May 20, 2009

Basic Fundamentals For Any Business Prosper

I read this article in Yahoo answers and found its interesting and thought to republish it here. Its written by a business consultant having 18 years of experience. Feels these principles are pretty good in my perception.

 business prosper graph

A) Effectively promoting the business. This includes outside sales and not just adds. There are millions of promotional actions, a healthy mailing list and a birthday card for everyone on your mailing list can make a world of difference.

B) Effective organization. You have to be able to organize smartly, work on production quotas and eliminate money and time wasters. Do not have duplicative functions and put all your policies in writing. Differentiate between policies and orders. A very important aspect of this is delineation of functions and successful delegation. You must know what each hat does and not try to wear the hat of your employees. Smart hiring and training for employees helps.

C) Have a good quality control, nothing kills a business more effectively than failure to deliver service/goods, or delivering bad service/goods.

D) Friendliness, your staff and you must care for and be friendly to the costumer, helpful and even if the costumer is wrong, a polite friendly response is always good.

E) A proper financial system, not spending more than you have on hand and creating a reserve fund, ( save 5% every month ands never use it unless it is a true emergency) and what ever goes on, pay yourself first. It is a fact that many small business owners earn less than their employees per hour, and this should not be that way. A good CPA is worth his weight in gold. But he must have the authority to say NO. or to issue funds when needed. when you don't buy equipment that could cut your cost, you are not saving money.
These are the basics. No matter what your line of business, you must work on these and if you do, your business will prosper

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