Business is very tough in today’s world!
Let’s take a look at how to succeed in business.
Most small businesses go bankrupt or are closed abruptly in the first five years. Over the course of the next five years many of the remaining companies also “pack up” shop and lock their doors.
Why do so many businesses fail and what does it take to succeed in business?
Succeed In Business
The reasons lie in three main spheres. Those spheres of influence can be labeled personal, customer, and operations.
The Personal Sphere
The Personal Sphere deals with the owner’s personal motivation to start a business.
For example, if an owner wants to start their own business, but isn’t willing to make the sacrifices necessary to make it thrive, then they are at a disadvantage when compared to other motivated business people.
When a business starts for the first time often it doesn’t have a good cash flow. Owners are required to sacrifice time, money, and happiness to ensure that their new business succeeds.
If you can’t do that, it is unlikely that your own business will flourish. Many times owners thought they could handle the hardship but once the novelty of “being your own boss” wears off they end up closing the doors.
The Customer Sphere
The Customer Sphere is one of the most important components of your business. Without customers you do not have sales, without sales you do not have money and without money, you do not have a business.
Many factors go into generating a good customer base. In the beginning, you must have a cost-effective marketing strategy that targets your intended buyers.
This can be done by developing a psychological profile of your customer and then advertising in those places that they frequent.
Because it is more expensive to get a new customer than it is to keep one you must make sure they are satisfied with your business and products first time around.
Keep in touch with them by sending them a follow-up letter with a survey.
The Operations Sphere
The Operations Sphere is only second to the Customer Sphere.
In operations you must have an appropriate method of reducing costs, keeping track of paperwork, and maintaining improvements.
Operations can also take into effect the tax paperwork, accounting, scheduling of workers, benefits or any non-producing functions.
If all of the above three components are well thought out and are appropriately designed you will increase your chances of survival.
Failure to understand the integral details of your business and what it takes to succeed may mean failure in the long run.
If you are having difficulty putting all the pieces together then consider a small business consultant.
Succeed In Business With A Low-Cost Business
Many people nowadays would love to succeed in business and have the opportunity to own their own business.
Unfortunately, this is simply not always possible to do, especially if one has financial constraints.
If you find yourself stuck for finances and would like to start your own business, I would strongly suggest starting one online.