Approximately 50% of businesses fail within the first five years of operations. Many times these failures are due to small oversights that lead to big problems. For you to run a business effectively, you must first understand what you and your business are about, and how exactly to make it work. There is room for mistakes, but you must be able to recover quickly, learn from them and avoid making them again if possible. The following is a guide to running your own business efficiently and effectively, and will help you better manage your day-to-day operations and consequently achieve your long term goals.
WRITE A THOROUGH BUSINESS PLAN
A business plan outlines exactly what your business strategy is, what your business does, your target market, goals and a number of other things. It consists of the following:
- An Executive Summary: as the name suggests, this is a summary of all aspects of the business
- The Mission Statement: dictates the business’ purpose
- Industry Analysis and Trends: a synopsis of your target market/industry and its trends
- SWOT: outlines the strengths, weaknesses, opportunities of and threats to the business
- Business Strategy: specifies the position of the business, the products and services to be offered, etc.
- Marketing Strategy: states how you will be able to inform your market that your product/service is available
- Sale and Pricing strategy: outlines how you will go about serving your customers and the cost of your product/service.
This document should guide your every business move, so it must be carefully considered and thoroughly evaluated before you begin operations.
Work with people you can trust
The business relationship, like all others, relies heavily on trust. If the trust between you and your team is mutual, it will boost morale and help your company to grow and progress.
Live your mission statement
Display it in your office, ensure your employees know it, and build your business on it. Your mission statement represents everything your business should stand for. By ensuring that it is fulfilled on a daily basis, you also ensure that the business is meeting its objectives. This will almost guarantee your business’ success.
Customer Service is KEY
A happy customer is a loyal customer, and without loyal customers you will have no business. Ensure that your service is as pleasant, convenient and helpful as possible and customers will keep coming back.
Monitor your finances
Make sure you are fully aware of your revenue and expenses, profits and losses and every other financial aspect of the business. If not, you may eventually end up with serious financial problems.
Running a business takes diligence and precision. Additionally, you must have a clear vision of your business’ purpose. This combination will guide you on your road to business success.
About the Guest Post Author
Christa Blair writes for Entrepreneur-Support.Com. She writes about how to become an entrepreneur and gives advice on how to run your own business.