Dec 5, 2009

Tips for a Successful Business

Most people often go into business without a basic knowledge of the simple fundamentals that can minimize prospects of failure. Here are a few tips that can help aspiring entrepreneurs to handle their trades with little chances of failure.

Raising Capital

There are so many conventional ways of raising capital like bank loans and support from family members but You can work for somebody and save a fixed percentage of the your income for some time. In Nigeria, precisely among the Ibos, young aspiring entrepreneurs go into contracts with an established business entrepreneur in which they work for an agreed number of years without taking salaries. During the period the servant stays in the house of his boss as a dependant. At the end of the agreed years, the boss starts a new business for him or gives him an equivalent amount of financial capital to start his own business.

Location of the Business

If you live a culture of family inter-dependence you can establish your business far away from the financial distractions that family members can bring. The farther away you are from home the difficult it is for them to come with their problems.

Most people in rural areas must travel to the urban areas to buy the goods they need. You could sacrifice to stay in the rural such a rural area. The whole population becomes your clientele

Choice of Goods to Sell

The choice of the commodity to trade is very critical. Be sure the item you wish to trade is undersupplied. If you think well you may find a commodity that people need but which is not being supplied. You May think about items you saw somewhere you traveled to but which are at another location

Lifestyle

New businesses grow only if the entrepreneur makes a sacrifice to live a simple lifestyle. You can do a simple calculation to find your average daily profit. You then ensure that your personal daily expenses do not exceed your daily profit.

Consistency

It is advisable to stick to particular merchandise. You can specialize in building materials, electrical fittings, electronics etc. Eventually people will come to associate you with the goods you trade such that when it is mentioned you come to mind.

If your business develops problems and you have to start again you have to continue with the same type of product or products except where you are sure that the product was the problem in the first place.

Must entrepreneurs prefer imperishable goods except where they have reliable means of preservation?

Time Management

You must give all your time to the business and nothing else.



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