Despite the negative news we hear so often about the increasing number of small companies closing or moving out, the situation really isn’t that bad.
Many small-scale businesses are founded each year. A good proportion of them has learned the fundamentals of what it is to get through the initial beginnings and grow into profitable enterprises.
But what components or elements are essential to the success of entrepreneurs and small-business owners? Innovativeness, timing starting-up capital, product enhancement along with a solid team, and so without stopping. Yes, I know it’s all real, but I’ve found that it’s not very helpful when you cannot identify all the components and put them in perspective.
While many businesses might be operating in the same field, each business has its own unique business model that it adheres to. Consider it for a second… They may be required to alter their strategy periodically, and yet they’ve discovered the perfect “recipe” that is working for their business.
How do you create the “recipe” for your business’s success? I will provide a brief description of my business model and use the model as an example, so you will comprehend what I am talking about and work towards implementing your own business model. Why? Because if your model doesn’t begin to produce results within a brief period of time (within about one year), If it doesn’t, then you’re not making any progress as a business owner.
The business plan I use (recipe) is in a succinct manner. I offer computer-related education, and therefore I am working in this field. It’s a very competitive field, and my strategy is to concentrate on one-on-one training and more advanced graphics programs such as Adobe rather than Microsoft. It’s as easy as that and has worked for me over the last 18 years. How do I stay alive and keep my business going each year? First, because I’ve discovered the formula that works for me; however, the second reason is that I have classified all factors that contribute to success into four P’s: 1. Principles, 2. People, 3. Passion, and 4. Profits.
If you fail in one of these four areas, your company will be in deep trouble, regardless of how profitable your current business model is. If you fail and make a mistake, you’ll be heading for a downward slide.
Let me now help you comprehend as clearly and swiftly as possible the meaning of the four Ps.
1. The Principles of the Organization:
These should be the fundamental values that guide you to carry out your work daily. Every single minute of your day, you demonstrate the value of reliability. My mentor in business and coach said to me that trust takes time to develop. However, once it’s damaged, it’s like a horse rider who can saunter away at you in a flash. Your reputation as a business is crucial, and there’s no hiding place. If you have a bad experience or product, it can go viral on Facebook like a raging fire and will cause people to not back your company. People trust people who are trustworthy and would like to be part of an atmosphere of honesty. How trustworthy and honest do you appear in business transactions. Keep in mind: “Little white lies” are a sign of untrustworthiness. These “little self-justified, “white lies” are the match that will burn your company until it is ashes. Here’s a phrase I’ve developed for my own lifestyle: HONESTY IS THE BEST Policy.
2. People:
You’ll notice that I’ve put the people first and Profits 4th. If you make Profits the second priority in your company and you’ll soon realize that clients and customers won’t be able to support you anymore. The Customer is King. Keep on top of the needs of your customers and provide the highest level of satisfaction to your customers. Do not bombard customers with SELL, SELL SPAM, SPAM and SPAM. Establish a rapport with your customers and pay attention to their needs. Then you can adapt and increase your customer base. The old-fashioned “make your products and people will follow” are over, and unfortunately, so is this mindset. Today, the quality of the product is a fact. Do not present “short-cuts” to your product, and you’ll rapidly lose. Customer service, satisfaction with customers relationships with customers that you need to concentrate on above all else. This can be made more scalable through the help of social media as well as websites or blogs. Therefore, it is important to put people first over profit.
3. Passion:
You should be passionate about your business.
It should be a blast to work. Your passion can help you get through difficult times and convince people to join your team and work with you. It isn’t something you can teach. And it must be maintained every day.
Nobody is going to be your greatest fan than you. There is no doubt that you’re your own biggest fan and the biggest fan of your company. You should develop your habit of inspiring yourself and encouraging others. This will allow you to stay in the loop during the ups and downs which every business has to go through.
So it’s your responsibility to develop the abilities and habits necessary to stay in good shape and on the right track every single day.
4. Profits are the motto of the game.
Profits that are earned monthly are the essence of the success of a business. I adhere to the motto that says that Turnover is a necessity, but Profits are a sign of sanity. It is not possible to increase your business’s size too fast and not be able to keep track of your profits. While cash flow and turnover are crucial… If you’re an entrepreneur or small-scale business, you should not be enticed into thinking that making money in the first year isn’t significant.
The discipline of financial management, the ability to adapt to cut your losses in the early stages, and recognizing the importance of efficiency are all concepts that should be part of your business’s blueprint. Businesses that fail to make an income or hide their earnings using “clever accounting” are likely to find themselves in trouble (Olympus or Kodak are two recent examples that spring to your mind).
Running and starting an enterprise that is successful is rewarding but also difficult. The path to success requires dedication, focus, and determination. But, success won’t happen overnight. It requires persistence and the ability to stay constant in difficult environments.
