Starting a new business can be exciting as well as challenging. It can be exciting because it is an experience to become one’s own boss and owning a business from being an employee. And where there is freedom to do things without anybody’s order. But it is challenging because
50 Million people start a new business every year. A study reveals, 30% businesses fails in the first year of their startup, 50% in first 5 years and 66% in first 10 years
The percentage is below 25% for those who can make a successful business.
There are some key areas that a new Entrepreneur should keep in mind to grow the business.So, here are 5 Important Areas for a Successful Business….
#1. Marketing :
Marketing is the key factor, on which one should concentrate the most. As we have already discussed, there are many people starting businesses day by day. Moreover, there are already some established businesses.
So How someone is going to know about your new business…!!!
Marketing is the key to let people know about your business. Through the marketing, show people -
WHY your Business is Unique ?
WHY one should choose you, in place of an established business?
WHY are you Best out of 50 Million new entrepreneurs?
Make a strategy or plan to do Marketing for your business.Digital Marketing is the best way to let people know about your business, Social Media act as an important platform for new Entrepreneurs to do Marketing for their business as it is free of cost.
Email campaigns is the other way for digital marketing as it costs you nothing.
Let’s discuss HOW Marketing helps to grow a business :
A. Marketing let your audience know about your business, products and services. Let’s assume, someone started a business but nobody know about that, then how that business will get the clients if people don’t have any information about the business and its products or services.Therefore, you have to reach your audience to let them know about you and Marketing is the only way to reach your audience.
B. Someone said “Marketing is not a medicine, it is a food”. It’s true, because Marketing strengthen the position of a company in the market.If you think, once you got the clients you are successful, then you are wrong because your clients always need to know that you are present in the market. And marketing is the only key that always remind your customers about your presence.
C. As we all know that the root objective of any business is to make make money and Marketing is the medium for you to reach your money goals also, because it not only helps you to get more customers but is also helps to get more sales for your products and services.For sure, your product should be good to get more sales, But if your audience don’t know what you are offering them, then how can you generate sales.
#2. Sales :
Now, when people got to know about your business, then the next step is “SALES”. If you are not doing any sales, it means that your business is not growing and your business can fail at some point.Therefore, it is necessary to create a Sales Plan that can help you to get more sales, because according to a study, a Sales Plan help a business to achieve 18% more revenue.
“Building Relationships and keeping them, is a key to business”
Getting new customers is not enough, you should build relationship with your ongoing customers to keep them with you, because Sales is an ongoing process for a business and not a one time process.
Following are some points that can help you to generate more sales :
A. The major area to generate sales is to discover your audience. You should know who is your audience and for whom your products and services are a good fit. For example, you are selling a dress for women but the people you are targeting are all men, then how can you generate the sales. So it is very important to identify the right audience for your products and services.
B. Now after discovering your audience, your next step should be to create a plan to promote your products and services to reach your audience. You have to choose your promotional methods carefully so that you can reach the right audience.
C. When you have reached your right audience, now the next step is to get their contact information so that you can contact them and you can generate the sales. Most of the people use landing pages to get the contact information of their audience.After getting the contact information, provide the details and services that they want. This way they can become your customers from the audience.
D. Once you got the customers, it is not sufficient. Next step is to build relationship with your customers.Building a good relationship with your customers can keep them with you. Moreover, your current customers can refer you to other people.
#3. Services/Products :
Implementing excellent services for your customers can keep them with you. After generating the Sales for your business, you can build a good relationship with your customers only by providing good services and products to them.
8 out of 10 people are more likely to stay with the business after receiving good service.
For example - Business A replies to the complaints of the customers and solve those problems. And Business B is not good at this. Then it is obvious that a customer would like to stay with business A.
The services/products also play an important role to build and destroy the Reputation of your business.Because, one person who had a bad experience can tell 10 more people about their experience.
Sam Walton said “ If you want a successful business, your people must feel that you are working for them-not that they are are working for you ”
Hence, services/products are the value that you can give your customers.
Here are some points that will tell you, how your services/products can affects your business growth :
A. Your customers can get to know about you through marketing but they will remember you based on your services/products. Always remember you are selling your services/products to the customers and that is the main thing because of which they are attached to you. So, make sure you serve them good not bad. Because, if you will serve you clients good then they will remember you for that and will keep on going with you. However, If you will not provide better services/products to them, then they will always remember you for their bad experience. Ruby Newell-Legner, author of Understanding Customers, states 12 positive experiences are necessary to make up for just one unresolved negative one.
B. Your products/services give statement about your business.If you cannot give value to your customers then it shows that your business is not giving quality.As already mentioned above,if you will not give quality to your customers then they will tell the same thing to other people. Hence, your services/products can affect the Reputation of your business in right as well as in wrong way.
C. The products/services you provide to your customers can also affect the conversion rates. Let’s assume, after promoting your business you got some leads , but you didn’t provide them the good services/products, then those leads can never become your clients.
D. Moreover, your products/services affect the retention also.It costs you less to keep hold on current customer as compare to attracting new customers. But if your services/products don’t give value to your current clients then they will leave you and it will cost you more to attract new customers all the time.If a client sticks to you, it can reduce your efforts in the long run.
#4. Billing and Finance :
Money is the crucial element that can affect a small as well as a big business.Following are the two main areas related to money for which one should pay close attention -
HOW you charge your customers?
- HOW you manage your finances?
Let us talk about billing first. Billing commence the cash flow which is necessary for the survival of a business.Billing not only affect your customers but your business also.If your billing system is not good then it can reduce your sale and customers.Therefore, you should have :
good billing system.
cost-effective services or products.
Multiple payment options.
brief and simple payment terms, that can explain everything to the customer.
Moreover following are some areas that can explain how a good billing system can affect your business :
A. If your billing system is easy to use, have simple policies and is reliable, it means it give your customer an easy way to pay their bills.Moreover, your customers have a good experience with you in one more aspect. This can lead to increase in your sales. Whereas, a bad or complicated billing system can affect your business in negative way.
B. If you are in a business, it means that you are serving the people, in other words you are providing customer service. If your billing system is reliable then it will reduce the complaints and calls regarding the billing and you don’t need to spend your time and money to solve those problems. In this way you are saving your time and money.
C. A good billing system also helps you keep track of your spendings and earnings.You can easily collect information for your business conversions also.
Managing your finances is the factor that can affect the owner only, it is one of the important responsibilities of an entrepreneur.You should take your decisions by keeping in mind the profits, cash flow and financial condition of the company/business.
Here are some points that can show how finances can affect a business ;
A. Many business owners rely on loans and other sources to start and maintain the business operations.But in case you forgot to pay your bill for a single month, then it can affect your credit score. As a result of that, it can affect your business also, especially when you any loan for the business.
C. You should take care of your taxes because tax mistakes can create many problems to your business.Moreover, tax mistakes can make you indulge in government matters and fines, which can affect your your business.
#5. Management and Process :
Having a passion for business is not sufficient, one should have management skills to manage the business. You should concentrate on the processes that can be used to -
- manage each and every aspect in the business
- improve the different areas of the business.
- tie all the areas together as a one system.
The best things you can do to manage your business successfully are to make sure you understand your finances and to develop marketing plans that are based on real data and customer feedback.
Following are some benefits of a good business management process:
A. A good management process can make your business more flexible in all terms. If your business have proper management and processes to carry out the tasks, then it means your company is ready to face any kind of challenges either it’s related to market position, finance, staff, services or products.
B. A proper management can reduce all kinds of risks in a business and increase the efficiency of a business.As a result, it contributes to the overall productivity of a business.
C. The management process makes the reporting easier for the employees. It is clear to them, what they have to do and how they can help to achieve the organization goals.
Hence, starting a business is life altering, but if you understand what you are doing, how you can handle the challenges and what are the key factors you should concentrate on, then you can be a successful entrepreneur.
There is a famous quote “ Working is Art, making money is Art BUT the Business is the Best Art”