Continued from 10 Pillars of a Successful Small Business
Small businesses that are responsive to changes in the marketplace are very likely to be strong and very successful.
This is because adaptation to changes in the market is key to retaining customers and staying ahead of the competition at all times.
Responsiveness ensures that your business is able to serve the kings: the customers better; secure their loyalty and even get these customers to become promoters of the brand.
It can’t be stressed enough that when customers are addicted to a brand, then price changes as well as heightened promotional activities by the competition will make very little or no impact on the level of patronage of the business’ product as well as the business’ position in relation to the competition.
People, in this context, refer to the staff within the business who are helping create, market and sell the products or services. Every successful small business cherishes their human capital.
When members of your staff are not finding any encouragement in working for your business, then innovation, productivity and competitiveness will reduce.
In fact, most of your staff might be considering leaving your enterprise to work for the competition, thus transferring all the skills and business secrets to the competition.
Retention of talents is critical to the success of any business and when your business is not able to achieve this, it will not be able to survive the competition and emerge successful.
The success of businesses lies in the budgeting. Prudent budgeting gives the business a clear success direction and ensures that the business optimizes the resources available to it.
Prudent budgeting also ensures that business trim wastage, and focus on areas that will yield maximum benefit for the enterprise.
Record keeping is very critical to a smart budgeting strategy. Businesses can use their budget to control expenses, monitor business operations and plan appropriately for the business’ future.
Innovations that will take the business to the next stage as well as the strategy for achieving these are all what a smart budget details.
So, for your small business to be successful, ensure that your budgeting is smart and prudent.
There is nothing as critical to the success of a small business as focus.
When small businesses have focus, they are able to deliver value to their target market segment in ways that are uniquely different from what the competition offers.
This in itself is a very excellent strategy to build loyal customers.
However, if your small business is not focused, the lean resources at their disposal will be used to target such a wide market, which will lead to huge wastage.
Diversification is good, but that’s for businesses that are already firmly rooted and have enough resources to target a wider market.
Diversification in itself has a strategy which still includes focus.
For instance, take a palm oil processing factory that decides to diversify into cassava processing. While this is entirely different from the business’ core activity, it is still focused on one activity which is cassava processing.
Focus might even demand outsourcing some of the business processes to competent partners to allow you to focus on your area of competence.
It’s what successful organizations do which enhances efficiency and resource optimization.
Frugality in Investment
Investment in expansion or diversification must be handled with the highest level care otherwise this could be a means of draining the business’ resources.
A lot of research must go into developing an investment strategy or taking investment decisions. Except the prospects are quite convincing, it might be too risky for a business to consider an investment option.
Successful businesses have mastered this strategy and that’s why their investment decisions almost always turned out to be very gainful ones.
When a small business is prudent in its investment decisions, its balance sheets will be very healthy leading to more investments from eager investors, business expansion, greater productivity and more returns on investments as well as better position in the marketplace.
As always, there are tons of other keys to building a successful small business.
These ones listed here however, are to guide your thoughts and actions as you strive to build a successful small business which will tomorrow emerge among the multinational corporations that create enormous employment opportunities, generate tremendous wealth and prosperity and help build a more inclusive society.
If you have any comments or know of other pillars which you believe are very critical to building a successful small business, please leave them in the comment section below.
Good luck on your entrepreneurial journey.
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