The 4 Rudimentary Laws of Business

The laws of business need to know in order to succeed in business. It sounds trite, however, many starts building their own business without studying the rules of the game properly. We bring to the attention material that will help you figure out and understand the tenets of business more evidently are mentioned below:

1 law of business. The whole business starts with money and sales

If you are a businessman or plan to become one, you should only care about one question that where is the money? Contrary to all moral concepts, business is primarily created to make money. If you think differently and plan to open a business, for example, with an idea of how to make the world better, then you are definitely in the state structure or charitable organization. It is very interesting to hear when to the question What is the most difficult, critical in your business is the answer: Complex technologies, the structure of production, etc.

2 law of business. To sell it is necessary to sell

You can believe in your excellent goods, in yourself, in the market, but your goods will not sell themselves. In order for your customers to at least learn about the product, its quality, convenience, reliability, they must at least once lead to themselves. The most important is the first sales. It is important to understand that you need to have a process. And if you have it happening on its own, i.e. the client himself came, he saw, he guessed and made the decisions himself bought – it’s definitely not sales. This is processing incoming orders and a place to collect money, instead of a sales department.

3 law of business. A sale is a process

The process of selling to the client is even more costly: someone has to find and attract potential customers, someone to tell and sell, someone in the future has to work with this client. Sales are a process and must be moved. The process should be promoted by people, and you must control these people. Sales are like any process is technology. And any technology needs to be divided into typical processes and lead to quantities that need to be measured and tracked. Of course, there may be errors, but in general, you should clearly keep track of what you have and how much of it.

4 law of business. Measurements

To monitor all parameters, it is necessary to conduct measurements. Business without measurement to fail. The most important thing is that in all processes, whether sales or production, it is necessary to measure key indicators. Not adherence to the working schedule of coming to work, will cause you not only discontent but also a typical mess, which will lead to the law of entropy known in nature. And it says – any element that you do not measure tends to deteriorate. And vice versa: Quantitative and qualitative measurements lead to changes in the positive side. For a successful business structure, you need a stable cash flow. The flow is taken with the help of sales for Law AssignmentsAnd as we have already said sales is a standard process technology. The structure of the business you can build only when you start to measure all the standard indicators:

  • number of potential customers who visited your site, office, store;
  • the number of real customers who made a purchase;
  • percentage of cold calls closing for sale (sales funnel);
  • an average check of your customers;
  • a frequency of purchases from the same customer;
  • a rate of return on each sale and so on.