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Business Networking For Stronger Sales

Every business depends on networking between employees and other stakeholders in the company to accomplish the goals of management. To be effective in a small business, you have to take a look at the way a corporation builds its network of clients and recruits their employees. Effective networking practices assure the highest profitability for a business. This is why human resources is such a high priority in the corporate world. A corporation draws its strength from its client base and the reputation it builds by recruiting the best and brightest employees.

If you are a small business owner, you have probably thought of expanding your business. The way to increase sales is done through either leveraging capital or human resources. To leverage capital, you would borrow money and invest it in your means of production. This might be better equipment, more employees or anything that would increase your productivity.

Most small businesses choose to leverage human resources. A good example of this is an affiliate program. The idea behind running an affiliate program is to offer other companies or individuals a monetary incentive for acting as agents to sell your products to the public.

Imagine having a small army of affiliates selling your products. The best part is that you only pay them a commission after they sell your product. You have no paid salespeople at all. Basically, you just receive the orders, process the payments and ship the goods to the customer.

This is a good example of effective networking because you have a built-in loyal workforce once you have hired your affiliates. The benefits to the merchant are increased sales, market share and product visibility.

Another popular form of networking is direct sponsorship in a Multi-Level Marketing organization. In this type of marketing plan, an individual sponsors many other people into an organization. Then he trains this group of people on how to sponsor more people into the organization themselves. This method results in a very large base of marketers working to sell products for the company. The original sponsor gets paid for his efforts by the volume of sales his team produces. The profit trickles down through the organization based on the number of people each group leader has sponsored and the sales volume achieved by each member of the group for the sales period.

Affiliate programs and MLM are not for every company. There are costs of maintenance, and a payroll to meet every month. The biggest advantage of using these programs is that a non-employee of the company makes every sale. This way the company does not have to pay the worker’s benefits and Social Security taxes. Each affiliate or network marketer is an independent taxable entity. They are not employees of the company from a legal standpoint.

Business owners must decide for themselves the best way to expand their business when it comes time to do so. It all comes down to a cost per sale analysis. Finding the best way to capitalize your business always includes market research and weighing the benefits of your available options.

If you decide to use one of the methods outlined above, it is best to discuss this move with a qualified marketing specialist. Also hire a qualified accountant for taxes and payroll purposes. You may want to talk to other business people who have successfully made this change for more information.

Small Business Starting – What Can Computerization Do for You?

In the future, we will continue to advance in computer technology. Determining your purpose is an extremely important decision, since computer systems are designed for different reasons. For instance, if you have a desk top publishing business and want to design newsletters, a vibrant color monitor would be a must. If you are interested in graphics or clip arts, you should invest in a software package that offers a variety of designs.

If you are interested in learning how to use a personal computer, it is recommended that you contact the community college in your area and enroll in their computer courses. Most community colleges offer courses that will introduce you to the personal computer and its software. These hands-on courses will introduce you to the terminology and concepts of the personal computer. In the course, you will have the opportunity to become acquainted with the keyboard as well as the software. This will help you to determine which system and software package will best fit your needs as a small business owner. Also, ask about computer courses at some of the stores that sell or rent computers. They will be happy to teach you how to use the computer for a small fee. A complete computer system can do functions such as:

1) Organize and store information such as NAME, STREET, CITY, STATE and ZIP CODES.

2) Print information quickly and accurately such as form letters, invoices, and sales reports.

Remember that computers will only do what they are programmed to do. You should not expect to get more out of a computer system more than what you put into it. When in doubt about anything in the computer field, do not hesitate to contact a computer consultant for new and updated information because computer technology is ever-changing. Now that you have selected the right computer and program let’s MARKET THE BUSINESS.

Prime Reasons Why Businesses Don’t Survive

A business requires proper strategic planning and is quite a daunting task. It all sums up to the sales and profits earned from it. Many businesses are not able to make it in the real world. The main reason being is the lack of adequate approach. There are several other reasons due to which businesses fail. Read on to find out-

Entering a competitive market – Some businesses make the mistake of entering a market with perfect competition and try to compete with the big fish. All big businesses have a strong loss bearing capacity. There when small companies try to enter such a market and incur a loss they are not able to survive and go out of business.

Compromise in quality – To save on prices and production most companies product low quality products which can not compete with the high quality products already being offered in the market.

Insufficient investment – Sometimes the capital a business starts out with seems enough but when unplanned expenses show up the capital does not seem be enough to cope with such expenses and business goes bankrupt.

Bad customer support – Customer support lays the foundation and is the integral part of any business. Having a bad customer support not only loses you a potential customer but also builds a bad reputation for the company in the market.

Wrong planning – Planning is the preview of the position the business wants to be in a specified time period. Proper planning is all about taking into account all the aspects of the market, the customers, the demand and supply, quality and prices of the products and so on. Any plan can seem excellent on paper but its real test comes when it’s put into action. A plan should be flexible to adapt to the changes in the market conditions and the consumer demand. Most plans are based on rumors and not proper research and study of the market which indeed lead to the failure of the business.

There to sum it up in a nutshell running your own business and being your own boss is not as easy as it seems. With the growing competition and advanced technology it is very difficult to venture in with the right capital and run your own business. Not only does it require time and money but also the right research, proper strategic planning, effective employees and the right mindset to make a business successful in the long run. Therefore always do the right research before you decide to put money into your new business.