Checklist for Starting a CNC Machine Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a CNC Machine business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
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A Step by Step
Guide to Starting a Small Business
This is a
practical manual in a PDF format, that will walk you step by step through all the
essential phases of starting your CNC Machine business. The book is packed with
guides, worksheets and checklists. These strategies are
absolutely crucial to your business' success yet are simple and
easy to apply.
Copy the following link to your browser and save the file to your PC:
https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf
How to Evaluate and
Compensate Your Sales Team Performance
One of your problems as an owner-manager is how to motivate and measure the performance of each of your sales force. Your task is complicated because of the many criteria that can be used.
This chapter presents a method that is workable and effective. It discusses the development of yardsticks that will allow a sales representative's performance to be measured in numbers that are profit-orientated.
Some owner-managers find it difficult to motivate and measure the performance of sales representatives because representatives vary, customers vary, and business conditions vary. This chapter is a conversation between a consultant who specializes in sales representative incentives (C) and an owner-manager (M). As their discussion opens, the consultant is pointing out:
C: Fortunately, your competitors face the same variables you face. But tell me, why do you want to measure the performance of your sales force?
M: I heard recently that industrial sales can average as much as $175 a visit. I don't want to spend that kind of money unless it's a good investment.
Sales Force Measurement Problem
C: Here's a list that I call "Sound Criteria for Measuring Performance"
Sound Criteria For Measuring Sales Force Performance?
Which of the following are sound criteria for measuring the performance of sales representatives?
1. Volume of sales in dollars.
2. Amount of time spent in office.
3. Personal appearance: for example, clothes, hair, cleanliness, and neatness.
4. Number of calls made on existing accounts.
5. Number of new accounts opened.
6. Completeness and accuracy of sales orders.
7. Promptness in submitting reports.
8. Dollars spent in entertaining customers.
9. Extent to which the sales representative sells the company.
10. Accuracy in quoting prices and deliveries to customers.
11. Knowledge of the business.
12. Planning and routing of calls.
M: From the question mark at the end of the title I gather that not all of the 12 are sound criteria?
C: Right. First let's look at some of the common errors that owner-managers make in measuring the performance of their sales representatives.
M: I'm willing to listen.
C: You probably aren't. Usually owner-managers make one of the five following errors: They evaluate their sales representatives primarily on the basis of sales volume. They rely too much on the number of sales call made by each of their sales representatives. They compare each sales representative's present sales results with past sales for a corresponding period - for instance, May of the current year against May of last year. They expect their sales representatives to follow explicitly the selling methods that worked for them when they were selling. Or they give their sales representatives too much freedom.
M: That's interesting, but not clear. What do you mean? Would you explain each point? For example, what's wrong with evaluating my sales force in term of their sales volume?
C: Usually, sales volume by itself won't tell you how much profit or loss you're making on each sales representative. Unless you know this fact, a sales representative can cost you money without your realizing it. For example, one small manufacturer was losing money until he analyzed the profitability of the sales volume brought in by each member of the sales force. He found that one of them created a loss on almost every order. This representative was concentrating on a market that had to become so competitive that markups had to be drastically reduced to make sales.
M: Assume that I have an adequate markup on my sales. Isn't performance then largely a matter of how many calls each of my sales representatives makes to get the business?
C: Of course making calls on customers and prospects is important, but a sales representative should make calls on accounts in relation to their sales and profit potential.
M: It sounds to me as though you're questioning if sales representatives should get in the habit of making regular call on their accounts.
C: If your sales force is more responsible for servicing their accounts than selling their accounts, than a regular routine of calls may be okay. But paying sales representatives to do routine pick-up and delivery, for example, can be expensive.
M: How about comparing a sales representative's current performance with the past?
C:That can be very misleading, Some months have more working days than others. Changes in products, prices, competition, and assignments make comparisons with the past unfair, sometimes to the sales representative, sometimes to you. It's much better to measure cumulative progress - quarterly, semi-annual, or annual results - toward goals.
M: Why not evaluate a sales representative's selling methods?
C: You should if a sales representative violates company policy or doesn't accomplish goals. But why criticize a sales representative for spending too much time in the office if that brings in profitable orders by telephone or by mail?
M: I suppose owner-managers who've had sales experience themselves expect their sales representatives to use the same selling methods that worked for them - even if they don't realize it.
C: It's natural that they would. But it's often unfortunate. Market conditions change or the sales representative faces different problems. I know of one good sales representative who's basically an introvert - avoids socializing whenever possible. This rep's boss is an extrovert and can't understand this.
M: What about owner-managers without sales experience? Do they face any special problems in measuring the performance of their sales forces?
C: They surely do. They often give their sales representatives too much freedom. Their knowledge of selling is limited. Often they don't know what they should really expect from their sales representatives.
This article offers managing your business
tips and manage business advice. But you are not prepared to
start your own business
till you have given any thought to
managing it. A company is a continuous activity that does not
run itself. As the supervisor
you'll need to set goals,
decide how to achieve those goals and also make all the required
decisions. You'll have to purchase or
create your product,
price it, advertise it and sell it.
You'll have to keep
records, and determine prices. You will have to Control
inventory, make the right buying decisions and keep
prices
down. You will have to hire, train and motivate employees today
or as you grow.
Setting Business Management Goals. Good
small business management Is the key to success and good
management begins with
establishing goals. Establish goals
for yourself for the achievement of the many tasks necessary in
establishing and managing your
company successfully. Be
specific. Write down the goals in measurable terms and
conditions of performance. Break big goals down
into
sub-goals, showing exactly what you expect to attain in the next
two to three months, the next six months, another year, and
the subsequent five decades. Beside each target and sub-goal set
a particular date showing when it is to be attained.
Plan the action you need to take to achieve the goals. While the
attempt Required to reach each sub-goal should be great enough
to
challenge one, it should not be so great or unreasonable
as to dissuade you. Do not plan to achieve too many targets all
too.
Establish priorities.
Plan in advance how to
measure results so you can know exactly the way Well you are
doing. This is what's meant by"measurable"
goals. If you
can't keep score as you go along you are very likely to
eliminate motivation. Re-work your plan of action to permit
for obstacles which may stand on your way. Attempt to foresee
obstacles and plan ways to avert or minimize them.
Buying. Skillful purchasing is an important essential of
Managing a business enterprise. This is true whether you are a
wholesaler
or retailer of merchandise, a producer or a
service company proprietor. Some retailers say it is the most
significant single
element. Product that's carefully
purchased is easy to sell.
Deciding what to buy means
finding out the type, kind, quality, Brand, size, colour, style
-whatever applies to a specific
inventory - that will sell
the best. This requires close attention to salespeople, trade
journals, catalogs, and especially the
likes and dislikes of
your regular customers. Assess your earnings documents. Even the
producer should view the issue through the
eyes of clients
before determining what materials, components, and supplies to
buy.
Know your regular customers, and make a good
evaluation of this People you expect will become your clients.
Just what
socioeconomic category are they? Are they
homeowners or tenants? Are you currently looking for price,
style or quality? What's the
predominant age category?
The age of your clients can be a prime consideration in
Establishing a buying pattern. Young people purchase more
frequently than
most older people. They want more, have fewer
duties, and invest more on themselves. They're more aware of
fashion trends whether
in wearing apparel, cars or electronic
equipment. If you choose to appeal to the young trade because
they appear dominate in your
town, your buying pattern will
be completely different than when the more conservative
middle-aged customers appear to be in most.
Study trade
journals, newspaper advertisements, catalogs, window Displays of
companies similar to yours. Request advice of
salespeople
offering you product, but buy sparingly from several suppliers
rather than one, testing the water, so to speak, until
you
know what your best lines will be.
Locating suitable
merchandise sources isn't easy. You may buy Directly from
manufacturers or manufacturers, from wholesalers,
distributors or jobbers. Select the providers who sell what you
want and can provide it if you want it. (Distributors and
jobbers
are used by the majority of business people for quick
fill-ins involving factory shipments.)
You may
distribute purchases one of many providers to gain more
Favorable rates and promotional material. Or you may concentrate
your purchases one of a few providers to simplify your credit
problems. This will also allow you to become known as the vendor
of
a particular brand or line of merchandise, and to maintain
a fixed benchmark in your goods, if you're shopping for stuff
for
manufacturing purposes.
When to buy is important
if your company will have seasonal Variations in sales volume.
More inventory will be needed prior to the
seasonal upturn in
sales volume. As sales decline, less product is necessary. This
means purchases of goods for resale and
materials for
processing should vary accordingly.
At the start, how
much to buy is insecure. The best policy is To be frugal until
you've had sufficient experience to judge your
needs. On the
flip side, you can't sell product in case you don't have it.
To help solve purchasing problems, you should Start to keep
stock Control records at once. This will allow you to maintain
the
stock in equilibrium - neither too large nor too little -
with a suitable proportion and adequate range of merchandise,
sizes,
colors, styles and attributes.
Basically there
are two Kinds of stock control - control in Bucks and control in
physical units. Dollar controls reveal the amount
of money
invested in every merchandise category. Unit controllers
indicate the amount of individual items when and from whom
purchased by class. A good inventory control system is able to
help you decide everything, from whom, when, and how much to
buy.
Pricing. A lot of your success manage a business
will depend on How you price your services. If your prices are
too low, then You
Won't cover Costs; too high and you will
lose sales quantity. In both cases, you will not Make a profit.
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