Small Business- Here are ten laws for starting, organizing, and managing a small business. This list is enough to make you aware of the reality that exists, let’s see:
When creating a business version, try to look around and look for successful examples of the business version you want, then study. If you can’t find an example of the business model you’re working with, that means maybe you’re an extraordinary genius, or it means your business model won’t work in the real world.
Don’t invest your own money
Since most business is a risky journey, find a partner. So, if everything does not go according to plan, you will not go out of business because of the start-up funds, and will not be chased by debt. Creating a team will make work easier and spread the load.
Willing to work harder
If you are not willing to work hard, work overtime, or neglect temporary pleasures, then the world of entrepreneurship is not for you. In the beginning, you definitely won’t be able to pay employees, even cheap ones. So, your employee is you.
Give the value of money on your time, for example, Rp. 20 thousand per hour. Decide to do efficient work, because in many cases our time is more valuable than the price of spending people’s money on doing things that take a lot of time.
Recruit employees well
Regardless of the size of your business, you will eventually have to hire employees from outside. For that, carry out the recruitment process carefully, without rushing, and treat it as important as when you started a business. It is unfortunate the behavior of business owners who have a vision for their business but recruit employees who actually prevent them from achieving that vision.
Sell the advantages, not the price.
When you start the struggle, usually you will have difficulty opening the market. However, if you compete on price, you will eventually sell at a mediocre price or even under capital. So, master the skills of communicating with customers, to explain that the price of your product is higher the reason is it has a better value.
Know the basic numbers (Calculate COGS carefully)
It’s important to know how much money you need to run a business. Divide that by the number of days of the year you’ll be open, and that’s the base number. That’s the minimum amount of income you need each day to run your business.
Use modern technology.
New technologies such as applications and data storage with cloud technology are very cheap and allow small companies to compete with large companies. Take advantage of the low-cost technology on the market.
Treat vendors well.
Treat your vendors and suppliers the best you can, the same way you treat your customers. They may offer discounts based on the size of your order volume, or even maintain a good relationship, and expect an increase in volume in the future. A good relationship makes them able to understand late payments, and even provide free delivery.
Be the best.
You can’t be half-hearted. Everything you do for consumers must be the best. Whatever you make and sell, it has to be the best. Do it continuously, and the power of word of mouth will spread.