What it Takes to Succeed in Business!

 

Business is tough in today's world! Most small businesses go bankrupt or closed abruptly in the first five years. Over the next five years, many of the remnants will also pack up shop and lock their doors. Why are so many companies failing?

The reasons lie in three main spheres. Those spheres of influence can be labeled personal, customer, and operations.

The Personal Sphere deals with the personal motivation of the owners to start a business. For example, if the owner wants to start his own business, but is not willing to make the sacrifices necessary to make it thrive, they are at a disadvantage compared to other motivated businessmen. When a business starts for the first time, it often doesn't have a lot of money. Owners are required to sacrifice time, money, and happiness to be successful. If you can't do that, that kind of business is unlikely to thrive. Many times the owners thought they could cope with the hardship, but once the novelty of being your own boss is worn out, they close the door.

The Customer Sphere is one of the most important parts of your business. You don't have sales without customers, you don't have money without sales, and you don't have a business without money. There are many factors in 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 your client's psychological profile and then advertising in places they frequent. Because it's more expensive to get a new customer than to keep one, you need to make sure they're satisfied with your business and product. Keep in touch with them by sending them a follow-up letter with a survey.

The Operations Sphere is second only to the Customer Sphere. In operations, you must have an appropriate method to reduce costs, keep track of paperwork and maintain improvement. Operations may also involve tax paperwork, accounting, scheduling of workers, benefits or any non-producing functions.

If all of these three components are well thought out and properly designed, you will increase your chances of survival. Failure to understand the full details of your business and what it takes to succeed may mean a long-term failure. If you have difficulty putting all the pieces together, consider a small business consultant.