Men's Articles

Family Firms Survival Tips


It can be a risky business inheriting the family firm. Here are four flashpoints that can affect a family fortunes.

Single-Focus Risk

If all your wealth is concentrated in a single business, you run the risk of losing more if it does not do well. The solution is to diversify over different companies and industries.

Loans

If you business borrowings balloon and you can't pay them back when good times turn bad, everything can be wiped out. The solution is don't borrow too much, even when things look rosy.

Family Dynamics

Disputes in the family are a wealth-destroyer. You may end up in court, and the wealth split up. The solution is through proper family governance. Educate your second and third generation with the right values.

Overspending

If more goes out than comes in, you can fritter away a fortune, The solution is through prudent spending within your means.

Marking Basic For The Small Business

It's useful for any business owner - even one running a small business - to have a basic grasp of marketing knowledge. Owners of small businesses often have the notion that success stems from charging reasonable" prices, working hard and selling "enough" of their products/services.

Realistically, this just isn't so. The majority of small business owners have a limited marketing budget. In this case, creating a sound marketing programme is the most effective way to maximise operating expenses and beat the competition.

Running A Profitable Business

The essence of marketing !s to understand your customers' needs, keep in mind the importance of target marketing and focus your marketing efforts on reaching the correct target groups in the most productive and cost-effective way. The key to profitability is to increase your sales revenue and profit by:

  • Acquiring more customers.
  • Persuading each customer to buy more products.
  • Persuading each customer to buy more expensive products, or by upselling each customer.
  • Persuading each customer to buy products that yield higher profit margins.
 

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