It is indeed the prior motive of every businessman or woman to minimize the cost of doing business in order to maximize profit. For this reason, there are ‘dos’ and ‘don'ts which would account for a businessman or woman's productivity.
To be productive, one needs to manage effectively the resources of the business. The resources must be applied to where it is mostly needed. The time opened must be managed so that productivity is always within time to avoid time wasting. Also working hours should not be used for prayers or other personal engagements. In the same vein, one needs to control the resources ensuring proper allocation to the various departments so that all sectors work effectively.
Further, one must make sure that there is proper supervision of the workers to avoid idleness, pilfering and lateness to work.
A productive businessman/woman must have a succession plan, to be able to delegate and above all institute proper training programmes for the business.
Furthermore, the businessman/woman must have multiple streams of income. This means that the resources of the business must not be placed in one bank. To remain productive and to maximize profit, it’s necessary to introduce research into the business. Value must be added to the products and packaging securely locked into.
Different trends of the same products must be introduced to improve the taste of customers. Door-to-door supplies could be introduced to reduce the cost of doing business on the wide of the costumers.
Lastly, to remain productive the businessman/woman must be able to handle competition in the business package or branded products. The business structure-organization must be put in place to ensure proper recognition is given to everybody. Annual business evaluation, appropriate procedures must be put in place and effectively applied.
HOW TO RAISE FUNDS
Funds could be raised through asking friends or family members to contribute.
Secondly funds could be raised through personal earnings.
Further, funds could be raised through selling personal assets and proceeds paid into business account.
Furthermore, funds could d be raised by ploughing track profit made into the business. Merger or partnership is another way funds could be raised to help increase productivity.
Lastly, the businessman/woman has the option of loans from banks to help improve the financial base of the business. However, this option should be considered with extreme caution because interest rate could be very high.
THINGS TO AVOID
1)Avoid any unhealthy competition.
2)Avoid taking loans with higher interest rates. Separate the business account from your personal account.
3)Avoid jamming the business accounts with the personal account.
It’s therefore necessary that the businessman/woman pays him/herself the necessary salary to avoid taking money from the incomes for personal use.