how does new business start up
... related information and knowledge including the product knowledge, market knowledge. Depending on their charterister of unremitting, four months later, they made their first contact at the amount of 12,000. “Thought it is just a small amount of sale, it means our good start; I believe we have bright future” Li said smiley. With time being, their business had become more and more reputable among their customers in chemistry industry in Beijing . Their sales had increased gradually year by year as well. However, silence is not always gold. With the business development, Li and his partner sometimes had some conflicts in managing business. “In my mind, no conflict, no development is my thought though I found we had some conflict sometimes” Li said. Everything seemed fine. Until one day when his partner went for business travel, what a coincidence, he was urgently in need of company significance files, when he opened safe box found that actually his share of company was only account for 2%. “At that time, I was shocked by the fact that I was cheat by my best friend, I always though we could share our profit equally.” Li said. As the matter of fact, at the end of 2002, Li left the company. “As a man, I should take back what I should earn.” Li said. At the early of 2003, Li started planed his new company. Many factors Li took into consideration. To begin with, he though of the product, he analsized all sort of products in the market and found that E&H had good quality but its sales was constantly low since its after- sales service was not satisfied with customers. Founding the market opportunity, he decided to represent E&H in chemistry market in Beijing. Without doubt, according to his previous experience, when he talked to the general manager in Beijing that he was willing to represent E&H in chemistry market in Beijing, the manager accepted his request frankly and immediately. Beside the product, Li considered the money as well. Because of unfair treatment in previous company, he did not earn sufficient money for starting up new company. However a friend in need is a friend in deed. His parent and few his friends borrowed money to him without he speaked out the problem. For return back, how much he borrowed he paid doubt interest rate than normal rate in bank. “I know the interest is just a trifle to them, but I would like to let them know that they make a right decision, I will be hard-working and persistence to prove I am the best.” Li said. After solving the two main problems and plus his deep understanding of chemistry market, he started doing his business immediately and created a sale volume of 3,200,000 at the first year. To sum up, in 2003, he is 31, has his own business and has a good start for business. Factors for success There are many factors that have contributed to his success as follows” Being a Better Boss Li create trust and loyalty by consistently showing his employees that he cares about them and the work they do. Li encourage interaction by giving his employees the chance to share their talents with other employee and celebrate victories. For example, Li will bring in cake and soft drinks to reward outstanding performances when achieving small goals every few weeks or months. Improving Relationships On the one hand, be open, courteous and firm with your suppliers, tell them what you need and when you need it. Have a specific understanding about the total cost, and expect delivery on schedule. Keep in constant communication with your suppliers about possible delays, potential substitutions for materials and product lines, production quality, product improvements or new product introductions and potential savings. On the other hand, In order to maintain good relationships with your customers, LI Becomes a good business acquaintance, he know what his customer need and when whey need it. Have a specific understanding about the project budget, technique requirement, delivery day and price quotation. Keep in touch with his customers about installment requirement, possible delays. Advantages being an entrepreneur In term of LI ‘s story, , there are many advantages to being an independent business owner. Some of the most common advantages are: ü you can set your own hours - although you must bear in mind that you will get out of your business what you put into it. ü Invest profits back into your business - it is very foolish to let profit sit on the books when you could be updating your computers, employee training. Reinvesting back into the business will keep you on a level playing field with your competitors. ü Perks - there are a certain amount of perks you can allow yourself as a business owner, if the business can afford to provide them financially. Company vehicles are one which many business owners allow themselves and are completely legitimate as long as the vehicle is being used for company business. You can also use the vehicle for personal use as long as you keep those expenses separate from business expenses. Bonuses are another perk. Business owners are allowed to share in their company's profits with financial bonuses. Another perk might be continuing your education and having your business pay your tuition Always stay up to date on the most recent trends in the business world and one way of accomplishing that would be to send yourself back to school for business management, computer training or and other area that can help you and your business grow. ü Opportunity for greater rewards - as long as you are willing to work hard and...