|Why did you start your business? Usually, we hear the following:
“I could do this way better than the last Boss that I had.”
“I received a payout, and thought that it was time I went out on my own.”, and the famous: “I’ve always wanted to do it.”
If you didn’t get into a market segment for reasons such as goods requirement in that region, or competition, or even a better raw material source, you can still concentrate on how you can make your business succeed from this point on by creating practices that more seasoned companies have done. Here’s Seven tips on how you can start succeeding:
Businesses fail to reach their full potential.
Any reason you can think of is usually a symptom of a bigger problem, and two of those are usually more organic than you can see. Either business owners are unclear about their goals (or have lost sight of their original goals as to what they want to get out of their business) OR business owners don’t really know what’s going on in their business.
Not knowing what’s going on in the business is extremely common and relates to knowing your KPI’s (key performance indicators) For instance, how many people do you have to connect with to get the right percentage to walk through your door and how many have to purchase and how many who purchase have to become loyal clients and/or referrers of others to your business? Start with last year, find out how close you are, and what steps do you have to take to get it right this year.
Know where you are
What are you doing right, right now, and what do you need to strengthen in order to get our first tip correct? Find out how long it will take to get there, and what it will cost. If you don’t know, get help – and factor that cost into your calculations.
Where are you going?
Many small business owners run a daily management routine on habit, rather than on a clearly defined journey toward a goal. Even if you are entrepreneurial, you must have something to head for in the medium and long term that is about your businesses’ success, not your rose colored view of the future. Break down the big picture into manageable chunks so you can see how far you have come, and what you have to do to reach your next steps.
How much do you earn?
You have to know how much it takes for the business to pay its bills, pay lifestyle wages and generate profits to grow the company. You need a predictive budget/cash flow model to see how much it takes to expand, and that includes owner’s salaries.
if you don’t plan to create profit for growth, how is your growth going to be funded? If you don’t pay yourself the right amount now, how will you know what you pay yourself in the future. Just taking ‘what’s left’ is not a plan.
Now that you know where you are, where you are going, and have decided your income, you have to get customers buying your products or services. But WHO are these people and WHERE are we going to find them? That is marketing, but now you know these two crucial facts about your future customers, you know what message will get to them, and that is the basis of your future. What are you doing right now for these customers, what do you need to work on to make their experiences with you better, and what will make hem return, or tell others?
Manage for success
While you are looking at these ‘big picture’ questions and challenges, you cannot be expected to run everything, perfect a customer relationship model for your staff, and be the corporate fireman. You need to get out of the everyday, and either delegate or hire someone that does these tasks for you.
These are two distinct jobs, and you shouldn’t be dropping complex calculations of future growth to go unblock the toilets. You need a head of daily operations, no matter the size of your company. That person reports to you, but on an organized daily meeting basis. Give yourself the time to plan the future.
Get a coach
A coach/mentor is outside of the day-to-day activity and can provide a cool outsider’s point of view about what needs to be done and/or can bring to the table ideas and concepts outside the your awareness or current level of experience.
Choose the right one: Remember, they are there to help YOU rather than sell you a coaching system designed to make them money. So ask questions about their specific expertise in your business, ask for names of other businesses in your industry area they have helped so you can reference check them, check their availability in relation to responding to problems or issues you may encounter, and lastly, determine what is and what is not included in their fee structures.
Give yourself the permission to speak candidly to someone about your business, and receive critical advice. They aren’t a friend, they are a professional, but they can become your company’s best friend.
Good Luck transforming your business for the next level of success.