TRICKS AND TIPS OF YOUNG
ENTREPRENEURS PART 4
Here we discuss the tricks and tips of successful young entrepreneurs. By now you have read some features of Entrepreneurship. But here is “Practice Makes Perfect.” This motto is about everything in life and especially if you own a business. Book Knowledge can help you a lot in avoiding mistakes but does nothing on practical hands.
Business start-up mistakes
An economy consists mainly of producers and consumers, and they engage in what is known in the form of a transaction. The transfer of products and services to consumers is an economic transfer, in other words, it is an exchange of money.
Business or firm is a place where the final products involve collectively various activities. It is neither easy nor quick to start a business. Here are some essentials that need to do the same.
What to produce?
There are many goods that belong to an economy. Therefore, the manufacturer should decide on this to produce these. Seeking one’s own benefit cannot be the only criteria. Resources are rare, and they should be optimistic and used for social welfare.
How to produce
There can be many ways to produce an item. Therefore, the manufacturer should choose the process that fully exploits resources at minimum cost.
How much to produce?
Excess of supply will reduce prices and producers will eventually suffer losses. That’s why production to meet market demand.
There must be sufficient investment power to start a business. If a manufacturer does not has the necessary capital, it can take loans from financial institutions, or can enter partnering with other investors to gain collective investment support.
It is not enough to have money to set up a business. One needs to understand the market consumption pattern. Even if the product is more likely to be sold, it should be marketed in such a way that it attracts the attention of the buyer. Otherwise, the consumer’s product details may not be complete.
Scale of production
Generally, a business cannot reach optimal production levels in a short period of time. This is due to fixed inputs of output which cannot be changed as per requirement. In inputs give rise to fixed costs that cut the manufacturer’s revenue. However, over time as products disappear and only the variable ones remain, that is, the manufacturer only has to bear variable costs.
Delegation of activities
No business can run on a single performance basis. There are many involvements in activities. Therefore, it is cheaper, more efficient, and necessary to delegate the duty to persons specializing in those fields. Therefore, violation of any of the above guidelines is a mistake through which the business suffers.
There are a lot of myths about being an entrepreneur; most viewed by the media. Although some of these are true, others are false. The following are the top five myths:
Entrepreneurs want money period.
A lot of people think that entrepreneurs are only in it for the money. It’s true in one fear of poverty, or simply financial insecurity, may well grow up to anyone heights, and there are some who do it for cash, but for most people, there is no money all over.
Many entrepreneurs have ego and/or emotions as their primary objectives, many do not maintain the lifestyle expected of them, and most consider money as a way of keeping score.
My profit, your loss.
People often refer to success in business at the expense of someone else, what do they mean.
Obviously, if an entrepreneur is winning, then somewhere someone has paid the price. This makes it appear that every business should have a winning and losing side deal. This is sometimes called the ‘zero-sum game’. In fact, entrepreneurs should be creative thinkers, instead of playing for ‘zero-sum’. Consequences, and contrary to popular repression, they often try to reach a compromise meaning everyone leaves the table satisfied.
More risk, more reward.
Many young entrepreneurs heard it, accepting it as the truth of the gospel. A relationship between risk and reward is complex and in no way inferior to anyone’s simple statement.
Risk in business is not the same as jumping off a cliff in the dark: knowledge, experience, knowledge diligence and persistence both modify ‘risk’ and ‘reward’.
Entrepreneurs become increasingly wealthy.
The rise of ‘dotcom millionaires’ certainly makes it seem like entrepreneurs are quick reindeer, but you must remember that nothing is as easy as it sounds.
You might think that entrepreneurs get very rich very fast but work very hard, goes into developing ideas/products that make them rich.
A good business plan is an important roadmap of the entrepreneur for success.
This is truer than other myths because you are unlikely to be given a loan without a solid business plan. However, a loan does not equal good money in any way.
Business plans are guidelines, yes, but to be successful, you need a lot of more business ethics “Honesty is the best policy”, a phrase that is valid not only in one’s daily life but also in business ethics.
Ethics is very important for all business people. Nevertheless, many neglect morality as an important concept that has a major impact on an individual’s success as an entrepreneur and investor.
Business involves money dealing, it may be own or taken borrow. It also involves the building of successful money-based relationships with customers and clients. Like this relationships must be built on trust – and ethical foundations, essential to building on faith. Therefore morality becomes the cornerstone of success in business.
It is important to realize that ethics is important regardless of the size of the business. Your business venture is big or small, whether you have many customers or few, the relevance of adherence to high ethical standards is the same. You see, ethics in business is closely linked to the moral value chain that interconnects all through its operation. Ethical value is imposed on every customer. There can be no exception whether your customers number 10 or 10,000 or more. Morality applies to everyone from them.
As a discipline, ethics can be applied in business or can be theoretical, or to express it differently, it can be either practical or philosophical. In the former, generally, the doe develops into nor serve as a guideline for achieving ethical behavior. Subsequent studies include investigating which and were about ethics in business. It also examines the issue of defining morality.
It promotes high standards, creates a code, and helps the entrepreneur evaluate himself personal moral standard. This standard, in turn, helps businesses to meet the ethical standards behavior of your employees. An honest business only employs honest professionals. It must be clearly understood the line.
High ethical standards are mandatory in most successful business organizations. An employee bribing someone, even the interests of their employer, is likely to be dismissed. Several multinationals refuse to do business in countries where bribes are usually given and took. In the business, the applied side of ethics is the example.
One last point.
There can be no compromise in ethics, despite the profit or loss of some factors.
For example, under no circumstances should a business break the laws of the country, where it is in business, whether it likes these laws or not.