by Mushroom

Created on: December 10, 2008

Knowing what you are doing in business is as important as getting a return for your money, but what ever money you do invest your first priority is to get your money back. Forget about making a profit because most businesses don't make a profit in their first year of trading. When starting your business why invest in new equipment when second hand tools can be purchased at a boot fair for a faction of the price ? Likewise why buy materials with popular brand names because they have the highest price tags ? By keeping your material cost as low as possible, but maintaining a high standard of workmanship this will give you the cutting edge when clinching a deal. In a highly competitive market place your price will determine the success of your business. Work is the name of the game and at the end of the day you either have work or you don't. How do you know what price to charge your customers ? If you have put prices in for work that you have not clinched your price is too high. Until you can establish your business with regular customers and recommendation work you may rely on advertising with a local newspaper. Advertising is very expensive and a very risky business with no guarantee that you will get a return for your money. It's a mistake to think that the more money you invest on advertising the greater the chance of your company getting work. However give-away newspapers with the largest circulations are a reasonable bet, and your advert will be cheaper to publish with them too. You may also get a discount for advertising with a newspaper a month in advance. The idea of advertising for work is that you are also advertising the name of you company, so think carefully about the name you choose for your company. A well thought-out company name will eye catching and easy to remember. Likewise business cards are easy to put in your pocket and easy to hand around. An answering phone is a poor mans secretary, but it has a voice and a pair of ears so therefore it's a good investment in your company. A common saying in the decorating business is that you can't make a purse out of a sow's ear. There is however a difference between doing a bodge job and professional technique, hence knowing what you are doing is the key to getting good results. Time is money so therefore you must know within reason when the job will be completed, and theoretically it's on that basis you will make money.

Learn more about this author, Mushroom.
Click here to send this author comments or questions.