Before venturing into a business, profitability plays a big part. Although the return on investment of any business plays a crucial role, it should not become the main focus. Some of the often overlooked things in business determine its failure or success. These are commonly known as success strategies. Let us look at some of the common strategies used by successful entrepreneurs.
Focus on Cashflow
Successful businesses give a lot of attention to the cash flow. An entrepreneurial firm that operates with negative cash flow is likely to fail. Negative cash flow indicates that the business is working on credit, which is an indicator of poor performance. To avoid the problem, the business should ensure that it cuts on expenses and focus on increasing revenue. One of the strategies used in this case is cutting on unnecessary expenditure. A business that keeps a positive cashflow pays its employees in time and pays any other bills without delay.
Getting Intimate With Customers
A customer is considered to be the most important person in a business. Their first experience determines whether a business survives or not. A common success strategy used by the best performing business is getting intimate with the customers. This refers to the process of interacting with the customer to get honest views concerning a product or service. Before raising prices of commodities, the business might get on the ground to get opinions from the consumers. Besides getting their views, it also explains to the consumers the unique features of the new products. Involving the customer before making a crucial decision allows you to gauge the likelihood of succeeding in the venture. It also gives you a better understanding of the market forces and competitors. For instance, customers will mention the unique features in your competitor’s products.
Business management is a diverse topic that requires a prudent approach. Before adopting new technology, you should do thorough research to ensure that it is reliable and effective. Alternatively, you can adopt the latest technology but still keep the old management tools in place. This strategy keeps the business running in case the new technology crashes. Organizations use this strategy in their pilot stage before implementing new technology in its management or operational line. The new technology eases the operations while the traditional management approach ensures that the business data does not get lost.
The current generation has a short attention span, which is mainly attributed to technology. Since you cannot run away from technology, the best thing is to adopt it. There are productive ways of adopting technology in business. For instance, if your business idea is to supply prescription drugs, you should develop a website explaining your services. You can also develop an app where people can make orders and get the same delivered to their doorsteps. People are also likely to trust a product which is made using the latest technology. Technology also eases the process of getting a solution to common problems. For instance, you might use the internet to get answers to issues facing your employees. However, you should avoid spending a lot of time on social media platforms unless you are looking for marketing tips. Research shows that 99% of the current successful businesses have one form of the latest technology or the other.
Focus on Quality
When operating a new business, you should put a lot of emphasis on the quality of products. Quality refers to the satisfaction that people get from a particular product. You are likely to get return clients and referrals from old clients if you offer quality products and services. However, research shows that a significant number of businesses invest a lot in quantity to make more sales. Although this strategy can work for some time, it does not last for a long time. When you focus on quality, it means that you pay attention to the needs of clients. Quality products and services give you an edge over other people in the market. As an entrepreneur, you are tasked with the responsibility of finding the missing things in the market and fixing them.
A common success strategy used by entrepreneurs is the cultivation of a brand. Specialization refers to the process of identifying an area of interest and focusing on it. For instance, if you intend to start a sports training facility, you can specialize in a sport such as basketball. When you concentrate, it becomes easy for clients to spot you. Specialization also ensures that you perfect your skills in a particular area. If you want to focus on the entire niche, you can create various departments. Specialty is also a valuable tool used during lending. The financial institutions assess the potential return on investment from renowned businesses to determine the amount of loan the applicant qualifies to get.
Giving Freebies to Customers
Established businesses always come up with freebie and promotions for their customers. The firms use this strategy to make customers feel valued. When starting a business, you might not have enough money to give discounts to your clients. However, you can still come up with decent freebies to new customers or those who refer new customers to your business. Some of the freebies you can offer to your customers include eBooks and magazines. It is not the size of the freebie that matters but how it is presented to them.
As an entrepreneur, you should always come with new features for your products. You should always have an alternative thing to use on the product in case people copy your original strategy. That is what makes entrepreneurship survive.
Entrepreneurship is a vast field that people yearn to venture into. Partly, this is fuelled by the misconception that it has high returns. What successful entrepreneurs don’t tell the people is that a lot of sacrifice is required of them. The high level of discipline required in entrepreneurship is what makes many people opt-out.
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Josh Felber is no ordinary serial entrepreneur. Not only has he penned two bestsellers (one with Brian Tracy and another with Steve Forbes), he went on to win two Emmy Awards for executive producing the acclaimed documentary Visioneer: The Peter Diamandis Story.
Josh has appeared as a guest expert on NBC, CBS, ABC and Fox, and is the host of Making Bank. Josh is focused on challenging himself and those around him to achieve consistent excellence. His mission in life is to help over 100 million people design, develop and deliver their passions.