In the entrepreneurial world, many came with aspirations to build a successful business, some make it, but some may fail to hit the nail. Those who are entering into this promising world are no way inferior and for sure, they are able persons. The world is becoming competitive day by day and everybody needs to run along without any delay. A perfect start in the race decides one’s future. Every enterprise is a dream child and bears sweat of many. Investing the word itself means to make a profit, and for that purpose, only somebody is putting up something. Besides Time is becoming an important investment in every person’s life. That is why the success and failure of every single enterprise matters.
So it arises another array of questions. How to build a business? How to avoid failures? Why failures? Is there any magic formula to make every venture successful? What are the common errors losers do?
How to build a successful business?
We could see many reasons for both successful and failed ventures. While googling, a hell lot of lists of dos and don’t s are available. The funny part is nobody starts without revising their business management textbooks. They know the process and procedures, management tactics. But at the end of the day, nothing works out. Many say experience do. Can get a bald man’s advice in no time. But the question is why some are successful and only some are failing, even though the same principles were followed. If we take care of some basic but important factors before starting up a new venture, things can’t be gone out of control. It ranges from having a clear vision to adaptability.
The Power of Visioning
Vision is something that can lead. It is a futuristic idea about the company at a point in time. When opportunities came along, it is better to have the vision to choose from it. Visioning makes decision making simpler and to make the right decisions. It is like stepping into the future of your company. It is your aspiration about the future of the company. A vision must contain the core ideology and future aspirations. The core ideology or the basic character of the organisation should be preserved even though the strategies and policies of the company change in response to the changing world. The core values are those intrinsic values that you should stand for. The intrinsic values of a company define the organisation. It guides the organisation. Can help to achieve what we intended for. It is important to have a vision before making a strategic plan for the business. Vision will lead to effective planning.
Mission, Passion and Purpose
The mission of the company defines its purpose. It states the primary objectives related to the customer needs and team values. Moreover, business plans and marketing strategies can be based on this mission statement. You can build a culture for your company once you are clear on the purpose. So it is also important to have a clearly defined purpose as well as values. Values can provide a strong framework so that the decisions taken can be based on it. Values provide information about the policies and procedures of the company and it helps the employees to find the right path. The health of the organization and the team will improve with this. Along with this, Passion is the force that drives everything forward. It is not different in the case of business also. When your company runs with a pool of passionate people, success will accompany you.
Focus on Process
We all have a leaning towards producing masterpieces. want to produce masterpieces every time. Sometimes it is wiser to focus on the process than on the final product. Improve the quality of every new batch, respond to the consumer requirements, get feedback at regular intervals. Startups require more focus. Multitasking may be good, but the proper focus is an essential nutrient in growing up of a new firm. Follow intentionally, wholeheartedly at the expense of all others, that is focus consciously, to bring success. Finish every project giving maximum focus to make sure about its success. lack of focus on profit margin can lead to failures. so it is important to have.
We are living in an era of booming technologies. The rapidly changing world and evolving technologies invite changes in business also. In other words, we need to change according to the change in the outside world. The magnitude of the changes can be understood by simply observing the changes that took place in the past ten or twenty years. No doubt, the business requirements will also change according to these changes. That is where adaptability finds its place. Adaptability can be seen as a competitive advantage while doing business.
Easy adaptation is a clear advantage of startups over big companies. For a big company, shifting the strategies may be a bit difficult. But for a startup, all you need is to grab the very opportunity and make quick decisions, which is a clear advantage. It is easy to compare building a startup to walking through a maze. At many points, you have to make decisions on the direction with seeing what is next. Or simply taking a risk. If it is a wrong decision you have to change the direction and try another path. Same happens in the case of a startup. If you are sticking on a path (or an idea), you will keep hitting on the wall and never progresses. The major feature of adaptability is flexibility. It is said that adaptability has two components, Flexibility and Versatility. Flexibility is the willingness to adapt and versatility is the ability. And above all, it is the attitude. Keep the attitude right…
Finding Suitable Workforce
Every business is a long journey in problem-solving and decision making. In each and every step we need to take a decision or solve a problem. This character itself justifies the emphasis on hiring new employees for your business. Don’t just look at the persons with right qualification but right people for your firm. Then who are these right people? The success of a startup is critically linked with hiring the right people. Startups may end in failure unless they find a suitable workforce who can be worked with. Even people with a clear vision and passion find it hard to select the right people.
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A great problem solver usually is open to new ideas and experiences, innately curious and experimenter and good at working with others. Another character is that they are good listeners too. They ought to be committed, capable and compatible. It will be a great mistake if an entrepreneur hires somebody who isn’t sharing the same vision, synchronizing wavelength with the firm. The attitude of the first hires influences the developing culture of the firm. So it is not good to hire employees just to fill the posts. Make attractive HR policies to woo incredible and brilliant people.
4 Kinds of people a startup should not hire.
They are hardly interested in spending time and effort in learning how to do their jobs better.
They will only do what their bosses tell them to do. They will never be proactive and do things on their own
They will never be able to think beyond their immediate task list and think about the bigger picture, or even how what they are doing/can do can impact the company in general
Nothing for them is an urgency. They will crawl while they are expected to fly. Most things that will annoy the hell out of founder/core team will not cause them an itch.
Always remember :
Great Hire = smart + Passionate + Committed
Identify Target Customers
Marketing a product is crucial. Every product deserves an owner. Reaching to the hands of those who need the product or making them easily available to the public is another big task. Identifying the target population is the first step leading to this. Requirements of the people vary with the class and profile of the people. If your product has a particular section of consumers, then make them available and market them in such a way that they are easily available to the target population.
How to identify the target customers? We will see some tips
A little market research
Market research can be in many forms like analyzing demographics, finding information from publications, conducting surveys or polls etc. From market research, you will get great insights which will help you in building a brand that lasts.
A customer Profile
Creating a customer profile will help to identify the target customers accurately. There should be some common characters among the customers and your product. Make use variables like age, sex, location, income level, ethnic groups, marital status etc.
Asses your product profile and customer profile
Reassess the profiles and make necessary modifications in your marketing strategy. Do it periodically. Examine whether your product is interesting to the target populations and the reasons.
Make Sure You Have Adequate Capital
Capital is the base of every business and gives importance to build a strong base. So it is wise to start with adequate resources. Or make sure that resources can be made available if required. Financial management is yet another important area to deal with. Better knowledge of finances is necessary for taking the right decisions. Comparing can help in the better organisation of financial matters. Compare business performance against monthly budget or compare performance and results.
If we are resource crunched, we tend to cut short our expansions or became reluctant to take up new openings and innovations. It will be hard to invest in add-on services without enough capital. Surely, money is the lubricator in every process. Better the supply of money more will be the smoothness.