What can an individual who lives on a small salary
do to invest
and augment his income somehow? Here are some tips to follow:
1. Invest in something close to your heart
Whether it is in music or cooking, investing in a
small venture will have a greater chance of surviving and even achieving
reasonable success if it involves doing something close to your heart or within
your experience as a person or as a worker. If you work as a waiter, why not
learn as much as you can about some way of improving a recipe or a drink and
come up with your own sideline you, or with a partner, can run during weekends
or after work?
We hear this advice often and yet not many take it
to heart or are brave enough to actually do it. Many feel it takes too much
effort and money to start a business. This is not true, in general. Making a
single unique jacket or fashion accessory and selling it can be the one step
you need to encourage yourself to make more. Even a used item such as a broken
sofa, if repaired and furbished to look attractive might bring you some income
you never thought you could have from what you already have.
Oftentimes, all it takes is a lot of imagination and
a dose of courage to jump right ahead on a new venture you never tried before.
2. Learn the basic math
Any business, small or big, will depend largely on
good and proper basic accounting. Learning the fundamental methods of
bookkeeping will go a long way to controlling the flow of resources and
understanding the nature of your business
finance. We all knew about the Chinese who, for many centuries, used the
abacus to make sure they got the entire math figured out. With the calculator
or the PC today, the job has become even easier and more efficient as we can
keep records as well of our transactions.
Still, there are other tricks we can avail of to
make the task easy and more enjoyable. Finger-Math can be a tool one can learn
and use during those hectic moments when technology Is not around to your aid.
Mental math is a trick we can also develop to enhance our acuity in this area.
Whatever suits your personality and style, make sure the math is a primary
focus in your business. Remember, math is but a tool to make your work easier;
but loving the work can make a lot of difference in how you conduct the
business.
3. Know you product
Knowing your product is as important as how much you
price it eventually. You may have a good round figure for your product’s price;
but if you have not truly known your product (what it directly provides, what
value it adds to its user, how it can be enhanced beyond its basic use), you
will not fathom its true worth for you and for your customer.
Knowing your product goes beyond appreciating its
innate value. Peanut butter is not just for making bread taste better or eating
by itself. It can also be used for adding flavour to other recipes or with other
food (try it with banana). And unless you tell people it can be used as so,
they will never discover its other uses. Advertising or showing it in your
packaging can be the step you need to do to enhance your product’s value and
appeal as well as its price.
4. Know your customers
Not all people will want to buy your product or
service. How to change their mind is the challenge you must never give up on.
Changing your approach may allow you to capture certain customers you know
patronize other brands. Price reduction, although it is not always the best
thing to do or other come-ons, such as giveaways or freebies, may help promote
your product in certain market locations you wish to capture.
Talking to people and being sensitive to their needs
will help you get a clearer picture of your prospective customers.
5. Know your competitors
Knowing your customers will teach you how to
appreciate and know your competitors indirectly as well. If you feel your
product is better than your competitors and yet you cannot break into the
bigger share of the market , then there must be something wrong with your
product or your marketing approach.
Companies who have been in the business for many
years have a lot to teach you how to go about your own venture. Get as much
information from them directly through visiting their stores and factories or
indirectly through reading books, magazines and websites.
6. No matter how many competitors you have,
you can still join in if you are unique
Unless every corner in your area has a small variety
store, you can still put up your own as long as you provide a unique feature in
your business. Delivering your product while others wait for buyers can be your
advantage in these busy times. Or, you can have orders picked up at certain
times to encourage people to buy fresh vegetables, fruits or meat, for
instance. The trick is to make your customers feel special and given a personal
touch. Adding something nobody else provides may be the advantage you need to
keep the competitors behind.
7. Find out what works for you and your
product
Eventually, you will have to experiment and make a
lot of mistakes as to how you can improve your product, your price and your
style of operation. But things will change as economic and social realities
also change ad adapting creatively will allow you to stay afloat. Being
prepared for such eventualities ahead of others will help you reduce risks and
manage your business well.
In the end, running a business may take more and
more of your time and may lead you to give up your day-job. If you feel the
time is right, then go ahead. Most business-people started that way. Make up
your mind at the very start that the option is always present. It is just a
matter of time when you will take the brave jump.
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