Supplies management

Economic crisis is not the cause of business collapse

Many businesses today have been brought down not only by the global recession but also by mismanagement. It is not in order to assume that the global economic crisis should only be working against your business. Many managers who are failing today are blaming the bad economic conditions for their poor performance. A good business manager should be able to look for effective ways of handling a bad situation and getting the best out of it.

One of the most deceiving business ideas is that by putting your eggs indifferent baskets, you are going to be successful. Most of the managerial trainings include what is commonly called ‘portfolio management’. This theory supports the idea of investment diversification. This is why managers think that during bad financial moments for the business, they need to diversify their investments in order to reduce the risk of losses. This may not be a solution if the management style is wrong. A poor manager will still fail even in a diversified portfolio.

Many are left wondering about what they should do if diversification is not working. The truth is that diversification should only be left for those who are not sure of making it in one line. Instead of diversifying your investments, you should be thinking of specialization.

You should be looking for the best business strategies that can make you a king in your line of operation. Unfortunately, many business managers view success as only retaining some profits for the business. Very few people are endeavoring to be the most outstanding businessmen.

Friday, July 31, 2009

Supplies management

If you get cheap products from your suppliers, you are likely to make more profit. This does not mean that you sacrifice quality for cheap products. What you must understand is that you can continue providing quality services to your customers while at the same time acquiring them at a better price from your suppliers.

The key in cutting down costs from supplies, is knowing where you can get them in more quantities at the same price you get them at. A good businessman/woman should know all the suppliers in the neighborhood and strive to develop a relationship with them. From this group of suppliers, you can now identify the best one for a long term relationship.

However, the best places for bargains are from the manufacturers themselves. Even the suppliers in our neighborhoods get their goods from such manufacturers, after which they charge a fee as their profits. This goes without saying that if you get direct supplies from the manufacturers, you have more income as profits.

It is important that as you stock your business, avoiding going overboard by buying in very large quantities. Some people do this thinking that they will save a lot on the costs that go with reordering. Make sure that what you stock will be sold within the expiry period. This means that you must take time to do a quick inventory of what you business needs; do not be in a haste to order even what may be unnecessary at the moment.