How to Run a Factory?

In order to run a factory there are many things that you need. The most important thing is money. Unless you are financially strong, you will not be able to run a business. There is hardly any business that has hit the jackpot on the first day. It has always been a grueling session where one had to put in labor, effort, sweat and dedication before they saw the results. When you are running a business you have to constantly think about how to make a profit and from where will you ensure that there is a continuous flow of cash? It is not possible to garner profit every single time but you have to run the show daily. How do you do that? This can be done through careful planning. You need to tie up with people who are financially strong. If you are looking after the distribution part, your partner should ensure the finance aspect. Whenever your company is making a profit, you need to set aside a certain amount in the company fund so that when the time comes you can use the money to run the business.

Next you need to concentrate on the infrastructure to run your business. Every organization needs specific infrastructure set up to run the show. Unless you have the required equipments how to ensure that production runs on time so that you are able to meet the client deadline? Some of the common items that are required involve the Denyo Generators for Sale, Solar Energy Products, and UPS Distributor. The generator is important for back up needs. With the solar energy products you can reduce the dependency on electricity. This in turn will cut down your electricity bills and the UPS distributor is important in running the show. It is very important that you buy high quality products so that you do not face any issue. There are many service providers in the market who deal in these items. You can check them out anytime. When you have a good infrastructure in place, you can be rest assured that all that is produced in your factory is of high quality. The right infrastructure brings about a lot of difference. Thus you need to be very careful about it. At the end of the day you want your business to be a successful one and for that you need to get things perfect right from the beginning.

And finally, you need to ensure that the work ambience is good. There should be decorum and balance in the office. At all times, you have to ensure that there is a proper work ambience so that your employees enjoy working with you. Putting too much pressure on them will burn them out quickly. And instead of delivering they will fizz out causing you more damage than benefit. So make sure that your office has a healthy work ambience so that your business flourishes beyond any doubt. When you implement the above factors you will notice a significant change.

Wholesale Products and the Middleman-Chain

There has been an explosion in the number of wholesale companies over the past 5 years. A great majority of this growth can be attributed to the growth of the Internet. The Internet offers the small-time operator a place to market their products without having to spend a fortune in a physical store front. The number of people that can now sell products is no longer restricted to the store owners, so we now have a huge population of Internet entrepreneurs looking for products to sell. This big demand created a very big supply of so-called companies claiming to be wholesale companies specializing in selling wholesale products to Internet entrepreneurs.Are all of these new wholesale companies really selling wholesale products? The short answer is absolutely not! Not even close… but let’s go over the longer answer so you can get an idea of what types of operations the majority of these so-called wholesale companies operate.If I was forced to make my best guess of the percentage of true wholesale companies behind all the Internet and Opportunity magazine advertisements, I’d say that maybe, just maybe, 0.5% of those companies is an actual lagitimate wholesale company. Obviously that means I think that 99.5% are not true wholesale compaines.If a majority of the wholesale companies being advertised are not true wholesale companies, then what are they and where are they getting their products? They are likely just middleman operating within a chain of middleman.A Middleman-chain occurs when a business purchases its resale products from one wholesale company, who in turn purchases the products from another wholesale company, which may also purchase the products from yet another wholesale company, and so on. Note: I am using the term ‘wholesale’ very loosely here.For example, let us say you have a resale business and you are buying products from a wholesaler, who we will call Wholesaler-A, at 20% discount. It is likely that Wholesaler-A is actually purchasing the same products from another wholesaler; let us call them Wholesaler-B. Wholesaler-B may get the products for a 40% discount and then sell them to Wholesaler-A at the 30% discount level, thus making 10% profit. There may even be another level, Wholesaler-C, which gets the products for a 50% discount and then sells them to Wholesale-B at 40% discount, making another 10% profit. See a graphical representation of this process at http://www.victorykey.com/images/middleman_chain.gif.As you can see from the diagram in the above link, there can be multiple layers of wholesalers creating a chain of middlemen that you simply cannot afford.As a result of middleman-chaining, each layer adds on its profit and you are left unable to compete because you are not buying the products at a low enough price to stay in business. If you do, by chance, get orders, each company in the chain is a point of failure in your transaction.For example, let us assume you have a source for a product which is in high demand and you are paying what you believe to be a true wholesale price, say 20% discount. You then launch an advertising campaign that pulls in a large number of orders only to find that one of your back-end suppliers somewhere up the chain cannot handle the volume. Your customers obviously want their money back (including shipping & handling) and you find that you have lost a lot of money in advertising and created a bunch of angry customers that will likely never buy from you again!One question you may be asking is why doesn’t every wholesaler just buy from the manufacture and get the deepest discount? The answer is simple – not all wholesalers (or companies claiming to be wholesalers) can afford to purchase the minimum bulk-order requirements that a manufacture requires. Secondly, many manufactures only do business with companies that are established. So now you are left to do business with a level-1 wholesaler (Wholesaler-C in above diagram), which can be very profitable if the products have demand. However, a level-1 wholesaler may also require a bulk purchase that is outside the budget of many small home business operators, and/or they simply may not want to do business with a small home business. Eventually you may find that a higher-level wholesaler (level-2, level-3, or higher) is all that is available to the home business operator, and you simply can not make any significant money at this level. Unfortunately, just about every wholesaler you see advertising in the opportunity magazines or Internet is a level-2 or higher wholesaler.Now, armed with the above knowledge of middleman-chaining, make sure you take a closer look at all those wholesale product advertisements before taking out your wallet!Sincerely,Michael Ellis

5 Tips to Launching Your Side Business

Many entrepreneurs quit their day jobs to start a side business or to make their side business their main business. Sometimes I have individuals come to me because they fear the stability of their job.

Side businesses aren’t started necessarily because someone hates their job. At the end of the day, it’s about money and stability. When either one is shaky, people tend to start a side business. Then what they find is they enjoy their dream business so much more than they do their job.

If you find yourself in either position, I want to share with you 5 Tips for launching your dream business.

1. Business Model: Figure out what you have to offer. You know that thing you do, your gift that you’re going to share with the world. But you also need to decide if it’ll be a service or a product. What information are you going to share? How do you plan to deliver it to your customers? Don’t skip this step.

2. Pricing: How much are you going to charge? Over the years, I’ve heard so many versions of charge what you’re worth or get paid for your time. I suggest when starting out you need to know the value you bring and the about of time it will take to get them the results. You can also consider what the industry is charging. Remember think value, time, and industry. Now set your prices.

3. Time: Time is a valuable resource that we can’t get back once it’s spent or used. With having a day job, it’s going to be very important that you manage your time. And that starts with knowing how much time its going to take for you to deliver the goods along with marketing, sales, and everything else that goes a long with being an entrepreneur. The time you spend commuting back and forth to work and at work you already know what that is. So you can see how much time you actually have to work on your business. A plan is important here. Schedule the time you will spend on your business.

4. Who do you serve: This one thing can make or break you and your business. I can’t tell you how difficult it was for me to select the group I would serve. For me, I didn’t want to leave anybody out. I didn’t know which group would actually pay for my services. I can tell you that once I selected who I would serve it made everything so much easier, especially marketing, writing copy, and sells. Who is your ideal client that you have the solution to their problem? I know this is difficult, but spend some time and figure this one out, fast.

5. Technology: Whether you consider yourself a techie person or not, you’re going to need to know about technology at least to the point of what you’ll need. Do your homework here to see what you’ll need to deliver your product or service. You’ll also want to consider what you’ll need for marketing, capturing new leads, etc. A word to the wise, you don’t have to spend a fortune on technology. Just get what you need and what you’ll use right now.

As you’re launching your business, make sure you spend some time in each of these areas to assure you’re setting the foundation for a solid business. Even if you’ve already launched your business, make sure the foundation is set in each of these areas. If you see a weakness in one of these areas, go back and spend some time setting that particular are up for success.