Do Business Well

Service organizations will grow up that will enable demand for ordering and delivery to be met continually. Production will be the only variable. Let me explain. There is a relatively finite amount of purchasing power in the world at any one time. There is also a finite amount of time to view and order products. This means that if there was only one shop to order from it would be relatively easy to build a process and an infrastructure that could cope with the total demand for dealing with orders, complaints, payments, deliveries and returns.

This is how postal delivery services work. They know how many homes there are and organize delivery men to deliver each day to a certain percentage based on the general level of demand. Most of the time there is sufficient slack built into the system to cope with demand blips. This may just mean the delivery people working a little faster or longer occasionally. Continue Reading »

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Every bank and lending institution will require a business plan before they commit themselves to lending you money. A business plan basically shows that you have established that there is a market for your product/service and that having established sufficient demand, you have a good estimate of what your costs will be, as well as your sales volume, cash-flow and likely profit (although the last is often optimistic). Continue Reading »

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