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Economic and management sciences

Grade 7

Successful management sciences

Module 6

The core principles of a successful business

The core principles of a successful business

We have approached a successful businessman to share his experience and expertise with grade 7 learners. In this module he will try to give you some expert advice so that you may become acquainted with the secrets of successful businessmen at an early age.

This module requires the following abilities:

  • to be able to analyse given statistics of a business;
  • to keep a cash-book with which to keep control of your income and expenditures;
  • to compile a cash flow statement;
  • to write out invoices; and
  • to write out receipts.

The following principles (foundations) are always necessary to be able to run a business with success:

1. Knowledge of the product you want to sell or the service you wish to render

Once you have made the decision to start your own business, it is advantageous to be familiar with the kind of product or service you wish to offer. You will have to be able to convince people that your product or service is of the best quality, and that they cannot do without it. Once the business begins to expand, it will be necessary to appoint salespeople to sell your product or service, but you will remain the person to inspire and motivate them and inform them about the advantages of the product. Only at a later stage the product or service will begin to sell itself. Also remember to be well informed of similar products or services in the market place, as it is necessary to continuously improve your product to remain competitive. If you have to decide between two motor vehicles and both are tempting propositions, it will probably be the salesman with the superior knowledge of the product that will convince you.

2. Capital

No business can operate without capital (money). The question is always where to find the capital to start one’s own business. Here knowledge of the product plays an important role! Normally a bank will be prepared to make the initial funds available to enable a person to start his or her own business. However, you will have to convince the bank that there are enough people who would be interested in your product to enable you to gradually show a profit. On the other hand banks will only grant a loan if certain securities can be presented. If things do not go according to your business plan, the bank will want to retrieve its money.

If it is not possible to present any securities, it will be necessary to acquire a partner to fulfil the function. Many successful businesses owe their success to two partners: one with the knowledge of the product or service that will sell successfully, and the other partner who has a certain financial capacity. Never allow a shortage of capital to prevent you from starting a business!

3. Focus

A business needs time to show a profit, as well as being accepted or acknowledged by the public. An enterprise may only show a profit after several years. Many entrepreneurs who had started a business, surrendered along the way because the business did not show a profit soon enough, according to them. In many cases they should have remained involved for a few more months. In other words, they desponded just before reaching the proverbial winning post. The importance of a thorough business plan must be stressed once again. The business plan indicates at what stage a business should show a profit. Should it indicate that an attractive profit would only be shown after three or four years, it would help to remain focussed on the product or the service that is being rendered. Many entrepreneurs are misled by the successes of other seemingly successful enterprises. Consequently they move from one enterprise to another, only to find after a few years that they could not make a success of either. Therefore, remain focussed on the product or the service rendered. Allow your business time to establish itself. Therefore, remain focussed sufficiently on the product of your choice!

Questions & Answers

anyone know any internet site where one can find nanotechnology papers?
Damian Reply
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
is Bucky paper clear?
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Do you know which machine is used to that process?
how to fabricate graphene ink ?
for screen printed electrodes ?
What is lattice structure?
s. Reply
of graphene you mean?
or in general
in general
Graphene has a hexagonal structure
On having this app for quite a bit time, Haven't realised there's a chat room in it.
what is biological synthesis of nanoparticles
Sanket Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
many many of nanotubes
what is the k.e before it land
what is the function of carbon nanotubes?
I'm interested in nanotube
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 7. OpenStax CNX. Sep 10, 2009 Download for free at http://cnx.org/content/col11025/1.1
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