Strategies and Choices That Could Turn your Business Upside Down
July 31, 2017
8 out of 10 entrepreneurs fail in the first two years of starting a business. A lot of reasons have been put Foward to support this fact, however poor management and lack of proper business strategy are among the biggest causes of business failure. Many of these entrepreneur’s repeat the same mistakes expecting a different result.
The two entrepreneurs out of the ten did things differently than the eight entrepreneurs whose businesses have failed. Depending of the type of the business, an entrepreneur is required to make strategic decision ‘s that will not only make a business stay afloat but also adapt to the changing business environment.
Below we will discuss some of the decisions or choices successful entrepreneurs make that completely changed the fortunes of a business.
1. concentrating on the consumers rather than the profits
Most entrepreneurs start businesses for profit making, they may be successful in this but it may not last long. Because an entrepreneur is completely concentrating on the profits, they may tend to overlook the impact good customer relations has on the growth of a business.
Successful entrepreneurs tend to concentrate more on the consumers because they want to retain them as they encourage others to start using their products. This is done by always getting customer feed back and implementing the feed back and suggestions.
2. Specialization of a business.
Specialization offers an entrepreneur a chance to solve the problems relating to a particular niche. Entrepreneur’s that choose to specialize get the opportunity to become a monopoly, this guarantees dominance and recognition in the niche.
The impact of specialization on an organization is very big and can be felt in the organization for a long time. Businesses that do not specialize tend to struggle more in creating an identity that their consumers can relate to. This also makes a business very vulnerable to competition.
3. Embracing of technology in marketing.
In order for a business to increase their sales and profits they are required to market their products and services. Marketing is very important because it make’s a business become visible and also creates competition between businesses, which is very important for the success of a business.
Modern technology has made marketing really easy and cheap through the use social media, websites and also blogging. The use of modern technology in marketing has been proven to increase more sales because they reach a wider range of people through out the world plus, it is cheaper than placing adverts in newspapers or on TV.
4. Proper management of the business financial matters.
Most businesses fail because they poorly manage their inflow and out flow of cash. Businesses spend more than they are earning, this forces them to get into loans that force them into bankruptcy.
Good entrepreneur’s remedy this situation by profit ploughing back and reduction of expenditure, this makes sure a business is always well funded through the profits they get without loans. They also cut or reduce their expenditure, this will ensure a business is always profitable and less money is wasted.
5. Mechanisation of the production system.
Mechanisation of the production system ensures that there is high quality products being made. When a lot of human labour is used in the production the chance of poor quality products being made is high.
Use of machine also reduces the recurrent expenditure of salaries, although the initial capital of acquiring the machines may be high the benefits a business enjoys after acquiring of the machines are huge.