When you start a business, you are the captain of your ship and the master of your destiny. Your business moulds the way you perform operations. Your one decision can either take your business to new heights or lead to its shut down. Therefore, every decision requires to be taken with due consideration.
When you are a new business owner and setting your business for the first time, you start like a superhero. But your stint is short-lived, and you soon face the reality that running a business is not a child’s play. As said earlier, you need to take decisions after keeping all the things in mind.
One of the main reasons why most 80 companies out of 100 fail after starting is lack of planning and financial resources. Here, we will discuss the top steps to implement in the business to ensure a successful entrepreneurship venture.
Planning: Key To Everything
When they commence operations, many SMEs (Small and Medium-Sized Enterprises) face uncertainty due to their incorrect planning and underdeveloped business plans. SMEs majorly fail as they don’t have a clear vision about where they want to reach or what they want to achieve in the coming time. They don’t have plans that can guard them against the potential crisis.
Now, as per the data, most start-ups fail in their initial five years of existence. The reason being they avoid the planning phase as they find it unnecessary. However, reports also point out that businesses with comprehensive business planning have run successfully and garnered good profits.
So, it is imperative that you plan for success, and not just once but time and again. This means that once a business is started, its goals and vision changes. You need to update your planning as and according to the business environment; this will help in running the business efficiently.
Location is Important
To put it simply, location equals convenience. It is imperative that the business location should be a place where the buyers can easily come. Some even say that a business’s physical location plays a vital role in the overall growth of a business.
So, it is absolutely very important to choose the location only after considering the customers’ convenience and logistic company in nearby location for machinery and equipment need. Besides, employee satisfaction is also vital.
It goes without saying that no business can thrive without adequate funds. Many business owners start the business with their savings and aim to recover their savings in the form of business profits. However, not every business owner is capable of turning their business profitable. Hence, they lose all their money.
One of the significant reasons why most business owners are capable of turning their business profitable in the long run is insufficient money. In terms, a business may be running good and can generate enough money to support business operations. However, to expand operations and business, it requires an additional infusion of money that the business owner may lack.
Insufficient funds lead to an inability to strategize plans into operations. Sufficient capital and working capital is required for the longevity of the business.
For this, you need to keep the revenues realistic. A period of two years is expected to a timeframe to set up business operations and start recovering from the initial business set-up cost. It is imperative to monitor all the expenses closely and set up credit facilities with dealers and suppliers. There is a crucial need for a contingency fund and plan.
Or you can also avail a business loan. There are numerous lenders in the market that offer SME and MSME loans at easy to meet eligibility criteria and minimal documentation. Besides, you can also use a business loan calculator to determine the EMIs you need to pay towards the loan to ensure that you make a well-planned decision.
Skills and Knowledge
To run a business successfully, skills and knowledge are of paramount importance. You need to possess the skills to run a business venture efficiently. However, it is not always possible that you would be able to handle all the business tasks competently. So, there is a need for a trustworthy team who is capable of leading the company towards victory.
Nevertheless, ineffectual leadership or lack of management skills may prove to be detrimental for the business. Thereupon, ensure that there is proper management of all the operations, and there is never a lack of proper guidance. Keep on reminding your team the long term visions and goals of the organisation, so they all collectively work towards achieving the same. Recognise the shortfalls, work towards correcting them, and appoint skilled staff.
Know the USPs of the Product
The product or service that you are offering should solve the problems of the community or target audience. So, hold on the same values throughout the tenure of the business and never compromise on them. Later, if not immediately, you will get the rewards for it.
A lot of entrepreneurs say that they have tried up a lot many times but have failed. So, you are suggested to wise up and make the above mentioned simple changes. These changes are fail-proof steps to a successful business and will surely ready your business for the fighting it deserves.
Kanika is an experienced and knowledgeable financial advisor, ready to work with you to ensure you and your business future. She also emphasizes the need to adjust investment plans as your goals and needs change. She can help you get business loan, and other government msme schemes like Mudra Loan .