Two Simplest Recipes to Grow your BusinessKhulekani Manyepedza
Growing your business? Can you take the heat and give more to your business than you would take?
Big Businesses Sell More
GROWING A BUSINESS CAN BE a daunting task. It can’t happen without selling.
Selling. Businesses which win do it all time. They put up a fierce fight to win more customers. They go all the way to even snatch many a customer from their rival’s nose if need be, just to get past the survival phase.
They do all sorts of things, things like hiring the best sales guys in town. Opening more regional branches.
Why do you think they do this? Simple answer: They need money. Plenty of it.
Let’s take a multi-national company of Coca-Cola’s caliber.
Their human resources survives on money. Like wise their production department and their security department.
The entire puzzle gets filled up with money. It’s hectic nobody can avoid it.
Everybody sits around the table at the fall of each financial year hoping for more money to run their operations.
Where is this money got to come from? their sales people can’t hide around anymore.
They are the answer here. They have got to work even harder year-in-year-out to keep this huge
This is not just catchy jargon assembled nicely. Any business that doesn’t have the ability to move its products to the paying customer’s hands is doomed and its death is lurking just near by.
More so, those that sell less remain average.
And you have got to concede, selling is hard. Perhaps that’s why many business people find it easier to go out to the government for money rather than to go out and convince the customer that their ideas are worth paying for.
Is yours worth the money? Yes?
Then it’s going to be necessary to give the timid you a harsh kick and say, “I’ve got to do this selling thing” Today.
Smart entrepreneurs chase the customer.
Their full understanding is that the money they need is in the customer’s wallet.
Obviously you can’t match the big boys with budget. Perhaps that’s why you often think that the first thing you need for your start-up is something like a strategy and may be a business plan and a list of accountants to choose from. The truth is businesses survive on cash. To a business, money is oxygen.
What kills companies immediately a recession looms? Surely it’s not competition or a dozen unnamed factors. surely any business could go on and on if their bank balance allowed them.
But lack of money brings businesses to their knees. What’s the big lesson here? Instead of sitting around strategising and planning endlessly, go out and look out for one more customer.
One more customer, one more sale. That’s the steroid that fuels the growth of any business.
This is especially true for you as small businesses owner because one customer makes a bell of a difference.
They paralyze overheads
Essentially, if your business is going to scale up, you’re going to have to think thoroughly about making money than spending it. This is fundamental to any size of a business.
when you are starting small you’ve got to work hard to keep overheads to a minimum. It really pays to scrimp and save. Each time you resist the edge to spend a rand more is the time your business saves a rand more.
That’s how profitability happens in the long run. The important word to understand here is growth.
Winning businesses live cheap. When costs are less, profit is easy to measure up.
Lean business hang on this thread. The big rule to keep in mind, of course, the Golden rule of never spending the money you don’t have. That temptation arises all too often with justifications, mostly when you’re anticipating payments from a customer trust.
This is mere prudence.
Customers could default on payments and you could be in shallow waters sooner than you expected.
It also helps to iconize yourself less. It’s only a foolish customer who will judge you by whether you come around in a private jet or not. The customer doesn’t care much what model of car you are using to drop his goods.
He is so much concerned with the promise of delivery.
As well, hiring executive vehicles around does no mercy to your finances. You probably have a friend with whom you could share fuel if he accompanied you. Ever thought of that?
If your cash-strapped business takes more from its coffers, chances of you taking it from the edge will be minimal.
Likewise, beginning with flashy office and furniture somewhere in an expensive suburb might sound like a good idea when you are starting, but so long as it’s not urgent it should not be a priority.
If need be, it’s wise to go for something neat and presentable.
With all these, here’s a simple way of pruning the other non essentials:
—>Focus less on yourself. You are in for the long term, so focusing on yourself could just be another way to drain
the business of its hard-earned cash.
The best cell phone make, the best house, prestige, being seen. All these are just a weird way of defining success by many entrepreneurs around the world. It’s just another way of suffocating your business.
Don’t fall prey. Don’t dig needless drains for cash you so work hard for.
—> Be thrifty. Don’t waste money on things like a business plan. That’s just a compilation of assumptions.
If you need one, just sit down (anybody can do it) and sweat it out.
After all you understand your dream more than anybody out there, don’t you?
A business plan in down-town Johannesburg could cost you eight hundred rands ($80), and your business might need that money urgently in three weeks less.
There is no secret. Spend sparingly on legitimate things which will help grow your business.
Refusing to adhere to these little principles could be sand in the gears. A spell of gloom.
And this is Student Companion SA green advice: KEEP MONEY WITHIN YOUR BUSINESS AS LONG AS YOU POSSIBLY CAN. AS LONG AS YOU CAN