Business Information for Entrepreneurs by an Entrepreneur

How to Choose the Right Dealers for Your Wholesale Business

If you have just started your wholesale business, then it is essential to find the right dealers. They should not only be willing to stock your products, but also willing to sell them at a blistering pace so as to take your business to the next level.

Here are some points that you should bear in mind when choosing your dealers.

• Check Out the Dealer's History. Check out the background of the dealers whom you are planning to appoint. Their background should indicate that they have been honest and clear in their dealings.

  A dishonest dealer can spoil not only the products reputation but also your own.

• Know Your Dealers' Financial Capability. Your dealers should also have the capacity to invest in their dealerships. They should also have a backup plan, in case the time that it takes for the business to pick up turns out to be longer than their original estimate.

  You could also ask for a security deposit, so that your money isn't stuck in limbo if they falter in their payments.

• Make sure your dealers are committed. Your dealers should be committed - and motivated! — to sell your products. Offer them decent profit margins and incentives to keep them interested in achieving that extra reward.

  Your dealers should also have a preference to sell your products over any other others, especially similar ones.

• Make sure you have an exit policy. In case your business relationship doesn't work out with a particular dealer for any reason, formulate an exit policy so that you can part ways amicably with the least financial damage.

Follow the above points before and after choosing your dealers. If you do, then the whole process - from manufacturing to distributing to retailing — will operate like a well-oiled machine.

How to Retain Your Key Employees During Bad Times

During good times, it is quite easy to retain your key employees - and regular tweaking up their salaries could just be enough to encourage them to stick with you.

But it is during bad times that you will need to be more innovative if you want to retain your best employees.

Here are some ways that you can retain your key staff during trying times.

Explain the Situation

You should communicate clearly with your employees and explain the situation to them - without putting them in a state of panic.

It pays to have a clear business plan, so that your employees have the confidence that you know what is required to lead the business ahead during tough times.

Show Flexibility

If you need your employees to work overtime, then you could give them some days off during holiday season in exchange. You should be willing to make some sacrifices if your employees agree to make some in return.

During the lean times, you'll need to use ideas like these to get the best out of your key employees.

Encourage Your Key Staff to Learn New Skills

If times are lean and your employees are sitting idle, then you can train them in new skills so that they can be ready in the future.

Keeping them occupied and learning will keep them interested, update their skills and also stop their minds from wandering.

Praise Them

If you cannot give your employees a reward for jobs well executed, then you can at least praise them. If this is the case for you, then make sure that you promise to reward them when your business improves.

If your employees trust you and are loyal to the business, then they will stay on in the hope that you will stick by your word.

When times get tough, it pays to use ingenious ideas to retain your key staff - and if everyone puts in some extra effort, then the bad times will soon pass.

5 Reasons Why People Refuse To Accept Change

As time moves on, it is imperative that you make some changes. This is especially true in the business world. Sadly, many people do not welcome change and insist on continuing as they are, even when it is apparent that change is sorely needed.

1. Fear. Most people are happy in the situation that they are in. In fact, they often presume that making a change could turn out to be worse than they had been expecting.

This is basically fear of the unknown. When not conquered, it keeps people stuck in low paying jobs or a running a small business that might not be doing very well.

2. Assumptions. People assume many negative things when they think about making a change. They think that they might not be able to settle down in a new office, might not be able to get along with new employees, or might not get enough business in a new location.

If you have done your research well, then there is no reason to assume anything negative. Assume the best until and unless you are shown otherwise.

3. Time. Many small business owners are willing to accept change - but might think that the time is not yet right for the step.

Unfortunately, this is a symptom of procrastination. In its most pervasive form, it results in nothing getting done.

4. Trust. As a small business owner, you might not be ready to trust anyone who is advising them to change.

The point is — if a suggestion is made by someone, consider the source. It they are a credible professional, colleague or family member, you would do well to at least consider their advice.

5. History. Entrepreneurs not wanting to change might cite examples from the past to prove their point.

They might point to previous ideas that have not succeeded, and convince themselves that history will repeat itself if they go ahead with the change.

Refusal to accept change is a small business owner's worst enemy. Change is a part of life — you can either accept it, or watch as your business slowly fades into the irrelevancy.