Run the Business

Entrepreneurship Module Ten: Run the Business
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Transcript

Run the business. running the business is the fun part. This is where you take all of the tools required to prepare you for operating a successful business and put them into practice. Before you can sell the products or services your company offers, you must get out there and source the materials. Once you do and the cash starts coming in responsible money management and budgeting will prove to be your company's best friend's procurement. If your business consists of selling products and even for some services, you must source suppliers to provide the items to you and create a master agreement with them.

Having a master agreement that clearly outlines the terms and prices will allow the transactions between you and the sellers to run more smoothly. How do you find suppliers? There is no hard rule on how your company should look Case suppliers, but here are some steps that can help along the way. Have all interested suppliers complete a questionnaire. Make sure the questionnaire is comprehensive asking all of the questions necessary for you to select the right supplier for your company. From all interested applicants, select a small group of the most qualified candidates.

Send a request for proposal or RFP to these candidates. In the RFP discuss the products and or services you require as well as other pertinent details like timeline. Those who are still interested will submit a proposal to supply for your company. Select the supplier that best meets your needs. sell, sell sell, most people think selling a product or services. That's easy.

Well, this may come naturally for some effectively selling is not so easy for others. is important to create a method for selling rather than haphazardly. Doing so. This is a business and one of your main goals is to make money. In order to make money on a consistent basis, carefully consider these steps. When you make initial contact with your prospective customer greet him or her.

You'd be amazed at how much this gets overlooked. Keep in mind, a little knowledge goes a long way. Get to know what the prospective customer needs. How can you intelligently discuss the benefits of your products or services if you don't know how they can meet the customer's needs. restate what the customer has shared as their needs. It is important to confirm you have properly understood what the customer wants.

This will save a lot of time and headache on the back end. develop a plan of action to meet the customers desires. Simply ask for the sale. close the deal. Follow up with a customer Selling is not just about the sale itself. It is also about relationship building.

A repeat customer is the best customer to have. How to manage cash flow? It is not necessary to be an accountant in order to manage your cash flow, but you must understand basic accounting principles. First of all, you need to know what cash flow is. Cash Flow is the phrase used to describe the funds that come in and go out of a business. If you have positive cash flow, that means that you have more money coming in and going out.

That means negative cash flow is you guessed it more money going out than coming in. A company that has positive cash flow is not something that happens on its own. The business has to implement strategies that promote such What are some ways to improve cash flow. increase your sales don't extend as much credit to customers. Give your customers pricing discounts. budgeting.

Budgeting should be a major component of every business, whether large or small. It serves two purposes. One, it allows the company to estimate that which is spent on expenditures to. Companies can use the figures at the end of a specified period to determine if the company has stayed on budget, and how this has affected its bottom line. Before you can create a budget, you must know what you're working with. First, determine what you want to measure.

Do you want to keep track of what you spend on supplies, personnel and marketing, then you need to gather all of the receipts documents and other information that pertains to those items. You need to have an idea of the reasonable costs of those expenditures as well as figure ways to decrease the amount of money that you've spent on them in the past. This will help To make better predictions of how to set your budget, the signing on the method of budgeting to use depends on your business needs as well as your personal preferences. Some options are zero based budgeting. This type of budgeting starts with a zero baseline. All expenses must be justified each period.

Top down budgeting cost projections start at the highest level of the company, ie executives then come down, bottom up budgeting, cost projections. Start at the departmental level with employees and then go up

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