SomeInfos Header

The four P's of a good business

Show the picture of the chair with 4 legs. Explain that a business contains four elements: - Product: choose a product that people want and need and make sure it is good quality; - Place: decide on a place where there will be many customers and few other sellers with the same product; - Price: set a price that covers your costs, gives you profit and which customers are prepared to pay; - Promotion: attract customers to buy the product. Each leg of the chair represents a P. If one leg is broken, you will no longer be able to sit on the chair. The four P's always go together. If no attention is paid to one of the four P's, the business will fall apart. Take time to explain the four P's.

To make your business successful you have to consider the following questions:

1. Product − What is your product? Is it what the people in your village need and will buy? − Is somebody else already selling a similar product? Will people still be interested in your product? What makes your product different from others? − What is the quality that the people expect from your product?

2. Place - Will there be many people at the place you want to sell your product? - Where will you buy everything you need?

3. Price − How much does it cost to produce your product? − For what price are other people selling the same product? − What price do you have to set to make a profit?

4. Promotion − Do you have a friendly approach to your customers? − Is your product of good quality? − Do you always have your products available and do you finish your orders in time? − How can you make the place where you sell your product look clean and attractive? − Is it possible to advertise your business in the papers or on the radio?

 What are the characteristics of a good sales person?

A good sales person should: - be friendly and helpful, - be polite and understanding, - be clean and neat, - make sure that the product is always available and of good quality. It is not only the product that makes a person to return and buy more. The customer also comes back because he/she is pleased with the service.

"Satisfied customers will return to buy more and will tell others about the business. Remember, it is the customer who matters most."

 What do you have to find out before starting a business?

− Choose a business that suits your ability and experience; − Find out whether it is profitable by observing people who are already in the business and by finding out about the costs of production and the selling price; − Make a calculation of all the costs involved, and the profit you will make; − Find out all the details involved to make this business successful, by considering the four P's; − Calculate how much you will have to invest in setting up the business (constructions, materials, tools); − Find out where you will get the money from (savings, loan, gift).

DISCLAIMER
1 visitors online
SomeInfos Header
SomeInfos Header
Developed by Opti-Web