It is interesting to know how the big boys play the game. Of course it is! Every ordinary entrepreneur I guess will be so enthusiastic to know what seems to be the secret to big corporations’ creation of wealth. Let us first see and analyze a traditional entrepreneur’s perspective of a business process:
From their CASH, a merchandising business will buy their INVENTORIES and raw materials in case of manufacturing businesses that they will assemble to create a new product. From inventory it will be sold to direct consumers for retailing business or to its distributors for a wholesaling business. These inventories are seldom bought in cash by the buyers especially for bulk purchases and so it will be your trade RECEIVABLES which will then be collected but with a provision for doubtful accounts and CASH will again be realized. So the cycle goes just like that for a typical business environment. Of course, wealth can be created from that system and has been proven in many generations. But acquiring huge wealth is for the BIG C’S proven business process. And how do big C’s do it? Let us analyze their way and see if it can be applied to yours:
This is the first step in huge wealth creation. Large companies invest in researching and developing new products that would satisfy existing needs or it is their way to create a need and come up with products to suit that need. This may mean for them going to different countries, hiring chemists, scientists, researchers to do it for them.
After deciding what product or services to offer, next is the design engineering wherein this process involves a number of steps, and parts of the process may need to be repeated many times before production of a final product can begin. After perfecting the targeted output, prototype is made which will be showcased to prospective clients or customers.
Design is now ready for production. Say for instance, a shoe manufacturing company has made a prototype of a particular shoe design and got an order for it, the production department will be advised to mass produce such order. Or some companies do mass production of necessity-items such as office supplies, garments, kitchen wares and the likes.
MARKETING
You have the product, now it is the time to make it known by the public. You may do it thru TV ads launching, newspaper ads, magazine ads, or for beginners may advertise it for free in the internet. Promotional ads such as displaying or showing off your cheapest and most attractive items to attract more buyers can be done also. This is very easy to do nowadays since social media is just a click away and you can reach even the farthest area across the globe with just one click!
You have marketed your products and distribution comes next. You may choose to do it the conventional way of three-level distribution system: from producer-wholesaler-retailer. This is the method tested by well-established businesses from various industries. Another method is by direct distribution which is usually done by some cosmetic and healthcare products. By doing direct distribution, you bypass the wholesalers and retailers. Prior to adopting the direct selling approach, be sure that you won’t need these channels of distribution because they may not be available to you later on you decide to change method. Distribution may be done in two-way wherein only the wholesalers will be alienated. It means that retailers will go directly to producers to be able to cut the costs of having middlemen. Whatever method you choose, just remember the things to be considered so you can come up with the most profitable way of distribution without suffering your business relations as well.
This is one powerful method to know the concerns of your customers after buying your product. A sale does not end after you receive payment and your customer receives the product. You must proactively serve your client even after sales. You may do this after-sales service by providing hotline numbers wherein they can call about their comments, suggestions or complaints. By so doing, the customers feel that you value them more than profiting from them.
To become big, you must think big and apply to your business what the big boys have been doing. Don’t see those as a costly process. With a creative and analytical mind, everything can be made practical and possible.
For your success,
Marygrace
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