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Simple Business


? Advertising, promoting and marketing to ensure that the product is
available to customers, and that potential customers are awa re of the
product.
? Producing the product on a profitable basis, with inco me fro m sale s
e xceeding costs.
? Maintaining carefu l control over costs.
? Maintaining defensive facilit ies to avoid serious damage to the
business due to problems such as cash flow shortages, fire,
equipment fa ilu re, and loss of major suppliers or customers.
? Re-investing in new products, projects and replacement fac ilit ies on
a regular basis .
1.6. Lies & deception
Lies and deception may be a significant part of the business environment.
For e xa mp le, an offe r may be submitted to purchase an item.
The seller may later respond by saying that they have received a higher offer
fro m another source, and requesting that the price be increased.
In some cases this may be true, wh ile in others it may no t be.
Direct fa lse statements are generally limited to small t ransactions.
In la rger transactions, similar proble ms may arise due to the image and
illusion of the situation not reflecting the actual nature of the situation, rather
than a statement being strictly false.
For e xa mp le, a business preparing for sale may cancel the regular
ma intenance of equipment.
This could lead to a la rge reduction in costs, and a resulting increase in
reported profit.
In this case, the profit that was generated by the business would not be a
sustainable figure, as the equipment wou ld cease to function in a short
timefra me if the maintenance was not restored.
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