Senin, 30 Mei 2011

7 Useful Tips for Every Small Business

By Jim Crider

There are two ways of earning money: 1) by working for someone else or 2) by being your own boss. Being self-employed isn't as tough as you might think; however it does requite quite a bit of gumption. For a person who works for themselves to earn enough money to live off of, self-confidence is important and it comes out of one's own strength and talent. Today, many people working for someone else are leaving their jobs only to create their own future by starting small business firms. By this, they not only want to make their own future but also want to create employment for many more people.
Companies are categorized into micro, small and large businesses
based on qualifications such as their startup cost, their turnover rate, gross revenues, output and so on. Small business is quite safe for new entrepreneurs because there is not as much risk to take and the outcome can range from a good 3% to 50% of returns. It all depends on how one drives the small business. Here are 7 very useful tips to successfully running a small business and make profits. They are as follows:
1. Leadership: In a small company, unlike in larger firms, the decision making process can be much faster because of less people involved. It is not that there shouldn't be more than one leader, yet, having more leaders would only delay the decision make process. The leadership advantage a smaller company has over larger businesses is this ability to make quick decisions.
2. Planning: Planning plays a major role for any business. Good planning with regard to all the aspects such as investment, process, human resources, etc. has to be done carefully to ensure initial risk is minimized.
3. Location: Location, location, location! Entrepreneurs to take enough care to start the business at a suitable location. The location is very important for small business to ensure faster delivery of the product and procurement of raw materials etc. It is important to choose a location which has good natural resources, good availability of raw materials, transportation facilities and availability of labor.
4. Quality: For a small business, it is important to provide a quality product or service to ensure a good name in the business world. Exceptional products and services gain positive brand image quickly.
5. Law: It is very important to know and comply by the legal norms of the State and the Country one lives in.
6. Market Section: A small business cannot be just another company that sells something that many other companies are selling. A small business firm has to identify the section of the market to which its products would appeal more.
7. Budgeting: Budgeting plays a very important role in business. Good budgeting procedures reduce waste and improve productivity.
The above 7 tips are useful to any new small business. There are countless other facets to running a small business that should be explored, but getting a grip on these 7 basics is great place to start for any entrepreneur.

Article Source: http://EzineArticles.com/6171603

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