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Down To Business
When you're ready to get down to the business of running your business, use the business plan as your road map. Although your business plan will outline the operational concerns and areas most critical for you, following are some of the major concerns most new businesses need to address:
- Marketing Feedback: In your business plan, you have identified potential customers - your target market - and what is unique about your product or service. As soon as you deliver your product or service to your market, ask for feedback. How do you like our product or service? How can we improve it? You can always improve your marketing; delighted customers are your best promise for a successful venture.
- Pricing: The three main components of price are material, labor, and overhead. The amount you charge for a product must cover all costs and return a profit. In your business plan, you did a complete cost analysis and set a price that falls in line with your marketing strategy. As you begin production, you'll learn more about the variables for producing your product more efficiently. Constantly try to find ways to decrease the cost or improve the quality of your product.
- Location/Property Issues: If your business plan calls for your business site to be in a location outside your home, be sure to consider zoning regulations, access to adequate power, signage needs, and property maintenance issues. Again, fully explore all terms before committing yourself to a lease or rental agreement.
- Supplier Management: Your business plan identified suppliers of the materials you will need to provide your product or service. Successful business strategies are often based on building excellent relations with suppliers. If you and your suppliers are a team, working together for your mutual benefit, your costs and quality will be more predictable and your customers will likely receive your product in a more timely and consistent way.
- Production: Determine the best, most efficient way to make your product or offer your service. For equipment needs, leasing may be a financially wise choice. Make sure you fully understand lease terms - rates, maintenance, renewals, etc. - before you sign.
- Distribution: Figure out the fastest, least expensive way to get your product or service to your customers.
- Patents, Trademarks, and Copyrights: If your product or service is unique, protect these special features before you introduce your product or service.
-- Patents grant your company exclusive rights to an invention for a set time period. It's best to speak with a patent attorney before you produce and sell your product.
-- Trademarks identify the source of both goods and services and are among a company's most valuable assets. Proper usage generates recognition and customer loyalty that can result in enormous financial returns. For more information, go to the US Patent Office website.
-- Copyright protection exists in original works of authorship fixed in any tangible medium of expression. For additional information and forms to register your copyright, contact the Register of Copyrights, Library of Congress, Washington, D.C. 20559, 202/707-3000.
- Staffing: Depending on the size of your business, staffing can be an important concern. If you're going to hire employees, be sure their roles are clearly defined. Prepare an organizational chart of personnel that covers the functions of sales, service, manufacturing, and purchasing. Familiarize yourself with federal and state regulations that protect the rights of potential employees. The Equal Employment Opportunity Commission (EEOC) provides information about regulations affecting small business owners. Advertise open positions and interview candidates in a non-discriminatory manner.
- Training and Retention: Provide opportunities for your staff to learn more about their jobs and responsibilities. Maintain a pleasant work environment with fair compensation. While pay is an important reward for employees, it's not the only way to recognize their contributions. A bonus day off, special lunch or dinner, and even the occasional pat on the back for a job well done can help motivate your team. If you need to terminate an employee, make sure you have legitimate, documented business reasons for firing someone. Be sure the standards you apply are fair and consistent, and are clearly communicated to employees.
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