WHY DO BUSINESSES FAIL? AND SOME TIPS ON HOW TO BE SUCCESSFUL
EXCESSIVE PRODUCT OR SERVICE DIVERSIFICATION
How to be successful in business? Would you agree that often businesses, in order to obtain a higher income, undertake more than they can accomplish? Therefore, it is worth noting that it is best to start with one or a few products and services. Only when the existing goods or services are of high quality and generates profit, all processes in the company are organized as a “clock mechanism”, accurate and clear, it is possible to start providing additional products and services. There are several reasons why it is worth starting with one or a few concentrated products or services.
To sell a bigger amount of goods or services, you must spend the appropriate amount of money on advertising. Thus, the money spent on advertising for several products may not bring such benefits as promoting only one product. Practice shows that the more products or services you offer, the more problems you must deal with. For this reason, quality can be affected. Sometimes we can get a better quality and profit ratio while working with one or more products. Thus, the expansion of an assortment is recommended only when the company is able to provide better quality services with existing resources.
BOTTLENECK
“Bottleneck” is a disturbance in the company’s processes, which interferes with steadily and consistently performing tasks. From my professional experience, I have learned that for the successful growth of the organization, it is necessary to find a “bottleneck”, and remove it. When a company does not have a “bottleneck”, it naturally grows and expands. Stick to the principle: there is a solution to any problem. The only question is how much time and resources it will take to deal with this problem. Generally speaking, any business is created to solve some kind of problem. Effective problem-solving is the key to success.
RESOURCE MANAGEMENT
Proper resource management can become one of the reasons for the company’s revenue growth. I have noticed that sometimes the residues can become a source of income. It is worth noting that with an Organisation growing purposefully, starting with one or a few products or services, each of them brings profit. Otherwise, business often becomes a loss-making activity, and either you must stop it or find solutions to turn losses into a profit. It is important to manage resources properly, as this may lead to a shortage of working capital. Sometimes it is enough to set up business processes correctly and the organization can successfully expand.
EVERYTHING HAS ITS OWN TIME
Sometimes businesses fail at the very beginning because profit is not used for business development but rather spent on goods and entertainment. Therefore, I advise you not to rush to spend earned money. Think about reinvesting your profits, creating a successful business, and only then enjoying the fruits of your work! I think we could all agree that today’s businesses often crash because they seek only quick profit without love or a long-term plan. Such businesses usually offer cheap, quickly produced goods or services, and disregard quality entirely. I see quality just like love. When you love what you do, your will naturally seek that your products or services become the best in the market.
ALL OF THIS CAN BE SEEN AND MANAGED BY SEEING 5 KEY COMPONENTS OF THE COMPANY’S MANAGEMENT
1. Business supply chain organization & management
BUSINESS ORGANISATION is the core that encompasses all the processes in the business. For a business to succeed, the processes of that business must create a closed circle of three basic elements – BUY, SELL, and CUSTOMER DESIRE. It is important to emphasize that for the wheel to be successful, there is an essential condition: satisfied customers and profit for the organization.
2. Human resource management
When all the steps in the business circle are already clear, it is time to delegate tasks. People are your hands to do tasks within a process you built.
3. Taxes
Discuss your plan with an accountant, financier, and tax advisor to help you minimize tax payments and plan the budget.
4. Before you start – ensure places of higher risk in business
Remember, insurance is a creative process. Sometimes, if the insurance company does not have a solution and you do not see the way out, you can consult a competent lawyer. Practice shows that many solutions already exist in the market.
5. Marketing
From personal experience, I know that the most important thing when starting a business is to focus on direct advertising. This means offering your goods or services where they are in greatest demand.
ENJOY WHAT YOU’RE DOING
Enjoy what you’re doing. Even if you fail, you will know that you tried and the experience will aid you in succeeding next time.
A way to success is to give everyone what they want – a sure way to success is not going into conflict with people you meet on your journey, but cooperating and gaining contacts, even if your interests sometimes clash.
Do your best – simply because of respect. Earn respect. To gain respect, you must do your best in business. It must come naturally, with love for what you do. That is how you earn the respect of your clients and partners.
THE WAY TO SUCCESS SOMETIMES HARD. BUT IT IS IMPORTANT NOT TO GIVE UP, TO SEEK AND BELIEVE IT – THEN YOU WILL DEFINITELY GET TO THE TOP
We are all small stars doing big things in this universe. The all-stars of business – Richard Branson, Elon Musk, Steve Jobs – all started from small businesses and grew up to be big and legendary. And so, can you.
REMEMBER: THE MAIN PURPOSE OF BUSINESS IS TO SATISFY THE CLIENT’S DESIRE
