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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 |
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4.    Managing Inventory

Inventory management begins with ordering raw materials, and ends with rolling out the finished goods for delivery.

 

If raw materials purchasing makes no reference to production and distribution, serious problems like products shortage could result, putting the company’s viability in jeopardy.



Inventory management is easier for a business trading in one product than for those offering a wide range of products, for the simple reason that there would be more items to track down and control in the latter.

 

5.    Manpower

The number and the skills of the employees an entrepreneur must hire will depend on the complexity of the business operations, how labor intensive it is and the volume of products or services to render.



The entrepreneur has to set how much to pay each of his workers. After hiring the workers they have to be well oriented about the company’s policies relating their duties and responsibilities, working hours and benefits.

 

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6.    The Process

Production or the operation process itself has four main components: plant or business location, plant or workspace layout, operation system and production planning.

Some tips to observe in selecting an ideal business location are the following:

A. It is near your target market and sources of raw material;

B. There is available transportation and communication facilities, and public services such as power and water;

C. There is ample labor supply and competitive wage scale;

D. There are existing enterprises that can complement or supplement your business;

E. The taxes are moderate;

F. Absence of restricting laws and ordinances.

 

7.    Production Planning

Production planning takes into consideration the time and resources required for you to complete a project. For startups that are into manufacturing, find out your capacity by looking at your machines’ capability and operation schedule.

For retail and service companies, capacity is gauged by your efficiency in attending to customers’ needs and wants, making sure that you have put in place a system that would enable customers to avail of your products or services at any time.


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