As per the annual S&P report (2017), the average lifespan of a country is fifteen years which is down from 67 percent in the 1920s.
No matter how small or big, every business strives to survive and grow year on year. As per the annual S&P report (2017), the average lifespan of a country is fifteen years which is down from 67 percent in the 1920s. Amidst a very competitive business arena in the GCC, many businesses fail to survive and grow. According to Incarbia, a business management firm, 2 out of 10 startups in Dubai fail only within the first year and 6 more fail within the second year in.
As the adage says, “A day without a plan is just a wish”. Some people or entrepreneurs decide to open a business because they are passionate about a certain product or service. Starting a business without having a clear strategy or a sturdy business plan is like walking over slippery tiles. A plan does not necessarily have to be a 50-page folder of missions but it needs to encompass all the aspects of the market, the company and the competition. Your plan should include your goals and a realistic timeline. Failure to plan means failure of your business.
Failure can be rooted in bad management. From putting in processes to delegating tasks, managers are the backbone of any business. Hiring the right team to do the job and asking for feedback does not make you a weak manager or leader but rather a knowledgeable one. Considering the bottom players of your business will open up your eyes to crucial matters that might affect your overall business performance. Also, working without a system and micromanaging might cause you to drive your business off the cliff.
Scaling is all about acquiring the growth of your business into increasing the size of the organisation, the number of employees and spending more on marketing. Some businesses become over-confident once they start witnessing some success. Premature scaling is when a business decides to expand a certain aspect of the business without being in sync with the overall operations of the organisation. Premature scaling is like over-speeding your car as it might accelerate your movement but it will increase your chances of crashing. The best way to avoid this is to focus on growing the unscalable aspects of your business.
While cash flow dictates how functional your business is, investing in customers is what will define how profitable your business is. The easiest way to doom your business to failure is to ignore what your customers need. While all organisations will say that the customer is #1, only a few will really act this way. Whether your business is old or new, mistakes will happen and the only way you can rectify those mistakes is by apologising and change the way your business operates while considering your customer a priority. Listen to the trending market trends and customer behaviour to be in sync with their needs.
To have a successful business, you must be knowledgeable about your market and understand what the customers of today want and need. There is a fierce tide of potential for business failure. Besides strategic planning, strong management, smart scaling and the needs of your customer, you must ensure having the right mindset and positive attitude when handling your business.
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