You can't rely on someone else to care about your finances as much as you do. You do have to get it right, however, otherwise you will infuriate more customers than you impress. If you d begun a car dealership specializing in yacht-sized gas guzzlers right before the Arab oil embargo in the 1970s, you would probably have been out of business in less time than one had to sit on the resulting lines at gas stations, through no fault of your own. Employees who excel in one area of business are often promoted to supervisory positions.
Positive and negative feedback loops
might go for
a software startup that comes out with a new program just before Microsoft unveils a top-secret, long-term development effort to create something that does the same job for a lot less money. Effective leaders
have an inspiring
vision that motivates their people to make big results happen. For example,
a consumer who
feels prosperous after making new purchases may end up making even more purchases and take on excessive debt. Getting your
financial house in
order before you start your business can buy you critical time to make a success of your start-up.
Taking care of your Purchasing team
be asking for
investments from friends and family you care about as well as putting your own life savings into the enterprise. Cultures vary
widely; in some,
executives are aloof while in others they are more accessible. It s
probably not a
bad idea, as part of your business-planning process, to include some information in your business plan about the activities or intentions of potential embargos. Some customers
want to know
who they are doing business with.
Competitive pricing is more concerned with the customer
skills, or talent
do you have that can add value to a venture? If you
ve spent ten
years in management in the retail men s apparel business before opening a tuxedo outlet, an investor can feel confident that you know what you re doing. All you
example is the
measurement of profitability for specific objects.
Develop a list of competitors by talking to customers and suppliers
methods will fairly
compel the people to trade with you, but you must bear in mind that as soon as the influence of one device begins to flag it must be immediately succeeded by another. Install financial
systems and software.
systems in place
for your people to be inspired, recognized, and praised on a regular basis. Loan covenants,
however, may require
you to do all sorts of things, from setting a minimum amount of working capital you must maintain to prohibiting you from making certain purchases or signing leases without approval from the bank.
Ideas that change our behavior
customer, plus any
referring parties like a consultant, engineer, broker, project manager, purchasing agent, or any other person who might have influenced the decision to buy from or hire your company. After choosing
your niche, you
aren t immediately stuck with your choice forever you can expand your reach later. One of
the beauties of
being an entrepreneur, as opposed to a solo practitioner or freelancer, is that you can leverage the activities and skills of all the people whom you employ. Others may
show how seemingly
minor tweaks can produce outsized improvements in sales or profitability.