Rules for successful business
1.LEGALITY – Omissions in administration or misinterpretation of legal provisions can cost you dearly, some could bring about bankruptcy or prohibition of businesses. Further, certain laws anticipate criminal charges and prison sentences. Improper reporting of business performance increases the risks. Eliminate all risks, rest assured that your business is legal and sleep peacefully.
2. FOCUS-To grows your business, all free time should be devoted to marketing and sales. If you do not have enough free time, release it by assigning all these administrative tasks to professionals. The released time should be used to collect information on competitors, demand and supply on the markets, new marketing tools, increasing revenues, etc.
3. ECONOMY – Your expenses should be predictable and on the optimal level. This means that the operational and administrative costs should be minimized and desirably fixed in nature. Consider "online" shopping, quantity discounts, advance payments, outsourcing services, etc.
4. CASH FLOW – Even the most profitable businesses in the world fail if you do not have healthy cash flows. Many profitable companies have gone bankrupt due to poor liquidity, i.e. lack of funds to meet maturing obligations. Consider advances, deferred payments, accelerated settlements (e.g. factoring), leasing, loans and borrowings, alternative funding sources (e.g. crowd-funding) and other possibilities of optimizing cash flows.
5.DISCOUNTS AND REBATES – Avoid providing them. Try providing an additional value of products and services to your customers and clients for the same price. A happy buyer is a good buyer. The buyer is also always right.
6.PROPER PLANNING – In business plans, always slightly overestimate costs and underestimate income. This concept of “prudence" is one of the basic principles of accounting. Leave room for unforeseen situations. The above-the-plan results are good news for all involved in the business, you, the banks, suppliers and other investors. The failure to meet the targets set in the plan on the other side is bad news and cannot be logically explained due to overestimated or poorly prepared plans because in that case, you document that you have not planned your business activities well.
7. MONITORING – Monitor and analyze the actual results against the plan. Analyze the reasons for the deviations from the plan and act. Make your conclusions and decide which steps to take to improve the results in the future.
8. ENVIRONMENT – Surround yourself with people who radiate positive energy both in private and business situations. Avoid people resistant to change, who emit negative energy and who always say that something "cannot be done".
9.DEVELOPMENT – It is very important to constantly develop and learn. The phrase goes „learn, learn and learn“.