Businesses start with an idea. Some ideas linger. Some would start with just a glint of strategic location, a marketable asset or even a trendy hobby. The end goal of which is to turn it into something bigger, useful and profitable. There are a many challenges of building a business and young entrepreneurs are aware of it. There is the limitation of resources, capital, profits, talents and time. There are also external factors that add extra challenge such as existing competitors who are already ahead of the game and are better equipped than you.
Despite the fact that a new, innovative product or service is more beneficial, the market may not be aware of it, which results in customers that are not informed of your product or service which leads them to an inaccurate choice. For the business, this will lead to question on how to create something out of nothing and how to develop initial success turn into continuous growth. Here are principles drawn out from dealing and working with big companies of varying sizes.
1. Businesses employ a mixture of various strategies, execution and competitive advantages in attractive markets. It is necessary that one customizes its operations and financial models to maintain production and provide sound financial decisions for the company. This will also allow the business to tweak certain parts of the operation to become more efficient.
2. As any business starts with an idea, such idea should be backed up with effective action plans that targets on creating value for the customer. Develop customer loyalty program as a way to recognize a customers’ continued patronage on the product or service availed.
3. Test and learn approach is an effective experimental test which follows a set of practices that enables the business to receive real-time customer feedback and response. It also determines the measures on the return of incremental investment.
4. For larger companies, they can provide more and better ways of improvement for the business in terms of machine, capital or resources. Although, it can be pointed out that they often lack management talent, incentive programs and strong organizational skills to foster entrepreneurial growth. Linking business approaches with an entrepreneurial value and culture allows a long term business significance that is fostered with loyalty and passion from the management team.
5. Excellent strategies to consider involve comprehension or awareness of the facts regarding customers and markets. Management team can bring into perspective of the best strategy if they can connect with the customers’ needs and market requirements. This can be brought about by establishing a unique branding of the product or service or how the business treats the customers.
6. The value of the customer should not be under estimated. Any business should identify the value of a customer as a core to any business strategy. The customer may not always be right but his feedback is important in the evaluation of a certain product or service. On one hand, not everyone can be your customer but they can also serve as referrals to future customers you will be dealing with.
About the Author
“Murray Priestley has 25 years of commercial and asset management experience having served in board, CEO and senior executive positions with a number of global public and private companies.”