How to Make Your Business Great

Building a business is a serious task. You will be investing much of your money into it initially, and during its process of growth. To be sure that your investment is wise, and one which can be realized, you need to ensure that your business practices, are best practices for your company.

Partnering with the right purveyors and selling to the right purchasers, are key components for a successful business strategy. You need to be sure that you can count a supplier to provide a quality product every time, which will arrive on time. Also, you need to be sure that you will be able to sell the products you purchased, to buyers who will be able to buy from you, on a set schedule. Otherwise, you will have to store the goods, which could take up space beyond your storage capacity. This idea, of receiving and distributing products without the need for storage, is known as a Just in Time production strategy.

To facilitate a constant flow of purchases and sales of products, without storing items; one will need to be sure that one’s purchasers have a steady flow of revenue, to make regular purchases. Supplying products that do not need to be stored in a warehouse is known as Just In Time delivery. To maintain this type of business system one will need to be kept informed of the regularity of a buyer’s sales and inventory requirements.

A clear and consistent communications process will need to be developed, and adhered to, for this system to operate effectively. Also, for one to know the purchasing power of one’s buyers, one should know the financial status of one’s buyer, including credit options, to which they have access. A direct and transparent communications process, of this type, will require trust and confidentiality.

Likewise, to be able to properly service the requirements of one’s purchasers, one should be knowledgeable about the production capacity of one’s suppliers. Knowing the organizational setup of one’s suppliers; such as human resources practices and union affiliations, is useful information. This data ensures that one will generally know the stability of product supply, and be fully able to predict any stoppage of product supply.

Staying ahead of the curve, by being well-informed is crucial to putting one’s best business face-forward. Even if there are some delays in production and / or supply, as long as one is sure to communicate any issues far in advance, one will be seen as professional. Being professional goes a long way in demonstrating one’s readiness for business relationships and partnerships.

 

Originally posted 2013-05-27 17:16:00.

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