01/27/09
Posted under business strategies
I got it from INQ
1. Practice separate entities
Keep business cash and products that you sell separate from your personal money and family use. No family member or employee should ever take money or goods without paying for them. One good way to make this work is to regularly pay yourself a livable salary.
“Attitude determines altitude.”
2. Start small, think big
Some want to get really big, really fast. Too rapid growth, without experience or money in reserve, can kill a great business faster than almost all other mistakes. Learn from costly mistakes when the business is small, then grow at a sustainable pace.
“Anything the mind of man can conceive, it can achieve.”
3. Differentiate your business
Selling the same product as your neighbor is bad for business as it drives prices down which then hurts everyone. Make your business different by carrying unique products, displaying your products differently and not locating near your competitors.
“The harder I work, the luckier I get.”
4. Buy low, sell high
To make money in business you must sell something for more than you paid for it. The difference between the price you pay and the price you charge for a product is the gross profit or margin. The bigger the difference, the more money you will make. Negotiate with suppliers for lower prices.
“Winners speak in specifics, losers speak in generalities.”
5. Buy on credit, sell for cash
Many owners have this backwards; they buy in cash and sell on credit. If you can get your supplies on credit and collect cash from your customers at the time of sale, you can carry a lot more inventory and possibly turn it faster. You must, however, pay suppliers on time.
“Compete with someone, even if it’s yourself.”
6. Turn your inventory often
If you buy a product for P100 and sell it for P300 you earn P200. If you do this 10 times a week, you earn P2,000 that week. If you do this 10 times a day, you earn P2,000 that day. Small inventory turned everyday is best.
“If you can’t measure it, you can’t manage it.”
to be continue
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