Global Platinum shares a great example of this is renowned finger pointer and main attraction of the UK TV show ‘The Apprentice’ Lord Alan Sugar; starting a (very) small business selling electronic products from the rear of his truck lead to him owning an empire currently valued at around GBP 770m. From this he developed his knowledge of new products in his niche and took full advantage of every gap in the market. By staying on top of his game and firmly in touch with his target market he has become one of the most famous businessmen in the UK.
Global Platinum believes that following this pattern is a great way of starting a successful business; start as you mean to go on. Here are a few ideas and tips Dominion Aqusitions considered when they ventured into the first year of starting their small business.
Global Platinum states that you need to know your industry
Starting a business in an industry you know nothing about is only going to lead to one thing; failure. If you do not know and love the product and service you supply then advising potential customers and investors on what’s so great about you and your company is going to be impossible. You must first research the industry you wish to work in, this helps to understand the demand for your product and the strength of any competitors. This can also help to identify a gap in the market either locally or generally (although it’s fair to say there are always online suppliers of any product you can think of). If you are hoping to establish a tangible store or shop of sorts then location research is vital, you may have a large amount of competitors at your desired location so looking for an area with little or weak competition is likely to be more advantageous.
Global Platinum is aware that managing a small business can be a daunting task. Entrepreneurs have great ideas and plans, but they sometimes lack the proper management skills for day-to-day activities. Learning a few essential operational techniques can greatly enhance the operations of a small business and turn it into a highly successful company.
Global Platinum believes in having a competitive edge
• Before starting a business, entrepreneurs should focus on preparing a business plan that outlines how they will create a competitive edge in the market and create profitable operations. All businesses need to have a set plan of operations that will achieve profits for the business and income for the business owner. Having a written strategy for achieving these goals, will help owners maintain a strong focus on creating a competitive edge and turning a profit on their business operations.
Global Platinum stresses start small
• Companies should start small and then expand as their operations gain market share. Low overhead gives a small business the flexibility to make changes if the industry changes or consumer demand begins to wane.
Additionally, outside financing should be kept to a minimum. The more cash injected into the business by the owner, the less paperwork and bank reporting early in the business. Most banks will also require collateral for bank loans, forcing the business to purchase acceptable assets for bank loan requirements.
Typical business agreements for daily operating facilities should be made in writing. These include rent, equipment leases and materials procurement. These written agreements will enable business to maintain their purchasing power and avoid price increases if their business quickly becomes successful.
• Global Platinum understands the significance of hiring employees
• Most small businesses will need additional help. Properly staffing a small business can be difficult; hiring competent personnel at a decent wage is a tough aspect of business. When good employees are hired, focusing on retaining them in the business should be a priority for management. Replacing employees is an expensive process for most businesses; owners of small businesses can rarely afford employee turnover
• Using commission or sales-based bonuses can help employees work harder for the business, creating happy employees and a successful business in one step. Financial rewards also help employees to take ownership of their position in the company, creating loyalty.
Global Platinum knows the importance of working smart
As an entrepreneur, you need to possess self-confidence, plus a never-ending sense of urgency to develop your ideas. Studies have shown that the individuals who succeed in entrepreneurship are far-sighted and can accept things as they are and deal with them accordingly. They know how to manage their time, realizing the importance of leisure in as much as work. These people are oftentimes quick to change directions when they see their plans are not working. More importantly, they recognize their weak points and move on to nurture alliances and acquire the skills they need to put their business on the right track. They realize the importance of working smart, knowing that it is not the quantity of work you do, but what you do and how well you do it.
Global Platinum feel planning is vital
An entrepreneur should understand the power of planning. A good plan helps you increase your chances of succeeding and can help you define your business concepts, estimate costs, predict sales and control your risks. It tells you where you are going and how to get there. Going into business without a plan is like driving into a foreign land without a road map.
Global Platinum final point to a successful small business is the understanding that your reputation is everything
Your business hinges on its reputation. It is imperative that you build a good reputation for the quality of your products and support services. Remember that two things guarantee success: high quality goods and superior service.