Up to 50 per cent of small businesses does not make it past their fifth year. And by the tenth year, only 30 per cent will still be running. That is just the harsh reality of entrepreneurship in the current times.
So, what makes some businesses fail and others to succeed? For the most part, running a successful operation comes down to how to handle routine tasks. If they run smoothly, chances are the business will be both efficient and effective in its agendas.
The following article will discuss the top five tips to help you run a smooth operation.
- Stick to Your Specialty
The opportunity to fulfil a particular need in the market is what usually kick starts the entrepreneurial process. However, being overly-ambitious and attempting to meet other needs can impede your ability to cater to the demand that got you into business in the first place. You will spread yourself too thin, therefore, running the risk of providing lacklustre products. As such, you must stick to your original goals until it is time to diversify.
- Try to Under-Promise and Over-Deliver
While you might be the best at what you do, try and not over-promise. Let them know that you are committed to handling their needs. When you overpromise, however, you run the risk of raising the customer’s expectations too high. Thus, even if you do a good job, chances are they might feel they did not get what they were expecting.
On the other hand, when you do not use superlatives when telling the customer what you are going to do for them, doing a good job is likely to make the customer more impressed by your work. In doing so, you are likely to make a loyal client. In a nutshell, you should always let your work do the talking for you.
- Keep a Good Cash Flow
Understandably, your finances will not always be in order, especially if it’s a growing business. However, do not let a temporary cash problem mess with your operations. This is why you should look into small business loans. Whether you are looking for a loan to buy a business and diversify, or you just need cash to take care of operations, a small business loan will come in handy.
Nonetheless, since borrowing is a risk, be sure to have a good grasp on your financial situation, so you are able to channel that cash effectively.
- Embrace Technology
A recent survey revealed that approximately 64% of all business owners wish they had taken advantage of technology innovations at some point. The fact of the matter is, if you have a need to satisfy, there is more than likely a technological solution that can help you fulfil that need better.
Business owners often fail to utilize such solutions due to the initial costs of acquiring those technologies. Nonetheless, it is necessary that you first perform a cost-benefit analysis to see whether it will be worth it.
This is the practice of getting your processes handled by qualified and experienced professionals without having them on your payroll. For example, instead of having a full-time bookkeeper, you can outsource your accounting tasks to an independent accountant. The same goes for your IT needs.
Why outsource? Because you will get top quality services without having to hire full-time professionals, which usually cost more.
Success in business is typically determined by how efficient and effective your business processes are, especially if you already have a good product. Have you been in a rut lately? Check and see whether you have been applying the above tips correctly.