Did you know that 80% of new businesses do not survive this period? Ensures long-term success of your company with these nine formulas.
In most countries of the world, 80% of start-ups does not exceed the first two years of life. And the remaining 20% who survive, only 20% are over the first five years.
There are several reasons for this situation. Some are due to poor business planning. It is also due to the motivation of the entrepreneur, who after a few months you realize that the turn chose not correspond to their interests. Or even, businessman hoping to get more money to the project.
Sometimes, failure is the result of external factors that have more to do with market behavior. For example, changes in consumer needs, legislative reforms and the entry of new competitors. Hence the danger is that your business is left behind or simply given out.
Then, a common mistake that many entrepreneurs fall is clinging to follow the same course. This is because they are convinced of the future success of your project or for the love that you have. However, no time to take the decision to make a change of direction or to make the necessary adjustments to change rotation, every effort would end in failure.
To not be part of the negative statistics and ensure the permanence of your company’s long-term take into account the following tips.
1. Create a competitive advantage. Although the principle is very enthusiastic and has the greatest willingness to make things right, an entrepreneur must never forget two basic points. First, your product or service offers an added value that clearly differentiates it from the rest of the options market. And second, that before starting you have to perform a thorough analysis of what is happening in their environment.
Therefore, it is essential to analyze who your competition is, how it could change the landscape in the future and how open the market is the entry of new players. Maybe today you’re the only one that sells a certain item, but what if someone else hacienda? Go beyond and think: what would you do if the new competitor offered at a lower price and will add some innovation?
Remember that your business must always stay ahead and meet the demands of consumers. Otherwise, you will lose positions in the market.
2. Win the trust of customers. How to keep a steady flow of consumers to inject resources to your company through their purchases? To begin, we must build a solid foundation supported by the trust of customers regarding your offer. This is achieved with the combination of a product that effectively solve certain needs and with a service that makes people feel special.
The next challenge is not only to ensure that customers interact with your offer serious and reliable, but in maintaining and strengthening this perception over time. Should not, chances are you will leave and who will give them something that is best for them.
Successful companies are effective in meeting those needs until people do not express openly formulas. For example, Domino’s Pizza created a strategy to keep their customers happy by providing both the delivery of your product delivery, as the guarantee that always arrives on time.
3. Build an efficient operation. Monitor your operations and take permanent control of revenues and expenditures in order to avoid unnecessary costs. A poorly executed process can represent a significant loss of your profits. The cost measurement can detect areas in which large amounts of money and opportunity areas are spent to reduce expenses.
Usually in companies are no hidden costs, which sometimes are closely related to the efficiency of processes. Thus, losses may arise from the purchase of equipment that does not address, hiring labor due to production emergency days, wasted energy, billing errors and unplanned service, among others.
Moreover, do not forget to establish a relationship between quality and price of your products and services. In all areas of production or operation do not affect the differentiating your offer, try to reduce costs; however, in the areas that make it different, they must be under the perception that they have buyers, who pay an additional price.
4. Maintain a close relationship with the customer. The main problem is that entrepreneurs think their offer is the most forgotten and seek the views of consumers. Do not neglect this aspect. Maintain constant communication with your customers will help you learn about your tastes, needs, opinions and expectations with your product or service.
Therefore, learn to listen. Establishes channels of communication as basic as suggestion boxes or satisfaction surveys. In the end, all this will be the base to stay in the market and identify new opportunities for growth.
5. Be prepared to invest. Probably you not get as initially planned income or just have enough to pay your suppliers and employees. Prevents lack of capital will become the factor that forces you to lower the curtain or deter you keep innovating.
A company that does not have a vocation for continuous improvement and is constantly renewed in danger of stalling and being overtaken by their competition. So be careful and saves money to deal with possible eventualities. Above all, learn to manage your resources and destination to invest in those areas and projects that will generate more revenue.
6. Set goals and stick to them. Ask yourself if you want a business that only you have sufficient resources to fund the operation or if you ever plan to become owner of a transnational as Google. Note that the first years represent a challenge from cover expenses not covered to integrate a team of high performance.
The recommendation is to be persistent in achieving the objectives and analytical in order to bring the administrative part. Keep steady course constantly studying the market and adjust to the new circumstances. It is not about making drastic changes, but necessary to get to where you put your mind.
7. Keep a good attitude. Experts say that one of the main differences between companies that are successful and those who are not, is in the spirit of service. So, remember that all customers are important. Treat yourself as you would have them occasionally and resolve their complaints and suggestions. Do not forget that a person who was disappointed never return to your business, and the worst thing that can make you bad publicity.
On the other hand, also the personality of the owner of a business can affect the entire organization. As head or leader of a project prevents arbitrary decisions and assume a position of king. Create a work environment in which everyone can participate and put the shirt. There is nothing worse than a broken company inside. And when problems arise, do not look guilty, better find solutions.
8. Earn more customers. Avoid betting all your sales to a single buyer. The mistake much newly established business is dependent on one contract. What if you fall or not you manage to renew? One solution is to go for forming a group of customers to ensure a constant volume of consumption.
To do this, create alliances with companies or institutions where you can offer attractive packages or facilities to purchase your offer. This practice will ensure a certain volume of purchases per month. In addition, Diversification to conquer other market segments. For example, if you have an aesthetic in which you attend mostly women, thought to include other services such as haircuts for boys and men.
The key is to anticipate the desires of your customer, advice and provide new solutions before he asks.
9. Keep your eyes peeled. You cannot jump-start a business and think that by itself will find its way. Be alert to new needs that arise in the market, what your customers demand and the performance of your competition. This is not to copy, but to go a step ahead, detect threats and identify opportunities to explore.
Perhaps a competitor is planning a launch, so you have to be prepared so you do not take off guard. Face it with innovations in your product or service and not just enfranchises you in a price war.
Finally, never forget to analyze your abilities and know your own limits. In this way, you can develop the skills needed to turn your company into a market leader.