subject: Knowing The External Components In Business [print this page] Your business will have important relationships with the community, suppliers, government, and creditors, and most importantly with customers. These relationships affect both the input and output sides of productivity. Here are the lists of some external components that you must know so they can guide you in your business venture.
Your Customers. Your business will thrive or fail depending on how consumers cast or withhold their dollar votes. That is why you should devote so much attention to marketing. Give a full blast on advertising. Lets say your business is pocket folder printing, think of a strategy on how consumers can be attracted to your pocket folders. Favorable consumer response to your marketing strategy is, of course, the principal output or result you would want to have. Some questions to guide you in assessing productivity of your marketing efforts are:
Am I maintaining or improving the quality of my products and services? Like the example above, if you think consumers are not fully satisfied with the print quality of your pocket folders, then, you should improve on that.
Is the right quantity of my products or services available at the right place, at the right time?
Am I maintaining expertise and improving my technical knowledge of my product or service?
Am I constantly gathering new information about the market my business serves? Am I alert to changes in consumers needs?
Is my promotional strategy reaching potential customers with an effective message and conveying the image I want for my business?
Am I keeping track of competition and staying ahead of the game?
Do I have new products or services in development to satisfy present customers better or to tap new market segments?
Are my marketing expenditures related to specific marketing objectives?
These questions and others like them will have to be raised to guide your business towards its ultimate goal- consumer satisfaction that produces profit. Remember, your consumer is now your boss in the market you serve.
Your Community. Your business must pay its civic responsibility. This requires your active participation in local affairs and local clubs or organizations to gain community goodwill. Your business should become part of the social, as well as the commercial fabric of the community. From informal relationships with community business leaders, youll learn about changes in the local market, new business techniques, and new sources of suppliers or business services. You may even pick up hints for new products or services your business might offer. Or economical ways you havent tried before to reach potential customers.
Your Suppliers. Suppliers are a major input; but they can also affect the output side of productivity. The businesses that supply your company with operating materials, equipment or inventory can become an extension of your business. Establish and nurture good working relationships and they will become assets that supply much more than physical goods.
Your Government. Your relationships with the federal, state and local governments affect productivity too- both positively and negatively. Taxes reduce the financial results or outputs of your business. But the service of government available for small business can be major inputs in the form of capital or technical and management assistance.
Your creditors. Commercial banks or other lending institutions can help you with your working capital to enable you to purchase tangible resources. Like suppliers and some government agencies, creditors can also give sound business advice that helps achieve greater outputs.
Finally, be sure to establish the same confidential and professional relationship with your banker as you would with your accountant and attorney. All three of them will want you to be successful and can help you along the way.
