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The Three Essentials of Business Success
Everyone lives by selling something. Whether you are an employee, a self-employed person, a clergyperson or are involved in any another enterprise, you are selling something. When you wish to be the leader of your pack and to head out to start your own business, you have to be certain you have covered the bases of three elements.
The following three elements are required in any business venture.
Technical Knowledge
The creator of any project or business must have a sound knowledge in the field of Technology they plan to sell. Be it a carpenter who wants to build homes, a tech who wants to build and resell computers, a business person who wants to run a gas station, an inventor who wants to bring a product or any service business, the creator has to know their product and/or service inside out. Without this knowledge – the starting point of all small businesses – or the funds to buy that knowledge, it is unlikely that the business will be a success.
Finance and Administration
In order to be successful, a business needs controls to monitor its progress. When a business begins to generate revenue, you have to know how to manage its cash flow. You need to keep on top of its documents and make sure the bills are paid on time. Most importantly, you need timely financial statements in order that you may monitor its progress and make any corrections. Having all the sales in the world is worth nothing if the funds are not available to deliver the goods once the sale is closed.
Sales and Marketing
We have all heard the saying: “Nothing happens until someone sells something.” Capital without sales will not make a business a success. A business must have a detailed marketing plan and the sales technology to bring its product or service to the world.
These three elements combine into a working plan called a Business/Marketing Plan. This plan is not only to attract potential investors but also to convince ourselves that, on paper, we have covered all the steps to making our business a success. If we do not plan to succeed, by default, we plan to fail.
Big or small, startup or ongoing, having less than all three elements, your business will be off kilter and headed for failure. I have been called into many businesses and asked if I could look at what they were doing and make suggestions to improve sales and cut expenses. Many of these businesses were too far-gone and unable to satisfy either their banks or their creditors to keep the business alive. Failure to properly manage the funds and other resources of your business is never looked upon favorably and usually results in third parties making moves to cut their losses and run.
© Faaron Inc. - The Basics of Business Success.
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