Bookkeeping - financial transactions

BOOKKEEPING

Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, in-come, and payments by an individual or organization. Bookkeeping is usually performed by a book-keeper.

1 Steps to start a small scale industry

The following are steps to start a small scale industry

            Description of the Business

            Product/Service

            The Location

            The Marketing Plan

            Competition

            Pricing and Sales

            Advertising and Public Relations

            The Management Plan

            Self-Paced Activity

            The Financial Management Plan.

2. Description of the business

The business description section is divided into three primary sections. Section 1 actually de-scribes about business, Section 2 describes about the product or service and Section 3 the location of business, and why this location is desirable.

3 Product / service

Try to describe the benefits of goods and services from your customers' perspective. Successful business owners know or at least have an idea of what their customers want or expect from them.

            How will the product or service benefit the customer?

            Which products/services are in demand? Will there be a steady flow of cash?

            What makes the product/service different and desirable?

4 THE LOCATION

The location of the business can play a decisive role in its success or failure. The location should be built around the customers, it should be accessible and it should provide a sense of security.

5 THE MARKETING PLAN

Marketing plays a vital role in successful business ventures. How well they market the business, along with a few other considerations, will ultimately determine degree of the success or failure. The key element of a successful marketing plan is to know about customers-their likes, dislikes, and expec-tations.

COMPETITION

Competition is a way of life. Nations compete for the consumer in the global marketplace, as do individual business owners. Advances in technology can send the profit margins of a successful business into a tailspin causing them to plummet overnight or within a few hours. When considering these and other factors, it can conclude that business is a highly competitive, volatile arena. Because of this volatility and competitiveness, it is important to know about competitors.

PRICING AND SALES

Pricing strategy is another marketing technique that can be used to improve overall competitive-ness. Get a feel for the pricing strategy the competitors are using. Determine prices in line with competi-tors in the market area and verify if they are in line with industry averages.

Some of the pricing strategies are:

            Retail cost and pricing

            Competitive position

            Pricing below competition

            Pricing above competition

            Price lining

            Multiple pricing

            Service costs, components and pricing (for service businesses only)

            Material costs

            Labor costs

            Overhead costs