bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

How to Choose the Right Dealers for Your Wholesale Business

If you have just started your wholesale business, then it is essential to find the right dealers. They should not only be willing to stock your products, but also willing to sell them at a blistering pace so as to take your business to the next level.

Here are some points that you should bear in mind when choosing your dealers.

• Check Out the Dealer's History. Check out the background of the dealers whom you are planning to appoint. Their background should indicate that they have been honest and clear in their dealings.

  A dishonest dealer can spoil not only the products reputation but also your own.

• Know Your Dealers' Financial Capability. Your dealers should also have the capacity to invest in their dealerships. They should also have a backup plan, in case the time that it takes for the business to pick up turns out to be longer than their original estimate.

  You could also ask for a security deposit, so that your money isn't stuck in limbo if they falter in their payments.

• Make sure your dealers are committed. Your dealers should be committed - and motivated! — to sell your products. Offer them decent profit margins and incentives to keep them interested in achieving that extra reward.

  Your dealers should also have a preference to sell your products over any other others, especially similar ones.

• Make sure you have an exit policy. In case your business relationship doesn't work out with a particular dealer for any reason, formulate an exit policy so that you can part ways amicably with the least financial damage.

Follow the above points before and after choosing your dealers. If you do, then the whole process - from manufacturing to distributing to retailing — will operate like a well-oiled machine.

How to Retain Your Key Employees During Bad Times

During good times, it is quite easy to retain your key employees - and regular tweaking up their salaries could just be enough to encourage them to stick with you.

But it is during bad times that you will need to be more innovative if you want to retain your best employees.

Here are some ways that you can retain your key staff during trying times.

Explain the Situation

You should communicate clearly with your employees and explain the situation to them - without putting them in a state of panic.

It pays to have a clear business plan, so that your employees have the confidence that you know what is required to lead the business ahead during tough times.

Show Flexibility

If you need your employees to work overtime, then you could give them some days off during holiday season in exchange. You should be willing to make some sacrifices if your employees agree to make some in return.

During the lean times, you'll need to use ideas like these to get the best out of your key employees.

Encourage Your Key Staff to Learn New Skills

If times are lean and your employees are sitting idle, then you can train them in new skills so that they can be ready in the future.

Keeping them occupied and learning will keep them interested, update their skills and also stop their minds from wandering.

Praise Them

If you cannot give your employees a reward for jobs well executed, then you can at least praise them. If this is the case for you, then make sure that you promise to reward them when your business improves.

If your employees trust you and are loyal to the business, then they will stay on in the hope that you will stick by your word.

When times get tough, it pays to use ingenious ideas to retain your key staff - and if everyone puts in some extra effort, then the bad times will soon pass.

5 Reasons Why People Refuse To Accept Change

As time moves on, it is imperative that you make some changes. This is especially true in the business world. Sadly, many people do not welcome change and insist on continuing as they are, even when it is apparent that change is sorely needed.

1. Fear. Most people are happy in the situation that they are in. In fact, they often presume that making a change could turn out to be worse than they had been expecting.

This is basically fear of the unknown. When not conquered, it keeps people stuck in low paying jobs or a running a small business that might not be doing very well.

2. Assumptions. People assume many negative things when they think about making a change. They think that they might not be able to settle down in a new office, might not be able to get along with new employees, or might not get enough business in a new location.

If you have done your research well, then there is no reason to assume anything negative. Assume the best until and unless you are shown otherwise.

3. Time. Many small business owners are willing to accept change - but might think that the time is not yet right for the step.

Unfortunately, this is a symptom of procrastination. In its most pervasive form, it results in nothing getting done.

4. Trust. As a small business owner, you might not be ready to trust anyone who is advising them to change.

The point is — if a suggestion is made by someone, consider the source. It they are a credible professional, colleague or family member, you would do well to at least consider their advice.

5. History. Entrepreneurs not wanting to change might cite examples from the past to prove their point.

They might point to previous ideas that have not succeeded, and convince themselves that history will repeat itself if they go ahead with the change.

Refusal to accept change is a small business owner's worst enemy. Change is a part of life — you can either accept it, or watch as your business slowly fades into the irrelevancy.

What Does A Good Brand Strategy Involve?

A good brand strategy doesn't just involve designing logos and punch lines. It involves studying the psychology and the requirements and expectations of your intended market before you can put your plan into action.

Here are some methods to ensure that your brand strategy is right on target.

Do a Proper Survey

Don't let your employees devise your brand strategy by simply sitting in the office and surfing the Internet.

Talk to actual people connected to your products and find out the perception of your company and your products from them. Find out if any changes are needed to improve your products, services or the image of your company.

Check Out Your Competition

Look into the strategies used by your competitors and find out as what techniques you can adopt in your business.

You can also convert their products or service advantages into yours, if you have a superior product or a higher level of service.

Include Your Company History

Companies like Coke like to remind their customers that they trust any of their current or future products because of their long and illustrious company history.

You can include your company’s history and link it to your products in a way that any future launches will have the stamp of trust associated with that product right from the start.

Out Of Sight Is Truly Out Of Mind

Explore, innovate and implement your brand strategy - but ensure that you are always visible to your existing and potential customers. Use all possible forms of media to stay visible.

Current market conditions call for aggressive but tactful brand strategies to create interest and desire for your products in your potential customers. Use the above methods for a successful brand strategy.

Most small business owners regard customer service as an unwanted and irritating aspect of their companies - but you can turn this service into a profit-making supplement to your existing business.

Here's how you can earn more profits — even after you have sold your product.

Treat Your Customers with Respect

If you cannot handle all your customers personally, then hire employees who are good at dealing tactfully with your customers.

Happy customers are the best way to bring in new customers - and the cycle can be repeated again and again to grown both your business and profits.

Open a Customer Service Center

If you are dealing in products that require service, then train yourself and your employees on how to service those products - open up a service center on your business premises.

Even though handling complaints might be stressful, your customers will be happy and will always come back to you when they need to make another purchase.

This will not only result in additional profits, but will also establish your company's name as an expert in the market.

Evaluate Your Level of Customer Service

Send in dummy customers to evaluate the level of satisfaction that your employees are able to provide.

Note any improvements that could benefit your business and make your customers happier. Do this on a regular basis, so that your employees do not get complacent.

More satisfied customers simply mean more repeat business.

Consider Customer Service an Invaluable Part of Your Business

You should inject great customer service into your business genes. It is just as important as achieving sales, since satisfied customers will respect you and your business - and that will translate into higher sales and profits.

Do not ignore this vital aspect of your business. Good customer service not only provides you and your customers with mental satisfaction, but will also increase sales and subsequent profits.

Regular meetings are important for every small business, since it enables various departments to come together and get an idea as to what progress is being made by each of them.

Here are 5 points that you need to keep in mind to organize a successful meeting.

1. Agenda

The agenda of your meeting should be formulated and ready before you assemble your team together.

Your goals for the meeting should be specific, and the method that you are going to use to achieve them should also be mentioned during the meeting's opening minutes.

2. Flashback

If the meeting is a continuation of a previous meeting, then you need to find out what was decided in the previous meeting and whether the objectives have been achieved.

Stumbling blocks, if any, need to be identified so that they can be discussed and resolved

3. Timing

You need to decide an ideal time to hold the meeting, so that you don't disturb your employees' regular routing.

If the need arises, then you can also arrange the meeting during a coffee break so that you can save a little time.

4. Place

You could hold the meeting in your office; if there are too many employees involved, then you could shift the meeting to a conference room in a hotel or business center.

Depending on the number of employees attending, you can then decide on the ideal place for your meeting.

5. Your Personal Preparation

Have your personal agenda ready for the meeting. You need to know what to say and present, and you also need to be prepared to effectively implement any feedback that your employees might come up with.

Keep an open mind and record all your employees' input.

A well-planned meeting can deliver better results and save a lot of time. Use the above points as a guideline.

Personal Traits That You Need To Run a Small Business

Running a small business is not only about buying and selling products. There are various personal traits that you need to have in order to attract customers like bees to a flower.

Here are some personal traits that are necessary for your small business to become that flower.

Honesty: This is the most important trait that you should have if you want to succeed on a long-term basis.

This means not only selling genuine products at genuine prices, but also gaining the trust of your customers and suppliers alike - and ensuring that you stick to your word, time after time.

Perseverance: This is another trait that is very important. As a small business owner, you will be tested for this trait very frequently.

You will need perseverance to keep following your dream of being successful, even as you face one obstacle after another.

Motivation: This trait is especially important, because your business will succeed only if you have the passion and motivation to run it day after day.

Vision: This trait is important for the long-term aspects of your small business. You should be able to visualize yourself and your business in the future, and you should take the appropriate steps to ensure that you proceed in line with your vision.

Leadership: This trait is important if you have a team of employees to lead. You should be an effective leader who is able to extract the best out of your team.

If you possess these personal traits, then that the people around you — employees and customers alike - will respect and look up to you.

This will not only increase your business, but also provide personal gratification as well.

On A Budget? Run Your Business from a Shared Office

If your budget is limited, then you should think about running your small business from a shared office.

Shared offices are normally located in a single prestigious building, located in the center of a business district. They are also called temporary offices.

Here are some of the benefits of working out of a shared office.

• You Get A Tech-Ready Office: Shared offices come fully equipped with telephone, Internet, fax connections, etc. Therefore, all you have to do is connect your equipment, and you are ready to go.

  Many shared offices also come equipped with a common copier and fax services, so you do not need to purchase potentially expensive equipment.

• No Need to Move Furniture: You do not have to buy or move your desks, chairs or filing cabinets. Shared offices come equipped with all the furniture required for running your small business from day one.
• Run The Office At Your Convenience: You opt for a short-term or long- term rental agreement according to your needs.

  Even though they are called temporary offices, you can rent them for many years.

• Shared Offices are located near your market: You can choose a shared office that is located near your target market. This will save you a lot of time, energy and money that you would normally spend commuting, if your office was located at a greater distance.

If you are starting off on a low budget, then the concept of using a shared office will ensure that you are able to start your business with minimal investment.

How to Rescue Your Collapsing Small Business

Whenever you start a new business, there is always a chance that things might not work out as well as you had hoped. After a period of time, you may start to realize that your business is on the verge of collapsing.

Here are some helpful pointers that will pull your business back from the brink of total collapse.

• Take A Step Back And Re-visualize: When things are going badly, you need to pause, take a deep breath and calmly analyze the situation that you find yourself in. Try to figure out where you have gone wrong, and the steps that you need to take to make them right.

  Think of the effort required and the financial implications - and then decide if you have the energy and passion to pull it through. If the answer is yes, then go for it.

  If your business is in really serious trouble, then get help from a business advisor.

• Keep An Eye On The Competition: Do a survey and find out how your competitors are selling their goods and making a profit.

  Look for any strategies that they might be using that you may not have been aware of. Try using the same methods to get back on track.

• Do An Accounting Analysis: Look into your small business' earnings. Are you making enough sales? Are you selling to the right customers? Are there unexpected expenses that you are incurring? Knowing the answers to these questions will help you get your bottom line in order.

  Immediately stop all unwanted expenses, and split urgent expenses into smaller, manageable ones.

• Do A Customer, Supplier and Employee Analysis: Find out if you have good suppliers, and if they are supplying you products at competitive rates.

  Along the same lines, you also need to know whether you are offering too much credit to your customers. That could affect your cash flow and put pressure on your receivables.

• Take Out A Short-Term Loan: If possible, look into taking out a short-term loan to weather the crisis.

By using the above pointers, you may be able to rescue your collapsing business. By learning lessons from the past, you can ensure that your small business has a successful future.

How to Find Fast-Selling Items for Your Online Business

Once you start your online business, then you will need to find fast selling items, so that you get maximum cash flow and don't end up with dead inventory in your hands.

Here are some ways that you can zero in on fast-moving items - and make money selling them online.

• Visit Seller Sites Like eBay: You can visit sites such as eBay and check out items that are searched for the most.

  You can do this by going to eBay Pulse, which will show you the 10 top searches for all the different categories on eBay. A higher-numbered search indicates a higher demand for that item.

• Find The Source For Those Items: Once you get a list of items in hot demand, then you need to find out the cheapest wholesalers or drop shippers for those items.

  Try to get a good deal by purchasing those items directly. Then, depending on your online experience, you can buy those items and sell them yourself. If you don't want to bother with shipping and fulfillment, you can just pass on your orders to a reputable drop shipper.

• Ask Your Drop Shipper or Wholesaler: If you have had a good experience with a certain drop shipper or wholesaler, then you can also ask for their guidance.

  If you do a lot of business with them, they will probably be happy to give you a list of their fastest-selling items. Use their experience to your advantage.

• Do Not Hold On To Dead Inventory: If you are not able to sell some of the items in your inventory, then mark down the prices of those items and sell them immediately - even if you have to make a loss.