How to find the right location for your business

We often heard or read the saying that goes “location, location, location”. This simply means that the success of your business could largely be due to your right location. There is no harm in believing this; we all want a successful business, so we might as well give a thorough and careful thought where we should locate our business. So, how do we go about finding the right location?

If you are into retail of cell phones, for example, where should you be located? What type and cost of cell phones do you sell? What is the target market? Should you look for high foot traffic location for C and D market? But if you are in manufacturing, location can be a different matter. Here you should consider various factors such as accessibility, power supply, roads, water, and source of raw materials, workers and salary rates. There are really no hard and fast rules where you should locate your business, but some of most important considerations are as follows:

• Demographics. Find out if the location can provide you a good customer base, plus the talents you need for your business.
• Foot traffic. This is for retail businesses, the higher the foot traffic, the higher the customer base, and mostly likely the higher the sales, and therefore profit.
• Accessibility. Is the place accessible? If you are targeting the high-income group as customers, is there ample parking space for them?
• Competition. Are there any shops or other businesses in the area that vie for the same market you will target? Will there be enough demand for products or services that you and your competitors will offer?
• Local ordinances. Are there any rules or city ordinances being enforced in the area that might affect your business? You also have to check the area’s zoning policy.
• Building or mall facilities. If you are targeting a location in a commercial building or a mall, make sure the facilities are sufficient for you and other businesses in the area. As well, double-check your assigned slot in a mall to find out if foot traffic is heavy.
• Growth plans. Will there be space to expand your business when the time comes?

Good luck finding the right location for your business.

Reference :entrepreneur.com.ph

8 Deadly Mistakes When Running a Business

Anyone who have been in business made mistakes. In fact, the longer you’re in business, the more mistakes you’ll make. It’s just that the ratio of good decisions to bad ones improves over time. To help you guide not to commit some of the obvious ones, we list here 8 deadly mistakes you would likely commit. Keep on reading.

1. Underestimating the importance of cash-flow management. You can be making plenty of money, but if the cash is not arriving in time to meet the payroll, finance your borrowings and buy inventory when it’s needed, you can be quickly out of business.

2. Sloppy record keeping. Good records are a key decision making tool. If you are not keeping track of your business, you are denying yourself the tools to make good business decisions.

3. Ignoring inventory. If you end up with stale inventory, discount it and get rid of it. Otherwise you are tying up money and storage space.

4. Neglecting collections. Unless you have a systematic collection plan and make sure it is carried out, people just won’t pay.

5. Disregarding employee concerns. Get expert advice on human resource issues. While it may look expensive, it can save you a bundle in the end.

6. Failing to delegate. Turn some of the job over to the best assistant you can hire and trust that person to do the job. If you insist on doing it all yourself, you can’t grow.

7. Offering something the customer doesn’t want. Talk to customers and respond to what they tell you. The house recipe might have been in the family for three generations, but tastes do change and you will have to adjust to that.

8. Letting costs get out of control. Be careful not to spend all the profit. Keep your personal funds separate from your business money. Reinvest a healthy percentage for business expansion or bank it in reserve for a rainy day.

Source: Business Line, photo courtesy of learn.south-thames.ac.uk

Reasons for failure or success of a business, and why a few will thrive

Every year, hundreds of thousands are starting a small business. Most will fail, some will muddle along, and a few of these small businesses will thrive. Which ones thrive, and why? The reason some businesses experience spectacular sales and profit growth from the start isn't because they had a lot of money at the beginning. Their fast growth can be attributed to the fact that they were put together the right way i.e. they got a great business plan.

In every instance, the founders either had or acquired the experience and knowledge they needed to startup and run the business. They recognized what their weak points were, subsequently nurtured alliances, and acquired the skills they needed to start their company off right. They also understood how the various parts of the business fit together to form a total structure and knew that if one part was missing, the total structure would break. For example, they knew that a successful sales plan is directly dependent upon support from the marketing and promotional plans, and that the strategic business plan acts as the glue that holds all the sub plans together so that they work in concert.

DEVELOPING IDEAS

Clever product and service ideas are a dime a dozen. Everybody has one, and most of them never get implemented. The successful entrepreneur starts with a basic idea. This idea is first tested to staying power. Can it be used to grow a customer base, and will it be profitable? The pseudo-entrepreneurial itch often ends before the basic idea gets tested. Studies show that a high percentage of people who open new businesses do so because they are frustrated with their current job. They'll jump into any business venture that comes along without first checking it out. Ninety percent of this group will go out of business in their first year.

Those that make it are smart enough to recognize the symptoms of their emotional state. They are acutely aware that they may be in a vulnerable position. As a result, they may hang on to the security of their current job and start a business on the side. They'll make the move to become a full-time entrepreneur when the time is right for them and after they have thoroughly checked out their business venture ideas. There are three basic concepts to keep in mind as you develop and refine your business start-up ideas.

Be Creative

The opposite of creativity is rigidity. Entrepreneurs are not rigid in their thinking. If you cling to the old ways of doing things because "that's the way we have always done it," you'll never come up with the new solutions that are demanded by today's small new businesses. To test your creative ability, practice finding ways to tie together seemingly unrelated ideas.

Understand Every Problem

You must have a clear understanding of what it is you are trying to achieve and be able to identify the obstacles that stand in your way. Break each problem down so that you understand it and know what you need to do to eliminate it. For example, the problem may be that you need more space. Why do you need more space, and what are the alternatives? An alternative may pose a new set of problems, but if they reduce the magnitude of the original problem, the alternative may be a more viable option.

Brainstorming

When you come up with a solution to a problem, brainstorm the solution with as many qualified people as you can find to avoid judging your own answer this is what a good business management and business development should be. Accept modifications that make sense, and be prepared to replace the solution with a totally new and better alternative. The key to the brainstorming process is to be objective. Brainstorming is an excellent way to come up with a new set of ideas for new products, services, or improvements that could accelerate the growth of your business.