Share, , Google Plus, Pinterest,

Posted in:

The bedrock for a successful business

Everyone wants to have a successful business but on average 50% of small businesses fail within their first five years. But why? We believe it is because the foundation that the business is built on is shaky. Here are four ways to build a solid bedrock for your business.

BEDROCK 1: The product

For a business to succeed you need to have a product that your target customer wants to buy. Therefore it is important to do proper market research before you launch your product. You need to identify who your target audience is. You then need to ask your potential customers what they think of your idea and if they have any feedback on how you can improve your product to satisfy their needs. When you have a clear idea of what your product will be and if it will potentially satisfy the needs of your customer you may go into production.

BEDROCK 2: The finances

Next, we need to look at the money. Many people want to start a business because they want to make money. But it is important to remember that the business needs money to grow and operate, therefore you should keep the following four points in mind when arranging your small business’ finances.

  • Open up a business account: it is important to have a separate business account so that you can see what you are spending your business’ finances on.
  • Pay yourself a salary: In essence, you are an employee of the business and you need to pay yourself a salary. This will ensure you don’t spend money meant for your business’ growth on your personal needs.
  • Pay yourself a bonus: Like with any business, when you are very successful or have achieved the goals you have set out for the business, then you can pay yourself a bonus. It is important to begin to pay yourself a bonus when you achieve your business goals. This will also help to motivate you to achieve your goals.
  • Set aside money for eventualities: There may come a time when customers will not pay you on time or your equipment may need to be repaired. It is important to create an account where you put money away for these eventualities.

BEDROCK 3: Your processes

When you start you need to look at the different process you will need to implement into your business. You will have to look at how your business is run and then create processes for each step in your operation. This will help your business to run smoothly. By creating processes for each job in your business, you can see how to make it more efficient and you can see what you are missing from the process. It is important to remember that a process document is ever-changing.

BEDROCK 4: Your team

It is important to remember that the members of your team help to enhance the company culture of your business. You should hire people who believe in your business ethos and believe in the goal of your business. Hire slowly and respect your employees. Give them opportunities to help you to improve your business and try to be as transparent as possible with them. By allowing your team to play an active role in the success of your business, you will ensure that they will become passionate about your business.

By building these four bedrocks at the start of your business, you will build a business that will outshine its competitors and be successful for many years to come.

Proudly brought to you by the NSBC.