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Chapter Two "Business Fundamentals"

This chapter deals with the basic functions of your business. With the fast pace of today's business world, the basic functions may be overlooked. Reading this chapter will keep you in check with some of the business fundamentals.

Appearance

When someone walks into your business establishment, it is judged in the first few minutes from the appearance. If the result is good, that's great.

If not, it is very difficult to gain trust from your potential customer. Your appearance is your image. Keep it above standards.

  • The appearance of your establishment should look clean and neat. Would you like to do business with an establishment that possesses some of the following characteristics?
  • Products hung from the ceiling or disorganized on the shelves and floor.
  • Dim or burned out lighting.
  • Bent or rusty shelves.
  • Dust all over the place.
  • Dirty windows.
  • Dull old paint.
  • Carpeting, floors or ceilings that are ready for the dump.
  • Unpleasant odors.
  • And the list goes on!

You, your employees, and anyone related to your business should also be neat and dressed in the proper apparel for the business. How would you feel, walking into a dealership, and having an unshaved salesman, wearing shorts, a T-shirt and sandals, assist you in purchasing your new $42,000.00 car?

How would you feel, if a man dressed in a suit came to change the oil in your car? Every business has an expected appearance for its employees and operators. A highly unusual look makes the customer uncomfortable and wonder. Your goal is to keep the customer comfortable and happy, when they come to do business with you. Keep your business appearance in "tiptop" order. Remember your appearance reflects your business practices.

Your Location

Your business location today is not as important as it was many years ago. Today, we have a vast network of global communications, as well as efficient shipping methods. If your business depends on walk-in clients, then your location should be an appropriate one.

Owning a clothing store, located in a high traffic shopping mall, will certainly increase sales, as opposed to a location out in the country. Another aspect of location is whether your business is appropriate for the area. For example, if you have a sports clothing store, you wouldn't locate in the "Tool and Die" area of your city, would you? Your business location should be in a high traffic area, as well as appropriate for the location.

Obtain A Report Card

Running a business may keep you oblivious to your environment. The day to day routine makes the oversights seem to be right. If you have been in business for many years, you can't see these faults in your business. For example, you have a restaurant.

Have a friend or hire an outsider, whom your employees don't know, come in and rate the restaurant. He should come in as a regular customer, noting the service, the quality of the food, the cleanliness and general atmosphere. He could even try to be a little difficult with the staff to see how they react to problems.

It must be someone the staff doesn't know, because he must do this process in such a way, so he will not receive special treatment. Find a way to get a report card for your business.

Make Operations Easy For All

 Try and make operations easy for your customers, suppliers, and employees. Keeping the interests of others in mind is always good practice. Little things you implement in your business make a big difference for those people in contact with it.

Example 1:

You have a shipping and receiving area, where one person is in charge. During breaks, someone should be there to handle the shipping and receiving of small parcels. The people delivering to you also have a schedule and must be on time.

Why should they have to wait for your staff to finish a break? Waiting makes the delivery people upset, because they will be late for their next drop off. They may also talk about how your business is unorganized, and they probably wouldn't recommend you to their friends.

Example 2:

A customer asks for an item, and you just ran out. You could say, "Check back in a couple of days." This does not do much for the customer. They will probably go to your competitor.

Make it easy for them. Say, "I am sorry, but I just sold the last one. If I could have your name and number, I will have one for you in two days, and I will call you when the shipment comes in, or I can have one delivered, as soon as they come in."

As well as making an extra sale, you also show the customer you care for them, and you will do your best to make sure he is satisfied. You will likely convert this person to a "Life Long Customer."

Example 3:

You notice the lighting in one of your employee's office is dim. Have someone take care of the lighting, before the employee requests it. Or, their work space is tight and unorganized. You could give him an hour, so he could organize his work space to be become more comfortable.

This will not only make the employee more productive, but he will know you care as a boss. Consider the above example. If those things were requested and you said, "No," do you think the employees would be very productive?

Making things easier on others goes a long way. You don't have to hire a consultant to turn your business upside down, so you can make everything easy on others. Just by taking notice of your environment, you will make a big difference!

Organization

Organize everything in your business from the beginning and whenever starting a new project or department. It's easier to get organized, when you start, as opposed to being already established. Use categories to keep everything in place physically: electronic or conventional paperwork.

Example:

You are running a clothing store. You would keep all the women's sports clothing in one section. On one rack, you could keep the same series, starting from the smallest to the largest size, then the brightest to the darkest colors. You could have a code for each article of clothing, coding it in the same sequence, as it is displayed. A system like this will allow you to quickly find the color or size, when a customer comes in.

This quick access to the product will show you are organized and professional. You could have the article for the customer in seconds.

Another advantage is that if you are not yet computerized, you could easily recognize the articles that need to be replaced, before you place an order. To determine if your business is organized, you should be able to find what you need without looking for it. This refers to physical items, as well as electronic and conventional paperwork.

If you find you have to look for everything you need, then why not take a day or two to organize your business. If this task seems overwhelming, then you could do it in a three-step process.

One thing you want to keep in mind is that when you start your organization, make sure you don't jump around. Stay on the same task, until it is finished.

Step One:

Put Everything Into Categories.

Example:

  • Put all your stationery in one place.
  • Put all your reference material in one place.
  • Put all your receipts, invoices, orders, etc. in one place. •If you have products, make sure everything is easy to find. Think like the customer; is it easy for your customers to find what they want?
  • And the list goes on.

Step Two:

Sift Through The Categories.

For each category, get two boxes. Use the first box for things you want to throw out. In the second box, put things you are not sure about. Keep it around for a few months, then go through it again. This will save time in deciding what to throw out and what to keep.

Step Three:

Fine-Tune Your Categories.

With each day that goes by, concentrate on one category. Fine-tune it, so that it is organized to your preference. Don't spend the whole day on the category. You still have to run your business. Spending an hour or two a day on each category should be sufficient. It may take you a few days, a month or two, or even a year, but in the end it will be worth it. Your business will operate more efficiently; and once organized, you will have developed a habit of keeping everything organized.

Next chapter: Table of contents


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