Zubair Ahmad Entrepreneurship
PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENTDECISIONS
It is necessary to have good records for effective control and for tax purposes. Theentrepreneur should be comfortable and able to understand what is going on in the business. With software packages, much of the record keeping can be maintained on a personal computer. The goals of a good record keeping system are to identify keyincoming and outgoing revenues that can be effectively controlled.
Sales (Incoming Revenue)
It is useful to have knowledge about sales by customer both in terms of units and dollars.The entrepreneur of a retail store might try to identify the profile of the type of customer that patronizes the store. Retailers also like to have information on specific customers.Credit card purchases can be tracked for information on the type and amount of merchandise purchased. An Internet venture can maintain purchase history data on thetypes of produces purchased. Customers’ e-mail addresses can be requested so thecustomer can be notified of sales. Some Internet firms have established a freemembership as a means of following up. In a service venture, records would need to bemaintained on when a customer paid their monthly fee. As cash flow problems are themost significant cause of new venture failure, good payment records are necessary.