Do Business Well

Many companies find that after their first few years they hit a sales plateau. Up to a certain volume, business comes easy. Then there comes a time when it seems as if the next sales dollar is very elusive. Ironically, the sales ceiling usually hits just at the point where profits start.

A variation of this dilemma is the seasonal sales phenomenon. I know of one motorcycle parts distributor who made huge profits eight months out of the year, only to lose almost all of it in the winter months. Continue Reading »

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5. Building a solid foundation: infrastructure required to manage your business

Just as you need a solid foundation for a building, so you need theright infrastructure for your business. This needs to be addressed ahead of time. Seriously, many businesses fail because they become too successful. Their infrastructure can’t cope with their growth and so their business literally falls apart. Don’t make that mistake. Clearly define what infrastructure will be required to run your business, both in the short and long-term. Let’s look at the different components of your business infrastructure:

• Premises: What is the physical capacity your business will require? What will be the optimal location for you in terms of closeness to your customers, major roads and the location of the competition.

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Regional Split

Where are you going to do business? Regionally, nationally or internationally? How much will it cost you to market yourproducts nation-wide and do you have the resources? One of the biggest mistakes that new entrepreneurs make is that they try and expand too fast. Their own success can lead to their downfall.

Is your product or service oriented towards the rural or urban areas, or both, and how will you adapt your approach?

Also, how many competitors are already operational in theareas that you want to go into? How many outlets can successfully operate in one area? Continue Reading »

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