Ever wondered why half of the new businesses fail. What causes many businesses to bring shutters down just after launch? Of course, there are things that might go against it. Sometimes it’s the market volatility, sometimes it’s due to some unforeseen calamities like the coronavirus epidemic. Some businesses fail due to poor timing of the launch. There can be a slew of reasons that are outside our control. Even when things are in control, the majority of small businesses fail. This is because launching a business and growing it are two different things. Launching, I would say is far simpler. It is like kick-starting your bike to go on a journey to a destination. Scaling or growing is difficult. There are many milestones that entrepreneurs should reach to continue journeying.
Businesses need to be looked at from a practical perspective rather than a theoretical one. Like I had said in my earlier blog, in entrepreneurship, every day is a new day and new learning. Hitting a new milestone every day or every few months is very crucial in growing a business. You need to look into growing your network of clients, work on the scaling of operations, marketing your company and its products, acquire more funds, etc. It is now converting your business into a profitable model. You must work upon your milestones now. There are a few entrepreneurial milestones that every new business must look forward to achieving to successfully converge into growth.
Milestone 1: Work on a creating a profitable business model
What regular textbooks teach is that entrepreneurs should find answers to these questions: What is it that your client requires? How would you give that value to your client at the right cost? And finally, why do you want to be in this business? Till you know your clients' needs, how would you give them what they need? And these would determine your 'why'. 'Why' is not about profit but why means your purpose. What’s your cause, your belief? Why does your organization exist? This is the outside-in approach. Most businesses work on this model of growing a business. I would not say that this is flawed. It may work, it may not. But if you ever happen to observe successful companies on earth, they work inside out. They ask why, how, and what.
Why do you think Apple is so successful? Why do you think Apple is more innovative? Year after year after year, they are more innovative than all their competitors. Why is it that they seem to have something different? They are like every other computer company, yet they are market leaders. So what is Apple’s business model? Apple communicates like this: Everything we do, we believe in changing the status quo, we believe in thinking differently (why). The way we change the status quo is by making our products beautifully designed, simple to use, and user-friendly (how). We just happen to make great computers (what) Would you like to buy one? And that’s why not only computers but everything they make gets sold. That’s why they make profits. People don’t buy what you do, people buy why you do it. So the message to my entrepreneur friends is, 'work on creating a profitable business model that answers inside out'. Your goal is not just to sell to people who need what you have, the goal is to sell to people who believe what you believe. This is what will make your business profitable.
Milestone 2: Work on bringing the right kind of people around
When you first launched your business, it may be that you started out all alone. You were one in all managing everything like a superhero. But now that you want to grow, your next milestone must be to grow your network of partners. You may now need to build networks with individuals and organizations that relate to your business. This means you need to work with your suppliers, your product wholesalers, and retailers. Start networking to find out the right people that will feed your business uninterrupted.
Milestone 3: Work upon growing your operations
Once your business starts showing signs of growth in sales, you might need to expand upon your operations. You need to fine-tune production processes to ensure quality, hold down the costs of materials and labor, and cut costs that don’t add value to the finished product. You also need to build a good workforce. Let us get back to the earlier milestone, to explain why you need to start with why. Because your goal is not just to hire people who need a job, it’s to hire people who believe what you believe. If you hire people just because they can do a job, they will work for your money, but if you hire people who believe what you believe, they will work for you with blood and sweat, and tears. So start finding people who understand your purpose, your mission, and your goal. Get in place managers who are experts in marketing, fundraising, operations management, sales, etc. Surrounding yourself with the right workforce; the right kind of people will help you grow your business. Ours is a competitive business world. Hence you need to stay ahead in terms of technology too. Invest in technologies and software that can help your business run more effectively.
Milestone 4: Secure your authority in the industry
Now, that you have placed everything in place, it’s obvious that things are working in your favor. You have started reaping profit in terms of growth of sales. Your next target should be to become a leader in your area of work. Let yourself be known in the industry. Create the type of content that your industry requires and publicize your business. Arrange local events or be a part of local events that allow you to showcase the expertise you have in your business. Become a member of the groups that have a hold on the market. Engage with the leaders to become one among them.
Entrepreneurship is a journey, a process. As you grow, you will become a confident and astute business person. Your business can be one among the list of top-performing businesses in the world. Keep setting milestones in your journey and keep trying to achieve those with sheer focus and determination. Keep growing!
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Entrepreneurship