Strategic Keys to successfully grow your business (part 1)

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Setting up a business requires vision, focus and diligence. What is the ultimate aim of establishing a business? Simply, the main purpose of setting up a business is to maximise profit and minimise cost as much as possible. For as long as your outfit is not a “Non profit Organization”, it is paramount to seek to make profit as a “going concern”. Your business can only profit as it experience steady and successful growth in your niche or industry. If your business stagnates, it means you will find it difficult to “break even”. It thus means that your business growth of course equals your firm’s net earnings.

The following excerpts on business stats records will shock you:

? In the plethora of data released by Statistics Canada each year, about 145,000 new businesses start up each year in this country, and about 137,000 businesses declare bankruptcy each year.
? The Small Business Administration (SBA) keeps the stats on business failures and claims that more than half of new businesses will disappear in the first five years.
? World business Statistics show that 8 out of 10 new businesses fail within the first three years.
? A study done by Inc. magazine and the National Business Incubator Association (NBIA) revealed that 80 percent of new businesses fail within the first five years.
? Entrepreneur business stats show that 80% of new businesses fail within their first year both in develop and developing economies of the world.
? “Data from Statistics New Zealand indicates that 53 percent of small to medium-sized enterprises (SME) fail within the first three years.

It isn’t hard to do the math; the ratio is almost one failure for each start-up, and it begs the question: “How is it possible that entrepreneurship has so many casualties both in terms of money lost and lives often horribly upset?” Research suggests that two-thirds of business collapse is due to financial difficulties associated with poor financial management.

Here are some strategic key steps to help grow and sustain your business:
Market research:

Starting a business is a little like buying a car: You need to do some research before taking the plunge? First, figure out if there’s demand for your product or service. Do a competitive analysis. And create a plan to differentiate your “Unique selling proposition”.

Before you get the research lens on, you need to ask questions like these:

Is the market saturated? Does your city really need another hardware store or flower shop? How much money is spent in your industry each year in your area? Is there room in the market for one more business?

Does the market want what you’re offering? If you’re thinking of providing day care for dogs or a facility where people can cook a week’s worth of meals in a group setting, will anyone care? Or if you’re developing a new online service for day traders, is it something they can’t live without?

What’s the competition doing? What do they do well? What do they do poorly? What’s unique about them? Can you offer something different that’ll encourage customers to patronize you instead of more established businesses?

Can you reach your target audience? If you’re selling inline skates, are you opening in an area with a population of the right age and disposable income?
To maintain growth you will need to gain more business from existing clients and/or attract new customers. A targeted marketing plan, based on market research and knowledge of your existing customers, will help raise your profile and generate income.

To determine your strategy, ask the following questions:

• Are your existing customers growing with you or do they represent a decreasing proportion of your business?

• Do you want a few high-paying customers or a large amount of trade from customers who spend less?

• Do you want to offer incentives for repeat business or to recruit new customers?

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