The do’s and dont’s of being an entrepreneur

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An entrepreneur is a person who takes up the necessary risks and starts a business. An entrepreneur is a risk taker and a daring person. The top 100 billionaires in the world are entrepreneurs. This is people who take risks and started it low, managed their business and realized billions of profits. In the world today many people have started starting their business. In the universities and colleges, curriculum developer has started incorporating management skills in each university and college degree. The government on its sides is welcoming the entrepreneur spirit by giving incentives and favorable working conditions. What are the do’s and the don’ts of being an entrepreneur?

Have a saving plan

Saving is the amount of money that does not go to spending. Economists say saving is the amount of profit in excess of the disposable income. Disposable income is the amount of money that a normal consumer is ready to spend a month. In a business, the real progress of the business will be measured in how many assets versus liabilities have the business accumulated. A successive entrepreneur does not mix business money and personal money. The only place when the two should meet is in a saving account. A saving account can help one acquire a loan easy from the bank.

Keep business records can book of accounting

2A successive entrepreneur will keep track of the business. He will draw charts and graphs to analyze how the business is doing. This can only be done by keeping good business records. All the invoices should be recorded in a journal entry. In addition to that, an entrepreneur should run a software that will enable good bookkeeping. The books of accounting for an entrepreneur should be kept secret as he is a property of the owner. Period comparison with other businesses is very advisable.

Don’t keep your gearing rations high

Gearing ratio is the ratio of assets to debts. A business with a high gearing ratio is one that has more debts capital than equity capital. This means that the amount of money that the owner has invested in the business is less than that amount he has borrowed from other outside sources. A low gearing ratio is good and advocated by many financial analysts. It is a way of avoiding tax. This is because interest in paying a job is exempted from taxes. However, a high gearing ratio dilutes the ownership of the business. An entrepreneur should maintain a gearing ratio of about 30%.

Don’t make quick decisions

3As an entrepreneur, there are times that one needs to make decisions that can shape the life and profitability. A slight mistake in the decision can cast the whole business into a dark end. Never as an entrepreneur make a hasty decision. Always sit down compose yourself and understand the legal, operational and ethical framework that each business should take. If you are new to a sector be sure to consult an expert in the field. Before implementing a policy fast run a drill version of the policy.

The Untold Truths About Business

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If you are planning to start or grow your business, then you need to know the rules of the game. This includes getting advice from the most successful businesspeople you know. Study the brains of the most accomplished business owners, read more, take classes and know how to use the available resources to build a successful business. Here are 10 evergreen and untold truths about business. No matter what sector you are in, these truths still hold sway.

Truths about business success

1. It’s not about you, but your customers!

wef87euig8t7ggiu8So you have an amazing product or service, and you are geared up to achieve your business goals? Well, the truth is the business is not all about you. People will purchase what they want to purchase. And they want to feel that they are getting the right product or service.

2. Your smile is your greatest asset in your business

Most experts agree that an individual’s smile can affect his or her success in any professional undertaking. When you smile while serving your customers, you make them feel like they have had a great experience – even if you might not have done anything else out of the ordinary.

3. The greater the experience you offer, the more your customers will be willing to pay

It is not all about your product or service. Instead, it is the manner in which you offer it because that is what creates real value. Customers are generally willing to pay more for a more gratifying experience!

4. Your customer may not always be right, but their opinion matters

Make sure you build good relationships with your customers and take their feedback seriously. It will pay off in the long run.

5. Customers don’t buy the offering; instead, they buy positive experiences

g8yuhgtergh54In most industries, you will face competition in business. More often than not, the competitors offer similar products or services. Be sure to offer an experience that will make shopping an unforgettable experience. It is also a great opportunity to build strong relationships with your customers.

6. Don’t focus on what people want, focus on what they buy

If people love your products, well and good! But how many units do you actually end up selling? Focus on what really works with people and find products that they buy.

7. Failure is a good thing

The most accomplished people are interested in new ways of growing their businesses -complete with mistakes, missteps, setbacks and failures. Instead of sticking to the goal of getting richer, stick to your mission. Failure is good for success. You will be alright provided it is not a failure of character.