Technically speaking: When business becomes personal

Twenty years in the construction business, involved dealing with different kinds of suppliers, talking with different customers and managing a lot of people . Routine as it may be but the owners or entrepreneurs, a few did something different that not brought success and failure at the same time. How did it happen?

Traditional treatment or set up is only applicable for start up business, say with 5 employees with sales figures up to 100 thousand pesos a day and catering up to 3 to 4 communities. In this Traditional set up, the manager/owner is usually the one directly talking or contacting the consumers, the manager usually treats the customers as his long time friend, giving them freebies expecting long term relationship. Sometimes one can give the product at “break-even” price or “no-profit” which is against the law of business/

Usually this Traditional set up is a single proprietorship where the manager is the owner itself. This is very effective approach but not applicable at all times especially if the organization or company is growing. It does not mean that the Traditional approach must be abolished completely . Business is business is an Idiom which according to the dictionary is something that you say which means the purpose of business is to make a profit, and that other things, such as personal feelings, must not be allowed to prevent this Business is business, and if your friend can’t produce the work on time, I’ll have to find someone else.

Let us start with the proposal to the client if the manger is offering a service like in a construction business where the service and the finished product must be of high quality standard and using a good engineering practice. In giving proposals, everything must be within the cost. It must be transparent from the start. All documents must be presented like Bill of materials, scope of work and contract. As the manager, one must know exactly the budget of the client, both must be honest or if not, everything will be under the “black and white” process.

In the beginning of the transaction until the end of the construction, both must have a harmonious relationship, forget about the smile and favor. In the end it will not count. The deal will be all about the legal documents so stick with it. In business even the manager has passion to do it even without profit which is wrong but is still happening especially in a construction business due to the fluctuation of prices and natural delays. The end result from the contract will still be the final judge, not the favors of the manager just to help the client to have their dream home which.

In business, it is survival of the fittest, or in other words a company must have an operating capital, skilled manpower and overwhelming clients. For a successful entrepreneur , one must have 25% integrity, 25% hard work and the 50% will be luck which can be translated as 25% passion, 25% skilled manpower and lot’s of connections.

An example is when dealing with a bank. Banks will accept your funds or deposits with open arms, that’s what they do and practice. The bank will be the manager and you as the client. The manager will give you all the perks like a free gadget if you will avail this checking with a minimum cash deposits, always with a smile, you even made the manager the godfather for your daughter but once your check bounces, there is no favor from the manager but to close the bank account. Business is business.

In finance, the best partner of the firm is the loan agency. They give the manager big capital but only with a collateral and for a certain time. In retail such as selling gadgets or hardware materials, the time given for the managers from the suppliers are usually 30 to 120 days depending on the evaluation of the suppliers. This is in order for the manager to sell off all supplies within this time before its due date and because also of the quantity of the materials like bolts, nuts, paints, lumber, screws and the like are delivered in bulk. The loan agency makes the operating capital in full as long as the company is progressive but once the sales is declining which is also equivalent to bouncing checks and late payment, the years of partnership will become a day of bailing out.

It is good if the manager has a will and passion in what he is doing like putting quality, extended services and extra effort to make the clients satisfied with the product or services , It is important also to remember that business is business specially to the clients who are there in front of you not to have a chit chat about clothes or fashion or even your advocacy but to get what is under the contract and the end product with satisfaction. Extending efforts that will kill the company like giving out materials or scope of work that is not included in the contract must be stop. The manager is in the losing end every time he is giving out from his own pocket. In business there must be profit to survive and to continually grow the organization. This is doing what is right based on the computation of the cost, right for the organization and due for the client. Don’t forget that only few appreciate the amount of time and the amount of passion the manager put in the project but many and most will only think that it is just part of the cost. For those without passion, to them it is just business.

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