Ask any entrepreneur and you will receive the same answer: building a successful business is not “bread and butter”!
The common statistics about small businesses is that most go bankrupt or are closed abruptly in their first five years of getting started. For those that move beyond the 5 year mark, many “pack up” shop and lock their doors before they are ten.
Why Do So Many Businesses Fail?
Why do you think that people like Aliko Dangote (Africa’s Riches Person) were able to, not only move beyond these statistics, but have also been able to grow their businesses to world renowned status?
A careful scrutiny of these businesses point to some very specific things which can be classified into three main areas namely: personal, customer, and operations!
1. The Owners Personal Sphere
This deals with the owner’s personal motivation to start a business. For example, if you want to start a business but you are not willing to make the necessary sacrifices, then you are already putting yourself at a disadvantage.
You must understand that when you start a business for the first time you will need to sacrifice time, money, and happiness to ensure that that business succeeds. If you can’t do that, it is unlikely that such a business will flourish. So, before you rush off to “be your own boss” remember that building a business is far more than just having a bright business idea.
2. The Customers Sphere
This is another very crucial component of your business success. Without customers you do not have sales, without sales you do not have money and without money you do not have a business.
Now, to build a profitable customer base there are many factors to consider. In the beginning you must have a cost effective marketing strategy that targets your intended buyers. You can do this by developing a profile of your customer and then advertising in those places that they frequent.
3. The Operations Sphere
This is only second to the Customer Sphere. In operations you must have an appropriate method of reducing costs, keeping track of paperwork, and maintaining improvement. Operations can also take into effect the tax paperwork, accounting, scheduling of workers, benefits or any non-producing functions.
Of course, when you are just starting out, there may be challenges putting these three components together. Seeking help from those who have succeeded in these areas is a sure way of overcoming such challenges.
Another route you can take is seeking out resources, like these top business success guides, from some of the world-renowned captains of the business world.
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