Business Information for Entrepreneurs by an Entrepreneur

Negotiation is as much an art as it is a skill. Sadly, not many business owners have learned how to negotiate on their to-do list. Luckily for you, I learned the hard way so you don't have to!

Tips for Successful Business Negotiation

• Always be prepared to negotiate and do not hesitate to talk about any money involved. Money is seldom an easy topic to discuss, but when it comes to your own business, you should be alert and willing to discuss it without hesitation, as the survival of your business will hinge on it.
• Always take complete control of the discussion. Maintain a positive stance in negotiations and avoid getting involved emotionally. Negotiation is possible only when both the parties concerned see something beneficial for themselves in the deal. Any display of strong emotions may have a negative impact on the other party, forcing them to concentrate on only getting what they want.
• Be careful not to let the other party trick you into accepting certain terms of a contract, on the existence of some unchangeable rule. Make sure that the contract allows equal rights to both parties for the modification of the terms.
• Finally, never be the first one to suggest a figure. The crux of intelligent business negotiation is to let the figure be suggested by the other party. Then you can suggest one that works for you and continue negotiating.

Handling business negotiations intelligently is very important to help sustain and successfully maintain your small business.

Importance of Inventory

As a small business owner, the most important tool that you can use to keep track of your business assets and property is inventory. In the absence of a proper inventory, you would have no record of equipment that is lost or broken. The data required for the determination of business strategies would also remain incomplete and inaccurate.

Precision and accuracy are of paramount importance in maintaining an inventory. Any negligence could result in wrong decisions and a loss to your business. To keep the inventory accurate, you need to implement a proper inventory system. I know, I know…taking inventory seems tedious and boring, and you have better things to do! But, simple and organized inventory keeping is not very hard.

Inventory Tips

All documents should be properly filed — In order to keep track of the earnings and expenditure of your business, receipts of transactions and cash disbursal sheets are very important. All transactions should be complete with valid receipts. The receipts should be filed methodically, to provide reliable evidence of transactions. The receipts help to access comprehensive details about assets, with recorded purchase dates and names of the suppliers.

Label equipment for identification- Label all the equipment, using a brand or sign that is unique to your organization. Number each piece for identification, so that repetition can be avoided in recording the details in the inventory.

Update the inventory regularly- Once a proper inventory is prepared, it should be updated regularly or else the data provided would be wrong if new equipment and damages are not accurately accounted for.

Appoint someone in charge of maintaining the inventory- you should ideally appoint someone to take responsibility for maintaining the inventory.

By keeping good records where your inventory is concerned, you can reduce waste and save lots of money for your business.

Other Resources: Inventory control is vital to retail success. If you're a small retailer you need an easy to use inventory control system. Try MerchantOS: www.merchantos.com

As a former salesperson, I can attest to the fact that hearing the word no (an objection) used to get me all worked up. If you're new to business, you may feel that this little word could be a major setback to your sales — it can even feel intimidating or threatening! But this is just one way of looking at it. A little change in your attitude (like I did) can help you view objections in a new light!

An objection can be regarded as a positive feedback, and a chance to improve your product or service. While one part of your mind may say, “we're doomed”, another could say, hmmm...so how do we rectify the problem?”

Besides, customers may disguise their inquiries and apprehensions about the product or service in the form of objections. If that were the case, it would be best to listen to exactly what your customer has to say, and fix whatever needs to be fixed. This is a two-step procedure:

1. Figure out the Objection

First, the actual reason behind the objection has to be determined. Cross-examine the objection by asking questions like what factors were taken into account, what the reasons for objecting are, and what expectations are to be fulfilled. However, keep in mind that sometimes people may also feign objections. Once the validity of the objection is confirmed, you can start working on it.

Resolve the Objection

Now that you have the objection in sight, start working out solutions to resolve it. Think of methods that are effective and innovative. Work diligently on the problem and find out how to solve it creatively .

The key is to not think of an objection as a 'no'. What it really is, is the first step to your customer saying 'Yes!'