IT is always important for any one, especially those planning to start their own business to understand that the ultimate reason for starting a business venture is to make profits.
Profit making for any business is the reason for its existence and it is, therefore, impossible for a business to run freely if it is not run on this concept.
This is so because the business owners will not get any reward from running such businesses which do not record profits, for profits are the rewards for business owners.
Today I have decided to look at some of the basic business foundations on which any business is founded.
In this case, I particularly look at small business in which most business decisions are left in the hands of business owners, who in this case are involved in the day-to-day running of such businesses.
I should mention here that most small businesses in the country lack structures that are founded on well-established organisations, which are manned by professionals guided by appropriate regulations.
In my observation of small businesses, I have witnessed the collapse of some of them because of non-adherence to some of the principles I will outline in this article.
For example, one business closed not because it had no potential to grow, but because the business owner became dishonest to his business.
It is always important that basic business principles are taken into serious consideration by those planning to go into business and make them part of their foundation.
Some of the basic business principles that should help small business owners to run businesses on good foundations are as follows:
a) Honesty: Business dealings must be in the picture frame of honesty.
This is so because dishonest dealings in a business may scare away both customers and suppliers and brings discontent among workers.
For example the business owners can be considered dishonest when they deliberately fail to pay suppliers or salaries not because they have no money, but because they chose to use money for other things not related to business.
b) Financial Discipline: Business financial procedures on money usage must be followed to ensure that money is strictly applied to business operations.
Financial indiscipline in a business set up distorts business operations and hampers its growth.
c) Punctuality: Timekeeping in running a business is important.
Entrepreneurs must inculcate in their minds timekeeping procedures.
Reporting for work, keeping appointments, supervision of employees, and schedule of meetings must be strictly observed.
d) Hardworking: Entrepreneurs should inculcate the sense of hard work in their business procedures by way of strategic planning.
An entrepreneur must ensure that he or she plans, and those plans must be put into action in line with the vision of the business.
The business owner carries the business vision and, therefore, he or she is the team leader. This leadership must be translated into vigorous hard work.
e) Availability: Another business principle that ought to be embraced by entrepreneurs is availability. To be available is to ensure that business procedures are properly coordinated by business owners and this means proper supervision.
The business owner should give a lot of encouragement and confidence to employees.
It should be noted that  the vision of a business is always imbedded in the business owner and, therefore, the passion of driving the business plan surrounds him or her.
f) Decision making: An entrepreneur should be able to make right business decisions at the right time to drive the business in the right direction.
Indecision is very unhealthy, because it can lead to the downfall of the business.
For example, it is illogical to keep bloated staff in a company when a decision can be made to lay off some in order to reduce on cost of running the business.
g) Innovativeness: An entrepreneur should wear an active mind to deal with the challenges the business is faced with.
It could be suicidal for a business owner to watch from the sideline the investments made in a business go down the drain, when that investments can be switched on to other viable business ventures.
This is all for now and look out for another interesting topic next week.
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