus.

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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Prospects of Banking and Finance Program at Sampoerna University

If you like to manage income and expenses or want to start your own business, you must be familiar with banking and finance. For you who want to pass on these skills or abilities, you can study finance-related majors.

Banking and finance is a study program with a focus on finance, such as banks, insurance, savings and loan institutions, capital markets, and transactions within them. In addition, this study program also has promising job prospects with high demand in the industry. This department at Sampoerna University is included in the Faculty of Business study program.

Before discussing the prospects for these majors, let’s discuss what banking and finance majors are, the skills that must be possessed, the study courses, and so on.

What is a Banking and Finance Program?

This department studies banking and finance in Indonesia, especially financial management in the banking sector. In this major, you will learn about the functional aspects of this field, both conventional and sharia.

Several tasks that will be carried out, such as frontliners (customer service and tellers) and back office (administration and audit).

This major generally consists of several levels, namely Diploma 3 (D3), Diploma 4 (D4), or Strata 1 (S1). Several universities in Indonesia provide these majors at the undergraduate level, such as Sampoerna University in the Faculty of Business which will later hold a Bachelor of Economics degree.

These graduates have great prospects for a career in banking and finance.

Advantages of Choosing This Major

banking and finance

Professionals in this field will always have high demand from businessmen. In the finance industry, you will learn how to invest, while in the banking sector, you will be taught about the process of managing a business from the banking sector, so that graduates will have competence in that field.

The prospects for work in banking and finance are very wide open because this industry is always developing following the era and technological developments. The existence of technology companies such as financial technology startups (financial technology or fintech) is a big opportunity for these graduates. 

Required Skills

The required skills in this major includes:

  • Communication skills
  • Managerial skills
  • Research skills
  • Analytical skills
  • Ability to work in a team
  • Ability to be detailed, thorough, structured, and diligent expertise

Related article: Jurusan Kewirausahaan: Gelar, Mata Kuliah, hingga Prospek Kerja!

Banking and Finance Program Courses 

Here are the courses of this major that are commonly studied at universities in Indonesia, including Sampoerna University.

  • Bank Products
  • Bank Services
  • Customer Service and Banking Ethics
  • Banking Audits
  • Overseas Payment Traffic
  • Financial Markets and Instruments
  • Business Communication
  • Bank Credit Management
  • Banking Account
  • Banks and Other Financial Institutions
  • Operational Management
  • Taxation
  • Introduction of Accounting
  • Financial Management
  • Commercial Law
  • Business English for Banking
  • Marketing Management
  • Computer Application
  • Corporate Budgeting
  • Financial Statements Analysis
  • etc.

Banking and Finance Program at Sampoerna University

banking and finance

The Banking and Finance Department at Sampoerna University educates the next generation of professionals in the sector of banking and financial services. A program, developed in collaboration with HSBC, provides experience with academic training delivered by the best and experienced educators in this industry.

In this major, students will learn how to manage money in banks and investment institutions, manage money and provide loans, obtain various types of financing, and how to assess the financial needs of companies and individuals.

Through Sampoerna University’s partnership with HSBC, students will get the opportunity to win scholarships and take part in internships as part of the program.

Students who take the General Management study program (majoring in banking and finance) will also earn a degree from the University of Arizona, one of the world’s leading universities.

Excellence of Banking and Finance Program at Sampoerna University 

Here are the advantages why you should choose this major at Sampoerna University, such as:

  • Focus on delivering relevant academic programs
  • English as the medium of instruction
  • Learn from the best teachers
  • Real-world work practices
  • Study abroad opportunities
  • Technology enhances teaching and learning
  • International standard curriculum

Job Prospects of Banking and Finance Program at Sampoerna University 

Sampoerna University graduates have great opportunities for careers in this field. It was proven in 2017, all graduates of the Faculty of Business got the jobs in just 2 months. With this experience, graduates can become:

  • Company Treasurer
  • Financial Advisor
  • Financial Risk Analyst
  • Credit Analyst
  • Investment Analyst
  • Account Officer
  • Funding Officer
  • Insurance Broker
  • Investment Banker
  • Loan Officer
  • Retail Banker
  • Sharia Banking
  • Risk Manager
  • Financial Economist
  • Financial Consultant
  • Financial Technology Startups
  • etc.

Similar Majors to Banking and Finance

Here are some majors that are similar to Banking and Finance program, such as:

  • Accounting
  • Business Administration
  • Sharia Financial Management
  • Public Sector Accounting
  • Financial Management
  • Banking Management
  • Computerized Accounting
  • Asset Management
  • Etc.

The academic program in Banking and Finance program at the Faculty of Business at Sampoerna University is designed to meet the nation’s lack of talent in this sector and ensure that all students are able to compete for jobs nationally and abroad.

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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Merchandise Meaning, Functions, and Types

Merchandise is an item that is often used by people and companies when holding certain events as souvenirs or gifts. It is one of the most popular media that is used to support promotional activities, or even used as a source of income.

As one of the marketing elements, merchandise is the right choice in today’s era of digital marketing. You might see examples of it in many places such as markets, supermarkets and malls. People might also recognize merchandise as souvenirs.                                                                                                                                                                                                     

What is Merchandise?

Merchandise is often used as a souvenir or compliment when attending certain events. It is also used to attract people’s attention to buy something that is being offered or promoted. 

As a brand awareness, companies often used merchandise to remind customers about their product or business. It makes a lot of companies make merchandise and put their logo so it would be easily seen by customers. 

Companies put the logo of their brand as a media for promotion and advertising. It is usually made from goods that are used in everyday life so that people can use them.  

Function of Merchandise


Merchandise has an important role in marketing, because it can help the business. It has several functions including communication as a marketing strategy implemented in various media. Other function of it include: 

  • As a medium to introduce products to the public. 
  • As a product branding. 
  • To expand the network. 
  • To increase sales.
  • To attract visitors at an event. 
  • As a medium for promotion. 
  • As a souvenir. 

Type of Merchandise

Merchandise should be tailored to the needs and desires of the parties who need it. Therefore there are several types of it and companies who need to make them could choose from the option of a certain type. Here are some types of merchandise that could be an option. 

Daily Product Merchandise

This first type of merchandise is one of the most chosen ones by brands, because just like the names, daily products could be usable in everyday use. Some examples of daily product it are glass, mug, notebook, tote bag and other goods that could be used daily.  

Fashion Product Merchandise

Fashion product merchandise such as t-shirts, jackets, masks, aprons and other products are usually chosen by brand owners or businesses that are engaged in fashion. 

Unique Product Merchandise

These types of merchandise have their own uniqueness that attract business owners in using them, such as stickers, lightstick, and others. Brands that often use unique merchandise are usually targeting fans of music groups, so that the product can be used for concerts. 

Related article: Pengertian Strategi Pemasaran, Fungsi, Contoh dan Elemen

The Importance of Merchandising for Business

It is often used as a display for company name such as brand, logo and other profiles. Not only have impacts for big companies, but merchandise is also impactful for customers. Therefore merchandise is important for both the brand and the customers. 

Consumer Appeal

Some people buy a product just because they can get it as a bonus. Therefore it could be a habit offered by certain brands. Although customers might not be able to get a certain merchandise that they want because it is randomly given. Nevertheless, it shows that merchandise still has charm in customers’ eyes. 

Encourage Product Competitiveness Improvement 

Competition between markets for certain products might not provide pleasant conveniences. Therefore companies or businesses must be able to provide added value and be different than their competitors. In addition, it is one way to attract customer’s attention.  

Appreciation for Customer

When a business organizes a certain event or activity, they could give appreciation to customers by giving them merchandise. Giving products to customers could be an indirect appreciation for using their brands and products. 

Long-term Media Promotion

It could be a long-term media promotion for a business, because the product could be used for a long time. Consumers could easily remember the brand because they use the product for everyday use. It is often considered superior to other promotional media such as brochures. 

Merchandise that is Popular and Preferred by Consumers


There are various types of merchandise that could be chosen, along with the prices, the usage and the goals in promotion. Some companies order it in large quantities because it is cheaper. These are several types of it that are popularly used for promotion and preferred by consumers.  


When you order a shirt, you could choose between the collared or non-collared shirt, then add a brand logo or tagline on the shirt using screen printing. Shirts are commonly used for promotion or company events for it because it is very useful for consumers. 


Hats are also commonly used as merchandise and the models are adjusted to trends. For instance baseball caps are chosen because they are commonly used by consumers. Hats are often used for it because it is easy to place the logo or business brand in a place that stands out. 

Tote Bag

Many consumers preferred tote bags as a merchandise, moreover it the tote bag has an attractive design. In addition, tote bags are also durable and useful for everyday life. Materials that are often used for tote bags are canvas cloth because it is considered cheap.  

Mug or Tumbler 

Mugs or tumblers are mostly chosen as souvenirs. It is preferred because it is durable and could be used in everyday life. Mugs are one of the merchandise with high demand because of the good quality and attractive design.  


Stationary such as notepads and pens are often used as merchandise for companies with tight budgets because it is considered cheap. Companies give stationary to consumers as a gift because they were involved in a certain activity such as seminar or workshop.  

Key Chain

Key chains are one of the budget saving options for it. Not only because it is affordable, key chains are also durable and easy to fit a desired design. 

Travel Bag or Suitcase

Travel agency companies usually choose merchandise as executives. However it requires a large budget in purchasing suitcases or travel bags as merchandise. Sometimes, there is nothing wrong with choosing this type of it in order to give consumers happiness.  

Tips for Choosing Merchandise

Useful Items

The purpose of a brand creating it is not only to attract consumers in buying their product, but also to offer useful and durable items. It might cost higher but it came with good values too. 

Adjust to Target Consumers

When choosing a merchandise, it is important to consider your target consumers too. A business needs to analyze their target consumer needs. Therefore they can produce a large amount of it that is useful and needed by their target consumers. 

Quality Products

It is often used as a promotional medium for a business products or services. Although it is given freely, it is important to choose good quality products because higher quality merchandise could also help the brand earn successful promotion. 

Sustain Usage

One of the functions of it is to make consumers remember the brand continuously. Therefore it is important to choose a type of merchandise that could be used repeatedly for a long time. The longer consumers use the merchandise, the more embedded the image in their memory.

That is a brief explanation of merchandise, its definition, the function and also how to choose products as souvenirs. Sampoerna University and Faculty of Business provides further information and understanding on many topics in the business industry, including it that could be used to advance the company. 

Sampoerna University implements an international standard curriculum so that their students can learn theory and the best practice. Sampoerna University also provides comprehensive facilities and international quality lectures for all students. 

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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What is a Memorandum of Understanding?

Memorandum of Understanding or MoU is a formal and official statement of an agreement which is usually used in business between two or more parties regarding an agreement related to work in particular and used for certain things. 

Memorandum of Understanding is not just an ordinary agreement because it is intended as a statement of several important components and elements. Before creating MoU, it is important to identify and understand the goals to be achieved as well as the intended examples. 

Memorandum of Understanding Meaning

Memorandum of Understanding is an agreement between two or more parties which is stated in a written and formal form. In Indonesia, there are several terms used to refer Memorandum of Understanding, such as nota kesepakatan, perjanjian kerjasama and nota kesepahaman. 

The purpose of MoU is believed to be the first step in the process of negotiation and transaction form of the collaboration. Memorandum of Understanding has a complete explanation regarding both parties concerned in the agreement, although it is not a binding agreement. 

A Memorandum of Understanding is a preliminary agreement that ensures all parties involved in a collaborative agreement. By knowing all the conditions that must be met in order to participate in a cooperative relationship, all the participants will learn the importance of each other. 

Sometimes there are pirates who create an agreement in MoU which includes the international to create legal relations. Therefore there are also several legal consequences and reasons in MoU, especially for parties who violate the agreement. 

What is Memorandum of Understanding According to Experts

memorandum of understanding

These are the Memorandum of Understanding definition according to experts:

Erman Rajagukguk

Memorandum of Understanding referred to as a document containing mutual understanding between the parties. Before the agreement is made, all the contents of MoU should be entered as a contract so that it has binding force between the parties. 

Munir Fuady

Memorandum of Understanding is an agreement in the preliminary stage, meaning that there will be a continuation process of it. This Memorandum of Understanding conveys the existence of it as a letter with the form of principal agreement related to anything, usually happens in a business partnership. 

Characteristics of Memorandum of Understanding

There are some characteristics to recognize the Memorandum of Understanding, here are some of them.

  • In general, MoU is not complicated and concise, commonly found to contain only a page. 
  • It contains principal matters, but some of them also contain general matters. 
  • MoU is a preliminary, followed by another agreement whose contents appear in detail.
  • It is intended for a short period from a month to a year. 
  • If there is no further follow up to the agreement in detail, then the MoU is canceled. 
  • In general, a Memorandum of Understanding is made in the form of an underhand agreement in the most common form. 
  • It is used as the basis of an agreement both for the benefit of many parties, such as investors, shareholders, the government and so on. 

Purpose of Memorandum of Understanding

There are some purpose of Memorandum of Understanding, which are:

Ease of Cancellation 

In an unclear business situation, it is possible for a deal to be canceled. Therefore, MoU is made due to the lack of certainty regarding the cooperative agreement, even though both parties felt the need to follow up regarding the future collaboration. 

Temporary Bonds 

The occurrence of an agreement through the signing of the contract takes time as the negotiations are sufficient. Therefore MoU is made as the temporary bond for both parties before signing the contract. 

Considerations in the Agreement 

Sometimes there is a condition where the existence of collaboration raises doubts from the parties, therefore before the contract is made, MoU is used as a temporary agreement. 

Big Picture Deal

The executive creates the general detail in the MoU, while the detailed content and technical aspects of the agreement is carried out by expert staff.  

Related article: Pengertian Net Present Value, Manfaat, Rumus dan Cara Hitung

Structure and Content of Memorandum of Understanding

memorandum of understanding

The Memorandum of Understanding has a certain structure and content which is a provision that must be considered when creating an MoU. Some of the fixed structures are title, introduction and conclusion. Meanwhile the other things that are included in the contents of the MoU are as follows.


In general, the title is accompanied by the letterhead, logo and important information of the company. It is included as a representation of the agreement, besides it also shows all the parties involved in the agreement. 


The introduction contains the details regarding the place and time of the emergence of negotiations. There is also information regarding the detailed identity of the parties and a brief description of the collaborative agreement that will be carried out later. 


The most important part of the MoU contains the objectives, scope of the agreement, provisions, powers, and wills of each party. Including the period of the agreement and other important matters. 


In general, the conclusion contains information which states that the agreement has been made by both parties. All the making of the agreement is without any coercion and pressure from any party.


The MoU will not be valid without signatures of both parties. The signed party is the one who is bound by the agreement. In addition to the signature, to strengthen the legal force it is usually followed by stamp duty. 

Memorandum of Understanding Example 

Difference between MoU and Contract

MoU is a document containing a pre-contract agreement which can be temporarily made by two parties. Even so, if there is no further continuation then the collaboration could be canceled.

Meanwhile, a contract is an agreement document made based on the awareness of each party in establishing and implementing cooperation. There are provisions related to contract as regulated by the Civil Code (KUHPerdata) with a legal consequences for every violations.   


Before creating Memorandum of Understanding (MoU), it is necessary to understand the concept of it also on how to make an MoU correctly, therefore it is easy to read. 

MoU is a temporary document before the actual contract used in running a business. The purpose of using MoU is to ensure the agreement between two parties who are about to work together and partners in business. 

This is a brief explanation of Memorandum of Understanding, starting from the definition, the benefits, the characteristics, to the examples of MoU. Sampoerna University provides a clear understanding of important terms in the business world, Sampoerna University and the Faculty of Business are ready to produce reliable Indonesian businessmen. Sampoerna University applies an international curriculum which teaches students not only the knowledge but also the theory of business. Students are encouraged to practice the knowledge they got in the facilities with international quality teaching staff which are provided in Sampoerna University for all students. 

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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Direct Selling – Its Types, Advantages and Disadvantages

Direct selling is a circumstance where a seller sells their own products directly to consumers or buyers without using a third party or commonly referred to as an intermediary.

Although there are many types of sales that can be applied in marketing strategies, not all of them can be done easily as a whole. Sellers in this case need more detailed information about the method used. Once they figure out the way and understand it correctly then it is easier for them to apply it in a real-life situation.

Definition of Direct Selling

What is direct selling? It is one of the methods applied in offering services and goods. This method is used to market products directly to consumers. A situation that is common in non-retail environments.

This method is usually used in the home, virtual, or online stores in other places that are non-official stores. The application of this method provides more functions one of which is obtaining products from intermediaries in the distribution process. Therefore, the product will be sent directly by the company to the place where the consumer is or has previously ordered.

Direct selling means a sales activity that is not the main activity carried out by a company or individual in business. There are many different direct selling techniques and companies can choose which one is more appropriate for their businesses. Many direct selling techniques are used because they are considered very effective when applied.

Types of Direct Selling

direct selling

3 types of direct selling exist in the business world, each with its meaning and purpose. The distribution of direct sales is based on how the seller conveys the product to the consumer, the following is an explanation of each example of direct selling.

  • Host or Party-plan Sales

The use of party-plan sales direct sales is applied to group settings or when there are many potential customers. Sellers will create a titled social event which is the goal to promote the products they sell.

  • Single-level Direct Sales

This type of selling forces salespeople to visit one-on-one to the homes of potential buyers. This means that for those who have a very large percentage of wanting to buy, this type can also be done offline or online.

  • Multi-level Marketing (MLM)

It has become a more familiar term because this type of sales has in recent years spread to remote villages. The focus of MLM is on recruiting new members, not on the success of selling products.

Advantages of Direct Selling

  • Direct contact

Producers in this case the seller have a great opportunity to meet directly with potential buyers or consumers. This condition provides many advantages, besides meeting consumers directly, they also know what customers need to create business opportunities and provide services that suit their needs.

  • Reduce Maintenance Cost

This condition occurs in a non-retail environment, a seller does not have to set up a company such as a shop to sell products. It takes a lot of money to set up a shop, and direct sales can increase profit margins. Because having a shop means having to spend a lot of money on maintenance.

  • Profit Margin

First and foremost is the high-profit margin against the parent company and the seller, most entrepreneurs also adopt this method to make a lot of profit. While small entrepreneurs with limited funds, will usually save on mediator fees and increase profit margins.

  • Consumer Response and Satisfaction

This advantage is what entrepreneurs want the most because customer satisfaction with the products sold is a factor in the progress of the company or business. Moreover, a good response is received, so the information can be used to improve product quality and maintain customer loyalty.

Also read: Understanding Break-even Point – Its Basics, Elements, & How to Calculate

Disadvantages of Direct Selling

In addition to having many advantages, this way of doing business certainly has a negative impact that can be a drawback. There are several drawbacks to the direct selling system, such as being difficult to use by sales representatives and distributors, not providing support for business growth, representation must be with good marketing skills, and unclear sales focus.

Direct Seller Duties

  • Mastering Product Knowledge

It is the most important task for a direct salesperson, to master the products being sold because indeed all activities of the seller with consumers will be directly related to the products offered. Consumers will also usually ask for various kinds of product information, therefore knowledge of the product is very important.

  • Doing Direct Promotion

The direct promotion has become an obligation for direct sales, as well as product offerings to potential customers. Therefore, officers in this case are required to be smart in carrying themselves, especially when marketing products in small or large quantities.

  • Able to Present Products

This ability must be possessed by sales officers in the field, the aim is to attract the interests and desires of buyers from potential consumers. Products will not only be displayed to generate potential buyers, but it also takes the expertise of the salesman in offering the product to attract attention.

  • Approaching Consumers

Workers in implementing this must be with a direct approach to consumers as well as bring offers in the form of products. The approach taken is to make potential buyers interested in the products being sold, politely and kindly. The point is to make potential buyers feel comfortable and willing to buy the product.

  • Able to Read Big Opportunities

Companies that have a business in the field of direct sales must have salesmen who can see and read great opportunities, the foresight of a salesperson who goes directly to the field. Meet consumers and prepare for prospects. Besides,  it is necessary to obtain location opportunities to make direct sales.

Direct Selling Methods

It is the process of carrying out sales without using intermediaries or third parties in sales transactions. The products being sold are also products that cannot be found in regular stores or retail, which means that the only way to get these products is to find a product distributor.

The implementation must also look at the conditions and situations, because of the importance of calculating costs carefully if you want to make direct sales. This method also requires people with a proficient attitude in their field, so that communication and attitude are also included in the consideration.

Direct Selling Example

  • Sales Promotion

One type of sales strategy is to introduce products, especially new items to be released. It can also introduce old products to sell in hopes of increasing sales figures.

  • Personal Selling

A process where sellers and prospective buyers meet face to face to exchange information needed. The seller offers the product to be sold, while the consumer engages with the product they need, also referred to as an activity in maintaining the business.

  • Point of Purchase

It is a form of sales used by retail store entrepreneurs, the use of point of purchase is aimed at encouraging buyers to spend more. This concept refers to a pre-planned sales and crowd strategy.

  • Telemarketing

Being one of the sales strategies and considered effective for advertising in the media, it is done by marketing products and services using telephone media. The target is not specifically selling, it could be just to introduce products in the form of goods or services.

Direct Selling Benefits

Direct sales are used because it has many benefits in addition to the existing advantages, therefore every company, both in the retail sector and others, always uses this method to market their products. In addition to the benefits provided, direct sales also have many benefits for both entrepreneurs and consumers, including:

  • Low Operating Cost
  • Segmentation and targets are clear.
  • There is an increase in sales.
  • There is increased loyalty from consumers.
  • To analyze the results directly.

Thus a brief explanation of direct selling, ranging from understanding, the advantages and disadvantages to the benefits provided. Increasingly sophisticated business systems make business people have to absorb a lot of knowledge to compete with other businesses.

Sampoerna University provides a Business Faculty that implements an international curriculum. Students will be educated intensively, not only by studying theoretical knowledge in classes but also by hands-on practice, with direct selling as the main marketing strategy of a company.

Armed with the knowledge that is directly applied, Sampoerna University produces the best graduates in their fields. 94% of our graduates get full-time jobs 3 months after graduation.

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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Understanding The Fundamental of Break-even Points (BEP)

When studying economics, you must be familiar with the term break-even point or BEP, break-even point is one of the indicators used by investors in investing capital into a company. Even so, BEP is different from the return on investment, and because of that many people misinterpret it.

In the field of economics, accounting precisely mentions return on investment as ROI. It is the Capital that is issued when running a business and provides benefits that can be obtained within a certain period. For ordinary businessmen, it certainly becomes an obstacle in understanding financial news accompanied by BEP-related businesses.

Understanding BEP (Break Even Point) in General

Its role is to be a point of balance against the results generated from income as well as capital outflow, a condition that allows for minimal losses or gains. Overall profits and losses are generated at position O or called the break-even point. This means the company does not suffer a loss or vice versa.

So what is a break-even point? It is acting as an operational system in companies using fixed costs and sales volume which is only used to cover fixed and variable costs. When the company incurs a loss, it can occur only when sales are sufficient to cover variable costs up to some of the fixed costs.

This also applies to the opposite or in making a profit, so that sales exceed the variable costs and fixed costs that come out of the company. Calculation of shares using the BEP method can determine whether investors can buy or sell shares.

Also read: Understanding Capital Structure – Its Objectives, Theory, and Differences

Understanding BEP (Break Even Point) According to Experts

  • Garrison and Noreen

It means that BEP is the total sum of what will be achieved to cover all operational costs that have been incurred by the company. The achievement of BEP can be seen from the gathering of product selling values to benefit from net profit, the value that appears is proportional to the costs that have been spent on production.

  • Abdullah

According to Abdullah, the selling price decision after conducting a study mentioned several related things, including the determination of the minimum number in production so that the selling price is determined by the company not causing losses, when market demand is not high, determining the amount of profit and the percentage of sales decline.

  • Henry Simamora, Bambang Riyanto and Roni

The definition of break-even point according to these three experts refers to the amount of revenue from sales volume which has the same nominal value. Fixed with the number of costs incurred in the course of the production process, so the company did not find any profit or loss.

  • Mulyadi, Sigit and PS. Djarwanto

The Break-even point is a method used by ordinary or novice businessmen as well as professionals in achieving minimum sales volume. The goal is that the business does not suffer a loss to the profit that is at zero. For the average person, point 0 is the break-even point for a company that is neither losing nor making a profit.

  • Zulian Yamit and S. Munawir

It is stated that BEP is the total amount of income owned which is equal to the total cost of expenditure for production. This amount includes variable costs and fixed costs or fixed costs.

The Fundamental of Break-even Points (BEP)

break-even point

A company can understand and know their finances in a certain period or the next by looking at the BEP of sales. Therefore, it is necessary to understand the basic concepts in determining the BEP. The following are some of the fundamental of BEP that must be acknowledged:

  • The main ingredients in the calculation of BEP are fixed costs and variable costs.
  • If changes occur during production, it does not affect the value of fixed costs and remains constant.
  • The emergence of changes in the volume of production capacity certainly affects the value of the overall variable costs.
  • The selling value of the goods is fixed, as long as the analysis is carried out and will not cause changes in the selling price set by the company.
  • When viewed from the BEP calculation, the number of products produced will always be considered sold out.
  • Calculating BEP applies to one item or product, if the company produces many products, it is necessary to equalize the sales results of each product.

Elements in Break-even Points (BEP)

  • Fixed Cost

Fixed costs are the first element of BEP, as basic costs are always incurred by the company even though the company does not produce goods.

  • Variable Cost

This is the opposite of fixed costs because it follows the amount of production the company spends. Variable costs can be seen as the costs used to hire labor or equipment and others.

  • Mixed Cost

Is a combined cost of fixed and variable costs that are mandatory to be paid even though there is no production. However, when road production and the number continue to increase, it will continue to follow production output, for example, the cost of electricity bills.

  • Cost of Goods Sold

The emergence of this element is the result of the sum of all costs because this element is a pure price with the same nominal BEP. This can be understood as the profit value contained in the cost of goods sold being equal to zero.

  • Profit Margin

This fifth element means the part that must be added to the product price after the BEP can be calculated. So that it can determine the nominal profit margin, and conditions that make the selling price of the product as desired.

Benefits of Break-even Point

  • Knowing the Total Production Cost

To find out the entire total cost of production is the first benefit of BEP, the costs incurred during the production process. BEP calculation will also automatically calculate all outgoing costs.

  • Profit Calculation Basis

The selling price of the product generated from the profit must be calculated by calculating the BEP plus the profit margin. Profit margin is a measure of the profit on each product that you want to sell.

  • Estimated Return on Capital

In knowing when a loss occurs, the company, in this case, especially the businessman, must first know the number of products that must be sold in a certain period. If the BEP is not calculated then the estimated amount sold will not be calculated.

  • Profitability Analysis

It is the last benefit of BEP, to do a business analysis related to the question of whether the business being run can generate profits. And the BEP calculation is the basis for determining this profitability.

How to Calculate Break-even Points (BEP)

  • BEP Per Unit

The formula for BEP per unit is BEP per unit = Fixed Cost / (selling price per unit- variable cost per unit), being the benchmark of fixed costs. The BEP method is used to determine the contribution of the product per unit to the profits achieved from sales.

  • BEP Per Sale

This method of calculation is based on the fixed cost divided by the difference between the selling price and the comparison. Variable cost with the total price, the formula of BEP per sale is BEP per sale = fixed cost / [1 –(total variable / total price)].

  • BEP Per Cost

The use of the BEP calculating method per cost is based on the cost of goods, then deducted by profit margin or selling price. The use of this method is most often done, this is because the use of the formula is considered easier. Namely BEP per cost = (Total Fixed Cost + Total Variable Cost) / total unit.

Factors That Increase Company Break-even Point (BEP)

  • Customer Sales Increase

This condition makes demand higher, so companies do more production to meet additional consumer demand. Then the company decided to increase the BEP to cover the additional costs.

  • Production Cost Increase

Demand usually remains the same but variable increases, leading to the production of raw materials. If this condition occurs, the BEP will increase due to additional costs and besides that, it will also have an impact on other cost increases.

  • Production Equipment Cost

Equipment is the key to where production runs, if it is damaged then the production process is also affected to cause negative impacts. Therefore the equipment also needs inspection and will cost money.


What is meant by the break-even point is the balance point between the total income and the capital issued. Companies that experience this condition are at a neutral point, not losing but also not making a profit. Many benefits can be taken from understanding BEP, if a business experiences a break-even point then the business is still safe.

Thus a brief explanation of the break-even point. This is very important considering the many benefits provided, especially for students who are studying economics at Sampoerna University’s Faculty of Business.

Sampoerna University implements an international curriculum, making students not only filled with business knowledge but also allowed them to practice it directly and under the guidance of qualified internationally licensed lecturers.

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Understanding Capital Structure – Its Objectives & Theory

Capital structure is very important as it has a major influence on the direct financial position of a company. Its function is regarding the use of capital in running a business and how the development of the business runs. Many factors affect the structure of this capital.

Capital structure plays an integral role in optimizing the performance and quality of a company. The mindset in developing companies and businesses also has a big influence on this structure owned. Therefore, many successful entrepreneurs sometimes have a difficult time running their companies, because it also requires determination and hard work.

Understanding Capital Structure

The capital structure is a set of principal money that is run for the business and financial-related arrangements in running the business from different sources over a long period. This structure relates to a combination of shares, equity, preference share capital, and debt securities to long-term loans.

In addition, there are retained earnings and long-term sources of funds, all of which are collected by the company. This situation requires the company to carry out strict supervision so that the future of its financial condition is maintained for a long time. In addition, there are several definitions of capital structure by several experts.

  • According to Gerstenberg

An expert named Gerstenberg mentions this structure as a process of increasing the capitalization of a company. This includes various resources that can be controlled, including in this case loans, reserves, stocks to bonds.

  • According to John J. Hampton

John J. Hampton defines this structure as a mixed process of effects, arising from the debt. In addition, the condition also occurs because of equity against the financing of a company’s assets.

  • According to I. M. Pandey

A leading expert who argues that the this structure is a combination of various sources of funds in the long term consisting of several elements. Such as debt, preference shares to equity in reserve, or surplus status.

Purpose of Capital Structure

The purpose of the this structure is to mix or collaborate from sources of funds, namely permanent funds and activities from the company’s operational activities, this situation is carried out so that the company can achieve optimal value because this structure can maintain the quality and reliability of the company in economic activities.

Capital Structure Theory

The capital structure requires detailed and systematic knowledge, this arises because of the theory of capital structure. This theory becomes the basis used to run a certain capital structure, but in the process, it becomes more controlled and even balance according to emerging scientific knowledge and has this structure formula.

Examples of The Theory Underlying Capital Structure

  • Traditional Approach Theory

The focus of this theory is on optimal management and mapping because this structure has a very strong influence on firm value. This condition makes the capital structure can be changed and adjusted to get optimal results in a company.

  • Modigliani and Miller’s Approach Theory

This theory proposes three important propositions, first, the capital structure is irrelevant to the value of the company which makes identical company values will remain the same and survive. No effect on finances. Meanwhile, tax information is very important for an increase when knowing the insured tax.

The third is the cost of bankruptcy in the capital structure, assets can be sold at the appropriate price in the market. Earnings before interest or EBIT is not influenced by company debt, therefore the presence of investors is very influential on the importance of price takers.

  • Trade-Off Theory

The view that sees the determination of the capital structure must be optimal, the required factors are agency costs, taxes, and financial difficulties. The result is when the company persists, this theory emphasizes paying attention to market efficiency.

  • Pecking Order Theory

This theory has a point of view where the level of profit obtained by a company is large. This condition makes the company have less debt, this gives rise to several preferences in a coherent manner in this theory. Some of them such as companies opting to choose internal income earnings, and investigative estimates to calculate payout ratios.

  • Information Asymmetry and Signaling Theory

Being the only theory that states that parties and company members do not have the same information on the emergence of risk. This condition conveys two views, from Myers and Majluf who mention differences in information acquisition and signaling in view explain the development of capital.

Factors Affecting Capital Structure

capital structure

  • Asset Structure (Tangibility)

Is a way to fulfill the allocation of funds in each component of assets, both fixed and current. Weston and Brigham, the structure of assets as a balance or comparison appear between fixed assets and total assets. The fulfillment of capital depends on the condition of the assets of a company.

  • Growth Opportunity

It is an opportunity for the company to grow in the future, but some experts call it with different opinions. Growth opportunity is a turning point for changes in the assets of the company because it will tend to make profitable investments on its own.

  • Company Size (Firm Size)

The size of the company greatly influences the company’s capital structure and the activities that arise and then make the development of the capital structure visible from the progress or size of a company. This condition can make the company grow and develop, along with higher achievements.

  • Profitability

Profits or high profits usually have high internal capital, in addition to the allocation of reserve funds. The company in this case has a status far from debt from outside parties, this is what makes the influence of capital structure on this ongoing company.

  • Business Risk

This makes many companies have to be careful, especially about determining capital, and because of the risks that arise, there are obstacles. Finally, it creates a negative influence on the internal funding system, a condition that makes it difficult to determine the type of capital.

Also read: Understanding the Economic Recession – Its Causes and Impacts

Capital Structure Function

  • Return Maximization

The setting of the capital structure greatly affects the increase in share profit, this is a good thing and allows shareholders to get optimal returns. Shareholders can even recover loans and make them avoid debt conditions.

  • Flexibility

Capital can provide a more dynamic movement of debt expansion, although it can be adjusted to the desired strategy and business conditions. This condition allows the company to get a significant movement of progress.

  • Solvency

The company’s liquidity is maintained with a good capital structure, this happens if the company can avoid the burden of interest payments in the event of unplanned debt. Therefore, making the company’s cash disappear.

  • Increase Company Value

Investors are looking for companies that have a good capital structure, investors prefer to invest in companies that have well-maintained capital regulations. When the company can create them, stocks and securities can continue to increase.

  • Reducing Financial Risk

The proportion of finance and equity must be kept in balance, one of which is having a good capital structure. The company then avoids the financial crisis and makes the company stays away from bankruptcy.

  • Minimizing the Cost of Capital

Designed to meet debt capital in the long term is a sweet strategy, often carried out by companies to prepare them for the future. This condition allows the company to minimize the usual borrowing costs required.

  • Tax Planning Tool

The funds taken by the company as debt funds are used as capital, this tends to lead to long-term difficulties when they do not have a good capital structure. Conditions caused by the value of taxes are increasing so that loans continue to appear because of the importance of regulating the capital structure.

  • Optimal Fund Utilization

A good capital structure makes the company more flexible in preparing plans, in a systematic and strategic series. Conditions that make the company, consequently produce optimal output from the resulting profit.

Difference between Capital Structure, Financial Structure and Asset Structure

These three terms are usually interpreted to mean the same thing, although, in reality, they are very different. The capital structure is a balance between debt and equity capital that must be owned by the company. Financial structure is the company’s way of costing assets such as debt, shares, and investment returns.

The financial structure focuses on the net worth of the owner of a company, in addition to the obligations that must be borne. While what is meant by asset structure is said to be a balance or comparison of the entire wealth between fixed and current assets of a company.

This is a brief explanation of the capital structure, ranging from understanding, theory, and influencing factors to the functions provided by the capital structure. An understanding of one of the important components of the business world is explained in more detail in the Sampoerna University journal as an additional reference for students.

Sampoerna University Faculty of Business applies an international curriculum, providing complete world-class facilities for students. Apart from having complete facilities, Sampoerna University also has quality teaching staff. Sampoerna University students are prepared to compete for not only at the national level but also internationally.

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Understanding the Economic Recession – Its Causes and Impacts

When a country’s economic growth declines with signs of a lot of weakness in gross domestic product sales (GDP) for two consecutive quarters, this condition is called a recession. Recession is a condition in which the unemployment rate, the decline in retail product sales, and the contradictions of manufacturing income alternately arise.

A recession is also referred to as a slowdown in the magnitude of economic activity with a sign of a significant decline in activities included in the economy within a few months. Usually, what happens in a country, the conditions included in this recession appear for three months and can be more than this in general.

What is an Economic Recession? Understanding Economic Recession

What is a recession? A recession is a decline in economic activity that occurs significantly over a long time and is stagnant. This condition usually starts from months to years, considering that recessions are closely related to massive shocks in economic activity, this is also following the opinion of experts.

They assert that an economic recession is a condition that arises when a country experiences an increase in the rate of unemployment, a decline in retail products to a harmful gross domestic product, and shocks in income and manufacturing over a long period, despite economic growth but the value is negative for two consecutive quarters.

Causes of the Economic Recession



A condition in which the price value of a product continuously increases, even though inflation is not a bad thing. However, if this condition goes on excessively, it will be included in the dangerous category and can have an impact on the meaning of a recession.

Excessive Deflation

Deflation can have an even worse effect, a condition that causes prices to decline over time, thereby reducing wages for workers and thus putting pressure on prices. Even so, the impact of deflation is mostly affected entrepreneurs, if they stop spending money, the effect will be economic damage.

Asset Bubble

The emergence of panicked investors in large numbers, this condition is marked by the crowds of them selling shares to then trigger a recession. This can be called irrational excitement, the existence of a bubble in the stock and real estate markets. Until finally the bubble burst and panic appeared to destroy the market.

Sudden Economic Shock

This condition triggers serious economic problems to create a recession, ranging from debt piling up on individuals and companies. Debt that automatically makes repayment funds soar, this repayment fee will gradually increase and even make individuals or companies fail to make payments.

Science and Technology (IPTEK)

Developing technology not only brings great benefits, but also a negative impact in the form of a recession. As was the case in the 19th century, a wave of technological improvements led many companies to save on labor. The industrial revolution then made all professions seem to become ancient thus triggering a recession.

Indicators of a Country In Recession

In 2008-2009, the economic crisis hit Europe and made as many as 17 countries in the continent experience a period of recession. Including France, Spain, Ireland, Portugal, Greece to Italy, after that it was the turn of one of the ASEAN countries, Thailand, which experienced a recession after a decline in economic activity for two consecutive quarters and a gross domestic product increasingly free fall.

Imbalance of Production and Consumption

Consumption and production are two things that are closely related in the world of economic growth, but when they are imbalanced it will cause problems in the economic cycle. The high production is not accompanied by consumption, thus creating a buildup in the stock of goods that have been produced.

Economic Growth Slumps For Two Consecutive Quarters

Economic growth is an indication used to see if a country is in recession or not. If economic growth increases, then the country’s economic condition is strong, and vice versa. If it experiences a decline, the economic condition of a country is certainly in trouble.

Import Value is Greater Than Export

Countries that are unable to produce one of their basic needs are forced to import goods from other countries. Meanwhile, countries with excess products will export to countries in need. However, if the value of imports is greater than exports, the country will certainly experience a recession.

High Inflation or Deflation

The soaring commodity prices that are no longer affordable for all people, especially those with lower middle-class economic conditions certainly make the economic condition of a country worse. Because it is not followed by purchasing power by the people, instead of spending it to make ends meet, they can’t afford it.

High Unemployment Rate

If there are many people without jobs in an area, a country, or the world, certain things are not going well. Stable economic activity certainly requires a lot of manpower to be absorbed, but if the region or country is unable to provide employment, a recession may be occurring.

Also read: Understanding Macroeconomics, Its Purpose, and Influence

Impact of the Economic Recession

Impact of the Recession on the Government

The increasing number of unemployed is the most visible impact, a condition that makes the government demand to immediately find solutions to end the recession. One of them is the opening of job opportunities to absorb labor, but on the other hand government loans will also increase due to the development of businesses.

Impact of the Recession on Companies

The most dangerous impact of a recession on companies is bankruptcy. It is triggered by various factors. This condition causes the country to experience a decline in income, after which it triggers a domino effect on the economic life and activities of its workers. Layoffs are the most common thing in these conditions.

Impact of Recession on Workers

Termination of employment (PHK) becomes a frightening specter for workers if a recession is experienced by the country. This condition triggers unemployment, and if layoffs are carried out on a large scale, it could be the main factor that triggers a country to experience a recession. It’s even worse that unemployment threatens the social order and life of the nation.

Recession Prevention

Massive Government Spending

Massive spending must be done by the government, this is the first step in anticipating a recession. Later during the recession domestic demand will increase and massive government spending will make business activities run, this will make economic shocks due to the domino effect can be very well prevented.

MSME Assistance

This sector has been the most affected, as was the case when the Covid-19 pandemic hit the world. Various programs to assist and keep MSMEs alive must be carried out by the government, solely so that economic activities in this sector do not stop or even die due to eroded conditions.

Placement of Funds in Banking and Guarantee of Working Capital Loans for Corporations

The distribution of funds in the banking sector is then redistributed with a larger scale of funds to the public. One of them can be in the form of loans, through labor-intensive corporations in the context of national economic recovery. This facility is intended for corporate businesses in the labor-intensive export sector with a minimum number of 300 employees.

Thus a brief article on the economic recession that can occur in any country, you can learn more about economic recession from understanding, the causes of a recession, to the impact it has on the preventive steps that must be taken to avoid a recession through the Sampoerna University journal.

Sampoerna University’s Faculty of Business applies an international standard curriculum. We create graduates that are highly sought-after by industry employers. 94% of our graduates get full-time jobs 3 months after graduation. Together with our students, we build individuals with extraordinary skills to compete not only in Indonesia but also in the world.

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Understanding Consignment – Its Sales Tips and Examples

Consignment is one of the most common system used in business, especially businesses that sell physical products. This system is very beneficial for businesses as it is run by selling products from the manufacturer and then reselling it. This is certainly a very advantageous system to implement especially for novice businesses with minimal capital.

Definition of Consignment

In the business field, consignment is a collaboration between two parties. The party who delivers the goods on the consignment is called the supplier of the goods and then there is the seller. Consignment allows the supplier to provide the seller with the availability of goods, but will not receive income if the product has not been sold. In this case, the sale of goods is carried out by the seller.

Consignment in the business field is referred to as depositing products to sales agents by making payments. The buyer or supplier of goods simply sells the goods by entrusting them to the seller then the profits are divided based on the final sale.

Tips on Consignment Sales for Mutual Benefit

  • Must Have a Mutually Beneficial Consignment Agreement

The first thing that must be done is to make a mutually beneficial agreement so that no one feels disadvantaged when the supplier of the goods carry out their respective roles to the fullest. Agreements made are usually open and clear, because they are made to avoid fraud.

  • Choose the product that fits the store

The supplier needs to pay attention when choosing a retailer so that the deposited product sells well. The more products sold, the better, because it will result in high profits. In addition, it is not only the supplier of goods who profit, the retailer will also get the same thing.

  • Must Know the Products Well

In cooperating with the consignment system, both the sender and the recipient must understand the product well. When you know the product, you’ll also understand the responsibility of how to store it in a good quality condition.

  • Products for sale must be placed in a visible place

The shipper must ensure that the product deposited with the retailer is placed in a visible place. This condition affects the possibility of selling them. The product sender must have a role in determining where the goods will be placed.

  • Must consider long-term Cooperation

Profitable cooperation can be done in the long term. Even though the deposited product is sold out, the sender can always update the stock of new goods.

Also read: Understanding Revenue Stream – Its Types and Functions

The Benefit of Consignment


For Product Owner (Consignor)

  • No Need to Rent a Shop

The product owner does not need to have a store to be able to market their product. They have entrusted the product to a retailer who most likely already has a store. Besides that, there is no rental fee, this is certainly profitable because there are no costs incurred for it so that the profits taken are also can be higher.

  • Introducing the Brand

For novice businesses, this method makes it very easy to introduce the products being sold so that they are easily recognized by many people. Especially if the trademark can be introduced directly to new customers, so the benefits that arise are also useful in the progress of the company when the product is already known to many people.

  • Greater Sales Opportunity

Business is how to make a profit because it is an important factor for the survival of a company. This profit is only obtained if the goods or products are selling well, therefore the way to do this is by consignment. By only leaving the product in more than one store.

  • No Need to Pay for Storage

Suppliers and consignees when making consignment sales do not need to pay for storage. There is no charge for that, besides there is no storage space because unsold products can be immediately disposed of with a note that the product has entered an expiration date.

  • Easy to Which Products Work and Do Not Work

Consignment sales make it easy for the supplier or owner of the goods to know which goods are selling well in the market and which are not. That way, product owners can dissect and sort out which products will be sent to retailers which then sell well and provide a lot of profit.

  • Can Have Longer Relationships with Retailers

The existence of beneficial cooperation makes what has been done rise to the next level. Namely a relationship that can last longer for the shipper and retailer because of the benefits that are highly desired by both parties. A business that is run only for profit.

  • Increase Profit

The advantage felt by the product owner is that the goods produced can be sold in the market through a business that is run with a consignment system. The profits that continue make the owner of the product experience an increase which has an impact on the progress of the company.

For Product Consignee (Consignee)

  • No Need To Pay For Items

In the consignment agreement, one of the benefits the consignee get is they do not need to pay for the goods because the supplier only entrusts their goods to be sold. Even without spending capital, the availability of goods in stores will increase and it makes buyers interested in purchasing them.

  • Unsold Items Can Be Returned

The recipient of the goods will also feel the benefits even if the goods are not sold, which is only by returning them. The recipient or retailer does not have to incur costs to compensate for unsold or unsold products or goods.

  • Avoid running out of stock

Like a food stall that has many buyers, the condition of the stock of goods must also be considered not to run out. With a consignment system, the recipient of the goods does not need to worry about this because the stock of goods will always be there.

  • Entrusted Items Can Interest New Customer

The goods sent are always available, because consignment sales provide benefits to the recipient if they have new customers. In general, the emergence of new customers is because they are interested in the goods being sold, such as because the goods issued are products that are trending.

The Drawback of Consignment

For Product Shipper (Consignor)

  • Will Not Receive Payment in Advance

What is not the characteristic of the consignment system is that it poses a risk for suppliers who have deposited their products with retailers, i.e. they will not receive payment in advance. Because of this, it becomes a drawback of the consignment business system that occurs between the supplier of the goods and the seller.

  • Can Experience Quite a Loss

Losses are indeed a risk factor that must be borne by business people, consignment does not only provide a lot of benefits. But there is also the risk of big losses that could occur if something goes wrong. One example is when suppliers choose the wrong retailers, making the goods that are deposited difficult to sell.

  • Must Take Unsold Items

This condition is also a risk for suppliers who apply a consignment system, goods that are not sold and have entered the expiration period will be taken back. Conditions that can cause harm to the supplier.

  • Not All Items Are Suitable for Consignment Sales

Consignment sales can only apply to certain types of goods or products, not all of them can use this system. The product owner’s foresight is tested because they must determine which products can be sold by implementing this consignment system.

For Product Consignee (Consignee)

  • Must Give Space

Inevitably, if the consignee agrees to cooperate with the product provider through this system, they must provide space so that the product can be seen clearly by consumers. It may be a little problematic for basic food stalls because they usually appear in a place that is not sufficient.

  • Can Generate Conflicts If Consigned Items Are of the Same Type

In addition to providing many benefits, the consignment system can have negative impacts such as causing conflict. This condition occurs when the same product is deposited with the same retailers, this can create conflict.

  • Shipper Does Not Want to Bear the Damage

The thing that the consignee hates the most in the consignment system is when the supplier does not want to bear the damage. This is stated in the agreement that requires the recipient of the product to replace the damaged goods even though they do not know why.

Examples of Consignment

  • Consignment Sales Between Large Manufacturers and Small-Scale Retail Stores

This condition can occur because large companies are targeting small and private-based retail stores. Usually, on the side of the road or inside the village, some products are sold such as snacks and products for the daily needs of the people around the shop.

  • Consignment Sales Between Big Stores and MSMEs

Usually found in large stores with MSMEs. This system is used when an individual with a small-scale product and wanted to market their product by submitting a proposal to the supermarkets to sell the product to the MSME.

This is a brief explanation of the consignment system in the business world, a detailed explanation can be found in the Sampoerna University journal starting from the definition, advantages, and disadvantages to examples. Sampoerna University’s Faculty of Business invites students to learn more about the business world.

In addition, Sampoerna University also implements an international standard curriculum that not only provides knowledge in theory but also allows students to practice it directly. In addition, Sampoerna University also has a quality teaching staff of international standards. This prepares our students to be work-ready and world-ready.

For further information regarding registration, curriculum, visits, and information about Sampoerna University, please fill in the data below.

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Understanding Revenue Stream – Its Types and Functions

A revenue stream is the funds used in business-related matters by a company, these funds are used to develop the company’s business. Revenue streams come from various sources which are then channelled to the business. This includes all the constituent components of business operations and sources that can generate cash for the company.

By the principle adopted, the flow of the company can be adjusted to the scale of the business because it includes the components of all the constituents of business operations and the sources that provide the company’s cash income.

The Definition of Revenue Stream

What is revenue stream? The use of this term is broadly related to funds and companies, which are ultimately used in the development of the company or the business being managed.

It is the flow of funds from companies with known sources. It can come from production, investment to asset sales and others. This term is an activity of a series of transactions, repeated in order to obtain sustainable funds. All activities such as sales, production and investment run in stages.

Business is running continuously, so this term refers to transaction activities that occur not only once. Business transactions are carried out with the aim of getting profits for companies. The flow of funds into the company, or the business itself is known as revenue itself.

The Types of Revenue Stream

revenue stream

  • Transaction Revenues

This type is seen in its business model. Transaction revenues are activities carried out in obtaining a flow of funds by using a transaction system on a single payment by the customer. This type of transaction allows companies and business people to get funds directly from consumers if they have sold services or assets and services.

  • Recurring Revenues

As opposed to transaction revenues, it is stated that these transactions involve ongoing transactions. In addition, there is no single payment from the customer, for example, the company provides credit services for certain goods and the customer will rent out existing services and assets.

Examples of Revenue Stream’s Application in Business

  • Capital Investment in Other Assets

The first example of a revenue stream is from the process of making investments in other assets. As a capital owner, the company can invest in various asset lines as desired. Investments in other sectors are carried out, of course, to make profits.

  • Doing Asset Leasing

An example of an application other than capital investment in other assets is leasing assets owned by a company. Such as building leasing, when the company owns several buildings, and others such as excess operations. So that the goods for rent have an impact on increasing additional funds.

  • Selling Owned Goods or Assets

When items aren’t reused, the assets of the company can not only be rented out but they can also be sold. However sales are made for various reasons and only because of certain conditions, such as the company going bankrupt, so the company sells its assets to get additional funds.

  • Selling Service Usage To Consumers

Companies can also sell services offered by the company. Some of them have bloomed in Indonesia, such as online motorcycle taxi service providers and food delivery. This is an example of a type of revenue stream that forms the capital of customer service.

  • Opening a Branch or Partner

Opening a branch or looking for a partner is an example of implementing a cash flow income, as already owned by a company in a country. So a company can set up a business that is owned in a different country, the aim is to increase the existing flow of funds and develop the business.

Also read: Understanding Macroeconomics, Its Purpose, and Influence

Functions of Revenue

  • Shows How Businesses Make Money

The first function of a revenue stream is to show how to do business, earn money and make a profit. BMC revenue stream is another word for this first function, revenue stream business model canvas. The company leaders in this case can read the list of revenue with the nominal generated.

  • Getting Investors

The importance of understanding the concept of how to get funds to flow. This is certainly the main goal of the company in running a business, is to get investors. A good management is important for a business if not it is hard for the business to progress. The progress of the business makes the stimulus so that investors can invest additional capital.

  • Doing Business Safely

The flow of funds that are understood properly and well can pave the way for a safe, even sustainable business. Also, company managements should not randomly decide policies or determining attitudes. In addition, some of the examples above were also used to withdraw funds.

  • Can Be a Business Strategy

The concept of this flow of funds can be understood simply, but based on its very strategic function for good business. This condition is evidenced by the basic goal, the flow of funds is to get a source of funds so that the business can be sustainable. This is to anticipate any turmoil or problems in the business.

  • Making Business People Focus on What They Are Doing

Continuous flow of funds is important so that the company or business can be more focused on what to do. The goals and strategic directions are aimed at gaining business benefits to the company together. The function of this flow of funds is very useful, besides that it is very helpful for the running of the company.

  • Get Clear Turnover and Profit

It is to determine the steps and attitudes that will be addressed to get a sustainable flow of funds. Businesses can get clear funds, such as having investments in various buildings so that these buildings can be rented out with a clear goal of getting investors.

If you have extra service capabilities so as to provide service-based businesses that help consumers, you will understand correctly the term revenue stream. Revenue stream does not lead to one point, but various areas in a business.

Revenue streams lead to a wide variety of scopes, this is evidenced by the many examples of implementation, one of which is the conditions that must be considered for business people because they must be able to pay attention to the flow of funds so that the company’s operations aren’t disrupted.

Funds that come in and out of the business make a good system and help the manual writing process to make it easier to get financial reports. It also minimizes the appearance of errors in recording. Revenue streams will help in so many ways if businesses understand them correctly.

This is a brief explanation of the revenue stream. It is starting from the understanding, advantages, and examples that exist in one of the essential things in running a company and business. You can learn more about Revenue Stream by enrolling in Sampoerna University’s Faculty of Business.

Sampoerna University applies an international standard curriculum that teaches students not only to gain knowledge in theory but also in hands-on practice supported by internationally qualified teaching staff.

If you have some questions about Sampoerna University, please don’t hesitate to contact us or fill the form below and our team will respond your questions.

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