How to choose the right segment?

good_businessNo matter how we look at it, this has to be one of the most important factors considering it’s the segment you are working in that will take you where you want to go.

But how do you choose a segment to start your business in? Is it ok to get into retail because everyone else is doing it? Why not set up a grocery store because every other person you know runs a store?

The above reasons are totally wrong since you are basing your whole future on the apparent business success of other people and not on fact that if you even like that segment. A person who gets into a business just because other people are in it, needs to ask himself a few questions, and one of them has to be

“Can i work day and night to succeed in this sector, or will I get bored and give up?”

If the answer is no, look for a segment that you burn for, rather than choosing one that will burn you in the wrong way.

Read More

Pricing your products or services

This is that one thing that I used a lot of time on and I am sure everyone who has a service or a product goes through the tough moments of pricing.

Shall one go 100% up in profit?
It depends on the type of service. I have a few products which cost me around 10 usd included shipping and any customs etc, and I sell them further for 15 usd. And then I have products that carry an amazing for 100% profit on each sale.

But you should be very careful when pricing too high, unless you have built a position in a certain category.

Remember never to underestimate the customers reasoning. If lots of them say your product is too expensive, go back to the bench and recalculate.

Lower your profit, and re-introduce your product into the market. At the end of the day, it’s better that people get used to your product due to the low cost, than to never look at it because it’s three times more expensive than other popular brands. Your product might be the best thing in the world according to your little brother, but the customer cares about his hard earned money, so should you if you want it to switch places.

Read More

Have your clients love you

customerloveThere are lots of things you can do to get your customers or clients to love buying your services or products.

One way to make this “relationship” work is to give a service that’s way beyond their expectations.

For example, show them that you respect them because they chose your business over someone else’s, and that you will do everything possible to keep giving them the service they deserve.

Make it a habit to smile and greet them with kindness. Who doesn’t like to be spoken to nicely?

If you had a bad day, don’t take it out on them and no matter what happens, don’t underestimate the value of a good customer. And if you truly want to realize what the customer is worth to your business, try deducting their sales amount from your last month’s billing. Every customer is important, and to keep them glued to your services is and should be your only goal.

Read More

Taking a loan for your business

loanThe most popular approach to doing business is that you would talk to your bank and they would give you a fat cheque with an amount that will make you rich.

But does that help?

Well, you might make it, and you might fail. And in the case of failure, you need to remember that the bank is not your friend. They don’t care if you succeed or not. The only thing they want back is their money, and the interest on top of that. And if you can’t pay it back, you might lose everything that you had.
Your house, your car, and in worst case, your life.

So how do you start a business?
Well, ask your friends or family. Look for some part time work and save some money. If you are still crazy enough to set up your own business by the time you have saved some money, you can now invest without taking money from the bank.

But remember that not all businesses make it, so you need to have a backup plan if you are thinking of investing everything you have in something only you feel comfortable about.

Read More

Non-paying customers

customersThe biggest concern of any businessman is to have a healthy cash flow. If their is no cash coming in , the business might run on borrowed money from your family and friends, but it won’t last long.

Dealing with non-paying customers is a pain in the neck. I have had quite a few of those, but at the end of the day that’s just how they are. But that doesn’t mean you need to put up with it.

Here is how I deal with them.

1. I send a very kind email, and sms reminding them of the payment

2. If I don’t get any response, I pay them a visit after a few days to remind them of the bill again

3. If there is still no response, or action. I cancel their services, and do not provide them any more products/service.

4. I blacklist them and avoid them in the future. I would rather lose a big customer who orders every week and pays late, over one who buys once every few months and pays on time.

Read More