Working on your business - finding your star product
If you are a small business owner, hats off to you!
You employ 45% of Australian workforce and contribute 35% of the gross domestic profit.
You probably work 18 hours a day and cannot take four weeks of annual leave when you like.
And in times like these, probably worry about what’s next.
I am a small business owner myself and over the past few months, I have invested a lot of my time and money understanding this space. I want to share this understanding with everyone.
Is your business doing well? If not read on. If you are doing well, leave your tips in the comments below.
It is well known that nine out of ten start-ups fail. This is a very painful statement. If you have started your new business, you need to be aware about the harsh realities which face a small business owner. How to be a part of the crowd which succeeds? How to work smarter?
The top reason for failure of start-ups, according to analysts is that they make products which no one wants.
Answer the following questions:
· List all the things you sell.
· How many do you sell of each in a day?
· Do you sell enough to make a good profit?
· Which of your products are most profitable?
As a business owner, this should be the most important question you need to answer in order to make your business profitable.
How should you track your products? If you are a café, have a few things to begin with and for a start, set up your point of sale system in such a way that you can keep a tab of what sells and you can monitor that day by day. For example, does a cappuccino does better in your area or espresso? Do your customers like Belaroma or Victoria? I am not promoting any particular system, but have you heard of products like Kounta to give you an hour by hour breakdown of your sales on your mobile app?
If you are an online seller, you cannot hit big time unless you have a CRM. Have you heard of Zoho or HubSpot which offer a suite of free tools? If you like what they do, you can upgrade your subscription. Moral of the story: Don’t waste money, time and labour on stocking and making products which don’t sell. And back your decision with hard facts. So, when something starts going wrong, you are the first one to find out and can step in to correct it before it takes your business down with it. Find your star products.
I will discuss that in my next article.
With love from
Parul & Wagga Accounting