I write posts based on my experience with various type of business I deal with. I found that some good trustworthy people fail in their business due to factors which are definitely avoidable. I want such honest people to succeed at any cost, because this society badly requires them in that field. Hence, this post for toddler enterprises.
This post can also be read in continuation of my earlier post:
Do’s and don’ts of a budding manufacturer(Small scale)
- Always keep in mind “the principle” for which you had started your enterprise. Most of you wanted to offer a quality product or service, to your customers/clients which you badly felt you wanted and couldn’t get or were difficult to get.
- Maintain the quality of the product even at the cost of losing some of the customers, who are more concerned about the price. Do not bother much about the price, even though it is quite important. Eventually, you will get more dedicated customers atleast just for the sake of your honesty. Please remember: in today’s world, being normal i.e. without any bad motives, is a rare virtue and you will soon be recognized as a diamond among the coal.
- Be professional in your business. Being professional does not mean leaving ethics to the wind. Maintain your consistency in dealing with all the stakeholders like customers, franchisees/ wholesalers/ retailers, etc. including government officials. Never delay your payments-you will certainly default one day. If you supply the products at a certain price, be consistent with it and have no partiality among the distributors. Avoid jealousy- it is a negative trait which cannot help one succeed. If distributors make more money from your product, be happy that they bring business to you. Distributors are your representatives and very important branches for procurement of new customers and remember they are your free advertisers. If you manipulate your distributors, you are slowly killing your business, especially for a new enterprise. It will be ideal to avoid credit based transactions. Yes, it is possible and have seen it happening in some successful enterprises.
- Never ever deal with statutory requirements in a casual manner. Ensure that all your licenses/ approvals are live and that your CA or your consultant files the necessary returns within the due dates. Take GST registration whenever it becomes mandatory. Try to maintain daily records of all transactions or transactions under major head even if you file Income Tax Returns under presumptive scheme. It is easy to maintain records- if you start doing, it will become a system. At the end of each working day, just spend 10 to 15 minutes in writing down the transactions, if it is not possible to do it for each and every transaction during the course of the business day. It will also contribute to improving your memory 🙂
- Clearly demarcate your personal finances and business finances preferably your bank accounts also even if your business is a tiny one. Know how much cash goes towards your business from your personal finances. Maintain each and every such transaction in a separate book.
- Don’t hesitate to pay for yourself also. It may be true that you and your business may be inseparable, but start paying yourself atleast Re.1/- and slowly escalate your salary from your enterprise. The intention is to have a system. It will do a whole lot of good for your future.
- Having a comfortable cash flow is good and it is always better to avoid seeking debt.(Plan properly before jumping to a business)
- Having an open and cheery mindset always fare better than a dull mindset.
Lastly, being a vasthu professional also, my strict advise will be to, not do business in your residential premises. Keep in mind that your residence is “private” – only for your family and not for strangers to walk in and out. Never allow strangers into your residence. Don’t expose yourself and your dear ones to unknown elements. Do not mind spending on rent for your business. Go for lesser rent. The cost is tiny compared to the advantages.