10 Effective Tips To Keep Your Business Flying High

If this is your first time venturing into business, it is most times advisable that you start small first, so you can acquire experience. Do not jump ahead into making very big investments. This is because you are still learning.

1.  Stay updated in your line of business
Let's say for example that you sell computers online. In which case, you should keep yourself updated about the latest in the world of computers. 

You should know the latest Operating Systems like Windows 10, Mac OS, Ubuntu LINUX...etc. You should know the latest hardware products, the latest software products, and such. But more than anything else, you should know which products are trending the most – those that people want the most. 

This way, you will be able to update your line of products and make sure that you always offer the latest in the market. You will not be left out.

2. Offer obsolete products at a discount
Another way to dispose obsolete products and products that do not sell is to offer them at a discount. 

If a product is really terrible, you can sell it at a big discount (50% off or 70% off). It does not matter if you will no longer be able to profit from those items. 

What is important at this point is to get back a portion if not all of the investment you made on those failed products. When you see shops offering big discounts up to 80% off, it is likely because they are trying to dispose obsolete merchandise. 

This is a method that has been in use by businesses for a long time already.

3. Include obsolete products in ‘package deals’
Let us take again the example of the camera and the memory cards that won’t get sold. One solution is to offer the two products in bundle. So to say, you are including a memory card in the package of the camera.  

Of course, you would have to add up the price (ex. Camera price is $100 and the memory card is 20% so the price of the bundle is $120). This way, customers that want to buy your camera will have no choice but to also pay for the memory card. 

But this is a risky take. You have to make sure that your customers want the main product badly enough so as to be willing to pay for the bundled secondary item as well. However, good entrepreneurs can make the bundle less noticeable.

4. Include contingency for losses when pricing items
An entrepreneur always assumes that a portion of his/her products will not get sold due to a number of factors (ex. Factory defect, damage from nature, seasonal items, etc.). So when pricing your item, you should include a contingency for losses. 

So if you originally planned to sell your product at $120 for example, maybe you should sell it at $121 or $122 dollars instead. The additional $1 or $2 dollars is for the possible losses. Of course, this step is not necessary to products that proved to be a ‘sold out’ all the time.

Applying this concept is especially useful when introducing a new product. This is because you still cannot say for sure if the new product will sell or not.

5. Do what you can on your own

As an entrepreneur, you will definitely hire people to run your business. But if you can conveniently do some of the tasks, maybe you should shoulder those tasks yourself. This will save you salary costs. 

For example, if you think that paying for a manager is too costly for you at the moment, you can simply take up the responsibility yourself. And some time in the future when your business becomes more profitable, maybe you can already hire a manager to take the task off your shoulders. Until then, you should do what you can on your own.

6. Outsource tasks instead of hiring new employees

Some tasks are seasonal (done only occasionally). Examples include website maintenance graphics design for webpages, article writing, etc. 

For such tasks, it is best to just outsource the task. This way, you can avoid additional costs that come with hiring new employees (bonuses, 13th month pay, government contributions, tax, etc.).

7.  Offer obsolete products as freebies

Despite precautions, you will still experience some failures. For example, you might have ended up ordering a batch of items that did not get sold. So what do you do? You can use these unsold merchandise to fuel your promotional activities. 

Why not offer those unsold items for free? Customers love freebies and they dig it. You can also offer unsold items as a Buy 1 Take 1 item for some of your products (ex. You are a seller of cameras. However, there is batch of tripods you ordered that is not selling.

Therefore, you decided to offer the tripods as a Buy 1 Take 1 item for your cameras).

8. Always be aware of changes that will affect your business
External changes will sometimes have an effect on businesses. This is especially true concerning economic changes. For instance, the recent economic problem faced by the US caused many businesses to suffer. 

Also, the decree in the Philippines that banned the use of plastic bags caused bankruptcy on many businesses that deal with plastic products. Always be aware of such changes. It is better if you learn about them even before they occur. This way, you will be able to make necessary steps to lessen the effects on your business. 

Of course, you also have to keep your eyes open for changes that will open new opportunities for your business.

9. Keep watch of your competitors

Always keep an eye on the activities of your competitors. Check out the promotional activities that they are doing. Check out their growth. Also, check out their prices. 

Then ask questions. Do I still have the edge to compete with them? What can I do to top their performance? What changes should I do to keep my place in the market?

10. Protect your business secrets

Let us say for example that your prices are lower than the prices of your competitors. This is your competitive edge. You managed to offer lower prices because you found a supplier that offers very low prices. But what do you think will happen if your competitors learn about your supplier? 

If they manage to get your supplier, they will also be able to lower their prices. It is these kinds of business secrets that you must protect no matter what. Also, make sure that your employees are sworn to the same degree of secrecy. Have a wonderful day.