According to various business researches conducted by reputable institutions around the world, there seems to be unison in the discovery that over 65% of new businesses fail in the first two years of commencement. This tragic phenomenon is largely attributed to inadequate planning and insufficient knowledge about the said businesses by entrepreneurs who own them.
This piece sets to unravel to you, ten unnoticed things to note as you start your business to avoid a crash after few years of starting.
- BE DETERMINED TO GROW:
I am yet to see a mother who would be comfortable seeing that her child is not growing. Every mother would be worried to see that there are no physical changes in their newborns.
In the same vein, every entrepreneur should not be comfortable if their business is not growing.
Be determined to see that your business grows. It is OK to start small, but definitely not OK to remain small after some time.
- Have realistic goals for your business
- Have a workable plan.
- iii. Be consistent.
- Be positive about your new business.
Let there be a strong desire to grow your business to an enviable height.
- RE-INVEST YOUR PROFITS:
This is one of the biggest challenges of new businesses, particularly those on small scale.
In the first 3-4 years of your business, make sure that at least 80% of your profit is reinvested in your business. This is what brings about expansion and growth.
If you spend all profit made, I assure it is just a matter of time, your business will crash.
Don’t nurse the idea of living fat from your new business.
- BE COMMITTED TO BUILDING A STRONG CUSTOMERS RELATIONSHIP:
The life of your business is greatly dependent on your customers and potential customers. You have a business because people patronize you. As a matter of fact, be more interested in building a solid relationship with your customers than you are in making profit.
The following are some of the ways to build strong customer relationship
- Offer quality goods and services to your customers.
- Establish a standard communication strategy with your customers. Create a system where you can get feedback from them after using your products or services. By this, you are creating a bond with them which will make it very difficult for them to replace you.
- Create a space for credit facility for your customers. However, this must be very minimal and should be given only to trusted customers.
- Have a price strategy that accommodates every class of people. Remember that the aim is not just to make profit, but to build a brand.
- Don’t ever for any reason fight or quarrel with your customers. Build emotional intelligence and stability to relate well with all kinds of people as you do your business.
- Be trustworthy
The best form of advertisement is recommendation and this is only possible through excellent customers relationship.
- MINIMIZE COST:
This is very important. Whatever your business can do without is not needed. If you can continue your business without an office space, please don’t get one. Your aim is to do business and not to impress people with frivolities.
Someone had asked me for a loan to get a shop where he can start his drycleaning business, I told him that he didn’t need a shop yet, what he needed was clothes to wash. He is doing well in the business now even without a shop.
- START SMALL:
it is advisable to start your business in small scale even if you have the resources to start on a large scale.
For instance, if you are to start a business and you have 600k, it is common sense to start with 300k. This is to enable you to understand the workings of the business especially if you are a first-timer.
There is an African traditional maxim that states-
“You don’t test the depth of a river with two legs but with one. The other one outside the river is to help you come out in case the river is deeper than you thought”.
- REGISTER YOUR BUSINESS AS SOON AS YOU CAN:
It is advisable to give your business a legal backing by registering it with the cooperate affairs commission (CAC). This is to check intellectual property theft and other insecurities that may arise subsequently.
- LEVERAGE ON SOCIAL MEDIA:
Social media or new media as it is called is an excellent place to create awareness for your business. Almost everyone is on Facebook or Instagram and other social media platforms. You can reach a large audience at the same time from the comfort of your room without any serious cost implications.
- KEEP RECORDS:
Don’t do business without having a proper means of recording or storing information concerning the business. Keep a good account of cost and income, sales, goods, etc. This helps you to plan and know where your business is heading.
- CREATE A SYSTEM THAT MAKES YOUR BUSINESS RUN FOR 24 HOURS, EVEN IF YOU ARE ASLEEP:
You will need to pay for this if you what to know how it works. Lol.
- BRING IN MORE HANDS:
As your business expands, it is important to bring in more hands as you may not be able to meet the demands of the business alone. In doing this, make sure you don’t trade competence for mediocrity and friendship. Don’t hire who you cannot fire.
Thank you for reading.
Hope this helped? I’d love to get your feedback in the comment below.
Originally posted 2020-07-08 19:58:22.