I will be sharing with you some strategies that will help you start and run a viable business enterprise. Whether it's a 'going concern' or a start up, as you consciously apply them, your business will grow by leaps and bounds. It will stay on top exceptionally!
There are lots of business ideas starring in the faces of most would-be entrepreneurs. Many of them are clueless about what kind of start up they should actually get involved in. This, however, shouldn't make you lose sight of your own plans or misplace your priorities. Rather, you need the courage and the ability to stay focused until you achieve your dreams.
Basically, not all start ups are viable and as such they don't survive to the end. Research has proved that 99 out of 100 new business ideas fail. Many businesses, of course, wind up within the first 5years! Would you like your business to fail after investing so much money, time, energy and other resources?
The following strategies may help you run a viable business enterprise:
The following strategies may help you run a viable business enterprise:
1. Problem Solving
Entrepreneurs love to solve problems. They know that in every problem lie great opportunities. This is what makes them distinct from other people. If your business can meet the ever-increasing needs of your customers, then it will succeed. If you can identify problem{s} and provide solutions to them, your business will be in the front burner. What problems can your business solve? Why are you offering what to your numerous customers? These important questions will help keep you focused and guide you into the specific purpose of your business.
2. Market Analysis
A great determinant of a viable business is market analysis. Every business is built around its customers, otherwise it's not a business. What specific group of people does your business really serve? Are they willing to buy your products or services? In other words, how many people are there to patronize your business consistently? Targeting a specific group is as important as the business.
Don't launch your business into the marketplace without first sharing the business idea to people. Market analysis will help you know whether or not your business is profitable. The best people you should share your business idea, however, are people in the same line of business with you. You will be amazed how they'll be willing to assist you in whatever area you need their expert advice.
3. Planning Process
This is development of strategies or action plans in other to achieve predetermined objectives. It's a mental activity. Planning is seeing the future state of your business from the present situation. It's deciding in advance how to tackle critical issues that may arise in the future. It answers the questions: What, How, Why, Where, When, Who and For whom.
One major characteristic of planning is its futuristic nature. Strategizing on the best ways to take your business to a new phase is one major task of planning. Creating a business plan will help you achieve the planning objective - it will prepare you mentally strong against unforeseen circumstance that may arise [and most of the times it does], think through all the various aspects of your business without leaving out important details. What measures have you put in place to start and run a viable business?
One major characteristic of planning is its futuristic nature. Strategizing on the best ways to take your business to a new phase is one major task of planning. Creating a business plan will help you achieve the planning objective - it will prepare you mentally strong against unforeseen circumstance that may arise [and most of the times it does], think through all the various aspects of your business without leaving out important details. What measures have you put in place to start and run a viable business?
4. Profitability
The primary aim of every business venture is profit maximization. Take profit away and your business is dead. What actually drives you to do business is the desire to make extra cash. It's the cornerstone of a business. What's profit? Profit is the excess of revenue over expenditure. If the money you receive in doing a business is more than money you spend in the course of doing that business, profitability has occurred. This is a good indication for the business. Conversely, if expenses incurred in doing a business are more than the money received, that's a 'red' signal for your business. In the circumstance, all you need to do is sit up and make critical evaluations. Close all possible loopholes immediately.
A viable business is measured by a long-term survival. What's responsible for long-term survival of a business? Profit maximization is the life-style of a viable business. And profit should be generated every year. How much money does your business generate yearly? How much is spent? Do you keep records of business transactions?
5. Opportunities/ Risks
The viability of a business is a function of the ability to identify opportunities and risks. While both factors are success indicators, efforts should be geared towards maximizing opportunities and evaluating the related risks. Entrepreneurs love business risks, because great opportunities are hidden in them. What opportunities are in your business? What are the related risks that can be evaluated? How would you harness opportunities/risks to start and run a viable business enterprise?
6. Sale of Products/Services
All businesses revolve around its customers. When you buy a product/service, money exchanges hands. Sales is the life-blood of a thriving business. That means, no business can survive without sales. If you don't sell, customers won't buy and vice versa. How do you start and run a viable business enterprise? Are your products/services saleable? Who are your customers and how do you treat them? What's the level of patronage? Why do you want them to buy your products/services? The ability to convince your customers to buy from you is a marketing technique worth learning.
7. Money
Small scale business enterprises need some money to start. Decide on the best way to raise the required capital for your business. While most young entrepreneurs would want to borrow money from the banks to start a business, it's my advice you raise capital from your personal savings. The risk involved in borrowing from banks is too high. "You need six months of operating costs in bank before you go into business" - Brian Tracy.
Banks don't lend money to start a business. At best, they can lend to an existing business with success indicator. They wouldn't want to take any financial risks, just like you wouldn't. Determining how much you need and the sources of funds before going into business is very important.
8. Unique Product/Service
One way to remain thriving in your business is selling or rendering unique products or services. What's new with your business? Does it flow with technology as we have it today? How would your business survive without the internet? Would you continue to sell the bricks and mortar way? The online marketplaces have introduced new ways of buying and selling with ease. Examples of online market platforms are Amazon, E-bay, Fiverr, etc.
Online businesses such as virtual freelance writing, website design, logo design, blogging, etc are all unique. The cellphones, computer devices, etc are currently making waves in the communication industry. How about the social media platforms such as the Facebook, Twitter, Google+, YouTube, LinkedIn, Instagram, Pinterest, Digg, etc? As long as people communicate, this business will continue to be viable.
9. Feedback Mechanism
A feedback mechanism is an interactive system between the business owner and its customers. It's also a response system through which customers react to a product or service. The reaction may be positive or negative. Whichever way, it helps the business owner monitor progress of business.
10. Leadership
A business without a leader is like a ship without a captain. And because it isn't steered in the specific direction it should go, it sails uncontrollably and without a purpose. This is how some businesses operate. Sooner or later, they're crashed! Who's a leader? A leader is someone who holds a position of authority and exercises a high level of influence over those under him to achieve stated objectives. He is a visionary. He cares. His interest is in building a business to greater heights. As a business representative [leader] you must carry other employees along. 'If we win the hearts and minds of employees, we're going to have better business success' - Mary Barra, CEO , General Motors.
What's leadership? There's no one acceptable definition of leadership. Rather, leadership is defined based on the situation - situational leadership. However, from the context of this article, it can be defined as the art of getting people to do something through the use of influence or inspiration to achieve desired organizational objectives.
Leadership gives direction and builds an inspiring vision. How do you lead your organizational members? What steps have you taken to realize stated objectives? Leadership is said to take place when there is purposeful and positive relationship between you [the leader] and your employees [ the led]. How do your employees benefit from the organization? Are they trained on the job? Note the success or failure of your business is dependent on the level of training you give to your employees. If they grow, the business grows. And if the business grows, you will grow also, and vice versa.
If you think and believe you've within you what it takes to build a viable business, you've it! Countless number of people have done it in the past. You, too, can do it now! There's absolutely nothing difficult to achieve. Nothing, therefore, should stop you from achieving your dreams. You're the only one who can stop yourself! So, when you learn how to start and run a thriving business enterprise, you'll be amazed how it'll naturally attract opportunities for long-term survival.
ABOUT THE AUTHOR:
Clement Nkem
Entrepreneur, Freelance Writer and Blogger. Connect with me here, on www.clementnkem.blogspot.com and learn how to become a successful entrepreneur.
A viable business is measured by a long-term survival. What's responsible for long-term survival of a business? Profit maximization is the life-style of a viable business. And profit should be generated every year. How much money does your business generate yearly? How much is spent? Do you keep records of business transactions?
5. Opportunities/ Risks
The viability of a business is a function of the ability to identify opportunities and risks. While both factors are success indicators, efforts should be geared towards maximizing opportunities and evaluating the related risks. Entrepreneurs love business risks, because great opportunities are hidden in them. What opportunities are in your business? What are the related risks that can be evaluated? How would you harness opportunities/risks to start and run a viable business enterprise?
6. Sale of Products/Services
All businesses revolve around its customers. When you buy a product/service, money exchanges hands. Sales is the life-blood of a thriving business. That means, no business can survive without sales. If you don't sell, customers won't buy and vice versa. How do you start and run a viable business enterprise? Are your products/services saleable? Who are your customers and how do you treat them? What's the level of patronage? Why do you want them to buy your products/services? The ability to convince your customers to buy from you is a marketing technique worth learning.
7. Money
Small scale business enterprises need some money to start. Decide on the best way to raise the required capital for your business. While most young entrepreneurs would want to borrow money from the banks to start a business, it's my advice you raise capital from your personal savings. The risk involved in borrowing from banks is too high. "You need six months of operating costs in bank before you go into business" - Brian Tracy.
Banks don't lend money to start a business. At best, they can lend to an existing business with success indicator. They wouldn't want to take any financial risks, just like you wouldn't. Determining how much you need and the sources of funds before going into business is very important.
8. Unique Product/Service
One way to remain thriving in your business is selling or rendering unique products or services. What's new with your business? Does it flow with technology as we have it today? How would your business survive without the internet? Would you continue to sell the bricks and mortar way? The online marketplaces have introduced new ways of buying and selling with ease. Examples of online market platforms are Amazon, E-bay, Fiverr, etc.
Online businesses such as virtual freelance writing, website design, logo design, blogging, etc are all unique. The cellphones, computer devices, etc are currently making waves in the communication industry. How about the social media platforms such as the Facebook, Twitter, Google+, YouTube, LinkedIn, Instagram, Pinterest, Digg, etc? As long as people communicate, this business will continue to be viable.
9. Feedback Mechanism
A feedback mechanism is an interactive system between the business owner and its customers. It's also a response system through which customers react to a product or service. The reaction may be positive or negative. Whichever way, it helps the business owner monitor progress of business.
10. Leadership
A business without a leader is like a ship without a captain. And because it isn't steered in the specific direction it should go, it sails uncontrollably and without a purpose. This is how some businesses operate. Sooner or later, they're crashed! Who's a leader? A leader is someone who holds a position of authority and exercises a high level of influence over those under him to achieve stated objectives. He is a visionary. He cares. His interest is in building a business to greater heights. As a business representative [leader] you must carry other employees along. 'If we win the hearts and minds of employees, we're going to have better business success' - Mary Barra, CEO , General Motors.
What's leadership? There's no one acceptable definition of leadership. Rather, leadership is defined based on the situation - situational leadership. However, from the context of this article, it can be defined as the art of getting people to do something through the use of influence or inspiration to achieve desired organizational objectives.
Leadership gives direction and builds an inspiring vision. How do you lead your organizational members? What steps have you taken to realize stated objectives? Leadership is said to take place when there is purposeful and positive relationship between you [the leader] and your employees [ the led]. How do your employees benefit from the organization? Are they trained on the job? Note the success or failure of your business is dependent on the level of training you give to your employees. If they grow, the business grows. And if the business grows, you will grow also, and vice versa.
If you think and believe you've within you what it takes to build a viable business, you've it! Countless number of people have done it in the past. You, too, can do it now! There's absolutely nothing difficult to achieve. Nothing, therefore, should stop you from achieving your dreams. You're the only one who can stop yourself! So, when you learn how to start and run a thriving business enterprise, you'll be amazed how it'll naturally attract opportunities for long-term survival.
ABOUT THE AUTHOR:
Clement Nkem
Entrepreneur, Freelance Writer and Blogger. Connect with me here, on www.clementnkem.blogspot.com and learn how to become a successful entrepreneur.
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