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Learn the basics of running a business

Before starting your business, learn business basics here
By Leah B. Del Castillo, Jimbo Owen B. Gulle, Kendrick S. Go, Peter M. Imbong, And Mishell M. Malabaguio With Dulce Castillo-Morales |

Agriculture will never be the same with services while retail will never fall in the same category as manufacturing, but despite the differences, all business have a basic process that every entrepreneur, aspiring or new, must understand in order to succeed.

With the unexpected always bound to happen in running a business, knowing the intricacies of one’s enterprise will erase any wrinkle in the operations. Read the ten basic steps in business operations that every entrepreneur must know by heart in running his business:

 1.    Choosing Suppliers

Finding a reliable supplier is crucial when looking for raw materials or ingredients. The search may be tedious, but it becomes easier with the help of trade shows, directories, and search portals.



A supplier, according to Roger Rule, author of Book of Business Plans for Startups 2004, said that they should be consistent in their service and deliveries, and will work within the business’s parameters of cash flow and credit terms.

 

2.    Equipment and Machinery

Many startups make the mistake of securing the equipment first before giving any thought to what they are going to do with it.

“They should first determine whether they need any equipment at all,” says Francis Tolentino, who worked in a manufacturing company for more than 35 years.

One must consider whether the equipment is appropriate to your business, the degree of automation that piece of equipment could provide, its reliability, ease and cost of maintenance, service support, parts availability, and if it would merit a fair return on investment.



3.    Raw Materials

Raw materials comprise the bulk of your product costs which is why you have to make sure that you get them at the right quantity, quality, time, and price.

If you do not have any experience buying in bulk, use your projected sales volume to guide you in ordering from your supplier.

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For instance, if you have determined that market consumption of your product is 500 pieces weekly, factor in competition and the prevailing economic and political conditions, and then decide whether you would stick to that figure, or decrease production volume.


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