I remember the old days where our family business was indeed doing great and everything run smoothly. But as we know even in business not all times are good times. When the global crisis emerged and people loses their jobs the sale started to go down even on the level of small scale businesses.
We are running 3 stalls in a market place selling dried goods like grocery items, eggs, smoked and dried fish, etc. It is a family business running for more than 2 decades already. Beside the global crisis impact there are two factors that affected the operation of our business: losing the market's sectioning so every vendor can sell items out of the section they are enlisted for and dealing with bad loans (5-6).
Currently we were able to stabilize and recover from bad loans. The competition issue is something we need to deal with everyday with different strategies and business approach. In this article, I would like to share how we were able to sustain our business given the bad decisions in the past and the adversity of operating it on a day to day basis.
Accounting - This is one point my parents never perform for a long time. For this year we are implementing complete recording of financial transactions so we will know how much money that go in and out in the operation. Even we are running a small scale business I believe in the importance of accounting every detail and the big help it gives in analyzing the flow and status of the business.
Loans - Applying for a business loan is kind of hard because there are many requirements of documents. We are using "personal or cash loan" being offered to family members by banks for a more friendly terms. But we try to limit the amount of loan depending on our business' capacity and the needs.
Credit Cards - We use this plastic money for our grocery items. These products are saleable but low-income generating items for us. We charge our purchases on credit cards and amortize how much we need to save daily to pay when the due date comes.
Inventory System - In a merchandising business such ours it is important to focus our capital on high-income generating products so that we can be able to save what we need to for our expenditures coming from the income alone of such products. In maintaining a good and ideal inventory system we will be able to earn the money we need for our expenditures without touching the capital. In that way we can avoid incurring additional loans.
Communication - My parents are the ones running and managing the business while my 2 sisters are working. I am not working but live far from them so we communicate most of the times in the phone. We make the planning and decision as a group regarding the business because that's what we lacked in the past.
For now I still can't say that we already get the right formula for our business but I believed that we are far different than before as to how we run the business. We still strive to reach the good points for our business and I know in time and with all our efforts good days are here again given all odd.