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5 Successful Approaches to Starting a New Business

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5 Successful Approaches to Starting a New Business

Mon 8 Nov, 2021 Business and Organizational Purpose Ulari Nwaogazie

If you had any plans to start a new business post-COVID -19, you may currently be feeling that your dreams have become impossible to become a reality. Especially amidst COVID -19 repercussions and ongoing changes. Existing businesses have had to re-evaluate their existence, strategies, and key priorities albeit yours that is just at the birthing stage. The impact of COVID 19 on existing businesses included a decrease in office cost, changes in revenue, renegotiation of contracts, Cancellations or reduction of marketing and sales cost, reduction in the number of customers, and reduction in the number of employees, or working hours. These are changes that would obviously influence decision-making as a business starting during or post the pandemic.

Nonetheless, you may be surprised to know that several new businesses have been birthed during these times also, so your dreams can still come alive!  But, now despite having great enthusiasm for building your new business, good ideas and strong commitment, and big ambitions it is a given that each day you have asked yourself the million-naira question, how do I go about building this business?! Now asking these questions is valid but getting the right answers to this question will determine how far you go in your business venture.

Experienced entrepreneurs will agree that having a bank load of funds to start a new business only results in a minimal fraction of their critical success factors for running a successful business. Quite frankly, so many businesses have started with adequate funding and they still failed within ten years.

Now more than ever other key success factors need to be considered when setting up your business such as innovation, data analytics, and insights, digitization, process automation, collaboration, and marketing amongst others. Like every aspect of life, there is no one road to achieving success in your business venture. Some of these approaches discussed may also not apply in the pattern as other businesses or apply in the same time frame. Let go!

Start Wide then Narrow Down

Do not think that you are a bag of confusion when you start your business with a wide variety of offerings. Commencing your business with a broad portfolio or suite of services, products or solutions can prove strategic. This broadness allows you to identify through a pipeline format what works and does not work, what sells and does not sell, what you are good at as a business and what you are not good at.  Come up with multiple service lines, the product then narrows down and scale. Research and Development (R&D) is not a term that should only be familiar to “big” corporations. Every start-up needs this team in whichever format they may be because,

In business, extinction occurs when ideas and solutions do not metamorphose or evolve!

Collaboration and Partnerships

As a start-up, you may have all the ideas, skills, and expertise but lacking in the resources to hire the full team you require to sell the business solutions for your business, what do you do? You partner!  Although you can build your business without having strong collaborations with external partners, having these partner solutions under your portfolio and selling them could be helpful in expanding your business offerings. This further opens you up to markets and networks which may not have been available to you prior to the partnership.

The people in your ecosystem are good determinants of how far you will go in business.

Ideas are Cheaper from When Sourced from Within

As long as you have taken out time to hire right, both employees, directors, advisory board, etc., you have a good source of ideas from within your team so always use it. At this point, the team could potentially have a strong capability from within to support ideation, innovations, and strategy formulation. One of the ways this can be easily achieved is utilizing goal setting and measurement tools such as Objectives and Key Results (OKRs).  Everyone in the team adopts an incubation mindset, where each contributes and ensures the progress of the business objectives. Each objective is assigned a leader who drives the achievement of the goals with support from another team (s). Over time the team is able to assess the objectives o goals that have not had the potential for success and eliminate them early in order to ensure that focus is maintained.

Visible Accounts and Strong Accountability

Your business at any level requires funds to take off but requires accountability to survive. Research shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more. approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.1 Of course, businesses require a constant stream of revenue to continue operations, but sadly, only 40% of small businesses make a profit.

A study shows that 40% of small businesses make a profit, 30% come out even, and the remaining 30% lose money. A different study found that 84% of small businesses reach profitability in their first four years. While it is difficult for a business to survive in its early years without making a profit, not implementing an effective cost measurement and management would mean a faster death for your business. Now the question is, how many businesses can survive 4 years without profits? Of course, only a few.

And the problem, most of the time is poor management of cash flow and unfortunately, most startup entrepreneurs in Nigeria lack basic accounting skills.

Poor accounting practice will put any business on a straight path to failure.

Be Armed to the Teeth with Market Intelligence

A mistake made by most budding entrepreneurs is that they lack in carrying out effective market intelligence on their industry, market, and competitors. Market intelligence offers a 360-degree view of the market which includes information and insights about various stakeholders such as the customers, competitors, market, and regulatory authority among others. With the information gathered your business is able to make better decisions which will enable the management and team of the business to manage their customers, receive feedback, develop pricing strategies, devise a marketing plan, and ensure effective implementation. It also offers actionable insights that facilitate informed decision-making, help identify growth opportunities, drive business profitability and operational efficiency.

There are several benefits when market intelligence is applied to your business.

  • Enables efficiency and effectiveness in your business

Drives operational efficiency by identifying the process gaps, providing real-time information, and devising strategies to mitigate potential risks. Moreover, it drives consistency, reliability, and responsiveness across business processes and operations.

  • Gives a better view of actionable data

Organizations that are agile in nature and respond quickly to the market changes gain a competitive edge over their competitors. In some cases, businesses can enjoy the first-mover advantage, if they have the right data, accurate and reliable insights, and an effective strategy in place.

  • Improves Customer Retention Capabilities and Upselling Opportunities

The adage customer is the king still holds true in today’s market scenario. Market intelligence solutions help organizations to adopt a customer-centric approach, work closely with their target market, and drive customer loyalty. By understanding their behavior, shopping preference, and addressing their needs, businesses can increase the customer satisfaction level.

 

As an extra, bear in mind Consistency, Consistency, Consistency!

Consistency is a key component to making money in business. You have to keep doing what is necessary to be successful day in and day out. This will create long-term positive habits that will help your business grow, thrive and sustain itself. One day your beautiful business idea crafted in your mind would become a generational and successful business!

 

Begin your adventure toward starting or managing your newly created successful business by sending an email to clientservices@myrtlemcltd.com .Our team would be more than happy to hold your hand and provide guidance in this process for you.

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