Become a Successful Trader.
People most atimes get confused when planning to start a new business.
The term “trade” simply means the act of buying and selling goods and/or rendering services. It is supposed to be a relationship between a seller and a buyer.
Terms used in trade.
The following terms will be of great importance when you start trading,
The “gain” gotten from sales or transaction that occurred.
Gain – The money added to the buying price of a good during a transaction.
Amount of money that remains after a good was sold below its purchased price.
It is the amount of money that flows into a business as a result of sales made over a particular period.
Producer or Manufacturer.
Person, Firm, Industry or Company that is involved in the production of the goods and services.
Buys the goods directly fron the producer and sell directly to the retailer.
Buys directly from the wholesaler and sells directly to the consumers in a little quantity.
Money borrowed to invest in a business enterprise.
The money you used to start a business.
Your capital doesn’t determine your business outcome, you can start with as little as your capital is.
A person in charge of giving and/or assigning work and/or post to people and pay them for it.
Is a person assigned and paid to do a particular work.
Bringing goods in to a country, crossing a country’s borders to bring in goods.
Taking goods out of a country, also involves crossing the country’s border but this time the goods are taking out of the country.
Bringing goods into a country to resell to other countries.
There are two types of trade you can choose from;
Home (local) trade – trade within the country’s border and Foreign (International) trade – trade between two or more countries, and it is done outside the countries’ border(s).
The choice you make depends 100% on your capital, the amount of money available for business must as well correspond with the level of business.
That’s why home trade is quite easier compared to International trade.
For instance – with proper planning, an individual can start a petty trade with just N 10,000 – N 15,000 ($ 29 – $ 43).
A very important factor that dermines the success of any trade is the skills and the management of the entire business operations.
As a beginner (amateur) learn and study the type and nature of the business you want.
Carryout researches on the basics, how the business works and even learn how the business tools are handled and managed.
As I always say “Without competitions, there is no moving forward“, try to analyse the way your competitors perform their business operations.
Develop strategies to help a midst competiton.
The business you wish to enter must have certain product lines, list them out try to compare, most times there are products with higher profit than the others.
Yes, the fact is every body venture into a particular business for the purpose of earning a living, but still go for your passion.
Your passion keeps you going even in the middle of challenges and distractions, therefore do ensure you choose your business line according to your passion.
I suggest you start with specializaton ( focusing on a particular line of business) and with time you can start introducing other related products.
For instance – if you chose to deal on motor spare parts, focus on that and let people know you for what you do, introducing rice and beans will be a disaster to the business plan and arrangement.
Knowledge is key, but “experience is the best teacher“. Try to build your knowledge based on past happenings (experience) of your competitors.
Planning makes it easier to spot investment opportunities, time to make changes, add or reduce resources etc.
In your business plan don’t forget to include the business overview, details and gathered (business) information, market research on how business is carried out in your locality and more that will benefit you.
You may also include marketing plan, your partner’s background informations and details, your financial projections and contracts.
Loan also is important if you are seeking for a means to raise capital, banks and other credit unions can be of great help.
But before you go seeking for loan from banks and other sources, your business plan will play an important role.
They will want to know the kind of business they are borrowing to.
Study all the market details of all the products, make a list of the notable insights in the industry’s future,
If possible have a idea of the the profit range of your competitors and also any issues resulting from their business.
Analyze, study and work the data to your need.
For the product supply, prepare a “list” of available suppliers of goods or product and try evaluating them according to their time of delivery, product quality, product cost, brand, experience, customer service / relation, etc.
Then select few out of your list, contact them to reach an agreement. I suggest trade unions for amateurs and those that are new to the business.
Interacting with the union members and attending the Union meetings and gatherings will help improve the knowledge of the business, this will really help you with the basics.
Making your business a legal entity will also be of a great help, register the structure and name of your business.
Apply the needed licences for the business and allow based on the location and the product of choice.
Ensure your business is registered with the Secretary of State and get the Employer identification Number (EIN). This is for those who seek to employ personnel or already have.
The EIN can be obtained from the IRS official website, IRS.gov.
Advertisements will increase your potential reach and therefore attracting more market targets.
Placing adverts is one of the characteristics of a middle man.
The adverts should be based on the size of your business.
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