How To... Stay in Business

Anthea McGibbon, Staff Reporter

The Gleaner's new feature, 'How to ...', is an instruction guide which gives practical advice on fixing many of those pesky problems that pop up and surviving tough times. Seize on info from industry experts and become a veritable Mr or Ms Fix-it.

FACED WITH repercussions from the global economic downturn, and high inflation and soft consumer spending on the home front, some businesses are finding it difficult to stay afloat.

Business guru, William Mahfood, managing director of Wisynco for 21 years, reveals sure-fire tips for entrepreneurial success centring on the double-pronged formula of management and motivation.

Wisynco, which was established in 1965 and now has more than 1,700 employees, has had to counter many challenges, especially vigorous competition from imported products.

Employees should top the list of priorities for any business, says Mahfood.

"You've got to make the employees happy and comfortable enough to want to come to work," he explains.

It's never good to have employees who work just because they have to, in Mahfood's professional opinion, as they generally won't give 100 per cent all the time. Employees should be motivated beyond the salary carrot, as there are other important morale boosters.

Template for other firms

Wisynco's strategy of committing 10 per cent of annual profit to the company's year-end employee bonus programme is a template for other firms to adopt in staff motivation.

A systematic policy of employee recognition boosts esprit de corps, especially as managers try to connect with workers, understanding what makes them tick.

Referring to the company's mission statement, Mahfood speaks to two other priorities on the list. The second focus should be on the consumer/customer. Happy employees aim to keep customers satisfied, shielding them from internal problems. When satisfied with goods or services, business is improved and guaranteed.

Third, top-quality products and service are critical. Mahfood says that everything flows when you get number one (prioritising the employees) right.

However, it's always important to constantly identify the objectives of the business, assessing what consumers want, in terms of goods and services.

Tips for budding entrepreneurs

Mahfood, who sometimes conducts workshops for potential businesspersons, offered a few tips for budding entrepreneurs:

A common mistake business newbies make is omitting or overlooking the need for seamless communication between the business and the clients. Hence, newcomers rarely invest, if ever, in communication and marketing, unwisely choosing instead to plough capital into equipment, buildings and motor vehicles.

An abiding touchstone of successful medium- and large-scale entrepreneurship is brand marketing, which expands consumer awareness through sponsorships, instant and general promotions, and advertising.

Proper planning is key. Newcomers should assess the marketplace, target groups, and methods for reaching the clients. They should also evaluate financial data, as well as set-up and operational costs. Then, they should determine the potential revenue from the business.

Above all, Mahfood says, business rookies shouldn't seek to start out as top dog, but gain hands-on knowledge and experience on the full spectrum of operations - from mopping the floor to crunching the numbers.

(Gleaner)