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Business Management Basics: Seven Factors for Success

Business Management Basics: Seven Factors for Success

LaShon Anthony

All business owners want to be successful. This article outlines seven aspects of a company that require effective management. You can always find ways to create a "well-oiled machine." Improvements typically translate into returns on your investment.

1. Marketing – Product, price, and positioning.
Timing is everything. Snickers, Tootsie Pops, Mars bars, and Three Musketeers were all created during the Great Depression of the early 1930s. During stressful times, people turn to comfort foods. Chocolate candy is an inexpensive choice that also relieves cravings & releases endorphins. At this time, perhaps the best item to market is digital information. People surf for information everyday on a variety of electronics. How-to videos, webinars, articles, and ebooks & audiobooks have all seen an amazing increase in demand. The out-of-pocket costs are very low and you can create these materials at home on the computer in your pajamas.

2. Finance – Earning money and accounting for your receipts.
If you’re not earning money, it’s time to close shop. Be creative. Get paid for freelancing. Develop a good checklist for minimizing losses. Increase profits by upselling & outsourcing. Keep your receipts and organize them by month so you won’t scramble for information at tax time. Many small business owners fail to itemize expenses for this very reason. Make sure you don’t miss the major deductions.

3. Production – Creating with consistency and high quality over the long term.
Customers don’t want to spend their hard-earned money on products that stop working or break shortly after purchase. They also don’t want to pay for shabby services. Dependability will add a premium value to your business. Your customers will notice and start talking about your merchandise (or service) to their family & friends. The word of mouth factor (viral marketing) cannot be denied. Every company of every size strives to achieve this on some level.

4. Distribution – Getting your products or services to market timely and economically.
The channel you select will be determined by the type of merchandise you sell or service you offer. Research the distribution system of your competitors and copy what works for them. Some products are appropriate for convenience stores, others fit best in wholesale, direct sales or larger retail establishments. Protect yourself with an agreement with the manufacturers. In regard to marketing, you’ll need to implement offline and online strategies. Here are a few examples:
Offline:
- Print advertising in newspapers and magazines
- Radio/TV ads
- Flyers, postcards, brochures, and door hangers
- Cold calling
- Event sponsorships