Monday, February 24, 2014

15 Tips To Help Become A Better Entrepreneur

There is no certainty in business. Even the best entrepreneurs fail from time to time.

Even prestigious business men did suffer some failures before Success.

But with these tips, you will be able to lower the chances of failure.

If you apply all the tips you learned here, you will be able to see problems even before they happen.

This way, you will be able to make necessary steps that will prevent the problem from occurring or from causing significant damage. 



Take note that experience is still the best teacher. And this is especially true in doing business.

There are many things that only you can learn on your own.

 So start small first and learn. Once you gain more experience, you can then aim for higher goals.




Also, you should only use this writeup as a reference. Do not base your decision solely on it.

The world of business is governed by many ‘unpredictable things’. Therefore, you have to act based on the situation.

1. Offer discounts once in a while

This is a good chance to gain new customers. If you offer a discount, new people will buy from you.

 This way, you are giving them the chance to see your products and your services.

If they like it, they will surely come back. Also, offering discounts will make your current customers happy.

2. Offer promos once in a while

Promos are different from discounts. The most common is the Buy 1 Take 1 Free promo.

Just like discounts, promos are also designed to attract new customers and keep your current customers happy.

Of course, you have to make sure that your promo offers are known to your target customers. Advertise in advance that you will be offering a promo offer.

3. Obtain email address of current customers

When a customer buys from you, always give them the chance to provide you their email address.

This can be included in the purchase process (make sure that you do not make it compulsory because some customers do not want to share this information).

This way, you can inform them by email when you have promo offers or discount sales. Take note however that this is also a double-edged sword.

Avoid crowding your customer with email.  If you do, they might just begin to hate you.

4. Offer freebies that cost little or nothing

Your customers will love freebies. And by offering freebies, you will also attract new customers. But there is one downside to this: it is costly to give things away for free. So what do you do?

One clever solution is to offer a freebie that will cost you little or nothing.

Examples include eBooks and other electronic goods that can be redistributed endlessly (buy 1 eBook with redistribution rights then give a copy to all your customers).

 And if you have old merchandises that are not getting sold, you can dispose of them by offering them as freebies.

5. Maintain quality even in seemingly unrelated things

Everything in your website must have good quality. They do not have to be extravagant. They just have to be error-free.

For example, you must avoid mishaps in graphics editing and grammatical errors in product descriptions.
This is because customers will relate any error to the quality of your products or services.

If a customer sees a lot of grammatical error in your website for example, that customer will think that you do not value quality. They will also think that your products/services also lack quality.

6. Prioritize on customer satisfaction

Customers return because they liked something about your service. And this is not just about the quality of the product they bought from you.

 This is about the service you provided in general (ex. How easy it was to transact with you,how fast you had the products delivered, how easy it was to use your website, how informative your product descriptions were, etc.)

7. Analyze which products lack in supply

After a few weeks to a few months since you started operation, you will already have a good idea on which products sell more and which products sell less.

 Simply analyze the sales report and sales data.

If you see that a certain product is lacking in supply (always ends up as ‘out of stock’ because a lot of people are buying it), you should increase your order of that product.

This is because customers get dissatisfied when they want to buy something and get told that the product they want is out of stock. It affects customer satisfaction.

8. Analyze which products are excessive in supply

The next time you resupply, you should order less of the items that are‘excessive’ in supply (few people are buying it so there are always a lot of leftover in your inventory).

In some cases, you may even have to remove that item from your list of products.

Take note that unsold merchandise is bad for business. It will affect your sales because your investment in that unsold merchandise did not result in profit.

9. Re-analyze demographic of buyers of particular products

After a month or so of operation, you should start analyzing the demographic of the customers buying your products.

These include age, gender, nationality, and such. This will help you make necessary changes.

For example, if you originally perceived that your products will sell more to people between ages 16-29 and yet your second study revealed that your buying customers are between the ages of 14 to 40, you might want to increase your scope of advertisement and make some other changes.

10. Update future orders according to sales analysis

Your future orders of merchandise from your suppliers should not be based on guesswork.

It should be influenced by current data you have with you – the sales report analysis.

The idea is simple: order more of products that sell a lot and order less of products that sell less.

Also, you should determine from the sales analysis which products are seasonal (sells well only during certain months of the year). In which case, you should order seasonal products only during their season.

11. Acquire supplies by consignment as much as possible

There are two ways of acquiring merchandise: 1) by purchasing and 2) by consignment. With consignment, you are taking possession of the products but you are not yet paying for them.

And here is the juicy part – you will only pay for the sold products. As for the unsold products, you can return them to the supplier if you like.

This way, you are not absorbing the losses resulting from the unsold merchandise. It is your supplier that will be absorbing the losses.

12. Limit orders of introductory products

At some point in time, you may want to introduce new items into your line of products. But do not get too excited so as to order one too many of the new item. Start with less.

If everything gets sold, then try ordering more next time.If the new item keeps showing promise, it is by then that you can start ordering more.

 This is a precaution that professional entrepreneurs always take. This is done to prevent possible losses arising from unsold merchandise.

13. Do up selling effectively

Up selling is a marketing technique used by entrepreneurs to maximize sales.This is done by offering additional related products to customers that buy from you.

For example, if a customer buys a digital camera from you, you can offer him to also buy related products such as memory cars, lenses, tripod stands, and such.

 It would be easier for them to agree to such offers because the products are related to the product they just bought. 

14. Do cross selling effectively

Cross selling is just like up selling. It is done by offering customers to buy more than what they purchased. But in cross selling, you are offering a product that is not related to the one they purchased.

 For instance, if a customer bought a camera, offering him to buy an mp3 player is called cross selling. This is helpful if you are selling a variety of products that are not related to each other.

15. Make a list of possible ‘risks’

Business does not always go according to plan. There are definitely going to be some obstacles and difficulties.

But with careful planning, deliberation, and observation, you can come up with a list of possible risks.

Try to think of possible problems that your business might face.

Try to simulate situations in your head. What difficulties do you think will arise?

With this kind of anticipation, you will be better equipped to face such problems.

Of course, all the tips may be difficult to remember.

It is advisable that you read it again and again whenever you have the time.

This is the best way to instill the principles to your mind.

This write up is not a solution to the problems that you will face as a businessman, it is available to make you a better entrepreneur – the kind of entrepreneur that can handle problems based on the situation.

Good luck with your business venture. Keep dreaming and keep aiming high.

 All the Best.

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