Development of Entrepreneurship
|As a business person you need to understand:
Remember that a business will have a greater chance of success if it is based on what the customer wants
To know your customer you must:
- Talk to customers.
- See what they require.
- Find out what they buy and why.
- Look at what they are buying from other people (your competition).
- Make a list of what they want, and then see how many of those you could provide.
Hints and Tips on how to be successful:
- Make a profit – There is no use in working hard and not making money. Go over your prices and make sure that you are keeping up with costs.
- Give value for money – If you over charge your customer, they will buy from your competition. Make sure that you are more or less in line with competitor prices and that your customers feel that they are getting value for their money.
- Deliver on time – Keep your promises. People will respect you and will depend on you as a reliable supplier. Every time you let a customer down, you will lose sales.
- Build relationships – Be on friendly terms with your customers. Get to know all your customers (if possible).
- Club together – It may be a good idea for you to get together with other small businesses.
- Shop wisely – Always purchase from a reliable store and ask for value for money offering and promotional discounts.
- Buy in cash if possible – When buying in cash, always ask for a cash discount.
For additional information and bookings, please contact the Anchor Yeast Training Centre on (011) 248-8364 or click here
- The people whom we buy from are called suppliers
- The people whom we sell to are called customers
- The price we pay when we buy from suppliers is called the cost price
- The price we sell our product for, to our customers, is called the selling price
Keep a record of all your expenses and work out what it costs you to make a product. (Remember to include electricity/gas/oil/packing materials).
Customers must pay you cash for your products.
Sell your products at an affordable price.
Round off the price of your product – instead of selling for 97c sell at R1.00.
Don’t overcharge your customers – charge more or less the same as your competition.
Selling price – cost price = PROFIT
Buying large quantities of ingredients will save you money.
- Only buy products within their use-by date.
- The quality of your product must be the same all the time.
- Products must be fresh when you sell them.
- Sell you products at an affordable price.
- Always sell your products for cash and not on credit.
- Round off the price of your product – instead of selling for 97c rather sell for R1.00.
- Present your product in a neat and attractive way.
- Be friendly to your customers and make it your objective to satisfy them. Remember a happy customer will buy again!
To run a successful business you have to:
- Know where you are going (plan each day carefully)
- Get organised
- Set realistic, practical, achievable goals
Click here to grow your profit and your business with this handy cost calculator.