Come rain come sunshine, everyday new businesses are emerging and growing at a fast rate yet even a bigger number is closing down due to various both preventable unforeseen issues that new businesses encounter.
Below are 6 amazing tips to help you prevent failure in your business.
- Cash flow management.
Cash flow problems are the second most common reason why small businesses go bust. Owners have to spend money to make money during a growth period, but this concept can quickly get out of control and leave you in a precarious position.
- Manage your cash carefully during these times.
- Turn to your channels that produce consistent sales and work to maximize their contributions to your bottom line.
- Negotiate favorable payment terms with partners and vendors too.
- Competition and how to responding.
They say politics is a dirty game but quit often you will find many playing dirty in market competition. As many small business owners are unprepared for the realities of fierce competition, and they quickly lose their way in an attempt to respond.
- You are there to solve a problem and your product/service does exactly that so keep your focus on what you do best
- Form healthy alliances and partnerships tat will help you grow your business and your stake in the market.
- Nurturing a great company culture.
Good content helps you build and foster stronger customer relationships. Your company culture is affected by everyone involved with your organization. As you grow and more people come into your company’s orbit, it becomes more difficult to exert control over your culture and you run the risk of having it derailed.
- To do this well, let your company values guide all of your decisions and hire great people who will embrace their role as champions of the organizational culture.
- With allies on your side at all levels of the business your culture will be allowed to grow and flourish.
- Delegate vs getting involved.
There are times when entrepreneurs need to get personally involved in specific decisions, such as big-picture strategic planning and hiring for key positions. Then there are times where it is important to delegate and trust that your managers will make the best decision for their team and the company. Every business owner must learn to get a feel for these situations and step in when needed without burdening their leadership team.
Another beautiful way to ensure everyone is doing what they are supposed to be doing according to their roles is by having systems that help you monitor this such as the ERP ( Enterprise Resource Planning) or human resource software so that even if you are not in the office.
- Keeping up with market changes.
If your company operates in a sector that experiences frequent ups and downs in demand and supply, you have to be prepared for constant change. Internalize the idea that disruption is the new normal and work on training your employees to be agile in the face of uncertainty.
- Apply change that will help you thrive and survive despite what will come along whether it means changing price rates or new inventions/ innovations.
- Deciding when to abandon a strategy.
Unlike a pirate you don’t have to go down with the ship (strategy) when it hits an iceberg (failure). Sometimes marketing channels that seemed full of potential don’t pan out and pay up. New product lines don’t catch on as anticipated and you have to rethink, re-strategize. Failures are an important part of business growth and owners must train themselves to recognize where they occur, divert resources accordingly and learn from those mistakes. Growth takes time and lessons are learnt along the way.
Being in business is tough but the we all have a chance to make it and become market leaders inn the different industries we are in , but just like chess,good strategy is key to win, and smart and timely decisions could move you up faster than you would have ever thought.
Robisearch transforming the world through innovation.
By; Waithera Mwangi.