Growth and development
The goal of every entrepreneur is to grow a profitable business, so it’s not bad to think about growth and development in every position and place where your business is located.
In fact, it means all the dos and don’ts in the form of strategies that make the business better. Including profit increase, income increase, business expansion, strategic partnership and so on.
But there are a number of issues that can derail the business from its path and goal.
what things
Lack of recognition from competitors
Mayer says, if you don’t know who you are competing with in business, you will have a hard time growing.
There is competition in almost every activity, so if we don’t know what our competitors offer and how they work, how are we going to differentiate ourselves?
Failure to learn about competitors and separate from them will stop your growth. So you should do industry analysis to have a correct understanding of the market opportunity in your sector and industry.
The customer needs a reason to change (stay) and the only way is; You provide the right reason and offer to the customer.
Poor understanding of the customer
At the beginning of the path, you need to know who is your target market? Do you reach a specific group of customers? How many times do these customers buy from you? For example, if your product is only needed once a year, you need many customers to cover living expenses and business expenses.
It is a mistake to do market (customer) research once and never do it again. Over time, as the work progresses, you may notice that the demographics of your ideal customers or target customers have changed. So if you expect growth, you must know the market well.
Keep in mind that you should collect data and information from the customer, survey and talk to them in order to better understand the customer and provide a better answer.
Lack of funds
There is a famous sentence that says; You have to spend money to make money.
This sentence applies in the business world. Naturally, enough money and capital is needed for the beginning and initial stages of the business so that the business starts generating income.
Likewise, in the later stages, when you are going to grow, you will need more cash to reach new audiences and have more market share.
But how to make sure that the funds needed for growth are available?
Be sure to check the financial statements (balance sheet, profit and loss statement and cash) constantly, to see the gaps better and faster and plan how to reduce them.
For example, if payments are made late by the customer, to encourage timely payment, a special bonus, discount, etc. believe
Even the smallest numbers on the balance sheet can have a big impact on the business. Because assets never have the same value as they were originally purchased. One percent of their value should be deducted for depreciation.
For example, a company may report a certain number as the income obtained; But how much of it is real cash and how much of it is accounts receivable should be checked carefully. Profit before tax, profit after tax and profit after interest, depreciation, tax and operating income are important numbers that give shareholders and management a lot of information about the state of the business.
Sincere
@startup_30T
This post is written by Rimaazz1