Practical Business 101: Some priceless business lessons I was never taught inside the four walls of the classroom. By the way, this is one of the reasons why I haven't updated this blog for a week or so...I have recently opened a distribution outlet of a popular franchise somewhere down south. It has been four days since we started operations and boy, my 4++ years of UP business education is being put to the test. (yep i was one of the kuya's of my batch... if not the only kuya) I wouldn't say that all those years came to naught nor would it be accurate to say that I've learned all I needed to become an outstanding entrepreneur today.
I would like to share some priceless lessons I've come to realize I was never taught in business school. I'm doing this hoping that you too may profit from my experience. This is my way of giving back to the world.
1. GET A MENTOR. Someone who has gone the path ahead of you. I'm lucky to have my brother-in-law for my business coach. Many of the ideas that would follow I have learned from him. Don't get an advisor who doesn't have a business of his own. Your mentor must have at least lost and been into three business ventures. His wisdom will be priceless. He will save you precious time in the process.2. BORROW MONEY. Don't use your own to start your business. As much as possible use other people's money when doing business. Just make sure your average cost of capital is lesser than your Rate of Return (i learned the latter in school).
3. DON'T BE SUPERMAN. (or supergirl) Leverage on other people's time and efforts and network. In school I was taught that cooperation during tests is cheating. This is not so in business. Your bottom line may be lesser because you have to share it with your partners but in reality you are gaining more that what you are paying for.
4. CHOOSE YOUR BANK WISELY. When you are starting, try to avoid the big commercial banks. Otherwise, all you would get from them is a cold shoulder and a get-out-of-my-face treatment. You would want to be a big fish in a small pond. You want to get noticed. Show to them that you know what you are doing. You can only do this if you are putting your money in a good small bank. This is in preparation for future transactions that would need good relations with your banker like having to secure loans for business expansion.
5. KNOW THE BUSINESS SYSTEM. Decipher where you can gain a bit of extra money. Say for example, determine how long and how much your credit limit is with your supplier. Maximize on this time lag in order to improve your money's rate of return. Also, it would be helpful to think like your employee. Determine the loopholes in your system where he can get extra money from you and fix that part IMMEDIATELY.
6. MIND YOUR SALES. Put it as yoiur first priority to personally take care of sales levels. Don't delegate it to others. It's your responsibility to make sure sales are at the right levels. Get your hands dirty. Sell or die.
So far, these are the Practical Business 101 learnings I have made. I know many business lessons are coming my way. I'll keep you posted when they do.
0 Response to "Practical Business 101"
Post a Comment
job hunting? click here!