The Art of the deal: smart purchasing, selling and bargaining for business success
At the heart of every business transaction are three core activities: purchasing, selling, and bargaining. These are the essential mechanisms of trade, all facilitated by finance. Mastering each one is critical for maximizing profits and ensuring long-term success. This guide breaks down the key principles for each stage of the deal. Part 1: The Smart Purchaser's Checklist Before buying anything for your business, a careful evaluation is necessary to protect your capital. · Assess Necessity vs. Luxury: First, ask a critical question: Is this item essential for growth? Is it a necessary tool, a piece of equipment, or simply a luxury? Prioritize purchases that directly contribute to your business operations or revenue generation. · Evaluate Quality vs. Cost: Scrutinize the product's materials and construction. Does the quality justify the price tag? A cheap item that breaks quickly is more expensive in the long run than a durable, fairly-priced one. · Consider Value Addition: Thi...