Experts have observed that not all experts in a particular field of business can make great business owners.
This, according to them, is because experience has shown that most start-ups fail within a short period of commencing operations. They attribute this early business insolvency to poor management.
A proper understanding of good business management techniques, according to experts will prevent premature insolvency of start-ups.
According to them, new players in an industry are susceptible to mistakes especially when they lack the requisite experience, but the most important thing is for them to learn from the mistakes.
They point out that some of the management skills that can sustain the business and even outlive the business owner can be acquired through training while others can be learnt as the business progresses.
Experts have highlighted some strategies to manage start-ups and growing them into a more profitable venture with larger market share.
Hire the right people
It is a common mantra that people are important in every organization.
As such, a human resources consultant, Mr. Akin Akinlade, says that when recruiters miss the opportunity of recruiting the right people with appropriate skills to fill a particular role in an organization, there is bound to be problem.
He says, “if a business owner happens to have skills in information and communications technology but not proficient in sales and marketing, he or she needs to hire an expert with proven track record of success in that field.”
Plan your strategies
Every decision made in business, has to be thoroughly thought-out.
That is why having a business plan is inevitable for every business owner, experts note.
According to them, a business plan is an indispensable tool for locating potential investors, making improvement in the existing business and applying for loans.
A business consultant, Mr. Caleb Makinde, says a business plan can be used to measure the progress of the business and determine the next line of action to take.
He says, “As years go by, the business plan can be updated every time in order for it to be in line with conventional business management techniques. If your business grows as planned, you can be sure that the content of the plan will achieve your overall goals. But if things are not developing as planned, you can make appropriate corrections.”
Get access to finance
Experts note that most business owners mismanage funds after getting financial support from investors.
The Managing Director, Royal Services, Mrs. Deborah Adegbola, says apart from having a brilliant business idea, one of the basic preparations entrepreneurs should make is getting funds through personal efforts.
According to her, this may be in form of savings that have accrued over the years or the sale of unused properties, landed properties, vehicle or rent.
She says, “When personal savings and liquidated assets form the initial funds used in starting a business, it shows a form of commitment and dedication to the venture. The first place to start looking for start-up funds is from your personal savings and asset base. To further augment what you already have, you can approach banks and other financial institutions for loans.”
Fix reasonable prices
Most business managers find it difficult to fix prices for services rendered or for their products.
Experts observe that the confusion arises when the competitors sell the same goods of equal quality at lower prices.
In order to fix prices that will be attractive enough to draw the attention of clients, Adegbola advises that ensuring that the costs are minimal as much as possible is the first step.
According to her, an easy approach is researching the prices of services or goods of competitors in the industry and using the information to fix comparable price for similar services and goods.
She says,”Reducing cost will ensure that the business will not run at a loss.”
She adds that an alternative way of fixing a price is to calculate all costs incurred in rendering the service of producing specific goods, then adding expected profit for efforts put in.
Because some consumers view cheap services and goods as having low quality, Adegbola advises against using low prices to attract clients, adding that promotional discounts or other sales incentives can be introduced to encourage increased patronage.
Build a strong business structure
Inability to meet customer demands in terms of quality and quantity and at the right time can be detrimental to the success of businesses.
Therefore, experts suggest building a strong business structure that takes care of unexpected challenges.
Such system, according to Adegbola should cater for getting new customers and retaining them and creating awareness for the business using different marketing techniques.
He says organizational culture that every employee should respect and adhere to should be established. Refine them and put them down on paper for every employee to use. Establish a system for addressing customer complaints in a timely manner, he says.
He adds, “Develop a system for answering the phone, responding to email, and handling customer service. Have an operations manual that gives answers to all the questions people ask over the phone.
“Your business should be built in such a way that when you are not there, the employees will do things the right way and nothing will go wrong. A sense of ownership and commitment should be built in the employees. Ensure that every transaction is done with evidence and the records kept.”
Source: The PunchNG