BUSINESS AND SENTIMENTS

Over time, I’ve learnt that the best way to do business is without sentiments. Please learn from my mistakes.

When you want to discuss family issues, please do so with or without sentiments; – but when you want to talk about business, please do it without sentiments. Sometimes we look stingy and inconsiderate, but business will always be business – that is why it’s called commerce!

Every business owner is primarily out to make profits in return for investments and this course, you should imbibe. The survival of your business is dependent on your managerial skills – your ability to take precise decisions, your ability to manage discount rates, and your ability to differentiate between business transaction and family/ friends meetings.

The mistake most of us make is that we often want to pass an impression to our families and friends that we’re good, understanding, and considerate. We always want to prove our loyalty and humbleness, support and kindness – I’m guilty of the same mistake. And the part we seldom commit to memory in the process is that; if our businesses fails or crumbles, our families and friends will move on to patronizing other business outfits while we become objects of mockery for mismanagement. Business doesn’t work like that. Until you deal strictly on business terms and conditions with clients, your business will never outgrow the position she is today.

When I started out as a young entrepreneur, placing “price” for my service was really an uphill task. I was afraid of losing clients and not getting recommendations, so I worked almost for free. That was being unprofessional. Friends requested that I assist them, their friends and family members - I eventually did, thinking I was being a nice guy, not knowing I was frustrating my business growth and plans. This you should avoid.

As an entrepreneur or a business organization, you should know when to give discounts and when to make up for the once given. Understand the psychology of your clients. Everyone wants quality products/ services for very low prices. They don’t care if you’re making profit or not. Every customer believes you have inflated the price to make huge profit so they strive cutting it to the barest minimum. They bring in emotions and personal relationships just to break you and reshape your decisions. But business will never be successful for you if you let them win. Please take note: be considerate, especially when you know your customers are still pricing within your profit range.

The bottom line is: any amount over your cost of production/ goods bought – after other subtractions like transportation and miscellaneous, is your profit. My advice is that you should not over inflate your selling price so you don’t lose your customers to your competitors. In the same way, do not sell too cheap so your customers won’t think your products are not original.

Written by:
Paul Okuk