1. Commission-based salary > fixed-rate salary
Not only does commission-based salary help the company minimize its cost especially during times when the business is low, but it also helps motivate the employees to reach their maximum productivity, efficiency, and effectively. This way of compensation always bring about a win-win situation for both employees and employers because 1) when the business is low, management minimize its cost and employees get their minimum pay without too much hassle, 2) when the business is booming, management gets maximum input from employees and employees get what they work for.
2. Prices are computed and not arbitrarily invented.
Prices of products and services are not only from the management’s perception of their business’ value, it is actually computed from the company’s capital, fixed cost, and variable cost. It is actually important to compute for the right pricing so that the company would not go bankrupt and that customers would not see the price as too high.
3. When doing projections, especially of business demand, base them on computations and not random estimates.
The reason why most business plans financials look too good to be true is that people tend to make too high estimates for their product or services’ demand. When the estimated demand is too high, the revenue blows up and an inferior business can look bright and promising. To stay faithful to reality, and to make sure a business proposal is indeed promising, demand projections should be computed with the company’s fixed cost, variable cost, and computed price.
4. Team effort > individual work
Although it would be easier to work alone since all decisions are done by only one person, and no time and arguments are wasted, working in a group is more preferable since many workers means many different perspective concerning one subject matter. If only one person does all decisions, he or she may not be able to see the whole picture as compared to when 3 people analyze the problem to make up a solution. Also, with 3 people on board, there would be 2 people proof-reading every detail of each deliverable.
Blue Candle Event Management 