Sunday, December 18, 2005

business idea is key factor for succ.
every business has its set of key internal factors

Identifty key internal factors affecting successful peformance e.g.
  • sales growth rate if u have market control
  • agressive sales promotion and advertising program in this case is probably good
  • companies may have prices dictated to them by monoploy competitiors or big customers
  • key factors is cost control, efficiency of operations in this case
  • predictability of business revenues is a very important factor
  • the right question is can u forecast revenues with some accuracy for several years, it is important to avoid financial embarrassment and problems etc.
  • if ucannt do u understand volatileness of it and incorporate that into your plans

examples:

  • manufacturing : inventory turnover, prod rejection rate , plant capacity, down time of equipment
  • retail : markup %ages ,inventory management , promotional activites costs
  • serivce:control of overhead expenses , accounts receiveable management, labor expenses

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