Smart Ways of Small Business Management and Success
Posted On May 3, 2020
Here are ten rules for starting, managing and managing a small business. This list is enough to make you aware of the reality, let’s see:
1. More realistic.
When creating a business model, look around and look for examples of success from the business model you want, then study. If you can’t find an example of a business model that you live in, that means maybe you are extraordinary genius, or it means that your business model will not succeed in the real world.
2. Don’t invest your own money
Because most businesses are risky trips, look for partners. So, if everything doesn’t work out all the plans, you won’t go bankrupt because of the start-up funds, and don’t get chased by debt. Creating a team will facilitate work and share the burden.
3. Willing to work harder
If you are not willing to work hard, overtime, forget about temporary pleasures, then the world of entrepreneurship is not your match. Initially, you will definitely not be able to pay employees, even if the employees are cheap. So, your employees are you.
4. Appreciate time
Give value for your time, for example Rp. 20 thousand per hour. This will help when you have to make a decision: If your vendor charges Rp. 10 thousand for shipping every week, and if you take it yourself for free, but you need 2 hours to go to the location of your vendor, then it’s better to just pay shipping costs from the company, because it’s cheaper. Decide to work efficiently, because in many cases, our time is more valuable than the price of paying people to do things that are time-consuming.
5. Recruit employees well
Regardless of the size of your business, in the end you have to recruit employees from outside. For this reason, carry out the recruitment process carefully, without haste, and treat it as important as when you start a business. It is unfortunate the attitude of business owners who have a vision for their business, but recruiting employees who actually prevented him from achieving that vision.
6. Sell the excess, not the price.
When you start a business, usually you will have difficulty opening the market. But, if you compete on price, you will eventually sell at a mediocre price or even under the capital. So, master the ability to communicate with customers, to explain that the price of your product is higher because it has better value.
7. Know the basic numbers (Calculate COGS carefully)
It is very important to know how much money is needed to run a business – from rental shops, electricity, employee insurance, to the prices of printer ink, paper and taxes. Then divide all of that by how many days in a year you will open, and that’s the basic figure — the minimum amount of income you need every day. If you have never thought about basic numbers, rethink your business.
8. Use the latest technology.
Newer technologies such as applications and data storage with cloud technology are very inexpensive and make small companies compete with large companies. Take advantage of low-cost technology on the market.
9. Treat vendors well.
Treat your vendors and suppliers as best you can, as you treat customers. They can give discounts based on the volume of your order, or even for the sake of maintaining good relations, and hope for an increase in volume in the future. A good relationship allows them to understand late payments, and even free shipping.
10. Be the best.
You can’t do half measures. Everything you do for customers must be the best. Whatever you make and sell, must be the best. Do it continuously, and the power of word of mouth will spread.