It is a fact that 30 percent of businesses do not reach ten years in operation and that several factors contribute to this. Failures can result from poor business planning, ineffective management, and lack of financial resources. Or perhaps, a business suddenly goes bankrupt after a few months because the aspiring entrepreneur was too excited to get it going and just took the plunge or was too busy to spend some time for business lessons. However, for those that remain standing and are reaping the fruits of their respective trades, there are factors that enhance their staying power aside, from just building a strong foundation. These are the people who know how to succeed.
Are you following your passion and planning on starting a business?
First, be in control. As the owner or the driver of the company, you should know the roles being played by your personnel and demand to get what you expect from them. Rules and standards should be followed as well as certain procedures and processes. Admit it or not, the success of your business partly depends on your employees and working with them is one of the business tips you have to keep in mind. This is because all of you should work on a common goal and work on the same path, that is, to improve and sustain the company.
Second, be an effective leader. Being at the helm of the business, you should convey to and inform your managers and employees where the business is going and what your plans and expectations are. That being said, giving recognition to those who deserve it and not being tolerant or unmindful to the employees who deliberately are not giving enough contribution to the business are essential.
Third, be protective of your company's tangible and intangible assets that include building, properties, sales, profits and cash. Being too extravagant in giving incentives sometimes makes employees feel indispensable and end up not taking care of company property and even the tasks given them.
Fourth, be on guard and make preparations for whatever situation the business will be facing in the future. Not because sales are good and the loans are paid on time, things will remain the same for long. You cannot predict the future. If you have debts, work on them and try to repay what you owe in the shortest period possible.
Fifth, be persistent to market your products or services. Have a good marketing plan and think of cost-effective ways to reach out to your audience. Clients should be reminded time and again that you are in the industry and you have what they need.
Sixth, be competitive and aware that you are not the only existing provider or manufacturer in the business arena. There are other companies that offer the same products that you have. With this in mind, focus on how you can have leverage over them. This also includes not being afraid to ask for support or business advice from professionals, from lawyers to image consultants. Yes, you need an image guru like Aaron Marino to boost your confidence as an entrepreneur and a leader.
And finally, be knowledgeable of the type of business you are in. Not just because you have the money or you know something about a business venture, you will hire people and just wait for profits to come in. It is imperative that you know the ins and outs of the operations, from accounting up to purchasing.
Businesses can fail and facts can prove that. However, there are other facts to prove that for every failed endeavour, five other ventures triumph. If you want to be included in the five, these business tips can help.