There are common mistakes entrepreneurs make especially those who dive into a new business without proper research and necessary skills required. There are different reasons why 7 out of 10 businesses fail of which one of them is lack of proper market information, what do you know about the market you want to serve? Secondly, what do you know about the services or solution you want to offer? For me, knowing what your market needs are and what solution you’re to offer are very critical point.
One thing is to start a business and it takes another effort to sustain it. I believe before you start up your business you would have done your research maybe have few customers waiting for your solution(products). The question becomes what structure do you have in place to sustain your brilliant business idea?
- Structure:– Any organizational structure will depend on the company’s business objective/project, it could be services, manufacturing or nonprofit making organization. The structure helps define the roles and responsibilities of the members of the department, work group, or organization. It is generally a system of tasks and reporting policies in place to give members of the group a direction when completing projects. A good organizational structure will allow people and groups to work effectively together while developing hard work ethics and attitudes.Your organizational structure must be the one that supports operation.
- Set Goal:– having a specific goal will give your business direction, and making your goal resonate in the mind of your staff is crucial. A goal is like having a clear picture of the city you’re travelling to at a specific date and time. You start with putting structures in place, for instance processing you visa in time, pay for the flight, booking hotel and getting your luggage ready making sure nothing is left undone. Your organization must have a picture of where it’s going and how is going to get there and when it is expected to be there. Make you goal SMART.
- Release authority: – you have to release authority to the subordinate. As the CEO you must learn to delegate key functions to subordinate because this will help to build the moral and responsibility level. There are many benefit to delegation and release authority to subordinate which one of them is to fast track job process. Though you must make sure that authority commensurate with responsibility.
- Learn and unlearn:- as an entrepreneur learning is a continues thing, as long as customers knowledge increases, quest for new taste increases(the law of diminishing return), competition and technologies increases, you must learn how to adapt and adopt new systems, that is have a flexible policies to be able to adjust to changes immediately. Every entrepreneur must constantly research on what works for his company and what not. It is common to encounter losses once a while in business while trying different model or strategies. Being able to study the past business trend, analyze present situation and decide precisely what to do.
- Budgeting:-a lot of small business owners do not understand why it is important to have a budget for their business. There are two ways money flows in any business, is either inflow or outflow being able to budget for expenses are very important. A small business budget estimates both your revenue and expenses for a particular period of time. It shows how you plan to allocate your resources in the future. Revenue can come from sales, accounts receivable, interest and other sources. Expenses are what you pay out for materials, rent, utilities, payroll, marketing and other fixed and variable costs.
- Outsource: –you will agree with me that you do not need to know everything about your choice business before you start. Suppose you started a consulting business, helping other businesses to sale their product or services, there may be need to redesign your client’s website to make it responsive or do SEO for the site. You will think of outsourcing this job to specialized professional while you focus on how you optimize sales department, provide training on customers care, objective handling etc.
As an entrepreneur having put all this point in place, you should also learn to acquire inner success virtue pertinent to your business, have the mental strength to resist emotional failure don’t easily quit even when no one believes in your idea just believe in yourself and always learn even from your best staff.
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