No entrepreneur or businessperson starts a business with the aim of running it for a year or two and then being shut down because it cannot function. Businesspeople start businesses to make money, because they’ve spotted a gap in the market and have had the opportunity to take it. But how does an ordinary entrepreneur, whose resources are limited, turn their start-up business into a sustainable business? Here are a few tips and tricks…
The first secret isn’t really a secret. To make sure that you stay in business, you need to have a constant, reliable and sufficient customer base. Without customers, there is no money coming into your business. The way to make sure that customers keep coming back is to provide a service or product of the highest quality while maintaining the highest level of professionalism and satisfying the customer’s need. By constantly upgrading and updating your products, services and performance, you will keep your customers happy and coming back when they need you. This brand loyalty extends further than the eye can see, because your customers will talk about your business to their friends, and word of mouth is a very, very powerful tool.
It’s important that you’re able to maximise the resources at your disposal. If you can maintain your quality of service or product while reducing your costs, you will be able to make a higher level of profit than before – do not drop the quality of your products to save money because your customers will know. It’s also important to be market-related when it comes to pricing. You don’t want to charge an arm and a leg for something that competitors are giving at bargain prices, and likewise you don’t want to be selling a product too cheaply and not make a reasonable profit.
If you find yourself short of money, it’s advisable to seek financial aid from a lending institution. Just make sure that you know what you’re doing – perhaps getting your accountant involved would be a good idea. They can assist with the financial documents and will be able to tell you what size loan to apply for, as well as assist with managing your money. This way, you won’t be spending money that you don’t have.
The last factor in being successful as an entrepreneur is that you need to be in control. If you lose control, your company cannot succeed. It doesn’t matter whether you’ve got 10 clients or 100 or 1 000, if things aren’t running the way you want, you cannot and will not survive as a business. Maintain control of your business and how it works and you maintain your dream to become a successful businessperson.
It’s difficult to be successful in business these days, especially with the unpredictable economic climate… But it’s not impossible. If you follow a couple of easy-to-implement rules, you can go from start-up to sustainable business without hassle. It’s up to you what you want to do, though.
By Craig Falck for Africa Report