Going into business no matter the scale of the business requires a lot of planning and determination. Part of the plans which every entrepreneur should make before starting out involve the use of resources; particularly men and materials. Since these resources are always very scarce, it takes efficient management to use them well for the overall benefit of the business. It takes skills, real business skills to manage scarce resources efficiently. Any entrepreneur who is unable to manage the resources available to her business efficiently very soon finds herself out of business. Here are some 5 reasons why new entrepreneurs should be efficient.
01. When business funds are very limited. Many aspects of a business always compete for the available funds which in many cases are very limited. A good entrepreneur usually does everything to avoid wasting project funds. It takes efficient use of scarce funds to check leakages arising from misapplication of resources.
02. When business systems are not fully developed. Particularly at the outset, it is usual that the business systems are not yet properly developed. These systems usually develop along with the growth of the business in a very gradual process. It takes efficient use of limited systems to keep a business on track and to meet set targets.
03. When product markets are not fully developed. No business stays a business for very long if it is unable to sell its products. At the beginning, because the product is new to the market, it may meet some sales difficulties. The business can progress as planned if the entrepreneur finds a way to sell the product at reduced costs. It takes efficient use of resources to sell a product in a market which is not yet fully developed.
04. When customer base is very small. It takes efficient use of resources to keep costs low and sales high when servicing few customers. Every business no matter how big it may look today was at one time a small business confronted with the general problems all small businesses usually face. Growing your customer base and servicing these customers effectively requires efficient use of time and resources.
05. When employees are very few. Many small businesses are at times confronted with very few hands to run their operations. Not many have the resources to hire more hands particularly when the business is still in its infancy. It takes efficient use of the few hands in place to get the business going as planned.
Every business no matter its size is always confronted with problems of use of resources. Many of these problems usually emanate from the dearth of these resources. Since every entrepreneur is always desirous to stay in business, it takes efficient use of these scarce resources to do so. Many smart entrepreneurs learn early enough to use the resources available to them in a very efficient way. That is what keeps them in profitable business. Remaining relevant and being known by the business you do is always an ideal dream for new entrepreneurs. How efficient you are, is one sure step to that ideal.
Sule Yesufu, a Certified Speaking Professional, has been a Strategic Partner in S D Y Management Consult, a firm of Investment, Small Business and Entrepreneurial Consultants since 1999. He is a Published Author and a Newspaper Columnist. An expert in Small Business and Personal Development, he focuses on communicating his ideas and thoughts mostly through his Training Seminars and popular free blog. He offers useful tips on Self-Improvement, Personal Finance, Entrepreneurship, Current News, Politics and Business in Nigeria, the most populous and vibrant country in Africa. To learn more about Sule and to contact him for consultations and private inquiries, visit his website at http://www.sdymanagers.com
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